Item 8.01 Other Events
Due to the outbreak of coronavirus disease 2019 ("COVID-19") we are filing this
Current Report on Form 8-K to avail ourselves of an extension to file our Annual
Report on Form 10-K for the year ended
Our company's operations and business have experienced disruption due to the
unprecedented conditions surrounding the COVID-19 pandemic spreading throughout
In
Specifically, the Company's management and accounting personnel have experienced significant challenges in accessing accounting records while transitioning to a remote-access work environment. Such inaccessibility materially delayed the preparation of financial statements, including coordination efforts with the Company's auditor in connection with the audit of such financial statements. Additionally, management was required to reallocate resources and time to other non-accounting business and operational matters to ensure business continuity which resulted in further delays in the timely preparation of the Company's financial statements.
As such, the Company will be relying upon the 45-day grace period provided by
the Order to delay filing of its Annual Report. The Company will file its Annual
Report by no later than
The Company will include the following risk factor in the Annual Report:
We face business disruption and related risks resulting from the recent outbreak of the novel coronavirus 2019 ("COVID-19"), which could have a material adverse effect on our business and results of operations.
In
The outbreak of COVID-19 may cause disruptions to the Company's business and operational plans. These disruptions may include disruptions resulting from (i) shortages of employees, (ii) unavailability of contractors and subcontractors, (iii) interruption of supplies from third parties upon which the Company relies, (iv) restrictions that governments impose to address the COVID-19 pandemic, and (v) restrictions that the Company and its contractors and subcontractors impose to ensure the safety of employees and others. Further, it is presently not possible to predict the extent or durations of these disruptions. These disruptions may have a material adverse effect on the Company's business, financial condition and results of operations. Such adverse effect could be rapid and unexpected.
The outbreak and subsequent measures intended to limit the pandemic contributed
to significant declines and volatility in financial markets. The pandemic
adversely impacted global commercial activity, including significantly reducing
worldwide demand for crude oil. Crude oil prices have also been severely
impacted by increased global supply due to disagreements over production
restrictions between the
The full extent of the impact of COVID-19 on the Company's operations and future financial performance is currently unknown. It will depend on future developments that are uncertain and unpredictable, including the duration and spread of COVID-19, its continued impact on financial markets on a macro-scale and any new information that may emerge concerning the severity of the virus. These uncertainties may persist beyond when it is determined how to contain the virus or treat its impact. The outbreak presents uncertainty and risk with respect to Company's business, financial condition and results of operations. The Company's business and operations are particularly sensitive to a reduction in the demand for and prices of commodities, including crude oil which is closely linked to the Company's financial condition. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on the Company is not known at this time.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this Current Report on Form 8-K may be deemed
to be forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. This information includes, without
limitation, statements concerning the Company's future business and financial
position and results of operations, and the ability to file the Annual Report on
or prior to
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