Recent Operational Highlights
- As of
March 31, 2026 ,HeartCore was engaged with 16 Go IPO clients, including 6 clients currently in various stages of preparation for potential public registrations andU.S. exchange listings - Regained Nasdaq
$1.00 minimum bid price requirement - Authorized
$2.0 million share repurchase program
Management Commentary
“Through our subsidiary
“Looking ahead, we remain focused on broadening our Go IPO client base that aligns with Nasdaq’s tightened requirements and diversifying our revenue base as we further develop and advance our financial services business.”
First Quarter 2026 Financial Results
Revenues were
Gross profit was
Operating expenses decreased to
Net loss was
Adjusted EBITDA was a loss of
As of
About
Non-GAAP Financial Measures
This document includes references to adjusted EBITDA, which is a non-GAAP financial measure. For the purposes of this presentation, adjusted EBITDA is calculated by adjusting net loss to exclude depreciation and amortization, changes in fair value of investments in marketable securities, changes in fair value of investment in warrants, interest income, and interest expenses.
This measure is presented as supplemental information and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the
Management believes that adjusted EBITDA provides useful information to investors by highlighting the Company’s core operational performance, excluding non-cash and non-recurring items. However, non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
| For the three months ended | ||
| Item | 2026 | 2025 |
| Net loss | ||
| (+) Depreciation | ||
| (+) Changes in fair value of investments in marketable securities | ||
| (+) Changes in fair value of investment in warrants | ||
| (+) Changes in fair value of derivative liability | ||
| (+) Interest income | ||
| (+) Interest expenses | ||
| (+) Other income | ||
| (+) Other expenses | ||
| Adjusted EBITDA | ||
Forward-Looking Statements
This 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 Investor Relations Contact:
HTCR@gateway-grp.com
(949) 574-3860
| Consolidated Balance Sheets | ||||||
| 2026 | 2025 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 774,033 | $ | 1,985,962 | ||
| Accounts receivable | 572,547 | 707,865 | ||||
| Investments in marketable securities | 3,394,190 | 3,690,187 | ||||
| Prepaid expenses | 222,818 | 182,077 | ||||
| Current portion of long-term note receivable | 100,000 | 100,000 | ||||
| Deferred offering costs | 250,000 | 250,000 | ||||
| Other current assets | 175,335 | 208,503 | ||||
| Proceeds receivable from sale of discontinued operations | 1,382,897 | 1,291,298 | ||||
| Total current assets | 6,871,820 | 8,415,892 | ||||
| Non-current assets: | ||||||
| Property and equipment, net | 279,185 | 291,589 | ||||
| Operating lease right-of-use assets | 506,456 | 29,449 | ||||
| Long-term investment in warrants | 273,859 | 280,924 | ||||
| Deferred tax assets | 22,633 | 23,121 | ||||
| Security deposits | 278,154 | 282,958 | ||||
| Other non-current assets | 241 | 549 | ||||
| Long-term proceeds receivable from sale of discontinued operations | 3,539,421 | 3,736,995 | ||||
| Total non-current assets | 4,899,949 | 4,645,585 | ||||
| Total assets | $ | 11,771,769 | $ | 13,061,477 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued expenses | $ | 1,230,686 | $ | 1,146,501 | ||
| Accounts payable and accrued expenses - related party | 96,333 | 124,618 | ||||
| Accrued payroll and other employee costs | 663,683 | 509,547 | ||||
| Due to related party | 401 | 285 | ||||
| Short-term debt - related party | 69,000 | 75,000 | ||||
| Current portion of long-term debts | 51,697 | 50,598 | ||||
| Insurance premium financing | 97,773 | 13,430 | ||||
| Factoring liability | 124,508 | 135,982 | ||||
| Operating lease liabilities, current | 308,119 | 32,793 | ||||
| Income tax payables | 1,847,411 | 1,857,386 | ||||
| Deferred revenue | 650,469 | 676,216 | ||||
| Derivative liability | 122,589 | 121,719 | ||||
