NCPL

This article first appeared on GuruFocus. Release Date: March 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Netcapital Inc (NASDAQ:NCPL) is focusing on strengthening its technology foundation and improving operational efficiency, which is expected to position the platform for future growth. The company has signed four new broker dealer clients during the third quarter of fiscal 2026, indicating expansion in its client base. Netcapital Inc (NASDAQ:NCPL) is expanding into blockchain-enabled solutions, which could enhance its platform capabilities and offer new opportunities in digital securities. The acquisition of Iverson Design's assets has enhanced Netcapital Inc (NASDAQ:NCPL)'s in-house creative and product capabilities, which are strategically important for tokenization adoption. The company has made substantial progress in aligning development priorities across key areas such as wallet infrastructure and tokenization capabilities, supporting its long-term growth strategy. Netcapital Inc (NASDAQ:NCPL) reported a decrease in revenues to approximately $94,000 for the three months ended January 31, 2026, compared to $153,000 in the same period the previous year. The company experienced an operating loss of approximately $2.2 million, which is an increase from the $1.7 million loss reported in the third quarter of fiscal 2025. Netcapital Inc (NASDAQ:NCPL) is still in a transition period, and the underlying economics of its model will only be realized when operating at sufficient scale. The company's revenues can be lumpy quarter over quarter, as the timing of large client funding events can have an outsized impact on results. Despite strategic investments, the company is still in the early stages of its evolution, and the full benefits of its initiatives have yet to be realized. Warning! GuruFocus has detected 4 Warning Signs with NCPL. Is NCPL fairly valued? Test your thesis with our free DCF calculator. Q: Can you explain the reasons behind the decrease in revenue for the third quarter of fiscal 2026 compared to the same period last year? A: Corin Chrysler, CFO: The decrease in revenues was primarily due to a reduction in funding portal fees during the quarter. Our revenues can be lumpy quarter over quarter, as the timing of large client funding events can significantly impact results. Q: What strategic initiatives have been undertaken to enhance Netcapital's platform capabilities? A: Rich Wheelis, CEO: We have focused on strengthening our technology foundation, improving operational efficiency, and supporting initiatives for future growth. This includes platform architecture planning, regulatory tooling, workflow automation, and marketing enablement. We are also expanding into blockchain-enabled solutions and tokenization. Q: How is Netcapital planning to leverage blockchain technology in its operations? A: Rich Wheelis, CEO: We are integrating primary issuance capabilities with blockchain-based technology and compliant secondary trading infrastructure. This expanded platform architecture positions us to support a broader range of digital securities, tokenize reward assets, and enhance liquidity solutions over time. Q: Can you provide details on the first tokenized asset issuer engagement? A: Rich Wheelis, CEO: We announced our first tokenized asset issuer engagement with Purewave Hydrogen, focusing on structuring a securities-based tokenization of hydrogen drilling assets in Kansas. This project has the potential to become our first revenue-generating real-world asset tokenization project. Q: What are the expected benefits of the acquisition of Iverson Design's assets? A: Rich Wheelis, CEO: The acquisition enhances our in-house creative and product capabilities, bringing Michael Iverson as Chief Design Director and Head of AI Experience. These capabilities are strategically important as tokenization moves from concept to adoption, allowing us to accelerate development cycles and improve user experience. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Key milestones include acquisition of Iverson Design and signing PureWave Hydrogen as first tokenization client Management to host business update conference call tomorrow at 10:00 am ET BOSTON, MA, March 19, 2026 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW, Netcapital) (the “Company”), a digital private capital markets ecosystem, today announced financial results and provided corporate highlights for the third quarter of fiscal 2026 ended January 31, 2026. In addition, management plans to host a business update conference call tomorrow, March 20, 2026, at 10:00 a.m. ET. “We completed several key transactions in fiscal Q3 2026,” said Rich Wheeless, Netcapital’s Chief Executive Officer. “We partnered with Silicon Prairie Holdings Inc., which provides critical regulatory infrastructure in support of secondary trading of securities previously sold under various exemptions. We acquired Iverson Design, contributing proprietary AI-powered design and visualization technologies and marking an important step in our transformation into a tokenization and digital asset platform. In conjunction with this transaction, Michael Iverson came on board as Chief Design Director and Head of AI Experience, adding in-house capabilities spanning motion graphics, 3D visualization, real-time rendering, and investor presentation design. In addition, PureWave Hydrogen became our first tokenization client, expanding our potential revenue streams into real-world asset tokenization.” “We believe the strength of our platform and these and other investments position us for renewed growth, and to that end, I’m pleased to report fiscal Q3 2026 revenues increased from fiscal Q2 2026. We also gained traction at our broker-dealer, which signed four new clients during the quarter. With the business carrying gross margins consistently above 90% and highly scalable infrastructure in place, I’m laser-focused on driving increasing and new revenue streams with the goal of improving our bottom-line results in the coming quarters,” added Wheeless. Third Quarter Fiscal 2026 Financial Highlights: Total revenues were $94,347 compared to $152,682 in the prior-year quarter, primarily reflecting lower funding portal activity. Operating loss was $2,174,335, compared to an operating loss of $1,687,692 in the year ago period. Net loss was ($0.32) per basic and diluted share, compared to a net loss of ($1.57) per basic and diluted share in the year ago period. Cash and cash equivalents at January 31, 2026 of $715,443, up from $289,428 at April 30, 2025. Conference Call Information The Company will host an investor conference call on March 20, 2026, at 10:00 a.m. ET. Participant access: 844-985-2012 or 973-528-0138 Conference entry code: 430260 For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the three-month period ended January 31, 2026, 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 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 Company’s broker-dealer, Netcapital Securities Inc., is also registered with the SEC and is a member of FINRA. Forward Looking Statements 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. Investor Contact 800-460-0815 [email protected] NETCAPITAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS NETCAPITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Image source: The Motley Fool. Monday, July 29, 2024 at 10:00 a.m. ET Chief Executive Officer — Martin Kay Chief Financial Officer — Coreen Kraysler With that said, I’d like to now turn to our financial results for the full-year fiscal 2024. Revenues for fiscal 2024 decreased by $3,542,550 or 42% to $4,951,435, compared to $8,493,985 in fiscal 2023. This decline in revenues was mainly due to a decrease in consulting services for equity securities which dropped by $3,665,000 or 52% to $3.44 million in fiscal 2024, as compared to $7.1 million in the previous year. The aggregate decrease of approximately $3.7 million in consulting services for equity securities in fiscal 2024 occurred because we provided consulting services to only three companies in fiscal 2024, as compared to six companies in fiscal 2023. We strive to provide more than $1 million worth of consulting services to this type of client. And the average fee that we earned per client in fiscal 2024 and 2023 amounted to $1,146,667 and $1,184,167 respectively. These services are provided by our consulting subsidiary, Netcapital Advisors, and Advisors did not [discern] (ph) any equity securities from consulting work in the fourth quarter of fiscal 2024. Our subsidiary, Netcapital Funding Portal Inc. introduced a 1% fee on the equity raised by issuers using the funding portal. In fiscal 2024, the funding portal earned equity securities from 30 clients with a total value of $97,700, as compared to $0.00 in the previous fiscal year. Our cost of revenues increased by $23,000 or 27% to approximately $108,000 in fiscal 2024, from approximately $85,000 in fiscal 2023. The increase is attributable to the funding portal which saw a rise in revenue from portal fees to $874,368 in fiscal 2024. We recognized an unrealized loss in the value of our equity securities of approximately $2.7 million in fiscal 2024, as compared to unrealized gains of approximately $1.9 million in the value of our equity securities in fiscal 2023. The loss in fiscal 2024 was attributable to a decrease in value of our 3.2 million shares of KingsCrowd common stock from $1.00 per share to $0.16 per share. We recorded an impairment loss of $1,048,430 in fiscal 2024. The loss in fiscal 2024 consists of a reduction in value from $647,264 to $0 for the intangible assets we acquired in the purchase of MSG and a reduction in value from $401,167 to $0 for the intangible assets we own that are associated with the website one-on-one stands. The person who operated MSG retired due to health reasons during fiscal 2024, and we were unsuccessful in transitioning the valuation consulting work performed by MSG to another person. We may continue providing business valuation services in the future, but at this point in time, we cannot attribute any value to the assets we purchased. Similarly, the person who was designated to operate our one-on-one fans website left the company in May 2024, and without his expertise and connections with professional hockey players, we determined the value to be $0. Revenues from portal fees increased by $455,855 or 109% year-over-year, to $874,368 from $418,513 in fiscal 2023. The increase in portal fees is attributable to the increase in the amount of capital raised on the Netcapital Funding Portal and the increase in the number of issuers that completed an offering in fiscal 