Netcapital Inc. said the U.S. Securities and Exchange Commission (SEC, U.S. markets regulator) has filed a civil complaint against the company and certain current and former directors, officers, and other individuals after the company had previously disclosed receiving a Wells Notice. The company said the allegations have not been adjudicated and that management will spend the next seven to ten days reviewing the complaint with its Board of Directors and legal advisers to assess the implications and determine steps to protect the company and its shareholders. Netcapital said it plans to update shareholders after that review and maintained that the litigation will not change its focus on serving customers, operating the business, evaluating strategic opportunities, pursuing appropriate transactions, and making decisions it believes are in shareholders' best interests. The company added that the individuals named in the complaint may respond separately, while Netcapital will not argue the SEC's allegations publicly because the matter is now in pending litigation. The release also reiterated forward-looking risks tied to Nasdaq's minimum bid-price requirement, a possible reverse stock split, the timing of its Annual Report on Form 10-K, continued listing standards, and broader operational, regulatory, reporting, and capital-raising challenges.