hopTo (HPTO) 10-K 14 Apr 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	0-21683
Entity Registrant Name	hopTo Inc.
Entity Central Index Key	0001021435
Entity Tax Identification Number	13-3899021
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	189 North Main St.
Entity Address, Address Line Two	Suite 102
Entity Address, City or Town	Concord
Entity Address, State or Province	NH
Entity Address, Postal Zip Code	03301
City Area Code	800
Local Phone Number	472-7466
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 4,498,714
Entity Common Stock, Shares Outstanding		18,826,342
Auditor Firm ID	3501
Auditor Name	dbbmckennon
Auditor Location	Newport Beach, California

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 5,037,300	$ 4,755,300
Marketable Securities	318,700	417,600
Accounts receivable, net	511,200	558,600
Prepaid expenses and other current assets	102,600	52,700
Total current assets	5,969,800	5,784,200
Right-of-use assets	51,600
Property and equipment, net	5,300	8,200
Other assets	22,900	17,800
Total assets	6,049,600	5,810,200
Current liabilities
Accounts payable	234,200	260,800
Accrued expenses	61,800	64,200
Accrued wages	150,000	108,900
Lease liability - current	10,300
Deferred revenue - current	1,206,100	1,033,800
Total current liabilities	1,662,400	1,467,700
Long-term liabilities
Lease liability	40,900
Deferred revenue	264,800	373,900
Total liabilities	1,968,100	1,841,600
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2022 or 2021
Common stock, $0.0001 par value, 195,000,000 shares authorized, 18,826,342 and 18,850,675 shares issued and outstanding as of December 31, 2022 and 2021, respectively	1,900	1,900
Additional paid-in capital	82,145,100	82,155,200
Accumulated deficit	(78,065,500)	(78,188,500)
Total stockholders’ equity	4,081,500	3,968,600
Total liabilities and stockholders’ equity	$ 6,049,600	$ 5,810,200

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	195,000,000	195,000,000
Common stock, shares issued	18,826,342	18,850,675
Common stock, shares outstanding	18,826,342	18,850,675

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues:
Total Revenue	$ 3,908,600	$ 3,612,700
Cost of Revenue:
Total cost of revenue	237,800	166,500
Gross profit	3,670,800	3,446,200
Operating expenses:
Selling and marketing	926,000	606,600
General and administrative	1,002,400	748,800
Research and development	1,524,800	1,435,400
Total operating expenses	3,453,200	2,790,800
Income from operations	217,600	655,400
Other income (loss):
Interest & Other Income	4,300	269,800
Unrealized gain (loss)	(98,900)	127,000
Other income (loss)	(94,600)	396,800
Income before provision for income taxes	123,000	1,052,200
Provision for income taxes
Net income	$ 123,000	$ 1,052,200
Net income per share, basic	$ 0.01	$ 0.06
Net income per share, diluted	$ 0.01	$ 0.06
Weighted average number of common shares outstanding
Basic	18,848,841	18,850,675
Diluted	19,091,415	19,092,837
License [Member]
Revenues:
Total Revenue	$ 621,800	$ 737,800
Technology Service [Member]
Revenues:
Total Revenue	3,202,900	2,788,500
Service, Other [Member]
Revenues:
Total Revenue	83,900	86,400
Service [Member]
Cost of Revenue:
Total cost of revenue	51,400	54,000
Product [Member]
Cost of Revenue:
Total cost of revenue	$ 186,400	$ 112,500

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance, value at Dec. 31, 2020	$ 1,900	$ 82,155,200	$ (79,240,700)	$ 2,916,400
Balance, shares at Dec. 31, 2020	18,850,675
Net income			1,052,200	1,052,200
Balance, value at Dec. 31, 2021	$ 1,900	82,155,200	(78,188,500)	3,968,600
Balance, shares at Dec. 31, 2021	18,850,675
Net income			123,000	123,000
Purchase of hopTo treasury stock		(10,100)		(10,100)
Purchase of hopTo treasury stock, shares	(24,333)
Balance, value at Dec. 31, 2022	$ 1,900	$ 82,145,100	$ (78,065,500)	$ 4,081,500
Balance, shares at Dec. 31, 2022	18,826,342