2024 and 2023. The average amount raised in an offering on the Netcapital Funding Portal was $280,978 and $128,170 respectively. We had an operating loss of $3,442,388 for the full fiscal 2024 as compared to operating income of $2,271,876 for fiscal 2023 and the net loss for fiscal 2024 of $4,986,317 as compared to $2,954,972 for fiscal 2023. We reported a loss per share of $0.41 in the full-year ended April 30, 2024, which was down compared to earnings per share of $0.63 for the same period in the prior year. As of April 30, 2024, the company had cash and cash equivalents of $863,182. I'll now turn the call over to our CEO, Martin Kay. Martin Kay: Thank you, Coreen. And thank you to all shareholders who are taking the time to be on this call today. We saw a challenging economic environment over the year as reflected in the press release filing and the numbers that Coreen recapped, showing decreases in both our top and bottom line. However, there are several important metrics, positive metrics to highlight. Coreen mentioned these, but just to emphasize, the average amount raised in an offering on our platform went up from $128,000 to $280,000 year-over-year. The total number of successful offerings increased from 50 to 53. And in addition, we saw total revenue for portal fees increase by 109%, so more than double. And so, these numbers tell the story that despite the tough environment, we completed more deals on our platform. Our issuers on average raised more capital. And as a result, we saw strong growth in our portal fee revenue compared to 2023. Along those lines, I'd like to highlight two significant deals that were closed by issuers during the year. Avadain, a graphene technology company, successfully sold out their $4.5 million offering after upsizing the offering several times due to strong demand. And the second deal, EarthGrid PBC, a plasma boring technology company, closed a $3.3 million offering. These two deals alone totaled almost $8 million, demonstrating the opportunity for both companies and investors that use our funding portal. As of today, we own minority positions in 22 portfolio companies that have utilized the funding portal to facilitate their offerings for which equity was received as a payment for services. And as Coreen mentioned, we added a 1% fee on equity raised by issuers this year and the funding portal earned securities from 30 clients as a result of that move. Looking forward and highlighting some of the strategic priorities for us as a company, we recently announced the launch of the beta version for a secondary trading platform to a closed group of users in collaboration with Templum Markets. In September, we began internal testing of this secondary trading platform, which provides access to a registered Alternative Trading System, or an ATS. The Templum ATS is approved in 53 U.S. states and territories and will have the ability to facilitate the trading of unregistered or private equity securities. So, this partnership will provide investors who purchase stock through the Netcapital Funding Portal with the potential for secondary trading and allow for improved liquidity. It will provide issuers with a potential path to a broader pool of retail investors, a way to engage their communities and share in the value they're creating, and also a potential stepping stone on journey to a more traditional public market. Second, we also announced that Netcapital has applied for a broker-dealer license for its wholly owned subsidiary, Netcapital Securities. We believe that by having a registered broker-dealer, we may create opportunities to expand our revenue base by hosting and generating additional fees from what are called Reg A+ and Reg D offerings on the Netcapital platform. Under Reg A+ plus, companies can raise up to $75 million from accredited and non-accredited investors every 12 months versus 5 million that permitted under our current Reg CF environment. Additionally, under Reg D 506(c), companies can raise unlimited amounts of capital from accredited investors using general solicitation. So, Netcapital remains a competitive scalable platform offering a cost-effective online capital raising solution for a growing network of companies and investors. We continue to strive as innovative leaders in producing what we believe and our customers frequently tell us is the best platform. More than a hundred thousand users and growing, over 50 companies currently in the fundraising process, a healthy but very competitive 4.9% portal fee for capital raised at closing and higher outcomes in money raised per offering all speak to the value we provide in the marketplace. Finally, I'd say that, we are focused on the long-term and not optimizing for short-term results. Our success depends on our client's success and that usually takes time and patience. As always, thank you for your interest and support of Netcapital. Operator, we are ready for questions. Operator: Thank you very much. We are now opening the floor for questions. [Operator Instructions] Your first question is coming from Chris Sakai of Singular Research. Chris, your line is live. Chris Sakai: Hi, good morning. Just a question on portal fees and the growth there, what sort of initiatives are you doing to maintain and/or increase that growth? Martin Kay: Well, as we mentioned, it’s a function of the number of issuers on the platform and the success of those issuers. So, we’re continuing to do the things we always do, which is innovate in the ways in which we connect with new companies that would be a good fit for our platform. And in terms of individual raises, we’re learning from history at this point as to what it takes to be successful on our platforms, and ways in which you can engage in digital marketing activities and engage your community to become investors and owners and ambassadors for those companies. So, we expect to continue focusing on those efforts, so targeting newer and potentially bigger issuers, particularly as we move into the Reg A+ business and leveraging the learnings to date as to how to make any given issuer as successful as possible on the platform. Chris Sakai: Okay, thanks. And then you mentioned the ATS platform. Do you have any sort of timeline as far as the progression there? Martin Kay: Yes, well, as I mentioned we announced the launch of the production -- in a production environment to a closed group of users. We expect to, as I think we said in that press release, to open that up to a broader group of users before the end of this year. But we obviously -- we’re doing something that no one else has done. We’re doing it in partnership with a great company, and that we just want to be careful and make sure that when we do open to everyone, that we provide the experience that folks will expect. Chris Sakai: Okay, great. Thanks for the answers. Operator: Thank you very much. [Operator Instructions] I am not seeing anyone else coming into queue. No, we don’t have anyone else in the queue at the moment. I will now hand back over to Coreen. Coreen Kraysler: All right, thank you everyone for joining our call. We really appreciate your support. And we look forward to speaking with you all soon. Thank you. Martin Kay: Thank you all. Operator: Thank you very much. This does conclude today’s conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Netcapital (NCPL) Q4 2024 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Monday, September 16, 2024 at 10 a.m. ET Chief Executive Officer — Martin Kay Chief Financial Officer — Coreen Kraysler Operator With that said, I'd like to now turn to our financial results for the first quarter of fiscal 2025. Revenues for the first quarter of fiscal 2025 for the period ending July 31, 2024, decreased by almost $1.4 million or approximately 91% to $142,227 compared to approximately $1.5 million in the first quarter of 2024. The decline in revenue was primarily attributed to a decrease in revenues for the services that we provide in exchange for equity securities during the quarter. We had no revenues from equity-based contracts as compared to over $1.1 million in such revenues in the 3 months ended July 31, 2023. We are focusing on establishing a broker-dealer subsidiary so that the company may have additional sources of revenue, and we have not been pursuing equity-based revenue contracts. Total funding portal revenues declined by $233,800 or approximately 62% to $242,056 during the first quarter of fiscal 2025. Total funding portal revenue consists of portal fees, listing fees and a 1% equity fee. Revenue from portal fees decreased by $132,427 or approximately 60% in the 3 months ended July 31, 2024, to $89,429 from $221,856 in the 3 months ended July 31, 2023. Revenues from portal fees consist of a 4.9% fixed fee of the total capital raised by the issuer plus fixed miscellaneous charges for administrative fees, such as the rolling close or the filing of an amended offering statement. The decline in portal fees is a result of a decrease in the amount of capital that we raised on our funding portal during the period. Total funds raised in offerings decreased by almost $1.8 million or approximately 60% in the 3-month period ending July 31, 2024, to approximately $1.2 million as compared to approximately $2.96 million in the same period of 2023. Revenue from listing fees decreased by $111,500 or approximately 72% to $42,500 in the 3 months ended July 31, 2024, as compared to $154,000 in the 3 months ended July 31, 2023. Listing fees are typically $5,000 per issuer and they are the first form of revenue earned by our funding portal when an issuer signs a contract with us to sell securities on the portal. The drop in listing fees can be attributed to our loss of an experienced salesperson [Technical Difficulty]. Operator: Coreen, I do apologize. This is the operator. Your line is breaking up. I'm going to attempt to dial up to your line, so I can get a clear connection. Coreen Kraysler: Okay. Operator: Coreen, your line is live. Coreen Kraysler: Thank you. We had an operating loss of approximately $2.5 million for the first quarter of fiscal 2025 as compared to an operating loss of $749,020 for the first quarter of fiscal 2024. Our net loss for the first quarter of fiscal 2025 was $2,527,170 as compared to $491,665 for the same period prior. We reported a loss per share of $5.10 for the first quarter ended July 31, 2024, compared to a loss per share of $4.61 for the same period in the prior year. I'll now turn the call over to our CEO, Martin Kay. Martin Kay: Thank you, Coreen. I'd like to thank everyone for showing their interest and being on this call today. We did see some challenges during the