NEW YORK and TOKYO, March 31, 2025 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) ("HeartCore" or the "Company"), a leading enterprise software and consulting services company based in Tokyo, reported financial results for the year ended December 31, 2024. Recent Operational & Financial Highlights Management Commentary HeartCore CEO Sumitaka Kanno commented: "Over the past year, we made several strategic advancements in our software business model, all aimed at driving sustainable and predic ...

Core Insights - HeartCore Enterprises, Inc. has established a new Business Development team to enhance customer success in its CMS business [1][2][3] - The BizDev team aims to provide comprehensive, end-to-end support for a wider range of customer needs, from website development to ongoing operations [2][3] - The formation of this team is part of HeartCore's strategy to evolve its CMS business and strengthen recurring revenues [3] Company Overview - HeartCore is a leading enterprise software and consulting services company headquartered in Tokyo, Japan, offering SaaS solutions and data analytics services [6] - The company's customer experience management platform includes various systems and tools designed to enhance customer engagement [6] - HeartCore also provides digital transformation services, including robotics process automation and consulting for Japanese companies going public in the U.S. [6] Case Study - The BizDev team successfully supported the renewal and relaunch of the Tourinji temple's website, enhancing its online branding and user experience [4][5] - The project involved client interviews, site visits, concept development, and professional photography to reflect the temple's serene atmosphere [5]

Company Overview - HeartCore Enterprises, Inc. is a leading enterprise software and data consulting services company headquartered in Tokyo, Japan [3] - The company offers Software as a Service (SaaS) solutions and data analytics services to enterprise customers globally [3] - HeartCore's customer experience management platform includes marketing, sales, service, and content management systems, enhancing customer engagement [3] - The company also provides digital transformation services, including robotics process automation and process mining [3] - HeartCore's GO IPOSM consulting services assist Japanese companies in going public in the U.S. [3] Conference Participation - HeartCore will hold one-on-one meetings at the 37th Annual ROTH Conference from March 16-18, 2025, in Dana Point, California [1] - CEO Sumitaka Kanno will engage with institutional investors during the conference [1] - The conference will feature approximately 450 participating companies across various growth sectors, including Business Services, Consumer, Healthcare, and Technology [2]

Core Insights - HeartCore Enterprises, Inc. is expanding its Go IPO consulting services into South Korea to meet the growing demand from Asia Pacific companies seeking to list on U.S. exchanges [1][2] - The company has initiated a sales and marketing initiative in the Asia-Pacific region, starting with a referral program in South Korea, and plans to collaborate with Thomas Yi from Cross Border Associates [2][3] - HeartCore's CEO, Sumitaka Kanno, highlighted the appeal of U.S. listings for capital raising and liquidity events, indicating ongoing discussions with various companies in South Korea and the broader region [3] Company Overview - HeartCore Enterprises is headquartered in Tokyo and specializes in enterprise software and consulting services, offering SaaS solutions and data analytics services to enhance customer experiences [4] - The company's customer experience management platform includes various systems for marketing, sales, service, and content management, along with digital transformation services [4] - HeartCore's Go IPO consulting services assist Japanese companies in going public in the U.S., positioning the company to capture new opportunities in the Asia-Pacific market [4]

