hopTo Inc. Announces Fiscal Year 2016 Results
April 7, 2017
CAMPBELL, Calif. – April 7, 2017 – hopTo Inc. (OTCQB: HPTO), developer and provider of application publishing and mobile productivity software today announced its financial results for the year ended December 31, 2016.
Revenue of $4.0 million
Net Loss of $1.9 million
Basic and diluted loss per share of $0.19
Fiscal Year 2016 Operational Summary and Business Update:
"Our efforts to extract value from the intellectual property and software that we have built continuted throughout Q4 of 2016 and continue today. In the second half of 2016 we retained the services of Aqua Licensing LLC to assist with the possible sale of our patent portfolio and that process is still ongoing," stated Eldad Eilam, President and CEO of hopTo Inc.
"Our GO-Global business continues to generate positive cash flow and, while it is seeing some reduction in revenue, we expect it to continue to generate cash. GO-Global continues to be an important aspect of our overall company and we believe that it will continue to operate profitably in the future. We are also evalutating opportunities related to GO-Global."
"During Q4 2016, we have effectively ceased all of our sales, marketing and R&D efforts for the hopTo products, and at this time we do not expect any meaningful revenues from these products in the foreseeable future. We continue to own all hopTo-related IP including source-code, related patents, and the relevant trademarks."
"Although we continue to believe that we have a number of opportunities to extract value from our hopTo and GO-Global assets, there are significant risks and uncertainties associated with those efforts. Shareholders should not place any significant reliance on the outcome of such efforts unless and until definitive agreements are reached. Our Annual Report on Form 10-K that was filed with the SEC today includes additional new risk factors in this regard. 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 continues to include 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 tpreserve 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."
for the Year Ended December 31, 2016
In Fiscal Year 2016, the Company recognized $4.0 million in revenue, a year-over-year decrease of approximately 20% from $5.0 million in 2015.
Gross profit for 2016 was $3.8 million, or 96% of revenues, as compared to $4.4 million, or 88% of revenues, for 2016.
For 2016, the Company reported an operating loss of $1.9 million, which was an improvement of approximately 59% compared with the $4.4 million loss from 2015.
The total operating expense for 2016 was $5.7 million, which is a year-over-year improvement of $3.2 million from $8.9 million that we reported for 2015.
Gross profit for As of December 31, 2016 the Company had cash of $546 thousand and accounts receivable of $355 thousand.
As part of our continued expense management, hopTo Inc. will not be hosting an investor conference call to discuss its year end financial results.
As we did with our Q3 2016 results, in lieu of a conference call, we invite shareholders to submit questions via email to the following email address: email@example.com
We will accumulate questions until the end of the day on Tuesday, April 11, 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 April 19, 2016. We will also post the answers at investors.hopto.com.
Founded in its current form in 2012, hopTo Inc. is an developer of application publishing software and 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 statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. 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 cuase such a difference include the following: our lack of cash resources makes it extremely difficult to execute on our efforts to extract value from our hopTo and Go-Global assets, and creates risks that we may be unable to realize full value for such assets; we may be unable to manage our expenses to a degree to preserve our opportunities to extract value from our assets, and may be forced to sell them at unfavorable prices; there is no assurance that any transaction will be achieved for any hopTo assets in a timely manner, on reasonable terms, or at all; 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.
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|Condensed Consolidated Balance Sheets|
|Accounts receivable, net||355,300||434,900|
|Total current assets||940,200||2,351,400|
|Capitalized software, net||-||20,800|
|Property and equipment, net||143,300||252,500|
|Liabilities and stockholders’ equity (deficit)|
|Accounts payable and accrued liabilities||$||975,800||$||1,012,100|
|Deferred revenue – current||1,759,000||2,467,000|
|Other current liabilities||571,100||-|
|Total current liabilities||3,336,800||3,514,400|
|Deferred revenue – long term||1,694,600||1,465,800|
|Deferred rent – long-term||2,600||26,700|
|Stockholders’ equity (deficit)||(3,922,900)||(2,393,000)|
|Total liabilities and stockholders’ equity (deficit)||$||1,192,500||$||2,733,700|
|Condensed Consolidated Statements of Operations|
|Twelve Months Ended December 31,|
|Costs of revenue||162,600||609,400|
|Selling and marketing||774,400||1,588,200|
|General and administrative||2,759,200||3,136,600|
|Research and development||2,187,900||4,224,000|
|Total operating expenses||5,721,500||8,948,800|
|Loss from operations||(1,882,800)||(4,577,200)|
|Other income – change in fair value of warrants liability||29,300||190,300|
|Other income (expense), net||3,400||(500)|
|Loss before provision for income tax||(1,850,100)||(4,387,400)|
|Provision for income tax||2,800||3,700|
|Basic and diluted earnings (loss) per share||$||(0.19)||$||(0.52)|
|Average weighted shares outstanding – basic and diluted||9,770,076||8,437,390|