quarter, especially in regard to our operational and financial metrics. The climate for fundraising does slow down during the summertime, and there is, of course, some cyclicality and some unpredictability in our business. With that said, we've taken some important steps this quarter. First, the beta version launch of our secondary trading platform through the Templum ATS, which may offer investors another way to trade through the Netcapital funding portal. Templum ATS is now approved in over 50 U.S. states and territories, and this partnership may provide our investors with better liquidity for secondary trading. The second thing is -- another key initiative is our application for broker-dealer registration with FINRA, which Coreen mentioned. We intend to use this to offer Reg A+ and Reg D deals and form broker-dealer partnerships. This may help grow our revenues through hosting and fees and enhance our distribution capabilities which may expand our current ecosystem and our addressable market. During the quarter, we also put in place an ATM agreement and regained compliance with NASDAQ's Listing Rule 5550(a)(2) known as the bid price rule, which will allow us to continue trading on NASDAQ. It's important for us to maintain our NASDAQ listing to further support shareholder value and confidence. So despite the challenges we face, we very much remain committed to our vision of empowering entrepreneurs and investors by providing a streamlined platform for capital raising and investing in early-stage and growth-stage companies. Our portal facilitates access to capital through equity crowd funding and other investment opportunities, democratizing the investment process and fostering innovation and growth. By focusing on transparency, efficiency and user engagement, Netcapital seeks to create a more inclusive financial ecosystem that benefits both issuers and investors. Again, and as always, thank you for your interest and support of Netcapital. Operator, we are ready for questions. Operator: [Operator Instructions] Your first question is coming from John Gilliam from Point Clear. John Gilliam: Yes, Martin. Could you give us an idea of the launch date of the secondary trading portal where it will be fully available to retail investors? Martin Kay: I'm sorry, I didn't quite catch the question there. My phone bleeped. You were asking about the secondary? John Gilliam: Asking about the launch date of the trading platform, the secondary trading platform. Yes. When will it be available for retail investors? Martin Kay: Got it. Great question. And that's not something that we have specifically stated to the market at this point. We're still working through some issues with usability and so on, and we want to make sure that when we go live with it to a broader group outside of our closed beta that we get the most impact from that launch. So we're holding off for now on launching that more broadly. John Gilliam: At the Wainwright conference, you mentioned it would launch soon. I guess what I'm looking for is ballpark idea. Are we talking Q4? Are we talking 2025, calendar year 2025? Just a ballpark idea. Martin Kay: I can't give you anything too specific. But we're moving as quickly as we can with both the regulators and our customers, our issuers and investors to make sure that we get that -- we launch that to have its maximum effect in the marketplace. John Gilliam: That's not a very good answer. Really looking for, I mean, is it going to be in the next year? Is it going to be 2 years? Martin Kay: It's certainly not going to be... John Gilliam: It's been 18 months since it was announced, 18 months ago, thereabouts is when it was announced. So just trying to get an idea. I mean, what are we looking at? Martin Kay: it's a very fair question. And again, it's -- we have had -- as we've announced, we've had the end-to-end platform in partnership with the ATS Templum. We've had that technology and that platform built out for some months now. We've been doing some testing with a closed group of beta users. I think our -- I would like to be able to -- we hope to be able to launch before the end of this calendar year. But again, there are factors as we've stated in the -- all of the filings we've made on this topic, there are factors that are somewhat beyond our control with respect to regulations. And so I can't really be much more specific than that, unfortunately. John Gilliam: All right. With regard to the companies that are listed on our balance sheet as -- at the price that they've had offerings recently, will all of those securities be available to trade on the secondary trading platform when it opens? Martin Kay: That is the intention, yes. That's what we have stated in our filings. Operator: Your next question is coming from Patrick Rooney from Crosby Capital. Unknown Analyst: On your ATM, do you intend to do a press release as you partially complete that or only when it's totally complete? That's one. Second question, what is your monthly burn rate? Martin Kay: And I think you meant the ATM, right, Pat, you were asking about that or...? Unknown Analyst: Yes, the ATM. In other words, if it gets partially done, you do not $2.1 million, but you do $300,000. Will you make a press release or no? Coreen Kraysler: We do not announce usage of the ATM. You will see it in our quarterly filings. Unknown Analyst: You will not make an announcement if you're successfully... Coreen Kraysler: We don't put out -- we're not required to put out a press release or an 8-K when we use the ATM, but we do disclose the ATM usage in our quarterly filings. Unknown Analyst: Okay. And the burn rate, I assume that -- no, go ahead, monthly burn rate... Coreen Kraysler: We've said in the past that our burn rate is $300,000 plus a month. Operator: Your next question is coming from Robert Topping from Topping Capital. Rob Topping: Sorry for the background noise here. I'm on the street. But I'll probably just kind of extend to the 2 earlier questions in another manner. But on the operating burn, given all the investments in the ATS system, do you see that curtailing? I mean when you effectively do a full launch, does the burn on that slow down pretty dramatically? I mean how much of that $300,000 a month is dedicated towards that? And then the other question I had, and I may circle back with 2 more. But the other question I had is on the ATS launch, is some of the friction regulatory? Or is it just the beta group and the technology and working through that? Martin Kay: I'll start us off and Coreen can jump in for sure. With respect to the secondary and the burn, yes, there is some relationship. I would say, one of the things that we're doing is, we're spending a lot of time and resources and energy of our own and with third parties educating regulators on what we're doing, why we're doing it, why we're allowed to do it, why it's part of the regulatory framework that we operate within. So yes, I think, Rob, and thanks for the questions. I think there's a relationship there, but maybe not the one you suspected around building out the platform. A lot of the -- all of the technology is -- I mean, as you guys know, it's never done, a product is never done. There's always improvements. There's always enhancements. But we have a launch-ready beta. We announced it to a closed group. So there's always work to be done to enhance the product as we go forward and there always will be. But a lot of what we're spending time and money on right now is making sure that from a regulatory perspective, various regulators we deal with understand what we're doing, why we're doing it. Does that answer part of your question? I'm sorry, if... Rob Topping: Yes, it does. I was on mute. Sorry about that. And I'll circle back with my other questions here, give somebody else a chance. Martin Kay: And with respect to the burn, just I think you had a question about that, Rob, as well. Again, as we've talked about, in May, we announced our broker-dealer application process that's -- in an attempt to move upscale into bigger transactions. And so obviously, our burn is a function of revenue minus cost, and so we'll -- we expect and hope that, that will allow us to generate incremental revenue streams beyond where we are today. Rob Topping: But it seems like from what Coreen has said, I think, is I mean $1 million a quarter burn is kind of a fair or a conservative amount. Is that correct? Because there's operating and then a lot of other numbers that show up. But I think I just heard $300,000 a month. So if I was just mindset of $1 million a quarter, that would be good number on the operating burn? Martin Kay: I think that's right. I think the -- I'm not going to say wildcards, but the things that can change that for us on the revenue side are there are -- it is a little unpredictable. We have whales that come through our model and raise big amounts of capital in certain quarters. So that can make a difference. And then, yes, we have responses to regulatory inquiries as everyone does in both financial services in general and in our industry, specifically that tap resources. But your general rule of thumb, yes, that's what we've said in the past and that's still true. Operator: [Operator Instructions] Your next question is coming from Jon Wheeler from Resurgent Realty. Jon Wheeler: Martin, this question is for you. So I have a couple of questions. And I think the first question would be at the current stock price, why is management and the Board of Directors not really stepping up to buy the shares to support the company at this time? So I'm not going to give you 2 or 3 questions at one time, but if you could answer that question, that's my first question. Hello? Coreen Kraysler: I'll answer that. Jon, are you there? Jon Wheeler: Yes. I think you all -- we've had a bad connection all morning. So can you hear me now? Coreen Kraysler: I can hear you. So my answer to your question would be both. We're severely restricted in what we can do in terms of management purchasing shares themselves due to the nature of the fundraising that we have been doing. So we've been very severely restricted in doing that so far. What's your next question, please? Jon Wheeler: So the next question is, you're publicly traded, and it seems to be at some point in time dealing with reality and the associated public costs to be publicly traded, your $300,000 per month burn rate, when I looked at your last filing, it says you have a little over $800,000 cash on hand, what point in time do you all face reality from the standpoint maybe it's not best to be in a public platform and more so private, maybe more so associated with some of your peer