hopTo Inc. Announces Second Quarter Highlights and Results

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Aug 05, 2014, 04:05 ET

CAMPBELL, Calif., Aug. 5, 2014 /PRNewswire/ -- hopTo Inc. (OTCQB: HPTO), developer of the most comprehensive mobile productivity platform, announced today its financial results for the second quarter ended June 30, 2014.

Second Quarter Highlights

Continued progress towards launch of hopTo Work
- Product development on schedule; first shipments expected in Q4
Seven additional patents granted in Q2 2014
GO-Global revenue up 1% and gross profit up 3%, year over year

Results for Second Quarter Ended June 30, 2014:

"We were very focused during the second quarter and continued to make great advances in building our SMB and Enterprise product, hopTo Work. We remain on track for a Q4 launch," said Eldad Eilam, hopTo's President and Chief Executive Officer. "We also launched version 2.2 of hopTo prosumer, which includes a Mac OSX File Connector, making it possible for even more people to take advantage of the hopTo productivity app."

Additionally in the second quarter, hopTo was granted seven patents and continues to build a significant intellectual property portfolio. The total number of granted and allowed patents to date is 18, which includes the previously announced patents that were granted in July of this year. As a result of the Company's efforts to protect the technological advancements in its on-going research and development and the desire to add value with additional potential revenue streams, the Company's growing portfolio now consists of 170 applications.

"We recognized $1.4 million in revenues in the second quarter of 2014 from our legacy asset, GO-Global, a secure application publishing solution that provides remote access to Windows, UNIX and Linux applications from any location, platform, and OS. This was a year over year increase of nearly 1%. Gross profit from GO-Global was also up nearly 3% year over year to $1.3 million. This is primarily the result of further reducing product costs and support burden," said Mr. Eilam.

The Company reported an operating loss of $1.46 million for the quarter ended June 30, 2014, which was virtually unchanged from the prior year period. The Company also reported a consolidated net loss of $980 thousand for the quarter. In the second quarter of the previous year, the Company reported a net gain of $3.3 million, which was primarily attributable to changes in the valuation of the Company's warrants. Selling, general and administrative expenses were $1.42 million and R&D expenses were $1.33 million. R&D expenses slightly decreased by $46 thousand from Q2 2013 as the Company has implemented measures to optimize its development resources.

Conference Call

hopTo will host a conference call at 4:30 p.m. EDT on Tuesday, August 5, 2014 to discuss its results for the second quarter ended June 30, 2014. Investors in the U.S. interested in participating in the call should dial 1-877-407-9039 and request the hopTo Second Quarter call or reference passcode 13587683. Those calling from outside the U.S. should dial 1-201-689-8470 and request the hopTo Second Quarter call or reference passcode 13587683. A telephone replay will be available approximately two hours after the call concludes through August 19, 2014 by dialing 1-877-870-5176 from the U.S. or 1-858-384-5517 from international locations, with passcode 13587683.

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 application. hopTo delivers a mobile experience that changes the way you work and live — empowering you to fully embrace a mobile lifestyle – without any compromises or boundaries. Search, Access, Aggregate, Create, Edit and Share your content from your mobile device, efficiently and effectively, by leveraging the power of your own "personal cloud." The company is based in Campbell, CA.

For more information on hopTo, please visit: hopTo.com or facebook.com/hopTo.

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, and the expected release dates of these products. 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: we have limited capital and a history of losses, limiting our ability to respond to unexpected delays in product introduction or in generating revenue; software product development is subject to various risks and uncertainties, including engineering challenges as well as the potential need to adjust the features of a product to address market demand, which could delay an introduction on a timely basis; the success of our new products depends on a number of factors including market acceptance and 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, 2013, and in other documents we have filed with the SEC.

Investors:
Julie Silber
[email protected]
310.766.9760

Media:
Anne Donohoe
[email protected]
732.620.0033

hopTo Inc.
Condensed Consolidated Balance Sheets
	June 30,	December 31,
	2014	2013
	(Unaudited)	(Unaudited)
Assets
Cash	$ 2,787,600	$ 2,430,700
Accounts receivable, net	566,400	811,700
Prepaid expenses	111,100	43,100
Total current assets	3,465,100	3,285,500

Property and equipment, net	426,400	302,100
Capitalized software, net	498,800	619,400
Other assets	139,900	139,900
Total assets	$ 4,530,200	$ 4,346,900

Liabilities and stockholders' equity (deficit)
Accounts payable and accrued liabilities	$ 852,700	$ 844,100
Deferred revenue - current	2,300,800	2,772,900
Deferred rent	37,900	31,200
Severance liability	-	62,900
Total current liabilities	3,191,400	3,711,100

Warrants liability	658,600	979,800
Deferred revenue - long-term	407,100	476,200
Deferred rent	182,200	84,600
Stockholders' equity (deficit)	90,900	(904,800)
Total liabilities and stockholders' equity (deficit)	$ 4,530,200	$ 4,346,900


Condensed Consolidated Statements of Operations

	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Revenue	$ 1,406,700	$ 1,393,800	$ 2,746,900	$ 3,010,800
Costs of revenue	113,900	137,300	248,700	249,100
Gross profit	1,292,800	1,256,500	2,498,200	2,761,700
Operating expenses
Selling and marketing	583,100	561,200	1,233,600	1,060,200
General and administrative	838,200	780,700	1,849,800	1,526,700
Research and development	1,329,800	1,375,600	2,677,800	2,088,800
Total operating expenses	2,751,100	2,717,500	5,761,200	4,675,700
Loss from operations	(1,458,300)	(1,461,000)	(3,263,000)	(1,914,000)
Other income - change in fair value of warrants liability	477,500	4,767,900	1,611,200	1,319,200
Other income (expense), net	1,400	(200)	1,200	(300)
Income (loss) before provision for income tax	(979,400)	3,306,700	(1,650,600)	(595,100)
Provision for income tax	800	1,600	2,100	2,700
Net income (loss)	(980,200)	3,305,100	(1,652,700)	(597,800)

Basic earnings (loss) per share	$ (0.01)	$ 0.04	$ (0.01)	$ (0.01)
Diluted earnings (loss) per share	$ (0.01)	$ 0.03	$ (0.01)	$ (0.01)
Average weighted shares outstanding - basic	111,691,347	85,823,258	110,991,245	84,488,583
Average weighted shares outstanding - diluted	111,691,347	101,323,745	110,991,245	84,488,583