UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

July 15, 2021
Date of Report (Date of earliest event reported)

 

FINGERMOTION, INC.
(Exact name of registrant as specified in its charter)

 

Delaware 000-55477 20-0077155
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

 

1460 Broadway
New York, New York
 
10036
(Address of principal executive offices)   (Zip Code)

 

(347) 349-5339
Registrant’s telephone number, including area code

 

Not applicable.
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[     ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[     ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[     ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[     ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol (s) Name of each exchange on which registered
N/A N/A N/A

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).

 

Emerging growth company  ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

 
 
 
 

SECTION 2 – FINANCIAL INFORMATION

Item 2.02 Results of Operations and Financial Condition.

 

On July 15, 2021, FingerMotion, Inc. (the “Company”) issued a news release to report its financial results for the first quarter ended May 31, 2021. The information regarding the financial results for the first fiscal quarter ended May 31, 2021 of the Company contained in Item 7.01 below is responsive to this Item 2.02 and is incorporated into this Item 2.02 by reference.

The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.

SECTION 7 – REGULATION FD

Item 7.01 Regulation FD Disclosure

 

On July 15, 2021, the Company issued a news release to report its financial results for the first quarter ended May 31, 2021. To review the full financial results, please view the Company’s recent Form 10-Q filing at www.sec.gov/edgar/search, which should be read in connection with this news release.

 

Q1 2022 Financial Summary (results expressed in US$ unless otherwise indicated):

  • Reported record quarterly revenue of $6.00 million (includes SMS & MMS, Telecommunications Products & Services and Big Data businesses);
  • Reported quarterly growth in SMS & MMS business revenue of $1.81 million or 77% compared to Q1 2021;
  • Reported quarterly growth in Telecommunications Products & Services business revenue of $1.34 million or 341% compared to Q1 2021;
  • Reported revenues of $98,715 or 198% in Quarter over Quarter (Q4 2021 over Q1 2022) growth in Big Data;
  • Reported quarterly cost of revenue of $5.38 million which was an increase of $2.93 million or 120% compared to Q1 2021;
  • Reported quarterly loss of $909,506 which was an increase of $0.33 million or 57% compared to Q1 2021;
  • Basic and Diluted loss per share of $0.02;
  • At May 31, 2021, FingerMotion had $789,752 in cash, a working capital surplus of $2,352,502 and a positive shareholders equity of $1,455,643;
  • Total Assets were $8.61 million, Total Current Liabilities were $6.05 million and Total Liabilities were $7.16 million; and
  • 38,995,160 common shares were issued and outstanding as of May 31, 2021.

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Strong growth continued in both the Telecommunications Products & Services (mobile recharge platform) and the SMS & MMS texting service.

 

“The first quarter generated $6.00 million in revenue and represented the fourth consecutive quarter of record revenue. If the current trajectory continues, revenue may exceed US$24 million for FYE 2022,” stated Martin Shen, CEO of FingerMotion. “Growth continues to be fueled by an expansion of subscribers in new regions along with larger purchases of SMS from our corporate clientele. This is the second consecutive quarter of Big Data revenues and we expect it to continue and eventually outpace our existing revenue streams.”

 

General and administrative expenses increased by $437,708 or 59% during the quarter which was primarily attributable to increased consulting and staff salaries that are a consequence of building out our 3 lines of business simultaneously. Research and development expenses increase to $135,429 during the quarter which was up 31% due to high data access and usage fees charged by the telecom companies.

 

“We are pleased to announce that the Company completed the 1st stage of prototyping of its insurtech model and expects completion by the end of this calendar year,” stated Martin Shen.

 

A copy of the news release is attached as Exhibit 99.1 hereto.

 

The information in this Item 7.01 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit

Description

99.1 News Release dated July 15, 2021.

 

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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.

 

 

FINGERMOTION, INC.

 

DATE:  July 15, 2021 By: /s/ Martin J. Shen
Martin J. Shen
CEO

   

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