groups because I feel like every 6 months, there's another warrant to conversion, $2 million extreme dilution. And now you've put up an ATM with Wainwright, which will be another dilution. At what point in time does the treadmill stop from potentially moving from public to private? That's question two. Martin Kay: Again, Jon, sorry, I lost you for a little bit there on your last question, but I heard that one. Look, for us, we -- as I have said in the past, we are 100% committed to our vision in this business. We believe in the business, and we believe in the value that we can create and can be created in the business. So we're in this for the long term. We succeed when our issuers succeed. Every quarter, there are more examples of our issuers coming out of the -- I like to say, the back end of our process and having success in progressing to the next level. We had a company Avadain that raised, I think, $4.5 million on our platform in the fall and just announced a couple of weeks ago -- they're in the graphene business that supplies electric vehicle companies, and they just added Henry Ford III to their Board who's -- as the Chairman of their Board, and he's obviously on the Board of the Ford Motor Company. So that, along with the others that we always talk about and the others that are getting added is examples from our perspective of growing market awareness, more success stories, this becoming more of a mainstream market and something, again, where we really believe in the long-term value here. And we appreciate the investors, the shareholders who have stuck with us along this process. To your question of when does it change? Yes, there's a gradual -- there's a momentum, a swelling momentum that I just talked about in the industry and in the marketplace. There are also obviously -- we have a portfolio of minority positions. We've also started, as of FY '24, taking 1% of equity issued from every issuer on our platform. So I believe I'm right in saying I think we have 37 of those small equity positions alongside the 22 portfolio -- what we call portfolio companies. So obviously, there's optionality in all of that portfolio, especially as we broaden it now to include everyone who comes through our platform. So any one of those minority positions becoming liquid or getting to the next level is obviously a way that sort of proves out our model to those that don't believe it and generates liquidity for us. In the same way, in the core business, we're talking to some marquee -- what I call, marquee issuers, so folks who would be newsworthy and noteworthy as participants on our platform. So there are sort of -- there are quantum steps that we can take as we progress down this path. And obviously, I can't necessarily predict any of those. But what I can say is that the groundswell of activity in our space is maturing. And as it matures, these are early-stage private companies, it takes a while, but they do get there and some subset of them will be successful, and that's what will drive the value that we're creating. Operator: Thank you. That concludes our Q&A session. I will now hand the conference back to our host for closing remarks. Please go ahead. Coreen Kraysler: Thank you for joining, everyone. We really appreciate all your support, and we look forward to speaking with you again soon. Thank you. Martin Kay: Thank you all. Operator: Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $485,740!* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,911!* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $488,653!* Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of January 5, 2026 This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Netcapital (NCPL) Q1 2025 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Tuesday, December 16, 2025 at 10 a.m. ET Chief Executive Officer — Rich Wheeless Chief Financial Officer — Coreen Kraysler Founder — Jason Frishman Need a quote from a Motley Fool analyst? Email [email protected] Coreen Kraysler: Thank you, Holly. Good morning, everyone, and thank you for joining Netcapital's Second Quarter Fiscal 2026 Financial Results Conference Call. I'm Coreen Kraysler, CFO of Netcapital Inc. I will begin by reviewing our financial results and then our Chief Executive Officer, Rich Wheeless, will share his prepared remarks before we open the Q&A portion of our call. Before we begin, I'd like to remind everyone of the safe harbor disclosure regarding forward-looking information. Management's discussion may include forward-looking statements. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results levels of activity, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements reflect management's current views with respect to operations, results of operations, growth strategies, liquidity and future events. Netcapital assumes 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. With that said, I'd like to now turn to our financial results for the second quarter fiscal 2026. We reported revenues of approximately $51,000 for the 3 months ended October 31, 2025, and as compared to approximately $170,000 during the 3 months ended October 31, 2024. The decrease in revenues was primarily attributed to a decrease in portal fees during the quarter. I'll add that our revenues can be lumpy quarter-over-quarter, as the timing of large client funding events can have an outsized impact on results. We reported an operating loss of approximately $2.1 million compared to an operating loss of approximately $2.2 million for the second quarter of fiscal year 2025. We reported a loss per share of $0.44 compared to a loss per share of $2.34 for the second quarter of fiscal year 2025. As of October 31, 2025, the company had cash and cash equivalents of approximately $1.7 million. I'll now turn the call over to our CEO, Rich Wheeless. Rich Wheeless: Thank you very much, Coreen, and thank you, everybody, for joining the call today. This marks my first call with investors, and I want to start by emphasizing how excited I am to join Netcapital at this pivotal moment in our evolution. Throughout my career, I've been drawing to businesses that use technology to open doors that were previously closed and Netcapital's mission to democratize access to private investments fits up perfectly. I've been involved in the blockchain and crypto industry for numerous years and have had success going back to one of my prior companies, Taal, which we made the ASIC chips for cryptominers. For example, in 2018, we were able to raise $33 million in executed on our strategy, which led to a 120% increase in our share price in a 4-month time frame. So given the market size, anticipated growth in the tokenized asset market as well as experience of our team, I do believe that we are very well positioned to be able to be successful with our new strategy and drive value for all shareholders. Quite simply, Netcapital has significant opportunity for revenue enhancement by helping overall small businesses integrate crypto and blockchain into their financing and capital market strategy. The company already has a proven regulated platform that connects entrepreneurs with investors in a simple, transparent way. And I see this as a tremendous opportunity for us to build upon that foundation as we expand into new asset classes and blockchain enablement solutions. I'm really looking forward to working alongside this team and with our issuer and investor communities to make net capital a leading digital ecosystem for founders seeking growth capital and investors looking to participate in the next generation of innovative companies. So I want to spend a few minutes putting our recent results in the context walking through how our strategy has evolved and then talking about where we're focused going forward in emerging market drivers that may be the wind at our backs. We are in a transition period, and our second quarter fiscal 2026 revenues continue to be impacted by the fact that we've exited a consorting for equity model that while it's generated revenue just was not scalable in cash terms, it made it harder for investors to see the underlying economics of our business. Against that backdrop, we made the strategic decision to reset of the company around our core fintech platform and our recently licensed broker dealer. Our funding portal is fundamentally a technology business. We have a generally fixed cost platform and a relatively small employee base. So when we add more offerings to more volume, those incremental values -- I'm sorry, incremental revenues will follow with attractive incremental margins. That is the kind of operating leverage that we want to see in a fintech model. In parallel, our wholly owned subsidiary Netcapital securities allows us to participate in Reg A capital raises, which are typically larger than Reg CF offerings and a potentially expands the base of issuers and investors we can serve. So as we look ahead, the strategy is straightforward: grow volume on a platform that is now structurally more scalable, fully leverage our broker dealer to unlock larger transactions and a broader product set and position the company for emerging opportunities from digital assets and tokenization, which we view as a logical extension of our listing business. We plan to focus on where blockchain generally adds value, which can encompass how security is recorded, how they traded or how liquidity mechanisms are structured. And we always evaluate each opportunity with a long-term lens. How does it create durable value for the company and for shareholders? And can it be executed in a way that is consistent within the requisite regulatory framework? Lastly, I'll touch on the macro environment and why I'm very excited about the timeliness of our push in our position for success. There is an emerging new category for U.S.