HTCR HEARTCORE ENTERPRISES INC

HeartCore Reports First Quarter 2025 Financial Results

HeartCore Reports First Quarter 2025 Financial Results

NEW YORK and TOKYO, May 15, 2025 (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 first quarter ended March 31, 2025.

First Quarter 2025 and Recent Operational & Financial Highlights

  • strategic partnership with NEC Solutions Innovators, Ltd. to enhance CMS implementation process
  • new business development team aimed at strengthening customer success across HeartCore’s CMS business
  • plans to expand the Go IPO consulting business into South Korea. The Company adjusted its scheduled South Korea IPO seminar event to September 2025

Management Commentary

HeartCore CEO Sumitaka Kanno commented: “We continued to make meaningful strategic advancements across our software business this quarter, the cornerstone of HeartCore Enterprises. Building on the foundational improvements implemented last year, we launched a dedicated business development team this past quarter focused on strengthening customer success initiatives to better serve our CMS customers and maintain our strong retention rate. Our subsidiary Sigmaways has also made encouraging progress in reducing costs and has narrowed its losses compared to the same period last year. We will continue to closely monitor and prudently manage costs across Sigmaways’ operations. The deficit on our balance sheet this quarter does not directly reflect the performance of our core business but is rather attributable to the SBC Medical Group shares we hold. The subsequent decline in their stock price has ultimately reduced the value of the assets held by HeartCore. Nevertheless, these shares continue to offer additional liquidity options if needed. Furthermore, a few of our Go IPO clients are expected to begin trading in 2025, which will in turn provide us with additional equity in these companies following their listings. With our upcoming South Korea IPO seminar scheduled for September, we are preparing our efforts to expand our footprint beyond Japan into new APAC regions. We look forward to announcing incremental updates across both businesses throughout the rest of the year.”  

First Quarter 2025 Financial Results

Revenues were $3.6 million compared to $5.0 million in the same period last year. The decrease was primarily due to decreased on-premise software revenue, decreased customized software development and services revenue attributed to the business slowdown of Sigmaways, and decreased Go IPO consulting services revenue as no new IPO consulting orders were entered this quarter.

Gross profit was $1.1 million compared to $2.0 million in the same period last year. The decrease was primarily due to a decrease of gross profit from on-premises software and Go IPO consulting services.

Operating expenses decreased 14% to $2.3 million, compared to $2.7 million in the same period last year. The improvement was primarily due to a decrease in general and administrative expenses.

Net loss was $3.1 million, compared to $1.5 million in the same period last year, as a result of the aforementioned decrease in revenue and gross profit for the quarter.

Adjusted EBITDA for the year totaled a loss of $1.3 million, compared to a loss of $0.3 million in the same period last year.

As of March 31, 2025, the Company had cash and cash equivalents of $0.7 million, compared to $2.1 million on December 31, 2024.

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 .

Non-GAAP Financial Measures Disclaimer

This document includes references to adjusted EBITDA, which is a non-GAAP financial measure. For the purposes of this presentation, adjusted EBITDA is calculated by adjusting net loss to exclude depreciation and amortization, impairment of intangible asset, and impairment of goodwill.

This measure is presented as supplemental information and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

Management believes that this adjusted EBITDA provides useful information to investors by highlighting the company’s core operational performance, excluding non-cash and non-recurring items. However, non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

ItemFY25 Q1FY24 Q1
Net Loss-$3.1 million-$1.5 million
(+) Depreciation and amortization expense$0.0 million$0.2 million
(+) Changes in fair value of investments in marketable securities$1.8 million$0.2 million
(+) Changes in fair value of investment in warrants$0.1 million$0.7 million
(+) Interest income$0.0 million$0.0 million
(+) Interest expenses$0.0 million$0.0 million
Adjusted EBITDA-$1.3 million-$0.3 million



