About Hitachi Systems, Ltd. Forward-Looking Statements https://www.globenewswire.com/NewsRoom/AttachmentNg/6ae43b74-2039-4770-b868-42841f15db32 https://www.globenewswire.com/NewsRoom/AttachmentNg/8dcba792-94e4-4425-bb94-c4032277abb5 NEW YORK and TOKYO, July 08, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (NASDAQ:HTCR) ("HeartCore" or the "Company"), a leading enterprise software and consulting services company based in Tokyo, announced it has partnered with Hitachi Systems, Ltd. ("Hitachi Systems") ...

"Since launching our Go IPO consulting business in 2022, we have seen a rising demand from Japanese companies interested in U.S. listings," said HeartCore CEO Sumitaka Kanno Yamamoto. "To provide valuable insight into the legal process and the role of investor and public relations leading up to, and more importantly after the IPO transaction, I am pleased to host international capital markets attorney, Mark Y. Liu, of Akerman LLP and John Yi and Steven Shinmachi from our investor relations team, Gateway Gro ...

Core Insights - HeartCore Enterprises, Inc. is hosting a seminar for Japanese companies interested in listing on U.S. exchanges, scheduled for July 18, 2024 [2][5] - The seminar will feature discussions on the roles of investor and public relations, as well as an overview of the U.S. IPO listing process from legal and regulatory perspectives [1][3] - HeartCore's Go IPO consulting service has seen increased demand since its launch in 2022, with three new clients signed in 2024 [3] Company Overview - HeartCore is a leading enterprise software and consulting services company based in Tokyo, offering SaaS solutions and data analytics services to enhance customer experiences [3] - The company's customer experience management platform includes various systems for marketing, sales, service, and content management [3] - HeartCore also provides digital transformation services, including robotics process automation and task mining [3] Seminar Details - The seminar will be held at the Tokyo Toranomon Global Square Conference venue and is free of charge [5] - Approximately 100 attendees are expected, showcasing HeartCore's extensive experience in the IPO process [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______, 20___, to _____, 20___. Commission File Number 001-41272 HeartCore Enterprises, Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdict ...

