Hearte Enterprises(US:HTCR)2025-11-18 13:30Financial Performance - Revenues for Q3 2025 were $3.0 million, a decrease of 81.5% from $16.2 million in Q3 2024, primarily due to the absence of significant warrant revenue from a large GO IPO deal[5] - Gross profit for Q3 2025 was $1.5 million, down 89.3% from $14.0 million in the same period last year, reflecting reduced gross profit from GO IPO services[5] - Net income for Q3 2025 was $0.4 million, a significant decline from $10.8 million in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $0.5 million, down from $12.0 million in Q3 2024[9] - For the nine months ended September 30, 2025, revenues were $7.1 million, a decrease of 66.7% from $21.3 million in the same period last year[10] - Gross profit for the nine months ended September 30, 2025, was $2,599,064, down from $15,062,006 in 2024, indicating a decrease of about 82.7%[24] - Net loss attributable to HeartCore Enterprises, Inc. for the nine months ended September 30, 2025, was $(1,609,851), compared to a net income of $7,773,356 in 2024, reflecting a significant shift in performance[24] - Basic and diluted net income (loss) per common share for the nine months ended September 30, 2025, was $(0.07), down from $0.37 in 2024[25] - Income (loss) from continuing operations before income tax expense for the nine months ended September 30, 2025, was $(2,858,295), compared to $6,805,817 in 2024[24] - Other comprehensive loss for the nine months ended September 30, 2025, was $(1,715,032), compared to a comprehensive income of $7,179,488 in 2024[24] - For the nine months ended September 30, 2025, the net loss from continuing operations was $2,913,181 compared to a net income of $6,705,342 in the same period of 2024[27] Operating Expenses - Operating expenses decreased to $1.5 million in Q3 2025, compared to $1.7 million in Q3 2024, due to various cost-cutting measures[7] - Operating expenses for the nine months ended September 30, 2025, decreased to $4.5 million from $5.5 million in the same period last year, driven by reductions in general and administrative costs[11] - Total operating expenses for the nine months ended September 30, 2025, were $4,458,466, a decrease from $5,493,297 in 2024, showing a reduction of approximately 18.8%[24] Cash and Cash Equivalents - Cash and cash equivalents as of September 30, 2025, were $1.5 million, down from $2.0 million at the end of 2024[9] - The cash and cash equivalents at the end of the period were $2,024,736, down from $2,121,089 at the beginning of the period[28] Strategic Changes - The company divested its software business subsidiary, HeartCore Japan, to focus on its Go IPO business, which is expected to enhance long-term profitability[3] - The company signed its 16th Go IPO client and successfully launched one client on the Nasdaq Stock Market[6] Cash Flows - Cash flows from operating activities of continuing operations resulted in a net cash outflow of $2,980,958 for 2025, compared to an outflow of $3,027,115 in 2024[27] - The company reported net proceeds from the sale of warrants amounting to $5,640,000 in 2025[27] - The net cash flows used in financing activities of continuing operations were $1,953,032 in 2025, compared to $(1,168,769) in 2024[28] Depreciation and Amortization - The company incurred depreciation and amortization expenses of $36,994 for the nine months ended September 30, 2025, compared to $532,958 in 2024[27] Other Financial Metrics - The company reported a loss on sale of warrants amounting to $(3,970,628) during the nine months ended September 30, 2024[24] - The company reported a gain on the termination of lease amounting to $(9,059) in 2025[27] - The company reported a loss on disposal of property and equipment of $116,981 for the nine months ended September 30, 2025[27] - Research and development expenses for the nine months ended September 30, 2025, were not reported, while they were $172,140 in 2024, indicating a potential shift in focus or strategy[24]