Forward-Looking Statements


This 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 Yi



(949) 574-3860

       
 HeartCore Enterprises, Inc. 
 Consolidated Balance Sheets 
       
   March 31, December 31, 
   2025 2024 
   (Unaudited)   
 ASSETS 
       
 Current assets:     
 Cash and cash equivalents$738,984 $2,121,089  
 Accounts receivable 2,114,655  1,950,050  
 Investments in marketable securities 2,251,276  4,495,703  
 Prepaid expenses 537,970  458,839  
 Current portion of long-term note receivable 100,000  100,000  
 Due from related party 42,453  40,139  
 Other current assets 278,961  251,545  
 Total current assets 6,064,299  9,417,365  
       
 Non-current assets:     
 Accounts receivable, non-current 694,302  752,930  
 Property and equipment, net 438,243  584,854  
 Operating lease right-of-use assets 1,830,486  1,936,097  
 Long-term investment in warrants 526,165  577,786  
 Long-term note receivable 100,000  100,000  
 Deferred tax assets 115,802  152,300  
 Security deposits 325,441  307,996  
 Long-term loan receivable from related party 120,459  123,928  
 Other non-current assets 7,810  11,778  
 Total non-current assets 4,158,708  4,547,669  
       
 Total assets$10,223,007 $13,965,034  
       
 LIABILITIES AND SHAREHOLDERS' EQUITY 
       
 Current liabilities:     
 Accounts payable and accrued expenses$1,839,759 $2,039,323  
 Accounts payable and accrued expenses - related party 22,814  47,199  
 Accrued payroll and other employee costs 517,436  675,502  
 Due to related parties 239  932  
 Short-term debt 134,689  -  
 Short-term debt - related party 75,000  75,000  
 Current portion of long-term debts 367,871  401,255  
 Insurance premium financing 127,567  16,626  
 Factoring liability 127,053  172,394  
 Operating lease liabilities, current 279,840  371,951  
 Finance lease liabilities, current 16,932  15,956  
 Income tax payables 739,450  822,014  
 Deferred revenue 1,437,248  1,876,490  
 Other current liabilities 1,009,373  907,080  
 Total current liabilities 6,695,271  7,421,722  
       
 Non-current liabilities:     
 Long-term debts 1,166,678  1,238,813  
 Operating lease liabilities, non-current 1,600,977  1,614,996  
 Finance lease liabilities, non-current 41,854  43,593  
 Other non-current liabilities 117,940  183,895  
 Total non-current liabilities 2,927,449  3,081,297  
       
 Total liabilities 9,622,720  10,503,019  
       
 Shareholders' equity:     
 Preferred shares ($0.0001 par value, 20,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024) -  -  
 Common shares ($0.0001 par value, 200,000,000 shares authorized; 22,075,333 and 21,937,987 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively) 2,207  2,193  
 Subscription receivable -  (103,942) 
 Additional paid-in capital 20,835,864  20,656,153  
 Accumulated deficit (19,331,835) (16,244,843) 
 Accumulated other comprehensive income 334,685  343,936  
 Total HeartCore Enterprises, Inc. shareholders' equity 1,840,921  4,653,497  
 Non-controlling interests (1,240,634) (1,191,482) 
 Total shareholders' equity 600,287  3,462,015  
       
 Total liabilities and shareholders' equity$10,223,007 $13,965,034  
       



 HeartCore Enterprises, Inc. 
 Unaudited Consolidated Statements of Operations and Comprehensive Loss 
        
        
   For the three months ended March 31,   For the three months ended March 31, 
   2025  2024 
        
 Revenues$3,587,026  $5,046,732  
 Cost of revenues 2,486,742   3,014,543  
 Gross profit 1,100,284   2,032,189  
        
 Operating expenses:      
 Selling expenses 291,160   219,707  
 General and administrative expenses 1,929,388   2,406,303  
 Research and development expenses 123,893   89,134  
 Total operating expenses 2,344,441   2,715,144  
        
 Loss from operations (1,244,157)  (682,955) 
        
