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NETCAPITAL INC. (NCPLW), a leading financial s ervices company, has released its financial results for the third quarter of 2023, reporting a net loss of $491,655. However, the company also revealed a significant increase in revenue compared to the same period last year.
NETCAPITAL INC. has published its financial statements for the third quarter of 2023, highlighting both its net income/loss and revenue figures. While the company reported a net loss of $491,655 for the quarter, its revenue experienced a notable upswing, reaching $1,519,809.
Condensed Consolidated Balance Sheets
As of July 31, 2023, NETCAPITAL INC. reported total assets of $43,434,434, up from $41,820,093 as of April 30, 2023. The company's asset growth was primarily driven by an increase in cash and cash equivalents, which rose to $1,030,618 from $569,441 during the same period.
Managing Current Liabilities
NETCAPITAL INC. also addressed its current liabilities, which decreased from $5,163,641 as of April 30, 2023, to $4,469,049 as of July 31, 2023. These current liabilities include accounts payable, accrued expenses, and various notes payable.
Condensed Consolidated Statements of Operations
Operating Income Affected
The company's third-quarter results indicated an operating loss of $749,020 compared to a profit of $6,670 during the same period in 2022. This decline can be attributed to increased expenses, including consulting expenses and marketing costs, totaling $2,250,776.
Other Income (Expense)
NETCAPITAL INC. faced interest expenses of $13,304 during the quarter, but it also recorded a gain of $224,260 from debt conversion. Additionally, there was an amortization of intangible assets and a realized loss on the sale of an investment, resulting in total other income (expense) of ($41,635).
The company's stockholders' equity grew from $36,156,452 as of April 30, 2023, to $38,465,385 as of July 31, 2023. This growth is attributed to the issuance of common stock, stock-based compensation, and other transactions.
Operating Activities
NETCAPITAL INC. reported a net loss of $491,655 for the third quarter of 2023. Adjustments to reconcile this loss included stock-based compensation of $483,351 and receipt of equity in lieu of cash, which contributed to a negative net cash flow from operating activities of ($1,464,023).
Financing Activities
During the quarter, the company received net cash inflow from financing activities of $1,925,200. This was primarily due to proceeds from the sale of common stock amounting to $2,275,200.
NETCAPITAL INC. also highlighted non-cash transactions, including the issuance of common stock for debt conversion and to purchase equity interests.
Despite reporting a net loss for the quarter, the company remains optimistic about its revenue growth, as evidenced by the significant increase in quarterly revenue. NETCAPITAL INC. continues to navigate its financial landscape with a focus on managing current liabilities and optimizing stockholders' equity.