In This Story
Netcapital Inc. (NCPL+3.30%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reveals a decrease in revenues to $312,755 for the six months ended October 31, 2024, compared to $3,561,467 in the same period the previous year. This decline is primarily due to the absence of consulting service revenue in the current period.
Netcapital's costs of services decreased to $30,001 from $38,187, resulting in a gross profit of $282,754, down from $3,523,280 in the previous year.
The company reported an operating loss of $4,710,668 for the six months ended October 31, 2024, compared to a loss of $696,800 in the previous year.
Net income for the period was a loss of $4,747,671, compared to a loss of $152,039 in the previous year.
Netcapital's cash and cash equivalents increased to $1,346,739 as of October 31, 2024, from $863,182 at the end of April 2024.
The company has negative working capital of $2,615,585 as of October 31, 2024, and continues to face challenges in generating sufficient cash flow from operations.
Netcapital completed several equity offerings to raise capital, including an at-the-market offering agreement with Wainwright, generating approximately $2,029,000 in net proceeds.
The company received approval from FINRA for its subsidiary, Netcapital Securities Inc., to operate as a FINRA-member broker-dealer, which is expected to expand revenue opportunities.
Netcapital faces substantial doubt about its ability to continue as a going concern due to negative cash flow and operating losses.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Netcapital Inc. quarterly 10-Q report dated December 16, 2024. To report an error, please email earnings@qz.com.