Financial Performance - For the three months ended September 30, 2024, the company generated revenues of $17,850,411, a significant increase from $4,688,908 in the same period of 2023, representing a growth of approximately 280%[155] - The net income for the three months ended September 30, 2024, was $10,816,930, compared to a net loss of $2,541,133 in the same period of 2023, indicating a turnaround in financial performance[155] - For the nine months ended September 30, 2024, the company reported revenues of $26,963,531, up from $18,518,431 in 2023, reflecting a year-over-year increase of approximately 46%[156] - The net income for the nine months ended September 30, 2024, was $7,127,810, compared to a net loss of $1,755,942 in the same period of 2023, showcasing improved profitability[156] - Net income was $10,816,930 for the three months ended September 30, 2024, representing a $13,358,063, or 525.7%, increase from a net loss of $2,541,133 for the same period in 2023[170] - Net income attributable to HeartCore Enterprises, Inc. was $11,057,806 for the three months ended September 30, 2024, representing a $13,365,026, or 579.3%, increase from a net loss of $2,307,220 for the same period in 2023[172] - Total revenues increased by $8,445,100, or 45.6%, to $26,963,531 for the nine months ended September 30, 2024, from $18,518,431 for the same period in 2023[176] - Net income for the nine months ended September 30, 2024, was $7,127,810, representing an increase of $8,883,752, or 505.9%, from a loss of $1,755,942 in the prior year[189] - Net income attributable to HeartCore Enterprises, Inc. was $7,773,356 for the nine months ended September 30, 2024, a $9,110,087, or 681.5%, increase from a net loss of $1,336,731 in the same period of 2023[192] Revenue and Profitability Metrics - Total revenues increased by $13,161,503, or 280.7%, to $17,850,411 for the three months ended September 30, 2024, from $4,688,908 for the same period in 2023[159] - Gross profit increased by $13,588,720, or 1,639.8%, to $14,417,387 for the three months ended September 30, 2024, from $828,667 for the same period in 2023[161] - Gross profit margin increased by 63.1% to 80.8% for the three months ended September 30, 2024, from 17.7% for the same period in 2023[162] - Gross profit rose by $9,285,271, or 116.5%, to $17,255,457 for the nine months ended September 30, 2024, compared to $7,970,186 in the prior year[178] - Gross profit margin increased by 21.0% to 64.0% for the nine months ended September 30, 2024, from 43.0% in the same period of 2023[179] Expenses - Cost of revenues decreased by $427,217, or 11.1%, to $3,433,024 for the three months ended September 30, 2024, from $3,860,241 for the same period in 2023[160] - Selling expenses decreased by $30,933, or 11.3%, to $243,110 for the three months ended September 30, 2024, from $274,043 for the same period in 2023[163] - General and administrative expenses decreased by $205,581, or 9.5%, to $1,966,717 for the three months ended September 30, 2024, from $2,172,298 for the same period in 2023[165] - Research and development expenses decreased by $62,542, or 36.8%, to $107,529 for the three months ended September 30, 2024, from $170,071 for the same period in 2023[167] - Selling expenses decreased by $688,522, or 51.7%, to $642,225 for the nine months ended September 30, 2024, from $1,330,747 in the prior year[180] - General and administrative expenses decreased by $909,963, or 12.5%, to $6,395,429 for the nine months ended September 30, 2024, from $7,305,392 in the same period of 2023[183] Cash Flow and Financial Position - Net cash flows used in operating activities amounted to $3,499,514 for the nine months ended September 30, 2024[195] - Net cash flows provided by investing activities were $5,317,323 for the nine months ended September 30, 2024, primarily from the sale of warrants[196] - Cash and cash equivalents increased to $1,232,117 as of September 30, 2024, from $1,012,479 as of December 31, 2023[193] - As of September 30, 2024, total lease liabilities amount to $2,311,922, with $69,380 attributed to finance leases and $2,242,542 to operating leases[198] - Future minimum principal payments for long-term debts total $1,858,072, with $99,325 due in the remaining of 2024 and $434,474 due in 2025[199] - The Company has no off-balance sheet arrangements as of September 30, 2024[200] Revenue Recognition Policies - Revenues recognized during the nine months ended September 30, 2024, from deferred revenue amounted to approximately $1.8 million, compared to $1.5 million for the same period in 2023[212] - The Company recognizes revenues from on-premise software licenses upfront when made available to customers, with bundled maintenance and support services allocated based on standalone selling prices[204] - Subscription fees from Software as a Service (SaaS) are recognized over time on a ratable basis, typically for contracts of one year or less[206] - Revenues from maintenance and support services are recognized over time as the services are performed[205] - Customized software development revenues are recognized based on billable hours, with contracts generally not exceeding one year[209] - Consulting service revenues are recognized over the contract period, with cash and noncash considerations included in the transaction price[210] - The Company records reductions to revenues for estimated customer returns and allowances, based on historical rates and specific identification of outstanding returns[211] Compliance and Corporate Actions - The company entered into consulting agreements with 14 companies for IPO support, with consulting fees ranging from $380,000 to $900,000 per company[139] - On October 26, 2023, the company received a notice of noncompliance with Nasdaq's minimum bid price requirement of $1.00 per share[149] - The company regained compliance with the Nasdaq minimum bid price requirement on November 5, 2024, after demonstrating a closing bid price of at least $1.00 per share[155] - The company completed the sale of warrants for $9,000,000 in cash, recording a loss of $3,970,628 from this transaction[146]