[Company Overview & Highlights](index=1&type=section&id=Company%20Overview%20%26%20Highlights) [First Quarter 2024 and Recent Operational Highlights](index=1&type=section&id=First%20Quarter%202024%20and%20Recent%20Operational%20Highlights) HeartCore achieved several operational milestones in Q1 2024, including the successful sale of Go IPO client warrants, first dividend payment, establishment of a new AI software development division, and strategic partnerships with Luvina Software and Toshiba Elevator - The company sold Go IPO client warrants for **$9.0 million**, with **$5.0 million** received in Q1 and the remaining **$4.0 million** in April 2024, expected to be recognized as revenue in Fall 2024 upon client IPO[7](index=7&type=chunk) - The company distributed its first dividend of **$0.02 per share** on May 3, 2024[7](index=7&type=chunk) - An Artificial Intelligence software development division was established, securing **two deals** within its first month[7](index=7&type=chunk) - A joint venture, HeartCore Luvina Vietnam Co., Ltd., was formed with Luvina Software Joint Stock Company, and a CMS platform implementation agreement was signed with Toshiba Elevator and Building Systems Corporation[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Sumitaka Kanno Yamamoto highlighted the software business's Q1 profitability as a key transformation, driven by cost reductions and new division establishments, noting that reported quarterly performance did not include **$9.0 million** from Go IPO client warrant sales, which was used for strategic investments and dividend payments - The software business segment achieved profitability in Q1, primarily due to aggressive cost-cutting measures and sales and marketing investments[4](index=4&type=chunk) - Two newly established divisions, including the joint venture with Luvina Software and the AI software development division, contributed to the software business's profitability, with the Luvina JV projected to generate approximately **$1.0 million** in first-year sales and the AI division securing **two deals** in its first month[4](index=4&type=chunk) - Quarterly results did not include **$9.0 million** from Go IPO client warrant sales in March, which, due to specific accounting treatment, will be recognized as revenue only after the client's IPO but has already been utilized for strategic investments and dividend payments[4](index=4&type=chunk) [About HeartCore Enterprises, Inc.](index=2&type=section&id=About%20HeartCore%20Enterprises%2C%20Inc.) HeartCore Enterprises, a leading enterprise software and consulting services company based in Tokyo, Japan, offers SaaS solutions, data analytics, Customer Experience Management (CXM) platforms, digital transformation services, and US IPO consulting for Japanese companies - The company provides SaaS solutions, data analytics services, and Customer Experience Management (CXM) platforms, encompassing marketing, sales, service, and content management systems[11](index=11&type=chunk) - It operates a digital transformation business, offering Robotic Process Automation (RPA), process mining, and task mining services[11](index=11&type=chunk) - It offers GO IPO consulting services, assisting Japanese companies in listing on US stock exchanges[11](index=11&type=chunk) [First Quarter 2024 Financial Performance](index=1&type=section&id=First%20Quarter%202024%20Financial%20Performance) [Summary of Financial Results](index=1&type=section&id=Summary%20of%20Financial%20Results) HeartCore's Q1 2024 revenue decreased year-over-year, primarily due to reduced Go IPO consulting service income, leading to significant declines in gross and net profit, shifting from net income to a net loss, though operating expenses decreased due to cost-cutting, and cash and cash equivalents grew sequentially Key Financial Data for Q1 2024 (YoY) | Metric | Q1 2024 ($) | Q1 2023 ($) | YoY Change ($) | Change Rate (%) | Notes | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $5.0 million | $8.7 million | -$3.7 million | -42.5% | Primarily due to decrease in Go IPO consulting service revenue | | Cost of Sales | $3.0 million | $3.1 million | -$0.1 million | -3.2% | | | Gross Profit | $2.0 million | $5.6 million | -$3.6 million | -64.3% | Primarily due to decrease in revenue | | Operating Expenses | $2.7 million | $3.3 million | -$0.6 million | -18.2% | Primarily due to decrease in selling and general & administrative expenses | | Operating Income (Loss) | -$0.7 million | $2.3 million | -$3.0 million | -130.4% | | | Net Income (Loss) | -$1.5 million | $1.8 million | -$3.3 million | -183.3% | | | Diluted Net Income (Loss) Per Share | -$0.06 | $0.10 | -$0.16 | -160.0% | | | Cash and Cash Equivalents at Period End | $1.2 million | $1.0 million | +$0.2 million | +20.0% | Increased from December 31, 2023 | - The revenue decrease was primarily due to reduced Go IPO consulting service income, as two IPO consulting clients successfully listed on Nasdaq in the prior year period, partially offset by increased revenue from on-site software sales and custom software development services[5](index=5&type=chunk) [Strategic Outlook](index=2&type=section&id=Strategic%20Outlook) [2024 Strategic Outlook](index=2&type=section&id=2024%20Strategic%20Outlook) HeartCore will continue to expand its enterprise software business for the remainder of 2024, focusing on cost reductions and synergistic opportunities across subsidiaries and divisions to achieve overall profitability, while the Go IPO team remains optimistic about the IPO market, expecting multiple IPO completions and additional warrant gains this year - The company will continue to expand its enterprise software business through cost-cutting strategies and identifying synergistic opportunities across subsidiaries and divisions to optimize operational efficiency and capabilities, aiming for overall profitability in **2024**[10](index=10&type=chunk) - The Go IPO team will continue to guide an expanding client base through the IPO process, maintaining an optimistic outlook on the IPO market, with expectations to announce the completion of **multiple IPOs** and secure additional Go IPO warrant gains this year[10](index=10&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2024, HeartCore's total assets and liabilities increased from December 31, 2023, with a significant rise in current assets primarily driven by changes in prepaid expenses and other current liabilities, while total stockholders' equity decreased Key Consolidated Balance Sheet Data | Metric | March 31, 2024 ($) | December 31, 2023 ($) | Sequential Change ($) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 22,330,268 | 19,623,767 | +2,706,501 | +13.8% | | Current Assets | 9,021,261 | 5,494,893 | +3,526,368 | +64.2% | | Cash and Cash Equivalents | 1,219,251 | 1,012,479 | +206,772 | +20.4% | | Prepaid Expenses | 3,942,371 | 536,865 | +3,405,506 | +634.3% | | Total Liabilities | 15,972,254 | 11,956,953 | +4,015,301 | +33.6% | | Current Liabilities | 11,018,328 | 6,511,555 | +4,506,773 | +69.2% | | Other Current Liabilities | 5,268,130 | 216,405 | +5,051,725 | +2334.4% | | Total Stockholders' Equity | 6,358,014 | 7,666,814 | -$1,308,800 | -17.1% | [Unaudited Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=UNAUDITED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) In Q1 2024, HeartCore's revenue and gross profit significantly declined year-over-year, shifting operations from profit to a net loss of **$1.478 million**, or **$0.06 diluted loss per share**, compared to a net income of **$1.808 million**, or **$0.10 diluted earnings per share** in the prior year, with reduced operating expenses partially offsetting the revenue decline Key Consolidated Statements of Operations and Comprehensive Loss Data (YoY) | Metric | Three Months Ended March 31, 2024 ($) | Three Months Ended March 31, 2023 ($) | YoY Change ($) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 5,046,732 | 8,734,150 | -3,687,418 | -42.2% | | Cost of Sales | 3,014,543 | 3,101,066 | -86,523 | -2.8% | | Gross Profit | 2,032,189 | 5,633,084 | -3,600,895 | -63.9% | | Total Operating Expenses | 2,715,144 | 3,333,473 | -618,329 | -18.5% | | Operating Income (Loss) | -682,955 | 2,299,611 | -2,982,566 | -129.7% | | Net Income (Loss) | -1,478,002 | 1,808,037 | -3,286,039 | -181.8% | | Net Income (Loss) Attributable to HeartCore Enterprises, Inc. | -1,333,350 | 1,882,289 | -3,215,639 | -170.8% | | Diluted Net Income (Loss) Per Share | -0.06 | 0.10 | -0.16 | -160.0% | [Unaudited Consolidated Statements of Cash Flows](index=6&type=section&id=UNAUDITED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2024, HeartCore's operating cash flow shifted from a net outflow to a net inflow of **$0.741 million** year-over-year, primarily due to a significant increase in other liabilities, while investing cash flow remained a small net inflow and financing cash outflow increased, leading to a rise in period-end cash and cash equivalents from the beginning of the period Key Consolidated Statements of Cash Flows Data (YoY) | Cash Flow Type | Three Months Ended March 31, 2024 ($) | Three Months Ended March 31, 2023 ($) | YoY Change ($) | | :--- | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | 741,381 | -1,048,059 | +1,789,440 | | Net Cash Provided by (Used in) Investing Activities | 10,814 | -722,364 | +733,178 | | Net Cash Provided by (Used in) Financing Activities | -474,752 | -134,296 | -340,456 | | Cash and Cash Equivalents at End of Period | 1,219,251 | 5,209,915 | -3,990,664 | - The significant improvement in operating cash flow was primarily attributable to an increase in other liabilities, which contributed **$5.06 million** in cash inflow during Q1 2024[19](index=19&type=chunk) - Non-cash investing and financing transactions included **$125,735** for operating lease right-of-use assets obtained in exchange for operating lease liabilities, and **$172,689** for insurance premium financing[20](index=20&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks and uncertainties, where actual results may differ materially from expectations, and the company undertakes no obligation to publicly update or revise these statements, advising investors not to place undue reliance - All statements in this press release that are not historical facts are forward-looking statements, subject to known and unknown risks and uncertainties[12](index=12&type=chunk) - These factors, risks, and uncertainties could cause actual results to differ materially from those expressed or implied in the forward-looking statements[12](index=12&type=chunk) - HeartCore undertakes no obligation to publicly update or revise these forward-looking statements for any reason[12](index=12&type=chunk)