-compliant utility token sales that we believe is decentralizing token ownership and seeding long-term network growth. For example, Coinbase MONA token sale last month in November demonstrated strong pent-up demand for U.S. retail tech patient and utility to open offerings. $269 million was raised from 86,000 buyers and less than 24 hours. This was not just a speculation, but it was rather it was a clear market signal. With our position as a broker-dealer and deep regulatory expertise, we have a compliant bridge between global token to systems and U.S. retail investors. This new category has a potential for high-margin revenue streams on top of our current business. And a single successful token sale may generate revenue discount to dozens of our regular traditional Reg CF offerings with a similar compliance lift but higher margins. In addition, with 100,000 U.S. investors in our network and over 300 companies that we successfully funded. We have the foundation and a track record to succeed in this market. And with all that being said, we'll open the call up for Q&A. Operator: [Operator Instructions]. Your first question for today is from Todd Oberle with Insight Investments. Todd Oberle: Hello. Can you hear me, Rich? Rich Wheeless: Yes. Todd Oberle: So regarding this past quarter, I know you're newly hired CEO, but there was $51,000 in revenues across what I believe is 20-something employees. I've seen that 20-something reference in the past. And -- so maybe give me your outlook on what's the right employee count considering there's almost 0 revenues in this company and not understand how they justified so many employees for so long when there's the revenue being generated. So a question on -- and the second question is similar to that, and there's been a issued a broker-dealer license for, I think, around a year for the company? And has there been any revenue at all from Reg A offerings to this point? Rich Wheeless: Yes, I can -- yes. So in terms of the first one, we're focused on the pivot we have. The regulatory market is very positive right now, and we will look to execute on this new strategy that we've laid out. I'm not too worried about what's really happened in the past, the companies now in a great position and very excited for where we can be. So I'm not so focused. I'm not worried about where we were prior is as well because we've made a bit of a pivot in when you make pivots -- in the short term, revenue will kind of struggle in we'll do that. Coreen Kraysler: I'm going to jump in here. This is Coreen Kraysler, I'm the CFO. Regarding your question about the broker-dealer I would point to -- I think you should look at the quarter that we will report next and it wouldn't surprise me if you saw revenues from the broker-dealer in that quarter. Todd Oberle: Okay. So there's been no revenues to this point? Is that how I can take it from a broker dealer? Coreen Kraysler: I'm going to reiterate the answer that I just gave you. Todd Oberle: And then I guess in terms of the employee count, so I guess the takeaway is employee kind of is going to stay the same? I know that past is in the past, but going forward, what is the right number considering the size of the company, the cash balance, the cash burn? Coreen Kraysler: So I'm currently -- reiterate what Rich said, which is we're very much focused on our new strategy in generating revenues. You can't cost cut your way to growth. So our focus -- we're very excited about the new model. And as Rich mentioned, the regulatory environment for tokenized assets is appears to be favorable right now. So we are excited about that. We'd also ask people in the queue for questions. So please limit your question to one question plus one follow-up. Operator, can we move to the next person in queue, please? Operator: Certainly. Your next question is from Emily McAllen, a private investor. Unknown Attendee: I would like this question to the new CEO, Rich. And I am just curious how it is justified to give away 20% of the outstanding share count for a defunct software business. I'm just a little puzzled here. I'd like Rich to answer that. Rich Wheeless: In short, look, it helps. I appreciate the question. This helps along with our new strategy with the tokenized asset model to help us to be able to execute on that strategy. We would not have done this if it did not make sense for our overall plan. So I would ask -- give us a little bit of time and appreciate everyone's patience on this and there is a plan and path forward that we plan on executing, and I look forward to executing. Unknown Attendee: What is the plan? Please elaborate. That was pretty vague. Rich Wheeless: Yes, we're going to get more in the coming days, but there is a strategy laid out that we are doubling down on the tokenized asset market, which I had mentioned and alluded to earlier in the call and utilizing our existing platform that we do have the crowd funding platform in our broker-dealer as well. And we continue to look for existing technologies and pieces that fit in place to execute on that strategy. Unknown Attendee: So giving away 100% of the shares is for -- a justified for a defunct business? Coreen Kraysler: Excuse me, Emily, I'm going to answer your question for you and follow on to what Rich said. So I'm assuming that you're referring to Rivetz and what Rivetz brings to the table... Unknown Attendee: Correct. Coreen Kraysler: Yes. Okay. So what Rivetz brings to the table is both expertise and code plus the system platform and technology stack to produce tokenized assets in a safe and secure manner in a safe and secure manner. So that is why we bought Rivetz. We feel that it's very key to our ability to execute our strategy shift to tokenizes assets moving forward. Unknown Attendee: So what was Horizon purchase for the? Because I thought that was similar. Coreen Kraysler: I'm sorry, I couldn't hear your question. Unknown Attendee: I said, so what was the Horizon software purchase for them because I thought that was the purpose of Horizon and you guys gave away 20% of the outstanding shares at that time back in June. Coreen Kraysler: Jason, do you have a response to that? Jason Frishman: Yes. My understanding is that both Horizon and Rivetz will work together as part of this pivot, but I would defer to Rich on that. And I would also point out that I understand that roughly 20% of the stock is a large number but also when you understand the market cap of the company and the company has identified acquisitions that the company believes is critical to the future. The market cap of the company is -- makes it difficult to do those transactions without a larger percent of the company. Operator: There are no further questions in queue. We do have a question from John Davis. Unknown Attendee: Just curious how -- going back to, I think, what the previous person asked is the auditors have to justify this acquisition and also NASDAQ flags is, which is probable. You also have to justify that and the others will have to justify that. Can you walk us through how you justify the defunct 2021 company in acquiring this because it should have -- since it's been defunct since 2021, they should have been incredibly inexpensive. Because there was clearly no bidders on it. So how did the auditors justify this from a GAAP accounting and that you can present to NASDAQ to prove that it was worth its value. Rich Wheeless: So let me just add in there, it fits some with our overall strategy with what we're looking to do. I'm looking forward to where we're going to go with this company going forward, and I love the technology personally. I'm briefed -- I understand how this fits in with our overall plan. And sometimes you got to pay a little bit for a very good technology, and there's -- and it fits in with what we're looking to do. That's the best I can answer that in terms of -- I know it doesn't exactly address what you're saying in terms of the auditors now that pieces related to that. Coreen Kraysler: I would just add that this technology is quite critical to our strategy moving forward. And in terms of total dollars paid, it was not that much money. Operator: There are no further questions in queue. Coreen Kraysler: Rich, do you want to sum up, please? Rich Wheeless: Yes, sure. Yes. So thank you -- that concludes our -- sorry about that -- thank you, operator. To sum it up, based that our mission has not changed. We're here to democratize access to private capital markets for issues on net growth capital and for investors who want access to opportunities that have historically been hard to reach. everything that we're doing from product innovation to selective blockchain integration to the pursuit of larger rig at transactions is aimed at building a more opening, efficient and scalable private market ecosystem. We have made investments in the vital infrastructure and team to execute a strong growth plan in calendar year 2026 and beyond. We have already repositioned that capital around a more scalable combination of a funding portal and a broker-dealer, we are laser-focused on leveraging these advantages towards profitability. I look forward to work with investors, clients, employees and government to create value, and drive the company's future direction and updating you on our progress in the coming months and on our next call in March. And once again, thank you to everyone who's joined today. We appreciate your continued interest and support of Netcapital. Have an amazing day. Operator: Thank you. This concludes today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $485,740!* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,911!* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $488,653!* Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of January 5, 2026 This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Netcapital (NCPL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Wednesday, Jan. 8, 2025 at 10 a.m. ET Chief Executive Officer — Martin Kay Chief Financial Officer — Coreen Kraysler With that said, I'd like to now turn to our financial results for the full year fiscal 2025. We reported revenues of $869,460 with cost of services of $40,344 or a gross profit of $829,116 in fiscal year 2025. This compares to revenues of approximately $4.9 million with cost of services of approximately $108,000 and gross profit of approximately $4.8 million in fiscal year 2024. In line with our shift in business strategy in fiscal year 2025, we discontinued our consulting services to portfolio companies in exchange for equity, which accounted for the largest portion of our revenue decline year-over-year. However, our funding portal did charge a 1% fee payable in securities to every issuer that closed an offering. The dollar value of that fee amounted to $72,090 and $97,700 for the years ended April 30, 2025 and 2024, respectively. In fiscal 2025, we evaluated our equity investments in multiple issuers for impairment in accordance with ASC 321-10-35-3. The fair value of several investments had declined below their carrying amounts, which were other than temporary. Qualitative indicators included the resignation of key personnel, discontinuation of business operations, termination of fundraising efforts and other adverse developments. As a result, we had -- we wrote off several investments, resulting in an impairment expense of approximately $19.9 million. We reported an operating loss of approximately $8.3 million for full year fiscal 2025 as compared to an operating loss of