HeartCore Enterprises (HTCR) 10-Q 22 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 22, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-41272
Entity Registrant Name	HeartCore Enterprises, Inc.
Entity Central Index Key	0001892322
Entity Tax Identification Number	87-0913420
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1-2-33
Entity Address, Address Line Two	Higashigotanda
Entity Address, Address Line Three	Shinagawa-ku
Entity Address, City or Town	Tokyo
Entity Address, Country	JP
City Area Code	(206)
Local Phone Number	385-0488
Title of 12(b) Security	Common Stock
Trading Symbol	HTCR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,842,690

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 5,209,915	$ 7,177,326
Accounts receivable	2,380,128	551,064
Short-term investment in warrants	437,812
Prepaid expenses	919,916	538,230
Due from related party	$ 47,536	$ 48,447
Other Receivable, after Allowance for Credit Loss, Current, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Other current assets	$ 31,534	$ 220,070
Total current assets	9,026,841	8,535,137
Non-current assets:
Property and equipment, net	214,566	203,627
Operating lease right-of-use assets	2,549,834	2,644,957
Intangible asset, net	4,993,750
Goodwill	3,276,441
Long-term investment in warrants	3,764,888
Deferred tax assets	245,997	263,339
Security deposits	367,981	244,395
Long-term loan receivable from related party	$ 229,955	$ 246,472
Other Receivable, after Allowance for Credit Loss, Noncurrent, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Other non-current assets	$ 75	$ 661
Total non-current assets	15,643,487	3,603,451
Total assets	24,670,328	12,138,588
Current liabilities:
Accounts payable and accrued expenses	1,160,309	497,742
Accrued payroll and other employee costs	416,779	360,222
Current portion of long-term debts	640,534	697,877
Insurance premium financing	352,518
Factoring liability	173,582
Operating lease liabilities, current	288,081	291,863
Finance lease liabilities, current	13,663	19,294
Income tax payables	681,830	2,747
Deferred revenue	1,530,472	1,724,519
Total current liabilities	5,485,858	3,647,693
Non-current liabilities:
Long-term debts	1,490,664	1,123,735
Operating lease liabilities, non-current	2,314,160	2,421,054
Finance lease liabilities, non-current		459
Deferred tax liabilities	1,398,250
Other non-current liabilities	135,536	138,018
Total non-current liabilities	5,338,610	3,683,266
Total liabilities	10,824,468	7,330,959
Shareholders’ equity:
Preferred shares ($0.0001 par value, 20,000,000 shares authorized, no shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively)
Common shares ($0.0001 par value, 200,000,000 shares authorized; 20,842,690 and 17,649,886 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively)	2,083	1,764
Additional paid-in capital	19,079,516	15,014,607
Accumulated deficit	(8,691,290)	(10,573,579)
Accumulated other comprehensive income	342,093	364,837
Total HeartCore Enterprises, Inc. shareholders’ equity	10,732,402	4,807,629
Non-controlling interest	3,113,458
Total shareholders’ equity	13,845,860	4,807,629
Total liabilities and shareholders’ equity	24,670,328	12,138,588
Related Party [Member]
Current liabilities:
Other current liabilities	2,923	402
Nonrelated Party [Member]
Current liabilities:
Other current liabilities	$ 225,167	$ 53,027

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	20,842,690	17,649,886
Common stock, shares outstanding	20,842,690	17,649,886

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues	$ 8,734,150	$ 2,276,001
Cost of revenues	3,101,066	1,055,356
Gross profit	5,633,084	1,220,645
Operating expenses:
Selling expenses	568,642	205,918
General and administrative expenses	2,685,207	2,468,933
Research and development expenses	79,624	108,259
Total operating expenses	3,333,473	2,783,110
Income (loss) from operations	2,299,611	(1,562,465)
Other income (expenses):
Changes in fair value of investments in warrants	193,365
Interest income	31,605	1,458
Interest expenses	(39,840)	(11,271)
Other income	14,201	16,673
Other expenses	(29,457)	(23,662)
Total other income (expenses)	169,874	(16,802)
Income (loss) before income tax provision	2,469,485	(1,579,267)
Income tax expense (benefit)	661,448	(816)
Net income (loss)	1,808,037	(1,578,451)
Less: net loss attributable to non-controlling interest	(74,252)
Net income (loss) attributable to HeartCore Enterprises, Inc.	1,882,289	(1,578,451)
Other comprehensive income (loss):
Foreign currency translation adjustment	(25,034)	80,053
Total comprehensive income (loss)	1,783,003	(1,498,398)
Less: comprehensive loss attributable to non-controlling interest	(76,542)
Comprehensive income (loss) attributable to HeartCore Enterprises, Inc.	$ 1,859,545	$ (1,498,398)
Net income (loss) per common share attributable to HeartCore Enterprises, Inc.
Basic	$ 0.10	$ (0.09)
Diluted	$ 0.10	$ (0.09)
Weighted average common shares outstanding
Basic	19,066,160	17,265,332
Diluted	19,066,160	17,265,332

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Deficit) (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Beginning balance at Dec. 31, 2021	$ 1,554	$ 3,350,779	$ (3,896,113)	$ (15,172)	$ (558,952)		$ (558,952)
Beginning balance, shares at Dec. 31, 2021	15,546,454
Net income (loss)			(1,578,451)		(1,578,451)		(1,578,451)
Foreign currency translation adjustment				80,053	80,053		80,053
Issuance of common shares for cash	$ 310	13,643,969			13,644,279		13,644,279
Issuance of common shares for cash, shares	3,096,000
Issuance of common shares from exercise of share options	$ 27	(11)			16		16
Issuance of common shares from exercise of share options, shares	273,489
Stock-based compensation		422,164			422,164		422,164
Stock-based compensation, shares	692,804
Ending balance at Mar. 31, 2022	$ 1,891	17,416,901	(5,474,564)	64,881	12,009,109		12,009,109
Ending balance, shares at Mar. 31, 2022	18,915,943
Beginning balance at Dec. 31, 2022	$ 1,764	15,014,607	(10,573,579)	364,837	4,807,629		4,807,629
Beginning balance, shares at Dec. 31, 2022	17,649,886
Net income (loss)			1,882,289		1,882,289	(74,252)	1,808,037
Foreign currency translation adjustment				(22,744)	(22,744)	(2,290)	(25,034)
Stock-based compensation	69	915,159			915,228		915,228
Issuance of common shares for acquisition of subsidiary	$ 250	3,149,750			3,150,000		3,150,000
Issuance of common shares for acquisition of subsidiary, shares	2,500,000
Non-controlling interests arising from acquisition of subsidiary						3,190,000	3,190,000
Ending balance at Mar. 31, 2023	$ 2,083	$ 19,079,516	$ (8,691,290)	$ 342,093	$ 10,732,402	$ 3,113,458	$ 13,845,860
Ending balance, shares at Mar. 31, 2023	20,842,690

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income (loss)	$ 1,808,037	$ (1,578,451)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization expenses	123,312	24,889
Amortization of debt issuance costs	758	866
Non-cash lease expense	76,017	75,986
Deferred income taxes	(17,284)	6,311
Stock-based compensation	915,228	422,164
Warrants received as noncash consideration	(4,009,335)
Changes in fair value of investments in warrants	(193,365)
Changes in assets and liabilities:
Accounts receivable	(66,833)	(217,638)
Prepaid expenses	(45)	(488,970)
Other assets	78,241	(34,896)
Accounts payable and accrued expenses	(94,363)	(79,982)
Accrued payroll and other employee costs	(178,733)	(27,492)
Due to related party	2,544
Operating lease liabilities	(73,147)	(78,226)
Finance lease liabilities	(53)	(174)
Income tax payables	678,725	(10,037)
Deferred revenue	(167,873)	(295,176)
Other liabilities	70,110	(113,027)
Net cash flows used in operating activities	(1,048,059)	(2,393,853)
Cash flows from investing activities:
Purchases of property and equipment	(9,409)	(18,903)
Advance and loan provided to related party		(25,480)
Repayment of loan provided to related party	11,955	9,102
Payment for acquisition of subsidiary, net of cash acquired	(724,910)
Net cash flows used in investing activities	(722,364)	(35,281)
Cash flows from financing activities:
Proceeds from initial public offering, net of issuance cost		13,602,554
Proceeds from issuance of common shares prior to initial public offering		220,572
Payments for finance leases	(5,658)	(14,916)
Proceeds from long-term debt		258,087
Repayment of long-term debts	(265,255)	(308,121)
Repayment of insurance premium financing	(36,517)	(41,280)
Repayment to related party		(903)
Net proceeds from factoring arrangement	173,582
Payments for debt issuance costs	(448)	(1,030)
Payment for mandatorily redeemable financial interest		(430,489)
Net cash flows provided by (used in) financing activities	(134,296)	13,284,474
Effect of exchange rate changes	(62,692)	(78,293)
Net change in cash and cash equivalents	(1,967,411)	10,777,047
Cash and cash equivalents - beginning of the period	7,177,326	3,136,839
Cash and cash equivalents - end of the period	5,209,915	13,913,886
Supplemental cash flow disclosure:
Interest paid	16,968	13,262
Income taxes paid		1,489
Non-cash investing and financing transactions:
Payroll withheld as repayment of loan receivable from employees		2,065
Expense paid by related party on behalf of the Company		25,480
Share repurchase liability settled by issuance of common shares		16
Deferred offering costs recognized against the proceeds from the offering		178,847
Insurance premium financing	389,035	388,538
Liabilities assumed in connection with purchase of property and equipment	6,288
Common shares issued for acquisition of subsidiary	$ 3,150,000

