EX-99.1 2 tm2527571d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

NETCLASS TECHNOLOGY INC Announces Earnings Results for the First Half of Fiscal Year 2025

 

SINGAPORE and HONG KONG, September 30, 2025 -- NETCLASS Technology INC (Nasdaq: NTCL; the “Company” or “NetClass”), a leading B2B smart education IT solutions provider with offices in Shanghai, Hong Kong, Singapore and Tokyo, today announced its unaudited condensed consolidated financial results which have not been reviewed by an independent certified public accountant for the six months ended March 31, 2025.

 

Financial Highlights for the First Half of Fiscal Year 2025

 

                %  
    2025   2024   Change   Change  
Revenues     3,654,410     3,766,192     (111,782)    (3.0) %
Cost of revenues     3,349,020     3,182,743     166,277   5.2 %
Gross profit     305,390     583,449     (278,059)     (47.7) %
Total operating expenses     5,488,125     2,818,410     2,669,715   94.7 %
Loss from operations     (5,182,735)     (2,234,961)     (2,947,774)   131.9 %
Loss before income taxes     (4,997,292)     (2,244,424)     (2,752,868)   122.7 %
Net loss     (4,897,965)     (2,065,011)     (2,832,954)   137.2 %
Comprehensive loss attributable to shareholders   $ (4,840,185)   $ (2,028,488)   $ (2,811,697)   138.6 %

 

Financial Results for the First Half of Fiscal Year 2025

 

Revenue

 

For the six months ended March 31, 2025, our total revenue was approximately $3.7 million compared to approximately $3.8 million for the six months ended March 31, 2024. The Company’s total revenue decreased by approximately $0.1 million, or 3.0%. The overall decrease in total revenue was attributable to approximately $0.2 million decrease in revenue from subscription services offset by $0.1 million increase in revenue from application development services.

 

Gross Profit

 

Our gross profit decreased by approximately $0.3 million or 47.7% from approximately $0.6 million for the six months ended March 31, 2024, to approximately $0.3 million for the six months ended March 31, 2025. Profit margin as a percent of overall revenue for the six months ended March 31, 2025 and 2024, was approximately 8.4% and 15.5%, respectively. The decrease in profit margin was due to the need to keep competitive price for customers despite cost increases.

 

 

 

 

Operating Expenses

 

Our operating expenses increased by approximately $2.7 million or 94.7% from approximately $2.8 million for the six months ended March 31, 2024, to approximately $5.5 million for the six months ended March 31, 2025. The increase in operating expenses is mainly due to an increase of marketing expenses, to promote of the Company’s brands and an increase of costs in technology upgrading and strategy consulting and business consulting after the Company’s initial public offering (“IPO”).

 

Net loss

 

As a result of the foregoing, our net loss increased by approximately $2.8 million, or 137.2%, from approximately $2.1 million net loss for the six months ended March 31, 2024, to approximately $4.9 million net loss for the six months ended March 31, 2025. The increase of net loss is mainly attributed to approximately $2.7 million increase in operating expenses and $0.3 million decrease of gross profit, offset by $0.2 million increase in net other income.

 

About NETCLASS TECHNOLOGY INC

 

NETCLASS TECHNOLOGY INC is a leading B2B smart education specialist with offices in Shanghai, Hong Kong, Singapore, and Tokyo, providing innovative IT solutions to schools, training institutions, corporations, public agencies, and other organizations. Our services include SaaS subscription services and application software development, with solutions spanning teaching and campus management, online teaching, examinations, epidemic prevention, data storage, EDC (Education Credit) blockchain systems, and lecturer evaluation services. Our mission is to deliver reliable, high-quality products that drive sustainable growth for our customers. For more information, please visit the Company’s website: https://ir.netclasstech.com

 

Safe Harbor Statement

 

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are not guarantee of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict and many of which are beyond the control of Netclass. Actual results may differ from those projected in the forward-looking statements due to risks and uncertainties, as well as other risk factors that are included in the Company’s filings with the U.S. Securities and Exchange Commission. Although Netclass believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized.  In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Netclass or any other person that their objectives or plans will be achieved. Netclass does not undertake any obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

 

For investor and media inquiries, please contact:

 

NETCLASS TECHNOLOGY INC

Investor Relations

Email: ir@netclasstech.com

 

Jackson Lin

Lambert by LLYC

Phone: +1 (646) 717-4593

Email: jian.lin@llyc.global

 

