Netcapital Inc. Q1 FY2025 earnings call

• Beta version launch of secondary trading platform through the Templum ATS, with Templum ATS approved in over 50 U.S. states and territories. • Application for broker-dealer registration with FINRA to offer Reg A+ and Reg D deals and form broker-dealer partnerships. • Put in place an ATM agreement and regained compliance with NASDAQ's Listing Rule 5550(a)(2) to continue trading on NASDAQ. • Focus on empowering entrepreneurs and investors by providing a streamlined platform for capital raising and investing in early-stage and growth-stage companies.

For the first quarter of fiscal 2025, revenues decreased by almost $1.4 million or approximately 91% to $142,227 compared to approximately $1.5 million in the first quarter of 2024. Total funding portal revenues declined by $233,800 or approximately 62% to $242,056. Portal fees decreased by $132,427 or approximately 60% to $89,429. Listing fees decreased by $111,500 or approximately 72% to $42,500. The operating loss for the first quarter of fiscal 2025 was approximately $2.5 million compared to an operating loss of $749,020 in the first quarter of fiscal 2024. The net loss was $2,527,170 compared to $491,665 in the prior year period.

• Hoping to launch the secondary trading platform before the end of the calendar year, but regulatory factors may affect timing. • Committed to long-term vision of creating an inclusive financial ecosystem benefiting issuers and investors.

• Cyclicality in fundraising, with the climate for fundraising slowing down during summertime. • Loss of an experienced salesperson contributing to the decline in listing fees. • Regulatory factors that could impact the launch and operation of the secondary trading platform.

Q: Could you give us an idea of the launch date of the secondary trading portal where it will be fully available to retail investors?

A: We hope to launch before the end of this calendar year, but regulatory factors are somewhat beyond our control.

Q: On your ATM, do you intend to do a press release as you partially complete that or only when it's totally complete?

A: We do not put out a press release or 8-K when we use the ATM; we disclose ATM usage in quarterly filings.

Q: At the current stock price, why is management and the Board of Directors not really stepping up to buy the shares to support the company at this time?

A: We're severely restricted in what we can do in terms of management purchasing shares due to the nature of the fundraising we have been doing.

Q: What is your monthly burn rate?

A: Our burn rate is $300,000 plus a month.