Netcapital (NCPL) Q1 2025 Earnings Call Transcript

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Monday, September 16, 2024 astatine 10 a.m. ET

• Chief Executive Officer — Martin Kay

• Chief Financial Officer — Coreen Kraysler

• Operator

With that said, I'd similar to present crook to our fiscal results for the archetypal 4th of fiscal 2025. Revenues for the archetypal 4th of fiscal 2025 for the play ending July 31, 2024, decreased by astir $1.4 cardinal oregon astir 91% to $142,227 compared to astir $1.5 cardinal successful the archetypal 4th of 2024. The diminution successful gross was chiefly attributed to a alteration successful revenues for the services that we supply successful speech for equity securities during the quarter. We had nary revenues from equity-based contracts arsenic compared to implicit $1.1 cardinal successful specified revenues successful the 3 months ended July 31, 2023.

We are focusing connected establishing a broker-dealer subsidiary truthful that the institution whitethorn person further sources of revenue, and we person not been pursuing equity-based gross contracts. Total backing portal revenues declined by $233,800 oregon astir 62% to $242,056 during the archetypal 4th of fiscal 2025. Total backing portal gross consists of portal fees, listing fees and a 1% equity fee. Revenue from portal fees decreased by $132,427 oregon astir 60% successful the 3 months ended July 31, 2024, to $89,429 from $221,856 successful the 3 months ended July 31, 2023.

Revenues from portal fees dwell of a 4.9% fixed interest of the full superior raised by the issuer positive fixed miscellaneous charges for administrative fees, specified arsenic the rolling adjacent oregon the filing of an amended offering statement. The diminution successful portal fees is simply a effect of a alteration successful the magnitude of superior that we raised connected our backing portal during the period. Total funds raised successful offerings decreased by astir $1.8 cardinal oregon astir 60% successful the 3-month play ending July 31, 2024, to astir $1.2 cardinal arsenic compared to astir $2.96 cardinal successful the aforesaid play of 2023.

Revenue from listing fees decreased by $111,500 oregon astir 72% to $42,500 successful the 3 months ended July 31, 2024, arsenic compared to $154,000 successful the 3 months ended July 31, 2023. Listing fees are typically $5,000 per issuer and they are the archetypal signifier of gross earned by our backing portal erstwhile an issuer signs a declaration with america to merchantability securities connected the portal. The driblet successful listing fees tin beryllium attributed to our nonaccomplishment of an experienced salesperson [Technical Difficulty].

Operator: Coreen, I bash apologize. This is the operator. Your enactment is breaking up. I'm going to effort to dial up to your line, truthful I tin get a wide connection.