Conference call to be held tomorrow, September 13, 2022, at 10:00 a.m. ET
BOSTON, September 12, 2022--(BUSINESS WIRE)--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.
CONDENSED CONSOLIDATED BALANCE SHEETS
July 31, 2022
April 30, 2022
Cash and cash equivalents
Accounts receivable net
Related party receivable
Total current assets
Notes receivable - related parties
Purchased technology, net
Investment in affiliate
Equity securities at fair value
Liabilities and Stockholders' Equity
Stock subscription payable
Deferred tax liability, net
Related party debt
Convertible notes payable
Secured note payable
Current portion of SBA loans
Loan payable - bank
Total current liabilities
Long-term SBA loans, less current portion
Commitments and contingencies
Common stock, $.001 par value; 900,000,000 shares authorized, 4,272,677 and 2,934,344 shares issued and outstanding
Shares to be issued
Capital in excess of par value
Total stockholders' equity
Total liabilities and stockholders' equity
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
July 31, 2022
July 31, 2021
Costs of services
Costs and expenses:
Payroll and payroll related expenses
General and administrative costs
Total costs and expenses
Operating income (loss)
Other income (expense):
Gain on debt conversion
Amortization of intangible assets
Realized loss on sale of investment
Unrealized gain on equity securities
Total other income (expense)
Net income before taxes
Income tax expense (benefit)
Basic earnings per share
Diluted earnings per share
Weighted average number of common shares outstanding:
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/