Netcapital Inc (NCPL) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome the Netcapital fiscal 2023 second-quarter earnings conference call. (Operator Instructions)

女士們，先生們，早上好，歡迎召開Netcapital 2023財年第二季度財報電話會議。 （操作員說明）

It's now my pleasure to turn the floor over to your host, Coreen Kraysler, CFO of Netcapital. Coreen, the floor is yours.

現在我很高興將發言權交給主持人，Netcapital 的首席財務官 Coreen Kraysler。 Coreen，地板是你的。

Thank you, Jenny. Good morning, everybody, and thank you for joining Netcapital's financial results conference call for the second quarter of fiscal 2023 ended October 31, 2022. This is Coreen Kraysler, CFO of Netcapital Inc. I will begin with a review of our financial results. Jason Frishman, CEO of Netcapital Funding Portal, will follow with an update on our platform; and Cecilia Lenk, CEO of Netcapital Inc., will discuss the recent addition to our Board of Directors.

謝謝你，珍妮。大家早上好，感謝大家參加Netcapital截至2022年10月31日的2023財年第二季度財務業績電話會議。我是Netcapital Inc.的首席財務官Coreen Kraysler。我將首先回顧一下我們的財務業績。 Netcapital Funding Portal 首席執行官 Jason Frishman 將跟進我們平台的更新；和 Cecilia Lenk，Netcapital Inc. 的首席執行官，將討論最近加入我們董事會的人。

Before we begin, I'd like to call your attention to the customary Safe Harbor disclosure regarding forward-looking information. Management's discussion may include forward-looking statements. These statements relate to future events or to 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.

在我們開始之前，我想提請您注意有關前瞻性信息的慣例安全港披露。管理層的討論可能包括前瞻性陳述。這些陳述與未來事件或未來財務業績有關，涉及已知和未知的風險、不確定性和其他可能導致實際結果與這些陳述或暗示的任何未來結果、活動水平、業績或成就大不相同的因素前瞻性陳述。

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 to actual results [could] differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

任何前瞻性陳述都反映了管理層當前對運營、運營結果、增長戰略、流動性和未來事件的看法。 Netcapital 沒有義務以任何理由公開更新或修改這些前瞻性陳述，或將原因更新為實際結果 [可能] 與這些前瞻性陳述中預期的結果大不相同，即使未來有新信息可用。

I'll begin now with a review of our financial results for the second quarter of fiscal 2023. We had a particularly strong quarter for our consulting services for equity securities. Led by this revenue expansion, total revenues increased 48% year over year over year to $1.8 million compared to $1.2 million in the year ago quarter, and we generated positive operating income for the second quarter compared to an operating loss of $325,000 in the year ago quarter.

我現在開始回顧我們 2023 財年第二季度的財務業績。我們在股票證券諮詢服務方面的表現尤其強勁。在收入擴張的帶動下，總收入同比增長 48% 至 180 萬美元，而去年同期為 120 萬美元，我們第二季度的營業收入為正，而去年同期的營業虧損為 325,000 美元四分之一。

Net income for the second quarter was $183,000 compared to a net loss of $274,000 in the second quarter of fiscal 2022. Diluted earnings per share for the second quarter were $0.04 per share compared to a loss per share of $0.10 in the year ago quarter.

第二季度淨收入為 183,000 美元，而 2022 財年第二季度淨虧損為 274,000 美元。第二季度攤薄後每股收益為 0.04 美元，而去年同期每股虧損為 0.10 美元。

For the six months of fiscal year 2023, revenue increased 71% year over year to $3.1 million. Net capital generated positive operating income compared to an operating loss of $1.4 million in the first six months of fiscal year 2022. Diluted earnings per share of $0.07 compared to a loss per share of $0.47 in the first six months of fiscal year 2022.

在 2023 財年的六個月中，收入同比增長 71% 至 310 萬美元。與 2022 財年前六個月 140 萬美元的運營虧損相比，淨資本產生了正的營業收入。與 2022 財年前六個月的每股虧損 0.47 美元相比，攤薄每股收益為 0.07 美元。

At October 31, 2022, we had cash and cash equivalents of $1.6 million as compared to $474,000 at April 30, 2022. As of July 30 -- as of October 31, 2022, equity securities at fair value totaled $15.1 million compared to $12.9 million at April 30, 2022.

截至 2022 年 10 月 31 日，我們的現金和現金等價物為 160 萬美元，而 2022 年 4 月 30 日為 474,000 美元。截至 7 月 30 日 - 截至 2022 年 10 月 31 日，按公允價值計算的股本證券總額為 1510 萬美元，而 1290 萬美元2022 年 4 月 30 日。

I'll now turn the call over to Jason Frishman, CEO of the Netcapital Funding Portal. Jason?

