Netcapital Inc., a fintech company operating an online platform for private securities offerings, reported a significant decrease in revenue for the quarter ended July 31, 2024. Revenue fell by approximately 91% to $142,227 compared to $1,519,809 in the same period last year, primarily due to a reduction in equity-based consulting services. The company's operating loss widened to $2,508,237, and net cash used in operating activities increased to $1,963,645. Despite these challenges, Netcapital's funding portal business, which generates cash revenues, has seen year-on-year growth. The company has taken steps to reduce operating expenses and is focusing on establishing a broker-dealer subsidiary to diversify revenue streams. However, the financial results have raised substantial doubt about the company's ability to continue as a...Show More

Netcapital Inc., a fintech company operating an online platform for private securities offerings, reported a significant decrease in revenue for the quarter ended July 31, 2024. Revenue fell by approximately 91% to $142,227 compared to $1,519,809 in the same period last year, primarily due to a reduction in equity-based consulting services. The company's operating loss widened to $2,508,237, and net cash used in operating activities increased to $1,963,645. Despite these challenges, Netcapital's funding portal business, which generates cash revenues, has seen year-on-year growth. The company has taken steps to reduce operating expenses and is focusing on establishing a broker-dealer subsidiary to diversify revenue streams. However, the financial results have raised substantial doubt about the company's ability to continue as a going concern. Netcapital's future plans include continuing to operate with lower fixed overheads and seeking additional financing through private placements, public offerings, or bank financing. The company's stock is listed on the Nasdaq, but it has faced compliance challenges, including a recent notice from Nasdaq regarding potential delisting due to non-compliance with the minimum bid price requirement. Netcapital regained compliance with Nasdaq's continued listing requirements as of August 19, 2024.