| Other current liabilities | 598,602 | 586,175 | ||||
| Total current liabilities | 5,861,271 | 5,330,250 | ||||
| Non-current liabilities: | ||||||
| Long-term debts | 434,895 | 448,376 | ||||
| Operating lease liabilities, non-current | 211,544 | - | ||||
| Total non-current liabilities | 646,439 | 448,376 | ||||
| Total liabilities | 6,507,710 | 5,778,626 | ||||
| Shareholders' equity: | ||||||
| Preferred shares, | 691,858 | 691,858 | ||||
| Common shares, | 129 | 127 | ||||
| Additional paid-in capital | 21,876,230 | 21,902,169 | ||||
| Accumulated deficit | (15,627,241 | ) | (13,755,534 | ) | ||
| Accumulated other comprehensive loss | (66,099 | ) | (58,497 | ) | ||
| 6,874,877 | 8,780,123 | |||||
| Non-controlling interests | (1,610,818 | ) | (1,497,272 | ) | ||
| Total shareholders' equity | 5,264,059 | 7,282,851 | ||||
| Total liabilities and shareholders' equity | $ | 11,771,769 | $ | 13,061,477 | ||
| Unaudited Consolidated Statements of Operations and Comprehensive Loss | |||||||
| For the Three Months | |||||||
| Ended | |||||||
| 2026 | 2025 | ||||||
| Revenues | $ | 1,245,844 | $ | 2,093,413 | |||
| Cost of revenues (including cost of revenues resulting from transactions with a related party of | 1,171,799 | 1,549,639 | |||||
| Gross profit | 74,045 | 543,774 | |||||
| Operating expenses: | |||||||
| Selling expenses | 42,812 | 152,922 | |||||
| General and administrative expenses (including general and administrative expenses resulting from transactions with a related party of nil and | 1,571,734 | 1,581,205 | |||||
| Total operating expenses | 1,614,546 | 1,734,127 | |||||
| Loss from continuing operations | (1,540,501 | ) | (1,190,353 | ) | |||
| Other income (expenses): | |||||||
| Changes in fair value of investments in marketable securities | (295,997 | ) | (1,781,664 | ) | |||
| Changes in fair value of investment in warrants | (7,065 | ) | (51,621 | ) | |||
| Changes in fair value of derivative liability | (870 | ) | - | ||||
| Interest income | 582 | 2,243 | |||||
| Interest expenses | (16,625 | ) | (17,794 | ) | |||
| Other income | 14,095 | 9,313 | |||||
| Other expenses | (112,865 | ) | (547 | ) | |||
| Total other expenses | (418,745 | ) | (1,840,070 | ) | |||
| Loss from continuing operations before income tax expense | (1,959,246 | ) | (3,030,423 | ) | |||
| Income tax expense | 17,469 | 39,608 | |||||
| Net loss from continuing operations | (1,976,715 | ) | (3,070,031 | ) | |||
| Loss from discontinued operations, net of income tax | - | (67,350 | ) | ||||
| Net loss | (1,976,715 | ) | (3,137,381 | ) | |||
| Less: net loss attributable to non-controlling interests | (105,008 | ) | (50,389 | ) | |||
| Net loss attributable to | (1,871,707 | ) | (3,086,992 | ) | |||
| Dividends accrued on Series A convertible preferred shares | (27,968 | ) | - | ||||
| Net loss attributable to | $ | (1,899,675 | ) | $ | (3,086,992 | ) | |
| Other comprehensive loss: | |||||||
| Foreign currency translation adjustment | (16,140 | ) | (8,014 | ) | |||
| Total comprehensive loss | (1,992,855 | ) | (3,145,395 | ) | |||
| Less: comprehensive loss attributable to non-controlling interests | (113,546 | ) | (49,152 | ) | |||
| Comprehensive loss attributable to | $ | (1,879,309 | ) | $ | (3,096,243 | ) | |
| Net loss from continuing operations attributable to | |||||||
| Basic | $ | (1.49 | ) | $ | (2.74 | ) | |
| Diluted | $ | (1.49 | ) | $ | (2.74 | ) | |
| Loss from discontinued operations per common share* | |||||||
| Basic | $ | - | $ | (0.06 | ) | ||
| Diluted | $ | - | $ | (0.06 | ) | ||
| Net loss attributable to | |||||||
| Basic | $ | (1.49 | ) | $ | (2.80 | ) | |
| Diluted | $ | (1.49 | ) | $ | (2.80 | ) | |
| Weighted average common shares outstanding* | |||||||
| Basic | 1,271,631 | 1,102,702 | |||||
| Diluted | 1,271,631 | 1,102,702 | |||||
| Unaudited Consolidated Statements of Cash Flows | ||||||
| For the Three Months | ||||||
| Ended | ||||||
| 2026 | 2025 | |||||
| Cash flows from operating activities of continuing operations: | ||||||
