Netcapital (Nasdaq: NCPL), a securities crowdfunding business, says it has received a delinquency notification from Nasdaq regarding its delayed annual report. Nasdaq requires firms to file timely earnings reports to maintain a listing.
Netcapital has been in the news recently because the Securities and Exchange Commission leveled fraud allegations against the firm.
Recently, the SEC enforcement division filed a complaint alleging that NetCapital improperly recorded $14 million in revenue. The filing claims that during the relevant period, NetCapital’s revenue was mostly derived from fraudulent portfolio consulting agreements. Around the same time, the company was reportedly seeking new investors. The complaint names several insiders, including John Fanning, an advisory board member of the company who is described as the creator of the Netcapital brand.
Netcapital has 60 calendar days from receipt of the notice, or until October 23, 2026, to submit a plan to regain compliance, which it intends to do.
Before the SEC complaint, Netcapital said it was evaluating actions to raise its share price above the $1 dollar/share listing requirement.
Netcapital shares trade around $0.67, but in recent days, trading volume has increased for the microcap, which has a market cap of around $5.3 million. Today, over 98 million shares have been traded. On August 25, almost 500 million shares traded.