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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
Commission File Number 001-34837
Luokung Technology Corp.
(Translation of registrant’s name into English)
B9-8, Block B, SOHO Phase II, No. 9, Guanghua Road, Chaoyang
District, Beijing People’s Republic of China 100020
(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 þ 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):
___
Note: Regulation S-T Rule 101(6)(1) only permits the submission in
paper of a Form 6-K if submitted solely to provide an attached
annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule l01(b)(7): ____
Note: Regulation S-T Rule 101(6)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report
or other document that the registrant foreign private issuer must
furnish and make public’ under the laws of the jurisdiction in
which the registrant is incorporated, domiciled or legally
organized (the registrant’s “home country”), or under the rules of
the home country exchange on which the registrant’s securities are
traded, as long as the report or other document is not a press
release, is not required to be and has not been distributed to the
registrant’s security holders, and, if discussing a material event,
has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Luokung Technology Corp.
Luokung Technology Corp. Reports
The First Six Months of Fiscal Year 2019 Unaudited Financial
Results
Luokung Technology Corp. (Nasdaq: LKCO) (“Luokung”, “we” or the
“Company”), today announced the financial results for the six
months ended June 30, 2019. The financial statements and other
financial information included in this Form 6-K are prepared in
conformity with accounting principles generally accepted in the
United States of America (“U.S. GAAP”).
Financial Highlights for the Six Months Ended June 30, 2019:
Revenues decreased 54.5% to $5.73 million from $12.60 million for
the six months ended June 30, 2018;
Net loss of $10.57 million as compared to net loss of $4.53 million
for the six months ended June 30, 2018.
Basic and diluted loss per share was $0.05 for the six months ended
June 30, 2019 compared to basic and diluted loss per share of
$4,533,210 for the six months ended June 30, 2018. Weighted average
shares outstanding for the six months ended June 30, 2019 and 2018
were 200,223,114 and 1, respectively.
“For the first
half of the fiscal year, we gradually terminated the Wi-Fi
provision for express trains because the increase in numbers of
High-speed trains led to the shrinkage of the passenger trips of
express trains. Our revenue in relation to the display-based online
advertising services on Luokuang Application decreased. However, at
beginning of this year, we have been rapidly building an LLDMP,
Luokung Location-based services (“LBS”) Data Marketing Platform,
that combines our LBS strength with existing advertising tools. Our
LBS capability including indoor floor maps, location information,
and point of interest for more than twenty thousand commercial
buildings covers high speed train stations, shopping malls,
airports and so on. Additionally, it also comes with data of
millions of geo-fences across China. With those LBS capability, we
could help our customers reach the right audience and help
advertisers spend marketing budget more accurately and more
efficiently.” said Mr. Song Xuesong, Chief Executive Officer, “In
the meantime, we are putting more effort in developing our services
and products utilizing our advanced spatial temporal indexing
technology through strategic cooperation with authorities and
Merger and Acquisition to enrich the data sources, including remote
sensing data, mapping data, High Definition (“HD”) map data, indoor
map data and HD positioning data.”
Results of Operations - For the Six Months Ended June 30,
2019 Compared to the Six Months Ended June 30, 2018
Revenue
We are one of the global leading spatial-temporal big-data
processing technology companies, a leading interactive
location-based services company in China. We provide display-based
online advertising services to customers by integrating text
description, image and video, and displaying the advertisements in
a prominent position on Luokuang mobile application on a
cost-per-click basis, the customers pay us only when a user clicks
on an advertisement on the Luokuang mobile application, and we also
derive our revenue from the provision of user acquisition services
to our advertisers on the strength of the LBS services we offer,
the customers pay us based on performance, including measured by
CPI (Cost Per Install), CPM(Cost Per Mille), CPC(Cost Per Click).
The Company recognizes revenue over time because the customer
receives and consumes the benefit of our advertising services
throughout the contract period.