 Other income (expenses):      
 Changes in fair value of investments in marketable securities (1,781,664)  (234,082) 
 Changes in fair value of investment in warrants (51,621)  (678,887) 
 Interest income 3,020   2,594  
 Interest expenses (29,133)  (36,661) 
 Other income 35,359   97,016  
 Other expenses (12,549)  (25,194) 
 Total other expenses (1,836,588)  (875,214) 
        
 Loss before income tax expense (benefit) (3,080,745)  (1,558,169) 
        
 Income tax expense (benefit) 56,636   (80,167) 
        
 Net loss (3,137,381)  (1,478,002) 
 Less: net loss attributable to non-controlling interests (50,389)  (144,652) 
 Net loss attributable to HeartCore Enterprises, Inc.$(3,086,992) $(1,333,350) 
        
 Other comprehensive income (loss):      
 Foreign currency translation adjustment (8,014)  10,295  
        
 Total comprehensive loss (3,145,395)  (1,467,707) 
 Less: comprehensive loss attributable to non-controlling interests (49,152)  (149,563) 
 Comprehensive loss attributable to HeartCore Enterprises, Inc.$(3,096,243) $(1,318,144) 
        
 Net loss per common share attributable to HeartCore Enterprises, Inc.     
 Basic$(0.14) $(0.06) 
 Diluted$(0.14) $(0.06) 
        
 Weighted average common shares outstanding      
 Basic 22,054,029   20,854,714  
 Diluted 22,054,029   20,854,714  
        



 HeartCore Enterprises, Inc. 
 Unaudited Consolidated Statements of Cash Flows 
       
   For the three months ended March 31, For the three months ended March 31, 
   2025 2024 
       
 Cash flows from operating activities:     
 Net loss$(3,137,381)$(1,478,002) 
 Adjustments to reconcile net loss to net cash flows     
 used in operating activities:     
 Depreciation and amortization expenses 26,907  188,085  
 Loss on disposal of property and equipment 117,305  -  
 Amortization of debt issuance costs 1,222  1,173  
 Non-cash lease expense 90,508  93,133  
 Gain on termination of lease (9,059) (469) 
 Deferred income taxes 43,932  (80,780) 
 Stock-based compensation 32,280  91,712  
 Changes in fair value of investments in marketable securities 1,781,664  234,082  
 Changes in fair value of investment in warrants 51,621  678,887  
 Gain on settlement of asset retirement obligations (45,873) -  
 Changes in assets and liabilities:     
 Accounts receivable (14,678) (523,110) 
 Prepaid expenses 78,792  102,028  
 Other assets (13,759) (18,618) 
 Accounts payable and accrued expenses (219,830) 295,799  
 Accounts payable and accrued expenses - related party (24,224) -  
 Accrued payroll and other employee costs (178,339) (149,603) 
 Due to related parties (702) (1,161) 
 Operating lease liabilities (84,948) (90,035) 
 Income tax payables (84,284) (2,387) 
 Deferred revenue (496,079) (300,011) 
 Other liabilities 84,134  60,658  
 Net cash flows used in operating activities (2,000,791) (898,619) 
       
 Cash flows from investing activities:     
 Net proceeds from sale of warrants -  1,640,000  
 Proceeds from sale of marketable securities 462,763  -  
 Repayment of loan provided to related party 10,298  10,814  
 Net cash flows provided by investing activities 473,061  1,650,814  
       
 Cash flows from financing activities:     
 Payments for finance leases (4,071) (4,474) 
 Proceeds from short-term debt 134,689  68,138  
 Repayment of short-term and long-term debts (165,165) (207,486) 
 Repayment of insurance premium financing (28,559) (14,772) 
 Net repayment of factoring arrangement (45,341) (383,353) 
 Capital contribution from non-controlling shareholder -  67,195  
 Proceeds from issuance of common shares 30,445  -  
 Proceeds from collection of subscription receivable 103,942  -  
 Proceeds from exercise of stock options 117,000  -  
 Net cash flows provide by (used in) financing activities 142,940  (474,752) 
       
