Business Context and Reporting Period
This Form 6-K is filed by China Internet Nationwide Financial Services Inc. (the "Company"), a foreign private issuer, for the month of January 2020. The filing was submitted on January 30, 2020, to disclose a material event regarding the Company's listing status on The Nasdaq Stock Market.
Key Financial Metrics
The filing does not provide current revenue, profit, cash flow, or margin data for the reporting period. The only financial metric disclosed is stockholders' equity, which was reported as $9,490,313 in the Company's last Form 6-K for the period ended June 30, 2019. The filing does not provide updated debt or liquidity figures.
Material Changes
On January 28, 2020, the Company received written notification from The Nasdaq Stock Market LLC that it no longer meets Listing Rule 5450(v)(1)(A). This rule requires a minimum of $10,000,000 in stockholders' equity for continued listing. The Company's reported equity of $9,490,313 falls below this threshold.
Outlook, Risks, and Contingencies
- Compliance Timeline: Under Nasdaq rules, the Company has 45 calendar days (until March 13, 2020) to submit a plan to regain compliance.
- Extension Possibility: If the compliance plan is accepted, the Company may be granted an extension of up to 180 calendar days from the date of the notification letter to evidence compliance.
- Risk of Delisting: Failure to submit an acceptable plan or regain compliance within the allotted timeframes poses a risk of delisting from The Nasdaq Stock Market.
Investor Verification Checklist
- Verify the Company's current stockholders' equity as of the most recent financial statement to confirm the deficit against the $10,000,000 Nasdaq requirement.
- Monitor the Company's filings between January 30, 2020, and March 13, 2020, for the submission of a compliance plan.
- Review the Company's capital structure and potential financing activities intended to restore equity levels.
- Check for any subsequent Nasdaq communications regarding the acceptance or rejection of the compliance plan.