Netcapital Funding Portal Revenues Increase by More Than 150%
Netcapital Inc. (Nasdaq: NCPL, NCPLW) reported a 15% increase in total revenues for the second quarter of fiscal year 2024, reaching $2.0 million. The funding portal business experienced a significant revenue growth of 151%, driven by a surge in investment dollars closed on the Netcapital funding portal platform. The diluted earnings per share remained flat at $0.04. The CEO, Martin Kay, attributed the strong quarter to the success of several large issuers, including Avadain and EarthGrid PBC.
Positive
15% increase in total revenues
151% growth in funding portal revenues
Success of large issuers contributing to revenue growth
Negative
Flat diluted earnings per share
12/14/2023 - 04:10 PM
Total Revenues Increase by 15%
Management to Host Earnings Call on December 15, 2023, at 10:00 a.m. ET
BOSTON --(BUSINESS WIRE)--
Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced select financial results for the second quarter of fiscal year 2024 ended October 31, 2023.
“It was a strong quarter for our funding portal business, which experienced revenue growth of 151% ," said Martin Kay, CEO of Netcapital Inc. "This was driven by a significant increase in investment dollars closed on the Netcapital funding portal platform during the quarter, helped by the success of several large issuers, including Avadain, a graphene technology company, and EarthGrid PBC, a plasma boring technology company.”
Second Quarter Fiscal 2024 Financial Highlights
Revenues grew by approximately 15% year-over year to $2.0 million $1.8 million
Funding portal revenues increased approximately 151% year-over-year to $462,706 $184,095
Diluted earnings per share of $0.04 $0.04
For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the period ended October 31, 2023, which has been filed with the Securities and Exchange Commission.
Conference Call Information
The Company will host an investor conference call on Friday, December 15, 2023 at 10:00 a.m. ET.
Participant access:
844-985-2012 or 973-528-0138
Conference entry code:
473254
For those unable to participate in the live call, a replay will be made available in the Investors section of the Company’s website.
About Netcapital Inc.
Netcapital Inc. is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company's consulting group, Netcapital Advisors , provides marketing and strategic advice and takes equity positions in select companies. The Company’s funding portal, Netcapital Funding Portal Inc . is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association.
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Netcapital Inc.
Income Statements
(Unaudited)
Three Months Ended
Three Months Ended
Six Months Ended
Six Months Ended
October 31, 2023
October 31, 2022
October 31, 2023
October 31, 2022
Revenues
$
2,041,658
$
1,778,973
$
3,561,467
$
3,119,546
Costs of services
20,134
36,235
38,187
57,298
Gross profit
2,021,524
1,742,738
3,523,280
3,062,248
Costs and expenses:
Consulting expense
204,734
199,781
368,676
325,392
Marketing
46,731
32,882
288,619
40,662
Rent
18,379
17,187
37,989
34,399
Payroll and payroll related expenses
1,050,835
876,908
2,087,877
1,646,848
General and administrative costs
648,625
280,815
1,436,919
673,112
Total costs and expenses
1,969,304
1,407,573
4,220,080
2,720,413
Operating income (loss)
52,220
335,165
(696,800
)
341,835
Other income (expense):
Interest expense
(10,562
)
(22,978
)
(23,866
)
(59,290
)
Gain on debt conversion
-
-
-
224,260
Amortization of intangible assets
(28,331
)
(21,081
)
(56,662
)
(42,162
)
Unrealized loss on equity securities
-
(8,968
)
-
(8,968
)
Realized loss on sale of investment
-
-
-
(406,060
)
Total other income (expense)
(38,893
)
(53,027
)
(80,528
)
(292,220
)
Net income before taxes
13,327
282,138
(777,328
)
49,615
Income tax expense (benefit)
(326,289
)
99,000
(625,289
)
(198,000
)
Net income (loss)
$
339,616
$
183,138
$
(152,039
)
$
247,615
Basic earnings per share
$
0.04
$
0.04
$
(0.02
)
$
0.07
Diluted earnings per share
$
0.04
$
0.04
$
(0.02
)
$
0.07
Weighted average number of common shares outstanding:
Basic
9,435,491
4,289,802
8,453,349
3,729,174
Diluted
9,435,741
4,290,052
8,453,349
3,729,424
Netcapital Inc.
Balance Sheets
October 31, 2023
April 30, 2023
Assets:
(Unaudited)
(Audited)
Cash and cash equivalents
$
528,827
$
569,441
Accounts receivable net
2,899,667
1,388,500
Other receivables
158,873
-
Note receivable
20,000
-
Prepaid expenses
313,058
583,030
Total current assets
3,920,425
2,540,971
Deposits
6,300
6,300
Notes receivable - related parties
202,000
202,000
Purchased technology, net
15,818,635
15,875,297
Investment in affiliate
240,080
240,080
Equity securities at fair value
24,491,821
22,955,445
Total assets
$
44,679,261
$
41,820,093
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Trade
$
812,908
$
578,331
Related party
75,204
75,204
Accrued expenses
415,603
285,065
Stock subscription payable
10,000
10,000
Deferred revenue
508
661
Interest payable
88,353
98,256
Current taxes payable
-
174,000
Deferred tax liability, net
1,714,000
1,657,000
Related party debt
15,000
15,000
Secured note payable
-
350,000
Current portion of SBA loans
1,885,800
1,885,800
Loan payable - bank
34,324
34,324
Total current liabilities
5,051,700
5,163,641
Long-term liabilities:
Long-term SBA loans, less current portion
500,000
500,000
Total Liabilities
5,551,700
5,663,641
Commitments and contingencies
-
-
Stockholders' equity:
Common stock, $.001 par value; 900,000,000 shares
authorized, 9,459,132 and 6,440,527 shares issued and outstanding
9,459
6,441
Shares to be issued
122,124
183,187
Capital in excess of par value
33,682,137
30,500,944
Retained earnings
5,313,841
5,465,880
Total stockholders' equity
39,127,561
36,156,452
Total liabilities and stockholders' equity
$
44,679,261
$
41,820,093
View source version on businesswire.com: https://www.businesswire.com/news/home/20231214529235/en/
Investor Contact
800-460-0815
ir@netcapital.com
Source: Netcapital Inc.
Netcapital Inc. reported a 15% increase in total revenues to $2.0 million. The funding portal business experienced a significant revenue growth of 151%, reaching $462,706. The diluted earnings per share remained flat at $0.04.
The CEO of Netcapital Inc. is Martin Kay.
The earnings call is scheduled for December 15, 2023, at 10:00 a.m. ET.
Investors can access the conference call at 844-985-2012 or 973-528-0138 using the entry code 473254.