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS HeartCore Enterprises, Inc. (“HeartCore USA” or the “Company”), a holding company, was incorporated under the laws of the State of Delaware on May 18, 2021. On July 16, 2021, the Company executed a Share Exchange Agreement with certain shareholders of HeartCore Co., Ltd. (“HeartCore Japan”), a company that was incorporated in Japan on June 12, 2009. Pursuant to the terms of the Share Exchange Agreement, the Company issued 15,999,994 10,706 10,984 97.5% 278 The share exchange on July 16, 2021 has been accounted for as a recapitalization between entities under common control since the same controlling shareholders controlled these two entities before and after the transaction. The consolidation of the Company and its subsidiary has been accounted for at historical cost and prepared on the basis as if the transaction had become effective as of the beginning of the earliest period presented in the accompanying consolidated financial statements. The Company, via its wholly-owned operating subsidiary, HeartCore Japan, is mainly engaged in the business of developing and sales of comprehensive software. Beginning from early 2022, HeartCore USA is engaged in business of providing consulting services to Japanese companies with intention to go public in the United States capital market. On September 6, 2022, HeartCore USA entered into a share exchange and purchase agreement (“Sigmaways Agreement”) to acquire 51% In January 2023, HeartCore USA incorporated a wholly-owned subsidiary, HeartCore Financial, Inc. (“HeartCore Financial”), under the laws of the State of Delaware. HeartCore Financial is engaged in the business of providing financial consulting services. In February 2023, HeartCore USA incorporated a wholly-owned subsidiary, HeartCore Capital Advisors, Inc. (“HeartCore Capital Advisors”), in Japan. HeartCore Capital Advisors is engaged in the business of providing financial consulting services to Japanese companies. HeartCore USA, HeartCore Japan, Sigmaways, Sigmaways B.V., Sigmaways Technologies, HeartCore Financial and HeartCore Capital Advisors are hereafter referred to as the Company.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. These unaudited interim consolidated financial statements do not include all of the information and disclosure required by the U.S. GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments consisting of normal recurring nature considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022. Use of Estimates In preparing the unaudited consolidated financial statements in conformity U.S. GAAP, the management is required to make certain 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 reporting period. These estimates are based on information available as of the date of the unaudited consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the allowance for credit losses, useful lives of property and equipment, the impairment of long-lived assets and goodwill, valuation of stock-based compensation, valuation allowance of deferred tax assets, implicit interest rate of operating and financing leases, valuation of asset retirement obligations, valuation of investments in warrants, revenue recognition and purchase price allocation with respect to business combination. Actual results could differ from those estimates. COVID-19 While the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment actions, it has already had an adverse effect on the global economy and the lasting effects of the pandemic continue to be unknown. The Company may experience customer losses, including due to bankruptcy or customers ceasing operations, which may result in delays in collections or an inability to collect accounts receivable from these customers. The extent to which COVID-19 may continue to impact the Company’s financial condition, results of operations, or liquidity continues to remain uncertain, and as of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, which will be recognized in the unaudited consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s unaudited consolidated financial statements. Asset Retirement Obligations Pursuant to the lease agreements for the office space, the Company is responsible to restore these spaces back to its original statute at the time of leaving. The Company recognizes an obligation related to these restorations as asset retirement obligation included in other non-current liabilities in the consolidated balance sheets, in accordance with the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) Topic 410, “Asset Retirement Obligation Accounting”. The Company capitalizes the associated asset retirement cost by increasing the carrying amount of the related property and equipment. The following table presents changes in asset retirement obligations: SCHEDULE OF CHANGES IN ASSET RETIREMENT OBLIGATIONS March 31, December 31, 2023 2022 Beginning balance $ 138,018 $ 155,666 Accretion expense 112 459 Foreign currency translation adjustment (2,594 ) (18,107 ) Ending balance $ 135,536 $ 138,018 Software Development Costs Software development costs are expensed as incurred until the point the Company establishes technological feasibility. Technological feasibility is established upon completion of a detailed program design or the completion of a working model. Costs incurred by the Company between establishment of technological feasibility and the point at which the product is ready for general release are capitalized and amortized over the economic life of the related products. The Company’s software development costs incurred subsequent to achieving technological feasibility have not been significant and all software development costs have been expensed as incurred. In the three months ended March 31, 2023 and 2022, software development costs expensed as incurred amounted to $ 79,624 108,259 Investments in Warrants Investments in warrants represent stock warrants of its consulting service customers and are not registered for public sale. The warrants are measured at fair value and any changes in fair value are recognized in other income (expenses). Investment in warrants is classified as short-term if the maturity is within one year, and as long-term if the maturity is over one year. Intangible Asset, Net Intangible asset represents the customer relationship acquired from business acquisition of Sigmaways and its subsidiaries. The acquired intangible asset is recognized and measured at fair value at the time of acquisition and is amortized on a straight-line basis over the estimated economic useful life of the respective assets. The estimated useful life of the customer relationship is 8 years. Impairment of Long-Lived Assets Other Than Goodwill Long-lived assets with finite lives, primarily property and equipment, operating lease right-of-use assets and intangible asset, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with ASC Topic 350, “Intangibles – Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. Foreign Currency Translation The functional currency of HeartCore Japan and HeartCore Capital Advisors is the Japanese Yen (“JPY”). The functional currency of HeartCore USA, HeartCore Financial and Sigmaways is the United States Dollar (“US$”). The functional currency of Sigmaways B.V. is the Euro (“EUR”). The functional currency of Sigmaways Technologies is the Canada Dollar (“CAD”). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the unaudited consolidated statements of operations. The reporting currency of the Company is the US$, and the accompanying unaudited consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statements”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements are recorded as a separate component of accumulated other comprehensive income (loss) within the statements of changes in shareholders’ equity. Revenue Recognition The Company recognizes revenues under ASC Topic 606, “Revenue from Contracts with customers”. To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. Revenue amount represents the invoiced value, net of value-added taxes and applicable local government levies. The Company currently generates its revenues from the following main sources: Revenues from On-Premise Software Licenses for on-premise software provide the customer with a right to use the software as it exists when made available to the customer. The Company provides on-premise software in the form of both perpetual licenses and term-based licenses which grant the customers with the right for a specified term. Revenues from on-premise licenses are recognized upfront at the point in time when the software is made available to the customer. Licenses for on-premise software are typically sold to the customer with maintenance and support services in a bundle. Revenues under the bundled arrangements are allocated based on the relative standalone selling prices (“SSP”) of on-premise software and maintenance and support service. The SSP for maintenance and support services is estimated based upon observable transactions when those services are sold on a standalone basis. The SSP of on-premise software is typically estimated using the residual approach as the Company is unable to establish the SSP for on-premise licenses based on observable prices given the same products are sold for a broad range of amounts (that is, the selling price is highly variable) and a representative SSP is not discernible from past transactions or other observable evidence. Revenues from Maintenance and Support Services Maintenance and support services provided with software licenses consist of trouble shooting, technical support and the right to receive unspecified software updates when and if available during the subscription. Revenues from maintenance and support services are recognized over time as such services are performed. Revenues for consumption-based services are generally recognized as the services are performed and accepted by the customers. Revenues from Software as a Service (“SaaS”) The Company’s software is available for use as hosted application arrangements under subscription fee agreements without licensing the rights of the software to the customers. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the Company’s solution is made available to the customer. The subscription contracts are generally one year or less in length. Revenues from Software Development and Other Miscellaneous Services The Company provides customers with software development and support services pursuant to their specific requirements, which primarily compose of consulting, integration, training, custom application, and workflow development. The Company also provides other miscellaneous services, such as 3D Space photography. The Company generally recognizes revenue at a point in time when control is transferred to the customers and the Company is entitled to the payment, which is when the promised services are delivered and accepted by the customers. Revenues from Customized Software Development and Services The Company’s customized software development and services revenues primarily include revenues from providing software development solutions and other support services to its customers. The contract pricing is at stated billing rates per hour. These contracts are generally short-term in nature and not longer than one year in duration. For services provided under the contract that result in the transfer of control over time, the underlying deliverable in the contract is owned and controlled by the customer and does not create an asset with an alternative use to the Company. The Company recognizes revenue on rate per hour contracts based on the amount billable to the customer, as the Company has the right to invoice the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date. Revenues from Consulting Services The Company provides public listing related consulting services to customers pursuant to the specific requirements prescribed in the contracts, which primarily include communicating with intermediary parties, preparing required documents related to the initial public offering and supporting the listing process. The consulting service contracts are generally less than one year in length and normally include both cash and noncash consideration. Cash consideration is paid in installment payments and is recognized in revenue over the period of the contract by reference to progress toward complete satisfaction of that performance obligation. Noncash consideration is in the form of warrants of the customers and is measured at fair value at contract inception. Noncash consideration that is variable for reasons other than only the form of the consideration is included in the transaction price, but is subject to the constraint on variable consideration. The Company assesses the estimated amount of the variable noncash consideration at contract inception and subsequently, to determine when and to what extent it is probable that a significant reversal in the amount of cumulative revenues recognized will not occur once the uncertainty associated with the variable consideration is subsequently resolved. Only when the significant revenues reversal is concluded probable of not occurring can variable consideration be included in revenues. Based on evaluation of likelihood and magnitude of a reversal in applying the constraint, the variable noncash consideration is recognized in revenues until the underlying uncertainties have been resolved. The timing of revenue recognition may differ from the timing of invoicing to the customers. The Company has determined that its contracts do not include a significant financing component. The Company records a contract asset, which is included in accounts receivable on the consolidated balance sheets, when revenue is recognized prior to invoicing. The Company factors certain accounts receivable upon or after the performance obligation is being met. The Company records deferred revenue on the consolidated balance sheets when revenues are recognized subsequent to cash collection for an invoice. Deferred revenue is reported net of related uncollected deferred revenue in the consolidated balance sheets. The amount of revenues recognized during the three months ended March 31, 2023 and 2022 that were included in the opening deferred revenues balance was approximately $ 0.9 0.8 Disaggregation of Revenues The Company disaggregates its revenues from contracts by service types, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenues and cash flows are affected by economic factors. The Company’s disaggregation of revenues for the three months ended March 31, 2023 and 2022 is as following: SCHEDULE OF DISAGGREGATION OF REVENUES 2023 2022 For the Three Months Ended March 31, 2023 2022 Revenues from On-Premise Software $ 356,921 $ 801,601 Revenues from Maintenance and Support Services 701,474 845,339 Revenues from Software as a Service (“SaaS”) 171,044 126,654 Revenues from Software Development and Other Miscellaneous Services 680,341 502,407 Revenues from Customized Software Development and Services 1,631,619 - Revenues from Consulting Services 5,192,751 - Total Revenues $ 8,734,150 $ 2,276,001 The Company’s disaggregation of revenues by product/service is as following: 2023 2022 For the Three Months Ended March 31, 2023 2022 Revenues from Customer Experience Management Platform $ 1,566,437 $ 1,755,053 Revenues from Process Mining 102,201 266,488 Revenues from Robotic Process Automation 86,186 98,386 Revenues from Task Mining 107,088 86,877 Revenues from Customized Software Development and Services 1,631,619 - Revenues from Consulting Services 5,192,751 - Revenues from Others 47,868 69,197 Total Revenues $ 8,734,150 $ 2,276,001 As of March 31, 2023 and 2022, and for the periods then ended, substantially all of the long-lived assets (excluding intangible asset) and the majority of revenues generated were attributed to the Company’s operation in Japan. Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of accounts and other receivables. The Company usually does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. For the three months ended March 31, 2023, customer B and C represent 28.9% 18.8% 13.3 For the three months ended March 31, 2023, vendor A, B and D represent 38.5% 29.6% 18.4% 36.1% 29.4% 10.8% Stock-based Compensation The Company accounts for stock-based compensation awards in accordance with ASC Topic 718, “Compensation – Stock Compensation”. The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the unaudited consolidated statements of operations based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite service period or vesting period. The Company records forfeitures as they occur. Business Combinations The Company accounts its business combinations using the acquisition method of accounting in accordance with ASC Topic 805. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible asset acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred. Consideration transferred in a business combination is measured at the fair value as of the date of acquisition. Where the consideration in an acquisition includes contingent consideration, and the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and is recorded as a liability. It is subsequently carried at fair value with changes in fair value reflected in earnings. In a business combination achieved in stages, the Company remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the unaudited consolidated statements of operations and comprehensive income (loss). Fair value is determined based upon the guidance of ASC Topic 820, “Fair Value Measurements and Disclosures,” and generally are determined using Level 2 inputs and Level 3 inputs. The determination of fair value involves the use of significant judgments and estimates. The Company utilizes the assistance of a third-party valuation appraiser to determine the fair value as of the date of acquisition. Fair Value Measurements The Company performs fair value measurements in accordance with ASC Topic 820. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC Topic 820 establishes three levels of inputs that may be used to measure fair value: ● Level 1: quoted prices in active markets for identical assets or liabilities; ● Level 2: inputs other than Level 1 that are observable, either directly or indirectly; or ● Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. As of March 31, 2023 and December 31, 2022, the carrying values of current assets, except for short-term investment in warrants, and current liabilities approximated their fair values reported in the consolidated balance sheets due to the short-term maturities of these instruments. The Company received warrants from its customers as noncash consideration from consulting services. The warrants are not registered for public sale and are measured at fair value at contract inception. The Company’s investments in warrants are measured on a recurring basis and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of investments in warrants was determined using a Black-Scholes model of value based upon the stock price, exercise price, expected volatility, time to maturity, and a risk-free interest rate for the term of the warrants exercise. Such valuations are classified within Level 3 of the fair value hierarchy. The following table summarizes the Company’s investments in warrants activity for the three months ended March 31, 2023 and 2022: SCHEDULE OF INVESTMENTS IN WARRANTS For the Three Months Ended March 31, 2023 2022 Fair value of investments in warrants at beginning of the period $ - $ - Warrants received as noncash consideration 4,009,335 - Changes in fair value of investments in warrants 193,365 - Investments in warrants converted to securities - - Fair value of investments in warrants at end of the period $ 4,202,700 $ - Recent Accounting Pronouncements New Accounting Pronouncements Recently Adopted In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 was further amended in November 2020 by ASU No. 2020-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). As a result, ASC Topic 326, “Financial Instruments – Credit Losses” is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2020. For all other entities, it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As the Company is an “emerging growth company” and elects to apply for the new and revised accounting standards at the effective date for a private company, the Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption did not have a material impact on the Company’s unaudited consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASC Topic 606, “Revenue from Contracts with Customers”. This ASU is expected to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2021-08 on January 1, 2023 and the adoption did not have a material impact on the Company’s unaudited consolidated financial statements. New Accounting Pronouncements Not Yet Effective The Company has reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material impact on the Company’s unaudited consolidated financial statements.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	3 Months Ended
	Mar. 31, 2023
Credit Loss [Abstract]
ACCOUNTS RECEIVABLE	NOTE 3 — ACCOUNTS RECEIVABLE Accounts receivable consists of the following: SCHEDULE OF ACCOUNTS RECEIVABLE NET March 31, December 31, 2023 2022 Accounts receivable – non-factored $ 2,206,546 $ 551,064 Accounts receivable – factored with recourse 173,582 - Accounts receivable, gross 2,380,128 551,064 Less: allowance for credit losses - - Accounts receivable $ 2,380,128 $ 551,064

