Investments

3 Months Ended

Jul. 31, 2025

Note 13 – Investments

During the three-month period ended July 31, 2025, the Company received equity securities from 3 issuers that completed securities offerings on the Netcapital Funding Portal. As part of its compensation structure, the Company receives a fee of 1% of the equity securities sold on the funding portal in addition to cash fees. As of July 31, 2025, the Company’s funding portal received equity fee payments from a total of 64 issuers, which have an aggregate value of $276,930, as compared to 61 issuers with an aggregate value of $169,790 as of April 30, 2025. In the three-month periods ending July 31, 2025 and 2024, the Company recorded $62,195 and $10,127 in revenues from the receipt of equity securities. In the three months ending July 31, 2025 the Company also recognized an unrealized gain of $44,945 from changes in observable prices of investment securities owned by the Company, as compared to no unrealized gains or losses in the three months ended July 31, 2024.

In May 2022, the Company received 1,764,706 units of Reper LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.68 per unit based on a sales price of $0.68 per unit on an online funding portal. The receipt of the units satisfied a receivable balance of $1,200,000. As of July 31, 2025 and April 30, 2025, the Company owned 1,764,706 units which are valued at $1,200,000.

In April 2022, the Company received 3,000,000 units of Cust Corp. as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.40 per unit based on a sales price of $0.40 per unit on an online funding portal. The receipt of the units satisfied a receivable balance of $1,200,000. As of July 31, 2025 and April 30, 2025, the Company owned 3,000,000 units which are valued at $1,200,000.

In January 2022, the Company received 1,700,000 units of ScanHash LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.25 per unit based on a sales price of $0.25 per unit on an online funding portal. The receipt of the units satisfied $425,000 of an accounts receivable balance. As of July 31, 2025 and April 30, 2025, the Company owned 1,700,000 units which are valued at $425,000.

In January 2022, the Company received 2,850,000 units of Hiveskill LLC as payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.25 per unit based on a sales price of $0.25 per unit on an online funding portal. The receipt of the units satisfied a receivable balance of $712,500. As of July 31, 2025 and April 30, 2024, the Company owned 2,850,000 units which are valued at $712,500.

In August 2019, the Company entered into a consulting agreement with KingsCrowd LLC, pursuant to which it earned 300,000 membership interest units in exchange for services. These units were valued at $1.80 per unit, totaling $540,000. In December 2020, KingsCrowd converted to a corporation and each membership interest unit converted into 12.71915 shares of common stock, resulting in the Company holding 3,815,745 shares. In June 2022, the Company sold 606,060 shares for proceeds of $200,000 and recognized a realized loss of $406,060. As of July 31, 2025 and April 30, 2025, the Company held 3,209,685 shares.

During fiscal 2024, KingsCrowd disclosed in regulatory filings that it sold shares at $0.16 per share. Based on this observable price change, the Company recorded an unrealized loss of $2,696,135 on its investment for the year ended April 30, 2024. In fiscal 2025, KingsCrowd completed a Regulation CF offering at $0.18 per share, resulting in an unrealized gain of $64,193. No other price changes have been observed. Accordingly, the Company valued its investment in KingsCrowd at $577,743 as of July 31, 2025 and April 30, 2025.

During fiscal 2019, the Company entered a consulting contract with Systems DE, which allowed the Company to receive up to 1,000 membership interest units of Systems DE in return for consulting services. The Company earned all 1,000 Systems DE units but sold 472 units in fiscal 2020. As of July 31, 2025 and April 30, 2024, the Company owned 528 Systems DE units, at a value of $1,985.

In July 2020 the Company entered a consulting agreement with Vymedic, Inc. for a $40,000 fee over a 5-month period. Half the fee was payable in stock and half was payable in cash. As of July 31, 2025 and April 30, 2024, the Company owned 4,000 units, at a value of $11,032.

In August 2020 the Company entered a consulting agreement with C-Reveal Therapeutics LLC (“CRT”). for a $120,000 fee over a 12-month period. $50,000 of the fee was payable in CRT units. As of July 31, 2025 and April 30, 2024, the Company owned 5,000 units, at a value of $50,000.

The following table summarizes the components of investments as of July 31, 2025 and April 30, 2025:

Schedule of Investments

	July 31, 2025		April 30, 2025

Systems DE	$	1,985	$	1,985
Zelgor Inc.		1,400,000		1,400,000
Vymedic Inc.		11,032		11,032
C-Reveal Therapeutics LLC		50,000		50,000
Cust Corp.		1,200,000		1,200,000
Hiveskill LLC		712,500		712,500
ScanHash LLC		425,000		425,000
Kingscrowd Inc.		577,743		577,743
Reper LLC		1,200,000		1,200,000
Issuers that paid a 1% equity fee to the funding portal		276,930		169,790
Total	$	5,855,190	$	5,748,050
Investment owned at cost	$	5,855,190	$	5,748,050

The above investments in equity securities are within the scope of ASC 321. The Company monitors the investments for any changes in observable prices from orderly transactions. All investments are initially measured at cost and evaluated for changes in estimated fair value.

- Definition

The entire disclosure for investments owned by investment company.

+ References + Details

Netcapital Inc. 10-Q