Netcapital (US:NCPL)2021-08-31 20:28Revenue Growth - Revenues for fiscal 2021 increased by $2,967,445, or 169%, to $4,721,003 compared to $1,753,558 in fiscal 2020, primarily driven by expanded consulting services[85]. Cost and Expenses - Costs of revenues rose by $748,053, or 6,736%, to $759,158 in fiscal 2021 from $11,105 in fiscal 2020, due to increased revenues and a change in product development strategy[86]. - Stock-based compensation increased by $324,359, or 91%, to $680,611 for fiscal 2021 from $356,252 in the prior year, influenced by higher share prices and new hires[87]. - General and administrative expenses surged by $392,208, or 539%, to $464,955 for the year ended April 30, 2021, primarily due to legal costs and software fees[90]. Cash Flow and Working Capital - As of April 30, 2021, cash and cash equivalents were $2,473,959, with negative working capital of $4,666,833, compared to $11,206 and negative working capital of $1,057,581 as of April 30, 2020[94]. - Net cash used in operating activities amounted to $3,250,868 in fiscal 2021, compared to $3,604 in fiscal 2020, with significant unrealized gains and increases in accounts receivable[97]. - Net cash provided by financing activities totaled $5,471,596, including $4,271,600 from loans and $1,199,996 from stock subscriptions[100]. - The company anticipates a $1.8 million SBA loan will be forgiven, and it raised an additional $300,000 from stock sales in May 2021[95]. - The company has no off-balance sheet arrangements, indicating a straightforward financial structure[109]. Market Trends - The pandemic has driven an increase in online investing, with regular monthly increases in users and dollars invested[96].