UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
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Background.
This Amendment to Form 8-K filed November 16, 2022 provides additional color on the date FOMO WORLDWIDE, INC. concluded that investors
should not rely on our financial results reported for the six months ended June 30, 2022. We came to this conclusion on November 14,
2022 after a thorough review of our financial records and book entry systems performed by our financial staff. We intend to narrow the
identified range of potential adjustments to our financials and refile our Form 10-Q for the three months ended March 31, 2022 and refile
our Form 10-Q for the three months ended June 30, 2022 upon completion of the private company audit of SMARTSolution Technologies L.P.
and SMARTSolution Technologies Inc., both acquired on February 28, 2022 (together “SST”). The audit is currently underway.
FOMO WORLDWIDE, INC. is referred to herein as “FOMO”, the “Company”, “we”, or “us”.
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
FOMO’s Board of Directors has concluded that previously issued financial statements, covering the three months ended March 31, 2022 and the three months ended June 30, 2022, for which we are required to provide financial statements under Regulation S-X (17 CFR 210), should no longer be relied upon because of errors in such financial statements as addressed in FASB ASC Topic 250, Accounting Changes and Error Corrections.
We recently promoted an existing member of staff to the position of Senior Vice President of Finance. During the course of due diligence, it became apparent that there were accounting errors during 1Q22 and 2Q22 generally attributable to our revenue recognition policies. In particular, our percentage of completion calculations as well as work in progress (“WIP”) billings for our wholly owned subsidiary, SMARTSolution Technologies, LP. were incorrect.
We estimate that the impact to our 1Q22 revenues will be a decline of $550,000 - $650,000, that the impact to our 2Q22 revenues will be an increase of $350,000 - $400,000, and that the impact of timing issues will be further corrected in 3Q22 - 4Q22. Upon a review of our purchase orders, invoices, accounts receivable and bank records, our credit facilities and liquidity remain intact, adequately funding backlog of more than $2,000,000 and a sales funnel of an additional several hundred thousand dollars in unsigned projects.
We were not notified of these discrepancies by our previous public company auditors. We have notified our current private company auditing firm who is actively reviewing the books and records of SST. We have also notified our former public company auditors. We continue to work with our private company auditors to implement improved financial policies and controls for SST going forward.
Item 9.01. Exhibits
| Exhibit No. | Description | |
| 10.1 | FOMO Worldwide, Inc. Press Release: Name Change and Update – November 16, 2022* | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
*Incorporated by reference to Form 8-K filed November 16, 2022.
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.
| FOMO WORLDWIDE, INC. | ||
| Date: November 18, 2022 | By: | /s/ Vikram Grover |
| Vikram Grover | ||
| Chief Executive Officer | ||
Cover |
Nov. 16, 2022 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K/A |
| Amendment Flag | true |
| Amendment Description | Amendment No 1 |
| Document Period End Date | Nov. 16, 2022 |
| Entity File Number | 001-13126 |
| Entity Registrant Name | FOMO WORLDWIDE, INC. |
| Entity Central Index Key | 0000867028 |
| Entity Tax Identification Number | 83-3889101 |
| Entity Incorporation, State or Country Code | CA |
| Entity Address, Address Line One | 1 E Erie St |
| Entity Address, Address Line Two | Ste 525 Unit #2250 |
| Entity Address, City or Town | Chicago |
| Entity Address, State or Province | IL |
| Entity Address, Postal Zip Code | 60611 |
| City Area Code | (630) |
| Local Phone Number | 708-0750 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common |
| Trading Symbol | FOMC |
| Entity Emerging Growth Company | true |
| Elected Not To Use the Extended Transition Period | true |