Netcapital Inc. Q3 FY2025 earnings call

• Coreen Kraysler reviewed the financial results, noting the revenue decline, operating and net losses. - Martin Kay highlighted the success of Netcapital Securities, Inc. becoming a broker-dealer on November 22nd, 2024. NSI is approved to:
  • Handle private placements of securities and referral business.
  • Support companies raising equity capital under Reg A and Reg D.
  • Partner with other broker-dealers.
  • Mentioned GenOn Neuroscience, Inc. engaged Netcapital Securities for a planned Regulation A offering.

For the three months ended January 31st, 2025, revenues decreased by $890,111 or approximately 85% to $152,682 compared to $1,042,793 in the same period in 2024. This decline was attributed to the lack of consulting service revenue for equity securities. The operating loss for the third quarter fiscal 2025 was $1,687,692, compared to $1,205,157 in the third quarter of fiscal 2024. The net loss for the third quarter of fiscal 2025 was approximately $3,006,537, versus a net loss of approximately $2.2 million in the same period the prior year. There was an impairment charge of $1.3 million for one of the portfolio companies. The net loss per share for the third quarter was $1.57 EPS, compared to a loss of $13.60 EPS in the same period prior year.

• Management remains cautiously optimistic despite the uncertain market environment.
  • Look forward to keeping shareholders updated on progress with Netcapital Securities, Inc.