 

 

 

NETCLASS TECHNOLOGY INC

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. dollar, except for the number of shares)

 

   March 31,   September 30, 
   2025   2024 
   unaudited   audited 
ASSETS          
CURRENT ASSETS:          
Cash  $1,805,463   $410,716 
Restricted cash   504,058    4,564 
Accounts receivable, net   4,654,356    5,298,006 
Inventories, net   199,869    70,681 
Advances to vendors   1,645,537    1,124,030 
Prepayments and other current assets   441,534    40,990 
Deferred issuance costs   -    138,463 
TOTAL CURRENT ASSETS   9,250,817    7,087,450 
           
Property and equipment, net   32,764    39,707 
Long-term prepaid expenses, net   437,500    - 
Intangible assets, net   465,137    - 
Operating lease right of use assets   1,153,272    13,122 
Deferred tax assets, net   93,498    88,445 
TOTAL NONCURRENT ASSETS   2,182,171    141,274 
TOTAL ASSETS  $11,432,988   $7,228,724 
           
LIABILITIES AND EQUITY          
CURRENT LIABILITIES:          
Accounts payable  $1,766,033   $2,860,703 
Advance from customers   1,612,363    425,116 
Accrued expenses and other liabilities   393,648    297,360 
Due to related parties   157,114    228,951 
Taxes payable   310,233    341,217 
Operating lease liabilities, current portion   1,272    13,122 
TOTAL CURRENT LIABILITIES   4,240,663    4,166,469 
           
Long-term bank loan   372,070    - 
Operating lease liabilities, non-current portion   -    - 
TOTAL NON-CURRENT LIABILITIES   372,070    - 
           
TOTAL LIABILITIES   4,612,733    4,166,469 
           
COMMITMENTS AND CONTINGENCIES   -    - 
           
SHAREHOLDERS’ EQUITY:          
Ordinary shares, 200,000,000 shares authorized, consisting of 190,000,000 Class A ordinary shares of $0.00025 par value per share and 10,000,000 Class B ordinary shares of $0.00025 par value per share          
Class A Ordinary shares, 15,830,000 and 13,760,000 ordinary shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively   3,958    3,440 
Class B Ordinary shares, 2,000,000 ordinary shares issued and outstanding   500    500 
Additional paid in capital   13,285,824    4,821,992 
Statutory reserves   35,448    35,448 
Accumulated deficit   (6,528,896)   (1,704,065)
Accumulated other comprehensive loss   (201,488)   (186,134)
TOTAL SHAREHOLDERS’ EQUITY   6,595,346    2,971,181 
Non-controlling interest   224,909    91,074 
TOTAL EQUITY   6,820,255    3,062,255 
           
TOTAL LIABILITIES AND EQUITY  $11,432,988   $7,228,724 

 

 

 

 

NETCLASS TECHNOLOGY INC

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Expressed in U.S. dollar, except for the number of shares)

 

   For the Six Months Ended
March 31,
 
   2025   2024 
Revenues  $3,654,410   $3,766,192 
Cost of revenues   (3,349,020)   (3,182,743)
Gross profit   305,390    583,449 
           
Operating expenses:          
Selling and marketing   (468,864)   (207,160)
General and administrative   (3,979,733)   (397,873)
Research and development   (1,039,528)   (2,213,377)
Total operating expenses   (5,488,125)   (2,818,410)
Loss from operations   (5,182,735)   (2,234,961)
           
Other (expense) income:          
Interest income (expense), net   (2,939)   210 
Gain on acquisition of a subsidiary   201,197    - 
Other (expense) income, net   (12,815)   (9,673)
Total other (expense) income, net   185,443    (9,463)
           
Loss before income taxes   (4,997,292)   (2,244,424)
           
Income tax benefit   99,327    179,413 
Net loss   (4,897,965)   (2,065,011)
           
Other comprehensive income          
Foreign currency translation adjustments   (15,354)   36,523 
Comprehensive loss   (4,913,319)   (2,028,488)
 Less: Comprehensive loss attributable to non-controlling interests   73,134    - 
 Comprehensive loss attributable to shareholders  $(4,840,185)  $(2,028,488)
           
Loss per share          
Basic and diluted  $(0.29)  $(0.13)
           
Weighted average number of shares outstanding          
Basic and diluted   16,927,527    15,760,000