MMTec, Inc. — Regulatory Filings 2021

Sep 30, 2021

6-K 1 ea148073-6k_mmtecinc.htm REPORT OF FOREIGN PRIVATE ISSUER

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 6-K

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REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2021

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-__.

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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, 2021 | December 31, 2020 | | |
| --- | --- | --- | --- | --- |
| ASSETS | (UNAUDITED) | | | |
| CURRENT ASSETS: | | | | |
| Cash and cash equivalents | $ 14,603,601 | $ | 1,425,926 | |
| Accounts receivable, net | 170,758 | | 46,390 | |
| Loan receivable - related party | 93,762 | | 92,831 | |
| Security deposits - current portion | - | | 500,000 | |
| Prepaid expenses and other current assets | 171,736 | | 187,994 | |
| Total Current Assets | 15,039,857 | | 2,253,141 | |
| NON-CURRENT ASSETS: | | | | |
| Security deposits - non-current portion | 114,023 | | 112,891 | |
| Property and equipment, net | 98,387 | | 102,882 | |
| Operating lease right-of-use assets | 500,216 | | 662,609 | |
| Long-term investment | - | | 578,749 | |
| Total Non-current Assets | 712,626 | | 1,457,131 | |
| Total Assets | $ 15,752,483 | $ | 3,710,272 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | |
| CURRENT LIABILITIES: | | | | |
| Salary payable | 126,427 | | 131,445 | |
| Accrued liabilities and other payables | 98,316 | | 94,799 | |
| Due to related parties | 720 | | 1,433 | |
| Operating lease liabilities - current | 416,133 | | 430,352 | |
| Total Current Liabilities | 641,596 | | 658,029 | |
| NON-CURRENT LIABILITIES: | | | | |
| Loan Payable | - | | 41,250 | |
| Operating lease liabilities - non-current | 121,776 | | 315,190 | |
| Total Non-current Liabilities | 121,776 | | 356,440 | |
| Total Liabilities | 763,372 | | 1,014,469 | |
| SHAREHOLDERS’ EQUITY: | | | | |
| Common shares ($0.001 par value; 500,000,000 shares authorized; 25,120,000 shares issued and
outstanding at June 30, 2021, and 20,820,000 shares issued and outstanding at December 31, 2020) | 25,120 | | 20,820 | |
| Additional paid-in capital | 26,866,489 | | 12,233,589 | |
| Accumulated deficit | (11,924,511 | ) | (9,556,899 | ) |
| Accumulated other comprehensive income (loss) | 22,013 | | (1,707 | ) |
| Total Shareholders’ Equity | 14,989,111 | | 2,695,803 | |
| Total Liabilities and Shareholders’ Equity | $ 15,752,483 | $ | 3,710,272 | |

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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 — June
30, 2021 | | For the Six Months Ended — June
30, 2020 | |
| --- | --- | --- | --- | --- |
| REVENUE | $ 507,048 | | $ 329,070 | |
| COST OF REVENUE | 66,908 | | 7,026 | |
| GROSS PROFIT | 440,140 | | 322,044 | |
| OPERATING EXPENSES: | | | | |
| Selling and marketing | 97,146 | | 76,668 | |
| General and administrative | | | | |
| Payroll and related benefits | 669,299 | | 479,261 | |
| Professional fees | 837,457 | | 403,300 | |
| Other general and administrative expenses | 671,500 | | 404,176 | |
| Total Operating Expenses | 2,275,402 | | 1,363,405 | |
| LOSS FROM OPERATIONS | (1,835,262 | ) | (1,041,361 | ) |
| OTHER INCOME (EXPENSE): | | | | |
| Interest income | 526 | | 27,571 | |
| Other income | 66,940 | | 24,483 | |
| Foreign currency transaction loss | (16,319 | ) | (3,525 | ) |
| Impairment loss on long-term investment | (583,497 | ) | - | |
| Loss on equity method investment | - | | (18,320 | ) |
| Total Other Income (Expense) | (532,350 | ) | 30,209 | |
| LOSS BEFORE INCOME TAXES | (2,367,612 | ) | (1,011,152 | ) |
| INCOME TAXES | - | | - | |
| NET LOSS | $ (2,367,612 | ) | $ (1,011,152 | ) |
| COMPREHENSIVE LOSS: | | | | |
| NET LOSS | (2,367,612 | ) | (1,011,152 | ) |
| OTHER COMPREHENSIVE INCOME (LOSS) | | | | |
| Foreign currency translation adjustments | 23,720 | | (23,138 | ) |
| TOTAL COMPREHENSIVE LOSS | $ (2,343,892 | ) | $ (1,034,290 | ) |
| NET LOSS PER COMMON SHARE | | | | |
| Basic and diluted | $ (0.10 | ) | $ (0.05 | ) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | | | | |
| Basic and diluted | 23,860,884 | | 20,070,000 | |

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MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN U.S. DOLLARS)

(UNAUDITED)

| | For the Six Months Ended — June
30, 2021 | | For the Six Months Ended — June
30, 2020 | |
| --- | --- | --- | --- | --- |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | |
| Net loss | $ (2,367,612 | ) | $ (1,011,152 | ) |
| Adjustments to reconcile net loss from operations to net cash used in operating activities: | | | | |
| Depreciation expense | 14,322 | | 10,338 | |
| Impairment loss on long-term investment | 583,497 | | - | |
| Loss on equity method investment | - | | 18,320 | |
| Noncash lease expense | 168,733 | | 145,246 | |
| Gain on extinguishment of debt | (41,548 | ) | - | |
| Foreign currency transaction loss | 35,464 | | - | |
| Other noncash expense | - | | 721 | |
| Changes in operating assets and liabilities: | | | | |
| Operating lease liabilities | (214,724 | ) | (75,003 | ) |
| Accounts receivable | (124,368 | ) | 1,018 | |
| Security deposits | - | | 35,194 | |
| Prepaid expenses and other current assets | 516,649 | | 14,733 | |
| Deferred revenue | - | | (44,485 | ) |
| Salary payable | (5,695 | ) | (12,456 | ) |
| Accrued liabilities and other payables | 3,808 | | (183,636 | ) |
| NET CASH USED IN OPERATING ACTIVITIES | (1,431,474 | ) | (1,101,162 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | |
| Collection of loan to related party | - | | 78,002 | |
| Cash proceeds from acquisition | - | | 279 | |
| Purchase of property and equipment | (8,806 | ) | (10,636 | ) |
| Purchase of long-term investment | - | | (809,881 | ) |
| NET CASH USED IN INVESTING ACTIVITIES | (8,806 | ) | (742,236 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | |
| Proceeds from long-term loan | - | | 41,250 | |
| Proceeds from issuance of stocks | 14,637,200 | | - | |
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 14,637,200 | | 41,250 | |
| EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | (19,245 | ) | (10,536 | ) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 13,177,675 | | (1,812,684 | ) |
| CASH AND CASH EQUIVALENTS - beginning of period | 1,425,926 | | 3,642,521 | |
| CASH AND CASH EQUIVALENTS - end of period | $ 14,603,601 | | $ 1,829,837 | |
| 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 | |
| Consideration of acquisition payable to related party | $ - | | $ 1,000 | |

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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: September 30, 2021

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

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