hopTo Inc. Announces First Quarter 2015 Highlights and Results

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May 15, 2015, 04:05 ET

CAMPBELL, Calif., May 15, 2015 /PRNewswire/ -- hopTo Inc. (OTCQB: HPTO), developer and provider of the most comprehensive mobile productivity platform, today announced its financial results for the first quarter ended March 31, 2015.

First Quarter 2015 Highlights:

Revenue of $1.47 million, an increase of approximately 10% year over year
Formed new strategic partnerships including Entisys Solutions
Launched hopTo Work 2.1 with Mobile App eXperience feature set and delivered hopTo Work for Android
Hosted two HopTo Work webinars with over 150 participants
Released upgrade for GO-Global for Windows

"We are pleased with the momentum that is taking place with the demand for hopTo Work, our mobile productivity platform for small and medium sized businesses and enterprise users," stated Eldad Eilam, President and CEO of hopTo Inc. "In this first quarter of 2015, we started to gain traction with both new resellers and our long-time existing relationships with our loyal GO-Global channel partners and this momentum has continued to build in the second quarter," said Eilam.

"Feedback from our customers, prospective customers and the customers of our channel partners is extremely positive and we are beginning to see acceptance in many large international markets as well as the U.S. They all benefit from the additional functionality and security of the hopTo Work platform with the new MAX feature set that we launched in the first quarter of this year and now includes availability on iPhone and Android devices."

"Additionally, our sales team continues to work around-the-clock with our GO-Global channel partners. This has not only resulted in sales for hopTo Work, but also has increased sales for our GO-Global product. This bodes well for the future of our multi-product revenue stream and supports our distribution and sales strategy to work both with existing sales relationships while building a new customer base in the ramp-up period for hopTo Work."

"We are off to a great start in the second quarter, with several big partner announcements already, including becoming verified as a Citrix Ready program participant," concluded Mr. Eilam.

First Quarter 2015 Results of Operations

Total revenue for the first quarter 2015 of $1.47 million represents an increase of nearly 10% over $1.34 million for the same period in the prior year. This revenue is nearly all from the Company's GO-Global products and services.

Gross profit for the first quarter of 2015 amounted to $1.36 million, as compared to $1.21 million for the same period in 2014.

Selling, general and administrative expenses for the first quarter of 2015 were $1.41 million and R&D expenses were $1.16 million, compared to $ 1.66 and $1.35 for the same period in 2014. The Company continued to deliver on cost controlling measures and better cash management, with total operating expenses for the first quarter of $2.57 million, compared to $3.01 million for the same period in 2014.

Total operating loss for the first quarter of 2015 was $1.21 million, which is a year over year improvement of 33% from the $1.80 million operating loss that we reported for the same period in 2014.

hopTo reported a net loss for the quarter ended March 31, 2015 of $1.26 million, or $0.01 per basic and diluted share, compared to $673 thousand or $0.01 per basic and diluted share for the same period in 2014.

As of March 31, 2015 the Company had cash of $1.97 million and accounts receivable of $454 thousand.

Conference Call

hopTo Inc. will host an investor conference call to discuss its financial results today, Friday, May 15, 2015 at 4:30 p.m. ET/1:30 p.m. PT.

Investors in the U.S. interested in participating in the call should dial 1-877-407-0784 and reference passcode 13609098. Those calling from outside the U.S. should dial 1-201-689-8560 and reference passcode 13609098. A telephone replay will be available approximately three hours after the call until May 29, 2015 by dialing 1-877-870-5176 from the U.S. or 1-858-384-5517 from international locations, with passcode 13609098.

A simultaneous live webcast will be available on the Investor Relations section of the Company's website at hopto.com and on the Company's Investor Relations mobile app, powered by IRapp™. The webcast will be archived on the Company's website for one year.

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, https://www.linkedin.com/company/hopto or download the hopTo IRapp from the hopTo investor page.

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: 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, 2014 and in other documents we have filed with the SEC.

Investors / Media:
Julie Silber
KCSA Strategic Communications
[email protected]
310.766.9760

Condensed Consolidated Statements of Operations

	Three Months Ended March 31,
	2015	2014
	(Unaudited)	(Unaudited)
Revenue	$ 1,471,100	$ 1,340,200
Costs of revenue	104,500	134,800
Gross profit	1,366,600	1,205,400
Operating expenses
Selling and marketing	500,100	650,500
General and administrative	907,800	1,011,600
Research and development	1,164,900	1,348,000
Total operating expenses	2,572,800	3,010,100
Loss from operations	(1,206,200)	(1,804,700)
Other income (expense) - change in fair value of warrants liability	(55,100)	1,133,700
Other expense, net	(600)	(200)
Loss before provision for income tax	(1,261,900)	(671,200)
Provision for income tax	1,100	1,300
Net loss	(1,263,000)	(672,500)

Basic and diluted loss per share	$ (0.01)	$ (0.01)
Average weighted common shares outstanding - basic and diluted	112,803,553	110,283,363

Condensed Consolidated Balance Sheets
	March 31,	December 31,
	2015	2014
	(Unaudited)	(Unaudited)
Assets
Cash	$ 1,971,800	$ 1,557,100
Accounts receivable, net	454,000	2,211,300
Prepaid expenses	103,500	98,100
Total current assets	2,529,300	3,866,500
Capitalized software, net	354,700	408,700
Property and equipment, net	335,100	362,500
Other assets	139,900	139,700
Total assets	$ 3,359,000	$ 4,777,400

Liabilities and stockholders' deficit
Accounts payable and accrued liabilities	$ 962,600	$ 986,500
Deferred revenue	2,505,400	2,859,300
Deferred rent	47,900	44,500
Capital lease	7,800	7,700
Total current liabilities	3,523,700	3,898,000
Warrants liability	294,700	647,300
Deferred revenue	1,612,900	1,652,600
Deferred rent	144,600	158,200
Capital lease	13,200	15,200
Stockholders' deficit	(2,230,100)	(1,593,900)
Total liabilities and stockholders' deficit	$ 3,359,000	$ 4,777,400