ITEM 8.01. OTHER EVENTS.
Inability to file Quarterly Report on Form 10-Q for the quarter ended
The Company is unable to file the 10-Q by its original due date as a result of
disruptions caused by the COVID-19 pandemic. All of the Company's operating
subsidiaries, employees, facilities and customers are located in
Below is a risk factor regarding COVID -19 that the Company's stockholders and
potential investors should consider with respect to the quarter ended
Our business operations have been and may continue to be materially and adversely affected by the outbreak of the coronavirus (COVID-19).
An outbreak of respiratory illness caused by COVID-19 emerged in late 2019 and
has spread within the PRC and globally. The coronavirus is considered to be
highly contagious and poses a serious public health threat. The
Any outbreak of health epidemics or other outbreaks of diseases in the PRC or elsewhere in the world may materially and adversely affect the global economy, our markets and our business. We are a start-up e-commerce company with both an online platform and offline franchise stores. Since late January, the COVID-19 pandemic has significantly reduced customer visits and spending in our offline stores and delayed the full launch and normal operations of our e-commerce platform. Although the Chinese government has lifted quarantines and lockdowns since late March, various restrictions and the fear of new outbreaks continue to limit the recovery of our business and customer demand for our products and services.
The duration and intensity of disruptions resulting from the coronavirus outbreak is uncertain. It is unclear as to when the outbreak will be fully contained, and we also cannot predict if the impact will be short-lived or long-lasting. The extent to which the coronavirus impacts our financial results will depend on its future developments. If the outbreak of the coronavirus persists, our business operation and financial condition may be further materially and adversely affected as a result of economic slowdowns, operation disruptions or other factors that we cannot predict.
*** Forward-Looking Statements
Statements in this Current Report on Form 8-K are "forward-looking statements" as the term is defined under applicable securities laws. These statements include the anticipated timing of the filing of Company's 10-Q under the Exchange Act, the expected impact of the COVID-19 outbreak on the Company's financial reporting capabilities and its operations generally, and the potential adverse effects of such pandemic on the overall business environment. These and other forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements. Such risks and uncertainties are, in many instances, beyond the Company's control. Forward-looking statements, which are presented as of the date of this filing, will not be updated to reflect events or circumstances after the date of this report except as required by law.
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