Software and services, the Company generates revenues primarily in
the form of sale of software license and provision of technology
solution services. License fees include perpetual license fees,
term license fees and royalties. Technology services primarily
consist of fees for providing technology solution services that
enable customers to gain real-time operational intelligence by
harnessing the value of their data.
Revenue for the sale of software licenses is recognized at the
point in time when the control of the provided goods is provided to
our customers.
Technology solution revenue is recognized over time, as the
services are performed because the customer receives and consumes
the benefit of our performance throughout the contract period.
Milestones with corresponding payment are stated in the contracts
with customers. We bill for the services we have performed when the
milestones reached are accepted by the customer in accordance with
the terms of the contract. We recognize the revenues associated
with these professional services as we deliver each agreed portion
of the services.
For the six months ended June 30, 2019, we had revenue of
$5,728,268, as compared to revenue of $12,597,026 for the six
months ended June 30, 2018, a change of $6,868,758, or 54.5%, which
was primarily due to the termination of the Wi-Fi provision for
express trains as the increase in numbers of High-speed trains led
to the shrinkage of the passenger trips of express trains.
Therefore, starting from the beginning of 2019, we generated our
revenue through our Luokung Location-based services Data Marketing
Platform.
Operating costs and expenses
Our operating costs and expenses consist of cost of revenues,
selling, general and administrative expenses, and research and
development expenses.
Cost of Revenues
Cost of revenues increased by 19.6% to approximately $4.84 million
for the six months ended June 30, 2019 from approximately $4.04
million for the six months ended June 30, 2018. For the six months
ended June 30, 2019, the cost of revenues primarily consists of
traffic acquisition costs, our traffic acquisition costs may vary
due to a number of factors, the scale, targeted audience and the
geographic of traffic. For the six months ended June 30, 2018, the
costs of revenues primarily consist of depreciation, labor cost,
Wi-Fi equipment installation fees, data charges, annual payments to
local railway bureau, other overhead costs.
Selling and marketing expense
Our selling and marketing expense mainly include promotional and
marketing expenses and compensation for our sales and marketing
personnel.
Selling expense totaled $770,092 for the six months ended June 30,
2019, as compared to $8,586,325 for the six months ended June 30,
2018, a decrease of $7,816,233 or 91.0%. The decrease was primarily
attributable to the decrease in promotional and marketing
activities conducted by the Company to promote the Luokuang APP due
to the termination of the Wi-Fi provision on express trains.
General and administrative expense
Our general and administrative expenses consist primarily of
salaries and benefits for our general and administrative personnel,
rent, fees and expenses for legal, accounting and other
professional services
General and administrative expense totaled $6,777,839 for the six
months ended June 30, 2019, as compared to $3,682,763 for the six
months ended June 30, 2010, an increase of $3,095,076 or 84.0%. The
increase was primarily attributable to the increase on the
allowance for doubtful receivables of approximately $3,852,000.
Research and development expenses
Research and development expenses primarily consist of salaries and
benefits for research and development personnel.
Research and development expenses totaled $3,880,812 for the six
months ended June 30, 2019, as compared to $514,414 for the six
months ended June 30, 2018, an increase of $ 3,366,398 or 654.4%.
The increase was primarily attributable to the amortization of the
intangible assets of approximately $2,713,000, which was recognized
as a result of the acquisition of Super Engine Holdings Limited in
accordance to PPA, and the increase in the salaries of
approximately $688,000 due to the increase in staff of R&D
department.
Loss from operations
As a result of the factors described above, for the six months
ended June 30, 2019, loss from operations amounted to $10,536,233
as compared to loss from operations of $4,230,985 for the six
months ended June 30, 2018, an increase of $6,305,248, or
149.0%.
Other income/expense
Other income/expense mainly include interest expenses from other
loans and foreign currency gains/losses.