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income	$ 123,000	$ 1,052,200
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,900	1,600
Changes in allowance for doubtful accounts	(1,400)	1,100
Gain on sale of patents		(269,800)
Unrealized (gain)/ loss from short-term investment	98,800	(127,000)
Changes in operating assets and liabilities:
Accounts receivable	48,800	(142,400)
Prepaid expenses and other current assets	(55,000)	(4,200)
Accounts payable	(26,500)	9,800
Accrued expenses	(2,800)	(17,800)
Accrued wages	41,100	(32,700)
Deferred revenue	63,200	(60,200)
Net cash provided by operating activities	292,100	410,600
Cash flows from investing activities
Purchase of marketable securities		(290,600)
Proceeds from sale of patents		269,800
Purchase of property and equipment		(9,800)
Net cash used in investing activities		(30,600)
Cash flows from financing activities
Purchase of hopTo treasury stock	(10,100)
Net cash used in financing activities	(10,100)
Net change in cash	282,000	380,000
Cash, beginning of the year	4,755,300	4,375,300
Cash, end of the year	$ 5,037,300	$ 4,755,300

Organization

Organization	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Organization	1. Organization hopTo Inc., a Delaware corporation, through its wholly-owned subsidiary GraphOn Corporation (collectively, “we”, “us,” “our” or the “Company”) are developers of application publishing software which includes application virtualization software and cloud computing software for multiple computer operating systems including Windows, UNIX and several Linux-based variants. The Company sells a family of products under the brand name GO-Global, which is a software application publishing business and is the Company’s sole revenue source at this time. GO-Global is an application access solution for use and/or resale by independent software vendors, corporate enterprises, governmental and educational institutions, and others, who wish to take advantage of cross-platform remote access and Web-enabled access to their existing software applications, as well as those who are deploying secure, private cloud environments.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of hopTo Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated upon consolidation. The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to financial information and the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Amounts could materially change in the future. These estimates include the allowance for doubtful accounts and timing of revenue recognized over time. While the Company believes that such estimates are fair, actual results could differ materially from those estimates. Liquidity The Company has incurred significant net losses since inception. As of December 31, 2022, we had working capital of $ 4,307,400 1,206,100 Revenue Recognition The Company markets and licenses its products indirectly through channel distributors, value-added resellers, independent software vendors (“ISVs”), hosting service providers, corporate enterprises, governmental and educational institutions and others. Our product licenses are perpetual. We also separately sell intellectual property licenses, maintenance contracts, which are comprised of license updates and customer service access, as well as other products and services. There are no rights of return granted to purchasers of the Company’s software products. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” Revenues under ASC 606 are recognized when the promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. For the years ended December 31, 2022 and 2021, revenue recognition was determined by ● identifying the contract, or contracts, with a customer; ● identifying the performance obligations in each contract; ● determine the transaction price; ● allocating the transaction price to the performance obligations in each contract; and ● recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services When control of the promised products and services are transferred to our customers, we recognize revenue in the amount that reflects the consideration we expect to receive in exchange for these products and services. Product Sales All of our licenses are delivered to the customer electronically. The Company sends the license key to the customer to download the related software from Company portal. We recognize revenue upon delivery of these licenses. For stocking resellers who purchase licenses through inventory stocking orders with the intent to resell to an end-user, revenue is recognized when the resellers’ accounts have been credited, at their discretion, for the number of licenses purchased. Maintenance revenue was also recognized from service contracts ratably over the related contract period. The Company operates in one reportable segment. The Company’s product sales by geographic area are presented in Note 6. Cash and Cash Equivalents The Company considers all highly liquid holdings with maturities of three months or less at the time of purchase to be cash equivalents. The Company had no Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts that reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on assessments of the collectability of specific customer accounts and the general aging and size of the accounts receivable. We regularly review the adequacy of our allowance for doubtful accounts by considering such factors as historical experience, credit worthiness, and current economic conditions that may affect a customer’s ability to pay. We specifically reserve for those accounts deemed uncollectible. We also establish, and adjust, a general allowance for doubtful accounts based on our review of the aging and size of our accounts receivable. As of December 31, 2022 and 2021, the allowance for doubtful accounts totaled $ 5,600 7,000 Long-Lived Assets Long-lived assets are assessed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, whenever we have committed to a plan to dispose of the assets or, at a minimum, annually. Typically, for long-lived assets to be held and used, measurement of an impairment loss is based on the fair value of such assets, with fair value being determined based on appraisals, current market value, comparable sales value, and discounted future cash flows, among other variables, as appropriate. Assets to be held and used (which assets are affected by an impairment loss) are depreciated or amortized at their new carrying amount over their remaining estimated life; assets to be sold or otherwise disposed of are not subject to further depreciation or amortization. No such impairment charge was recorded during the years ended December 31, 2022 or 2021. Right-of-use Assets (ROU) and Lease Liabilities On January 1, 2022, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), which establishes ASC 842 and supersedes the lease accounting guidance under ASC 840. The standard generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and provide enhanced disclosures on the amount, timing, and uncertainty of cash flows arising from lease arrangements. The Company adopted ASC 842 using the modified retrospective approach. The Company elected the package of practical expedients available for existing contracts, which allowed the Company to carry forward our historical assessments of lease identification, lease classification, and initial direct costs. The Company also elected a policy to not apply the recognition requirements of ASC 842 for short-term leases with a term of 12 months of less As of January 1, 2022, the effective date, the Company identified one operating lease arrangement relating to the Company’s headquarters facility. The adoption of ASC 842 resulted in a recognition of an ROU asset and lease liability of $ 73,800 Schedule of Operating Lease December 31, December 31, Operating lease: Operating lease right-of-use asset $ 51,600 $ - Operating lease liability, current portion $ 10,300 $ - Operating lease liability, net of current portion 40,900 - Total operating lease liabilities $ 51,200 $ - Weighted-average remaining lease term 1.7 weighted-average discount rate 0.41 % Property and Equipment Property and equipment are recorded at historical cost and depreciated on a straight-line basis over their estimated useful lives ranging from three to seven years . The Company recorded depreciation of $ 2,900 1,600 Software Development Costs Under the criteria set forth in Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 985-20, “Costs of Software to be Sold, Leased or Marketed,” Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and trade receivables. The Company places its cash with high quality financial institutions and, by policy, limits the amount of credit exposure to any one financial institution. As of December 31, 2022, the Company had cash with financial institutions in excess of FDIC insurance limits. For the year ended December 31, 2022, we had two resellers that represented more than 23.8 10 18.5 18.3 17.4 16.0 27.8 51.5 15.0 11.9 Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Basic and Diluted Earnings Per Share In accordance with ASC 260, “Earnings Per Share,” the basic income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted average common shares outstanding during the period. Diluted income (loss) per share reflects per share amounts that would have resulted if diluted potential common stock had been converted to common stock. Dilutive common share equivalents as of December 31, 2022 and 2021, representing 242,162 0 4,946 Stock-Based Compensation The Company applies the fair value recognition provisions of FASB ASC 718-10, “ Compensation – Stock Compensation. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of these financial instruments approximates fair value due to the nature of the accounts and their short-term maturities. The fair value of the Company’s assets and liabilities were determined in accordance with FASB ASC 820, “Fair Value Measurement,” ● Level 1: Defined as observable inputs, such as quoted (unadjusted) prices in active markets for identical assets or liabilities. ● Level 2: Defined as observable inputs other than quoted prices included in Level 1. This includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3: Defined as unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. We do not have level 2 and 3 liabilities or assets.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued Expenses	3. Accrued Expenses Accrued expenses as of December 31, 2022 and 2021 consisted of the following: Schedule of Accrued Expenses 2022 2021 Board of director fees 46,000 46,000 Professional services 7,200 13,100 Other 8,600 5,100 Total $ 61,800 $ 64,200

