NCPL

Netcapital is a sub-$3M-market-cap Reg CF/Reg A crowdfunding portal in an outright liquidity crisis, and management says so in plain language: as of April 30, 2025 the company had negative working capital of $5,096,163, an $8.32M operating loss, and $5.34M of cash burned in operations, leading it to conclude 'these conditions raise substantial doubt about our ability to continue as a going concern.' That is not a valuation debate — it is a solvency question. Against $5.50M of current liabilities the company holds just $400K of current assets and $289K of cash (down 66.5% YoY), so it cannot fund another year of that burn without raising capital the filing admits 'may not be available to us on acceptable terms, or at all.'

The business itself is shrinking, not just the balance sheet. Revenue fell 82.4% to $869K, but the MD&A shows the reported drop understates the operating decay: FY2024's $4.95M was mostly $3.54M of equity-securities-for-services 'revenue' that did not recur, while the genuine cash engine — portal and listing fees — also deteriorated. Portal fees fell 33% as dollars invested through the platform dropped from $14.8M to $10.6M, and listing fees fell 53% as new listings collapsed from 82 to 38. Fewer issuers, less capital raised, lower take — the funnel is contracting at every stage. A 95.4% gross margin is meaningless when operating margin is -957% and the net margin is -3,255%.