The Conversation (0)
- Key milestones include acquisition of Iverson Design and signing PureWave Hydrogen as first tokenization client
- Management to host business update conference call tomorrow at 10:00 am ET
Netcapital Inc. (Nasdaq: NCPL, NCPLW, Netcapital) (the "Company"), a digital private capital markets ecosystem, today announced financial results and provided corporate highlights for the third quarter of fiscal 2026 ended January 31, 2026. In addition, management plans to host a business update conference call tomorrow, March 20, 2026, at 10:00 a.m. ET.
"We completed several key transactions in fiscal Q3 2026," said Rich Wheeless, Netcapital's Chief Executive Officer.
- "We partnered with Silicon Prairie Holdings Inc., which provides critical regulatory infrastructure in support of secondary trading of securities previously sold under various exemptions.
- We acquired Iverson Design, contributing proprietary AI-powered design and visualization technologies and marking an important step in our transformation into a tokenization and digital asset platform. In conjunction with this transaction, Michael Iverson came on board as Chief Design Director and Head of AI Experience, adding in-house capabilities spanning motion graphics, 3D visualization, real-time rendering, and investor presentation design.
- In addition, PureWave Hydrogen became our first tokenization client, expanding our potential revenue streams into real-world asset tokenization."
"We believe the strength of our platform and these and other investments position us for renewed growth, and to that end, I'm pleased to report fiscal Q3 2026 revenues increased from fiscal Q2 2026. We also gained traction at our broker-dealer, which signed four new clients during the quarter. With the business carrying gross margins consistently above 90% and highly scalable infrastructure in place, I'm laser-focused on driving increasing and new revenue streams with the goal of improving our bottom-line results in the coming quarters," added Wheeless.
Third Quarter Fiscal 2026 Financial Highlights:
- Total revenues were $94,347 compared to $152,682 in the prior-year quarter, primarily reflecting lower funding portal activity.
- Operating loss was $2,174,335, compared to an operating loss of $1,687,692 in the year ago period.
- Net loss was ($0.32) per basic and diluted share, compared to a net loss of ($1.57) per basic and diluted share in the year ago period.
- Cash and cash equivalents at January 31, 2026 of $715,443, up from $289,428 at April 30, 2025.
Conference Call Information
The Company will host an investor conference call on March 20, 2026, at 10:00 a.m. ET.
Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 430260
For additional disclosure regarding Netcapital's operating results, please refer to the Quarterly Report on Form 10-Q for the three-month period ended January 31, 2026, which has been filed with the Securities and Exchange Commission.
About Netcapital Inc.
Netcapital Inc. is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company's funding portal, Netcapital Funding Portal, Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association. The Company's broker-dealer, Netcapital Securities Inc., is also registered with the SEC and is a member of FINRA.
Forward Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume 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.
Investor Contact
800-460-0815
ir@netcapital.com
Netcapital INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| January 31, 2026 (Unaudited) | April 30, 2025 (Audited) | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 715,443 | $ | 289,428 | ||||
| Accounts receivable, net | 1,231 | 78,649 | ||||||
| Other receivables | 11,671 | - | ||||||
| Prepaid expenses | 313,576 | 31,535 | ||||||
| Total current assets | 1,041,921 | 399,612 | ||||||
