Netcapital Announces Third Quarter Fiscal 2025 Financial Results

Core Viewpoint - Netcapital Inc. reported a significant decline in revenue for the third quarter of fiscal year 2025, with a focus on establishing its wholly-owned broker-dealer subsidiary, which is expected to provide new revenue sources in the future [2][7]. Financial Performance - Revenue decreased approximately 85% year-over-year to $152,682, compared to $1,042,793 in the third quarter of fiscal year 2024 [7]. - Operating loss was ($1,687,692) in the third quarter of fiscal 2025, compared to ($1,205,157) for the same period in fiscal 2024 [7]. - Net loss was ($3,006,537) in the third quarter of fiscal 2025, compared to a net loss of ($2,227,542) for the same period in the prior year [7]. - Loss per share was ($1.57) in the third quarter of fiscal 2025, compared to a loss per share of ($13.60) for the same period in the prior year [7]. Balance Sheet Highlights - As of January 31, 2025, the company had cash and cash equivalents of $614,304, down from $863,182 as of April 30, 2024 [9]. - Total assets were $39,900,677 as of January 31, 2025, compared to $41,557,306 as of April 30, 2024 [9]. - Total liabilities increased to $4,930,412 as of January 31, 2025, from $3,616,698 as of April 30, 2024 [9]. Operational Insights - The company is focusing on its broker-dealer subsidiary, Netcapital Securities Inc., which was approved by FINRA in November 2024, aiming to enhance revenue streams [2]. - Algernon NeuroScience Inc. has engaged Netcapital Securities for a planned Regulation A offering, indicating potential future business opportunities [2].