Financial Data and Key Metrics Changes - Revenues for the third quarter of fiscal 2026 were approximately $94,000, a decrease from approximately $153,000 in the same quarter of fiscal 2025, primarily due to a decrease in funding portal fees [3] - The company reported an operating loss of approximately $2.2 million compared to an operating loss of approximately $1.7 million for the third quarter of fiscal 2025 [4] - Loss per share was $0.32, an improvement from a loss per share of $1.57 in the third quarter of fiscal 2025 [4] - As of January 31, 2026, cash and cash equivalents stood at approximately $715,000 [4] Business Line Data and Key Metrics Changes - The funding portal is described as a technology business with a largely fixed cost structure, indicating that higher volume can lead to attractive incremental margins [5] - The company signed four new broker-dealer clients during the third quarter, indicating growth in its business lines [8] Market Data and Key Metrics Changes - The company is expanding into blockchain-enabled solutions, which is seen as a natural extension of its business [6][7] - The engagement with PureWave Hydrogen for tokenized asset issuance is viewed as a significant milestone, potentially leading to revenue-generating projects [9] Company Strategy and Development Direction - The company is focused on strengthening its technology foundation, improving operational efficiency, and supporting initiatives for future growth [5] - Strategic investments are being made to grow platform volume and leverage the broker-dealer to expand transaction opportunities [6] - The company aims to create a more efficient and accessible marketplace for issuers and investors while ensuring regulatory compliance [9] - The acquisition of Iverson Design's assets is expected to enhance in-house creative and product capabilities, crucial for the adoption of tokenization [10] Management's Comments on Operating Environment and Future Outlook - The CEO expressed confidence in the company's value proposition to help small businesses with financing needs and emphasized the importance of achieving sufficient scale for the underlying economics of the business model [5][6] - Management acknowledged that the company is still in a transition period, with the potential for future growth as the platform evolves [6] Other Important Information - The company is developing a proprietary application to streamline SEC EDGAR filings, which is expected to improve filing efficiency for issuers [12] - Marketing automation tools have been implemented to enhance communication and support scalable operations as the business grows [12] Q&A Session Summary - The conference call did not include a Q&A session, as the operator concluded the call without opening the floor for questions [15]

Core Insights - Netcapital Inc. reported financial results for Q3 fiscal 2026, highlighting a revenue increase compared to Q2 fiscal 2026 and the signing of four new clients at its broker-dealer [1][3]. Financial Performance - Total revenues for Q3 fiscal 2026 were $94,347, a decrease from $152,682 in the same quarter of the previous year, primarily due to lower funding portal activity [9][14]. - The operating loss for Q3 fiscal 2026 was $2,174,335, compared to an operating loss of $1,687,692 in the prior year [9][14]. - The net loss per share was ($0.32) for Q3 fiscal 2026, an improvement from a net loss of ($1.57) per share in the same quarter last year [9][14]. Corporate Developments - Key milestones included the acquisition of Iverson Design and the signing of PureWave Hydrogen as the first tokenization client, which is expected to expand revenue streams into real-world asset tokenization [7][8]. - The company partnered with Silicon Prairie Holdings Inc. to enhance regulatory infrastructure for secondary trading of securities [8]. Cash Position - Cash and cash equivalents as of January 31, 2026, were $715,443, an increase from $289,428 as of April 30, 2025 [9][12]. Operational Highlights - The company maintained gross margins consistently above 90% and emphasized a focus on driving new revenue streams to improve bottom-line results in upcoming quarters [3].

Core Viewpoint - Netcapital Inc. has engaged PureWave Hydrogen Corp. as its first issuer for tokenized assets, marking a significant step in its initiative to tokenize real-world assets and generate revenue [1][2]. Group 1: Engagement and Revenue Generation - The engagement with PureWave Hydrogen is seen as Netcapital's first potential revenue-generating initiative in real-world asset tokenization [2]. - The company aims to develop a repeatable template for future issuer engagements across various asset classes, applying a consistent fee structure and technology framework [2]. Group 2: Modernizing Capital Formation - Netcapital believes that this project illustrates how regulated digital infrastructure can enhance capital formation for asset-backed projects, allowing broader investor access [3]. - The company intends to enable project-level economic exposure for investors while ensuring compliance with applicable regulations and maintaining investor protections [3]. Group 3: Company Overview - Netcapital Inc. operates as a fintech company with a scalable technology platform that facilitates online capital raising for private companies and offers private equity investment opportunities [4]. - The company's funding portal is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) [4].

Core Insights - Netcapital Inc. reported its financial results for the second quarter of fiscal 2026, highlighting a significant decrease in total revenues compared to the previous year, primarily due to lower funding portal activity [3][9] - The company is expanding its offerings to include cryptocurrency and blockchain financing, aiming to attract new clients and diversify its revenue streams [2][8] - A recent strategic acquisition of Rivetz Corp. is expected to enhance Netcapital's capabilities in the blockchain space, positioning the company for future growth in the tokenized asset market [2][4] Financial Highlights - Total revenues for the second quarter were $51,076, down from $170,528 in the same quarter last year, reflecting a decrease of approximately 70% [9][14] - The operating loss was reported at $2,119,457, slightly improved from a loss of $2,202,431 in the prior-year quarter [9][14] - The net loss per share was ($0.44), compared to ($2.34) in the same period last year, indicating a significant reduction in losses [9][14] Balance Sheet Overview - As of October 31, 2025, cash and cash equivalents increased to $1,684,188 from $289,428 at April 30, 2025 [12] - Total assets rose to $25,439,398 from $20,901,491, indicating a growth in the company's asset base [12][13] - Total liabilities decreased to $4,002,600 from $5,995,767, reflecting improved financial health [12][13] Strategic Initiatives - The company plans to enhance its platform to facilitate online capital raising for private companies through cryptocurrency and blockchain financing [2][8] - The acquisition of Rivetz Corp. is aimed at integrating hardware-based cybersecurity with blockchain services, which is expected to drive long-term growth [4][2]