approximately $3.4 million for full year fiscal 2024. The net loss for full year fiscal 2025 was approximately $28.3 million as compared to approximately $4.9 million for fiscal 2024. We reported a loss per share of $20.39 as compared to a loss per share of $28.83 for fiscal year 2024. I will now turn the call over to our CEO, Martin Kay. Martin Kay: Thank you, Coreen, and thank you to all our shareholders for being on this call today and for your continued support and interest in the company. As you heard from Coreen, revenues did decline, but fiscal 2025 marked a pivotal shift in our strategy as we transitioned away from equity-based consulting revenue to focus on building a stronger, more scalable foundation for future growth. While this realignment brought some near-term volatility, and despite the challenges of macroeconomic headwinds and uncertainty in the financial markets, we remained on task to strengthen the core of our business and lay the foundation for long-term growth. During fiscal 2025, our wholly-owned subsidiary, Netcapital Securities, received its broker-dealer license. As a result, we believe that we are positioned to serve a broader base of issuers and investors and have the ability to deepen our impact on democratizing access to private markets. I think it's also important to highlight platform success stories for our clients during the past year. For instance, our portfolio company, Zelgor, acquired Spellbook Studio, creators of the Infinite Black and the Infinite Black 2. MAGFAST, a charging device company, raised more than $10 million through multiple offerings on the Netcapital funding platform. And this was the second largest total amount raised under Reg CF in the consumer packaged goods industry according to KingsCrowd. We're also pleased to share that Avadain, a graphene licensing technology company, raised more than $1.275 million within the first 24 hours of launching its third offering on the Netcapital Funding Portal platform. So we're proud of the tangible results our platform continues to deliver, which underscore the power of our ecosystem to help innovative companies scale. We believe and continue to believe strongly in our mission to democratize access to private capital markets and remain committed to disciplined execution, product innovation and long-term value creation. As always, thank you for your interest and support of Netcapital. And operator, we're ready for questions. Operator: [Operator Instructions] And there were no questions. Apologies. We just did get a question in. The first question today is coming from Jeremy Mink from [indiscernible]. Unknown Analyst: I was just wondering, could you shed light on your transition, what you're looking forward to doing in the future? You had mentioned it in -- on the call. So I was just wondering if you could shed light on that. Martin Kay: Sure. I'll take a stab at that, Jeremy. Thanks for the question. And if I'm not answering it, please follow back up. But yes, we talked about broadening the platform to do what we do, which is help companies raise capital to build their businesses. We've been in the Reg CF business. As Coreen, I think, mentioned during fiscal 2025, we secured a broker-dealer license for our subsidiary, Netcapital Securities. That allows us to participate more fully in Reg A capital raisings, which are typically larger. So that we hope will allow us to broaden our access to the capital raising fees associated with that. We also have always believed in the integration of blockchain, digital assets and crypto with traditional finance. But obviously, the regulatory environment has been somewhat in flux. Clearly, there's -- it's still in flux, but there's certainly some openings, and we have taken several steps to pursue that opportunity as well. So those, I think, are the areas that we're focused on. And as Coreen mentioned, we've moved away from our equity-based consulting business to focus more on those more scalable cash-generating products and services. Unknown Analyst: To piggyback on that, I just have 2 follow-ups sort of tied together. So like your -- the consulting business was your -- first of all, was the consultant business the major cost of running the company, and that's why you had such a high -- such a large loss this quarter -- this year, excuse me. And then second question is, could you shed light on that crypto -- what you're planning on doing with crypto, if that's possible, please? Martin Kay: Well, I can answer the first question and then offer some guidance on the second. The first question around the financial dynamics of our business, the funding portal itself, so leave aside the consulting or advisory practice, the funding portal is technology. We're a fintech company. And so as typical in that sort of situation, there's a fixed cost platform. So if you looked at -- we have approximately, I think, 20 employees is what we've disclosed. And if you look across our employee base, that's where you'd see most of our employees working, and that's a very scalable operation. So the key, obviously, to getting to profitability there and cash flow positive is scaling and continuing to scale the business. The consulting business or the advisory business, obviously is not necessarily so much technology based. Obviously, we leverage technology there, but it's not as scalable. And we found that -- and typically, small companies struggle to pay cash for those services. So we were in a business that was -- had scaled fine to the level that we were at, but wasn't going to obviously scale forever. We weren't really looking to build out a giant consulting company and also where we were typically being paid in equity, which is hard to value versus cash. So that's kind of the way the current business looks, which I think was the first part of your question. Second part, with respect to blockchain and digital assets in general, we're evaluating opportunities against the potential for long-term value creation. Every day, we see deals, I see deals getting done that trade down in the market, draw regulatory and exchange scrutiny and ultimately threaten the company's viability in public listing. So we're not and never have been focused on the short-term fads. We evaluate every opportunity that comes our way, and we're out looking for opportunities, but we're not looking to jump on something that's going to be not a good deal for the company or for our shareholders, and you see some of that happening out in the market. The underlying trend with respect to crypto and the reason we put our advisory board together was to focus on the real integration of blockchain into the capital formation process that we're a part of. And we think -- I believe that's a very exciting opportunity for us, which opens up access to capital basically, both in primary and in secondary trading in ways and with user experiences that have not been possible given the regulatory environment primarily over the last few years. Operator: The next question is coming from Louis Navarrete, who's a private investor. Unknown Attendee: My question was similar to Jeremy's question. So it was basically answered. But to be confident, so with the recent -- how do you say, I'm not from America. So it's bear with me a little... Martin Kay: Yes, no problem with it. Unknown Attendee: So in light of the recent performance, I was just thinking if you are evaluating different possibilities of adopting a new strategy with the recent current trends other companies are adopting. Martin Kay: Yes. I'm not sure exactly what you're referring to there, Louis. But for sure, we -- our long-term mission is pretty clear and hasn't really changed. We're about democratizing access to capital in the private capital markets. And so we'll continue to explore every opportunity to do that in a way that is accretive to shareholders. And so we're expanding across the Reg A. And again, as I mentioned, we're looking for ways to integrate blockchain digital assets and crypto with our more traditional fintech approach. Operator: And the next question is coming from Brandon Enzer. Brandon is a private investor. Unknown Attendee: I just was thinking the current business model seems to be unsustainable with no credible path to a turnaround. Is a strategic pivot seems to be urgently needed. Can you elaborate on that? Martin Kay: Well, thanks for the question, Brandon. I think you made the statement. So I don't know how I can elaborate on that necessarily. But yes, I can comment on what you said. We do believe that our business, there is a path to continue creating value and to -- for the business to be sustainable. That's not to say we're not always and haven't always been looking at other opportunities. But I'm not sure what you mean by a strategic pivot. I mean I would argue that incorporating blockchain into what we do more fully, and we've taken a few steps in that direction already and obviously are exploring others is the most obvious extension, I would say. I don't think it's a strategic pivot. I think it's an extension. And no question, our core business faces challenges. I mean we need to scale. And as Coreen mentioned, the environment has not been wonderful for what we do. But we're still very committed to that long-term mission, and we're committed to using whatever tools and technologies become available so that we can -- our business is all about kind of threading the needle between the regulatory environment and the user experience. We're trying to create and continue to create and evolve something that is a compelling user experience, but also works within the regulatory environment in which we operate. And those things are constantly changing. So yes, we're constantly evolving. I think we've made no secret that one of the most important things for us is liquidity in the secondary market. And that's been a challenge for everyone in our space. And you see new ideas for providing liquidity in private capital markets. You see new ideas every day. And I don't believe anybody has cracked that intersection of the user experience and the regulatory environment, at least in the U.S. But again, that's -- those are things that we're actively exploring, and we're looking to move forward on that front. Operator: And the next question is coming from Emily McClellan. Emily is a private investor. Unknown Attendee: Martin, I had questions regarding your G&A legal -- or your G&A expenses. Why are they so high for such a small company? I mean $5.3 million. I mean, $1 million should be at legal at most. $200,000 to IR and proxy is sufficient. I just -- that doesn't look right on the books. Can you elaborate? Martin