Core Insights - HeartCore Enterprises, Inc. reported a shift towards profitability in its software division during Q1 2024, driven by cost reduction initiatives and strategic partnerships [3][4] - The company experienced a decline in overall revenues, primarily due to lower consulting revenues from Go IPO services, but saw increases in on-premises software sales and customized development [4][5] - HeartCore's net loss for Q1 2024 was approximately $1.5 million, a significant decrease from a net income of $1.8 million in the same period last year [6][17] Financial Performance - Revenues for Q1 2024 were $5.0 million, down from $8.7 million in Q1 2023, reflecting a decrease of approximately 42.5% [4] - Gross profit decreased to $2.0 million from $5.6 million year-over-year, indicating a decline of about 64.3% [5] - Operating expenses reduced to $2.7 million from $3.3 million, a decrease of approximately 18.2% [5] Cash Flow and Assets - As of March 31, 2024, cash and cash equivalents increased to $1.2 million from $1.0 million at the end of 2023 [6][12] - The company received $9 million from the sale of a Go IPO client warrant, with $5 million recognized in Q1 2024 and the remaining $4 million in April 2024, although this amount will not be recorded as revenue until the client goes public [7] Strategic Developments - HeartCore established two new divisions, including an AI software development division, which has already secured two deals, indicating growth potential [3][7] - The company formed a joint venture with Luvina Software Joint Stock Company, expected to generate approximately $1 million in sales within its first year [3][7] - HeartCore's CEO expressed optimism about the IPO market and the company's ongoing efforts to guide clients through the IPO process, anticipating several IPO completions in 2024 [8]

NEW YORK and TOKYO, May 13, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (NASDAQ:HTCR) ("HeartCore" or the "Company"), a leading enterprise software and consulting services company based in Tokyo, announced updates around the previously announced sale of a Go IPO warrant. In March 2024, HeartCore announced the sale of a Go IPO client's warrant to a Japanese financial institution for $9 million. During the first quarter ended March 31, 2024, $5 million was received, with the remaining $4 million rece ...

NEW YORK and TOKYO, April 22, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (NASDAQ:HTCR) ("HeartCore" or the "Company"), a leading enterprise software and consulting services company based in Tokyo, announced its Artificial Intelligence (AI) Software Development Division ("AI Division") has engaged with Heart-Tech Health to implement AI capabilities into its Med-Tech platform. Heart-Tech Health offers a suite of SaaS solutions designed to identify women's cardiovascular risks at an early stage. Its ...

NEW YORK and TOKYO, April 17, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (NASDAQ:HTCR) ("HeartCore" or the "Company"), a leading enterprise software and consulting services company based in Tokyo, announced its artificial intelligence (AI) software development division has signed a contract with the San Francisco-based Onside Content ("Onside") to develop a proprietary content marketing evaluation and reporting index solution. Onside offers comprehensive, full-service content marketing strategies ...

NEW YORK and TOKYO, April 15, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (NASDAQ:HTCR) ("HeartCore" or the "Company"), a leading enterprise software and consulting services company based in Tokyo, announced that it has signed an agreement ("Consulting Agreement") with Koei Shoji Co., Ltd. ("Koei Shoji") for its 14th Go IPO consulting service win. As compensation for its services, HeartCore expects to generate from Koei Shoji an aggregate of $500,000 in initial fees. In addition, HeartCore has rece ...