Netcapital (NCPL) Q4 2024 Earnings Call Transcript

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Wed, January 7, 2026 astatine 10:03 AM CST 10 min read

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Monday, July 29, 2024 astatine 10:00 a.m. ET

• Chief Executive Officer — Martin Kay

• Chief Financial Officer — Coreen Kraysler

With that said, I’d similar to present crook to our fiscal results for the full-year fiscal 2024. Revenues for fiscal 2024 decreased by $3,542,550 oregon 42% to $4,951,435, compared to $8,493,985 successful fiscal 2023. This diminution successful revenues was chiefly owed to a alteration successful consulting services for equity securities which dropped by $3,665,000 oregon 52% to $3.44 cardinal successful fiscal 2024, arsenic compared to $7.1 cardinal successful the erstwhile year. The aggregate alteration of astir $3.7 cardinal successful consulting services for equity securities successful fiscal 2024 occurred due to the fact that we provided consulting services to lone 3 companies successful fiscal 2024, arsenic compared to six companies successful fiscal 2023.

We strive to supply much than $1 cardinal worthy of consulting services to this benignant of client. And the mean interest that we earned per lawsuit successful fiscal 2024 and 2023 amounted to $1,146,667 and $1,184,167 respectively. These services are provided by our consulting subsidiary, Netcapital Advisors, and Advisors did not [discern] (ph) immoderate equity securities from consulting enactment successful the 4th fourth of fiscal 2024. Our subsidiary, Netcapital Funding Portal Inc. introduced a 1% interest connected the equity raised by issuers utilizing the backing portal. In fiscal 2024, the backing portal earned equity securities from 30 clients with a full worth of $97,700, arsenic compared to $0.00 successful the erstwhile fiscal year.

Our outgo of revenues accrued by $23,000 oregon 27% to astir $108,000 successful fiscal 2024, from astir $85,000 successful fiscal 2023. The summation is attributable to the backing portal which saw a emergence successful gross from portal fees to $874,368 successful fiscal 2024. We recognized an unrealized nonaccomplishment successful the worth of our equity securities of astir $2.7 cardinal successful fiscal 2024, arsenic compared to unrealized gains of astir $1.9 cardinal successful the worth of our equity securities successful fiscal 2023. The nonaccomplishment successful fiscal 2024 was attributable to a alteration successful worth of our 3.2 cardinal shares of KingsCrowd communal banal from $1.00 per stock to $0.16 per share. We recorded an impairment nonaccomplishment of $1,048,430 successful fiscal 2024.

The nonaccomplishment successful fiscal 2024 consists of a simplification successful worth from $647,264 to $0 for the intangible assets we acquired successful the acquisition of MSG and a simplification successful worth from $401,167 to $0 for the intangible assets we ain that are associated with the website one-on-one stands. The idiosyncratic who operated MSG retired owed to wellness reasons during fiscal 2024, and we were unsuccessful successful transitioning the valuation consulting enactment performed by MSG to different person. We whitethorn proceed providing concern valuation services successful the future, but astatine this constituent successful time, we cannot property immoderate worth to the assets we purchased.