0001741534--12-312023-06-30false2023Q200017415342023-01-012023-06-300001741534us-gaap:MeasurementInputRiskFreeInterestRateMember2019-01-040001741534us-gaap:MeasurementInputQuotedPriceMember2019-01-040001741534us-gaap:MeasurementInputPriceVolatilityMember2019-01-0400017415342019-01-040001741534mdjh:Network1FinancialSecuritiesInc.Memberus-gaap:IPOMember2019-01-042019-01-040001741534mdjh:Network1FinancialSecuritiesInc.Memberus-gaap:IPOMember2018-12-262018-12-260001741534us-gaap:AdditionalPaidInCapitalMember2023-06-300001741534us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001741534mdjh:StatutoryReserveMember2023-06-300001741534mdjh:RetainedEarningsDeficitMember2023-06-300001741534us-gaap:AdditionalPaidInCapitalMember2022-12-310001741534us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001741534mdjh:StatutoryReserveMember2022-12-310001741534mdjh:RetainedEarningsDeficitMember2022-12-310001741534us-gaap:AdditionalPaidInCapitalMember2022-06-300001741534us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001741534mdjh:StatutoryReserveMember2022-06-300001741534mdjh:RetainedEarningsDeficitMember2022-06-300001741534us-gaap:NoncontrollingInterestMember2021-12-310001741534us-gaap:AdditionalPaidInCapitalMember2021-12-310001741534us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001741534mdjh:StatutoryReserveMember2021-12-310001741534mdjh:RetainedEarningsDeficitMember2021-12-310001741534us-gaap:CommonStockMember2023-06-300001741534us-gaap:CommonStockMember2022-12-310001741534us-gaap:CommonStockMember2022-06-300001741534us-gaap:CommonStockMember2021-12-310001741534mdjh:Network1FinancialSecuritiesInc.Membermdjh:UnderwriterWarrantsMemberus-gaap:IPOMember2018-12-260001741534srt:MinimumMemberus-gaap:VehiclesMember2023-06-300001741534srt:MinimumMemberus-gaap:SoftwareDevelopmentMember2023-06-300001741534srt:MinimumMemberus-gaap:OfficeEquipmentMember2023-06-300001741534srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2023-06-300001741534srt:MaximumMemberus-gaap:VehiclesMember2023-06-300001741534srt:MaximumMemberus-gaap:SoftwareDevelopmentMember2023-06-300001741534srt:MaximumMemberus-gaap:OfficeEquipmentMember2023-06-300001741534srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2023-06-300001741534us-gaap:BuildingMember2023-06-300001741534us-gaap:MachineryAndEquipmentMember2023-06-300001741534us-gaap:LandBuildingsAndImprovementsMember2023-06-300001741534us-gaap:FurnitureAndFixturesMember2023-06-300001741534us-gaap:AutomobilesMember2023-06-300001741534us-gaap:SoftwareDevelopmentMember2022-12-310001741534us-gaap:MachineryAndEquipmentMember2022-12-310001741534us-gaap:LandBuildingsAndImprovementsMember2022-12-310001741534us-gaap:FurnitureAndFixturesMember2022-12-310001741534us-gaap:AutomobilesMember2022-12-310001741534mdjh:RetainedEarningsDeficitMember2023-01-012023-06-300001741534mdjh:MingdaJiaheDevelopmentInvestmentCoLtdMember2022-01-012022-12-310001741534mdjh:MdLokalGlobalGmbhMember2022-01-012022-12-310001741534mdjh:LoanFromUnrelatedIndividualMember2022-03-182022-06-300001741534us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:XisheXianglinTianjinBusinessOperationsManagementCoLtdMember2023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:XiSheTianjinCultureAndMediaCoLtd.Member2023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:XisheTianjinBusinessManagementCoLtdMember2023-06-300001741534mdjh:MingdaJiaheDevelopmentInvestmentCoLtdMember2023-06