PREPAID EXPENSES

PREPAID EXPENSES	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES	NOTE 4 — PREPAID EXPENSES Prepaid expenses consist of the following: SCHEDULE OF PREPAID EXPENSES March 31, December 31, 2023 2022 Prepayments to software vendors $ 138,988 $ 162,046 Prepaid marketing and consulting fees 93,532 99,770 Prepaid subscription fees 110,523 113,685 Prepaid insurance premium 462,190 66,023 Others 114,683 96,706 Total $ 919,916 $ 538,230

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 — RELATED PARTY TRANSACTIONS As of March 31, 2023 and December 31, 2022, the Company has a due to related party balance of $ 2,923 402 2,544 25,480 25,480 903 As of March 31, 2023 and December 31, 2022, the Company has a loan receivable balance of $ 277,491 294,919 1.475 11,955 9,102 During the period from January 1, 2022 through January 13, 2022, the Company completed a private placement, in which it issued 30,000 2.50 75,000

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 6 — PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT NET March 31, December 31, 2023 2022 Leasehold improvements $ 293,024 $ 298,637 Machinery and equipment 401,307 316,827 Vehicle 104,488 106,490 Software 159,984 163,049 Subtotal 958,803 885,003 Less: accumulated depreciation (744,237 ) (681,376 ) Property and equipment, net $ 214,566 $ 203,627 Depreciation expenses were $ 17,062 24,889

INTANGIBLE ASSET, NET

INTANGIBLE ASSET, NET	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSET, NET	NOTE 7 — INTANGIBLE ASSET, NET Intangible asset, net is as follows: SCHEDULE OF INTANGIBLE ASSETS March 31, December 31, 2023 2022 Customer relationship $ 5,100,000 $ - Less: accumulated amortization (106,250 ) - Intangible asset, net $ 4,993,750 $ - As of March 31, 2023, the future estimated amortization cost for intangible asset is as follows: SCHEDULE OF AMORTIZATION INTANGIBLE ASSET Year Ended December 31, Estimated Amortization Remaining of 2023 $ 478,125 2024 637,500 2025 637,500 2026 637,500 2027 637,500 Thereafter 1,965,625 Total $ 4,993,750

LEASES

LEASES	3 Months Ended
	Mar. 31, 2023
Leases
LEASES	NOTE 8 — LEASES The Company has entered into three leases for its office space, which were classified as operating leases. It has also entered into two leases for office equipment, one of which was terminated in June 2022, and a lease for a vehicle, and these leases were classified as finance leases. Right-of-use assets of these finance leases in the amount of $ 12,497 and $ 18,335 are included in property and equipment, net as of March 31, 2023 and December 31, 2022, respectively. The components of lease costs are as follows: SCHEDULE OF LEASE COSTS 2023 2022 For the Three Months Ended March 31, 2023 2022 Finance lease costs Amortization of right-of-use assets $ 5,526 $ 12,526 Interest on lease liabilities 53 174 Total finance lease costs 5,579 12,700 Operating lease costs 84,991 87,051 Total lease costs $ 90,570 $ 99,751 The following table presents supplemental information related to the Company’s leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO THE COMPANY’S LEASES 2023 2022 For the Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 53 $ 174 Operating cash flows from operating leases 81,977 89,290 Financing cash flows from finance leases 5,658 14,916 Weighted average remaining lease term (years) Finance leases 0.6 1.4 Operating leases 8.9 9.9 Weighted average discount rate (per annum) Finance leases 1.33 % 1.32 % Operating leases 1.32 % 1.32 % As of March 31, 2023, the future maturity of lease liabilities is as follows: SCHEDULE OF FINANCE LEASE AND OPERATING LEASE FUTURE MATURITY OF LEASE LIABILITIES Year Ended December 31, Finance Lease Operating Lease Remaining of 2023 $ 13,433 $ 243,039 2024 281 310,891 2025 - 310,891 2026 - 310,891 2027 - 310,891 Thereafter - 1,280,060 Total lease payments 13,714 2,766,663 Less: imputed interest (51 ) (164,422 ) Total lease liabilities 13,663 2,602,241 Less: current portion 13,663 288,081 Non-current lease liabilities $ - $ 2,314,160 Pursuant to the operating lease agreements, the Company made security deposits to the lessors. The security deposits amounted to $ 367,981 244,395

FACTORING LIABILITY

FACTORING LIABILITY	3 Months Ended
	Mar. 31, 2023
Factoring Liability
FACTORING LIABILITY	NOTE 9 — FACTORING LIABILITY Sigmaways, the newly acquired subsidiary of the Company, entered into a Factoring and Security Agreement ( the “Factoring Agreement”) 850,000 Selected accounts receivable is submitted to the Factor, and the Company receives 90 The Factoring Agreement specifies that eligible accounts receivable is factored with recourse. Under the terms of the recourse provision, the Company is required to reimburse the Factor, upon demand, for Purchased Receivable that is not paid on time by the customers. The performance of all obligations and payments to the Factor is personally guaranteed by Prakash Sadasivam, CEO of Sigmaways and Chief Strategy Officer (“CSO”) of the Company, and secured by all Sigmaways’ now owned and hereafter assets and any sums maintained by the Factor that are identified as payable to the Company. The Factoring Agreement has an initial term of twelve months and automatically renews for successive twelve-month renewal periods unless terminated pursuant to the terms of the Factoring Agreement. The Company may terminate the Factoring Agreement with sixty days’ written notice to the Factor and is subject to certain early termination fee. The Factoring Agreement contained covenants that are customary for accounts receivable-based factoring agreements and also contained provisions relating to events of default that are customary for agreements of this type. As of March 31, 2023, there was $ 173,582 Factoring Agreement 22,695 Factoring Agreement

INSURANCE PREMIUM FINANCING

INSURANCE PREMIUM FINANCING	3 Months Ended
	Mar. 31, 2023
Insurance [Abstract]
INSURANCE PREMIUM FINANCING	NOTE 10 — INSURANCE PREMIUM FINANCING In January 2023, the Company entered into an insurance premium financing agreement with BankDirect Capital Finance for $ 389,035 at an annual interest rate of 16.04 % for ten months from February 1, 2023, payable in ten monthly installments of principal and interest. In February 2022, the Company entered into an insurance premium financing agreement with BankDirect Capital Finance for $ 388,538 at an annual interest rate of 12.80 % for nine months from February 1, 2022, payable in nine monthly installments of principal and interest. As of March 31, 2023 and December 31, 2022, the balance of the insurance premium financing was $ 352,518 nil 5,304 4,255

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
INCOME TAXES	NOTE 11 — LONG-TERM DEBTS The Company’s long-term debts included bond payable and loans borrowed from banks and other financial institutions, which consist of the following: SCHEDULE OF LONG-TERM DEBTS Name of Financial Institutions Original Amount Borrowed Loan Duration Annual Interest Rate Balance as of March 31, 2023 Balance as of December 31, 2022 Bond payable Corporate bond issued through Resona Bank, Limited JPY 100,000,000 (a)(c) 1/10/2019—1/10/2024 0.430 % $ 149,768 $ 228,956 Loans with banks and other financial institutions Resona Bank, Limited JPY 50,000,000 (a)(b) 12/29/2017—12/29/2024 0.675 % 93,717 113,677 Resona Bank, Limited JPY 10,000,000 (a)(b) 9/30/2020—9/30/2027 0.000 % 48,150 52,705 Resona Bank, Limited JPY 40,000,000 (a)(b) 9/30/2020—9/30/2027 0.000 % 192,601 210,822 Resona Bank, Limited JPY 20,000,000 (a)(b) 11/13/2020—10/31/2027 1.600 % 98,083 107,227 Sumitomo Mitsui Banking Corporation JPY 100,000,000 (a) 12/28/2018—12/28/2023 1.475 % 112,199 165,237 Sumitomo Mitsui Banking Corporation JPY 10,000,000 (a)(b) 12/30/2019—12/30/2026 1.975 % 40,130 44,532 The Shoko Chukin Bank, Ltd. JPY 30,000,000 9/28/2018—8/31/2023 1.200 % 18,421 34,343 The Shoko Chukin Bank, Ltd. JPY 50,000,000 7/27/2020—6/30/2027 1.290 % 230,643 253,377 Japan Finance Corporation JPY 80,000,000 11/17/2020—11/30/2027 0.210 % 404,973 442,036 Higashi-Nippon Bank JPY 30,000,000 (a) 3/31/2022—3/31/2025 1.400 % 149,169 177,669 First Home Bank $ 350,000 (d) 4/18/2019—4/18/2029 Wall Street Journal U.S. Prime Rate + 2.750 % 251,391 - U.S. Small Business Administration $ 350,000 (d) 5/30/2020—5/30/2050 3.750 % 350,000 - Aggregate outstanding principal balances 2,139,245 1,830,581 Less: unamortized debt issuance costs (8,047 ) (8,969 ) Less: current portion (640,534 ) (697,877 ) Non-current portion $ 1,490,664 $ 1,123,735 (a) These debts are guaranteed by Sumitaka Yamamoto, the Company’s CEO and major shareholder. (b) These debts are guaranteed by Tokyo Credit Guarantee Association, and the Company has paid guarantee expenses for these debts. (c) The bond is guaranteed by Resona Bank, Limited. (d) These debts are guaranteed by Prakash Sadasivam, CEO of Sigmaways and CSO of the Company, and secured by all assets of Sigmaways. Interest expense for long-term debts was $ 11,841 7,016 As of March 31, 2023, future minimum loan payments are as follows: SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS Year Ended December 31, Loan Payment Remaining of 2023 $ 464,705 2024 467,708 2025 291,088 2026 276,692 2027 241,046 Thereafter 398,006 Total $ 2,139,245 NOTE 12 — INCOME TAXES United States HeartCore USA, Sigmaways and HeartCore Financial, incorporated in the United States, are subject to federal income tax at 21 Netherlands Sigmaways B.V. is a company incorporated in Amsterdam in Netherlands in November 2019. The first EUR200,000 of taxable income will be taxed at 19% and the remaining taxable income will be taxed at statutory tax rate of 25.80%. Canada Sigmaways Technologies is a company incorporated in British Columbia in Canada in August 2020. It is subject to income tax on income arising in, or derived from, the tax jurisdiction in British Columbia it operates. The basic federal rate of Part I tax is 38 28 15% . The provincial and territorial lower and higher tax rates in British Columbia are 2% and 12% , respectively. Japan The Company conducts its major businesses in Japan and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority. Income taxes in Japan applicable to the Company are imposed by the national, prefectural, and municipal governments, and in the aggregate resulted in an effective statutory tax rate of approximately 34.59 30.62 For the three months ended March 31, 2023 and 2022, the Company’s income tax expense (benefit) are as follows: SCHEDULE OF INCOME TAX EXPENSES 2023 2022 For the Three Months Ended March 31, 2023 2022 Current $ 678,732 $ (774 ) Deferred (17,284 ) (42 ) Income tax expense (benefit) $ 661,448 $ (816 ) The effective tax rate was 26.78 0.05

