Investor conference call to be held tomorrow, July 27, 2023, at 10:00 a.m. ET
BOSTON–(BUSINESS WIRE)–$NCPL #Earnings—Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced financial results for its fourth quarter and fiscal year 2023 ended April 30, 2023.
“Fiscal 2023 marked a year of strong performance, highlighted by revenue growth of 55% and operating income of more than $2 million,” said Martin Kay, CEO of Netcapital Inc. “The value proposition of our business is becoming more evident as we continue to build scale and deliver a superior experience at a lower cost for issuers. We expect to offer secondary trading in private equities later in this year, a liquidity model that we believe will support expansion of both our investor and issuer communities, and generate a potential new revenue stream for Netcapital. As a back-to-back winner of the Fintech Breakthrough Award in 2022 and 2023, our brand is well-recognized for innovation and excellence, and well-positioned for value creation.”
Fiscal Year 2023 Highlights
Revenue growth of 55% year-over-year to $8.5 million as compared to $5.5 million in fiscal 2022
Operating income of $2.3 million compared to an operating loss of $1.0 million in fiscal year 2022
Paid down $1 million in debt, closed two underwritten public offering for aggregate gross proceeds of $6.7 million, and uplisted to Nasdaq in July 2022
For additional disclosure regarding operating results, please refer to the Annual Report on Form 10-K for the period ended April 30, 2023, which has been filed with the U.S. Securities and Exchange Commission.
Conference Call Information
The Company will host an investor conference call at 10:00 a.m. ET tomorrow, July 27, 2023.
Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 398497
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 with disruptive technologies. The Netcapital funding portal 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.
NETCAPITAL INC.
CONSOLIDATED BALANCE SHEETS
Assets:
April 30, 2023
April 30, 2022
Cash and cash equivalents
$
569,441
$
473,925
Accounts receivable net
1,388,500
2,433,900
Related party receivable
–
668
Prepaid expenses
583,030
5,694
Total current assets
2,540,971
2,914,187
Deposits
6,300
6,300
Notes receivable – related parties
202,000
202,000
Purchased technology, net
15,875,297
15,536,704
Investment in affiliate
240,080
240,080
Equity securities at fair value
22,955,445
12,861,253
Total assets
$
41,820,093
$
31,760,524
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
Trade
$
578,331
$
536,508
Related party
75,204
378,077
Accrued expenses
285,065
229,867
Stock subscription payable
10,000
33,400
Deferred revenue
661
2,532
Interest payable
98,256
222,295
Current taxes payable
174,000
–
Deferred tax liability, net
1,657,000
977,000
Related party debt
15,000
22,860
Convertible notes payable
–
300,000
Secured note payable
350,000
1,400,000
Current portion of SBA loans
1,885,800
1,890,727
Loan payable – bank
34,324
34,324
Total current liabilities
5,163,641
6,027,590
Long-term liabilities:
Long-term SBA loans, less current portion
500,000
495,073
Total Liabilities
5,663,641
6,522,663
Commitments and contingencies
–
–
Stockholders’ equity:
Common stock, $.001 par value; 900,000,000 shares
authorized, 6,440,777 and 2,934,344 shares issued and outstanding
6,441
2,934
Shares to be issued
183,187
244,250
Capital in excess of par value
30,500,944
22,479,769
Retained earnings
5,465,880
2,510,908
Total stockholders’ equity
36,156,452
25,237,861
Total liabilities and stockholders’ equity
$
41,820,093
$
31,760,524
NETCAPITAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended
Year Ended
April 30, 2023
April 30, 2022
Revenues
$
8,493,985
$
5,480,835
Costs of services
85,038
110,115
Gross profit
8,408,947
5,370,720
Costs and expenses:
Consulting expense
589,349
892,567
Marketing
85,482
95,753
Rent
75,052
47,670
Payroll and payroll related expenses
3,646,490
3,763,845
General and administrative costs
1,740,698
1,602,031
Total costs and expenses
6,137,071
6,401,866
Operating income (loss)
2,271,876
(1,031,146
)
Other income (expense):
Interest expense
(93,842
)
(126,372
)
Gain on debt conversion
224,260
–
Debt forgiveness
–
1,904,296
Amortization of intangible assets
(96,407
)
–
Other income
51,645
25,007
Realized loss on sale of investment
(406,060
)
–
Unrealized gain on equity securities
1,857,500
3,275,745
Total other income (expense)
1,537,096
5,078,676
Net income before taxes
3,808,972
4,047,530
Income tax expense
854,000
544,000
Net income
$
2,954,972
$
3,503,530
Basic earnings per share
$
0.63
$
1.31
Diluted earnings per share
$
0.63
$
1.27
Weighted average number of common shares outstanding:
Basic
4,677,214
2,666,173
Diluted
4,677,464
2,748,480
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.
Contacts
Investor
800-460-0815
ir@netcapital.com