6-K 1 f6k122019_mmtechinc.htm REPORT OF FOREIGN PRIVATE ISSUER

 

  

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

  

 

 

FORM 6-K

  

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of December 2019

  

MMTEC, INC.

(Translation of registrant’s name into English)

  

AF, 16/F, Block B, Jiacheng Plaza, 18 Xiaguangli, Chaoyang District, Beijing, 100027

People’s Republic of China.

Tel: +86 10 5617 2312

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒             Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ☐           No ☒

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________.

 

 

 

 

  

EXPLANATORY NOTE

 

This Report of Foreign Private Issuer on Form 6-K filed by MMtec, Inc. (together with our subsidiaries, unless the context indicates otherwise, “we,” “us,” “our,” or the “Company”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or the Company’s future financial performance. The Company has attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “expects,” “can,” “continue,” “could,” “estimates,” “intends,” “may,” “plans,” “potential,” “predict,” “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements. The information in this Report on Form 6-K is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this Form 6-K is filed, and the Company does not intend to update any of the forward-looking statements after the date this Report on Form 6-K is filed to confirm these statements to actual results, unless required by law.

  

 

 

   

MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN U.S. DOLLARS)

(UNAUDITED)

 

   As of 
   June 30,
2019		   December 31,
2018		 
ASSETS        
         
CURRENT ASSETS:        
Cash and cash equivalents  $4,934,595   $93,625 
Prepaid rent   -    101,298 
Other receivable   17,379    - 
Loan to employee   43,638    - 
Security deposits - current   52,114    51,107 
Prepaid expenses and other current assets   171,703    84,430 
           
Total Current Assets   5,219,429    330,460 
           
NON-CURRENT ASSETS:          
Security deposit - noncurrent    500,000      
Property and equipment, net   38,854    32,428 
Operating lease right-of-use assets   151,367      
Long-term Investment   44,560      
           
Total Non-current Assets   734,781    32,428 
           
Total Assets  $5,954,210   $362,888 
           
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY          
           
CURRENT LIABILITIES:          
Deferred revenue  $45,154   $79,182 
Salary payable   112,858    185,434 
Accrued liabilities and other payables   388    283,496 
Investee losses in excess of investment controlled by major shareholders   -    19,426 
Due to Related Parties   72,501    239,635 
Lease liabilities, current   42,722    - 
           
Total Current Liabilities   273,623    807,173 
           
Total Liabilities   273,623    807,173 
           
Commitments and Contingencies          
           
SHAREHOLDERS' (DEFICIT) EQUITY:          
Common shares ($0.001 par value; 500,000,000 shares authorized; 56,070,000 shares issued and 20,700,000 shares outstanding at June 30,2019 54,000,000 shares issued and 18,000,000 outstanding at December 31, 2018)   56,070    54,000 
Additional paid-in capital   11,229,339    3,759,008 
Less: treasury stock, at cost; (36,000,000 shares at June 30,2019 and December 31, 2018)   (36,000)   (36,000)
Accumulated deficit   (5,459,010)   (4,132,069)
Accumulated other comprehensive loss   (109,812)   (89,224)
           
Total Shareholders' (Deficit) Equity   5,680,587    (444,285)
           
Total Liabilities and Shareholders' (Deficit) Equity  $5,954,210   $362,888 

  

1

 

  

MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(IN U.S. DOLLARS)

(UNAUDITED)

 

   For the
Six Months Ended		   For the
Six Months Ended		 
   June 30,
2019		   June 30,
2018		 
         
REVENUE  $177,543   $- 
           
COST OF REVENUE   66,215    - 
           
GROSS PROFIT   111,328    - 
           
OPERATING EXPENSES:          
Selling and marketing   157,440    - 
General and administrative          
Payroll and related benefits   404,405    404,644 
Professional fees   472,638    470,190 
Other general and administrative   385,428    189,411 
           
Total Operating Expenses   1,419,911    1,064,245 
           
LOSS FROM OPERATIONS   (1,380,583)   (1,064,245)
           
OTHER INCOME (EXPENSE):          
Interest income   1,768    251 
Interest expense   -    (12)
Other income (expense)   (114)   4,581 
Foreign currency transaction gain   3764    23,682 
Loss on equity method investment controlled by major shareholders   (23,776)   (26,506)
           
Total Other Income   (18,358)   1,996 
           
LOSS BEFORE INCOME TAXES   (1,326,941)   (1,062,249)
           
INCOME TAXES   -    - 
           
NET LOSS  $(1,326,941)  $(1,062,249)
           
COMPREHENSIVE LOSS:          
NET LOSS   (1,326,941)   (1,062,249)
OTHER COMPREHENSIVE LOSS          
Foreign currency translation adjustments   (20,588)   (26,200)
COMPREHENSIVE LOSS  $(1,347,529)  $(1,088,449)
           
NET LOSS PER COMMON SHARE          
Basic and diluted  $(0.07)  $(0.02)
           
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:          
Basic and diluted   19,955,635    54,000,000 

  

2

 

  

MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN U.S. DOLLARS)

(UNAUDITED)

 

   For the
Six Months Ended		   For the
Six Months Ended		 
   June 30,
2019		   June 30,
2018		 
         
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss  $(1,326,941)  $(1,062,249)
Adjustments to reconcile net loss from operations to          
Net cash used in operating activities:          
Depreciation expense   10,315    13,181 
Loss on equity method investment controlled by major shareholders   23,776    26,506 
Noncash lease expense   150,011    —   
Changes in operating assets and liabilities:          
Security deposit   (1,107)   (47)
Prepaid expenses and other current assets   (104,903)   (51,224)
Advance from customer   (34,363)   —   
Salary payable   (73,471)   (30,389)
Accrued liabilities and other payables   (162,144)   60,710 
Lease liabilities, current   (157,631)   —   
           
NET CASH USED IN OPERATING ACTIVITIES   (1,676,458)   (1,043,512)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchase of property and equipment   (16,885)   (12,408)
Loan to employee   (44,243)   —   
Payment in equity method investment   (87,762)   (12,450)
           
NET CASH USED IN INVESTING ACTIVITIES   (148,890)   (24,858)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds received from issuance of common stock   6,851,401    1,661,420 
Capital contribution from shareholders   —      5,448 
Repayments to related parties   (168,728)   —   
           
NET CASH PROVIDED BY FINANCING ACTIVITIES   6,682,673    1,666,868 
           
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS   (16,355)   (24,143)
           
NET INCREASE IN CASH AND CASH EQUIVALENTS   4,840,970    574,355 
           
CASH AND CASH EQUIVALENTS - beginning of year   93,625    237,561 
           
CASH AND CASH EQUIVALENTS - end of year  $4,934,595   $811,916 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Cash paid for:          
Interest  $—     $—   
Income taxes  $—     $—   
           
NON-CASH INVESTING AND FINANCING ACTIVITIES:          
Proceeds from issuance of stocks directly deposited in escrow  $500,000   $—   

 

3

 

 

Exhibits

  

Exhibit No.   Description
     
99.1   Press release.

  

4

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

Date: December 20, 2019

  

  MMtec, Inc.
     
  By: /s/ Zhen Fan
    Zhen Fan, Chief Executive Officer

 

 

5