Summary by Moomoo AI
Netcapital Inc. reported significant revenue decline for Q1 FY2025 ended July 31, 2024, with total revenue dropping 91% to $142,227 from $1.52 million in the same period last year. The decrease was primarily attributed to reduced equity-based consulting revenues, while portal fees declined 60% to $89,429. The company's operating loss widened to $2.51 million from $749,020 year-over-year.The company's financial position has deteriorated, with negative working capital of $2.51 million as of July 31, 2024. Management has implemented cost-reduction measures, including layoffs and reduced operating expenses, while focusing on the funding portal business. The company is seeking additional capital through private placements, public offerings, and bank financing to support operations.In recent developments, Netcapital regained Nasdaq compliance following a 1-for-70 reverse stock split effective August 1, 2024. The company entered into an At-The-Market offering agreement with H.C. Wainwright & Co. for up to $2.1 million in August 2024, and its subsidiary Netcapital Securities Inc. has applied for broker-dealer registration with FINRA to potentially expand revenue streams.
