Netcapital Inc. Price & Performance (NCPL)

Thank you, Tom. Good morning, everyone, and thank you for joining Capital's Third Quarter Fiscal twenty twenty five Financial Results Conference Call.

I'm Corine Kreisler, CFO of Net Capital Inc. And I will begin by reviewing our financial results and then our Chief Executive Officer, Martin Kay will share his prepared remarks before we open the Q and A portion of our call. Before we begin, I'd like to remind everyone of the safe harbor disclosure regarding forward looking information. Management's discussion may include forward looking statements. These statements relate to future events, or future financial performance, and involve known and unknown risks uncertainties and other factors that may cause actual results to be materially different from any future results.

Levels of activity, performance or achievements expressed or implied by these forward looking statements Any forward looking statement reflect management's current views with respect to operations, results of operations, growth strategy, liquidity and future events. Net Capital assumes no obligation to publicly update or revise these forward looking statements for any reason. Or to update the reasons actual results could differ materially from those anticipated in these forward looking statements, even if new information becomes available in the future. With that said, I'd like to now turn to our financial results for the second quarter fiscal twenty twenty five. Revenues for the three months ended 01/31/2025, decreased by $890,111 or approximately 85% to $152,000 $6.82 as compared to $1,000,000 42,007 and 93 during the three months ended 01/31/2024. The decline in revenue was attributed to the lack of consulting service revenue for equity securities in q three twenty twenty five. As compared to revenue of $862,346 for consulting services for equity securities in Q3 twenty twenty four. In fiscal twenty twenty five, management has focused on establishing our broker dealer subsidiary, to gain additional sources of revenue, and that we have not been pursuing the equity based revenue contracts. On 11/22/2024, we received FINRA approval for our broker dealer subsidiary Net Capital Securities Inc.

We reported an operating loss of $1,687,692 for the third fiscal twenty twenty third quarter fiscal twenty twenty five as compared to an operating loss of 1,205,001 and $57 for the third quarter of fiscal twenty twenty four. We reported a net loss for the third quarter fiscal twenty twenty five of approximately $3,000,000.06 $5.37 as compared to a net loss of approximately $2,200,000 for the same period in the prior year. Third quarter results reflect an impairment charge of $1,300,000 for one of our portfolio companies. We recorded a net loss per share of $1.57 EPS for the third quarter. Compared to EPS of a loss of $13.6 a share for the same period in the year. I'll now turn the call over to our CEO, Martin Kay.

Thank you, Corine, and thank you to all our shareholders for being on this call today. And for your continued interest and support of the company. As you heard from Corine, we did face a tough time during the quarter. From a revenue perspective, we had a decrease, which we already touched on And while I don't want to diminish this, I do want to look at a major success we had during the quarter with our wholly owned subsidiary Net Capital Securities, Inc, or NSI, becoming a broker dealer. During the year, as a company, we have shifted some focus towards the goal of establishing Netsap Capital Securities as a broker dealer. And we successfully completed this goal following approval by the Financial Industry Regulatory Authority or FINRA in November. NSI is now approved to do three things. First, handle private placements of securities as well as referral business. Second, support companies raising equity capital under Reg A and Reg D enabling larger fundraisers and potentially attracting a broader range of issuers? And thirdly, partnering with other broker dealers. Looking forward, we are pleased that Algernon Neuroscience Inc. Recently engaged Net Capital Securities for one of those planned Regulation A or Reg A offerings and to provide broker dealer and administrative services.

So although the market environment remains uncertain, management remains cautiously optimistic and we look forward to keeping you up updated on our progress. As always, thank you for your interest and support of Net Capital. And operator, we are ready for questions. Certainly.

Ladies and gentlemen, the floor is now open for questions. On your telephone keypad. We do ask that you pick up your handset while asking your question to provide optimal sound quality. And once again, as a final reminder, should you wish join the queue to ask a question, you may press star 1 at this time to join the queue. Once again, that'll And there are no questions in queue at this time. I would now like to turn the floor back to Martin Kay, for closing comments. Okay. Well, you, Tom, and thanks Corine, our CFO, and thank you all for joining. Again, for your continued interest and support of the company. Take care. Thank you.

Thank you.

This does conclude today's conference call. You may disconnect your lines at this time. And have a wonderful day. Thank you for your participation.