Hearte Enterprises(US:HTCR)2025-11-18 13:36Financial Performance - For the three months ended September 30, 2025, the company generated revenues of $2,990,329, a decrease of 81.6% compared to $16,240,865 for the same period in 2024[155]. - For the nine months ended September 30, 2025, the company reported revenues of $7,052,799, down 66.9% from $21,270,891 in 2024[156]. - The net loss from continuing operations for the three months ended September 30, 2025, was $137,122, compared to a net income of $11,119,592 for the same period in 2024[155]. - The net loss from continuing operations for the nine months ended September 30, 2025, was $2,913,181, contrasting with a net income of $6,705,342 in 2024[156]. - Total revenues decreased by $13,250,536, or 81.6%, to $2,990,329 for the three months ended September 30, 2025, compared to $16,240,865 for the same period in 2024[159]. - Total revenues decreased by $14,218,092, or 66.8%, to $7,052,799 for the nine months ended September 30, 2025, from $21,270,891 for the same period in 2024[181]. - Net income attributable to HeartCore Enterprises, Inc. was $434,072 for the three months ended September 30, 2025, a decrease of $10,623,734, or 96.1%, from $11,057,806 in the same period in 2024[176]. - Net income (loss) attributable to HeartCore Enterprises, Inc. common shareholders was a loss of $1,609,851 for the nine months ended September 30, 2025, representing a decrease of $9,383,207, or 120.7%, from a net income of $7,773,356 for the same period in 2024[201]. Expenses - Gross profit decreased by $12,541,707, or 89.5%, to $1,468,409 for the three months ended September 30, 2025, from $14,010,116 in the prior year[161]. - Gross profit decreased by $12,462,942, or 82.7%, to $2,599,064 for the nine months ended September 30, 2025, compared to $15,062,006 for the same period in 2024[184]. - Selling expenses decreased by $67,654, or 41.7%, to $94,718 for the three months ended September 30, 2025, from $162,372 in the prior year[163]. - Selling expenses decreased by $180,012, or 34.7%, to $338,615 for the nine months ended September 30, 2025, from $518,627 for the same period in 2024[186]. - General and administrative expenses decreased by $58,176, or 4.0%, to $1,384,838 for the three months ended September 30, 2025, from $1,443,014 in the same period in 2024[166]. - General and administrative expenses decreased by $682,679, or 14.2%, to $4,119,851 for the nine months ended September 30, 2025, from $4,802,530 for the same period in 2024[188]. - Research and development expenses decreased by $63,709, or 100.0%, to nil for the three months ended September 30, 2025, from $63,709 in the prior year[168]. - Research and development expenses decreased by 100.0% to nil for the nine months ended September 30, 2025, from $172,140 for the same period in 2024[190]. Cash Flow and Financial Position - Total cash and cash equivalents decreased to $2,024,736 as of September 30, 2025, from $2,121,089 at the beginning of the period[202]. - Net cash flows used in operating activities of continuing operations was $2,980,958 for the nine months ended September 30, 2025[203]. - Net cash flows used in operating activities of continuing operations amounted to $3,027,115 for the nine months ended September 30, 2024[204]. - Net cash flows provided by financing activities of continuing operations totaled $1,953,032 for the nine months ended September 30, 2025, mainly from the issuance of Series A convertible preferred shares[206]. - Future minimum principal payments for long-term debts total $510,912 as of September 30, 2025[212]. - Net cash flows used in discontinued operations were $166,736 and $1,080,748 for the nine months ended September 30, 2025 and 2024, respectively[208]. Corporate Actions and Compliance - The company has entered into consulting agreements with 16 companies for their IPO process, with consulting fees ranging from $380,000 to $900,000 per company[135]. - The company sold its software business assets in Japan for a purchase price of ¥1,800,418,650 (approximately $12 million) to Smith Japan Holdings KK[144]. - A one-time distribution of $0.13 per share to stockholders has been authorized, with a record date of November 10, 2025[149]. - The company is currently not in compliance with Nasdaq's minimum bid price requirement of $1.00 per share, with a 180-day period granted to regain compliance[150][151]. - As of September 30, 2025, the company had an accumulated deficit of $17,797,861[156]. - HeartCore Financial, Inc. was formed as a wholly owned subsidiary to support the GO IPO consulting business, and HeartCore Luvina Vietnam Company was established as a 51% owned subsidiary in Vietnam[141]. Investment and Market Activity - Income from discontinued operations, net of income tax, was $488,297 for the three months ended September 30, 2025, a $790,959, or 261.3%, increase from a loss of $302,662 in the prior year[173]. - Income from discontinued operations, net of income tax, increased by $766,013, or 181.3%, to $1,188,481 for the nine months ended September 30, 2025, from $422,468 for the same period in 2024[196]. - A gain of $1,631,700 was recognized on fair value changes in investments in warrants[210]. - The company recognized a loss of $3,970,628 on the sale of warrants to a third party[210]. - Marketable securities and warrants received as noncash consideration totaled $13,541,693 during the period[210]. - The company had no off-balance sheet arrangements as of September 30, 2025[213].