hopTo Inc. (OTCMKTS:HPTO) Files An 8-K Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure.

As previously stated in its November 21, 2016 earnings release,
hopTo Inc. is providing the following answers to questions
submitted to its [email protected] email address regarding the
Companys business, finances and operations. These questions and
answers will also be posted on the Companys 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 Companys overall current business,
finances, operations or prospects; rather, the answers reflect
the Companys responses solely to the questions submitted.

Question: What is included in the newly created other current
liabilities account on the balance sheet?

hopTo Answer:

The other current liabilities included on the consolidated
balance sheet in the Form 10-Q filed on November 21, 2016 is
comprised entirely of accrued potential liquidated damages
resulting from delays in filing registration statements for
shares and shares underlying warrants for certain of the private
placements that the company closed in prior periods. This detail
can be found in the Notes to Unaudited Condensed Consolidated
Financial Statements, specifically in Note 13 Commitments and
Contingencies beginning on page 21 of the Form 10-Q.

Question: The SEC extension filed Nov. 14, 2016 contained an Exh.
A showing a Q3 net loss of $69k or $0.01 per share. Yet, the Q3
Earnings press release states a loss of $462k or $0.05 per share.
Can you please harmonize these seemingly conflicting reports?

hopTo Answer:

The difference between the net loss of $69k for the three-month
period ended September 30, 2016 as detailed on Attachment A to
the Form 12b-25 filed with the SEC on November 14, 2016 and the
net loss of $462k for the same period as reported on our Form 10Q
as filed on November 21, 2016 is the accrual for potential
liquidated damages resulting from delays in filing registration
statements for shares and shares underlying warrants for certain
of the private placements that the company closed in prior
periods. See the question immediately above.

Question: There is no indication or projection of expected cash
burn for the upcoming quarters. It is clear you expect the
revenue to decline, at what rate you likely cannot tell. However,
as to the monthly expenses, you must have some idea as to the
minimum amount required at this point. Since most of the cuts
have been already made, can you now provide some guidance as to
the monthly expenses going forward and, if possible, some idea of
the expected cash burn for the upcoming quarters?

hopTo Answer:

Although we have not changed our policy with respect to providing
guidance and we are not providing guidance at this time, we
respectfully point you to the following statement in our November
21, 2016 press release announcing the Third Quarter 2016 Business
Update and Results: We nevertheless intend to further manage our
expenses to preserve as many opportunities for the company as
reasonably possible. In particular, we will seek to preserve
resources to enable the continued operation and customer support
of our GO-Global business, which we believe is achievable given
the positive cash flow profile of that business.

The majority of expense cuts occurred in the latter half of Q3
and will have a more significant impact in Q4 and future
quarters. We continue to work on further expense reductions.

Question: What is prolonging the listing of the hopTo patents on
the Aqua website? Are you waiting for additional patents to be
officially granted or are there some serious potential suitors
interested in the hopTo software, who would of course want
ownership of the patents?

hopTo Answer:

The process for marketing patent portfolios is very thorough and
time consuming to prepare a comprehensive package. We are
actively working with AQUA Licensing LLC on documenting and
packaging our IP portfolio for sale, and we expect the process to
be completed soon.

Question: Are you making any progress on the subletting of your
current office space, which I imagine has already been vacated?

hopTo Answer:

The process for subletting the office space at 51 East Campbell
Avenue is ongoing. We put the space on the market several months
ago, but it has not been sublet yet. In the meantime, we continue
to use the office space primarily for administrative activity.

Question: Is GrowthPoint still involved in the effort of selling
the hopTo software/technology, or the Go-Global business?

hopTo Answer:

While we are stilled engaged with GrowthPoint, we cannot comment
on any specific activities.

Question: Numerous downloads of the hopTo Work software continue
to occur daily from over 20 countries. Many of the countries
appear over and over. I cant believe these downloads are by
accident or are just taking a look at the software through a
Reseller or Authorized Partner. Or maybe someone is giving out
the software for free. I dont know. I understand you do not have
patents anywhere but the USA. I hope you are visiting the site
APPLyzer – App Store – Rankings – Keywords – API to check out the
downloads yourself. Are you aware of these daily downloads? Have
you investigated the meaning of these downloads?

hopTo Answer:

We regularly monitor app downloads and usage analytics for
GraphOn and hopTo apps using industry standard tools such as
iTunes Connect, App Annie, Flurry Analytics, etc. Our assessment
is that the vast majority of ongoing hopTo Work downloads are
unfortunately random downloads from private individuals who are
not enterprise users, and who would not be suitable candidates
for the hopTo Work product.

