Item
8.01. Other Events.
Reliance
on SEC Relief from Filing Requirements
The
impact of the novel coronavirus (“COVID-19”) pandemic will cause Vislink Technologies, Inc. (the “Company”,
“we”, “us” or “our”) to delay the filing of its Quarterly Report on Form 10-Q for the quarter
ended March 31, 2020 (the “Form 10-Q”), which was originally due to be filed with the U.S. Securities and Exchange
Commission (“SEC”) on May 15, 2020. The Company will be relying on the SEC’s “Order under Section 36 of
the Securities Exchange Act of 1934 Modifying Exemptions From the Reporting and Proxy Delivery Requirements for Public Companies”
dated March 25, 2020 (Release No. 34-88465) (the “Order”), which provides conditional relief to public companies that
are unable to timely comply with a filing deadline due to circumstances related to the COVID-19 pandemic.
As
a result of COVID-19, the Company has been following the recommendations of local health authorities to minimize exposure risk
for its employees for the past several weeks, including the temporary closures of its offices and having employees work remotely
to the extent possible, which has adversely affected employee efficiency and disrupted the Company’s business operations.
In particular, these changes have affected the collaboration of our financial reporting team and the accessibility of the Company’s
books and records, resulting in delays in the review, preparation and completion of its financial statements for the first quarter
of 2020 due to guidance from authorities for employees to follow work from home procedures.
Accordingly, the Company does not believe it will be able to complete certain internal procedures upon receipt of its auditors’
review that may be required to be filed on its Form 10-Q prior to the original filing deadline. Based on the foregoing, the Company
expects to file its Form 10-Q no later than June 29, 2020 (45 days after the original filing deadline of the Form 10-Q, as allowed
by the Order).
Risk
Factor
As
required by the Order, the Company is including the following risk factor in this Current Report on Form 8-K:
We
face risks related to health epidemics and other outbreaks, which could significantly disrupt our operations and could have a
material adverse impact on us, and the recent COVID-19 outbreak could materially and adversely affect our business.
The
COVID-19 health emergency has significantly impacted worldwide economic conditions and has asserted its adverse effect on our
operations and business. While the Company’s facilities and locations continue to operate, we took actions to safeguard
the best interest of our employees, customers, suppliers, and our professionals and advisors are following similar protocols and
procedures. We are following governmental guidelines considering imposing mandatory closures, work-from-home orders, social distancing
protocols, and seek voluntary facility closures or impose other restrictions. These actions may cause the Company’s ability
to adequately staff, maintain our operations, impair our ability to sustain enough financial liquidity, and may negatively impact
our financial results. We are experiencing disruptions in our business as we implement modifications to preserve adequate resources
and ensure that our Company can continue to operate during this uncertain time. Individual states have issued executive orders
requiring all workers to remain at home unless their work is critical, essential, or life-sustaining. We believe that, based on
the various standards published to date, the work our employees are performing is vital to sustaining a level of operations while
maintaining governmental safety precautions for employees at our facilities. The Company has reduced hiring activities, adjusted
pay programs, and limited discretionary spending. We have reduced anticipated expenditures on capital investment projects.
The
future financial results of the Company may be affected by the COVID-19 pandemic. Our suppliers may face limitations of their
manufacturing capabilities, curtailing our sales orders on the products we sell, or the Company may face detriments to meet delivery
requirements and commitments. The ability of our customers to make timely remittances can be affected too. We will continue to
monitor the situation actively. We may take further actions that alter our business operations as may be required by federal,
state, or local authorities or that we determine are in the best interests of our employees, customers, suppliers, and shareholders.
While we are unable to determine or predict the nature, duration or scope of the overall impact the COVID-19 pandemic will have
on our business, results of operations, liquidity or capital resources, we believe that it is important to share where our Company
stands today, how our response to COVID-19 is progressing and how our operations and financial condition may change as the fight
against COVID-19 progresses.
Cautionary
Statement Regarding Forward- Looking Statements
Certain
statements in this Current Report on Form 8-K are forward-looking within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,”
“forecast,” “estimate,” “expect,” “intend,” “likely,” “may,”
“plan,” “potential,” “predict,” “opportunity” and “should,” among
others. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-
looking statements. The Company does not undertake an obligation to update or revise any forward- looking statements. These statements
include the anticipated timing of the filing of the Form 10-Q with the SEC and the expected impact of the COVID-19 virus outbreak
on the Company’s financial reporting capabilities. The forward-looking statements contained in this Current Report on Form
8-K speak only as of the date of such report and the Company undertakes no obligation to publicly update any forward-looking statements
to reflect changes in information, events or circumstances after the date of such report, unless required by law.