SINGAPORE and HONG KONG, Oct. 16, 2025 (GLOBE NEWSWIRE) -- 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 corrected its unaudited condensed consolidated financial results previously announced on September 30, 2025. The financial results 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 5,483,660 2,818,410 2,665,250 94.7%
Loss from
operations (5,178,270) (2,234,961) (2,943,309) 94.6%
Loss before
income taxes (5,054,300) (2,244,424) (2,809,876) 125.2%
Net loss (4,955,643) (2,065,011) (2,890,632) 140.0%
Comprehensive
loss
attributable
to
shareholders $(4,971,612) $(2,028,488) $(2,943,124) 145.1%
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 $2.9 million, or 140.0%, from approximately $2.1 million net loss for the six months ended March 31, 2024, to approximately $5.0 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 $0.1 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
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 327,071 -
Operating lease right of use assets 1,153,272 13,122
Deferred tax assets, net 114,208 88,445
----------- -----------
TOTAL NONCURRENT ASSETS 2,064,815 141,274
----------- -----------
TOTAL ASSETS $ 11,315,632 $ 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 - 12,706
TOTAL NON-CURRENT LIABILITIES 372,070 12,706
----------- -----------
TOTAL LIABILITIES 4,612,733 2,097,344
----------- -----------
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 (6,588,434) (1,704,065)
Accumulated other comprehensive loss (202,103) (186,134)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 6,535,193 2,971,181
Non-controlling interest 167,706 91,074
----------- -----------
TOTAL EQUITY 6,702,899 3,062,255
----------- -----------
TOTAL LIABILITIES AND EQUITY $ 11,315,632 $ 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 (3,975,268) (397,873)
Research and development (1,039,528) (2,213,377)
----------- -----------
Total operating expenses (5,483,660) (2,818,410)
----------- -----------
Loss from operations (5,178,270) (2,234,961)
----------- -----------
Other (expense) income:
Interest income (expense), net (2,939) 210
Gain on acquisition of a subsidiary 139,724 -
Other (expense) income, net (12,815) (9,673)
----------- -----------
Total other (expense) income, net 123,970 (9,463)
----------- -----------
Loss before income taxes (5,054,300) (2,244,424)
Income tax benefit 98,657 179,413
----------- -----------
Net loss (4,955,643) (2,065,011)
Other comprehensive income
Foreign currency translation adjustments (15,969) 36,523
----------- -----------
Comprehensive loss (4,971,612) (2,028,488)
Less: Comprehensive loss attributable to
non-controlling interests 71,274 -
----------- -----------
Comprehensive loss attributable to
shareholders $(4,900,338) $(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
=========== ===========
(END) Dow Jones Newswires
October 16, 2025 16:30 ET (20:30 GMT)
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