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

 

 

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