-300001741534mdjh:MdLokalGlobalGmbhMember2023-06-300001741534mdjh:MdLocalGlobalLimitedMember2023-06-300001741534mdjh:MdjmHongKongMember2023-06-300001741534mdjh:MdjccLimitedMember2023-06-300001741534mdjh:MansionsEstateMember2023-06-300001741534mdjh:BeijingMingdaJiaheTechnologyDevelopmentCoLtdMember2023-06-300001741534mdjh:XisheXianglinTianjinBusinessOperationsManagementCoLtdMember2022-12-310001741534mdjh:XisheXianglinTianjinBusinessOperationsManagementCoLtdMember2022-05-310001741534mdjh:XisheXianglinTianjinBusinessOperationsManagementCoLtdMember2021-12-310001741534mdjh:TianjinMingdajiaheRealEstateCoLtdMembermdjh:BreachOfContractMemberus-gaap:SubsequentEventMember2023-09-102023-09-100001741534mdjh:LoanFromUnrelatedIndividualMember2023-06-140001741534us-gaap:LineOfCreditMember2022-02-140001741534mdjh:MansionsEstateAgentLtdMember2023-06-300001741534mdjh:MdjmUkMembermdjh:MansionsEstateAgentLtdMember2022-05-200001741534mdjh:MansionsEstateAgentLtdMember2022-05-200001741534mdjh:OceanTideWealthLimitedMembermdjh:MansionsEstateAgentLtdMember2021-06-150001741534mdjh:MdjmUkMembermdjh:MansionsEstateAgentLtdMember2021-06-150001741534mdjh:BeijingMingdajiaheTechnologyDevelopmentCoLtdMembermdjh:MansionsEstateAgentLtdMember2021-06-150001741534mdjh:PrcMemberus-gaap:DomesticCountryMember2023-01-012023-06-300001741534mdjh:PrcMemberus-gaap:DomesticCountryMember2022-01-012022-06-300001741534country:HKus-gaap:DomesticCountryMember2023-01-012023-06-300001741534country:HKus-gaap:DomesticCountryMember2022-01-012022-06-300001741534us-gaap:DomesticCountryMember2023-01-012023-06-300001741534us-gaap:DomesticCountryMember2022-01-012022-06-300001741534us-gaap:DomesticCountryMemberus-gaap:StateAdministrationOfTaxationChinaMember2023-01-012023-06-300001741534us-gaap:DomesticCountryMembermdjh:IfIncomeTaxFromRmb1MillionTo3MillionMember2023-01-012023-06-300001741534us-gaap:ForeignCountryMember2023-01-012023-06-300001741534us-gaap:DomesticCountryMember2023-01-012023-06-300001741534country:HK2023-01-012023-06-300001741534us-gaap:ForeignCountryMember2022-01-012022-06-300001741534country:HK2022-01-012022-06-300001741534us-gaap:DomesticCountryMember2023-06-300001741534mdjh:TianjinMingdajiaheRealEstateCorporationSuzhouBranchMember2022-01-012022-12-310001741534us-gaap:LineOfCreditMember2022-12-310001741534mdjh:LoanFromUnrelatedIndividualMember2022-09-300001741534us-gaap:LineOfCreditMember2022-05-310001741534us-gaap:LineOfCreditMember2021-05-130001741534mdjh:CustomerTwoMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001741534mdjh:CustomerOneMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001741534mdjh:GeDiaoPingYuanMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-3000017415342020-12-310001741534mdjh:PrcAndOthersMember2023-06-300001741534mdjh:PrcAndOthersMember2022-12-310001741534country:GB2022-12-310001741534mdjh:PrcAndOthersMember2021-12-310001741534country:GB2021-12-3100017415342021-12-310001741534us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2023-06-300001741534mdjh:GeDiaoPingYuanMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2022-06-300001741534mdjh:UnderwriterWarrantsMember2019-01-040001741534mdjh:Network1FinancialSecuritiesInc.Membermdjh:UnderwriterWarrantsMemberus-gaap:IPOMember2018-12-262018-12-260001741534us-gaap:DomesticCountryMembermdjh:FirstClosingMember2023-01-012023-06-300001741534mdjh:SecondClosingMemberus-gaap:HerMajestysRevenueAndCustomsHMRCMember2023-01-012023-06-300001741534us-gaap:DomesticCountryMembermdjh:FirstClosingMember2022-01-012022-06-300001741534mdjh:SecondClosingMemberus-gaap:HerMajestysRevenueAndCustomsHMRCMember2022-01-012022-06-300001741534srt:MinimumMemberus-gaap:DomesticCountryMembermdjh:IfIncomeTaxFromRmb1MillionTo3MillionMember2023-01-012023-06-300001741534srt:MaximumMemberus-gaap:DomesticCountryMembermdjh:IfIncomeTaxFromRmb1MillionTo3MillionMember2023-01-012023-06-300001741534us-gaap:DomesticCountryMembermdjh:IfIncomeTaxLessThanRmb1MillionMember2023-01-012023-06-300001741534srt:MinimumMembermdjh:IfIncomeTaxLessThanRmb1MillionMember2023-01-012023-06-300001741534srt:MinimumMembermdjh:IfIncomeTaxFromRmb1MillionTo3MillionMember2023-01-012023-06-300001741534srt:MaximumMembermdjh:IfIncomeTaxFromRmb1MillionTo3MillionMember2023-01-012023-06-3000017415342019-01-012019-12-310001741534mdjh:PrcAndOthersMember2023-01-012023-06-300001741534mdjh:PrcAndOthersMember2022-01-012022-12-310001741534mdjh:PrcAndOthersMember2021-01-012021-12-310001741534mdjh:RevenueFromRealEstateAgentIncomeMember2023-01-012023-06-300001741534mdjh:RentalManagementIncomeMember2023-01-012023-06-300001741534mdjh:PrcMember2023-01-012023-06-300001741534mdjh:HotelIncomeMember2023-01-012023-06-300001741534mdjh:RevenueFromRealEstateAgentIncomeMember2022-01-012022-12-310001741534mdjh:RentalManagementIncomeMember2022-01-012022-12-310001741534country:GB2022-01-012022-12-310001741534mdjh:RevenueFromRealEstateAgentIncomeMember2021-01-012021-12-310001741534mdjh:RentalManagementIncomeMember2021-01-012021-12-310001741534mdjh:IncomeFromOtherCategoriesMember2021-01-012021-12-310001741534country:GB2021-01-012021-12-310001741534mdjh:HospitalityBusinessMember2023-01-012023-06-300001741534mdjh:PrcMember2022-01-012022-12-310001741534mdjh:PrcMember2021-01-012021-12-310001741534mdjh:Network1FinancialSecuritiesInc.Membermdjh:UnderwriterWarrantsMemberus-gaap:IPOMember2018-12-012018-12-260001741534us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001741534us-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001741534us-gaap:CustomerConcentrationRiskMember2022-01-012022-06-3000017415342019-01-012019-01-010001741534us-gaap:NoncontrollingInterestMember2022-01-012022-06-300001741534us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001741534mdjh:RetainedEarningsDeficitMember2022-01-012022-06-300001741534country:GB2023-01-012023-06-300001741534mdjh:CivilComplaintAllegingUnpaidServiceFeeAndBreachOfContractAgainstTianfangSuzhouRealEstateCoLtdMember2022-02-1700017415342023-03-242023-03-2400017415342022-07-152022-07-150001741534mdjh:TianjinMingdajiaheRealEstateCoLtdMembermdjh:BreachOfContractMemberus-gaap:SubsequentEventMember2023-09-082023-09-0800017415342023-01-092023-01-090001741534mdjh:CivilComplaintAllegingBreachOfContractAndUnpaidServiceFeeAgainstChengduTedaNewCityMember2022-03-182022-03-180001741534mdjh:FernieCastleMember2023-01-012023-06-300001741534mdjh:RobinHillMembermdjh:MansionsEstateAgentLtdMember2023-01-012023-06-300001741534mdjh:FernieCastleMembermdjh:MansionsEstateAgentLtdMember2023-01-012023-06-300001741534mdjh:RobinHillMember2023-01-012023-06-300001741534us-gaap:StateAndLocalJurisdictionMember2022-01-012022-12-3100017415342022-01-012022-06-3000017415342022-01-012022-12-3100017415342021-01-012021-12-310001741534country:GB2023-06-3000017415342023-02-272023-02-270001741534mdjh:BeijingMingdajiaheTechnologyDevelopmentCoLtdMembermdjh:TianjinMingdajiaheRealEstateCoLtdMembermdjh:ExclusiveBusinessCooperationAgreementMember2018-04-282018-04-280001741534mdjh:SubsidiariesAndConsolidatedVariableInterestEntitiesMember2023-01-012023-06-3000017415342023-06-3000017415342022-12-3100017415342022-06-3000017415342022-12-232022-12-230001741534mdjh:TianjinMingdajiaheRealEstateCoLtdMembermdjh:BreachOfContractMemberus-gaap:SubsequentEventMember2023-07-170001741534us-gaap:FinancingReceivables60To89DaysPastDueMember2023-01-012023-06-300001741534us-gaap:FinancingReceivables30To59DaysPastDueMember2023-01-012023-06-300001741534us-gaap:FinancialAssetNotPastDueMember2023-01-012023-06-300001741534mdjh:FinancialAssetGreaterThan365DaysPastDueMember2023-01-012023-06-300001741534mdjh:FinancialAsset90To179DaysPastDueMember2023-01-012023-06-300001741534mdjh:FinancialAsset180To365DaysPastDueMember2023-01-012023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:XisheXianglinTianjinBusinessOperationsManagementCoLtdMember2023-01-012023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:XiSheTianjinCultureAndMediaCoLtd.Member2023-01-012023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:XisheTianjinBusinessManagementCoLtdMember2023-01-012023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:TianjinMingdajiaheRealEstateCorporationYangzhouBranchMember2023-01-012023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:TianjinMingdajiaheRealEstateCorporationSuzhouBranchMember2023-01-012023-06-300001741534us-gaap:VariableInterestEntityPrimaryBeneficiaryMembermdjh:TianjinMingdajiaheRealEstateCorporationLimitedChengduBranchMember2023-01-012023-06-300001741534mdjh:TianjinMingdajiaheRealEstateCoLtdMember2023-01-012023-06-300001741534mdjh:MingdaJiaheDevelopmentInvestmentCoLtdMember2023-01-012023-06-300001741534mdjh:MdLokalGlobalGmbhMember2023-01-012023-06-300001741534mdjh:MdLocalGlobalLimitedMember2023-01-012023-06-300001741534mdjh:MdjmHongKongMember2023-01-012023-06-300001741534mdjh:MansionsEstateMember2023-01-012023-06-300001741534mdjh:BeijingMingdaJiaheTechnologyDevelopmentCoLtdMember2023-01-012023-06-30iso4217:USDxbrli:sharesxbrli:pureiso4217:CNYiso4217:USDiso4217:CNYiso4217:USDiso4217:GBPiso4217:USDiso4217:GBPmdjh:employeemdjh:customerxbrli:shares

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 September 2023

Commission File Number: 001-38768

MDJM LTD

Fernie Castle, Letham

Cupar, Fife, KY15 7RU

United Kingdom

(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  

EXPLANATORY NOTE

MDJM LTD (the “Company”) is furnishing this report on Form 6-K to provide the six-month interim financial statements for the period ended June 30, 2023 and incorporate such financial statements into the Company’s registration statement referenced below.

This Form 6-K is hereby incorporated by reference into the registration statement on Form F-3 of the Company (File Number 333-261347), as amended, and into the prospectus outstanding under the foregoing registration statement, to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

EXHIBIT INDEX

Exhibit
No.

    

Description

99.1

Unaudited Condensed Consolidated Financial Statements for the Six Months Ended June 30, 2023 and 2022

101.INS

Inline XBRL Instance Document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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, thereunto duly authorized.

MDJM LTD

By:

/s/ Siping Xu

Siping Xu

Chief Executive Officer

Date: September 20, 2023