ITEM 8.01. OTHER EVENTS.
Inability to file Quarterly Report on Form 10-Q for the quarter ended
The Company is unable to file the 10-Q by its original due date as a result of
disruptions caused by the COVID-19 pandemic. All of the Company's operating
subsidiaries, employees, facilities and customers are located in
Below is a risk factor regarding COVID -19 that the Company's stockholders and
potential investors should consider with respect to the quarter ended
Our business operations have been and may continue to be materially and adversely affected by the outbreak of the coronavirus (COVID-19).
An outbreak of respiratory illness caused by COVID-19 emerged in late 2019 and
has spread within the PRC and globally. The coronavirus is considered to be
highly contagious and poses a serious public health threat. The
Most of our revenues and workforce are concentrated in
? customers take longer time to make payments, which subjects us to increased credit exposures; ? in terms of our offline business, quarantines impeded our ability to recruit new clients and made us postpone providing services to existing clients most of which were engaged last year. Travel restrictions limited clients' ability to visit and meet us in person. Although most communication could be achieved via video calls, this form of remote communication may be less effective in building trust and engaging clients. ? as to our e-commerce platform, the update of products information online and the delivery of goods may be delayed due to operation interruptions experienced by manufacturers. The imported goods on our platform will face more challenges as the pandemic continues outsideChina ; and, ? the operations of our distributors have been and could continue to be negatively impacted by the epidemic, which may in turn adversely impact our distribution channel or result in loss of customers or disruption to our operations.
The above adverse impacts might be mitigated as quarantines across
We expect our results of operations, revenues and financial condition for the fiscal year 2020 to be adversely affected by the coronavirus pandemic. If this outbreak persists, commercial activities throughout the world could be curtailed with decreased consumer spending, business operation disruptions, interrupted supply chain, difficulties in travel, and reduced workforces. The duration and intensity of disruptions resulting from the coronavirus outbreak is uncertain. It is unclear as to when the outbreak will be contained, and we also cannot predict if the impact will be short-lived or long-lasting. The extent to which the coronavirus impacts our financial results will depend on its future developments. If the outbreak of the coronavirus is not effectively controlled in a short period of time, our business operation and financial condition may be materially and adversely affected as a result of any slowdown in economic growth, operation disruptions or other factors that we cannot predict.
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Forward-Looking Statements
Statements in this Current Report on Form 8-K are "forward-looking statements" as the term is defined under applicable securities laws. These statements include the anticipated timing of the filing of Company's 10-Q under the Exchange Act, the expected impact of the COVID-19 outbreak on the Company's financial reporting capabilities and its operations generally, and the potential adverse effects of such pandemic on the overall business environment. These and other forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements. Such risks and uncertainties are, in many instances, beyond the Company's control. Forward-looking statements, which are presented as of the date of this filing, will not be updated to reflect events or circumstances after the date of this report except as required by law.
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