Netcapital Inc. Files Q1 FY25 10-Q
Ticker: NCPLW · Form: 10-Q · Filed: Sep 16, 2024 · CIK: 1414767
| Field | Detail |
|---|---|
| Company | Netcapital INC. (NCPLW) |
| Form Type | 10-Q |
| Filed Date | Sep 16, 2024 |
| Risk Level | low |
| Pages | 15 |
| Reading Time | 18 min |
| Key Dollar Amounts | $0.001 |
| Sentiment | neutral |
Sentiment: neutral
Topics: 10-Q, quarterly-report, finance-services
Related Tickers: NCPL
TL;DR
Netcapital Inc. 10-Q filed for Q1 FY25 ending 07/31/24.
AI Summary
Netcapital Inc. filed its 10-Q for the period ending July 31, 2024. The company, formerly ValueSetters Inc., is based in Boston, MA, and operates in finance services. The filing covers the first quarter of their fiscal year 2025, which began on May 1, 2024.
Why It Matters
This filing provides investors with an update on Netcapital Inc.'s financial performance and operational status for the first quarter of its fiscal year 2025.
Risk Assessment
Risk Level: low — This is a routine quarterly filing and does not contain immediate, significant risk-altering information.
Key Players & Entities
- Netcapital Inc. (company) — Filer
- ValueSetters Inc. (company) — Former company name
- Boston, MA (location) — Business Address
- 02111 (location) — Business ZIP Code
- 0430 (date) — Fiscal Year End
- 20240731 (date) — Period of Report End Date
- 20240916 (date) — Filing Date
FAQ
What is the reporting period for this 10-Q filing?
The Conformed Period of Report is 20240731, indicating the filing covers the period ending July 31, 2024.
What was Netcapital Inc.'s former company name?
Netcapital Inc. was formerly known as ValueSetters Inc. and ValueSetters Corp.
Where is Netcapital Inc. headquartered?
Netcapital Inc.'s business address is 1 Lincoln Street, Boston, MA 02111.
When does Netcapital Inc.'s fiscal year end?
Netcapital Inc.'s fiscal year ends on 0430.
What is the SEC file number for Netcapital Inc.?
The SEC file number for Netcapital Inc. is 001-41443.
Filing Stats: 4,399 words · 18 min read · ~15 pages · Grade level 16.7 · Accepted 2024-09-16 16:01:29
Key Financial Figures
- $0.001 — ch registered Common Stock, par value $0.001 per share NCPL The Nasdaq Stock Mar
Filing Documents
- form10-q.htm (10-Q) — 951KB
- ex31-1.htm (EX-31.1) — 18KB
- ex31-2.htm (EX-31.2) — 18KB
- ex32-1.htm (EX-32.1) — 9KB
- ex32-2.htm (EX-32.2) — 9KB
- 0001493152-24-036373.txt ( ) — 5561KB
- ncpl-20240731.xsd (EX-101.SCH) — 45KB
- ncpl-20240731_cal.xml (EX-101.CAL) — 47KB
- ncpl-20240731_def.xml (EX-101.DEF) — 206KB
- ncpl-20240731_lab.xml (EX-101.LAB) — 358KB
- ncpl-20240731_pre.xml (EX-101.PRE) — 291KB
- form10-q_htm.xml (XML) — 752KB
—FINANCIAL INFORMATION
PART I—FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements. 5 Condensed Consolidated Balance Sheets as of July 31, 2024 (unaudited) and April 30, 2024 5 Condensed Consolidated Statements of Operations for the three months ended July 31, 2024 and 2023 (unaudited) 6 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended July 31, 2024 and the year ended April 30, 2024 (unaudited) 7 Condensed Consolidated Statements of Cash Flows for the three months ended July 31, 2024 and 2023 (unaudited) 8 Notes to Unaudited Condensed Consolidated Financial Statements 9
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 24
Quantitative and Qualitative disclosures about Market Risk
Item 3. Quantitative and Qualitative disclosures about Market Risk. 31
Controls and Procedures
Item 4. Controls and Procedures. 31
—OTHER INFORMATION
PART II—OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings. 32 Item1A. Risk Factors. 32
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 34
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities. 34
Mine Safety Disclosures
Item 4. Mine Safety Disclosures. 34
Other Information
Item 5. Other Information. 34
Exhibits
Item 6. Exhibits. 34 Signatures. 35 -2- CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA This Quarterly Report on Form 10-Q contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by such forward-looking terminology as "may," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. Our forward-looking statements are based on a series of expectations, assumptions, estimates and projections about our company, are not guarantees of future results or performance and involve substantial risks and uncertainty. We may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements. Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including the risks and uncertainties inherent in our statements regarding: capital requirements and the availability of capital to fund our growth and to service our existing debt; difficulties executing our growth strategy, including attracting new issuers and investors; our anticipated use of the net proceeds from our recent public offering; economic uncertainties and business interruptions resulting from the coronavirus COVID-19 global pandemic and its aftermath; as restrictions related to the coronavirus COVID-19 global pandemic are removed and face-to-face economic activities normalize, it may be difficult for us to maintain the recent sales gains that we have experienced; all the risks of acquiring one
financial statements
financial statements. In March 2023, the FASB issued ASU 2023-01, which provides additional guidance on the accounting for leasehold improvements associated with leases and clarifies certain lessor transactions. The standard is effective for fiscal years beginning after December 15, 2023. The Company has evaluated the potential impact of this ASU on its financial statements and related disclosures. As the Company does not have any leases, we do not anticipate that the adoption of ASU 2023-01 will have a material impact on our financial position, results of operations, or cash flows. In June 2022, the FASB issued ASU 2022-03, which clarifies the guidance on the fair value measurement of equity securities that are subject to contractual sale restrictions. The standard provides specific guidance on measuring the fair value of these securities and requires additional disclosures. This ASU is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company has evaluated the impact of ASU 2022-03 and determined that it does not currently hold any equity securities subject to contractual sale restrictions. Therefore, the adoption of this standard is not expected to have a material impact on our financial position, results of operations, or cash flows. Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. -9- Note 2 – Concentrations For the three months ended July 31, 2024, the Company had one customer that constituted 15 % of revenues. For the three months ended July 31, 2023, the Company had one customer that constituted 37 % of revenues, and a second customer that constituted 37 % of revenues. Note 3 – Revenue Recognition Revenue Recognition under ASC 606 The Company recognizes service revenue