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 13 – STOCK-BASED COMPENSATION Options In May 2016, the Company granted 507 1,494 10 0.09 324 484,056 324 The consideration received for the remaining early exercised options was recorded by the Company as a share repurchase liability included in other current liabilities in the consolidated balance sheet with JPY 1,830 16 183 11,005 three months ended March 31, 2022 16 273,489 183 The following table summarizes the Company’s stock option activity for the stock options issued in 2016 for the three months ended March 31, 2022: SCHEDULE OF UNVESTED STOCK OPTION Number of Stock Options Issued and unvested as of January 1, 2022 183 Vested and exercised 183 Issued and unvested as of March 31, 2022 - On August 6, 2021, the Board of directors and stockholders of the Company approved a 2021 Equity Incentive Plan (the “2021 Plan”), under which 2,400,000 1,534,500 2.50 25 December 25, 2031 On August 2, 2022, the Company awarded options to purchase 2,000 2.94 25 August 2, 2032 On August 9, 2022, the Company awarded options to purchase 14,500 2.48 per share to three prior employees of the Company. The options are fully vested and exercisable on the grant date, with the expiration date on August 9, 2026 . On February 3, 2023, the Company awarded options to purchase 100,000 shares of 1.17 . The options vest 50 The following table summarizes the stock options activity and related information for the three months ended March 31, 2023 and 2022: SCHEDULE OF STOCK OPTION ACTIVITY Number of Options Weighted Average Exercise Price Weighted Average Remaining Term (Years) Intrinsic Value As of January 1, 2022 1,534,500 $ 2.50 9.99 $ - Granted - - - - Exercised -        - - - Forfeited - - - - As of March 31, 2022 1,534,500 $ 2.50 9.74 $ 583,110 As of January 1, 2023 1,466,500 $ 2.50 8.94 $ - Granted 100,000 1.17 9.85 - Exercised -        - - - Forfeited (2,000 ) 2.50 - - As of March 31, 2023 1,564,500 $ 2.42 8.76 $ - Vested and exercisable as of March 31, 2023 426,500 $ 2.34 8.69 $ - The Company calculated the fair value of options granted in the three months ended March 31, 2023 using the Black-Scholes model. Significant assumptions used in the valuation include expected volatility, risk-free interest rate, dividend yield and expected exercise term. For the three months ended March 31, 2023 and 2022, the Company recognized stock-based compensation related to options of $ 184,335 292,812 881,378 Restricted Stock Units (“RSUs”) On February 9, 2022, the Company entered into executive employment agreements with five executives and granted 85,820 25 424,809 On February 25, 2022, the Company entered into a service agreement with a marketing company to purchase 6-month marketing services and granted 83,333 224,999 On March 22, 2023, the Company entered into agreements with employees and service providers of Sigmaways and granted 671,350 691,491 The following table summarizes the RSUs activity for the three months ended March 31, 2023 and 2022: SCHEDULE OF RESTRICTED STOCK UNITS Number of RSUs Weighted Average Grant Date Fair Value per Share Unvested as of January 1, 2022 - $ - Granted 169,153 3.84 Vested - - Forfeited - - Unvested as of March 31, 2022 169,153 $ 3.84 Unvested as of January 1, 2023 85,820 $ 4.95 Granted 671,350 1.03 Vested (692,805 ) 1.15 Forfeited - - Unvested as of March 31, 2023 64,365 $ 4.95 For the three months ended March 31, 2023 and 2022, the Company recognized stock-based compensation related to RSUs of $ 730,893 129,352 187,794

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
SHAREHOLDERS’ EQUITY	NOTE 14 – SHAREHOLDERS’ EQUITY The Company was authorized to issue 200,000,000 0.0001 20,000,000 0.0001 During the period from January 1, 2022 through January 13, 2022, the Company issued 96,000 2.50 220,572 30,000 On February 14, 2022, the Company completed its initial public offering on the NASDAQ Capital Market under the symbol of “HTCR”. The Company offered 3,000,000 5.00 13,724,167 300,460 178,847 On February 14, 2022, 273,489 16 On February 1, 2023, 2,500,000 51 3,150,000 As of March 31, 2023 and December 31, 2022, there were 20,842,690 17,649,886 No

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	3 Months Ended
	Mar. 31, 2023
Net income (loss) per common share attributable to HeartCore Enterprises, Inc.
NET INCOME (LOSS) PER SHARE	NOTE 15 – NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is calculated on the basis of weighted average outstanding common shares. Diluted net income (loss) per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, RSUs and other dilutive securities. Common shares equivalents are determined by applying the treasury stock method to the assumed conversion of share repurchase liability to common shares related to the early exercised stock options and unvested RSUs, and are not included in the calculation of diluted income (loss) per share if their effect would be anti-dilutive. The computation of basic and diluted net income (loss) per share for the three months ended March 31, 2023 and 2022 is as follows: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE 2023 2022 For the Three Months Ended March 31, 2023 2022 Net income (loss) per share - basic and diluted: Numerator: Allocation of net income (loss) attributable to HeartCore Enterprises, Inc. common shareholders used in calculating net income (loss) per common share $ 1,882,289 $ (1,578,451 ) Net income (loss) attributable to common shareholders 1,882,289 (1,578,451 ) Denominator: Weighted average number of common shares outstanding used in calculating net income (loss) per share 19,066,160 17,265,332 Denominator used for net income (loss) per share 19,066,160 17,265,332 Net income (loss) per share - basic and diluted $ 0.10 $ (0.09 ) For the three months ended March 31, 2023 and 2022, the weighted average common shares outstanding are the same for basic and diluted net income (loss) per share calculations, as the inclusion of common share equivalents would have an anti-dilutive effect.

BUSINESS COMBINATION

BUSINESS COMBINATION	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
BUSINESS COMBINATION	NOTE 16 – BUSINESS COMBINATION On September 6, 2022, HeartCore USA entered into a share exchange and purchase agreement (“Sigmaways Agreement”) to acquire 51 % of the outstanding shares of Sigmaways, Inc. (“Sigmaways”), a company incorporated under the laws of the State of California, and its subsidiaries. The Sigmaways Agreement was further amended on December 23, 2022 and February 1, 2023, respectively, and the transaction was 4,150,000 , consisted of $ 1,000,000 in cash and 2,500,000 shares of common shares of the Company with fair value of $ 3,150,000 at the closing date. The total purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities and non-controlling interest based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Amounts recorded in the business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. The purchase price was allocated on the acquisition date as follows: SCHEDULE OF BUSINESS PURCHASE PRICE ALLOCATION Amount Current assets $ 2,066,683 Acquired intangible asset 5,100,000 Non-current assets 47,979 Current liabilities (1,146,900 ) Deferred tax liabilities (1,428,000 ) Non-current liabilities (576,203 ) Goodwill 3,276,441 Non-controlling interest (3,190,000 ) Total purchase consideration $ 4,150,000 The results of operations, financial position and cash flows of Sigmaways and its subsidiaries have been included in the Company’s unaudited consolidated financial statements since the date of acquisition. Sigmaways and its subsidiaries contributed revenues and net loss of $ 1,631,619 151,534 Pro forma results of operations for the business combination have not been presented because they are not material to the unaudited consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2023 and 2022. The Company’s policy is to perform its annual impairment testing on goodwill for its reporting unit on December 31 of each fiscal year or more frequently if events or changes in circumstances indicate that an impairment may exist. The Company did not recognize any impairment loss on goodwill during the three months ended March 31, 2023.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17 - SUBSEQUENT EVENTS On May 2, 2023, the Company entered into a promissory note with a third party in the amount of $ 300,000 8 12

