Netcapital Inc
For the period ended Jan 31, 2024. Filed Mar 18, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2024 · Filed Mar 18, 2024
NCPL$1.26-3.1%Stored close · as of Nov 6, 2026
Contents
Condensed Consolidated Balance Sheets as of January 31, 2024 (unaudited) and April 30, 2023
| January 31, 2024 (Unaudited) | April 30, 2023 (Audited) | |
|---|---|---|
| Assets: | ||
| Cash and cash equivalents | $2,172,099 | $569,441 |
| Accounts receivable net | 3,701,501 | 1,388,500 |
| Note receivable | 20,000 | - |
| Prepaid expenses | 158,465 | 583,030 |
| Total current assets | 6,052,065 | 2,540,971 |
| Deposits | 6,300 | 6,300 |
| Notes receivable - related parties | 202,000 | 202,000 |
| Purchased technology, net | 15,790,304 | 15,875,297 |
| Investment in affiliate | 240,080 | 240,080 |
| Equity securities | 21,844,698 | 22,955,445 |
| Total assets | $44,135,447 | $41,820,093 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | ||
| Trade | $828,836 | $578,331 |
| Related party | 75,204 | 75,204 |
| Accrued expenses | 394,911 | 285,065 |
| Stock subscription payable | 10,000 | 10,000 |
| Deferred revenue | 487 | 661 |
| Interest payable | 88,084 | 98,256 |
| Current taxes payable | - | 174,000 |
| Deferred tax liability, net | - | 1,657,000 |
| Related party debt | 15,000 | 15,000 |
| Secured note payable | - | 350,000 |
| Current portion of SBA loans | 1,885,800 | 1,885,800 |
| Loan payable - bank | 34,324 | 34,324 |
| Total current liabilities | 3,332,646 | 5,163,641 |
| Long-term liabilities: | ||
| Long-term SBA loans, less current portion | 500,000 | 500,000 |
| Total liabilities | 3,832,646 | 5,663,641 |
| Commitments and contingencies | - | - |
| Stockholders’ equity: | ||
| Common stock, $.001 par value; 900,000,000 shares authorized, 17,231,132 and 6,440,527 shares issued and outstanding | 17,231 | 6,441 |
| Shares to be issued | 122,124 | 183,187 |
| Capital in excess of par value | 37,077,147 | 30,500,944 |
| Retained earnings | 3,086,299 | 5,465,880 |
| Total stockholders’ equity | 40,302,801 | 36,156,452 |
| Total liabilities and stockholders’ equity | $44,135,447 | $41,820,093 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |
|---|---|---|---|---|
| January 31, 2024 | January 31, 2023 | January 31, 2024 | January 31, 2023 | |
| Revenues | $1,042,793 | $2,260,414 | $4,604,260 | $5,379,960 |
| Costs of services | 58,875 | 4,305 | 97,062 | 61,603 |
| Gross profit | 983,918 | 2,256,109 | 4,507,198 | 5,318,357 |
| Costs and expenses: | ||||
| Consulting expense | 175,357 | 130,500 | 544,033 | 455,892 |
| Marketing | 32,198 | 23,549 | 320,817 | 64,211 |
| Rent | 19,544 | 17,187 | 57,533 | 51,586 |
| Payroll and payroll related expenses | 869,517 | 946,043 | 2,957,394 | 2,592,891 |
| General and administrative costs | 1,092,459 | 568,253 | 2,529,378 | 1,241,365 |
| Total costs and expenses | 2,189,075 | 1,685,532 | 6,409,155 | 4,405,945 |
| Operating income (loss) | (1,205,157) | 570,577 | (1,901,957) | 912,412 |
| Other income (expense): | ||||
| Interest expense | (11,918) | (17,632) | (35,784) | (76,922) |
| Gain on debt conversion | - | - | - | 224,260 |
| Amortization of intangible assets | (28,331) | (25,914) | (84,993) | (68,076) |
| Unrealized gain (loss) on equity securities | (2,696,135) | 1,866,468 | (2,696,135) | 1,857,500 |
| Realized loss on sale of investment | - | - | - | (406,060) |
| Total other income (expense) | (2,736,384) | 1,822,922 | (2,816,912) | 1,530,702 |
| Net income (loss) before taxes | (3,941,541) | 2,393,499 | (4,718,869) | 2,443,114 |
| Income tax expense (benefit) | (1,713,999) | 697,000 | (2,339,288) | 499,000 |
| Net income (loss) | $(2,227,542) | $1,696,499 | $(2,379,581) | $1,944,114 |
| Basic earnings (loss) per share | $(0.19) | $0.33 | $(0.25) | $0.46 |
