hopTo Inc. Announces Third Quarter Highlights and Results

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Nov 11, 2014, 04:05 ET

CAMPBELL, Calif., Nov. 11, 2014 /PRNewswire/ -- hopTo Inc. (OTCQB: HPTO), developer of the most comprehensive mobile productivity platform, announced today its financial results for the third quarter ended September 30, 2014.

Third Quarter Highlights

Continued progress towards Q4 launch of hopTo Work
Began deployment of sales and marketing plan for hopTo Work
Produced hopTo Work sales demo video
Updated product branding and redesigned the website
Began recruitment efforts for newly created Vice President of Sales position
GO-Global revenue remained stable as forecasted

Results for Third Quarter Ended September 30, 2014:

"We spent the entire third quarter in stealth-mode making great advances in building hopTo Work, our SMB and Enterprise product, which we officially and successfully launched yesterday," said Eldad Eilam, hopTo's President and Chief Executive Officer. "In that time, we were also busy fine-tuning and deploying our sales and marketing strategies, updated our brand and website design and began our executive search for top candidates for our newly created Vice President of Sales position which we completed in October as we recently announced."

"We recognized $1.3 million in revenues in the third 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 decrease of ~16%. The lower revenue in the quarter is primarily due to the regular fluctuation in the timing of revenue that is generated by Go-Global resellers. Despite being slightly down, we are pleased in that these results are consistent with our internal forecasts and continue to show stability with the GO-Global revenue," said Mr. Eilam.

The Company reported an operating loss of $1.0 million for the quarter ended September 30, 2014, which was a 38% improvement from $1.6 million operating loss reported for the same period the prior year. The Company also reported a consolidated net loss of $950 thousand for the quarter. In the third quarter of the previous year, the Company reported a net loss of of $2.3 million, which was primarily attributable to the Company's warrants liability.

The company continues to deliver on cost controlling measures and better cash management and reports that the total operating expenses for the third quarter were $2.2 million, which is a significant year over year improvement from $3.0 million that was reported in Q3 2013, and a marked sequential improvement from $2.75 million, which was reported earlier in Q2 2014.

Conference Call

hopTo will host a conference call at 4:30 p.m. EDT on Tuesday, November 11, 2014 to discuss its results for the third quarter ended September 30, 2014. Investors in the U.S. interested in participating in the call should dial +1-877-407-0784 and reference passcode 13594106. Those calling from outside the U.S. should dial +1-201-689-8560 and reference passcode 13594106. A telephone replay will be available approximately two hours after the call until November 25, 2014 by dialing +1-877-870-5176 from the U.S. or +1-858-384-5517 from international locations, with passcode 13594106.

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: 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.

Investor contact:
Julie Silber
KCSA Strategic Communications
310-766-9760
[email protected]

Media contacts:
Samantha Wolf
KCSA Strategic Communications
212-896-1220
[email protected]

hopTo Inc.
Condensed Consolidated Balance Sheets
	Sep 30,	December 31,
	2014	2013
	(Unaudited)	(Unaudited)
Assets
Cash	$ 2,003,900	$ 2,430,700
Accounts receivable, net	457,900	811,700
Prepaid expenses	96,200	43,100
Total current assets	2,558,000	3,285,500
Capitalized software, net	446,100	619,400
Property and equipment, net	394,400	302,100
Other assets	140,000	139,900
Total assets	$ 3,538,500	$ 4,346,900

Liabilities and stockholders' equity (deficit)
Accounts payable and accrued liabilities	$ 676,300	$ 844,100
Deferred revenue - current	2,433,500	2,772,900
Deferred rent	41,200	31,200
Severance liability	7,900	62,900
Total current liabilities	3,158,900	3,711,100
Warrants liability	602,900	979,800
Deferred revenue - long-term	379,700	476,200
Deferred rent - long-term	171,900	84,600
Stockholders' equity (deficit)	(774,900)	(904,800)
Total liabilities and stockholders' equity (deficit)	$ 3,538,500	$ 4,346,900


Condensed Consolidated Statements of Operations

	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Revenue	$ 1,289,200	$ 1,534,700	$ 4,036,100	$ 4,545,500
Costs of revenue	100,100	100,500	348,800	349,600
Gross profit	1,189,100	1,434,200	3,687,300	4,195,900
Operating expenses
Selling and marketing	343,300	683,300	1,576,900	1,743,500
General and administrative	655,700	914,900	2,505,400	2,441,600
Research and development	1,195,300	1,444,500	3,873,100	3,533,300
Total operating expenses	2,194,300	3,042,700	7,955,400	7,718,400
Loss from operations	(1,005,200)	(1,608,500)	(4,268,100)	(3,522,500)
Other income - change in fair value of warrants liability	54,700	(639,100)	1,665,900	680,100
Other income (expense), net	(200)	(200)	1,000	(500)
Loss before provision for income tax	(950,700)	(2,247,800)	(2,601,200)	(2,842,900)
Provision for income tax	200	4,600	2,300	7,300
Net Loss	(950,900)	(2,252,400)	(2,603,500)	(2,850,200)

Basic and diluted loss per share	$ (0.01)	$ (0.02)	$ (0.02)	$ (0.03)
Average weighted common shares outstanding - basic and diluted	112,058,708	94,836,777	111,397,562	87,992,742