UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 14, 2017
hopTo Inc.
(Exact Name of Registrant as Specified in Charter)
| Delaware | 0-21683 | 13-3899021 | ||
| (State
or Other Jurisdiction of Incorporation) |
Commission File Number |
(IRS
Employer Identification No.) |
| 6 Loudon Road, Suite 200 | ||
| Concord, NH | 03301 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (800) 472-7466
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On November 14, 2017, we issued a press release announcing our financial results for the three-month period ended September 30, 2017. A copy of the press release is being furnished as Exhibit 99.1 to this report and incorporated herein by reference. The information contained in this report on Form 8-K, including the Exhibit, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by HopTo Inc. under the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| 99.1 | Press Release issued by the Registrant on November 14, 2017. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| hopTo Inc. | ||
| Dated: November 14, 2017 | By: | /s/ Jean-Louis Casabonne |
| Jean-Louis Casabonne | ||
| Interim Chief Executive Officer | ||
| Chief Financial Officer, Secretary | ||
Exhibit Index
| Exhibit No. | Description | |
| 99.1 | Press Release issued by the Registrant on November 14, 2017. |
hopTo Inc. Announces Third Quarter 2017 Business Update and Results
CONCORD, N.H., Nov. 14, 2017 (GLOBE NEWSWIRE) -- hopTo Inc. (OTCQB:HPTO), developer and provider of application publishing and mobile productivity software, today announced its financial results for the third quarter ended September 30, 2017.
Third Quarter 2017 Financial Update:
| ● | Revenue of $1.026 million | |
| ● | Net Profit of $254 thousand | |
| ● | Basic and diluted earnings per share of $0.03 |
Third Quarter 2017 Operational Summary and Business Update
“In the third quarter of 2017, hopTo has managed to achieve profitability through the combination of continued stability in our GO-Global business and our expense control measures. We have prioritized the availability of sufficient resources to support our GO-Global customers while improving the GO-Global products and services,” stated Jean-Louis Casabonne, interim CEO of hopTo Inc.
“The GO-Global business continues to generate positive cash flow and remains a critical aspect of the company. The GO-Global business has now shown modest growth year over year for both the three and nine month periods ended September 30, 2017 strengthening our belief that it will operate profitably in the future. Early in the third quarter, we completed a sale of seven of our fifty-three granted patents which has further improved the cash position of the Company. This sale included a license back to hopTo for those patents. “
“Although we continue to believe that we may have 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 on April 7, 2017 included additional risk factors in this regard. We intend to continue to manage our expenses to preserve as many opportunities for the Company as reasonably possible,” concluded Mr. Casabbonne.
Results for the First Nine Months Ended September 30, 2017
Total revenue for the first nine months of Fiscal Year 2017 was $2.93 million, an increase of approximately 2.4% from $2.86 million for the same period in 2016. This revenue is entirely from the Company’s GO-Global products and services.
Gross profit for the first nine months of 2017 was $2.88 million, compared to $2.75 million for the same period of 2016, a year over year increase of 4.7%.
For the first nine months of 2017, the Company reported a net profit of $87 thousand or $0.01 per basic and diluted share, which was a significant improvement compared with the net loss of $1.87 million or $0.19 per basic and diluted share from the same period last year.
The total operating expense for the first nine months of 2017 was $2.65 million, which is a year-over-year improvement of 43% from $4.64 million that we reported for the same period in 2016.
Results for the Third Quarter Ended September 30, 2017
Total revenue for the third quarter 2017 of $1.026 million represents an increase of 14.1% from $899 thousand for the same period in the prior year.
Gross profit for the third quarter of 2017 was $1.01 million, an increase of 13.5% from $890 thousand for the same period in 2016.
Total operating expenses for the third quarter were $678 thousand, a decrease of 51.8% from $1.41 million for the same period in 2016.
hopTo reported a net profit for the quarter ended September 30, 2017 of $254 thousand, or $0.03 per basic and diluted share, compared to a net loss of $462 thousand or $0.05 per basic and diluted share for the same period in 2016.
As of September 30, 2017 the Company had cash of $551 thousand and accounts receivable of $353 thousand.
Investor Communications
As part of our continued expense management, hopTo Inc. will not be hosting an investor conference call to discuss its third quarter financial results.