我現在將電話轉給 Netcapital Funding Portal 的首席執行官 Jason Frishman。傑森？

Thank you, Coreen. We have hosted many exciting offerings this year, and we've featured a number of them in press releases over the past six months.

謝謝你，科林。今年我們舉辦了許多激動人心的活動，並且在過去六個月中我們在新聞稿中介紹了其中的一些活動。

Some examples include lithium start-up EnergyX, which completed two rounds of financing with us and recently received a $450 million investment commitment from private equity firm Global Emerging Markets Group, or GEM. Vantem Global, a start-up that was among the first client of Netcapital Advisors, completed a round of financing through Netcapital Funding Portal. Vantem Global is now backed by Bill Gates' energy fund, Breakthrough Energy Ventures.

一些例子包括鋰初創企業 EnergyX，它與我們完成了兩輪融資，最近獲得了私募股權公司 Global Emerging Markets Group（簡稱 GEM）的 4.5 億美元投資承諾。作為Netcapital Advisors首批客戶之一的初創企業Vantem Global通過Netcapital Funding Portal完成了一輪融資。 Vantem Global 現在得到比爾蓋茨的能源基金 Breakthrough Energy Ventures 的支持。

Multiple offerings raised more than $1 million in the past six months, including KMX Technologies and Avadain. And we've previously discussed MAGFAST, a developer of premium wireless magnetic chargers. MAGFAST has previously sold out two offerings on the Netcapital platform and have relaunched a new offering in the last few months.

在過去六個月中，多項產品籌集了超過 100 萬美元，其中包括 KMX Technologies 和 Avadain。我們之前討論過 MAGFAST，這是一家高級無線磁力充電器開發商。 MAGFAST 此前在 Netcapital 平台上售罄了兩款產品，並在過去幾個月重新推出了一款新產品。

These are some of the success stories we are privileged to support through our digital private market ecosystem. One of our missions as a business is to mentor and support entrepreneurs in their journeys and it's truly rewarding to see the start-ups on our platform that succeeded in attracting subsequent funding as they build, expand and prosper. We continue to see our business grow stronger during even tough economic climates.

這些是我們有幸通過我們的數字私人市場生態系統支持的一些成功案例。作為一家企業，我們的使命之一是在創業過程中指導和支持創業者，看到我們平台上的初創企業在建立、擴張和繁榮的過程中成功吸引到後續資金，真是令人欣慰。即使在艱難的經濟環境下，我們也繼續看到我們的業務發展壯大。

I will now turn the call over to Dr. Cecilia Lenk, Chairman of the Board and CEO of Netcapital Inc.

我現在將把電話轉給Netcapital Inc. 董事會主席兼首席執行官Cecilia Lenk 博士。

Thank you, Coreen and Jason. It is with great pleasure that we recently welcomed Arnie Scott to our Board of Directors. Arnie has been involved in Netcapital as an investor and adviser since our inception. He is an accomplished business leader and corporate governance expert with 15 years of experience as a director and chair on various corporate and advisory boards. He is deeply skilled in start-up businesses, venture capital, business strategy, executive management, and entrepreneurship, all of which are fundamental to the services we provide in private capital markets and strategic advisory.

謝謝 Coreen 和 Jason。我們最近非常高興地歡迎 Arnie Scott 加入我們的董事會。自 Netcapital 成立以來，Arnie 一直作為投資者和顧問參與其中。他是一位成就卓著的商業領袖和公司治理專家，擁有 15 年擔任各種公司和諮詢委員會董事和主席的經驗。他精通初創企業、風險投資、商業戰略、執行管理和創業，所有這些都是我們在私人資本市場和戰略諮詢中提供的服務的基礎。

As an active participant in the [angel] investing community of Greater Boston for more than 10 years, Mr. Scott currently serves as a founding member of the Private Directors Association.

作為大波士頓地區 [天使] 投資社區的積極參與者超過 10 年，Scott 先生目前是私人董事協會的創始成員。

Previously, he has served as a member of the Board of Trustees for Alderson Broaddus University and is Vice Chairman of First Commons Bank, Chairman of Asset Link International, and Director for Sevo Nutraceuticals, Pneuron Corp., and Hub Management Company. He has also served on a number of advisory boards, including Vestmark, Successimo, ai Resources and The Capital Network.

此前，他曾擔任 Alderson Broaddus 大學董事會成員，First Commons Bank 副董事長、Asset Link International 董事長，以及 Sevo Nutraceuticals、Pneuron Corp. 和 Hub Management Company 的董事。他還曾在多個諮詢委員會任職，包括 Vestmark、Successimo、ai Resources 和 The Capital Network。

Mr. Scott served for over 30 years at MFS Investment Management and retiring as Senior Executive Vice President in 2001. Arnie, we are so delighted to have you join us.