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. These unaudited interim consolidated financial statements do not include all of the information and disclosure required by the U.S. GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments consisting of normal recurring nature considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022.
Use of Estimates	Use of Estimates In preparing the unaudited consolidated financial statements in conformity U.S. GAAP, the management is required to make certain 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 reporting period. These estimates are based on information available as of the date of the unaudited consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the allowance for credit losses, useful lives of property and equipment, the impairment of long-lived assets and goodwill, valuation of stock-based compensation, valuation allowance of deferred tax assets, implicit interest rate of operating and financing leases, valuation of asset retirement obligations, valuation of investments in warrants, revenue recognition and purchase price allocation with respect to business combination. Actual results could differ from those estimates.
COVID-19	COVID-19 While the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment actions, it has already had an adverse effect on the global economy and the lasting effects of the pandemic continue to be unknown. The Company may experience customer losses, including due to bankruptcy or customers ceasing operations, which may result in delays in collections or an inability to collect accounts receivable from these customers. The extent to which COVID-19 may continue to impact the Company’s financial condition, results of operations, or liquidity continues to remain uncertain, and as of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, which will be recognized in the unaudited consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s unaudited consolidated financial statements.
Asset Retirement Obligations	Asset Retirement Obligations Pursuant to the lease agreements for the office space, the Company is responsible to restore these spaces back to its original statute at the time of leaving. The Company recognizes an obligation related to these restorations as asset retirement obligation included in other non-current liabilities in the consolidated balance sheets, in accordance with the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) Topic 410, “Asset Retirement Obligation Accounting”. The Company capitalizes the associated asset retirement cost by increasing the carrying amount of the related property and equipment. The following table presents changes in asset retirement obligations: SCHEDULE OF CHANGES IN ASSET RETIREMENT OBLIGATIONS March 31, December 31, 2023 2022 Beginning balance $ 138,018 $ 155,666 Accretion expense 112 459 Foreign currency translation adjustment (2,594 ) (18,107 ) Ending balance $ 135,536 $ 138,018
Software Development Costs	Software Development Costs Software development costs are expensed as incurred until the point the Company establishes technological feasibility. Technological feasibility is established upon completion of a detailed program design or the completion of a working model. Costs incurred by the Company between establishment of technological feasibility and the point at which the product is ready for general release are capitalized and amortized over the economic life of the related products. The Company’s software development costs incurred subsequent to achieving technological feasibility have not been significant and all software development costs have been expensed as incurred. In the three months ended March 31, 2023 and 2022, software development costs expensed as incurred amounted to $ 79,624 108,259
Investments in Warrants	Investments in Warrants Investments in warrants represent stock warrants of its consulting service customers and are not registered for public sale. The warrants are measured at fair value and any changes in fair value are recognized in other income (expenses). Investment in warrants is classified as short-term if the maturity is within one year, and as long-term if the maturity is over one year.
Intangible Asset, Net	Intangible Asset, Net Intangible asset represents the customer relationship acquired from business acquisition of Sigmaways and its subsidiaries. The acquired intangible asset is recognized and measured at fair value at the time of acquisition and is amortized on a straight-line basis over the estimated economic useful life of the respective assets. The estimated useful life of the customer relationship is 8 years.
Impairment of Long-Lived Assets Other Than Goodwill	Impairment of Long-Lived Assets Other Than Goodwill Long-lived assets with finite lives, primarily property and equipment, operating lease right-of-use assets and intangible asset, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with ASC Topic 350, “Intangibles – Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis.
Foreign Currency Translation	Foreign Currency Translation The functional currency of HeartCore Japan and HeartCore Capital Advisors is the Japanese Yen (“JPY”). The functional currency of HeartCore USA, HeartCore Financial and Sigmaways is the United States Dollar (“US$”). The functional currency of Sigmaways B.V. is the Euro (“EUR”). The functional currency of Sigmaways Technologies is the Canada Dollar (“CAD”). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the unaudited consolidated statements of operations. The reporting currency of the Company is the US$, and the accompanying unaudited consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statements”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements are recorded as a separate component of accumulated other comprehensive income (loss) within the statements of changes in shareholders’ equity.
Revenue Recognition	Revenue Recognition The Company recognizes revenues under ASC Topic 606, “Revenue from Contracts with customers”. To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. Revenue amount represents the invoiced value, net of value-added taxes and applicable local government levies. The Company currently generates its revenues from the following main sources: Revenues from On-Premise Software Licenses for on-premise software provide the customer with a right to use the software as it exists when made available to the customer. The Company provides on-premise software in the form of both perpetual licenses and term-based licenses which grant the customers with the right for a specified term. Revenues from on-premise licenses are recognized upfront at the point in time when the software is made available to the customer. Licenses for on-premise software are typically sold to the customer with maintenance and support services in a bundle. Revenues under the bundled arrangements are allocated based on the relative standalone selling prices (“SSP”) of on-premise software and maintenance and support service. The SSP for maintenance and support services is estimated based upon observable transactions when those services are sold on a standalone basis. The SSP of on-premise software is typically estimated using the residual approach as the Company is unable to establish the SSP for on-premise licenses based on observable prices given the same products are sold for a broad range of amounts (that is, the selling price is highly variable) and a representative SSP is not discernible from past transactions or other observable evidence. Revenues from Maintenance and Support Services Maintenance and support services provided with software licenses consist of trouble shooting, technical support and the right to receive unspecified software updates when and if available during the subscription. Revenues from maintenance and support services are recognized over time as such services are performed. Revenues for consumption-based services are generally recognized as the services are performed and accepted by the customers. Revenues from Software as a Service (“SaaS”) The Company’s software is available for use as hosted application arrangements under subscription fee agreements without licensing the rights of the software to the customers. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the Company’s solution is made available to the customer. The subscription contracts are generally one year or less in length. Revenues from Software Development and Other Miscellaneous Services The Company provides customers with software development and support services pursuant to their specific requirements, which primarily compose of consulting, integration, training, custom application, and workflow development. The Company also provides other miscellaneous services, such as 3D Space photography. The Company generally recognizes revenue at a point in time when control is transferred to the customers and the Company is entitled to the payment, which is when the promised services are delivered and accepted by the customers. Revenues from Customized Software Development and Services The Company’s customized software development and services revenues primarily include revenues from providing software development solutions and other support services to its customers. The contract pricing is at stated billing rates per hour. These contracts are generally short-term in nature and not longer than one year in duration. For services provided under the contract that result in the transfer of control over time, the underlying deliverable in the contract is owned and controlled by the customer and does not create an asset with an alternative use to the Company. The Company recognizes revenue on rate per hour contracts based on the amount billable to the customer, as the Company has the right to invoice the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date. Revenues from Consulting Services The Company provides public listing related consulting services to customers pursuant to the specific requirements prescribed in the contracts, which primarily include communicating with intermediary parties, preparing required documents related to the initial public offering and supporting the listing process. The consulting service contracts are generally less than one year in length and normally include both cash and noncash consideration. Cash consideration is paid in installment payments and is recognized in revenue over the period of the contract by reference to progress toward complete satisfaction of that performance obligation. Noncash consideration is in the form of warrants of the customers and is measured at fair value at contract inception. Noncash consideration that is variable for reasons other than only the form of the consideration is included in the transaction price, but is subject to the constraint on variable consideration. The Company assesses the estimated amount of the variable noncash consideration at contract inception and subsequently, to determine when and to what extent it is probable that a significant reversal in the amount of cumulative revenues recognized will not occur once the uncertainty associated with the variable consideration is subsequently resolved. Only when the significant revenues reversal is concluded probable of not occurring can variable consideration be included in revenues. Based on evaluation of likelihood and magnitude of a reversal in applying the constraint, the variable noncash consideration is recognized in revenues until the underlying uncertainties have been resolved. The timing of revenue recognition may differ from the timing of invoicing to the customers. The Company has determined that its contracts do not include a significant financing component. The Company records a contract asset, which is included in accounts receivable on the consolidated balance sheets, when revenue is recognized prior to invoicing. The Company factors certain accounts receivable upon or after the performance obligation is being met. The Company records deferred revenue on the consolidated balance sheets when revenues are recognized subsequent to cash collection for an invoice. Deferred revenue is reported net of related uncollected deferred revenue in the consolidated balance sheets. The amount of revenues recognized during the three months ended March 31, 2023 and 2022 that were included in the opening deferred revenues balance was approximately $ 0.9 0.8 Disaggregation of Revenues The Company disaggregates its revenues from contracts by service types, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenues and cash flows are affected by economic factors. The Company’s disaggregation of revenues for the three months ended March 31, 2023 and 2022 is as following: SCHEDULE OF DISAGGREGATION OF REVENUES 2023 2022 For the Three Months Ended March 31, 2023 2022 Revenues from On-Premise Software $ 356,921 $ 801,601 Revenues from Maintenance and Support Services 701,474 845,339 Revenues from Software as a Service (“SaaS”) 171,044 126,654 Revenues from Software Development and Other Miscellaneous Services 680,341 502,407 Revenues from Customized Software Development and Services 1,631,619 - Revenues from Consulting Services 5,192,751 - Total Revenues $ 8,734,150 $ 2,276,001 The Company’s disaggregation of revenues by product/service is as following: 2023 2022 For the Three Months Ended March 31, 2023 2022 Revenues from Customer Experience Management Platform $ 1,566,437 $ 1,755,053 Revenues from Process Mining 102,201 266,488 Revenues from Robotic Process Automation 86,186 98,386 Revenues from Task Mining 107,088 86,877 Revenues from Customized Software Development and Services 1,631,619 - Revenues from Consulting Services 5,192,751 - Revenues from Others 47,868 69,197 Total Revenues $ 8,734,150 $ 2,276,001 As of March 31, 2023 and 2022, and for the periods then ended, substantially all of the long-lived assets (excluding intangible asset) and the majority of revenues generated were attributed to the Company’s operation in Japan.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of accounts and other receivables. The Company usually does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. For the three months ended March 31, 2023, customer B and C represent 28.9% 18.8% 13.3 For the three months ended March 31, 2023, vendor A, B and D represent 38.5% 29.6% 18.4% 36.1% 29.4% 10.8%
Stock-based Compensation	Stock-based Compensation The Company accounts for stock-based compensation awards in accordance with ASC Topic 718, “Compensation – Stock Compensation”. The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the unaudited consolidated statements of operations based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite service period or vesting period. The Company records forfeitures as they occur.
Business Combinations	Business Combinations The Company accounts its business combinations using the acquisition method of accounting in accordance with ASC Topic 805. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible asset acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred. Consideration transferred in a business combination is measured at the fair value as of the date of acquisition. Where the consideration in an acquisition includes contingent consideration, and the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and is recorded as a liability. It is subsequently carried at fair value with changes in fair value reflected in earnings. In a business combination achieved in stages, the Company remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the unaudited consolidated statements of operations and comprehensive income (loss). Fair value is determined based upon the guidance of ASC Topic 820, “Fair Value Measurements and Disclosures,” and generally are determined using Level 2 inputs and Level 3 inputs. The determination of fair value involves the use of significant judgments and estimates. The Company utilizes the assistance of a third-party valuation appraiser to determine the fair value as of the date of acquisition.
Fair Value Measurements	Fair Value Measurements The Company performs fair value measurements in accordance with ASC Topic 820. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC Topic 820 establishes three levels of inputs that may be used to measure fair value: ● Level 1: quoted prices in active markets for identical assets or liabilities; ● Level 2: inputs other than Level 1 that are observable, either directly or indirectly; or ● Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. As of March 31, 2023 and December 31, 2022, the carrying values of current assets, except for short-term investment in warrants, and current liabilities approximated their fair values reported in the consolidated balance sheets due to the short-term maturities of these instruments. The Company received warrants from its customers as noncash consideration from consulting services. The warrants are not registered for public sale and are measured at fair value at contract inception. The Company’s investments in warrants are measured on a recurring basis and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of investments in warrants was determined using a Black-Scholes model of value based upon the stock price, exercise price, expected volatility, time to maturity, and a risk-free interest rate for the term of the warrants exercise. Such valuations are classified within Level 3 of the fair value hierarchy. The following table summarizes the Company’s investments in warrants activity for the three months ended March 31, 2023 and 2022: SCHEDULE OF INVESTMENTS IN WARRANTS For the Three Months Ended March 31, 2023 2022 Fair value of investments in warrants at beginning of the period $ - $ - Warrants received as noncash consideration 4,009,335 - Changes in fair value of investments in warrants 193,365 - Investments in warrants converted to securities - - Fair value of investments in warrants at end of the period $ 4,202,700 $ -
Recent Accounting Pronouncements	Recent Accounting Pronouncements New Accounting Pronouncements Recently Adopted In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 was further amended in November 2020 by ASU No. 2020-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). As a result, ASC Topic 326, “Financial Instruments – Credit Losses” is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2020. For all other entities, it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As the Company is an “emerging growth company” and elects to apply for the new and revised accounting standards at the effective date for a private company, the Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption did not have a material impact on the Company’s unaudited consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASC Topic 606, “Revenue from Contracts with Customers”. This ASU is expected to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2021-08 on January 1, 2023 and the adoption did not have a material impact on the Company’s unaudited consolidated financial statements. New Accounting Pronouncements Not Yet Effective The Company has reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material impact on the Company’s unaudited consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SCHEDULE OF CHANGES IN ASSET RETIREMENT OBLIGATIONS	SCHEDULE OF CHANGES IN ASSET RETIREMENT OBLIGATIONS March 31, December 31, 2023 2022 Beginning balance $ 138,018 $ 155,666 Accretion expense 112 459 Foreign currency translation adjustment (2,594 ) (18,107 ) Ending balance $ 135,536 $ 138,018
SCHEDULE OF DISAGGREGATION OF REVENUES	SCHEDULE OF DISAGGREGATION OF REVENUES 2023 2022 For the Three Months Ended March 31, 2023 2022 Revenues from On-Premise Software $ 356,921 $ 801,601 Revenues from Maintenance and Support Services 701,474 845,339 Revenues from Software as a Service (“SaaS”) 171,044 126,654 Revenues from Software Development and Other Miscellaneous Services 680,341 502,407 Revenues from Customized Software Development and Services 1,631,619 - Revenues from Consulting Services 5,192,751 - Total Revenues $ 8,734,150 $ 2,276,001 The Company’s disaggregation of revenues by product/service is as following: 2023 2022 For the Three Months Ended March 31, 2023 2022 Revenues from Customer Experience Management Platform $ 1,566,437 $ 1,755,053 Revenues from Process Mining 102,201 266,488 Revenues from Robotic Process Automation 86,186 98,386 Revenues from Task Mining 107,088 86,877 Revenues from Customized Software Development and Services 1,631,619 - Revenues from Consulting Services 5,192,751 - Revenues from Others 47,868 69,197 Total Revenues $ 8,734,150 $ 2,276,001
SCHEDULE OF INVESTMENTS IN WARRANTS	The following table summarizes the Company’s investments in warrants activity for the three months ended March 31, 2023 and 2022: SCHEDULE OF INVESTMENTS IN WARRANTS For the Three Months Ended March 31, 2023 2022 Fair value of investments in warrants at beginning of the period $ - $ - Warrants received as noncash consideration 4,009,335 - Changes in fair value of investments in warrants 193,365 - Investments in warrants converted to securities - - Fair value of investments in warrants at end of the period $ 4,202,700 $ -