Stockholders_ Equity

Stockholders’ Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Stockholders’ Equity	4. Stockholders’ Equity Stock-Based Compensation Plans In November 2012, the Company’s 2012 Equity Incentive Plan (the “12 Plan”) was approved by the stockholders. Pursuant to the terms of the 12 Plan, stock options, stock appreciation rights, restricted stock and restricted stock units (sometimes referred to individually or collectively as “awards”) may be granted to officers and other employees, non-employee directors and independent consultants and advisors who render services to the Company. The Company was authorized to issue options to purchase up to 643,797 In the case of a restricted stock award, the entire number of shares subject to such award would be issued at the time of the grant and subject to vesting provisions based on time or other conditions specified by the Board or an authorized committee of the Board. For awards based on time, should the grantee’s service to the Company end before full vesting occurred, all unvested shares would be forfeited and returned to the Company. In the case of awards granted with vesting provisions based on specific performance conditions, if those conditions were not met, then all shares forfeited and returned to the Company. Until forfeited, all shares issued under a restricted stock award were considered outstanding for dividend, voting and other purposes. Under the 12 Plan, the exercise price of non-qualified stock options granted is to be no less than 100 100 10 110 100 All options granted under the 12 Plan were immediately exercisable by the optionee; however, there was a vesting period for the options. The options (and the shares of common stock issuable upon exercise of such options) vest, ratably, over a 33-month period; however, no options (and the underlying shares of common stock) vest until after three months from the date of the option grant. The exercise price was immediately due upon exercise of the option. The maximum term of options issued under the 12 Plan is ten years. Shares issued upon exercise of options are subject to the Company’s repurchase, which right lapses as the shares vest. The 12 Plan terminated was on November 7, 2022. As of December 31, 2022, there was no The following table summarizes the stock option activity for the year ended December 31, 2022 and 2021. Schedule of Stock Options Activity Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding at December 31, 2020 93,076 $ 3.03 0.74 Granted - Forfeited/cancelled (88,130 ) Outstanding at December 31, 2021 4,94 $ 3.86 0.12 Granted - Forfeited/cancelled (4,946 ) Exercised - Outstanding at December 31, 2022 - $ - - Vested and expected to vest at December 31, 2022 - $ - - Exercisable at December 31, 2022 - $ - - Warrants During both years ended December 31, 2022 and 2021, the Company did not issue any shares of common stock and had 248,216 warrants outstanding. The warrants outstanding at December 31, 2022 are all exercisable at $ 0.01 and have an expiration date of May 20, 2023 . The following summarized changes in the number of warrants outstanding for the year ended December 31, 2022 and 2021. Schedule of Warrants Outstanding Warrants Outstanding at December 31, 2020 248,216 Granted - Exercised - Outstanding at December 31, 2021 248,216 Granted - Exercised - Outstanding at December 31, 2022 248,216

Sales by Geographical Location

Sales by Geographical Location	12 Months Ended
	Dec. 31, 2022
Sales By Geographical Location
Sales by Geographical Location	5. Sales by Geographical Location Revenue by country for the year ended December 31, 2022 and 2021 was as follows: Schedule of Revenue by Country For the Year Ended December 31, 2022 December 31, 2021 Revenue by Country United States $ 1,547,600 $ 1,457,300 Brazil 1,016,700 869,900 Japan 310,000 360,600 Other Countries 1,034,300 924,900 Total $ 3,908,600 $ 3,612,700

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes The components of the provision (benefit) for income taxes for the years ended December 31, 2022 and 2021 consisted of the following: Schedule of Components of Income Tax Expense (Benefit) 2022 2021 Current Federal $ — $ — State — — Foreign — — Current income tax expense $ — $ — Deferred Federal $ — $ — State — — Foreign — — Deferred income tax expense — — Total $ — $ — The following table summarizes the differences between income tax expense and the amount computed applying the federal income tax rate of 21 Schedule of Effective Income Tax Rate Reconciliation 2022 2021 Federal income tax (benefit) at statutory rate $ 25,900 $ 221,000 State income tax (benefit) at statutory rate 2,700 24,000 Stock-based compensation – NQ cancellations - 61,100 Meals and entertainment 400 200 Change in valuation allowance (2,737,800 ) (2,670,000 ) Adjustments and NOL expirations 2,708,800 2,363,700 Provision (benefit) for income tax $ - $ - Deferred income taxes and benefits result from temporary timing differences in the recognition of certain expense and income items for tax and financial reporting purposes. The following table sets forth those differences as of December 31, 2022 and 2021: Schedule of Deferred Tax Assets and Liabilities 2022 2021 Net operating loss carryforwards $ 6,495,800 $ 9,135,000 Tax credit carryforwards 445,900 572,900 Compensation expense – non-qualified stock options - 900 Deferred revenue and maintenance service contracts 318,500 326,500 Reserves and other 110,500 41,600 Total deferred tax assets 7,370,700 10,076,900 Deferred tax liability – depreciation, amortization and capitalized software - 100 Net deferred tax asset 7,370,700 10,077,000 Valuation allowance (7,370,700 ) (10,077,000 ) Net deferred tax asset $ - $ - For financial reporting purposes, with the exception of recent years, the Company has incurred a loss in each year since inception. Based on the available objective evidence, and considering all available positive and negative evidence, including but not limited to projected future taxable income, tax-planning strategies and results of operations, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against its net deferred tax assets at December 31, 2022 and 2021. The net change in the valuation allowance was decreased by $ 2,706,000 2,395,000 At December 31, 2022, the Company had approximately $ 30.2 6.9 expire in 2023 expire in 2028 50 At December 31, 2022, the Company had approximately $ 0.4 million of federal research and development tax credits that began to expire in 2023

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Leases Our headquarters in Concord, NH signed a three-year lease on August 1 st 2,500 Rent expense aggregated approximately $ 47,400 42,000 Supplemental balance sheet information related to leases as of December 31, 2022 is as follows: Schedule of Operating Leases Future Minimum Lease Payments Future minimum lease payments: 2023 30,700 2024 20,700 Total future minimum lease payments $ 51,400 Less: Lease imputed interest 200 Total $ 51,200 Contingencies Under its Amended and Restated Certificate of Incorporation and Second Amended and Restated Bylaws and certain agreements with officers and directors, the Company has agreed to indemnify its officers and directors for certain events or occurrences arising as a result of the officer’s or director’s serving in such capacity. Generally, the term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is limited as the Company currently has a directors and officers liability insurance policy that limits its exposure and enables it to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements is minimal and has no liabilities recorded for these agreements as of December 31, 2022. The Company enters into indemnification provisions under (i) its agreements with other companies in its ordinary course of business, including contractors and customers and (ii) its agreements with investors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities or, in some cases, as a result of the indemnified party’s activities under the agreement. These indemnification provisions often include indemnifications relating to representations made by the Company with regard to intellectual property rights, and often survive termination of the underlying agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2022. The Company’s software license agreements also generally include a performance guarantee that the Company’s software products will operate substantially as described in the applicable program documentation for a period of 90 days after delivery. The Company also generally warrants that services that the Company performs will be provided in a manner consistent with reasonably applicable industry standards. To date, the Company has not incurred any material costs associated with these warranties and has no liabilities recorded for these agreements as of December 31, 2022. Profit Sharing Plans The Company has adopted a 401(k) plan to provide retirement benefits for employees under which the Company makes discretionary matching contributions. During December 31, 2022 and 2021, the Company contributed a total of $ 12,500 16,000

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of hopTo Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated upon consolidation. The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to financial information and the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”).
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Amounts could materially change in the future. These estimates include the allowance for doubtful accounts and timing of revenue recognized over time. While the Company believes that such estimates are fair, actual results could differ materially from those estimates.
Liquidity	Liquidity The Company has incurred significant net losses since inception. As of December 31, 2022, we had working capital of $ 4,307,400 1,206,100
Revenue Recognition	Revenue Recognition The Company markets and licenses its products indirectly through channel distributors, value-added resellers, independent software vendors (“ISVs”), hosting service providers, corporate enterprises, governmental and educational institutions and others. Our product licenses are perpetual. We also separately sell intellectual property licenses, maintenance contracts, which are comprised of license updates and customer service access, as well as other products and services. There are no rights of return granted to purchasers of the Company’s software products. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” Revenues under ASC 606 are recognized when the promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. For the years ended December 31, 2022 and 2021, revenue recognition was determined by ● identifying the contract, or contracts, with a customer; ● identifying the performance obligations in each contract; ● determine the transaction price; ● allocating the transaction price to the performance obligations in each contract; and ● recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services When control of the promised products and services are transferred to our customers, we recognize revenue in the amount that reflects the consideration we expect to receive in exchange for these products and services. Product Sales All of our licenses are delivered to the customer electronically. The Company sends the license key to the customer to download the related software from Company portal. We recognize revenue upon delivery of these licenses. For stocking resellers who purchase licenses through inventory stocking orders with the intent to resell to an end-user, revenue is recognized when the resellers’ accounts have been credited, at their discretion, for the number of licenses purchased. Maintenance revenue was also recognized from service contracts ratably over the related contract period. The Company operates in one reportable segment. The Company’s product sales by geographic area are presented in Note 6.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid holdings with maturities of three months or less at the time of purchase to be cash equivalents. The Company had no
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts that reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on assessments of the collectability of specific customer accounts and the general aging and size of the accounts receivable. We regularly review the adequacy of our allowance for doubtful accounts by considering such factors as historical experience, credit worthiness, and current economic conditions that may affect a customer’s ability to pay. We specifically reserve for those accounts deemed uncollectible. We also establish, and adjust, a general allowance for doubtful accounts based on our review of the aging and size of our accounts receivable. As of December 31, 2022 and 2021, the allowance for doubtful accounts totaled $ 5,600 7,000
Long-Lived Assets	Long-Lived Assets Long-lived assets are assessed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, whenever we have committed to a plan to dispose of the assets or, at a minimum, annually. Typically, for long-lived assets to be held and used, measurement of an impairment loss is based on the fair value of such assets, with fair value being determined based on appraisals, current market value, comparable sales value, and discounted future cash flows, among other variables, as appropriate. Assets to be held and used (which assets are affected by an impairment loss) are depreciated or amortized at their new carrying amount over their remaining estimated life; assets to be sold or otherwise disposed of are not subject to further depreciation or amortization. No such impairment charge was recorded during the years ended December 31, 2022 or 2021.
Right-of-use Assets (ROU) and Lease Liabilities	Right-of-use Assets (ROU) and Lease Liabilities On January 1, 2022, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), which establishes ASC 842 and supersedes the lease accounting guidance under ASC 840. The standard generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and provide enhanced disclosures on the amount, timing, and uncertainty of cash flows arising from lease arrangements. The Company adopted ASC 842 using the modified retrospective approach. The Company elected the package of practical expedients available for existing contracts, which allowed the Company to carry forward our historical assessments of lease identification, lease classification, and initial direct costs. The Company also elected a policy to not apply the recognition requirements of ASC 842 for short-term leases with a term of 12 months of less As of January 1, 2022, the effective date, the Company identified one operating lease arrangement relating to the Company’s headquarters facility. The adoption of ASC 842 resulted in a recognition of an ROU asset and lease liability of $ 73,800 Schedule of Operating Lease December 31, December 31, Operating lease: Operating lease right-of-use asset $ 51,600 $ - Operating lease liability, current portion $ 10,300 $ - Operating lease liability, net of current portion 40,900 - Total operating lease liabilities $ 51,200 $ - Weighted-average remaining lease term 1.7 weighted-average discount rate 0.41 %
Property and Equipment	Property and Equipment Property and equipment are recorded at historical cost and depreciated on a straight-line basis over their estimated useful lives ranging from three to seven years . The Company recorded depreciation of $ 2,900 1,600
Software Development Costs	Software Development Costs Under the criteria set forth in Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 985-20, “Costs of Software to be Sold, Leased or Marketed,”
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and trade receivables. The Company places its cash with high quality financial institutions and, by policy, limits the amount of credit exposure to any one financial institution. As of December 31, 2022, the Company had cash with financial institutions in excess of FDIC insurance limits. For the year ended December 31, 2022, we had two resellers that represented more than 23.8 10 18.5 18.3 17.4 16.0 27.8 51.5 15.0 11.9
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Basic and Diluted Earnings Per Share	Basic and Diluted Earnings Per Share In accordance with ASC 260, “Earnings Per Share,” the basic income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted average common shares outstanding during the period. Diluted income (loss) per share reflects per share amounts that would have resulted if diluted potential common stock had been converted to common stock. Dilutive common share equivalents as of December 31, 2022 and 2021, representing 242,162 0 4,946
Stock-Based Compensation	Stock-Based Compensation The Company applies the fair value recognition provisions of FASB ASC 718-10, “ Compensation – Stock Compensation.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of these financial instruments approximates fair value due to the nature of the accounts and their short-term maturities. The fair value of the Company’s assets and liabilities were determined in accordance with FASB ASC 820, “Fair Value Measurement,” ● Level 1: Defined as observable inputs, such as quoted (unadjusted) prices in active markets for identical assets or liabilities. ● Level 2: Defined as observable inputs other than quoted prices included in Level 1. This includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3: Defined as unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. We do not have level 2 and 3 liabilities or assets.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of Operating Lease	Schedule of Operating Lease December 31, December 31, Operating lease: Operating lease right-of-use asset $ 51,600 $ - Operating lease liability, current portion $ 10,300 $ - Operating lease liability, net of current portion 40,900 - Total operating lease liabilities $ 51,200 $ - Weighted-average remaining lease term 1.7 weighted-average discount rate 0.41 %

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses as of December 31, 2022 and 2021 consisted of the following: Schedule of Accrued Expenses 2022 2021 Board of director fees 46,000 46,000 Professional services 7,200 13,100 Other 8,600 5,100 Total $ 61,800 $ 64,200

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Schedule of Stock Options Activity	The following table summarizes the stock option activity for the year ended December 31, 2022 and 2021. Schedule of Stock Options Activity Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding at December 31, 2020 93,076 $ 3.03 0.74 Granted - Forfeited/cancelled (88,130 ) Outstanding at December 31, 2021 4,94 $ 3.86 0.12 Granted - Forfeited/cancelled (4,946 ) Exercised - Outstanding at December 31, 2022 - $ - - Vested and expected to vest at December 31, 2022 - $ - - Exercisable at December 31, 2022 - $ - -
Schedule of Warrants Outstanding	The following summarized changes in the number of warrants outstanding for the year ended December 31, 2022 and 2021. Schedule of Warrants Outstanding Warrants Outstanding at December 31, 2020 248,216 Granted - Exercised - Outstanding at December 31, 2021 248,216 Granted - Exercised - Outstanding at December 31, 2022 248,216

Sales by Geographical Location

Sales by Geographical Location (Tables)	12 Months Ended
	Dec. 31, 2022
Sales By Geographical Location
Schedule of Revenue by Country	Revenue by country for the year ended December 31, 2022 and 2021 was as follows: Schedule of Revenue by Country For the Year Ended December 31, 2022 December 31, 2021 Revenue by Country United States $ 1,547,600 $ 1,457,300 Brazil 1,016,700 869,900 Japan 310,000 360,600 Other Countries 1,034,300 924,900 Total $ 3,908,600 $ 3,612,700

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The components of the provision (benefit) for income taxes for the years ended December 31, 2022 and 2021 consisted of the following: Schedule of Components of Income Tax Expense (Benefit) 2022 2021 Current Federal $ — $ — State — — Foreign — — Current income tax expense $ — $ — Deferred Federal $ — $ — State — — Foreign — — Deferred income tax expense — — Total $ — $ —
Schedule of Effective Income Tax Rate Reconciliation	The following table summarizes the differences between income tax expense and the amount computed applying the federal income tax rate of 21 Schedule of Effective Income Tax Rate Reconciliation 2022 2021 Federal income tax (benefit) at statutory rate $ 25,900 $ 221,000 State income tax (benefit) at statutory rate 2,700 24,000 Stock-based compensation – NQ cancellations - 61,100 Meals and entertainment 400 200 Change in valuation allowance (2,737,800 ) (2,670,000 ) Adjustments and NOL expirations 2,708,800 2,363,700 Provision (benefit) for income tax $ - $ -
Schedule of Deferred Tax Assets and Liabilities	Deferred income taxes and benefits result from temporary timing differences in the recognition of certain expense and income items for tax and financial reporting purposes. The following table sets forth those differences as of December 31, 2022 and 2021: Schedule of Deferred Tax Assets and Liabilities 2022 2021 Net operating loss carryforwards $ 6,495,800 $ 9,135,000 Tax credit carryforwards 445,900 572,900 Compensation expense – non-qualified stock options - 900 Deferred revenue and maintenance service contracts 318,500 326,500 Reserves and other 110,500 41,600 Total deferred tax assets 7,370,700 10,076,900 Deferred tax liability – depreciation, amortization and capitalized software - 100 Net deferred tax asset 7,370,700 10,077,000 Valuation allowance (7,370,700 ) (10,077,000 ) Net deferred tax asset $ - $ -

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Operating Leases Future Minimum Lease Payments	Supplemental balance sheet information related to leases as of December 31, 2022 is as follows: Schedule of Operating Leases Future Minimum Lease Payments Future minimum lease payments: 2023 30,700 2024 20,700 Total future minimum lease payments $ 51,400 Less: Lease imputed interest 200 Total $ 51,200

Schedule of Operating Lease (De

Schedule of Operating Lease (Details) - USD ($)	Dec. 31, 2022	Jan. 01, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Operating lease right-of-use asset	$ 51,600	$ 73,800
Operating lease liability, current portion	10,300
Operating lease liability, net of current portion	40,900
Total operating lease liabilities	$ 51,200	$ 73,800
Weighted-average remaining lease term	1 year 8 months 12 days
weighted-average discount rate	0.41%

Significant Accounting Polici_4

Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Jan. 01, 2022
Product Information [Line Items]
Working capital	$ 4,307,400
Deferred revenue	1,206,100	$ 1,033,800
Cash equivalents at carrying value	0	0
Allowance for doubtful accounts	5,600	7,000
Operating lease right of use asset	51,600		$ 73,800
Operating lease liability	51,200		$ 73,800
Depreciation	$ 2,900	$ 1,600
Number of common shares equivalents of outstanding in money warrants	242,162	242,162
Anti-dilutive shares	0	4,946
Accounts Receivable [Member] | Resellers One [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration of credit risk percentage	18.50%	51.50%
Accounts Receivable [Member] | Resellers Two [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration of credit risk percentage	18.30%	15%
Accounts Receivable [Member] | Resellers Three [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration of credit risk percentage	17.40%	11.90%
Accounts Receivable [Member] | Resellers Four [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration of credit risk percentage	16%
Minimum [Member]
Product Information [Line Items]
Estimated useful lives	3 years
Minimum [Member] | Accounts Receivable [Member] | Reseller One [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration of credit risk percentage	23.80%	27.80%
Minimum [Member] | Accounts Receivable [Member] | Reseller Two [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration of credit risk percentage	10%
Maximum [Member]
Product Information [Line Items]
Estimated useful lives	7 years

Schedule of Accrued Expenses (D

Schedule of Accrued Expenses (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Board of director fees	$ 46,000	$ 46,000
Professional services	7,200	13,100
Other	8,600	5,100
Total	$ 61,800	$ 64,200