Scott 先生在 MFS Investment Management 工作了 30 多年，並於 2001 年從高級執行副總裁的職位上退休。Arnie，我們很高興你能加入我們。

We are very pleased with our company's performance to date and strong first half of fiscal year 2023. We thank you for your interest in investment in Netcapital and look forward to delivering continuing growth in the future.

我們對公司迄今為止的業績以及 2023 財年上半年的強勁表現感到非常滿意。我們感謝您對投資 Netcapital 的興趣，並期待在未來實現持續增長。

Operator, we are now ready to take questions.

接線員，我們現在準備好接受提問了。

(Operator Instructions) Mark Nelson, Nelson Inc.

（操作員說明）Mark Nelson, Nelson Inc.

Hello. How are you doing today? Thank you for taking time. I have two questions today. What are some of the primary factors that have led to your ability to become profitable so far in this quarter?

你好。你今天怎麼樣？感謝您抽出時間。我今天有兩個問題。到目前為止，導致貴公司能夠在本季度盈利的主要因素有哪些？

Do you want to ask your second question as well?

你也想問你的第二個問題嗎？

Sure. The second question will be, can you provide a progress update on providing a secondary market for the securities that you've already raised on the new platform?

當然。第二個問題是，您能否提供有關為您已經在新平台上籌集的證券提供二級市場的最新進展？

Sure. I will take the first question and I will let Jason take the second question. So we had a good quarter in the consulting business, and we had a large contract with an equity portfolio company, and that led to the profitability in the quarter. Jason, do you want to take the second question?

當然。我將回答第一個問題，我會讓 Jason 回答第二個問題。因此，我們在諮詢業務中有一個很好的季度，我們與一家股權投資組合公司簽訂了一份大合同，這導致了該季度的盈利。傑森，你想回答第二個問題嗎？

Yeah, I'm happy to. Mark, Thanks for the questions. I can't provide a specific comment at this time, but I can tell you that it is very important to us to solve for the problem with respect to providing liquidity through an ATS or alternative trading system. That is something that is important to us and something that we view as important on our path to growth, but I can't provide a specific comment at this time.

是的，我很樂意。馬克，謝謝你的問題。我現在不能提供具體評論，但我可以告訴你，解決通過 ATS 或替代交易系統提供流動性方面的問題對我們來說非常重要。這對我們很重要，也是我們認為在我們的增長道路上很重要的事情，但我目前無法提供具體評論。

So I will just follow up with that by saying that it's very high up on our radar screen.

因此，我將繼續跟進，說它在我們的雷達屏幕上非常重要。

Thank you very much.

非常感謝。

Thank you. Next question, operator.

謝謝。下一個問題，接線員。

[Frank Dapper], private investor.

[Frank Dapper]，私人投資者。

I think Mark kind of asked the other question I had. I guess the only other question I have is the equities that you guys hold, do you have a facility to turn that into cash if you needed to?

我認為馬克問了我的另一個問題。我想我唯一的另一個問題是你們持有的股票，如果需要的話，你們有辦法把它變成現金嗎？

So I assume that you are talking about the investment portfolio that we hold, which are equity securities and private companies. And we do intend to monetize those over time and there are several ways that we can do that.

所以我假設你在談論我們持有的投資組合，即股票證券和私人公司。我們確實打算隨著時間的推移將這些貨幣化，我們有幾種方法可以做到這一點。

One is by selling specific portions, subset portions of those or total portions to other private investors. And we have had interest from time to time expressed in some of those companies that we own. And another path to monetization would IPO-ing those companies, which is certainly also on our radar screen as well.

一種是將特定部分、這些部分的子部分或全部部分出售給其他私人投資者。我們不時對我們擁有的一些公司表達了興趣。另一種貨幣化途徑是對這些公司進行 IPO，這當然也在我們的雷達屏幕上。

Okay. Thank you so much.

好的。太感謝了。

Thank you very much, ladies and gentlemen. (Operator Instructions)

女士們先生們，非常感謝你們。 （操作員說明）

We don't appear to have any further questions. I will now hand back over to Coreen for any closing remarks.

我們似乎沒有任何進一步的問題。我現在將把結束語交還給 Coreen。

All right. Thank you very much. Thank you, everyone, so much for joining us today. We're very pleased with the results that we have demonstrated so far, and we appreciate your interest in Netcapital. And we wish you all very happy and healthy holiday season. Thank you.

好的。非常感謝。非常感謝大家今天加入我們。我們對迄今為止所展示的結果感到非常滿意，感謝您對 Netcapital 的關注。我們祝大家節日快樂、身體健康。謝謝。

Ladies and gentlemen, thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

女士們，先生們，非常感謝你們。這確實結束了今天的電話會議。此時您可以斷開電話線，度過美好的一天。感謝您的參與。