| Deposits | 6,300 | 6,300 | ||||||
| Notes receivable - related parties | 50,000 | 50,000 | ||||||
| Purchased technology, net | 19,151,139 | 14,697,529 | ||||||
| Equity securities at fair value | 5,810,495 | 5,748,050 | ||||||
| Total assets | $ | 26,059,855 | $ | 20,901,491 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,667,240 | $ | 2,941,108 | ||||
| Accrued expenses | 262,271 | 269,971 | ||||||
| Deferred revenue | 270 | 330 | ||||||
| Interest payable | 107,302 | 100,797 | ||||||
| Short-term promissory notes | - | 263,437 | ||||||
| Current portion of SBA loans | 1,893,357 | 1,885,800 | ||||||
| Loan payable - bank | 34,324 | 34,324 | ||||||
| Total current liabilities | 3,964,764 | 5,495,767 | ||||||
| Long-term liabilities: | ||||||||
| Long-term SBA loans, less current portion | 492,443 | 500,000 | ||||||
| Total liabilities | 4,457,207 | 5,995,767 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares outstanding | - | - | ||||||
| Common stock, $.001 par value; 900,000,000 shares authorized, 6,847,899 and 2,192,226 shares issued and outstanding | 6,848 | 2,192 | ||||||
| Shares to be issued | - | 200,000 | ||||||
| Capital in excess of par value | 57,001,947 | 42,525,294 | ||||||
| Retained earnings (deficit) | (35,406,147 | ) | (27,821,762 | ) | ||||
| Total stockholders' equity | 21,602,648 | 14,905,724 | ||||||
| Total liabilities and stockholders' equity | $ | 26,059,855 | $ | 20,901,491 | ||||
Netcapital INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
| January 31, 2026 | January 31, 2025 | January 31, 2026 | January 31, 2025 | |||||||||||||
| Revenue | $ | 94,347 | $ | 152,682 | $ | 335,481 | $ | 465,437 | ||||||||
| Cost of revenue | 1,823 | 7,155 | 11,109 | 37,156 | ||||||||||||
| Gross profit | 92,524 | 145,527 | 324,372 | 428,281 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Consulting expense | 268,032 | 63,555 | 428,718 | 240,581 | ||||||||||||
| Marketing | 4,984 | 12,887 | 14,839 | 31,993 | ||||||||||||
| Rent | 21,300 | 20,178 | 65,452 | 58,736 | ||||||||||||
| Payroll and payroll related expenses | 1,097,998 | 815,024 | 3,747,881 | 2,701,318 | ||||||||||||
| General and administrative costs | 874,545 | 921,575 | 3,646,922 | 3,794,013 | ||||||||||||
| Total costs and expenses | 2,266,859 | 1,833,219 | 7,903,812 | 6,826,641 | ||||||||||||
| Operating loss | (2,174,335 | ) | (1,687,692 | ) | (7,579,440 | ) | (6,398,360 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (24,076 | ) | (10,376 | ) | (72,347 | ) | (30,441 | ) | ||||||||
| Interest income | 630 | 400 | 11,671 | 1,200 | ||||||||||||
| Impairment expense | - | (1,300,000 | ) | - | (1,300,000 | ) | ||||||||||
| Loss on debt conversion | (10,815 | ) | - | (10,815 | ) | - | ||||||||||
| Amortization of intangible assets | (54,298 | ) | (8,869 | ) | (72,036 | ) | (26,607 | ) | ||||||||
| Unrealized loss on equity securities, net | (49,950 | ) | - | (5,005 | ) | - | ||||||||||
| Insurance recovery | 500,000 | - | 500,000 | - | ||||||||||||
| Accretion of short-term notes | - | - | (356,413 | ) | - | |||||||||||
| Total other income (expense) | 361,491 | (1,318,845 | ) | (4,945 | ) | (1,355,848 | ) | |||||||||
| Net loss before taxes | (1,812,844 | ) | (3,006,537 | ) | (7,584,385 | ) | (7,754,208 | ) | ||||||||
| Income tax expense (benefit) | - | - | - | - | ||||||||||||
| Net loss | $ | (1,812,844 | ) | $ | (3,006,537 | ) | $ | (7,584,385 | ) | $ | (7,754,208 | ) | ||||
| Basic loss per share | $ | (0.32 | ) | $ | (1.57 | ) | $ | (1.71 | ) | $ | (6.93 | ) | ||||
| Diluted loss per share | $ | (0.32 | ) | $ | (1.57 | ) | $ | (1.71 | ) | $ | (6.93 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 5,612,356 | 1,915,367 | 4,432,039 | 1,119,479 | ||||||||||||
| Diluted | 5,612,356 | 1,915,367 | 4,432,039 | 1,119,479 | ||||||||||||
