Netcapital auditor resigns after SEC complaint alleges $13.9 million revenue overstatement
NCPL•Auditor resignation follows SEC complaint
Netcapital’s auditor, Fruci & Associates II, resigned effective Aug. 12, 2026, citing an SEC litigation release and related civil complaint.
The auditor flagged a required non-reliance disclosure tied to allegations of improper recognition of about $13.9 million in consulting revenue from October 2021 to January 2024.
Non-reliance spans multiple fiscal years and quarters
Investors were urged not to rely on audited financials for fiscal years ended April 30, 2022 through April 30, 2025, pending evaluation of corrections.
Non-reliance also covers selected quarterly financials through Jan. 31, 2024, plus later quarters with comparative information from affected periods.