| Diluted earnings (loss) per share | $(0.19) | $0.33 | $(0.25) | $0.46 |
| Weighted average number of common shares outstanding: | ||||
| Basic | 11,466,523 | 5,166,299 | 9,457,740 | 4,208,216 |
| Diluted | 11,466,523 | 5,166,549 | 9,457,740 | 4,208,466 |
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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
For the Nine Months Ended January 31, 2024 and the Year Ended April 30, 2023
| Common Stock · Shares to · Capital in Excess of · Retained · Total | ||||||
|---|---|---|---|---|---|---|
| Shares | Amount | Be Issued | Par Value | Earnings | Equity | |
| Balance, April 30, 2022 | 2,934,344 | $2,934 | $244,250 | $22,479,769 | $2,510,908 | $25,237,861 |
| Shares issued for debt conversion | 133,333 | 134 | - | 379,852 | - | 379,986 |
| Sale of common stock | 1,205,000 | 1,205 | - | 3,947,912 | - | 3,949,117 |
| Vesting of stock options | - | - | - | 32,953 | - | 32,953 |
| Net income for July 31, 2022 quarter | - | - | - | - | 64,477 | 64,477 |
| Balance, July 31, 2022 | 4,272,677 | 4,273 | 244,250 | 26,840,486 | 2,575,385 | 29,664,394 |
| Sale of common stock | 2,600 | 3 | - | 23,397 | - | 23,400 |
| Purchase of equity interest | 37,500 | 37 | - | 366,338 | - | 366,375 |
| Vesting of stock options | - | - | - | 32,953 | - | 32,953 |
| Net income for Oct. 31, 2022 quarter | - | - | - | 183,138 | 183,138 | |
| Balance October 31, 2022 | 4,312,777 | 4,313 | 244,250 | 27,263,174 | 2,758,523 | 30,270,260 |
| Sale of common stock | 1,434,000 | 1,434 | - | 1,620,025 | - | 1,621,459 |
| Purchase of equity interest | 18,750 | 19 | - | 171,105 | - | 171,124 |
| Purchase of intellectual property | 300,000 | 300 | - | 434,700 | - | 435,000 |
| Reduction in shares to be issued | 6,250 | 6 | (61,063) | 61,057 | - | - |
| Vesting of stock options | - | - | - | 63,057 | - | 63,057 |
| Net income for Jan. 31, 2023 quarter | - | - | - | - | 1,696,499 | 1,696,499 |
| Balance January 31, 2023 | 6,071,777 | 6,072 | 183,187 | 29,613,118 | 4,455,022 | 34,257,399 |
| Purchase of equity interest | 18,750 | 19 | - | 195,233 | - | 195,252 |
| Vesting of stock options | - | - | - | 132,943 | - | 132,943 |
| Stock-based compensation | 350,000 | 350 | - | 559,650 | - | 560,000 |
| Net income Q4 | - | - | - | 1,010,858 | 1,010,858 | |
| Balance April 30, 2023 | 6,440,527 | 6,441 | 183,187 | 30,500,944 | 5,465,880 | 36,156,452 |
| Vesting of stock options | - | - | - | 139,371 | - | 139,371 |
| Stock-based compensation | 100,000 | 100 | - | 143,900 | - | 144,000 |
| Sale of common stock | 2,825,000 | 2,825 | - | 2,272,375 | - | 2,275,200 |
| Purchase of equity interest | 18,750 | 18 | - | 183,170 | - | 183,188 |
| Stock-based settlement | 49,855 | 50 | - | 58,779 | - | 58,829 |
| Net loss July 31, 2023 quarter | - | - | - | - | (491,655) | (491,655) |
| Balance July 31, 2023 | 9,434,132 | 9,434 | 183,187 | 33,298,539 | 4,974,225 | 38,465,385 |
| Vesting of stock options | - | - | - | 139,371 | - | 139,371 |
| Reduction in shares to be issued | 6,250 | 6 | (61,063) | 61,057 | - | - |
| Purchase of equity interest | 18,750 | 19 | - | 183,170 | - | 183,189 |
| Net income October 31, 2023 quarter | - | - | - | - | 339,616 | 339,616 |
| Balance October 31, 2023 | 9,459,132 | 9,459 | 122,124 | 33,682,137 | 5,313,841 | 39,127,561 |
| Vesting of stock options | - | - | - | 139,371 | - | 139,371 |
| Sale of common stock | 4,800,000 | 4,800 | - | 3,255,639 | - | 3,260,439 |
| Warrant exercise | 2,972,000 | 2,972 | - | - | - | 2,972 |
| Net loss January 31, 2024 quarter | - | - | - | - | (2,227,542) | (2,227,542) |
| Balance January 31, 2024 | 17,231,132 | $17,231 | $122,124 | $37,077,147 | $3,086,299 | $40,302,801 |
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