Netcapital Inc. Announces Revenue Growth of 114% for First Quarter of Fiscal 2023
Conference call to be held tomorrow,
“Our uplisting to Nasdaq in July was a fantastic way to kick off our new fiscal year, and we welcome our new shareholders and appreciate the investor interest we are receiving,” said Dr.
First Quarter Fiscal 2023 Financial Highlights
-
Revenue growth of
114% year-over-year to$1.3 million -
Positive operating income compared to operating loss of
in the year-ago quarter$1.1 million -
Equity securities at fair value totaled
at$13.5 million July 31, 2022 , compared to one year ago, an increase of$9.6 million 41% -
Cash and cash equivalents of
at$2.6 million July 31, 2022 -
Paid down
in debt$1 million -
Closed a
underwritten public offering$5 million
Conference Call Information
The Company will host an investor conference call tomorrow,
Participant access: 844-985-2012 or 973-528-0138
Entry code: 747753
For those unable to participate in the live call, a replay will be available in the Investor Relations section of the Company’s website.
For additional disclosure regarding operating results, please refer to the Quarterly Report on Form 10-Q for the period ended
About
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
|
|
||||
Assets: | (Unaudited) |
|
(Audited) |
|||
Cash and cash equivalents | $ |
2,556,170 |
$ |
473,925 |
||
Accounts receivable net |
|
2,154,700 |
|
2,433,900 |
||
Related party receivable |
|
668 |
|
668 |
||
Prepaid expenses |
|
41,536 |
|
5,694 |
||
Total current assets |
|
4,753,074 |
|
2,914,187 |
||
Deposits |
|
6,300 |
|
6,300 |
||
Notes receivable - related parties |
|
202,000 |
|
202,000 |
||
Purchased technology, net |
|
15,515,623 |
|
15,536,704 |
||
Investment in affiliate |
|
240,080 |
|
240,080 |
||
Equity securities at fair value |
|
13,455,193 |
|
12,861,253 |
||
Total assets | $ |
34,172,270 |
$ |
31,760,524 |
||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | ||||||
Trade | $ |
457,826 |
$ |
536,508 |
||
Related party |
|
75,204 |
|
378,077 |
||
Accrued expenses |
|
173,161 |
|
229,867 |
||
Stock subscription payable |
|
33,400 |
|
33,400 |
||
Deferred revenue |
|
602 |
|
2,532 |
||
Interest payable |
|
247,899 |
|
222,295 |
||
Deferred tax liability, net |
|
680,000 |
|
977,000 |
||
Related party debt |
|
19,660 |
|
22,860 |
||
Convertible notes payable |
|
- |
|
300,000 |
||
Secured note payable |
|
400,000 |
|
1,400,000 |
||
Current portion of SBA loans |
|
1,893,719 |
|
1,890,727 |
||
Loan payable - bank |
|
34,324 |
|
34,324 |
||
Total current liabilities |
|
4,015,795 |
|
6,027,590 |
||
Long-term liabilities: | ||||||
Long-term SBA loans, less current portion |
|
492,081 |
|
495,073 |
||
Total Liabilities |
|
4,507,876 |
|
6,522,663 |
||
Commitments and contingencies |
|
- |
|
- |
||
Stockholders' equity: | ||||||
Common stock, |
|
4,273 |
|
2,934 |
||
Shares to be issued |
|
244,250 |
|
244,250 |
||
Capital in excess of par value |
|
26,840,486 |
|
22,479,769 |
||
Retained earnings |
|
2,575,385 |
|
2,510,908 |
||
Total stockholders' equity |
|
29,664,394 |
|
25,237,861 |
||
Total liabilities and stockholders' equity | $ |
34,172,270 |
$ |
31,760,524 |
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(UNAUDITED) |
||||||||
Three
|
|
Three
|
||||||
|
|
|
||||||
Revenues | $ |
1,340,573 |
|
$ |
625,187 |
|
||
Costs of services |
|
21,063 |
|
|
28,305 |
|
||
Gross profit |
|
1,319,510 |
|
|
596,882 |
|
||
Costs and expenses: | ||||||||
Consulting expense |
|
125,611 |
|
|
316,631 |
|
||
Marketing |
|
7,780 |
|
|
21,826 |
|
||
Rent |
|
17,212 |
|
|
12,130 |
|
||
Payroll and payroll related expenses |
|
769,940 |
|
|
927,333 |
|
||
General and administrative costs |
|
392,297 |
|
|
395,052 |
|
||
Total costs and expenses |
|
1,312,840 |
|
|
1,672,972 |
|
||
Operating income (loss) |
|
6,670 |
|
|
(1,076,090 |
) |
||
Other income (expense): | ||||||||
Interest expense |
|
(36,312 |
) |
|
(35,245 |
) |
||
Gain on debt conversion |
|
224,260 |
|
|
- |
|
||
Amortization of intangible assets |
|
(21,081 |
) |
|
- |
|
||
Realized loss on sale of investment |
|
(406,060 |
) |
|
- |
|
||
Unrealized gain on equity securities |
|
- |
|
|
3,275,745 |
|
||
Total other income (expense) |
|
(239,193 |
) |
|
3,240,500 |
|
||
Net income before taxes |
|
(232,523 |
) |
|
2,164,410 |
|
||
Income tax expense (benefit) |
|
(297,000 |
) |
|
707,000 |
|
||
Net income | $ |
64,477 |
|
$ |
1,457,410 |
|
||
Basic earnings per share | $ |
0.02 |
|
$ |
0.66 |
|
||
Diluted earnings per share | $ |
0.02 |
|
$ |
0.65 |
|
||
Weighted average number of common shares outstanding: | ||||||||
Basic |
|
3,168,547 |
|
|
2,206,118 |
|
||
Diluted |
|
3,171,397 |
|
|
2,241,675 |
|
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220912005954/en/
Investor Contact
800-460-0815
ir@netcapital.com
Source: