NEW YORK and TOKYO, April 08, 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 fourth quarter and full year ended December 31, 2023 and outlined its strategic priorities for a robust 2024. Fourth Quarter 2023 and Recent Operational Highlights Full year 2023 revenue of $21.8 million, up 148% compared to full year 2022 Strong growth from enterprise software business Formed Artificial Intelligence (AI) Software Development Division Authorized a dividend payment Signed 13th Go IPO contract and signed 12th Go IPO contract Announced the sale of Go IPO client warrant for $9 million Established HeartCore Luvina Vietnam Co., Ltd. as part of its global sales expansion initiative Signed Toshiba Elevator and Building Systems Corporation to implement its CMS platform Extended partnership with TOPPAN Inc. to jointly promote Dashiwake platform Implemented new function to enhance its flagship HeartCore CMS platform Announced its subsidiary Sigmaways signed binding MOU with Actiquest Announced its subsidiary Sigmaways launched Psyche60s VR experience Announced its subsidiary Sigmaways signed Heart-Tech Health and Coherent Health Launched Dashiwake platform into the U.S. and Japanese markets Awarded 8th consecutive top market share for its CMS platform Full Year 2023 Financial ResultsRevenues increased 147.7% to $21.8 million compared to $8.8 million in the same period last year. The increase was primarily due to an increase in Go IPO consulting service revenues and received warrants from customers, and an increase from customized software development and services as a result of Sigmaways and its subsidiaries. Gross profit increased 140.7% to $8.1 million from $3.4 million in the same period last year. The increase was primarily due to an increase in Go IPO consulting service revenues and received warrants from customers, and an increase from customized software development and services as a result of Sigmaways and its subsidiaries. Operating expenses increased to $12.2 million from $10.0 million in the same period last year. The increase was primarily due to increases in general and administrative expenses and research and development expenses, offset by a decrease in selling expenses. Net loss was about $4.9 million or $(0.21) per diluted share compared to a net loss of $6.7 million or $(0.37) per diluted share, in the same period last year. As of December 31, 2023, the Company had cash and cash equivalents of $1.0 million compared to $7.2 million in December 31, 2022. Management Commentary"Over the past year, our operational footprint has extended beyond Japan into the dynamic U.S. markets, marked by the strategic acquisition of Sigmaways and the partnership with Sabatini Global's sales and marketing team," said CEO Sumitaka Kanno Yamamoto. "These pivotal moves have significantly bolstered and diversified our enterprise software business' revenue streams and reduced our reliance solely on sales from Japan, a trend we have carried into 2024. Nonetheless, we have sustained our dominance and have achieved top market share status for the CMS platform segment in Japan for the 8th consecutive year. Despite challenges such as the ongoing depreciation of the yen against the dollar, we have consistently experienced year-over-year top-line growth since becoming a publicly traded company. "On the Go IPO front, we have signed and engaged with 10 new clients, with additional companies in the pipeline, showcasing the robust demand among Japanese companies seeking listings on major U.S. exchanges. While macro-economic factors presented some uncontrollable hurdles for our clients, which resulted in a limited revenue influx for us this year, the recent sale of a $9 million warrant underscores the revenue-generating potential of our consulting business. As we navigate through these challenging market conditions, we remain committed to supporting our valued clients through the listing process with our white glove approach." Full Year 2024 Strategic Priorities Maintain improved cost structure from synergies with the recently established HeartCore Luvina Vietnam, a high-quality and low-cost IT outsourcing provider Capitalize on strong organic growth opportunities within the enterprise software business through newly established Artificial Intelligence Software Division Expand upon the Go IPO business with the U.S. IPO markets expected to improve in 2024 Sustain market share as the number one CMS provider in Japan while fueling global expansion Full Year 2024 OutlookIn anticipation of a robust 2024, HeartCore is poised to capitalize on its strong momentum within the enterprise software sector. The recently established HeartCore Luvina Vietnam joint venture and its low-cost, high-quality IT outsourcing capabilities is primed to contribute to the financial resiliency of the Company. With access to 850 talented software engineers, this joint venture is expected to significantly elevate the Company's global sales expansion efforts. Additionally, the AI software division is positioned to unlock a fresh revenue stream within the U.S. and Japanese markets, with opportunities to upsell other HeartCore software. As part of its growth strategy, HeartCore remains vigilant for synergistic M&A opportunities that seamlessly complement the expanding software business. Successful client listings through the Go IPO business have proven to be a lucrative venture, with the first quarter of 2023 witnessing two successful listings yielding over $5 million in revenue alone. More recently, the Company sold a Go IPO client warrant totaling $9 million in revenue, scheduled to materialize in the first quarter of 2024. Despite a sluggish IPO market in 2023, market sentiment is now shifting toward a more favorable outlook for 2024. With 10 companies currently in the Go IPO pipeline, HeartCore continues to actively expand its reach in the Japanese markets to bolster its pipeline. Though projections and timing of listings remains uncertain due to lingering market uncertainties, HeartCore remains optimistic about the continued financial potential and benefits of its Go IPO business throughout 2024. "We find ourselves amidst a transformative phase," added Yamamoto. "The outset of 2024 demonstrates significant promise, bolstered by a resilient balance sheet derived from our two-pronged business model and ongoing global expansion of the HeartCore brand. Our adept cash management strategies have led us to authorize our inaugural dividend payment, with plans for additional quarterly payments, contingent upon macro-economic factors and the financial standing of the Company. Building upon the growth momentum seen this past year, we eagerly anticipate sharing strong first-quarter results ahead." 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       December 31,2023     December 31,2022   ASSETS                 Current assets:                 Cash and cash equivalents   $ 1,012,479     $ 7,177,326   Accounts receivable     2,623,682       551,064   Investments in marketable securities     642,348       -   Investment in equity securities     300,000       -   Prepaid expenses     536,865       538,230   Current portion of long-term note receivable     100,000       -   Due from related party     44,758       48,447   Other current assets     234,761       220,070   Total current assets     5,494,893       8,535,137                     Non-current assets:                 Property and equipment, net     763,730       203,627   Operating lease right-of-use assets     2,467,889       2,644,957   Intangible asset, net     4,515,625       -   Goodwill     3,276,441       -   Long-term investment in warrants     2,004,308       -   Long-term note receivable     200,000       -   Deferred tax assets     369,436       263,339   Security deposits     348,428       244,395   Long-term loan receivable from related party     182,946       246,472   Other non-current assets     71       661   Total non-current assets     14,128,874       3,603,451                     Total assets   $ 19,623,767     $ 12,138,588                     LIABILITIES AND SHAREHOLDERS' EQUITY                                   Current liabilities:                 Accounts payable and accrued expenses   $ 1,757,038     $ 497,742   Accrued payroll and other employee costs     723,305       360,222   Due to related party     1,476       402   Short-term debt     135,937       -   Current portion of long-term debts     371,783       697,877   Factoring liability     562,767       -   Operating lease liabilities, current     396,535       291,863   Finance lease liabilities, current     17,445       19,294   Income tax payables     162,689       2,747   Deferred revenue     2,166,175       1,724,519   Other current liabilities     216,405       53,027   Total current liabilities     6,511,555       3,647,693                     Non-current liabilities:                 Long-term debts     1,770,352       1,123,735   Operating lease liabilities, non-current     2,135,160       2,421,054   Finance lease liabilities, non-current     66,779       459   Deferred tax liabilities