Financial Results - HeartCore Enterprises, Inc. announced preliminary financial results for Q3 2024 on October 18, 2024[3]. - The financial results include key metrics for the quarter ended September 30, 2024, although specific figures are not provided in the extracted content[3]. - The report does not include detailed user data or performance guidance for future quarters[3]. Company Classification and Compliance - The company is classified as an emerging growth company under the Securities Act[2]. - The report emphasizes compliance with the Securities Exchange Act of 1934[4]. - The information in the report is not considered "filed" under the Securities Act or the Exchange Act[3]. Leadership - The CEO of HeartCore Enterprises, Inc. is Sumitaka Yamamoto, who signed the report[5]. Product and Market Strategy - There is no mention of new product launches or technological developments in the provided content[3]. - The company has not disclosed any market expansion or acquisition strategies in the current report[3]. Additional Information - The press release detailing financial results is attached as Exhibit 99.1[4].

Core Insights - HeartCore Enterprises, Inc. is a leading enterprise software and data consulting services company based in Tokyo, scheduled to present at the Sidoti Micro-Cap Conference on November 13-14, 2024 [1][2] - The CEO, Sumitaka Yamamoto, will present on November 14, 2024, at 11:30 a.m. Eastern time, with the presentation available for webcast and replay [2] - HeartCore offers Software as a Service (SaaS) solutions and data analytics services, enhancing customer experience through a comprehensive customer experience management platform [3] Company Overview - HeartCore Enterprises is headquartered in Tokyo, Japan, and provides enterprise software and consulting services [3] - The company’s offerings include a customer experience management platform that integrates marketing, sales, service, and content management systems [3] - HeartCore also focuses on digital transformation services, including robotics process automation and task mining, to assist enterprises in their digital transformation efforts [3] - The GO IPOSM consulting services help Japanese companies go public in the U.S. [3]

Core Insights - HeartCore Enterprises, Inc. has entered into a sales collaboration with Tosho Computer Systems Co., Ltd. to promote its investor relations support tool, irVision, and its CMS platform [1][2] - The partnership aims to leverage both companies' client networks for cross-promotion and upselling of products and services, enhancing value for clients and creating new business opportunities [2][3] Company Overview - HeartCore Enterprises is a leading enterprise software and consulting services company headquartered in Tokyo, Japan, offering SaaS solutions and data analytics services to enterprise customers globally [4] - The company's customer experience management platform includes various systems and tools designed to enhance customer engagement and experience [4] - HeartCore also provides digital transformation services, including robotics process automation and consulting services to assist Japanese companies in going public in the U.S. [4]

Core Insights - HeartCore Enterprises, Inc. expects Q3 2024 revenues to be between $17 million and $19 million, marking an increase of 263% to 305% compared to $4.7 million in Q3 2023 [2] - The company anticipates Q3 2024 net income to be between $9 million and $11 million, a significant turnaround from a net loss of $2.5 million in the same quarter last year [2] - For the nine months ended September 30, 2024, revenues are projected to be between $26 million and $28 million, reflecting a 40% to 51% increase from $18.5 million in the same period last year [2] Financial Performance - Q3 2024 revenue breakdown includes $4 million from Software Related Business and $13 million to $15 million from Go IPO Business [2] - The Go IPO Business is expected to generate approximately $12 million to $14 million in revenues from warrants issued by SBC Medical Group Holdings Incorporated [2] - The company has three additional Go IPO deals expected to close in the coming months, indicating a positive outlook for future revenue growth [2] Business Segments - HeartCore's revenue streams include on-premise software, maintenance and support services, SaaS, software development, and customized software services under the Software Related Business [2] - The Go IPO Business focuses on consulting services to assist Japanese companies in going public in the U.S. [3] - The company is shifting towards multi-year software licensing agreements starting in 2024, which is anticipated to boost revenues in the Software Related Business [2]