For the six months ended June 30, 2019, other expense, net,
amounted to $31,494 as compared to other expense, net, of $302,225
for the six months ended June 30, 2018, a change of $270,731, or
89.6%, which was primarily attributable to an increase in foreign
currency transaction loss of approximately $118,000, offset by an
increase in other income of approximately $380,000 and an decrease
in interest expenses of approximately $9,000.
Net loss
As a result of the factors described above, our net loss was
$10,567,727 for the six months ended June 30, 2019, compared to net
loss of $4,533,210 for the six months ended June 30, 2018, an
increase of $ 6,034,517 or 133.1%.
Foreign currency translation adjustment
Our reporting currency is the U.S. dollar. The functional currency
of our parent company and subsidiaries of LK Technology, MMB and
Mobile Media is the U.S. dollar and the functional currency of the
Company’s subsidiaries incorporated in China is the Chinese
Renminbi (“RMB”). The financial statements of our subsidiaries
incorporated in China are translated to U.S. dollars using period
end rates of exchange for assets and liabilities, and average rates
of exchange (for the period) for revenue, costs, and expenses. Net
gains and losses resulting from foreign exchange transactions are
included in the consolidated statements of operations and
comprehensive loss. As a result of foreign currency translations,
which are a non-cash adjustment, we reported a foreign currency
translation gain of $95,792 for the six months ended June 30, 2019,
as compared to a foreign currency translation loss of $274,553 for
the six months ended June 30, 2018. This non-cash gain had the
effect of increasing/decreasing our reported comprehensive
income/loss.
Comprehensive loss
As a result of our foreign currency translation adjustment, we had
comprehensive loss for the six months ended June30, 2019 of
$10,471,935, compared to comprehensive loss of $4,807,763 for the
six months ended June 30, 2018.
Liquidity and Capital Resources
Liquidity is the ability of a company to generate funds to support
its current and future operations, satisfy its obligations and
otherwise operate on an ongoing basis. We historically relied on
cash flow provided by operations and financing to supplement our
working capital. At June 30, 2019 and December 31, 2018, we had
cash balances of approximately $490,551 and $1,192,218,
respectively. The significant portion of these funds are located in
financial institutions located in the PRC and will continue to be
indefinitely reinvested in our operations in the PRC.
The following table sets forth a summary of changes in our working
capital from December 31, 2018 to June 30, 2019:
| |
|
|
|
|
|
|
|
December 31,
2018
to June 30,
2019 |
|
| |
|
June 30,
2019 |
|
|
December 31,
2018 |
|
|
Change |
|
|
Percentage
Change |
|
| Working capital deficit: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
$ |
28,940,818 |
|
|
$ |
31,538,510 |
|
|
$ |
(2,597,692 |
) |
|
|
(8.2 |
)% |
| Total current
liabilities |
|
|
32,968,637 |
|
|
|
33,733,887 |
|
|
|
(765,250 |
) |
|
|
(2.3 |
)% |
| Working capital
deficit: |
|
$ |
(4,027,819 |
) |
|
$ |
(2,195,377 |
) |
|
$ |
(1,832,442 |
) |
|
|
83.5 |
% |
Our working capital deficit increased by $1,832,442 to working
capital deficit of $4,027,819 at June 30, 2019 from working capital
deficit of $2,195,377 at December 31, 2018. This increase in
working capital deficit is primarily attributable to a decrease in
accounts receivable of $4,684,000, a decrease in amounts due from
related party of approximately $497,000 and an increase in accounts
payable of approximately $3,563,000, offset by an increase in other
receivables of approximately $3,285,000, a decrease in accrued
liabilities and other payables of approximately $1,361,000, a
decrease in amounts due to related party of approximately
$2,558,000 and a decrease in deferred revenue of approximately
$409,000.
In order to mitigate our liquidity risk, we plan to rely on the
proceeds from loans from financial institutions and/or existing
investors to increase working capital in order to meet capital
demands. In addition, we expect Mr.Song, the Chief Executive
Officer and Chairman of the Board, to continue to provide financial
support to the Company when necessary.