Kay: Look, I mean, we're a fintech company in the financial services space doing something that is very new and very different that frankly, the regulators don't understand very well. And this is -- we've always had a challenge with this. And -- so I couldn't agree more with you. Our legal expenses are much more than they should be, but that's the cost of doing business at this point as a public company in the fintech space financial services. I could let Coreen, our CFO, comment more specifically, but that's the general -- and it is a frustration. We spend a lot of time and energy and money, frankly, educating the regulators on what we do and why we do it. And they just -- there aren't a lot of companies that look like us. Even leave aside the Reg CF and the Reg A, which is obviously all new in the grand scheme of things, the -- we're -- in our portfolio of companies, we're essentially operating as a public collection of minority equity investments, which is, again, not something that the regulators typically have much experience in or understanding of. So yes, we spend more than we should, but it's not more than we need to. Unknown Attendee: Okay. I guess just to piggyback off that, I don't think it takes someone of too high intellect to know that, that's just not sustainable. Would you guys -- are you guys exploring going private? This is just -- it's not sustainable for a public company with these numbers. Martin Kay: No. And we don't -- I don't want to comment on that necessarily other than to say no. I mean, we -- the company uplisted to NASDAQ. There are many benefits to being a public company, but there's obviously no secret that there are also lots of costs irrespective of whether you're a financial. You layer on top of financial services and the regulatory environment there, it just becomes very, very expensive. But we found and continue to believe that the trade-off is worth it and some of the things that we're exploring will certainly benefit from the exposure of being a public company. Operator: Thank you. And that does conclude today's Q&A session. I will now hand the call back to Martin Kay for closing remarks. Martin Kay: Thanks, Paul. Well, as always, thank you for your interest and support of Netcapital. It's -- we really appreciate that, and I hope you all have a good day. Thank you. Operator: Thank you. This does conclude today's conference call. You may disconnect your lines at this time, and have a wonderful day. Thank you for your participation. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $485,740!* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,911!* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $488,653!* Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of January 5, 2026 This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Netcapital (NCPL) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Tuesday, December 17, 2024 at 10 a.m. ET Chief Executive Officer — Martin Kay Chief Financial Officer — Coreen Kraysler Need a quote from a Motley Fool analyst? Email [email protected] Coreen Kraysler: Thank you, Matthew. Good morning, everyone, and thank you for joining Netcapital's Second Quarter Fiscal 2025 Financial Results Conference Call. I'm Coreen Kraysler, CFO of Netcapital Inc. I will begin by reviewing our financial results and then our Chief Executive Officer, Martin Kay, will share his prepared remarks before we open up the Q&A portion of our call. Before we begin, I'd like to remind everyone of the safe harbor disclosure regarding forward-looking information. Management's discussion may include forward-looking statements. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements reflect management's current views with respect to operations, results of operations, growth strategy, liquidity and future events. Netcapital assumes 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. With that said, I'd like to now turn to our financial results for the second quarter fiscal 2025. Revenues for Q2 fiscal 2025 for the period ended October 31, 2024, decreased by approximately $1.9 million or approximately 92% to $170,528 as compared to approximately $2.04 million in Q2 fiscal 2024. The decline in revenues was driven -- was attributed to the lack of consulting service revenue in Q2 2025 as compared to revenue of approximately of $1.5 million for consulting services for equity securities and $62,000 for consulting revenue in Q2 2024. I'm pleased to report that as of November 22, 2024, we received approval from FINRA for our broker-dealer subsidiary, which will be a focus for the company moving forward. We reported an operating loss of $2.2 million approximately for the second quarter fiscal 2025 as compared to an operating profit of $52,220 for the second quarter fiscal 2024. Our net loss for the second quarter fiscal 2025 was approximately $2,220,501 as compared to a net profit of approximately $339,616 for the same period in the prior year. We reported a loss per share of $2.34 for the second quarter ended October 31, 2024, compared to earnings per share of $2.52 for the same period in the prior year. As of October 31, 2024, the company had cash and cash equivalents of $1,346,739. I'll now turn the call over to our CEO, Martin Kay. Martin Kay: Thank you, Coreen. I'd like to also thank everyone for being on this call today and for your interest and support of Netcapital. As Coreen mentioned, during the quarter, we saw a decrease in revenue, primarily due to the shift away from what is primarily noncash consulting service revenue. So with our focus on the broker-dealer subsidiary, we believe that we will see greater potential and value added in that area. And as such, we've not been pursuing equity-based revenue contracts. Recently, as Coreen mentioned, we were pleased to announce that our wholly owned subsidiary, Netcapital Securities, Inc., had received approval from the Financial Industry Regulatory Authority, or FINRA, to become a FINRA member broker-dealer. This marks a significant achievement for the company and it begins to open new opportunities for more revenue streams. We believe that by having Netcapital Securities, Inc. as registered broker-dealer, it could create new opportunities to expand the company's revenue base by hosting and generating additional fees from Reg A and Reg D offerings on the Netcapital platform. This positions the company to support larger fundraises and potentially expand the range of investment opportunities available to its investor base. Our broker-dealer license allows us to conduct private placements of securities and referral business, support companies raising equity capital, as I mentioned, under Regulation A and Regulation D; partner with other broker-dealers to syndicate deals; charge fees on capital raised under Reg A and Reg D as well as enter into fee sharing agreements with other broker-dealers. Thank you for your continued interest and support of Netcapital, and we look forward to keeping you informed of our progress. Operator, we're ready for questions. Operator: [Operator Instructions] Your first question is coming from Kal Malhi from BullRun Capital. Kal Malhi: Hello. Who is this? Martin Kay: You have Martin Kay, the CEO; and Coreen Kraysler, our CFO. Kal Malhi: Okay. Martin, I'm an investor, and I'm also -- I do a lot of start-ups, and we looked at crowd funding or what have you. But more so, I'm curious to see what is your capital structure. I know online, it says you've got a limited number of shares, but you guys trade crazy volumes based on what you have. Can you kind of provide an update on what that structure is? Martin Kay: It's all common stock. I mean there's nothing really complex about it. We're -- we trade on NASDAQ, and we have a pretty diversified shareholder base and not uncommon for that to trade large volumes periodically. Kal Malhi: How many shares are outstanding now? Martin Kay: I think we -- I'll defer to Coreen, but I think it's approximately 1.8 million shares outstanding. Kal Malhi: Okay. And then you have a number of warrants or what have you. What are the cheapest warrants that are out there and how many are out? Martin Kay: I don't know, Coreen, if you have that in front of you. Coreen Kraysler: I don't have that in front of me. Kal Malhi: Okay. And what's your net assets right now? I know you have a number of investments in other companies. What would you say your net asset value is? Martin Kay: Well, if you're talking about the portfolio of equity securities, and we talked about the business we had been in of taking equity in return for consulting services, that portfolio of equity positions is, I believe, on the balance sheet we just disclosed is a little over $25 million worth of net asset value in those equity positions. Kal Malhi: And what's your cash position and payables or liabilities? Martin Kay: Again, cash and cash equivalents at the end of the quarter, a little over $1.3 million. Coreen Kraysler: And we're going to have to move on to the next questioner after this. Operator: Your next question is coming from Chris Sakai from Singular Research. Joichi Sakai: Just really wanted to get a sense and idea of what differentiates Netcapital Securities from other broker-dealers. Martin Kay: Well, there's a number of things. Obviously, as we talked about the ability to support Reg A fundraising through the existing Netcapital platform where we've already built out an ecosystem and a marketplace that brings investors and other issuers together, obviously, creates a platform and an environment that is unique to the sort of equity crowd funding industry versus traditional broker-dealer activities. So in other words, we already -- we have -- and we've disclosed over 115,000 investor accounts, and we have robust relationships with digital marketing providers and the team internally that understands how to bring the right investors to the right deal in this way and in this model, which is relatively unique. Obviously, we have competitors -- a few competitors in our space, but it's not the traditional broker-dealer business. Joichi Sakai: Okay. And also, does this new registration for broker-dealer, does that provide any revenue visibility? Can you see any revenue streams, new revenue streams from that? And what -- about how much would that be, do you think? Martin Kay: Well, we haven't disclosed specifically what that -- forecast. That's not what we do. But as we discussed in our remarks, we -- it certainly opens up the potential for new revenue streams. For example, we -- Reg A, as I'm sure you know, allows issuers to raise a greater amount up to $75 million in a 12-month period versus $5 million under Reg CF