NEW YORK and TOKYO, May 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 first quarter ended March 31, 2024. First Quarter 2024 and Recent Operational Highlights Sold a Go IPO Client Warrant for $9 million. During the first quarter ended March 31, 2024, the Company received $5 million, with the remaining $4 million received in April 2024. Due to specific accounting treatments and stipulations in the warrant agreement, HeartCore will not recognize the $9 million as revenue on the balance sheet until 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 Formed an Artificial Intelligence Software Development Division Signed 12th, 13th, and 14th Go IPO Contract Established HeartCore Luvina Vietnam Co., Ltd., a joint venture with Luvina Software Joint Stock Company Signed with Toshiba Elevator and Building Systems Corporation to implement its CMS platform Management Commentary"The first quarter brought promising developments for our software business, marking a pivotal shift as this division turned profitable for the quarter," said HeartCore CEO Sumitaka Kanno Yamamoto. "This success stems from our proactive cost reduction initiatives without having taken our foot off the gas pedal from a sales & marketing standpoint, which have significantly improved our margins in this division. Moreover, the establishment of two new divisions within HeartCore has bolstered this momentum, demonstrating encouraging traction since its inception and contributing to the profitability of our software arm. We believe that our strategic joint venture and partnership with Luvina Software Joint Stock Company offers a dependable and cost-effective IT outsourcing and software development partner, with forecasts projecting roughly $1 million in sales within its first year, which is all attributable to HeartCore's P&L. Additionally, our recently formed AI software development division has already secured two deals within its first month, signaling promising opportunities for further expansion of our enterprise software capabilities and customer portfolio." "Additionally, though the optics of our quarterly results reflect a decline, it's crucial to note that these figures do not encompass the significant sale of a Go IPO client warrant in March that totaled $9 million. As we explained in a previous press release yesterday, a total of $9 million was received by our team following the sale of a Go IPO's client's warrants in Q1 2024, but due to specific accounting treatments and stipulations, we cannot record this amount as revenue unless and until the client goes public. Despite this accounting nuance, we've already put the capital to work by allocating it to various strategic initiatives, including our dividend payment which was disbursed on May 3rd." First Quarter 2024 Financial ResultsRevenues were $5.0 million compared to $8.7 million in the same period last year. The decrease was primarily due to lower revenues from GO IPO consulting services as the Company's two IPO consulting customers successfully listed on the Nasdaq in the same quarter last year, offset by increases in revenue from the sale of on-premises software, and customized software development and services. Gross profit decreased to $2.0 million compared to $5.6 million in the same period last year. The decrease was primarily due to the aforementioned reason above. Operating expenses decreased to $2.7 million compared to $3.3 million in the same period last year. The decrease was primarily due to lower selling expenses and general and administrative expenses. Net loss was about $1.5 million or $(0.06) per diluted share compared to a net income of $1.8 million or $0.10 per diluted share, in the same period last year. As of March 31, 2024, the Company had cash and cash equivalents of $1.2 million compared to $1.0 million on December 31, 2023. 2024 Strategic OutlookHeartCore CEO Sumitaka Kanno Yamamoto added: "Looking forward to the remainder of the year, our focus remains on expanding our enterprise software business through ongoing cost reduction strategies and identifying synergistic opportunities with our subsidiaries and divisions to optimize operational efficiencies and capabilities. Building on the momentum of a profitable quarter within this arm, we remain committed to sustaining this trajectory throughout 2024 as we strive towards overall profitability. Additionally, our dedicated Go IPO team continues to uphold its white-glove approach, guiding our expanding pipeline of clients through the comprehensive IPO process. With an optimistic outlook on the IPO market, we anticipate announcing the completion of several IPOs this year and reaping the benefits of additional Go IPO warrants." 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     March 31,     December 31,     2024     2023     (Unaudited)       ASSETS             Current assets:           Cash and cash equivalents $ 1,219,251     $ 1,012,479   Accounts receivable   3,086,203       2,623,682   Investments in marketable securities   408,266       642,348   Investment in equity securities   -       300,000   Prepaid expenses   3,942,371       536,865   Current portion of long-term note receivable   100,000       100,000   Due from related party   41,948       44,758   Other current assets   223,222       234,761   Total current assets   9,021,261       5,494,893               Non-current assets:           Property and equipment, net   688,826       763,730   Operating lease right-of-use assets   2,271,955       2,467,889   Intangible asset, net   4,356,250       4,515,625   Goodwill   3,276,441       3,276,441   Long-term investment in equity securities   300,000       -   Long-term investment in warrants   1,325,421       2,004,308   Long-term note receivable   200,000       200,000   Deferred tax assets   381,307       369,436   Security deposits   325,267       348,428   Long-term loan receivable from related party   160,974       182,946   Other non-current assets   22,566       71   Total non-current assets   13,309,007       14,128,874               Total assets $ 22,330,268     $ 19,623,767               LIABILITIES AND SHAREHOLDERS' EQUITY             Current liabilities:           Accounts payable and accrued expenses $ 2,015,959     $ 1,757,038   Accrued payroll and other employee costs   550,916       723,305   Due to related party   256       1,476   Short-term debt   66,081       135,937   Current portion of long-term debts   446,601       371,783   Insurance premium financing   157,917       -   Factoring liability   179,414       562,767   Operating lease liabilities, current   374,671       396,535   Finance lease liabilities, current   16,512       17,445   Income tax payables   150,174       162,689   Deferred revenue   1,791,697       2,166,175   Other current liabilities   5,268,130       216,405   Total current liabilities   11,018,328       6,511,555               Non-current liabilities:           Long-term debts