Netcapital Inc. Files Q2 FY25 10-Q Report

TL;DR

Netcapital Inc. 10-Q filed. Q2 FY25 data out. Check financials.

AI Summary

Netcapital Inc. filed its 10-Q for the period ending October 31, 2024, reporting on its financial performance. The filing covers the second quarter of fiscal year 2025, with financial data from May 1, 2024, to October 31, 2024, and comparative periods. The company, formerly ValueSetters Inc., is based in Boston, MA, and operates in the finance services sector.

Why It Matters

This filing provides investors with an update on Netcapital Inc.'s financial health and operational performance for the second quarter of fiscal year 2025, crucial for investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the company operates in the finance services sector which can be subject to market volatility and regulatory changes.

Key Numbers

• 2024-10-31 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-05-01 — Reporting Period Start Date (Indicates the beginning of the financial quarter being reported.)
• 0001414767 — Central Index Key (Unique identifier for Netcapital Inc. in SEC filings.)

Key Players & Entities

• Netcapital Inc. (company) — Filer of the 10-Q report
• October 31, 2024 (date) — End of the reporting period
• May 1, 2024 (date) — Beginning of the reporting period
• ValueSetters Inc. (company) — Former name of Netcapital Inc.
• Boston, MA (location) — Company's business address

FAQ

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) — 954KB
• 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
• 0001493152-24-050235.txt ( ) — 5464KB
• ncpl-20241031.xsd (EX-101.SCH) — 43KB
• ncpl-20241031_cal.xml (EX-101.CAL) — 50KB
• ncpl-20241031_def.xml (EX-101.DEF) — 197KB
• ncpl-20241031_lab.xml (EX-101.LAB) — 352KB
• ncpl-20241031_pre.xml (EX-101.PRE) — 283KB
• form10-q_htm.xml (XML) — 708KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. 5 Condensed Consolidated Balance Sheets as of October 31, 2024 (unaudited) and April 30, 2024 5 Condensed Consolidated Statements of Operations for the three and six months ended October 31, 2024 and 2023 (unaudited) 6 Condensed Consolidated Statements of Changes in Stockholders' Equity for the six months ended October 31, 2024 (unaudited) and the year ended April 30, 2024 7 Condensed Consolidated Statements of Cash Flows for the six months ended October 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. 23

Quantitative and Qualitative disclosures about Market Risk

Item 3. Quantitative and Qualitative disclosures about Market Risk. 29

Controls and Procedures

Item 4. Controls and Procedures. 29

—OTHER INFORMATION

PART II—OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 30 Item1A. Risk Factors. 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 31

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 32

Other Information

Item 5. Other Information. 32

Exhibits

Item 6. Exhibits. 33 Signatures. 34 -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

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View this 10-Q filing on SEC EDGAR