NEWS
Netcapital Funding Portal Revenues Increase by More Than 150%
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, compared to revenue of $1.8 million in the second quarter of fiscal year 2023.
Funding portal revenues increased approximately 151% year-over-year to $462,706, compared to $184,095 in the second quarter of fiscal 2023.
Diluted earnings per share of $0.04 in the three months ended October 31, 2023, were flat compared to diluted earnings per share of $0.04 for the same period in the prior year.
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