| Net loss | $ | (1,976,715 | ) | $ | (3,137,381 | ) |
| Loss from discontinued operations, net of income tax | - | (67,350 | ) | |||
| Net loss from continuing operations | (1,976,715 | ) | (3,070,031 | ) | ||
| Adjustments to reconcile net loss from continuing operations to net cash flows | ||||||
| used in operating activities of continuing operations: | ||||||
| Depreciation expense | 7,720 | 20,289 | ||||
| Loss on disposal of property and equipment | - | 116,981 | ||||
| Non-cash lease expense | 70,229 | 31,662 | ||||
| Gain on termination of lease | - | (9,059 | ) | |||
| Deferred income taxes | - | 27,515 | ||||
| Stock-based compensation | 2,031 | 32,280 | ||||
| Changes in fair value of investments in marketable securities | 295,997 | 1,781,664 | ||||
| Changes in fair value of investment in warrants | 7,065 | 51,621 | ||||
| Changes in fair value of derivative liability | 870 | - | ||||
| Gain on settlement of asset retirement obligations | - | (45,873 | ) | |||
| Changes in assets and liabilities: | ||||||
| Accounts receivable | 135,238 | (180,823 | ) | |||
| Prepaid expenses | 66,924 | 50,591 | ||||
| Other assets | 107,886 | (26,711 | ) | |||
| Accounts payable and accrued expenses | 85,404 | (97,118 | ) | |||
| Accounts payable and accrued expenses - related party | (28,338 | ) | (24,224 | ) | ||
| Accrued payroll and other employee costs | 154,736 | (23,483 | ) | |||
| Due to related party | 125 | (884 | ) | |||
| Operating lease liabilities | (60,127 | ) | (24,435 | ) | ||
| Income tax payables | (9,785 | ) | (80,196 | ) | ||
| Deferred revenue | (25,747 | ) | (233,911 | ) | ||
| Other liabilities | 12,897 | 12,686 | ||||
| Net cash flows used in operating activities of continuing operations | (1,153,590 | ) | (1,691,459 | ) | ||
| Cash flows from investing activities of continuing operations: | ||||||
| Purchases of property and equipment | (954 | ) | - | |||
| Proceeds from sale of marketable securities | - | 462,763 | ||||
| Net cash flows provided by (used in) investing activities of continuing operations | (954 | ) | 462,763 | |||
| Cash flows from financing activities of continuing operations: | ||||||
| Payments for finance lease | - | (4,071 | ) | |||
| Repayment of long-term debts | (12,382 | ) | (10,561 | ) | ||
| Repayment of related party debt | (6,000 | ) | - | |||
| Repayment of insurance premium financing | (23,657 | ) | (28,559 | ) | ||
| Net repayment of factoring arrangement | (11,474 | ) | (45,341 | ) | ||
| Proceeds from issuance of common shares related to at the market offering agreement | - | 30,445 | ||||
| Proceeds from collection of subscription receivable | - | 103,942 | ||||
| Proceeds from exercise of stock options | - | 117,000 | ||||
| Net cash flows provided by (used in) financing activities of continuing operations | (53,513 | ) | 162,855 | |||
| Cash flows from discontinued operations: | ||||||
| Net cash flows used in operating activities of discontinued operations | - | (309,332 | ) | |||
| Net cash flows provided by investing activities of discontinued operations | - | 10,298 | ||||
| Net cash flows used in financing activities of discontinued operations | - | (19,915 | ) | |||
| Net cash flows used in discontinued operations | - | (318,949 | ) | |||
| Effect of exchange rate changes | (3,872 | ) | 2,685 | |||
| Net change in cash and cash equivalents | (1,211,929 | ) | (1,382,105 | ) | ||
| Cash and cash equivalents - beginning of the period | 1,985,962 | 2,121,089 | ||||
| Cash and cash equivalents - end of the period | $ | 774,033 | $ | 738,984 | ||
| Supplemental cash flow disclosures: | ||||||
| Interest paid | $ | 16,625 | $ | 22,857 | ||
| Income taxes paid (received), net | $ | (4,574 | ) | $ | 93,586 | |
| Non-cash investing and financing transactions: | ||||||
| Insurance premium financing | $ | 108,000 | $ | 139,500 | ||
| Dividends accrued on Series A convertible preferred shares | $ | 27,968 | $ | - | ||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 552,577 | $ | - | ||
