Netcapital Inc.

Good day, everyone, and welcome to the NetCapital, Inc. Quarterly Earnings Call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Corrine Kressler. Ma'am, the floor is yours.

Thank you, Matt. Good morning, everyone, and thank you for joining NetCapital's first quarter fiscal 2025 financial results conference calls. This is Corrine Kreisler, CFO of NetCapital, Inc. I will begin with a review of our financial results. Following that, our Chief Executive Officer, Martin Kay, will deliver his prepared remarks before we open up the Q&A portion of our call. Before we begin, I'd like to draw your attention to the customary Safe Harbor disclosure regarding forward-looking information. Management 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 statements reflect management's current views with respect to operations, results of operations, growth strategy, liquidity, and future events. NetCapital 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 first quarter of fiscal 2025. Revenues for the first quarter of fiscal 2025 for the period ending July 31st, 2024 decreased by almost 1.4 million or approximately 91% to $142,227 compared to approximately 1.5 million in the first quarter of 2024. The decline in revenues was primarily attributed to a decrease in revenues for the services that we provide in exchange for equity securities during the quarter. We had no revenues from equity-based contracts, as compared to over $1.1 million in such revenues in the three months ended July 31, 2023. We are focusing on establishing a broker-dealer subsidiary so that the company may have additional sources of revenue, and we have not been pursuing equity-based revenue contracts. Total funding portal revenues declined by $233,800, or approximately 62%, to $242,056 during the first quarter of fiscal 2025. Total funding portal revenues consist of portal fees, listing fees, and a 1% equity fee. Revenue from portal fees decreased by $132,427 or approximately 60% in the three months ended July 31st, 2024 to $8,429 from $221,856 in the three months ended July 31st, 2023. Revenues from portal fees consist of a 4.9%

fee of the total capital raised by an issuer plus fixed miscellaneous charges such as a rolling close or the filing of an amended offering statement.