Conference call to be held tomorrow, September 13, 2022, 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 the first quarter of fiscal year 2023 ended July 31, 2022.
“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. Cecilia Lenk, CEO of Netcapital Inc. “We are pleased to deliver strong first quarter results and look forward to a productive year ahead.”
Jason Frishman, CEO of Netcapital Funding Portal Inc., commented, “We kicked off our fiscal year 2023 with strong momentum on our platform, surpassing 100,000 users. We believe the activity on our portal illustrates the key competitive advantages we offer over other online capital raising platforms – a comprehensive suite of services, scalable technology platform, and high-value consulting for issuers, plus the ability of investors to invest from virtually anywhere in the world, at almost any time, with just a few clicks.”
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 $1.1 million in the year-ago quarter
Equity securities at fair value totaled $13.5 million at July 31, 2022, compared to $9.6 million one year ago, an increase of 41%
Cash and cash equivalents of $2.6 million at July 31, 2022
Paid down $1 million in debt
Closed a $5 million underwritten public offering
Conference Call Information
The Company will host an investor conference call tomorrow, September 13, 2022, at 10:00 a.m. ET.
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 July 31,2022, which has been filed with the Securities and Exchange Commission.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
July 31, 2022
April 30, 2022
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, $.001 par value; 900,000,000 shares authorized, 4,272,677 and 2,934,344 shares issued and outstanding
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
NETCAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three
Months
Ended
Three
Months
Ended
July 31, 2022
July 31, 2021
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.
Contacts
Investor Contact
800-460-0815
ir@netcapital.com