hopTo Inc. Announces First Quarter 2017 Financial Results
CAMPBELL, CA-(Marketwired - May 23, 2017) - hopTo Inc. (OTCQB:
HPTO), developer and provider of application publishing and mobile
productivity software today announced its financial results for the
year ended March 31, 2017.
First Quarter 2017 Financial Update:
- Revenue of $0.98 million
- Net Loss of $0.15 million
- Basic and diluted loss per share of $0.02
First Quarter 2017 Operational Summary and Business Update
"Throughout the first quarter, we have continued our efforts to
extract value from the intellectual property and software that we
have developed while taking additional steps to further reduce
expenses," stated Eldad Eilam, President and CEO of hopTo Inc.
"Our GO-Global business continues to generate positive cash flow
and remains an important aspect of our overall company. We continue
to believe that the GO-Global business will operate profitably in
the future. We are also evaluating opportunities related to
GO-Global. Additionally, early in the Second Quarter, we entered
into a sublease for our remaining office space in Campbell and will
derive additional expense savings and positive cash flow from this
transaction."
"Although we continue to believe that we may have opportunities
to extract value from our hopTo and GO-Global assets, there are
significant risks and uncertainties associated with those efforts.
Our Annual Report on Form 10-K that was filed with the SEC on April
7, 2017 included discussion of such opportunities and additional
new risk factors in this regard. Shareholders should not place any
significant reliance on the outcome of such efforts. In addition,
although our GO-Global business continues to generate cash, due to
our conclusion that it is unlikely we will generate revenue from
hopTo Work in the reasonably foreseeable future, our Annual Report
included disclosure regarding our determination that there are
substantial doubts about our ability to continue as a going
concern. We nevertheless intend to further manage our expenses to
preserve as many opportunities for the company as reasonably
possible. In particular, we will seek to preserve resources to
enable the continued operation and customer support of our
GO-Global business, which we believe is achievable given the
positive cash flow profile of that business."
First Quarter 2017 Results of Operations
Total revenue for the first quarter 2017 of $0.98 million
represents a decrease of 2.5% from $1.0 million for the same period
in the prior year. This revenue is entirely from the Company's
Go-Global products and services.
Gross profit for the first quarter of 2017 amounted to $0.96
million, as compared to $0.95 million, for the same period in 2016,
an increase of 1.1%.
Total operating expense for the first quarter of 2017 was $1.1
million, a reduction of $0.8 million or 40.7% from the same period
in 2016.
hopTo reported a net loss for the quarter ended March 31, 2017
of $0.15 million, or $0.02 per basic and diluted share, compared to
$1.0 million or $0.10 per basic and diluted share for the same
period in 2016.
As of March 31, 2017 the Company had cash of $673 thousand and
accounts receivable of $184 thousand.
Investor Communications
As part of our continued expense management, hopTo Inc. will not
be hosting an investor conference call to discuss its first quarter
financial results.
As we did with our Year End 2016 and Q3 2016 results, in lieu of
a conference call, we invite shareholders to submit questions via
email to the following email address: investors@hopto.com
We will accumulate questions until the end of the day on
Wednesday, May 24, 2017. We will review the questions and we will
use our best efforts to provide written answers to those questions
that we believe we can answer, subject to normal confidentiality
policies, via a Form 8-K that we intend to file with the SEC on or
before May 31, 2017. We will also post the answers at
investors.hopto.com.
About hopTo:
Founded in its current form in 2012, hopTo Inc. is a developer
of application publishing software and a mobile productivity
workspace platform. The company is based in Campbell, CA.
For more information on hopTo, please visit: www.hopTo.com.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements. These
statements include statements regarding future growth and the
expected impact of our products on the marketplace. These
statements are based on management's current expectations and are
subject to a number of uncertainties and risks that could cause
actual results to differ significantly from those described in the
forward looking statements. Factors that may cause such a
difference include the following: the success of our new products
depends on a number of factors including market and customer
acceptance; our ability to manage the risks associated with new
product introduction and developing and marketing new versions of
the product; and other factors, including those set forth under
Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the
year ended December 31, 2016 and in other documents we have filed
with the SEC.
Condensed Consolidated Balance Sheets
March 31, December 31,
2017 2016
---------- ----------
(Unaudited) (Audited)
---------- ----------
Assets
-----------------
Cash $ 673,100 $ 546,200
Accounts receivable, net 183,800 355,300
Prepaid expenses 35,400 38,700
---------- ----------
Total current assets 892,300 940,200
Property and equipment, net 124,600 143,300
Other assets 109,000 109,000
---------- ----------
Total assets $ 1,125,900 $ 1,192,500
=================== ===================
Liabilities and stockholders'
deficit
-----------------
Accounts payable and accrued
expenses $ 1,036,100 $ 975,800
Deferred rent 20,900 24,100
Capital lease 4,600 6,800
Deferred revenue 1,720,500 1,759,000
Other current liabilities 766,200 571,100
---------- ----------
Total current liabilities 3,548,300 3,336,800
Deposit liability 81,400 81,400
Deferred revenue 1,557,500 1,694,600
Deferred rent - 2,600
Stockholders' deficit (4,061,300) (3,922,900)
---------- ----------
Total liabilities and
stockholders' deficit $ 1,125,900 $ 1,192,500
=================== ===================
Condensed Consolidated Statements of Operations
Three Months Ended March 31,
--------------------
2017 2016
(Unaudited) (Unaudited)
---------- ----------
Revenue $ 982,500 $ 1,007,300
Costs of revenue 18,800 53,800
---------- ----------
Gross profit 963,700 953,500
---------- ----------
Operating expenses:
Selling and marketing 89,900 317,100
General and administrative 641,100 678,100
Research and development 385,000 885,800
---------- ----------
Total operating expenses 1,116,000 1,881,000
---------- ----------
Loss from operations (152,300) (927,500)
Change in fair value of warrants
liability - (47,300)
Other income (expense), net (500) 600
---------- ----------
Loss before provision for income
tax (152,800) (974,200)
Provision for income tax 900 700
---------- ----------
Net loss (153,700) (974,900)
=================== ===================
Basic and diluted loss per share $ (0.02) $ (0.10)
=================== ===================
Average weighted common shares
outstanding - basic and diluted 9,804,400 9,737,946
=================== ===================
Investors / Media: J.L. Casabonne investors@hopto.com
408-688-2674 ext. 5025
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