• A Japanese **HubSpot** or **Adobe Experience Cloud** for business digital transformation.
• A Japanese **Robert Half Technology** or **TEKsystems** for IT staffing and consulting.

• Digital Transformation (DX) Services: Provides comprehensive consulting, implementation, and support for businesses aiming to modernize their operations and customer engagement through technology.
• HeartCore DX Platform: A proprietary software suite offering tools for content management, marketing automation, customer relationship management, and data analytics to enhance digital customer experiences.
• Go IPO Consulting Services: Offers specialized consulting and support for Japanese companies seeking to navigate the process of listing their shares on U.S. stock exchanges.

HeartCore Enterprises (symbol: HTCR) primarily sells its products and services to other companies, operating on a Business-to-Business (B2B) model.

While HeartCore serves a broad range of enterprise clients, specific "major customers" by name (i.e., individual companies contributing a significant portion of revenue) are not publicly disclosed in their SEC filings or investor presentations. This is common practice for software and IT service providers due to client confidentiality agreements and often a diversified revenue base rather than reliance on a few single large customers.

Instead, HeartCore's customer base can be broadly categorized by the types of companies and their needs:

• Large Enterprises and Corporations: These companies utilize HeartCore's digital transformation (DX) and marketing transformation (MX) solutions, including content management systems (CMS), marketing automation (MA) platforms, and customer data platforms (CDP). They aim to enhance their digital presence, improve customer engagement, and streamline marketing operations.
• Companies Across Diverse Industries: HeartCore serves clients in various sectors, such as finance, retail, manufacturing, media, and professional services, primarily within Japan. Their solutions are adopted by businesses seeking to modernize their IT infrastructure, improve data utilization, and achieve operational efficiencies through digital tools.
• Businesses Seeking Advanced Technology Integration: Customers often engage HeartCore for consulting and solutions related to emerging technologies like Artificial Intelligence (AI), Machine Learning, and Blockchain. These clients are typically forward-thinking organizations looking to leverage cutting-edge technologies for competitive advantage and innovation.

Sumitaka Kanno, Chairman of Board, Chief Executive Officer, President and Director
After graduating from Kansai Gaidai University in Japan, Mr. Kanno joined the Japan Air Force and became a pilot. He later worked at BroadVision Japan, a global software vendor, where he specialized in enterprise websites and software solutions. In 2009, he founded HeartCore to address technological challenges faced by Japan's largest organizations. He has over 20 years of experience in information technology and website engineering. He also previously founded his own company and popularized snowboarding in Japan. Mr. Kanno is also the author of the best-selling book "How to IPO on Nasdaq" and brings his expertise to HeartCore's "Go IPO" consulting services.

Qizhi Gao, Chief Financial Officer
Mr. Gao has 18 years of experience in finance and accounting. Prior to joining HeartCore in 2017, he was a group leader in finance and accounting at Marubishi Corporation in Tokyo, Japan, where he worked for 10 years.

Kimio Hosaka, Chief Operating Officer and Director
Mr. Hosaka joined HeartCore in 2009 and has served as the COO since 2015. He holds a bachelor's degree in physics from Chuo University in Tokyo and brings 20 years of experience in technology, having worked as an engineer and manager at All Nippon Airways Systems and Electronic Data Systems before HeartCore.

The rapid and widespread integration of Generative Artificial Intelligence (AI) capabilities into rival digital experience platforms (DXP) and content management systems (CMS) presents a clear emerging threat to HeartCore Enterprises. While HeartCore offers AI solutions, the scale of investment and pace of innovation by larger competitors in features like automated content creation, hyper-personalization, intelligent marketing automation, and predictive analytics driven by advanced generative AI models poses a significant disruptive challenge. This fundamental shift could redefine customer expectations for DXP/CMS functionality, potentially rendering platforms that are slower to adapt or lack deep generative AI integration less competitive or even obsolete, akin to how the iPhone disrupted the mobile industry by fundamentally changing user expectations for smartphone capabilities.

HeartCore Enterprises (HTCR) has historically offered solutions across Customer Experience Management (CXM) and Digital Transformation (DX), and more recently, Go IPO consulting services. However, as of October 31, 2025, HeartCore Enterprises announced the sale of its software business subsidiary, HeartCore Co. Ltd. (HeartCore Japan), and plans to focus exclusively on its Go IPO consulting business, transitioning from a software and consulting business model to a financial consulting firm.

Here are the addressable market sizes for their main products or services, noting the recent divestiture of the software business:

• Customer Experience Management (CXM) Platform (software - divested):
  • The global customer experience management (CEM) market was valued at USD 19.34 billion in 2024 and is projected to grow to USD 68.24 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 17.3% from 2025 to 2032.
  • Another estimate indicates the global customer experience management market is expected to grow at a CAGR of 15.2% from 2024 to 2032.
• Digital Transformation (DX) Business (including Robotics Process Automation, Process Mining, and Task Mining software - divested):
  • The Japan Digital Transformation Market is estimated at USD 77.71 billion in 2025 and is expected to reach USD 236.48 billion by 2030, at a CAGR of 24.93% during the forecast period (2025-2030).
  • Another report valued the Japan Digital Transformation Market at USD 57.9 billion in 2024, with an estimate to reach USD 304.8 billion by 2033, exhibiting a CAGR of 20.3% from 2025-2033.
  • The global intelligent process automation market size was valued at USD 8.52 billion in 2020 and is projected to reach USD 21.63 billion by 2028, growing at a CAGR of 12.37% from 2021 to 2028. The Asia Pacific region is expected to have the highest growth rate in this market.
• Go IPO Consulting Services:
  • Specific addressable market size data for "Go IPO consulting services" for Japanese companies listing in the U.S. was not readily available in the search results. Therefore, the market size for this service is null.

• Expansion of the Go IPO Business: HeartCore's Go IPO consulting business, which assists Japanese companies in listing on U.S. stock exchanges, has been a significant revenue contributor. The company anticipates closing additional Go IPO deals in the coming months and is actively looking to expand this business across South Korea and the broader Asia-Pacific (APAC) region, aiming to increase client acquisition.
• Shift to Multi-Year SaaS Licensing and CMS Platform Expansion: HeartCore is transitioning its Content Management System (CMS) platform to a Software-as-a-Service (SaaS) delivery model and implementing multi-year software licensing agreements. This strategic shift is designed to generate more stable and recurring revenue streams. The company projects a 12% sales growth in fiscal year 2025 from existing CMS customers due to these investments in customer experience and engagement.
• Development and Integration of AI-Driven CMS and Features: To meet evolving customer demands, HeartCore is developing an AI-driven CMS platform and integrating ChatGPT functions into its current CMS. This innovation aims to enhance content generation and overall software capabilities, thereby driving demand and adoption of its software offerings.
• Strategic Mergers and Acquisitions (M&A): A core component of HeartCore's growth strategy involves strategic M&A. The company is actively targeting software companies that demonstrate strong and stable revenue performance, possess exceptional and synergistic technology, effectively utilize AI, and offer products that can be cross-sold to HeartCore's existing client base. They are exploring acquisition opportunities in Japan, Vietnam, and the United States to enhance their software solution portfolio and fundraising capabilities.
• Enhanced Cross-selling and Upselling within the Software Business: HeartCore is focused on deepening its wallet share with its existing customer base. Initiatives such as the 'Health Check' program, which involves on-site customer visits for consultations and feedback, and a dedicated sales and technical team, are designed to maximize the use of CMS functionalities, provide customized support, and actively promote cross-selling opportunities for products like their Web Application Firewall (WAF) security solution and website design projects.

[1] Share Repurchases

• HeartCore Enterprises authorized a share repurchase program for up to $3.5 million of its outstanding common stock on June 8, 2022.
• This share repurchase program was approved and completed in 2022.

[2] Share Issuance

• In July 2025, HeartCore Enterprises entered into a Securities Purchase Agreement and Equity Purchase Agreement with Crom Structured Opportunities Fund I LP.
• The Equity Purchase Agreement allows HeartCore to sell up to $25.0 million of its common stock to Crom over time.
• As part of the Securities Purchase Agreement, HeartCore issued 2,000 shares of Series A Convertible Preferred Stock to Crom for gross proceeds of $2.0 million, and also issued 750,000 shares of common stock as SPA Commitment Shares, with the private placement closing on June 30, 2025.

[3] Inbound Investments

• A financing agreement with Crom Structured Opportunities Fund I, LP in July 2025 provided HeartCore with $2.0 million from the issuance of Preferred Stock and the option to sell up to $25.0 million of common stock. This capital is intended to enhance financial flexibility, support software growth initiatives, and aid M&A strategy.

[4] Outbound Investments

• HeartCore Enterprises holds a majority stake in U.S.-based Sigmaways Inc.
• In October 2025, HeartCore sold its subsidiary, HeartCore Co. Ltd. (HeartCore Japan), to Volaris Group for approximately ¥1.8 billion yen (approximately $12 million USD). This divestiture was a strategic move to shift focus from its traditional software business to the Go IPO consulting business, prompted by the evolving generative AI landscape.
• The company plans to continue evaluating strategic alternatives for divesting its remaining software business, specifically Sigmaways.

[5] Capital Expenditures

• HeartCore Enterprises' capital expenditures for the quarter ending December 2024 were $3,312.