Schedule of Stock Options Activ

Schedule of Stock Options Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Options Outstanding, Beginning Balance	4.94	93,076
Weighted Average Exercise Price, Outstanding Beginning Balance	$ 3.86	$ 3.03
Weighted Average Remaining Contractual Life (Years) Outstanding, Ending		1 month 13 days	8 months 26 days
Options Outstanding, Granted
Options Outstanding, Forfeited/cancelled	(4,946)	(88,130)
Options Outstanding, exercised
Options Outstanding, Ending Balance		4.94	93,076
Weighted Average Exercise Price, Outstanding Ending Balance		$ 3.86	$ 3.03
Options Outstanding, Vested and expected to vest
Weighted Average Exercise Price, Vested and expected to vest
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest
Options Exercisable
Weighted Average Exercise Price
Weighted Average Remaining Contractual Life (Years) Exercisable

Schedule of Warrants Outstandin

Schedule of Warrants Outstanding (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Equity [Abstract]
Warrants Outstanding, Beginning balance	248,216	248,216
Warrants Outstanding, Granted
Warrants Outstanding, Exercised
Warrants Outstanding, ending balance	248,216	248,216

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Class of Warrant or Right, Outstanding	248,216	248,216
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.01
Warrants and Rights Outstanding, Maturity Date	May 20, 2023
2012 Equity Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock option authorized shares	643,797
2012 Equity Incentive Plan [Member] | Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock remained available for issuance	0
2012 Equity Incentive Plan [Member] | Non Qualified Stock Options [Member] | Minimum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock options percentage	100%
2012 Equity Incentive Plan [Member] | Non Qualified Stock Options [Member] | Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock options percentage	110%
2012 Equity Incentive Plan [Member] | Incentive Stock Options [Member] | Minimum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock options percentage	10%
2012 Equity Incentive Plan [Member] | Incentive Stock Options [Member] | Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock options percentage	100%
2012 Equity Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock options percentage	100%

Schedule of Revenue by Country

Schedule of Revenue by Country (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue by country	$ 3,908,600	$ 3,612,700
UNITED STATES
Revenue by country	1,547,600	1,457,300
BRAZIL
Revenue by country	1,016,700	869,900
JAPAN
Revenue by country	310,000	360,600
Other Countries [Member]
Revenue by country	$ 1,034,300	$ 924,900

Schedule of Components of Incom

Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Federal
State
Foreign
Current income tax expense
Federal
State
Foreign
Deferred income tax expense
Total

Schedule of Effective Income Ta

Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Federal income tax (benefit) at statutory rate	$ 25,900	$ 221,000
State income tax (benefit) at statutory rate	2,700	24,000
Stock-based compensation – NQ cancellations		61,100
Meals and entertainment	400	200
Change in valuation allowance	(2,737,800)	(2,670,000)
Adjustments and NOL expirations	2,708,800	2,363,700
Provision (benefit) for income tax

Schedule of Deferred Tax Assets

Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 6,495,800	$ 9,135,000
Tax credit carryforwards	445,900	572,900
Compensation expense – non-qualified stock options		900
Deferred revenue and maintenance service contracts	318,500	326,500
Reserves and other	110,500	41,600
Total deferred tax assets	7,370,700	10,076,900
Deferred tax liability – depreciation, amortization and capitalized software		100
Net deferred tax asset	7,370,700	10,077,000
Valuation allowance	(7,370,700)	(10,077,000)
Net deferred tax asset

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Federal income tax rate	21%	21%
Net change in valuation allowance	$ 2,706,000	$ 2,395,000
Percentage of cumulative ownership	50%
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member]
Operating Loss Carryforwards [Line Items]
Operating loss expiration date	expire in 2023
Federal research and development tax credits	$ 400,000
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 30,200,000
Operating loss expiration date	expire in 2023
State and Local Jurisdiction [Member] | California Franchise Tax Board [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 6,900,000
Operating loss expiration date	expire in 2028

Schedule of Operating Leases Fu

Schedule of Operating Leases Future Minimum Lease Payments (Details) - USD ($)	Dec. 31, 2022	Jan. 01, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
2023	$ 30,700
2024	20,700
Total future minimum lease payments	51,400
Less: Lease imputed interest	200
Total	$ 51,200	$ 73,800

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Product Liability Contingency [Line Items]
Rent expense	$ 47,400	$ 42,000
Profit sharing plans	12,500	$ 16,000
Concord, NH Headquarters [Member]
Product Liability Contingency [Line Items]
Rent expense	$ 2,500