hopTo Inc. (OTCMKTS:HPTO) Files An 8-K Regulation FD DisclosureItem 7.01 Regulation FD Disclosures
As previously stated in its November 14, 2017 earnings release, hopTo Inc. is providing the following answers to questions submitted to its [email protected] email address regarding the Company’s business, finances and operations. These questions and answers will also be posted on the Company’s website at investors.hopto.com. These answers are subject to the forward looking statement disclaimer following the last question and answer below. The following questions and answers do not purport to be indicative of the Company’s overall current business, finances, operations or prospects; rather, the answers reflect the Company’s responses solely to the questions submitted.
Question: How much cash did hopTo net from the $400,000.00 sale of 7 patents and why is the cash not reflected in the Q3 2017 financial statements filed with the SEC on November 14, 2017. Has hopTo received the proceeds from the sale and how much cash does the company currently have ?
hopTo received net proceeds of $340,000.00 for the sale of 7 patents. As disclosed in a Form 8-K filed with the SEC on October 16, 2017, the sale was completed October 10, 2017 which is after the period covered by the Form 10-Q filed with the SEC on November 14, 2017. hopTo received the payment for this transaction in October and the specifics of the transaction will be reflected in our 2017 full year financial statements which will be filed with the SEC in early 2018.
Question: The Aqua Licensing Website continues to list patents for sale. Are there any prospective sales discussions taking place at this time ?
As we have stated in several filings with the SEC, the hopTo IP marketing process is still ongoing. We cannot currently discuss any specifics.
Question: Is GO-Global selling state of the art technology at this point, or selling primarily based on cost with less bells and whistles?
GO-Global is a competitive application publishing solution that meets the requirements of end-users and hosting providers globally. The company continues to invest in new features to meet the needs of current and prospective customers. There continues to be new license sales every week.
Question: How many full time sales people? Or are sales only through 3rd parties?
GO-Global is sold almost entirely through distributors, resellers and OEM partners. We maintain an appropriately staffed channel management team.
Question: Is the Company still trying to hire a new CEO/CFO ? If so, is it to grow GO-Global ?
The Company does not currently have an active search for CEO or CFO.
Question: How much does the company owe the former CEO and CFO in deferred salaries? Has this deferred amount been paid?
As stated in Note 12 of the Notes to Financial Statements in the Form 10-Q filed on November 14, 2017:
The statement about going concern is made due to reporting requirements under generally accepted accounting principals (“GAAP”). The modest growth that we noted in our GO-Global business, does not necessarily determine the outcome of the going concern disclosure under GAAP.
This question and answer set contains statements that are forward looking. These statements include statements regarding potential strategic transactions and negotiations, financing and cost cutting initiatives, such as subletting our office lease. 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: our lack of cash resources makes it extremely difficult to execute on our efforts to extract value from our hopTo and Go-Global assets, and creates risks that we may be unable to realize full value for such assets; we may be unable to manage our expenses to a degree to preserve our opportunities to extract value from our assets, and may be forced to sell them at unfavorable prices; there is no assurance that any transaction will be achieved for any hopTo assets in a timely manner, on reasonable terms, or at all; 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. We assume no obligation to update the above question and answer set, which speaks only as of the date of this Form 8-K in which these questions and answers first appear.
About hopTo Inc. (OTCMKTS:HPTO)
hopTo Inc. is a developer of software productivity products for mobile devices, such as tablets and smartphones, and application publishing software solutions. The Company’s product line, which is called hopTo, is marketed to small and medium sized businesses, and enterprise level customers under the name hopTo Work, which is its primary focus in the hopTo product line. hopTo provides mobile end-users with a productivity workspace for their mobile devices that allows them to manage, share, view and edit their documents, regardless of where they are stored. The hopTo Work builds upon the hopTo consumer product, bringing its core mobile productivity features to small- to medium-sized business (SMB)/Enterprise users, with additional security and manageability functions. The Company’s GO-Global product offerings can be categorized into various product families, such as GO-Global for Windows, GO-Global for UNIX and GO-Global Client.