NEW YORK and TOKYO, Aug. 14, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (NASDAQ:HTCR) ("HeartCore" or "the Company"), a leading enterprise software and consulting services company based in Tokyo, reported financial results for the second quarter ended June 30, 2024. Second Quarter 2024 and Recent Operational Highlights Partnered with INCUDATA Corp. to enhance corporate digital marketing strategies Announced Go IPO Client, BloomZ, began trading on the Nasdaq Stock Exchange Authorized second dividend payment of $0.02 per share Partnered with Hitachi Systems, Ltd. to offer combined package of HeartCore CMS and GRED Web Security Assessment Cloud Announced and hosted seminar on U.S. exchange listing strategies for Japanese companies with Akerman LLP and Gateway Group Sold a Go IPO Client Warrant for $9 million that will be recognized as revenue when the client becomes a publicly listed company, which is expected to occur in Fall 2024 Disbursed first dividend payment of $0.02 per share on May 3, 2024 Expanded partnership with Heart-Tech Health Engaged with Onside Content to develop AI-based content marketing evaluation and reporting index solution Signed 14th Go IPO Client Formed an Artificial Intelligence Software Development Division Management Commentary"We achieved significant strides in our Go IPO business, highlighted by the successful listing of one of our clients on the Nasdaq, which is the first Japanese IPO since September 2023 and the third IPO since the inception of this business," said HeartCore CEO Sumitaka Kanno Yamamoto. "We are hopeful that this milestone marks the genesis of a second wave of Japanese IPOs, as the Go IPO pipeline continues to show promising developments. Currently, we have three to four clients scheduled to go public by the end of the year. These Go IPO deals are expected to be instrumental in our second-half performance, and with an optimistic outlook on the resurgence of Japanese IPOs, we anticipate that our Go IPO business will play a key role in driving profitable returns in the upcoming quarter." "With 20% organic growth this quarter, and 30% organic growth expected for 2024, our software division continues to remain a stable growth engine and reliable source of cash flow, serving as the lifeblood of HeartCore's business operations. In addition, our strategic partnerships with Hitachi Systems and INCUDATA Corp., two prominent Japanese IT companies, will further enhance and innovate our software offerings, which will play a vital role in maintaining our 90% plus customer retention rate and separating ourselves from competitors. I am very encouraged by every arm within our software umbrella, as each one is projected to be profitable and has proven to deliver immense value to clients. The next few quarters look extremely bright for HeartCore; we look forward to sharing additional positive news around our Go IPO initiatives and other general operational updates." Second Quarter 2024 Financial ResultsRevenues were $4.1 million compared to $5.1 million in the same period last year. The decrease was primarily due to an approximate 10% depreciation on the Japanese yen and a decrease in maintenance and supporting services, as the Company entered into a significant maintenance service contract with an important customer in 2023. Additionally, although the organic software business has grown by more than 20%, the Company's subsidiary, Sigmaways recognized losses within its business, and one of the Company's GO IPO clients has returned its fees after discovering that it could not go public. Gross profit decreased to $0.8 million compared to $1.5 million in the same period last year. The decrease was primarily due to the aforementioned reasons above. Operating expenses decreased to $2.3 million compared to $3.0 million in the same period last year. The improvement was primarily due to lower selling and general and administrative expenses. Net loss was about $2.2 million or $(0.09) per diluted share compared to a net loss of $1.0 million or $(0.04) per diluted share, in the same period last year. As of June 30, 2024, the Company had cash and cash equivalents of $3.8 million compared to $1.0 million on December 31, 2023. Six-Months 2024 Financial ResultsRevenues were $9.1 million compared to $13.8 million in the same period last year. The decrease was primarily due to decreased revenues from Go IPO consulting services, as the Company received warrants from two IPO consulting customers who successfully listed on the Nasdaq in the same period last year, and a decrease in maintenance and supporting services, as the Company entered into a significant maintenance service contract with an important customer in 2023. Additionally, although the organic software business has grown by more than 20%, the Company's subsidiary, Sigmaways recognized losses within its business, and one of the Company's GO IPO clients has returned its fees after discovering that it could not go public. Gross profit was $2.8 million compared to $7.1 million in the same period last year. The decrease was primarily due to the aforementioned reasons above. Operating expenses decreased to $5.0 million compared to $6.3 million in the same period last year. The decrease was primarily due to lower selling and general and administrative expenses. Net loss was about $3.7 million or $(0.16) per diluted share compared to a net income of $0.8 million or $0.05 per diluted share, in the same period last year. About HeartCore Enterprises, Inc.Headquartered in Tokyo, Japan, HeartCore Enterprises is a leading enterprise software and consulting services company. HeartCore offers Software as a Service (SaaS) solutions to enterprise customers in Japan and worldwide. The Company also provides data analytics services that allow enterprise businesses to create tailored web experiences for their clients through best-in-class design. HeartCore's customer experience management platform (CXM Platform) includes marketing, sales, service and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. HeartCore also operates a digital transformation business that provides customers with robotics process automation, process mining and task mining to accelerate the digital transformation of enterprises. HeartCore's GO IPOSM consulting services helps Japanese-based companies go public in the U.S. Additional information about the Company's products and services is available at and https://heartcore-enterprises.com/. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, or the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believed," "intend," "expect," "anticipate," "plan," "potential," "continue," or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in HeartCore's filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond HeartCore's control which could, and likely will materially affect actual results, and levels of activity, performance, or achievements. Any forward-looking statement reflects HeartCore's current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. HeartCore assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein. HeartCore Investor Relations Contact:Gateway Group, Inc.Matt Glover and John 574-3860     HeartCore Enterprises, Inc.Consolidated Balance Sheets                       June 30,   December 31,       2024   2023       (Unaudited)       ASSETS               Current assets:           Cash and cash equivalents $ 3,806,349   $ 1,012,479     Accounts receivable   2,440,872     2,623,682     Investments in marketable securities   435,498     642,348     Investment in equity securities   -     300,000     Prepaid expenses   3,877,454     536,865     Current portion of long-term note receivable   100,000     100,000     Due from related party   40,495     44,758     Other current assets   199,221     234,761     Total current assets   10,899,889     5,494,893                 Non-current assets:           Accounts receivable, non-current   640,197     -     Property and equipment, net   640,787     763,730     Operating lease right-of-use assets   2,106,466     2,467,889     Intangible asset, net   4,196,875     4,515,625     Goodwill   3,276,441     3,276,441     Long-term investment in SAFE   350,000     -     Long-term investment in equity securities   300,000     -     Long-term investment in warrants   543,120     2,004,308     Long-term note receivable   200,000     200,000     Deferred tax assets   395,743     369,436     Security deposits   310,833     348,428     Long-term loan receivable from related party   145,274     182,946     Other non-current assets   70,309     71     Total non-current assets   13,176,045     14,128,874         -         Total assets $ 24,075,934   $ 19,623,767                 LIABILITIES AND SHAREHOLDERS' EQUITY               Current liabilities:           Accounts payable and accrued expenses $ 1,757,545   $ 1,757,038     Accounts payable and accrued expenses - related party   21,579     -     Accrued payroll and other employee costs   628,136     723,305     Due to related party   140     1,476     Short-term debt   -     135,937     Current portion of long-term debts   508,729     371,783     Insurance premium financing   112,488     -     Factoring liability   320,759     562,767     Operating lease liabilities, current   358,377     396,535     Finance lease liabilities, current   15,992     17,445     Income tax payables   1,142     162,689     Deferred revenue   2,207,420     2,166,175     Other current liabilities   9,261,012     216,405     Total current liabilities   15,193,319     6,511,555                 Non-current liabilities: