6-K 1 ea188646-6k_mmtecinc.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 November 2023

 

Commission File Number: 001-38766

  

MMTEC, INC.

(Translation of registrant’s name into English)

 

Room 2302, 23rd Floor
FWD Financial Center
308 Des Voeux Road Central
Sheung Wan, Hong Kong
Tel: +852 36908356

(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

 

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.

 

1

 

 

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL DATA

 

MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN U.S. DOLLARS)

(UNAUDITED)

 

   As of 
  

June 30,

2023

  

December 31,
2022

 
   US$   US$ 
ASSETS        
CURRENT ASSETS        
Cash and cash equivalents  $2,004,307   $3,825,477 
Accounts receivable, net   2,364,950    295,683 
Loan receivable, net   676,643    4,620,824 
Security deposits - Current   7,984    8,274 
Short-term investment   266,513    - 
Prepaid expenses and other current assets   1,774,171    172,205 
Deferred offering cost   112,748    112,748 
           
Total current assets   7,207,316    9,035,211 
           
NON-CURRENT ASSETS:          
Security deposits - Non - current   136,723    140,746 
Property and equipment, net   205,738    184,423 
Deposit for business acquisition   -    1,000,000 
Operating lease right - of - use assets   844,778    1,055,127 
Intangible asset   5,224,439    - 
Goodwill   106,935,130    - 
Deferred Tax Assets - Non-current   70,681    - 
Other non - current assets   691,965    - 
           
Total non-current assets   114,109,454    2,380,296 
           
Total assets  $121,316,770   $11,415,507 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Salary payable   283,281    372,980 
Accrued liabilities and other payables   3,133,483    395,352 
Advance from customer   288,696    - 
Accrued interest   1,343,600    - 
Operating lease liabilities - Current   475,931    405,591 
           
Total current liabilities   5,524,991    1,173,923 
           
NON-CURRENT LIABILITIES:          
Accrued liabilities - Non-current   146,475    209,250 
Operating lease liabilities - Non-current   406,460    647,983 
Convertible bond   58,311,869    - 
           
Total non-current liabilities   58,864,804    857,233 
           
Total liabilities  $64,389,795   $2,031,156 
           
SHAREHOLDERS’ EQUITY:          
Common shares ($0.01 par value; 50,000,000 shares authorized; 99,145,041 and 5,145,041 shares issued and outstanding at June 30, 2023 and December 31, 2022)   991,451    51,451 
Additional paid-in capital   77,557,407    31,727,407 
Accumulated deficit   (36,630,402)   (22,253,030)
Accumulated other comprehensive loss   (206,665)   (141,477)
           
Total shareholders’ equity attributable to MMTEC, INC.   41,711,791    9,384,351 
           
Non- controlling interests   15,215,184    - 
           
Total shareholders’ equity   56,926,975    9,384,351 
           
Total liabilities and shareholders’ equity  $121,316,770   $11,415,507 

 

2

 

 

MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(IN U.S. DOLLARS)

(UNAUDITED)

 

   For the six months ended
June 30,
2023		   For the six months ended
June 30,
2022		 
   US$   US$ 
REVENUES  $2,856,449   $733,400 
           
COST OF REVENUES   2,729,615    110,490 
           
GROSS PROFIT   126,834    622,910 
           
OPERATING EXPENSES:          
Selling and marketing   1,008,732    887,173 
General and administrative          
Payroll and related benefits   1,191,171    1,022,931 
Professional fees   519,200    696,556 
Other general and administrative expenses   497,530    943,867 
           
Total Operating Expenses   3,216,633    3,550,527 
           
LOSS FROM OPERATIONS   (3,089,799)   (2,927,617)
           
OTHER INCOME (EXPENSE)          
Interest income   61,959    19,663 
Interest expense   (11,425,657)   - 
Other income   12,090    2,576 
Foreign currency transaction (loss)/gain   (1,922)   18,177 
           
Total Other Income (Expense)   (11,353,530)   40,416 
           
LOSS BEFORE INCOME TAXES   (14,443,329)   (2,887,201)
           
INCOME TAXES   (1,737)   - 
           
NET LOSS   (14,445,066)   (2,887,201)
           
Less: Net loss attributable to non-controlling interest   (67,694)   - 
           
NET LOSS ATTRIBUTABLE TO MMTEC, INC.  $(14,377,372)  $(2,887,201)
           
COMPREHENSIVE LOSS:          
NET LOSS   (14,445,066)   (2,887,201)
OTHER COMPREHENSIVE INCOME (LOSS)          
Foreign currency translation adjustments   (80,926)   (55,780)
           
TOTAL COMPREHENSIVE LOSS   (14,525,992)   (2,942,981)
           
Less: Comprehensive loss attributable to non-controlling interests   (83,432)   - 
           
COMPREHENSIVE LOSS ATTRIBUTABLE TO MMTEC, INC.  $(14,442,560)  $(2,942,981)
           
NET LOSS PER COMMON SHARE          
Basic  $(0.46)  $(0.92)
Diluted  $(0.30)  $(0.92)
           
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:          
Basic   31,154,116    3,137,001 
Diluted   83,411,491    3,137,001 

 

3

 

 

MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN U.S. DOLLARS)

(UNAUDITED)

 

  

For the six months ended
June 30,
2023

  

For the six months ended
June 30,
2022

 
   US$    US$ 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss  $(14,445,066)  $(2,887,201)
Adjustments to reconcile net loss from operations to net cash used in operating activities:          
Depreciation expense   21,969    39,024 
Allowance for bad debts   (204)   - 
Gain on short-term investment   (534)     
Non-cash lease expense   204,510    163,218 
Foreign currency transaction loss (gain)   (3,326)   (18,177)
Deferred taxes expense   111    - 
Imputed interest expense   11,425,469    - 
           
Change in operating assets and liabilities:          
Operating lease liabilities   (187,244)   (193,925)
Accounts receivable   (147,016)   (278,617)
Accounts payable   86,202    - 
Security deposits   211    (41,604)
Prepaid expenses and other current assets   (500,283)   (1,115,439)
Advance from customers   291,658    (121,382)
Salary payable   (140,660)   (37,390)
Accrued liabilities and other payables   376,638    338,252 
           
NET CASH USED IN OPERATING ACTIVITIES:   (3,017,565)   (4,153,241)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Proceeds from disposal  of property and equipment   7,903    - 
Purchase of property and equipment   -    (6,036)
Loan repayment from to third parties   293,945    - 
Cash proceeds from acquisition   916,840    - 
Deposit for business acquisition   1,000,000    - 
Long-term investment in equity   (89,000,000)   - 
           
NET CASH USED IN INVESTING ACTIVITIES   (86,781,312)   (6,036)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from issuance of convertible bond   88,000,000    - 
           
NET CASH PROVIDED BY FINANCING ACTIVITIES   88,000,000    - 
           
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS   (22,293)   (23,890)
           
NET DECREASE IN CASH AND CASH EQUIVALENTS   (1,821,170)   (4,183,167)
           
CASH AND CASH EQUIVALENTS - Beginning of period   3,825,477    11,206,220 
           
CASH AND CASH EQUIVALENTS - End of period  $2,004,307   $7,023,053 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Cash paid for:          
Interest  $(188)  $- 
Income taxes  $(1,737)  $- 
           
NON-CASH INVESTING AND FINANCING ACTIVITIES:          
Acquisition by issuing convertible promissory note  $7,000,000   $- 
Conversion of bond to equity  $46,770,000   $- 
Remeasurement of the lease liabilities and right-of-use assets due to lease modification  $-   $830,860 

 

4

 

 

SUBMITTED HEREWITH

 

Exhibits:

 

99.1   News Release dated November 17, 2023

 

5

 

 

SIGNATURE

 

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.

 

  MMTEC, INC.
     
  By: /s/ Min Kong
    Min Kong, Chief Financial Officer

 

Date: November 17, 2023

 

 

6