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.
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