exemption. So that much larger raise. And as a broker-dealer, we are now able to structure a fee arrangement that is likely a percentage of that as opposed to some sort of flat fee. So that obviously is something that we plan to pursue. Joichi Sakai: Do you see any large deals like that coming up? Martin Kay: Well, again, we haven't disclosed specifics of deals that we're pursuing, but safe to assume that, again, we are out in the marketplace talking to issuers all the time and have been -- we've had almost 300 companies successfully raised on our platform. Many of those have gone on to raise additional rounds of capital and are obviously candidates also for Reg A. So yes, we're in active discussions and have been for some time with companies who'd like to raise more capital than they can under Reg CF exemption. Operator: Your next question is coming from John Gilliam from Point Clear Strategic Capital. John Gilliam: Yes, last quarter, you indicated that you expected the Templum ATS exchange to open up from the beta to a full launch in the quarter ended this month. And I want to just get an update there if it's still expected to launch in '24. Martin Kay: Well, what I can say and what we've said, I think, previously is the technical and product build-out is complete, as you mentioned, in partnership with the Templum ATS. But I think it's safe to say we're still working through some details of the regulatory framework governing secondary exchanges. And it's really important to us to make sure that we don't roll out or open up to everyone a capability that we're still wanting to get to be exactly right. So we're still working on that. And again, I think it's prudent for us to not do anything before we feel 100% comfortable that we have the best product experience and that we have -- that we're operating within the regulatory framework in a way that we need to. So again, we haven't really talked or disclosed official timeline for launching that secondary transfer functionality, but that's all I can say at this point. John Gilliam: Well, on the prior call, you did mention you thought it would be in the year -- the calendar year ended '24. Are you feeling like that's kind of pushed into in the past -- the end of Q3 into Q4? Martin Kay: I think that's right. John Gilliam: How far out do you think we're looking? Martin Kay: Again, I don't think I can confidently predict that at this point. Operator: That concludes our Q&A session. I'll now hand the conference back to CFO, Coreen Kraysler, for closing remarks. Please go ahead. Coreen Kraysler: Thank you, everyone, for joining our call today. We really appreciate you as shareholders and potential shareholders. We are excited about the prospects ahead for our new broker-dealer subsidiary and wish you all a wonderful holiday season. Thank you. Martin Kay: Thank you all. Operator: Thank you everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $485,740!* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,911!* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $488,653!* Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of January 5, 2026 This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Netcapital (NCPL) Q2 2025 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: December 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Netcapital Inc (NASDAQ:NCPL) has a proven regulated platform that connects entrepreneurs with investors in a simple, transparent way. The company is strategically pivoting towards a more scalable fintech model, focusing on its core fintech platform and recently licensed broker dealer. Netcapital Inc (NASDAQ:NCPL) is well-positioned to capitalize on emerging opportunities from digital assets and tokenization. The company has a strong foundation with 100,000 US investors in its network and over 300 companies successfully funded. There is potential for high-margin revenue streams from the new category of US-compliant utility token sales. Netcapital Inc (NASDAQ:NCPL) reported a significant decrease in revenues, from approximately $170,000 in the previous year to $51,000 for the current quarter. The company continues to operate at a loss, with an operating loss of approximately $2.1 million for the quarter. There has been no revenue reported from the broker dealer activities to date, despite having the license for about a year. Concerns were raised about the justification of employee count given the low revenue generation. Questions were raised about the acquisition of defunct businesses and the justification of giving away a significant percentage of shares for these acquisitions. Warning! GuruFocus has detected 3 Warning Signs with NCPL. Is NCPL fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an outlook on the employee count given the low revenue and the number of employees? Also, has there been any revenue from Reg A offerings since the brokerage license was issued? A: (Rich Wheelis, CEO) We are focused on executing our new strategy, and while short-term revenue may struggle during this pivot, we are optimistic about the regulatory market and our future position. A: (Corinne Chrysler, CFO) Regarding the broker dealer, you should look at the next quarter's report, where we expect to see revenues from the broker dealer. Q: How do you justify giving away 20% of the outstanding share count for a defunct software business? A: (Rich Wheelis, CEO) This acquisition aligns with our strategy to execute on the tokenized asset model. We believe it makes sense for our overall plan, and we ask for patience as we execute this strategy. A: (Corinne Chrysler, CFO) Rivets brings expertise, code, and a technology stack crucial for producing tokenized assets securely, which is key to our strategy shift. Q: What was the purpose of acquiring Horizon software, and how does it relate to Rivets? A: (Jason, Unidentified_6) Both Horizon and Rivets will work together as part of our pivot. Given the company's market cap, acquiring critical technologies requires a larger percentage of the company. Q: How do you justify the acquisition of a defunct company from a GAAP accounting perspective, and how will you present this to NASDAQ? A: (Rich Wheelis, CEO) The technology fits with our overall strategy, and while it may not directly address the auditors' concerns, we believe it is a valuable addition. A: (Corinne Chrysler, CFO) The technology is critical to our strategy, and the total dollars paid were not substantial. Q: Can you elaborate on the company's strategy moving forward? A: (Rich Wheelis, CEO) We are doubling down on the tokenized asset market, utilizing our crowdfunding platform and broker dealer, and seeking technologies that fit our strategy. We aim to build a more open, efficient, and scalable private market ecosystem. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Revenue: $190,058 for the three months ended July 30, 2025, a 34% increase from $142,227 in the same period in 2024. Operating Loss: Approximately $3.3 million, compared to $2.5 million in the first quarter of fiscal year 2025. Loss Per Share: $1.27, compared to $5.10 in the first quarter of fiscal year 2025. Cash and Cash Equivalents: Approximately $4.6 million as of July 31, 2025. Warning! GuruFocus has detected 4 Warning Signs with NCPL. Is NCPL fairly valued? Test your thesis with our free DCF calculator. Release Date: September 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Netcapital Inc (NASDAQ:NCPL) reported a 34% increase in revenues for the first quarter of fiscal 2026 compared to the same period in the previous year. The company experienced significant growth in portal fees and services provided in exchange for equity securities. Netcapital Inc (NASDAQ:NCPL) successfully shifted its business model towards a more scalable approach, focusing on building a stronger fintech ecosystem. The establishment of a crypto advisory board positions the company to integrate blockchain, digital assets, and crypto with traditional finance. The launch of a game advisory board aims to deepen engagement with the online game community and drive long-term growth. Netcapital Inc (NASDAQ:NCPL) reported an operating loss of approximately $3.3 million for the first quarter of fiscal 2026, an increase from the $2.5 million loss in the same period the previous year. The company reported a loss per share of $1.27, despite being an improvement from the previous year's $5.10 loss per share. One issuer accounted for 73% of the company's revenues, indicating a potential over-reliance on a single source of income. Despite revenue growth, the company still faces challenges in achieving profitability. The strategic shift in the business model, while promising, may take time to fully realize its potential and impact financial performance. Q: Can you elaborate on the factors contributing to the 34% increase in revenue for the first quarter of fiscal 2026? A: Coreen Sarah Kraysler, CFO: The revenue increase was primarily due to a rise in portal fees and revenues from services provided in exchange for equity securities. Notably, one issuer, responsible for 73% of our revenues, successfully raised approximately $5 million during the quarter. Q: What strategic shifts have you implemented in your business model, and how are they impacting your financial performance? A: Martin Kay, CEO: We have shifted away from equity-based consulting revenue to focus on building a more scalable business. This strategic change is beginning to show positive results, as evidenced by our revenue and portal fee growth of over 30% in the first quarter. Q: Can you discuss the significance of the newly established crypto advisory board? A: Martin Kay, CEO: The crypto advisory board, composed of industry leaders, will guide our efforts in integrating blockchain, digital assets, and crypto with traditional finance. This initiative positions us to explore opportunities in decentralized finance and play a larger role in fintech. Q: What are the objectives of the newly launched game advisory board? A: Martin Kay, CEO: The game advisory board aims to advance our strategic growth initiatives and deepen engagement with the online game community. It brings together innovative leaders to help expand our ecosystem and drive long-term growth. Q: How do you plan to enhance your services through blockchain and digital asset innovation? A: Martin Kay, CEO: By leveraging blockchain, crypto, and digital asset innovation, we aim to position the company to lead the future of private market opportunities for companies raising capital and direct investment opportunities for investors. For the complete transcript of the earnings call, please refer to the full earnings call transcript.