Our analytics data shows that virtually none of them end up
downloading the host software (which is required to deploy hopTo
Work), and they do not end up using the product.

Question: Why hasnt the company been able to generate any sales
for the hopTo Max Go Global product?

hopTo Answer:

The client-side capability for hopTo Max for GO-Global is
integrated into the GO-Global Client. GO-Global customers are
required to pay an additional fee in order to receive the server
component that enables the client to access the hopToMAX
capabilities. There have been some sales of this product, but it
has not had a major impact on our revenue stream to date.

Question: Is Citrix interested in the hopTo IP? Why does the
company still have Citrixs name all over the website?

hopTo Answer:

We cannot speculate on what Citrixs interest is, if any. We still
have Citrix related content on the hopTo website because we have
not spent the resources to modify the site. Nevertheless, the
content is still accurate in terms of the hopTo Work
functionality.

Question: Has the company received any offers to purchase/license
the hopTo IP?

hopTo Answer:

We respectfully direct you to Note 2 of the Notes to Unaudited
Condensed Consolidated Financial Statements filed in our Form
10-Q for the three-month period ended September 20, 2016, where
we stated, in part :

We have worked extensively to explore additional sources of
capital including the issuance of new shares, securing debt
financing, and the sale of assets including certain software
products and patents. Although this process is ongoing and we are
in active discussions with multiple parties, there is no
guarantee that they will result in transactions that are
sufficient to provide the Company with the required liquidity to
remove the substantial doubt as to our ability to continue as a
going concern. We are also in discussions with some parties about
the possibility of other strategic transactions although there is
no guarantee that these discussions will result in an actual
transaction. The accompanying condensed consolidated financial
statements do not include any adjustments that may result from
the outcome of the uncertainties set forth above.

Question: Does PowWow acquisition of Starmobile have any effect
on hopTo?

hopTo Answer:

At this time, we have no reason to believe that this transaction
or the IP included in it should have any impact on hopTo or on
the IP assets we are attempting to sell. Our understanding is
that the acquired Starmobile IP relies on a fundamentally
different approach to solving the problem of mobile usability of
legacy software (relative to the hopTo approach).

Question: Why are the downloads increasing globally for the hopTo
Work Application?

hopTo Answer:

Please see answer above regarding hopTo Work downloads. We are
not actively selling the hopTo Work product at this time, and
other than occasional spikes, hopTo Work download traffic has
been minimal, and has remained fairly flat over the past several
months.

Question: Why is the status of the agreements with EOH and
Applications2U?

hopTo Answer:

As stated above, we are not actively selling the hopTo Work
product at this time. The agreements with EOH and Applications2U
are still in force, but these resellers, like all of the end user
organizations that hopTo was directly engaged with in sales
opportunities, were awaiting the full integration with HDX that
we were not able to deliver due to Citrix delays.

Question: What happened to the Advisory Board?

hopTo Answer:

The advisory board was formed to assist hopTo in our efforts to
market hopTo Work into the Citrix ecosystem. Since we have been
forced to cease our efforts with hopTo Work due to resource
constraints, we have dissolved the Advisory Board.

Question: When did the compensation modification for the
CEOandCFO become effective and what was the change?

hopTo Answer:

Our CEO and CFO voluntarily reduced their salary by 50% effective
September 1, 2016. As we stated in Note 2 of the Notes to
Unaudited Condensed Consolidated Financial Statements filed in
our Form 10-Q for the three-month period ended September 20,
2016: During the three month period ended September 30, 2016, our
CEO and CFO voluntarily agreed with our board of directors to
defer 50% of their salary beginning September 1, 2016 until such
time as the Company can reasonably pay such compensation upon
approval by the board of directors.

This question and answer set 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 potential strategic transactions and
negotiations, financing and cost cutting initiatives, such as
subletting our office lease. These statements are based on
managements 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, 2015 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 answer
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.

hopTo Inc. (OTCMKTS:HPTO) Recent Trading Information

hopTo Inc. (OTCMKTS:HPTO) closed its last trading session down -0.0120 at 0.0200 with shares trading hands.