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 October 2020

  

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.

 

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UNAUDITED CONDENSED CONSOLIDATED FINANCIAL DATA

 

MMTEC, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS 

(IN U.S. DOLLARS)

 

    As of  
   

June 30,
2020

    December 31,
2019
 
   

(UNAUDITED)

       
ASSETS            
             
CURRENT ASSETS:            
Cash and cash equivalents   $ 1,829,837     $ 3,642,521  
Accounts receivable, net     15,011       16,029  
Other receivable     -       78,624  
Loan to employee     169,503       172,013  
Security deposits - current     10,875       46,512  
Prepaid expenses and other current assets     376,701       392,011  
                 
Total Current Assets     2,401,927       4,347,710  
                 
NON-CURRENT ASSETS:                
Security deposit - noncurrent     604,047       605,588  
Property and equipment, net     130,385       132,016  
Operating lease right-of-use asset     767,159       979,885  
Long-term investment     928,199       143,346  
                 
Total Non-current Assets     2,429,790       1,860,835  
                 
Total Assets   $ 4,831,717     $ 6,208,545  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
Deferred revenue   $ 18,137     $ 63,246  
Salary payable     160,162       174,741  
Accrued liabilities and other payables     39,200       222,152  
Due to related parties     8,000       6,030  
Operating lease liabilities - current     379,066       339,330  
                 
Total Current Liabilities     604,565       805,499  
                 
NON-CURRENT LIABILITIES:                
Operating lease liabilities - noncurrent     465,530       648,334  
Loan payable     41,250       -  
                 
Total Non-current Liabilities     506,780       648,334  
                 
Total Liabilities     1,111,345       1,453,833  
                 
SHAREHOLDERS' EQUITY:                
Common shares ($0.001 par value; 500,000,000 shares authorized; 56,070,000 shares issued and 20,070,000 shares outstanding at June 30,2020 and December 31, 2019)     56,070       56,070  
Additional paid-in capital     11,229,289       11,229,339  
Less: treasury stock, at cost;                
(36,000,000 shares at June 30, 2020 and December 31, 2019)     (36,000 )     (36,000 )
Accumulated deficit     (7,386,455 )     (6,375,303 )
Accumulated other comprehensive loss     (142,532 )     (119,394 )
                 
Total Shareholders' Equity     3,720,372       4,754,712  
                 
Total Liabilities and Shareholders' Equity   $ 4,831,717     $ 6,208,545  

 

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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,
2020
    June 30,
2019
 
             
REVENUE   $ 329,070     $ 177,543  
                 
COST OF REVENUE     7,026       66,215  
                 
GROSS PROFIT     322,044       111,328  
                 
OPERATING EXPENSES:                
Selling and marketing     76,668       157,440  
General and administrative                
Payroll and related benefits     479,261       404,405  
Professional fees     403,300       472,638  
Other general and administrative     404,176       385,428  
                 
Total Operating Expenses     1,363,405       1,419,911  
                 
LOSS FROM OPERATIONS     (1,041,361 )     (1,308,583 )
                 
OTHER INCOME (EXPENSE):                
Interest income     27,571       1,768  
Other income     25,204       -  
Other expenses     (721 )     (114 )
Foreign currency transaction gain (loss)     (3,525 )     3,764  
Loss on equity method investment     (18,320 )     (23,776 )
                 
Total Other Income (Expense)     30,209       (18,358 )
                 
LOSS BEFORE INCOME TAXES     (1,011,152 )     (1,326,941 )
                 
INCOME TAXES     -       -  
                 
NET LOSS   $ (1,011,152 )   $ (1,326,941 )
                 
COMPREHENSIVE LOSS:                
NET LOSS     (1,011,152 )     (1,326,941 )
OTHER COMPREHENSIVE LOSS                
Foreign currency translation adjustments     (23,138 )     (20,588 )
COMPREHENSIVE LOSS   $ (1,034,290 )   $ (1,347,529 )
                 
NET LOSS PER COMMON SHARE                
Basic and diluted   $ (0.05 )   $ (0.07 )
                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
Basic and diluted     20,070,000       19,955,635  

 

3

 

 

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,
2020
    June 30,
2019
 
             
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net loss   $ (1,011,152 )   $ (1,326,941 )
Adjustments to reconcile net loss from operations to net cash used in operating activities:                
Depreciation expense     10,338       10,315  
Loss on equity method investment     18,320       23,776  
Noncash lease expense     145,246       150,011  
Loss on acquisition     721       -  
Changes in operating assets and liabilities:                
Operating lease liability     (75,003 )     (157,631 )
Accounts Receivable     1,018       -  
Security deposit     35,194       (1,107 )
Prepaid expenses and other current assets     14,733       (104,903 )
Deferred revenue     (44,485 )     (34,363 )
Salary payable     (12,456 )     (73,471 )
Accrued liabilities and other payables     (183,636 )     (162,144 )
                 
NET CASH USED IN OPERATING ACTIVITIES     (1,101,162 )     (1,676,458 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Collection of loan to third party     78,002       -  
Cash proceeds from acquisition     279       -  
Purchase of property and equipment     (10,636 )     (16,885 )
Loan to employee     -       (44,243 )
Payment in equity method investment     (809,881 )     (87,762 )
                 
NET CASH USED IN INVESTING ACTIVITIES     (742,236 )     (148,890 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Cash proceeds from long-term loan     41,250       -  
Proceeds from issuance of stocks     -       6,851,401  
Repayments to related parties     -       (168,728 )
                 
NET CASH PROVIDED BY FINANCING ACTIVITIES     41,250       6,682,673  
                 
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS     (10,536 )     (16,355 )
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     (1,812,684 )     4,840,970  
                 
CASH AND CASH EQUIVALENTS - beginning of period     3,642,521       93,625  
                 
CASH AND CASH EQUIVALENTS - end of period   $ 1,829,837     $ 4,934,595  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                
Cash paid for:                
Interest   $ -     $ -  
Income taxes   $ -     $ -  
                 
NON-CASH INVESTING AND FINANCING ACTIVITIES:                
Remeasurement of the lease liabilities and right-of-use assets due to lease modification   $ 29,904     $ -  
Proceeds from issuance of stocks deposited in escrow   $ -     $ 500,000  
Consideration of acquisition payable to related party   $ 1,000     $ -  

 

4 

 

 

Exhibits

  

Exhibit No.   Description
     
99.1   Press release.

  

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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: October 15, 2020  

 

  MMtec, Inc.
     
  By: /s/ Xiangdong Wen
    Xiangdong Wen, Chief Executive Officer

 

 

 

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