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]

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].

Core Insights - HeartCore Enterprises, Inc. reported a net loss of approximately $2.2 million for Q2 2024, compared to a net loss of $1.0 million in the same period last year, indicating a decline in financial performance [6][9] - The company experienced a revenue decrease to $4.1 million in Q2 2024 from $5.1 million in Q2 2023, primarily due to a 10% depreciation of the Japanese yen and reduced maintenance services [4][8] - HeartCore's organic software business grew by over 20% in Q2 2024, and the company anticipates 30% organic growth for the full year [3][4] Operational Highlights - HeartCore partnered with INCUDATA Corp. to enhance digital marketing strategies and collaborated with Hitachi Systems to offer a combined package of services [2] - The company authorized a second dividend payment of $0.02 per share and disbursed its first dividend payment of the same amount on May 3, 2024 [2] - HeartCore signed its 14th Go IPO client and hosted a seminar on U.S. exchange listing strategies for Japanese companies [2][3] Financial Performance - For the first half of 2024, revenues totaled $9.1 million, down from $13.8 million in the same period last year, largely due to decreased revenues from Go IPO consulting services [8][9] - Gross profit for Q2 2024 was $0.8 million, a decrease from $1.5 million in Q2 2023, attributed to the same factors affecting revenue [5] - Operating expenses decreased to $2.3 million in Q2 2024 from $3.0 million in Q2 2023, primarily due to lower selling and administrative expenses [5][9] Cash Position - As of June 30, 2024, HeartCore had cash and cash equivalents of $3.8 million, a significant increase from $1.0 million on December 31, 2023 [7] - The company reported a net cash flow used in operating activities of approximately $1.46 million for the first half of 2024 [18]

NEW YORK and TOKYO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) ("HeartCore" or the "Company"), a leading enterprise software and data consulting services company based in Tokyo, is confirmed to present at the 2024 Annual Gateway Conference, which is being held September 4-5, at the Four Seasons Hotel in San Francisco, CA. HeartCore's management team is scheduled to present on Wednesday, September 4 at 10:30 a.m. Pacific Time (PT). The presentation will be webcast live and a ...

NEW YORK and TOKYO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) ("HeartCore" or the "Company"), a leading enterprise software and data consulting services company based in Tokyo, is confirmed to present at the 2024 Annual Gateway Conference, which is being held September 4-5, at the Four Seasons Hotel in San Francisco, CA. HeartCore's management team is scheduled to present on Wednesday, September 4 at 10:30 a.m. Pacific Time (PT). The presentation will be webcast live and a ...

After evaluating the Company's balance sheet and financial profile, HeartCore and its Board of Directors deemed it was in the best interest of the Company and its stockholders to declare and authorize a dividend on the common stock. The record date for holders of the common stock to participate in the dividend is August 19, 2024, and the payment date will be August 26, 2024. HeartCore may continue to issue quarterly dividends going forward, contingent upon the Board approval following review of the Company' ...

Core Insights - HeartCore Enterprises, Inc. has authorized a second dividend payment of $0.02 per share, totaling $417,283 in dividends to be distributed [1][4] - The CEO highlighted the company's growth and strong performance in the software segment, which supports a positive financial outlook [2] - HeartCore's business includes SaaS solutions, data analytics, customer experience management, and digital transformation services [2] Financial Overview - The record date for the dividend is August 19, 2024, with payment scheduled for August 26, 2024 [4] - Future dividends will depend on the Board's approval based on the company's financial performance [4] Business Operations - HeartCore provides a range of services including marketing, sales, service, and content management systems through its CXM Platform [2] - The company also offers consulting services to assist Japanese companies in going public in the U.S. [2]