 Effect of exchange rate changes 2,685  (70,671) 
       
 Net change in cash and cash equivalents (1,382,105) 206,772  
       
 Cash and cash equivalents - beginning of the period 2,121,089  1,012,479  
       
 Cash and cash equivalents - end of the period$738,984 $1,219,251  
   -    
 Supplemental cash flow disclosures:     
 Interest paid$22,857 $37,098  
 Income taxes paid$93,586 $117,524  
       
 Non-cash investing and financing transactions     
 Operating lease right-of-use assets obtained in exchange for operating lease liabilities$- $125,735  
 Insurance premium financing$139,500 $172,689  
       


EN
15/05/2025

Underlying

To request access to management, click here to engage with our
partner Phoenix-IR's CorporateAccessNetwork.com

Reports on HEARTCORE ENTERPRISES INC

 PRESS RELEASE

HeartCore Signs 15th Go IPO Contract

HeartCore Signs 15th Go IPO Contract NEW YORK and TOKYO, June 03, 2025 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or the “Company”), a leading enterprise software and data consulting services company based in Tokyo, announced that it has signed an agreement (“Consulting Agreement”) with tmsuk Co. Ltd. (“tmsuk”) for its 15th Go IPO consulting service win. As compensation for its services, tmsuk will pay HeartCore an aggregate of $500,000 in fees, and issue to HeartCore a warrant to acquire 3% of tmsuk’s capital stock, on a fully diluted basis. The warrant,...

 PRESS RELEASE

HeartCore Reports First Quarter 2025 Financial Results

HeartCore Reports First Quarter 2025 Financial Results NEW YORK and TOKYO, May 15, 2025 (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 first quarter ended March 31, 2025. First Quarter 2025 and Recent Operational & Financial Highlights strategic partnership with NEC Solutions Innovators, Ltd. to enhance CMS implementation process new business development team aimed at strengthening customer success across HeartCore’s CMS busine...

 PRESS RELEASE

HeartCore to Present at Sidoti Micro-Cap Virtual Conference on May 21,...

HeartCore to Present at Sidoti Micro-Cap Virtual Conference on May 21, 2025 at 11:30 a.m. ET NEW YORK and TOKYO, May 07, 2025 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading enterprise software and data consulting services company based in Tokyo, will be virtually presenting and holding one-on-one meetings at the on May 21-22, 2025. HeartCore Chief Executive Officer, Sumitaka Yamamoto, is scheduled to present on Wednesday, May 21, 2025 at 11:30 a.m. Eastern time. The presentation will be webcast and available for replay . To regi...

 PRESS RELEASE

HeartCore to Present in the Centri Capital Conference on April 22, 202...

HeartCore to Present in the Centri Capital Conference on April 22, 2025 at 9:30 a.m. ET NEW YORK and TOKYO, April 09, 2025 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading enterprise software and data consulting services company based in Tokyo, will be presenting and holding one-on-one meetings at the on April 22, 2025, at the Nasdaq headquarters in New York City. Company CEO Sumitaka Kanno is scheduled to present on Tuesday, April 22, 2025, at 9:30 a.m. Eastern time, with in-person one-on-one meetings to be held throughout the con...

 PRESS RELEASE

HeartCore Announces Strategic Partnership with NEC Solution Innovators...

HeartCore Announces Strategic Partnership with NEC Solution Innovators, Ltd. to Enhance CMS Implementation Process NEW YORK and TOKYO, April 07, 2025 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading enterprise software and data consulting services company based in Tokyo, announced a strategic partnership with NEC Solutions Innovators, Ltd. (“NEC Solutions”), a Japanese information and communication technology (“ICT”) systems integrator, effective March 2025. As businesses continue to embrace digital transformation to improve custo...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch