hopTo Inc. Announces Third
Quarter 2016 Business Update and Results
CAMPBELL, CA-(Marketwired -
Nov 21, 2016) - hopTo Inc. (OTCQB: HPTO), developer and provider of
the most comprehensive mobile productivity platform, today
announced its financial results for the third quarter ended
September 30, 2016.
Third Quarter 2016 Financial
Update:
- Revenue of $899
thousand
- Net Loss of $462
thousand
- Basic and diluted loss per
share of $0.05
Third Quarter 2016
Operational Summary and Business Update
"As we have previously
communicated to our shareholders in our August 15, 2016 earnings
call and our Form 10-Q filed with the Securities and Exchange
Commission ("SEC") as well as our other SEC filings, throughout the
first half of 2016 we did not succeed in monetizing our hopTo Work
product despite our best efforts with the limited resources
available to us," stated Eldad Eilam, President and CEO of hopTo
Inc.
"Despite this lack of success
with hopTo Work, 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. Owning and
operating GO-Global has always been an important aspect of our
overall company and provides us and our shareholders with some
hedge against the risk and expense of seeking to launch a new
product like hopTo Work."
"We continue to work to
extract value from the hopTo technology, intellectual property and
software that we have built. We are also evaluating opportunities
related to GO-Global. Although there is no certainty as to timing
or success of these efforts, and shareholders should not place any
significant reliance on the outcome of such efforts unless and
until definitive agreements are reached. This may include the sale
of certain of our hopTo software products, the sale of patents, and
the monetization of the GO-Global business or some combinations of
these transactions. To assist with the possible sale of patents we
have retained the services of Aqua Licensing LLC, a specialist in
the marketing and sales of IP portfolios. "
"Although we continue to
believe 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. Our Quarterly Report
on Form 10-Q that was filed on August 15, 2016 included additional
new risk factors in this regard. In addition, although our
GO-Global business continues to generate cash, due to our recent
conclusion that it is unlikely we will generate revenue from hopTo
Work in the reasonably foreseeable future, our Quarterly Report on
Form 10-Q which was filed today with the SEC 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 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. Although maintaining our SEC filing status is a
significant expense, we are considering all options to preserve
value for shareholders, including potentially suspending or
terminating our filing status, however we have not made any
decision to do so."
Results for the Nine Months
Ended September 30, 2016
In the nine months of Fiscal
Year 2016, the Company recognized $2.86 million in revenue, a
year-over-year decrease of approximately 28% from $3.96 million in
2015. This revenue is entirely from the Company's Go-Global
products and services and the decrease is due primarily to a number
of unique large orders which we received in the first half of 2015.
Gross profit for the first nine months of 2016 was $2.73 million,
compared to $3.64 million for the same period of 2015, a year over
year decrease of 25% commensurate with the change in
revenue.
For the nine months of 2016,
the Company reported an operating loss of $1.9 million, which was
an improvement of approximately 45% compared with the $3.49 million
loss from the same period last year.
The total operating expense
for the nine months of 2016 was $4.64 million, which is a
year-over-year improvement of $2.49 million from $7.13 million that
we reported for the same period in 2015.
Third Quarter Ended September
30, 2016
Total revenue for the third
quarter 2016 of $899 thousand represents a decrease of 20% from
$1.13 million for the same period in the prior year. This revenue
is entirely from the Company's Go-Global products and services and
the decrease is due primarily to a number of unique large orders
which we received in the second quarter of 2015.
Gross profit for the third
quarter of 2016 amounted to $890 thousand as compared to $1.02
million, for the same period in 2015.
Total operating expenses for
the third quarter were $1.4 million, compared to $2.23 million for
the same period in 2015.
hopTo reported a net loss for
the quarter ended June 30, 2016 of $462 thousand, or $0.05 per
basic and diluted share , compared to $1.21 million or $0.14 per
basic and diluted share for the same period in
2015.
As of September 30, 2016 the
Company had cash of $364 thousand and accounts receivable of $150
thousand.
Investor
Communications
As part of our continued
expense management, hopTo Inc. will not be hosting an investor
conference call to discuss its financial results for this
quarter.
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
for 48 hours after the filing of our Form 10-Q on November 21,
2016. 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 November 30,
2016. We will also post the answers at
investors.hopto.com.
About
hopTo:
Founded in its current form
in 2012, hopTo Inc. is an innovator of a unique mobile productivity
workspace platform. The hopTo mobile solution delivers an
unparalleled user experience without compromising enterprise
security. hopTo brings a new standard of mobile productivity by
enabling individuals to Search, Access, Create, Edit and Share
content from their mobile devices, efficiently and effectively, by
leveraging any combination of on-premise or cloud stored content,
documents and data as well as enterprise applications. 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 cause 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, 2015 and in other documents we have filed with the
SEC, including the new risk factors in our Quarterly Report on Form
10-Q for the quarter ended June 30, 2016 which was filed on August
15, 2016.
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hopTo Inc. |
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Condensed Consolidated
Balance Sheets |
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September
30, |
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December
31, |
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|
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2016 |
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2015 |
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(Unaudited) |
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(Unaudited) |
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Assets |
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Cash |
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$ |
364,100 |
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$ |
1,777,300 |
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Accounts receivable,
net |
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150,500 |
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434,900 |
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Prepaid
expenses |
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98,300 |
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|
139,200 |
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Total current
assets |
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612,900 |
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|
2,351,400 |
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Capitalized software,
net |
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- |
|
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|
20,800 |
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Property and equipment,
net |
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161,600 |
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|
252,500 |
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Other
assets |
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109,000 |
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|
109,000 |
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Total
assets |
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$ |
883,500 |
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$ |
2,733,700 |
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Liabilities and stockholders'
deficit |
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Accounts payable and accrued
liabilities |
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$ |
885,000 |
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$ |
1,018,000 |
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Deferred
revenue |
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1,705,100 |
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2,467,000 |
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Deferred
rent |
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61,600 |
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21,000 |
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Capital
lease |
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9,000 |
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8,400 |
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Other current
liabilities |
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392,900 |
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- |
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Total current
liabilities |
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3,053,600 |
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3,514,400 |
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Warrants
liability |
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- |
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31,600 |
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Deposit
liability |
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81,400 |
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|
81,400 |
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Deferred
revenue |
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1,704,600 |
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1,465,800 |
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Deferred
rent |
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9,300 |
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|
26,700 |
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Capital
lease |
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|
- |
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|
6,800 |
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Stockholders'
deficit |
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|
(3,965,400 |
) |
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(2,393,000 |
) |
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Total liabilities and
stockholders' deficit |
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$ |
883,500 |
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$ |
2,733,700 |
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Condensed Consolidated
Statements of Operations |
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Three Months Ended Sep
30, |
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Nine Months Ended Sep
30, |
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2016 |
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2015 |
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2016 |
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2015 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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| Revenue |
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$ |
898,500 |
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$ |
1,128,800 |
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$ |
2,864,400 |
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$ |
3,958,700 |
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| Costs of
revenue |
|
|
8,300 |
|
|
|
108,900 |
|
|
|
129,500 |
|
|
|
319,200 |
|
| Gross
profit |
|
|
890,200 |
|
|
|
1,019,900 |
|
|
|
2,734,900 |
|
|
|
3,639,500 |
|
| Operating
expenses |
|
|
|
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|
|
|
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|
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| Selling and
marketing |
|
|
93,900 |
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|
419,800 |
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|
664,600 |
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|
1,373,500 |
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| General and
administrative |
|
|
821,600 |
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|
773,300 |
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|
2,114,600 |
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|
2,452,400 |
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| Research and
development |
|
|
491,500 |
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|
1,038,400 |
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|
1,860,900 |
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|
3,304,500 |
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| Total operating
expenses |
|
|
1,407,000 |
|
|
|
2,231,500 |
|
|
|
4,640,100 |
|
|
|
7,130,400 |
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| Loss from
operations |
|
|
(516,800 |
) |
|
|
(1,211,600 |
) |
|
|
(1,905,200 |
) |
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|
(3,490,900 |
) |
| Other income (expense) -
change in fair value of warrants liability |
|
|
54,400 |
|
|
|
(2,400 |
) |
|
|
29,300 |
|
|
|
126,900 |
|
| Other income (expense),
net |
|
|
1,100 |
|
|
|
200 |
|
|
|
3,700 |
|
|
|
(100 |
) |
| Loss before provision for
income tax |
|
|
(461,300 |
) |
|
|
(1,213,800 |
) |
|
|
(1,872,200 |
) |
|
|
(3,364,100 |
) |
| Provision for income
tax |
|
|
700 |
|
|
|
700 |
|
|
|
2,300 |
|
|
|
3,300 |
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| Net loss |
|
$ |
(462,000 |
) |
|
$ |
(1,214,500 |
) |
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$ |
(1,874,500 |
) |
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$ |
(3,367,400 |
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| Basic and diluted loss per
share |
|
$ |
(0.05 |
) |
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$ |
(0.14 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.42 |
) |
| Average weighted common
shares outstanding - basic and diluted |
|
|
9,784,163 |
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|
|
8,937,264 |
|
|
|
9,763,111 |
|
|
|
8,006,689 |
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Investors /
Media:
J.L. Casabonne
investors@hopto.com
408-688-2674 ext.
5025
hopTo (CE) (USOTC:HPTO)
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