Financial Performance - For the three months ended June 30, 2024, the company generated revenues of $4,066,388, a decrease of 20.1% compared to $5,095,373 for the same period in 2023[123]. - For the six months ended June 30, 2024, the company reported revenues of $9,113,120, down 34.1% from $13,829,523 in the prior year[123]. - The net loss for the three months ended June 30, 2024, was $2,211,118, compared to a net loss of $1,022,846 for the same period in 2023, representing a 116.5% increase in losses[123]. - The accumulated deficit as of June 30, 2024, stood at $18,047,919[123]. - Net loss for the three months ended June 30, 2024, was $2,211,118, representing a $1,188,272, or 116.2%, increase from a net loss of $1,022,846 for the same period in 2023[132]. - Net loss of $3,689,120 for the six months ended June 30, 2024, representing a $4,474,311, or 569.8%, decrease from a net income of $785,191 for the same period in 2023[147]. Revenue Recognition - Revenues from Maintenance and Support Services are recognized over time as services are performed, with consumption-based services recognized as they are accepted by customers[163]. - Subscription fees from Software as a Service (SaaS) are recognized ratably over the customer agreement term, typically one year or less[164]. - Revenues from Customized Software Development and Services are recognized based on billable hours, with contracts generally not exceeding one year in duration[165]. - Consulting services related to public listings include both cash and noncash considerations, with revenues recognized based on progress toward performance obligations[167]. - The Company estimates customer returns and allowances based on historical rates, with adjustments made if actual returns differ significantly from estimates[168]. - Revenues recognized during the six months ended June 30, 2024, included approximately $1.5 million from the opening deferred revenue balance, compared to $1.3 million for the same period in 2023[169]. Expenses - Gross profit decreased by $702,554, or 46.6%, to $805,881 for the three months ended June 30, 2024, from $1,508,435 for the same period in 2023[126]. - Total operating expenses decreased by $662,472, or 22.3%, to $2,313,085 for the three months ended June 30, 2024, from $2,975,557 for the same period in 2023[126]. - Selling expenses decreased by $308,654, or 63.2%, to $179,408 for the three months ended June 30, 2024, from $488,062 for the same period in 2023[128]. - General and administrative expenses decreased by $425,478, or 17.4%, to $2,022,409 for the three months ended June 30, 2024, from $2,447,887 for the same period in 2023[129]. - Research and development expenses increased by $71,660, or 180.9%, to $111,268 for the three months ended June 30, 2024, primarily due to increased outsourcing expenses[130]. - Selling expenses decreased by $657,589, or 62.2%, to $399,115 for the six months ended June 30, 2024, from $1,056,704 in the same period of 2023[141]. - General and administrative expenses decreased by $704,382, or 13.7%, to $4,428,712 for the six months ended June 30, 2024, from $5,133,094 for the same period in 2023[142]. - Research and development expenses increased by $81,170, or 68.1%, to $200,402 for the six months ended June 30, 2024, from $119,232 for the same period in 2023[144]. Cash Flow and Assets - Cash and cash equivalents increased to $3,806,349 as of June 30, 2024, compared to $1,012,479 as of December 31, 2023[150]. - Net cash flows provided by investing activities amounted to $5,271,823 for the six months ended June 30, 2024, primarily from the sale of unearned warrants[152]. - Future minimum lease payments under non-cancelable lease agreements total $2,270,179 as of June 30, 2024[154]. Business Developments - The company declared a cash dividend of $0.02 per share on July 22, 2024, to be paid on August 26, 2024, totaling $417,283[119]. - The company entered into consulting agreements with 14 companies for its GO IPO business, with consulting fees ranging from $380,000 to $900,000 per company[114]. - BloomZ Inc., a client of the GO IPO business, successfully began trading on The Nasdaq Capital Market in July 2024, indicating potential growth in IPO activities[115]. - The company received $9,000,000 from a warrants transfer agreement during the six months ended June 30, 2024, recorded as other current liabilities[115]. - The company is currently under a compliance review by Nasdaq due to not meeting the $1.00 minimum bid price requirement, with a 180-day period granted to regain compliance[120]. - The company formed HeartCore Financial and HeartCore Capital Advisors as part of its GO IPO consulting business, expanding its operational footprint[117]. Profitability Metrics - The overall gross profit margin decreased by 9.8% to 19.8% for the three months ended June 30, 2024, from 29.6% for the same period in 2023[127]. - Gross profit decreased by $4,303,449, or 60.3%, to $2,838,070 for the six months ended June 30, 2024, from $7,141,519 for the same period in 2023[139]. - Overall gross profit margin decreased by 20.5% to 31.1% for the six months ended June 30, 2024, from 51.6% in the same period of 2023[140]. - Other expenses increased by $598,351, or 336.7%, to $776,077 for the three months ended June 30, 2024, primarily due to losses on fair value changes in investments[131]. - Net loss attributable to HeartCore Enterprises, Inc. was $1,951,100 for the three months ended June 30, 2024, representing a $1,039,300, or 114.0%, increase from a net loss of $911,800 for the same period in 2023[134].