Cash flows for the six months ended June 30, 2019 compared to
the six months ended June 30, 2018
The following summarizes the key components of our cash flows for
the six months ended June 30, 2019 and 2018:
| |
|
Six Months Ended
June 30, |
|
| |
|
2019 |
|
|
2018 |
|
| Net cash used in operating
activities |
|
$ |
(4,669,189 |
) |
|
$ |
(3,292,566 |
) |
| Net cash (used in) provided by
investing activities |
|
|
(10,839 |
) |
|
|
572,745 |
|
| Net cash provided by financing
activities |
|
|
4,037,543 |
|
|
|
3,969,051 |
|
| Effect of
foreign exchange rate changes |
|
|
(59,183 |
) |
|
|
43,915 |
|
| Net (decrease)
increase in cash |
|
$ |
(701,668 |
) |
|
$ |
1,293,145 |
|
Net cash flow used in operating activities was $4,669,189 for the
six months ended June 30, 2019 as compared to net cash flow used in
operating activities was $3,292,566 for the six months ended June
30, 2018, an increase of $1,376,623.
Net cash flow used in operating activities for the six months ended
June 30, 2018 primarily reflected our net loss of approximately
$10,568,000, and the add-back of non-cash items, mainly consisting
of depreciation and amortization of approximately $3,004,000,
allowance for doubtful receivables of approximately $5,214,000,
exchange difference of approximately $241,000, and changes in
operating assets and liabilities primarily consisting of an
increase in accounts receivable of approximately $546,000, an
increase in other receivable and prepayment of approximately
$4,083,000 and a decrease in deferred revenue of approximately
$412,000, offset by an increase in accounts payable of
approximately $1,806,000 and an increase in accrued liabilities and
other payables of approximately $674,000.
Net cash flow used in operating activities for the six months ended
June 30, 2018 primarily reflected our net loss of approximately
$4,533,000, and the add-back of non-cash items, mainly consisting
of depreciation and amortization of approximately $2,299,000, bad
debts written off of approximately $922,000, allowance for doubtful
accounts of approximately $1,362,000, exchange difference of
approximately $918,000, impairment of PPE of approximately
$1,199,000 and changes in operating assets and liabilities
primarily consisting of an increase in accounts receivable of
approximately $8,470,000, a decrease in deferred revenue of
approximately $984,000 and a decrease in accounts payable of
approximately $1,964,000, offset by a decrease in other receivable
of approximately $4,651,000 and an increase in accrued liabilities
and other payables of approximately $1,307,000.
Net cash flow used in investing activities was $10,839 for the six
months ended June 30, 2019 as compared to net cash flow provided by
investing activities $572,745 for the six months ended June 30,
2018. During the six months ended June 30, 2019, we made payments
for the purchase of property, plant and equipment of approximately
$11,000. During the six months ended June 30, 2018, we made
payments for the purchase of property and equipment of
approximately $17,000, offset by proceeds from disposal of property
and equipment of approximately $590,000.
Net cash flow provided by financing activities was $4,037,543 for
the six months ended June 30, 2019 as compared to net cash flow
provided by financing activities of $3,969,051 for the six months
ended June 30, 2018. During the six months ended June 30, 2019, we
received proceeds from investor of approximately $6,000,000, offset
by repayment to related parties of approximately $1,962,000. During
the six months ended June 30, 2018, we received advances from
related parties of approximately $3,969,000.
About Luokung Technology Corp.
Luokung Technology Corp. is one of the global leading
spatial-temporal big-data processing technology companies and a
leading interactive location-based services company in China. The
core business brands of the Company are “Luokuang” and
“Superengine” . The Company mainly provides spatial temporal big
data PaaS, SaaS and DaaS intelligent services based on its
self-developed patented technology which can be applied in Mobile
Internet LBS, Internet Travelling, Intelligent Transportation,
Automatic Drive, Smart City, Intelligent IoT, Natural Resources
Exploration and Monitoring and so on. These services are integrated
intelligent computing and application services for spatial temporal
data which including but not limited to Satellite and UAV Remote
Sensing Image Data, HD Map, 2D and 3D Internet Map, Real-time
Trajectory, IoT Industrial Stream Data. For more information please
go to http://www.luokung.com.
Safe Harbor Statements
This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995,
including certain plans, expectations, goals, and projections,
which are subject to numerous assumptions, risks, and
uncertainties. These forward-looking statements may include, but
are not limited to, statements containing words such as “may,”
“could,” “would,” “plan,” “anticipate,” “believe,” “estimate,”
“predict,” “potential,” “expects,” “intends”, “future” and
“guidance” or similar expressions. These forward-looking statements
speak only as of the date of this press release and are subject to
change at any time. These forward-looking statements are based upon
management’s current expectations and are subject to a number of
risks, uncertainties and contingencies, many of which are beyond
the Company’s control that may cause actual results, levels of
activity, performance or achievements to differ materially from any
future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. The
Company’s actual results could differ materially from those
contained in the forward-looking statements due to a number of
factors, including those described under the heading “Risk Factors”
in the Company’s Annual Report for the fiscal year ended September
30, 2017 filed with the Securities and Exchange Commission. The
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required under applicable
law.
For investor and media inquiries, please contact:
Mr. Jay Yu
Tel: (+86) 10-6506 5217
Email: yujie@luokung.com
LUOKUNG TECHNOLOGY CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(IN U.S. DOLLARS)
| |
|
As
of
June 30, |
|
|
As
of
December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| Assets |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash |
|
$ |
490,551 |
|
|
$ |
1,192,218 |
|
| Accounts
receivable, net of allowance for doubtful accounts |
|
|
17,977,102 |
|
|
|
22,661,594 |
|
| Other receivables
and prepayment |
|
|
6,034,423 |
|
|
|
2,749,000 |
|
|
Amounts due from related parties |
|
|
4,438,742 |
|
|
|
4,935,698 |
|
| Total current
assets |
|
|
28,940,818 |
|
|
|
31,538,510 |
|
| Non-current assets: |
|
|
|
|
|
|
|
|
| Property and
equipment, net |
|
|
619,916 |
|
|
|
898,007 |
|
| Intangible assets,
net |
|
|
50,049,785 |
|
|
|
52,763,998 |
|
| Goodwill |
|
|
11,728,600 |
|
|
|
11,728,600 |
|
| Other
receivables, net (Long term) |
|
|
146,945 |
|
|
|
150,286 |
|
| Total
non-current assets |
|
|
62,545,246 |
|
|
|
65,540,891 |
|
| TOTAL ASSETS |
|
|
91,486,064 |
|
|
|
97,079,401 |
|
| Liabilities |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts
payable |
|
|
4,321,256 |
|
|
|
758,386 |
|
| Accrued liabilities
and other payables |
|
|
26,878,544 |
|
|
|
28,239,477 |
|
| Deferred
revenue |
|
|
877,952 |
|
|
|
1,286,635 |
|
| Tax payable |
|
|
71,239 |
|
|
|
71,358 |
|
|
Amounts due to related parties |
|
|
819,646 |
|
|
|
3,378,031 |
|
| Total current
liabilities |
|
|
32,968,637 |
|
|
|
33,733,887 |
|
| Non-current liabilities: |
|
|
|
|
|
|
|
|
| Accrued
liabilities and other payables |
|
|
- |
|
|
|
244,755 |
|
| Total non-
current liabilities |
|
|
- |
|
|
|
244,755 |
|
| TOTAL
LIABILITIES |
|
|
32,968,637 |
|
|
|
33,978,642 |
|
| |
|
|
|
|
|
|
|
|
| Commitments and contingencies |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Shareholders’ Equity |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Share capital |
|
|
|
|
|
|
|
|
| Preferred stock, $0.01 par value;
1,000,000 shares authorized, issued and outstanding at June 30,
2019 and December 31, 2018 |
|
|
10,000 |
|
|
|
10,000 |
|
| Common
stock, $0.01 par value; 250,000,000 shares authorized; 200,317,558
shares issued and outstanding at June 30, 2019; 199,317,599 shares
issued and outstanding at December 31, 2018 |
|
|
2,003,176 |
|
|
|
1,993,176 |
|
| Additional paid-in
capital |
|
|
108,003,864 |
|
|
|
102,125,814 |
|
| Accumulated
deficit |
|
|
(52,390,932 |
) |
|
|
(41,863,694 |
) |
|
Accumulated other comprehensive income |
|
|
931,255 |
|
|
|
835,463 |
|
| Total equity attributable to
owners of the company |
|
|
58,557,363 |
|
|
|
63,100,759 |
|
|
Non-controlling interest |
|
|
(39,936 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Total
Shareholders’ Equity |
|
|
58,517,427 |
|
|
|
63,100,759 |
|
| |
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|
$ |
91,486,064 |
|
|
$ |
97,079,401 |
|
LUOKUNG TECHNOLOGY CORP. AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(IN U.S. DOLLARS)
| |
|
For
the Six Months Ended |
|
| |
|
June 30, |
|
| |
|
2019 |
|
|
2018 |
|
| |
|
|
|
|
|
|
| Revenues |
|
$ |
5,728,268 |
|
|
$ |
12,597,026 |
|
| Less: Operating costs and
expenses: |
|
|
|
|
|
|
|
|
| Cost of revenues |
|
|
4,835,758 |
|
|
|
4,044,509 |
|
| Selling and
marketing |
|
|
770,092 |
|
|
|
8,586,325 |
|
| General and
administrative |
|
|
6,777,839 |
|
|
|
3,682,763 |
|
|
Research and development |
|
|
3,880,812 |
|
|
|
514,414 |
|
| Total Operating
costs and expenses |
|
|
16,264,501 |
|
|
|
16,828,011 |
|
| Loss from
operations |
|
|
(10,536,233 |
) |
|
|
(4,230,985 |
) |
| Other income (expense): |
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(20,488 |
) |
|
|
(29,379 |
) |
| Foreign exchange (losses) gains,
net |
|
|
(252,477 |
) |
|
|
(134,662 |
) |
| Other income
(expense), net |
|
|
241,471 |
|
|
|
(138,184 |
) |
| Total other
(expense) income, net |
|
|
(31,494 |
) |
|
|
(302,225 |
) |
| Loss before income taxes |
|
|
(10,567,727 |
) |
|
|
(4,533,210 |
) |
| Income
taxes |
|
|
- |
|
|
|
- |
|
| Net loss |
|
$ |
(10,567,727 |
) |
|
$ |
(4,533,210 |
) |
| Less: Net loss
attributable to the non-controlling interest |
|
|
40,489 |
|
|
|
- |
|
| Net loss
attributable to owners of the Company |
|
$ |
(10,527,238 |
) |
|
$ |
(4,533,210 |
) |
| Comprehensive loss: |
|
|
