Item 7.01. Regulation FD Disclosure
As 12 ReTech closely monitors the impact of the COVID-19 health emergency, our
top priority remains the health and safety of our employees, customers,
partners, and communities. As we have previously reported, we have offices
located in Hong Kong, Tokyo, New York, California, Utah and Arizona Our
employees are home isolating including our CEO and CFO. Our CEO and CFO have not
been able to travel to the United States during the COVID-19 pandemic.
As previously indicated, due to the various acquisitions transacted during 2019,
the Company needs additional services from outside professionals for audits of 2
years of financial results of our acquisitions and an independent valuation for
purchase accounting regulations.
Our senior staff and outside service providers continue to be severely impacted
by the disruptions to our operations and their operations. Our external
accountants in both Hong Kong and Tokyo, have limited availability due to the
business disruptions caused by COVID-19 pandemic. Without their input we cannot
complete the consolidated financials required for our filings.
In March 2020 the U.S. Government issued its "lock down and shelter at home
orders" as did many other nations. This caused the temporary closing of
virtually all of our operations, bringing our revenue to nearly zero during this
time. This precipitous drop in revenue has negatively impacted our cash flow and
prevented us from completing our annual filing Form 10-K for the period ended
December 31, 2019, which we have now filed for an extension to May 29, 2020 for
its completion. These same issues have impacted our ability to complete our Form
10-Q for the period ended March 31, 2020.
As a result, the efforts to complete this filing has been strongly impeded by
disruptions to travel, transportation and limited access to facilities, support
staff and professional advisors The Company currently expects to file its 2019
Form 10-Q on or before June 26, 2020, the new prescribed deadline from the SEC
Conditional Regulatory Relief due to COVID-19.
With the acquisitions that we made in 2019 our operations are more heavily
dependent on travel related revenues and the sourcing of products from Asia and
as such we can expect to have a reduction in our actual revenues vs management
projections for revenues during the 1st quarter of our fiscal 2020 and perhaps
beyond.
As conditions evolve, the Company will act to protect the health and safety of
our employees, customers, and partners during this difficult period. We will
continue to provide updates on our progress during this pandemic both in our
operations and our delayed filings. We deeply appreciate the commitment of the
people and organizations that have united to address this health emergency; our
thoughts are with all of those affected across the world.
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