Summary by Futu AI
Netcapital Inc. reported fiscal year 2024 revenues of $4.95 million, down 42% from $8.49 million in FY2023, primarily due to decreased consulting services revenue. The company recorded a net loss of $4.99 million compared to net income of $2.95 million in the previous year, impacted by a $2.7 million unrealized loss on equity securities and a $1.05 million impairment charge.The funding portal business showed positive momentum, with portal fees increasing 109% to $874,368. The average amount raised per offering grew significantly to $280,978 from $128,170 in FY2023, while the number of successful offerings increased to 53 from 50. The company also implemented a new 1% equity fee structure for portal customers.Looking ahead, Netcapital is pursuing strategic initiatives including a broker-dealer license application and the launch of a secondary trading platform beta version through Templum ATS. The company faces going concern challenges with negative working capital of $2.07 million and is implementing cost reduction measures while exploring additional financing options. Management has received shareholder approval for a reverse stock split to maintain Nasdaq listing compliance.