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	3 Months Ended
	Mar. 31, 2023
Credit Loss [Abstract]
SCHEDULE OF ACCOUNTS RECEIVABLE NET	Accounts receivable consists of the following: SCHEDULE OF ACCOUNTS RECEIVABLE NET March 31, December 31, 2023 2022 Accounts receivable – non-factored $ 2,206,546 $ 551,064 Accounts receivable – factored with recourse 173,582 - Accounts receivable, gross 2,380,128 551,064 Less: allowance for credit losses - - Accounts receivable $ 2,380,128 $ 551,064

PREPAID EXPENSES (Tables)

PREPAID EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
SCHEDULE OF PREPAID EXPENSES	Prepaid expenses consist of the following: SCHEDULE OF PREPAID EXPENSES March 31, December 31, 2023 2022 Prepayments to software vendors $ 138,988 $ 162,046 Prepaid marketing and consulting fees 93,532 99,770 Prepaid subscription fees 110,523 113,685 Prepaid insurance premium 462,190 66,023 Others 114,683 96,706 Total $ 919,916 $ 538,230

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT NET	Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT NET March 31, December 31, 2023 2022 Leasehold improvements $ 293,024 $ 298,637 Machinery and equipment 401,307 316,827 Vehicle 104,488 106,490 Software 159,984 163,049 Subtotal 958,803 885,003 Less: accumulated depreciation (744,237 ) (681,376 ) Property and equipment, net $ 214,566 $ 203,627

INTANGIBLE ASSET, NET (Tables)

INTANGIBLE ASSET, NET (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	SCHEDULE OF INTANGIBLE ASSETS March 31, December 31, 2023 2022 Customer relationship $ 5,100,000 $ - Less: accumulated amortization (106,250 ) - Intangible asset, net $ 4,993,750 $ -
SCHEDULE OF AMORTIZATION INTANGIBLE ASSET	As of March 31, 2023, the future estimated amortization cost for intangible asset is as follows: SCHEDULE OF AMORTIZATION INTANGIBLE ASSET Year Ended December 31, Estimated Amortization Remaining of 2023 $ 478,125 2024 637,500 2025 637,500 2026 637,500 2027 637,500 Thereafter 1,965,625 Total $ 4,993,750

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2023
Leases
SCHEDULE OF LEASE COSTS	The components of lease costs are as follows: SCHEDULE OF LEASE COSTS 2023 2022 For the Three Months Ended March 31, 2023 2022 Finance lease costs Amortization of right-of-use assets $ 5,526 $ 12,526 Interest on lease liabilities 53 174 Total finance lease costs 5,579 12,700 Operating lease costs 84,991 87,051 Total lease costs $ 90,570 $ 99,751
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO THE COMPANY’S LEASES	The following table presents supplemental information related to the Company’s leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO THE COMPANY’S LEASES 2023 2022 For the Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 53 $ 174 Operating cash flows from operating leases 81,977 89,290 Financing cash flows from finance leases 5,658 14,916 Weighted average remaining lease term (years) Finance leases 0.6 1.4 Operating leases 8.9 9.9 Weighted average discount rate (per annum) Finance leases 1.33 % 1.32 % Operating leases 1.32 % 1.32 %
SCHEDULE OF FINANCE LEASE AND OPERATING LEASE FUTURE MATURITY OF LEASE LIABILITIES	As of March 31, 2023, the future maturity of lease liabilities is as follows: SCHEDULE OF FINANCE LEASE AND OPERATING LEASE FUTURE MATURITY OF LEASE LIABILITIES Year Ended December 31, Finance Lease Operating Lease Remaining of 2023 $ 13,433 $ 243,039 2024 281 310,891 2025 - 310,891 2026 - 310,891 2027 - 310,891 Thereafter - 1,280,060 Total lease payments 13,714 2,766,663 Less: imputed interest (51 ) (164,422 ) Total lease liabilities 13,663 2,602,241 Less: current portion 13,663 288,081 Non-current lease liabilities $ - $ 2,314,160

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
SCHEDULE OF LONG-TERM DEBTS	The Company’s long-term debts included bond payable and loans borrowed from banks and other financial institutions, which consist of the following: SCHEDULE OF LONG-TERM DEBTS Name of Financial Institutions Original Amount Borrowed Loan Duration Annual Interest Rate Balance as of March 31, 2023 Balance as of December 31, 2022 Bond payable Corporate bond issued through Resona Bank, Limited JPY 100,000,000 (a)(c) 1/10/2019—1/10/2024 0.430 % $ 149,768 $ 228,956 Loans with banks and other financial institutions Resona Bank, Limited JPY 50,000,000 (a)(b) 12/29/2017—12/29/2024 0.675 % 93,717 113,677 Resona Bank, Limited JPY 10,000,000 (a)(b) 9/30/2020—9/30/2027 0.000 % 48,150 52,705 Resona Bank, Limited JPY 40,000,000 (a)(b) 9/30/2020—9/30/2027 0.000 % 192,601 210,822 Resona Bank, Limited JPY 20,000,000 (a)(b) 11/13/2020—10/31/2027 1.600 % 98,083 107,227 Sumitomo Mitsui Banking Corporation JPY 100,000,000 (a) 12/28/2018—12/28/2023 1.475 % 112,199 165,237 Sumitomo Mitsui Banking Corporation JPY 10,000,000 (a)(b) 12/30/2019—12/30/2026 1.975 % 40,130 44,532 The Shoko Chukin Bank, Ltd. JPY 30,000,000 9/28/2018—8/31/2023 1.200 % 18,421 34,343 The Shoko Chukin Bank, Ltd. JPY 50,000,000 7/27/2020—6/30/2027 1.290 % 230,643 253,377 Japan Finance Corporation JPY 80,000,000 11/17/2020—11/30/2027 0.210 % 404,973 442,036 Higashi-Nippon Bank JPY 30,000,000 (a) 3/31/2022—3/31/2025 1.400 % 149,169 177,669 First Home Bank $ 350,000 (d) 4/18/2019—4/18/2029 Wall Street Journal U.S. Prime Rate + 2.750 % 251,391 - U.S. Small Business Administration $ 350,000 (d) 5/30/2020—5/30/2050 3.750 % 350,000 - Aggregate outstanding principal balances 2,139,245 1,830,581 Less: unamortized debt issuance costs (8,047 ) (8,969 ) Less: current portion (640,534 ) (697,877 ) Non-current portion $ 1,490,664 $ 1,123,735 (a) These debts are guaranteed by Sumitaka Yamamoto, the Company’s CEO and major shareholder. (b) These debts are guaranteed by Tokyo Credit Guarantee Association, and the Company has paid guarantee expenses for these debts. (c) The bond is guaranteed by Resona Bank, Limited. (d) These debts are guaranteed by Prakash Sadasivam, CEO of Sigmaways and CSO of the Company, and secured by all assets of Sigmaways.
SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS	As of March 31, 2023, future minimum loan payments are as follows: SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS Year Ended December 31, Loan Payment Remaining of 2023 $ 464,705 2024 467,708 2025 291,088 2026 276,692 2027 241,046 Thereafter 398,006 Total $ 2,139,245
SCHEDULE OF INCOME TAX EXPENSES	For the three months ended March 31, 2023 and 2022, the Company’s income tax expense (benefit) are as follows: SCHEDULE OF INCOME TAX EXPENSES 2023 2022 For the Three Months Ended March 31, 2023 2022 Current $ 678,732 $ (774 ) Deferred (17,284 ) (42 ) Income tax expense (benefit) $ 661,448 $ (816 )

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF UNVESTED STOCK OPTION	The following table summarizes the Company’s stock option activity for the stock options issued in 2016 for the three months ended March 31, 2022: SCHEDULE OF UNVESTED STOCK OPTION Number of Stock Options Issued and unvested as of January 1, 2022 183 Vested and exercised 183 Issued and unvested as of March 31, 2022 -
SCHEDULE OF STOCK OPTION ACTIVITY	The following table summarizes the stock options activity and related information for the three months ended March 31, 2023 and 2022: SCHEDULE OF STOCK OPTION ACTIVITY Number of Options Weighted Average Exercise Price Weighted Average Remaining Term (Years) Intrinsic Value As of January 1, 2022 1,534,500 $ 2.50 9.99 $ - Granted - - - - Exercised -        - - - Forfeited - - - - As of March 31, 2022 1,534,500 $ 2.50 9.74 $ 583,110 As of January 1, 2023 1,466,500 $ 2.50 8.94 $ - Granted 100,000 1.17 9.85 - Exercised -        - - - Forfeited (2,000 ) 2.50 - - As of March 31, 2023 1,564,500 $ 2.42 8.76 $ - Vested and exercisable as of March 31, 2023 426,500 $ 2.34 8.69 $ -
SCHEDULE OF RESTRICTED STOCK UNITS	The following table summarizes the RSUs activity for the three months ended March 31, 2023 and 2022: SCHEDULE OF RESTRICTED STOCK UNITS Number of RSUs Weighted Average Grant Date Fair Value per Share Unvested as of January 1, 2022 - $ - Granted 169,153 3.84 Vested - - Forfeited - - Unvested as of March 31, 2022 169,153 $ 3.84 Unvested as of January 1, 2023 85,820 $ 4.95 Granted 671,350 1.03 Vested (692,805 ) 1.15 Forfeited - - Unvested as of March 31, 2023 64,365 $ 4.95

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2023
Net income (loss) per common share attributable to HeartCore Enterprises, Inc.
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE	The computation of basic and diluted net income (loss) per share for the three months ended March 31, 2023 and 2022 is as follows: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE 2023 2022 For the Three Months Ended March 31, 2023 2022 Net income (loss) per share - basic and diluted: Numerator: Allocation of net income (loss) attributable to HeartCore Enterprises, Inc. common shareholders used in calculating net income (loss) per common share $ 1,882,289 $ (1,578,451 ) Net income (loss) attributable to common shareholders 1,882,289 (1,578,451 ) Denominator: Weighted average number of common shares outstanding used in calculating net income (loss) per share 19,066,160 17,265,332 Denominator used for net income (loss) per share 19,066,160 17,265,332 Net income (loss) per share - basic and diluted $ 0.10 $ (0.09 )

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
SCHEDULE OF BUSINESS PURCHASE PRICE ALLOCATION	SCHEDULE OF BUSINESS PURCHASE PRICE ALLOCATION Amount Current assets $ 2,066,683 Acquired intangible asset 5,100,000 Non-current assets 47,979 Current liabilities (1,146,900 ) Deferred tax liabilities (1,428,000 ) Non-current liabilities (576,203 ) Goodwill 3,276,441 Non-controlling interest (3,190,000 ) Total purchase consideration $ 4,150,000

ORGANIZATION AND DESCRIPTION _2

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - shares					3 Months Ended
	Feb. 24, 2022	Jan. 13, 2022	Jul. 16, 2021	Jul. 15, 2021	Mar. 31, 2022	Sep. 06, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Stock issued during period, shares		96,000
Common Stock [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Stock issued during period, shares					3,096,000
Share Exchange Agreement [Member] | Stockholder [Member] | Common Stock [Member] | HeartCore Japan [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Stock issued during period, shares			15,999,994
Stock issued during period, exchange shares	278		10,706	10,984
Ownership percentage			97.50%
Share Exchange and Purchase Agreement [Member] | Sigmaways Inc [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Business acquisition percentage of voting interest acquired						51%

SCHEDULE OF CHANGES IN ASSET RE

SCHEDULE OF CHANGES IN ASSET RETIREMENT OBLIGATIONS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Beginning balance	$ 138,018	$ 155,666
Accretion expense	112	459
Foreign currency translation adjustment	(2,594)	(18,107)
Ending balance	$ 135,536	$ 138,018

SCHEDULE OF DISAGGREGATION OF R

SCHEDULE OF DISAGGREGATION OF REVENUES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Product Information [Line Items]
Total Revenues	$ 8,734,150	$ 2,276,001
On Premise Software [Member]
Product Information [Line Items]
Total Revenues	356,921	801,601
Maintenance And Support Services [Member]
Product Information [Line Items]
Total Revenues	701,474	845,339
Software As A Service SaaS [Member]
Product Information [Line Items]
Total Revenues	171,044	126,654
Software Development And Other Miscellaneous Services [Member]
Product Information [Line Items]
Total Revenues	680,341	502,407
Customised Software Development And Services [Member]
Product Information [Line Items]
Total Revenues	1,631,619
Consulting Services [Member]
Product Information [Line Items]
Total Revenues	5,192,751
Customer Experience Management Platform [Member]
Product Information [Line Items]
Total Revenues	1,566,437	1,755,053
Process Mining [Member]
Product Information [Line Items]
Total Revenues	102,201	266,488
Robotic Process Automation [Member]
Product Information [Line Items]
Total Revenues	86,186	98,386
Task Mining [Member]
Product Information [Line Items]
Total Revenues	107,088	86,877
Others [Member]
Product Information [Line Items]
Total Revenues	$ 47,868	$ 69,197

SCHEDULE OF INVESTMENTS IN WARR

SCHEDULE OF INVESTMENTS IN WARRANTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Fair value of investments in warrants at beginning of the period
Warrants received as noncash consideration	4,009,335
Changes in fair value of investments in warrants	193,365
Investments in warrants converted to securities
Fair value of investments in warrants at end of the period	$ 4,202,700

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Product Information [Line Items]
Software development costs	$ 79,624	$ 108,259
Impairments assets	0	0
Revenues recognized included deferred revenues	$ 900,000	$ 800,000
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Product Information [Line Items]
Concentration risk percentage	28.90%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Product Information [Line Items]
Concentration risk percentage	18.80%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Product Information [Line Items]
Concentration risk percentage	13.30%
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor A [Member]
Product Information [Line Items]
Concentration risk percentage	38.50%	36.10%
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor B [Member]
Product Information [Line Items]
Concentration risk percentage	29.60%	29.40%
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor D [Member]
Product Information [Line Items]
Concentration risk percentage	18.40%
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor C [Member]
Product Information [Line Items]
Concentration risk percentage		10.80%

SCHEDULE OF ACCOUNTS RECEIVABLE

SCHEDULE OF ACCOUNTS RECEIVABLE NET (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, gross	$ 2,380,128	$ 551,064
Less: allowance for credit losses
Accounts receivable	2,380,128	551,064
Nonfactored [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, gross	2,206,546	551,064
Factored With Recourse [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, gross	$ 173,582

SCHEDULE OF PREPAID EXPENSES (D

SCHEDULE OF PREPAID EXPENSES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepayments to software vendors	$ 138,988	$ 162,046
Prepaid marketing and consulting fees	93,532	99,770
Prepaid subscription fees	110,523	113,685
Prepaid insurance premium	462,190	66,023
Others	114,683	96,706
Total	$ 919,916	$ 538,230

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)		3 Months Ended
	Jan. 13, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Operating Costs and Expenses		$ 25,480	$ 903
Number of common stock issued	96,000
Share price	$ 2.50
Proceeds private placement	$ 220,572
Heartcore Technology Inc., [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Loan receivable balance		$ 277,491		$ 294,919
Related party annual interest rate		1.475%
Repayment of debt related party		$ 11,955	9,102
Sumitaka Yamamoto [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Other Receivables		2,923		$ 402
Operating Costs and Expenses		$ 2,544	$ 25,480
Officers [Member] | Private Placement [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Number of common stock issued	30,000
Share price				$ 2.50
Proceeds private placement	$ 75,000

SCHEDULE OF PROPERTY AND EQUIPM

SCHEDULE OF PROPERTY AND EQUIPMENT NET (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Subtotal	$ 958,803	$ 885,003
Less: accumulated depreciation	(744,237)	(681,376)
Property and equipment, net	214,566	203,627
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Subtotal	293,024	298,637
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Subtotal	401,307	316,827
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Subtotal	104,488	106,490
Software and Software Development Costs [Member]
Property, Plant and Equipment [Line Items]
Subtotal	$ 159,984	$ 163,049

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Accumulated depreciation	$ 17,062	$ 24,889

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Customer relationship	$ 5,100,000
Less: accumulated amortization	(106,250)
Intangible asset, net	$ 4,993,750

SCHEDULE OF AMORTIZATION INTANG

SCHEDULE OF AMORTIZATION INTANGIBLE ASSET (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining of 2023	$ 478,125
2024	637,500
2025	637,500
2026	637,500
2027	637,500
Thereafter	1,965,625
Intangible asset, net	$ 4,993,750

SCHEDULE OF LEASE COSTS (Detail

SCHEDULE OF LEASE COSTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases
Amortization of right-of-use assets	$ 5,526	$ 12,526
Interest on lease liabilities	53	174
Total finance lease costs	5,579	12,700
Operating lease costs	84,991	87,051
Total lease costs	$ 90,570	$ 99,751

SCHEDULE OF SUPPLEMENTAL INFORM

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO THE COMPANY’S LEASES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases
Operating cash flows from finance leases	$ 53	$ 174
Operating cash flows from operating leases	81,977	89,290
Financing cash flows from finance leases	$ 5,658	$ 14,916
Weighted average remaining lease term (years) Finance leases	7 months 6 days	1 year 4 months 24 days
Weighted average remaining lease term (years) Operating leases	8 years 10 months 24 days	9 years 10 months 24 days
Weighted-average discount rate: (per annum) Finance leases	1.33%	1.32%
Weighted-average discount rate: (per annum) Operating leases	1.32%	1.32%

SCHEDULE OF FINANCE LEASE AND O

SCHEDULE OF FINANCE LEASE AND OPERATING LEASE FUTURE MATURITY OF LEASE LIABILITIES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Finance Lease, Liability [Abstract]
Remaining of 2022	$ 13,433
2023	281
2024
2025
2026
Thereafter
Total lease payment	13,714
Less: imputed interest	(51)
Total lease liabilities	13,663
Less: current portion	13,663	$ 19,294
Non-current lease liabilities		459
Operating Lease, Liability [Abstract]
Remaining of 2022	243,039
2023	310,891
2024	310,891
2025	310,891
2026	310,891
Thereafter	1,280,060
Total lease payment	2,766,663
Less: imputed interest	(164,422)
Total lease liabilities	2,602,241
Less: current portion	288,081	291,863
Non-current lease liabilities	$ 2,314,160	$ 2,421,054

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Impairment Effects on Earnings Per Share [Line Items]
Security deposits	$ 367,981	$ 244,395
Property, Plant and Equipment [Member]
Impairment Effects on Earnings Per Share [Line Items]
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	$ 12,497	$ 18,335

FACTORING LIABILITY (Details Na

FACTORING LIABILITY (Details Narrative) - Factoring Agreement [Member]	3 Months Ended
	Mar. 31, 2023 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Accounts receivable purchase	$ 850,000
[custom:PercentageOfFaceValueOfAccountsReceivableReceivedByWireTransfer-0]	90%
Total amount outstanding as per agreementr	$ 173,582
Interest expense	$ 22,695

INSURANCE PREMIUM FINANCING (De

INSURANCE PREMIUM FINANCING (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Feb. 28, 2023	Dec. 31, 2022	Feb. 28, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Insurance premium financing	$ 352,518
Insurance interest incurred	$ 5,304	$ 4,255
Insurance Premium Financing Agreement [Member] | Bank Direct Capital Finance [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Insurance premium financing			$ 389,035		$ 388,538
Debt Instrument, Interest Rate, Stated Percentage			16.04%		12.80%

SCHEDULE OF LONG-TERM DEBTS (De

SCHEDULE OF LONG-TERM DEBTS (Details)		3 Months Ended
		Mar. 31, 2023 JPY (¥)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Schedule of Investments [Line Items]
Long-Term Debt			$ 2,139,245	$ 1,830,581
Unamortized Debt Issuance Expense			(8,047)	(8,969)
Long-Term Debt, Current Maturities			(640,534)	(697,877)
Long-Term Debt, Excluding Current Maturities			1,490,664	1,123,735
Resona Bank, Limited [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		12/29/2017—12/29/2024
Debt Instrument, Interest Rate, Stated Percentage		0.675%
Original Amount Borrowed | ¥	[1]	¥ 50,000,000
Long-Term Debt			93,717	113,677
Resona Bank, Limited One [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		9/30/2020—9/30/2027
Debt Instrument, Interest Rate, Stated Percentage		0%
Original Amount Borrowed | ¥	[1],[2]	¥ 10,000,000
Long-Term Debt			48,150	52,705
Resona Bank, Limited Two [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		9/30/2020—9/30/2027
Debt Instrument, Interest Rate, Stated Percentage		0%
Original Amount Borrowed | ¥	[1],[2]	¥ 40,000,000
Long-Term Debt			192,601	210,822
Resona Bank, Limited Three [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		11/13/2020—10/31/2027
Debt Instrument, Interest Rate, Stated Percentage		1.60%
Original Amount Borrowed | ¥	[1],[2]	¥ 20,000,000
Long-Term Debt			98,083	107,227
Sumitomo Mitsui Banking Corporation [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		12/28/2018—12/28/2023
Debt Instrument, Interest Rate, Stated Percentage		1.475%
Original Amount Borrowed | ¥	[1]	¥ 100,000,000
Long-Term Debt			112,199	165,237
Sumitomo Mitsui Banking Corporation One [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		12/30/2019—12/30/2026
Debt Instrument, Interest Rate, Stated Percentage		1.975%
Original Amount Borrowed | ¥	[1],[2]	¥ 10,000,000
Long-Term Debt			40,130	44,532
The Shoko Chukin Bank, Ltd. [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		9/28/2018—8/31/2023
Debt Instrument, Interest Rate, Stated Percentage		1.20%
Original Amount Borrowed | ¥		¥ 30,000,000
Long-Term Debt			18,421	34,343
The Shoko Chukin Bank, Ltd One [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		7/27/2020—6/30/2027
Debt Instrument, Interest Rate, Stated Percentage		1.29%
Original Amount Borrowed | ¥		¥ 50,000,000
Long-Term Debt			230,643	253,377
Japan Finance Corporation One [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		11/17/2020—11/30/2027
Debt Instrument, Interest Rate, Stated Percentage		0.21%
Original Amount Borrowed | ¥		¥ 80,000,000
Long-Term Debt			404,973	442,036
Higashi Nippon Bank [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		3/31/2022—3/31/2025
Debt Instrument, Interest Rate, Stated Percentage		1.40%
Original Amount Borrowed | ¥	[1]	¥ 30,000,000
Long-Term Debt			149,169	177,669
First Home Bank [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		4/18/2019—4/18/2029
Debt Instrument, Interest Rate, Stated Percentage		2.75%
Original Amount Borrowed | ¥	[1]	¥ 350,000
Long-Term Debt			251,391
U S Small Business Administration [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		5/30/2020—5/30/2050
Debt Instrument, Interest Rate, Stated Percentage		3.75%
Original Amount Borrowed | ¥	[1]	¥ 350,000
Long-Term Debt			350,000
Corporate Bond Securities [Member] | Resona Bank, Limited [Member]
Schedule of Investments [Line Items]
Debt Instrument, Maturity Date, Description		1/10/2019—1/10/2024
Debt Instrument, Interest Rate, Stated Percentage		0.43%
Original Amount Borrowed | ¥	[1],[3]	¥ 100,000,000
Long-Term Debt			$ 149,768	$ 228,956
[1]These debts are guaranteed by Sumitaka Yamamoto, the Company’s CEO and major shareholder.[2]These debts are guaranteed by Tokyo Credit Guarantee Association, and the Company has paid guarantee expenses for these debts.[3]The bond is guaranteed by Resona Bank, Limited.

SCHEDULE OF FUTURE MINIMUM LOAN

SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Remaining of 2023	$ 464,705
2024	467,708
2025	291,088
2026	276,692
2027	241,046
Thereafter	398,006
Total	$ 2,139,245	$ 1,830,581

SCHEDULE OF INCOME TAX EXPENSES

SCHEDULE OF INCOME TAX EXPENSES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Disclosure [Abstract]
Current	$ 678,732	$ (774)
Deferred	(17,284)	(42)
Income tax expense (benefit)	$ 661,448	$ (816)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)		3 Months Ended
	Jan. 01, 2010	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Interest expense for long-term debts		$ 11,841	$ 7,016
Income tax examination, description		Sigmaways B.V. is a company incorporated in Amsterdam in Netherlands in November 2019. The first EUR200,000 of taxable income will be taxed at 19% and the remaining taxable income will be taxed at statutory tax rate of 25.80%.
Effective tax rate		26.78%	0.05%
Domestic Tax Authority [Member]
Debt Instrument [Line Items]
Effective statutory rate		21%
Foreign Tax Authority [Member]
Debt Instrument [Line Items]
Effective statutory rate	15%	34.59%	30.62%
Taxable income, rate		38%
Federal tax abatement, after		28%
Foreign Tax Authority [Member] | Minimum [Member]
Debt Instrument [Line Items]
Effective statutory rate		2%
Foreign Tax Authority [Member] | Maximum [Member]
Debt Instrument [Line Items]
Effective statutory rate		12%

SCHEDULE OF UNVESTED STOCK OPTI

SCHEDULE OF UNVESTED STOCK OPTION (Details) - Equity Option [Member]	3 Months Ended
	Mar. 31, 2022 shares
Offsetting Assets [Line Items]
Issued and unvested as of January 1, 2022	183
Vested and exercised	183
Issued and unvested as of March 31, 2022

SCHEDULE OF STOCK OPTION ACTIVI

SCHEDULE OF STOCK OPTION ACTIVITY (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Number of Options/Warrants balance	1,466,500	1,534,500
Weighted Average Exercise Price, balance	$ 2.50	$ 2.50
Weighted Average Remaining Term (Years)	8 years 11 months 8 days	9 years 11 months 26 days
Intrinsic Value
Number of Options/Warrants balance	1,564,500	1,534,500
Weighted Average Exercise Price, balance	$ 2.42	$ 2.50
Weighted Average Remaining Term (Years)	8 years 9 months 3 days	9 years 8 months 26 days
Intrinsic Value		$ 583,110
Number of Options/Warrants, Forfeited	(2,000)
Number of Options/Warrants, Vested and exercisable, balance	426,500
Weighted Average Exercise Price, Vested and exercisable, balance	$ 2.34
Weighted Average Remaining Term (Years), Vested and exercisable, balance	8 years 8 months 8 days

SCHEDULE OF RESTRICTED STOCK UN

SCHEDULE OF RESTRICTED STOCK UNITS (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Restricted Stock Units, Unvested balance	85,820
Weighted Average Grant Date Fair Value per Share, balance	$ 4.95
Number of Restricted Stock Units, Granted	671,350	169,153
Weighted Average Grant Date Fair Value per Share, Granted	$ 1.03	$ 3.84
Number of Restricted Stock Units, Vested	(692,805)
Weighted Average Grant Date Fair Value per Share, Vested	$ 1.15
Number of Restricted Stock Units, Forfeited
Weighted Average Grant Date Fair Value per Share, Forfeited
Number of Restricted Stock Units, Unvested balance	64,365	169,153
Weighted Average Grant Date Fair Value per Share, balance	$ 4.95	$ 3.84

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative)

1 Months Ended

3 Months Ended

12 Months Ended

Mar. 22, 2023 USD ($) shares

Feb. 03, 2023 $ / shares shares

Feb. 01, 2023 shares

Aug. 09, 2022 $ / shares shares

Aug. 02, 2022 $ / shares shares

Feb. 25, 2022 USD ($) shares

Feb. 14, 2022 shares

Feb. 09, 2022 USD ($) shares

Dec. 25, 2021 $ / shares shares

Nov. 03, 2021 shares

May 31, 2016 $ / shares shares

Mar. 31, 2023 USD ($) shares

Mar. 31, 2022 USD ($) shares

Dec. 31, 2022 USD ($) shares

Jan. 13, 2022 $ / shares

Dec. 31, 2021 USD ($)

Dec. 31, 2021 JPY (¥)

Aug. 06, 2021 shares

May 31, 2016 ¥ / shares

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Number of shares issued in acquisition

2,500,000

Shares issued price per share | $ / shares

$ 2.50

Number of option forfeited

2,000

Restricted Stock Units (RSUs) [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Allocated share base compensation | $

$ 730,893

$ 129,352

Unamortized share based compensation | $

187,794

Service Agreement [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Number of restricted stock issued

671,350

83,333

RSUs grant date fair value | $

$ 691,491

$ 224,999

Equity Option [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Number of options vested

183

Allocated share base compensation | $

184,335

$ 292,812

Unamortized share based compensation | $

$ 881,378

2021 Equity Incentive Plan [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Shares authorizied for issuance

2,400,000

Common Stock [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Options granted

692,804

Number of shares issued in acquisition

2,500,000

HeartCore Japan [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Options granted

484,056

Other current liabilities

$ 16

¥ 1,830

Number of options vested

183

HeartCore Japan [Member] | Common Stock [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Repurchase liability, shares | $

$ 16

Repurchase liability, value

273,489

HeartCore Japan [Member] | IPO [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Number of options vested

183

Allocated share base compensation | $

$ 11,005

Employees [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Options granted

2,000

Shares issued price per share | $ / shares

$ 2.94

Percentage of shares expected to be vested

50%

25%

Expiration date

Aug. 02, 2032

Employees [Member] | HeartCore Japan [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Options granted

507

Number of shares issued in acquisition

1,494

Shares issued price per share | (per share)

$ 0.09

¥ 10

Options granted

324

Chief Executive Officer [Member] | HeartCore Japan [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Number of option forfeited

324

Officers, Directors, Employees and Consultants [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Option to purchase common stock

1,534,500

Option exercise price per share | $ / shares

$ 2.50

Percentage of shares expected to be vested

25%

Expiration date

Dec. 25, 2031

Three Prior Employees [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Options granted

100,000

14,500

Shares issued price per share | $ / shares

$ 1.17

$ 2.48

Expiration date

Aug. 09, 2026

Five Executives [Member] | 2021 Equity Incentive Plan [Member] | Executive Employment Agreements [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Percentage of shares expected to be vested

25%

Number of restricted stock issued

85,820

RSUs grant date fair value | $

$ 424,809

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($)					3 Months Ended
	Feb. 01, 2023	Sep. 06, 2022	Feb. 14, 2022	Jan. 13, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Common stock, shares authorized					200,000,000		200,000,000
Common stock, par value					$ 0.0001		$ 0.0001
Preferred stock, shares authorized					20,000,000		20,000,000
Preferred stock, par value					$ 0.0001		$ 0.0001
Issuance of common shares for cash, shares				96,000
Shares Issued, Price Per Share				$ 2.50
Proceeds from Issuance of Private Placement				$ 220,572
Proceeds from issuance initial public offering						$ 13,602,554
Debt Issuance Costs, Net								$ 300,460
Deferred cost recognized								$ 178,847
Common stock issued from exercise of stock option			273,489
Common stock issued from exercise of stock option, shares			$ 16			$ 16
Stock issued during period shares acquisitions	2,500,000
Stock issued during period Value acquisitions	$ 3,150,000				$ 3,150,000
Common stock, shares issued					20,842,690		17,649,886
Common stock, shares outstanding					20,842,690		17,649,886
Preferred stock, shares issued					0		0
Preferred stock, shares outstanding					0		0
Purchase Agreement [Member] | Sigmaways [Member]
Subsidiary, Sale of Stock [Line Items]
Stock issued during period shares acquisitions		25,000
[custom:BusinessAcquisitionPercentage-0]	51%	51%
IPO [Member]
Subsidiary, Sale of Stock [Line Items]
Issuance of common shares for cash, shares			3,000,000
Share Price			$ 5
Proceeds from issuance initial public offering			$ 13,724,167
Officer [Member]
Subsidiary, Sale of Stock [Line Items]
Issuance of common shares for cash, shares				30,000

SCHEDULE OF COMPUTATION OF BASI

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income (loss) per common share attributable to HeartCore Enterprises, Inc.
Allocation of net income (loss) attributable to HeartCore Enterprises, Inc. common shareholders used in calculating net income (loss) per common share	$ 1,882,289	$ (1,578,451)
Net income (loss) attributable to common shareholders	$ 1,882,289	$ (1,578,451)
Weighted average number of common shares outstanding used in calculating net income (loss) per share	19,066,160	17,265,332
Denominator used for net income (loss) per share	19,066,160	17,265,332
Net income (loss) per share - basic and diluted	$ 0.10	$ (0.09)

SCHEDULE OF BUSINESS PURCHASE P

SCHEDULE OF BUSINESS PURCHASE PRICE ALLOCATION (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Sep. 06, 2022
Business Combination and Asset Acquisition [Abstract]
Current assets			$ 2,066,683
Deferred tax liabilities			(1,428,000)
Non-current liabilities			(576,203)
Goodwill	$ 3,276,441		3,276,441
Non-controlling interest			(3,190,000)
Total purchase consideration			$ 4,150,000

BUSINESS COMBINATION (Details N

BUSINESS COMBINATION (Details Narrative) - USD ($)			2 Months Ended
	Feb. 01, 2023	Sep. 06, 2022	Mar. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Issuance of common shares for acquisition of subsidiary, shares	2,500,000
Revenue			$ 1,631,619
Net loss			$ 151,534
Purchase Agreement [Member] | Sigmaways [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
[custom:BusinessAcquisitionPercentage-0]	51%	51%
Purchase combination consideration		$ 41,500
Purchase consideration, cost		$ 10,000
Issuance of common shares for acquisition of subsidiary, shares		25,000
Debt instrument, fair value		$ 31,500

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member]	May 02, 2023 USD ($)
Subsequent Event [Line Items]
Interest rate	12%
Unsecured Promissory Note [Member]
Subsequent Event [Line Items]
Notes Payable	$ 300,000
Interest rate	8%