Item 8.01 Other Events.
Lilis Energy, Inc. (the “Company”) is providing the following update on the filing of its Form 10-K for the fiscal year ended December 31, 2019 (the “Annual Report”). In accordance with the U.S. Securities and Exchange Commission’s (the “SEC”) Order dated March 4, 2020 (Release No. 34-88318) (the “Order”), the Company will delay the filing of its Annual Report.
Due to the outbreak and spread of the COVID-19 coronavirus, the Company’s employees are working remotely, which has resulted in a delay in the preparation and completion of the Company’s financial statements for the fiscal year ended December 31, 2019 to be included in the Annual Report. The COVID-19 coronavirus has also caused disruptions in communications and interactions between the Company and its professional advisors.
Based on the foregoing, the Company expects to file its Annual Report no later than May 14, 2020, which is 45 days after the original due date of its Annual Report.
In addition, the Company is supplementing the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and its subsequent Quarterly Reports on Form 10-Q with the following risk factor, as may be updated to reflect subsequent events:
The Company may be adversely affected by the recent coronavirus outbreak.
The spread of the COVID-19 coronavirus could cause severe disruptions in the worldwide economy, including the global demand for oil and natural gas, which could in turn disrupt our business and operations. Moreover, since the beginning of January 2020, the COVID-19 coronavirus outbreak has caused significant disruption in the financial markets both globally and in the United States. The continued spread of the COVID-19 coronavirus may result in a significant decrease in business and/or cause our oil and natural gas purchasers to be unable to meet existing payment or other obligations to us, particularly in the event of a spread of the COVID-19 coronavirus in our market areas. The continued spread of the COVID-19 coronavirus could also negatively impact the availability of our key personnel necessary to conduct our business. Such a spread could also negatively impact the business and operations of third party service providers who perform critical services for our business. If the COVID-19 coronavirus continues to spread or the response to contain the COVID-19 coronavirus is unsuccessful, we could experience a material adverse effect on our business, financial condition, and results of operations.
Forward-Looking Statements:
This Current Report on Form 8-K contains forward-looking statements within the meaning of the federal securities laws. These statements may include, but are not limited to, statements related to the Company’s expectations regarding the potential impact of the COVID-19 coronavirus outbreak and other non-historical statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks identified in this Current Report on Form 8-K and in the Company’s Annual Report on Form 10-K and its other filings with the SEC. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this Current Report on Form 8-K are made as of the date hereof, and the Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.