|
|
|
|
|
|
| Net loss |
|
|
(10,567,727 |
) |
|
|
(4,533,210 |
) |
| Other comprehensive income: |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
95,792 |
|
|
|
(274,553 |
) |
| Comprehensive
loss |
|
$ |
(10,471,935 |
) |
|
$ |
(4,807,763 |
) |
| Less: Comprehensive loss attributable
to the non-controlling interest |
|
|
39,936 |
|
|
|
- |
|
| Comprehensive
loss attributable to owner of the company |
|
$ |
(10,431,999 |
) |
|
$ |
(4,807,763 |
) |
| Net loss per ordinary share: |
|
|
|
|
|
|
|
|
| Basic
and Diluted |
|
$ |
(0.05 |
) |
|
$ |
(4,533,210 |
) |
| |
|
|
|
|
|
|
|
|
| Weighted
average number of ordinary shares outstanding Basic and
Diluted |
|
|
200,223,114 |
|
|
|
1 |
|
LUOKUNG TECHNOLOGY CORP. AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN U.S. DOLLARS)
| |
|
For
the Six Months Ended |
|
| |
|
June 30, |
|
| |
|
2019 |
|
|
2018 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Net
loss |
|
$ |
(10,567,727 |
) |
|
$ |
(4,533,210 |
) |
| Depreciation and
amortization |
|
|
3,004,225 |
|
|
|
2,299,337 |
|
| Bad debts written
off |
|
|
- |
|
|
|
921,720 |
|
| Exchange
difference |
|
|
241,269 |
|
|
|
918,230 |
|
| Increase in
allowance for doubtful accounts |
|
|
5,213,811 |
|
|
|
1,361,745 |
|
| Impairment of PPE |
|
|
553 |
|
|
|
1,198,761 |
|
|
Changes in assets and liabilities |
|
|
|
|
|
|
|
|
| Accounts
receivable |
|
|
(546,313 |
) |
|
|
(8,470,359 |
) |
| Other receivables
and prepayment |
|
|
(4,082,861 |
) |
|
|
4,651,286 |
|
| Tax payable |
|
|
|
|
|
|
|
|
| Deferred
revenue |
|
|
(412,161 |
) |
|
|
(983,748 |
) |
| Accounts
payable |
|
|
1,806,174 |
|
|
|
(1,963,679 |
) |
|
Accrued liabilities and other payables |
|
|
673,841 |
|
|
|
1,307,351 |
|
| Net
cash used in operating activities |
|
|
(4,669,189 |
) |
|
|
(3,292,566 |
) |
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
| Purchase of
property and equipment |
|
|
(10,839 |
) |
|
|
(17,156 |
) |
|
Proceeds from disposal of deposits |
|
|
- |
|
|
|
589,901 |
|
| Net cash (used
in) provided by investing activities |
|
|
(10,839 |
) |
|
|
572,745 |
|
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
| (Repayment to)
advances from related parties |
|
|
(1,962,457 |
) |
|
|
3,969,051 |
|
|
Proceeds from investor |
|
|
6,000,000 |
|
|
|
- |
|
| Net cash
provided by financing activities |
|
|
4,037,543 |
|
|
|
3,969,051 |
|
| |
|
|
|
|
|
|
|
|
| Effect of
foreign exchange rate changes |
|
|
(59,182 |
) |
|
|
43,915 |
|
| |
|
|
|
|
|
|
|
|
| Net (decrease) increase in cash |
|
|
(701,667 |
) |
|
|
1,293,145 |
|
| |
|
|
1,192,218 |
|
|
|
72,379 |
|
| |
|
|
|
|
|
|
|
|
| Cash at end of period |
|
$ |
490,551 |
|
|
$ |
1,365,524 |
|
| |
|
|
|
|
|
|
|
|
| Supplemental cash flow
disclosures: |
|
|
|
|
|
|
|
|
| Interest paid |
|
|
20,488 |
|
|
|
29,379 |
|
| Income
taxes paid |
|
|
- |
|
|
|
- |
|
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.
| |
Luokung Technology
Corp. |
| |
|
| Date December 27, 2019 |
By |
/s/ Xuesong Song |
| |
|
Xuesong Song |
| |
|
Chief Executive
Officer |
| |
|
(Principal Executive Officer)
and |
| |
|
Duly Authorized
Officer |
10
Luokung Technology (NASDAQ:LKCO)
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From Dec 2020 to Jan 2021
Luokung Technology (NASDAQ:LKCO)
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From Jan 2020 to Jan 2021
