UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

  

 

FORM 6-K

  

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of October 2020

  

MMTEC, INC.

(Translation of registrant’s name into English)

  

AF, 16/F, Block B, Jiacheng Plaza, 18 Xiaguangli, Chaoyang District, Beijing, 100027

People’s Republic of China.

Tel: +86 10 5617 2312

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒            Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ☐           No ☒

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________.

 

 

 

EXPLANATORY NOTE

 

This Report of Foreign Private Issuer on Form 6-K filed by MMtec, Inc. (together with our subsidiaries, unless the context indicates otherwise, “we,” “us,” “our,” or the “Company”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or the Company’s future financial performance. The Company has attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “expects,” “can,” “continue,” “could,” “estimates,” “intends,” “may,” “plans,” “potential,” “predict,” “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements. The information in this Report on Form 6-K is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this Form 6-K is filed, and the Company does not intend to update any of the forward-looking statements after the date this Report on Form 6-K is filed to confirm these statements to actual results, unless required by law.

 

 

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL DATA

 

MMTEC, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS 

(IN U.S. DOLLARS)

 

		As of
		June 30, 2020				December 31, 2019
		(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	1,829,837			$	3,642,521
Accounts receivable, net			15,011				16,029
Other receivable			-				78,624
Loan to employee			169,503				172,013
Security deposits - current			10,875				46,512
Prepaid expenses and other current assets			376,701				392,011
Total Current Assets			2,401,927				4,347,710
NON-CURRENT ASSETS:
Security deposit - noncurrent			604,047				605,588
Property and equipment, net			130,385				132,016
Operating lease right-of-use asset			767,159				979,885
Long-term investment			928,199				143,346
Total Non-current Assets			2,429,790				1,860,835
Total Assets		$	4,831,717			$	6,208,545
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Deferred revenue		$	18,137			$	63,246
Salary payable			160,162				174,741
Accrued liabilities and other payables			39,200				222,152
Due to related parties			8,000				6,030
Operating lease liabilities - current			379,066				339,330
Total Current Liabilities			604,565				805,499
NON-CURRENT LIABILITIES:
Operating lease liabilities - noncurrent			465,530				648,334
Loan payable			41,250				-
Total Non-current Liabilities			506,780				648,334
Total Liabilities			1,111,345				1,453,833
SHAREHOLDERS' EQUITY:
Common shares ($0.001 par value; 500,000,000 shares authorized; 56,070,000 shares issued and 20,070,000 shares outstanding at June 30,2020 and December 31, 2019)			56,070				56,070
Additional paid-in capital			11,229,289				11,229,339
Less: treasury stock, at cost;
(36,000,000 shares at June 30, 2020 and December 31, 2019)			(36,000	)			(36,000	)
Accumulated deficit			(7,386,455	)			(6,375,303	)
Accumulated other comprehensive loss			(142,532	)			(119,394	)
Total Shareholders' Equity			3,720,372				4,754,712
Total Liabilities and Shareholders' Equity		$	4,831,717			$	6,208,545

 

 

MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(IN U.S. DOLLARS)

(UNAUDITED)

                 

		For the Six Months Ended				For the Six Months Ended
		June 30, 2020				June 30, 2019
REVENUE		$	329,070			$	177,543
COST OF REVENUE			7,026				66,215
GROSS PROFIT			322,044				111,328
OPERATING EXPENSES:
Selling and marketing			76,668				157,440
General and administrative
Payroll and related benefits			479,261				404,405
Professional fees			403,300				472,638
Other general and administrative			404,176				385,428
Total Operating Expenses			1,363,405				1,419,911
LOSS FROM OPERATIONS			(1,041,361	)			(1,308,583	)
OTHER INCOME (EXPENSE):
Interest income			27,571				1,768
Other income			25,204				-
Other expenses			(721	)			(114	)
Foreign currency transaction gain (loss)			(3,525	)			3,764
Loss on equity method investment			(18,320	)			(23,776	)
Total Other Income (Expense)			30,209				(18,358	)
LOSS BEFORE INCOME TAXES			(1,011,152	)			(1,326,941	)
INCOME TAXES			-				-
NET LOSS		$	(1,011,152	)		$	(1,326,941	)
COMPREHENSIVE LOSS:
NET LOSS			(1,011,152	)			(1,326,941	)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustments			(23,138	)			(20,588	)
COMPREHENSIVE LOSS		$	(1,034,290	)		$	(1,347,529	)
NET LOSS PER COMMON SHARE
Basic and diluted		$	(0.05	)		$	(0.07	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic and diluted			20,070,000				19,955,635

 

 

MMTEC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN U.S. DOLLARS)

(UNAUDITED)

 

		For the Six Months Ended				For the Six Months Ended
		June 30, 2020				June 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(1,011,152	)		$	(1,326,941	)
Adjustments to reconcile net loss from operations to net cash used in operating activities:
Depreciation expense			10,338				10,315
Loss on equity method investment			18,320				23,776
Noncash lease expense			145,246				150,011
Loss on acquisition			721				-
Changes in operating assets and liabilities:
Operating lease liability			(75,003	)			(157,631	)
Accounts Receivable			1,018				-
Security deposit			35,194				(1,107	)
Prepaid expenses and other current assets			14,733				(104,903	)
Deferred revenue			(44,485	)			(34,363	)
Salary payable			(12,456	)			(73,471	)
Accrued liabilities and other payables			(183,636	)			(162,144	)
NET CASH USED IN OPERATING ACTIVITIES			(1,101,162	)			(1,676,458	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Collection of loan to third party			78,002				-
Cash proceeds from acquisition			279				-
Purchase of property and equipment			(10,636	)			(16,885	)
Loan to employee			-				(44,243	)
Payment in equity method investment			(809,881	)			(87,762	)
NET CASH USED IN INVESTING ACTIVITIES			(742,236	)			(148,890	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash proceeds from long-term loan			41,250				-
Proceeds from issuance of stocks			-				6,851,401
Repayments to related parties			-				(168,728	)
NET CASH PROVIDED BY FINANCING ACTIVITIES			41,250				6,682,673
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS			(10,536	)			(16,355	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(1,812,684	)			4,840,970
CASH AND CASH EQUIVALENTS - beginning of period			3,642,521				93,625
CASH AND CASH EQUIVALENTS - end of period		$	1,829,837			$	4,934,595
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
Interest		$	-			$	-
Income taxes		$	-			$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Remeasurement of the lease liabilities and right-of-use assets due to lease modification		$	29,904			$	-
Proceeds from issuance of stocks deposited in escrow		$	-			$	500,000
Consideration of acquisition payable to related party		$	1,000			$	-

 

 

Exhibits

  

Exhibit No.		Description
99.1		Press release.

  

 

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.

 

Date: October 15, 2020  

 

	MMtec, Inc.
	By:	/s/ Xiangdong Wen
		Xiangdong Wen, Chief Executive Officer

 

 

 

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