As we did with our Year End 2016, Third Quarter 2016, and First and Second Quarter 2017 results, 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 until the end of the day on Thursday, November 17, 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 about November 27, 2017. We will also post the answers at investors.hopto.com.
About
hopTo:
Founded in its current form in 2012, hopTo Inc. is a
developer of application publishing software and a mobile productivity workspace platform. The company is based in Concord, NH.
For more information on hopTo, please visit: www.hopTo.com.
FORWARD
LOOKING STATEMENTS
This press release contains forward looking statements.
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: the success of our new products depends on a number of factors including market and customer acceptance;
our ability to manage the risks associated with new product introduction and developing and marketing new versions of the product;
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.
For more information on hopTo, please visit: www.hopTo.com.
Investors / Media:
J.L. Casabonne
investors@hopto.com
408-688-2674 ext. 5025
hopTo Inc.
Condensed Consolidated Balance Sheets
| September 30, | December 31, | |||||||
| 2017 | 2016 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Assets | ||||||||
| Cash | $ | 551,300 | $ | 546,200 | ||||
| Accounts receivable, net | 353,300 | 355,300 | ||||||
| Prepaid expenses | 26,800 | 38,700 | ||||||
| Total current assets | 931,400 | 940,200 | ||||||
| Property and equipment, net | 39,800 | 143,300 | ||||||
| Other assets | 109,000 | 109,000 | ||||||
| Total assets | $ | 1,080,200 | $ | 1,192,500 | ||||
| Liabilities and stockholders’ deficit | ||||||||
| Accounts payable and accrued liabilities | $ | 759,700 | $ | 975,800 | ||||
| Deferred revenue | 1,579,500 | 1,759,000 | ||||||
| Deferred rent | 23,400 | 24,100 | ||||||
| Lease liability | 24,900 | — | ||||||
| Capital lease | — | 6,800 | ||||||
| Other current liabilities | 855,100 | 571,100 | ||||||
| Total current liabilities | 3,242,600 | 3,336,800 | ||||||
| Deposit liability | 93,500 | 81,400 | ||||||
| Deferred revenue | 1,523,600 | 1,694,600 | ||||||
| Deferred rent | 41,500 | 2,600 | ||||||
| Stockholders’ deficit | (3,821,000 | ) | (3,922,900 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 1,080,200 | $ | 1,192,500 | ||||
Condensed Consolidated Statements of Operations
| Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenue | $ | 1,025,900 | $ | 898,500 | $ | 2,933,200 | $ | 2,864,400 | ||||||||
| Costs of revenue | 15,900 | 8,300 | 53,000 | 129,500 | ||||||||||||
| Gross profit | 1,010,000 | 890,200 | 2,880,200 | 2,734,900 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing | 87,400 | 93,900 | 259,400 | 664,600 | ||||||||||||
| General and administrative | 206,700 | 821,600 | 1,268,900 | 2,114,600 | ||||||||||||
| Research and development | 383,800 | 491,500 | 1,123,900 | 1,860,900 | ||||||||||||
| Total operating expenses | 677,900 | 1,407,000 | 2,652,200 | 4,640,100 | ||||||||||||
| Income (loss) from operations | 332,100 | (516,800 | ) | 228,000 | (1,905,200 | ) | ||||||||||
| Other income (expense) - change in fair value of warrants liability | - | 54,400 | - | 29,300 | ||||||||||||
| Other income (expense), net | (63,700 | ) | 1,100 | (123,800 | ) | 3,700 | ||||||||||
| Income (loss) before provision for income tax | 268,400 | (461,300 | ) | 104,200 | (1,872,200 | ) | ||||||||||
| Provision for income tax | 14,800 | 700 | 16,800 | 2,300 | ||||||||||||
| Net income (loss) | $ | 253,600 | $ | (462,000 | ) | $ | 87,400 | $ | (1,874,500 | ) | ||||||
| Basic and diluted income (loss) per share | $ | 0.03 | $ | (0.05 | ) | $ | 0.01 | $ | (0.19 | ) | ||||||
| Average weighted common shares outstanding - basic and diluted | 9,804,400 | 9,784,163 | 9,804,400 | 9,763,111 | ||||||||||||