Business Context and Reporting Period
This Form 6-K is filed by Hudson Capital Inc. (not Freight Technologies, Inc.) for the month of September 2021, dated October 1, 2021. The filing addresses the Company's efforts to regain compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum of $2,500,000 in stockholders' equity.
Key Financial Metrics
- Stockholders' Equity: Reported as $631,145 in the last annual report (Form 20-F) for the period ended December 31, 2021.
- Capital Raised: $2,700,000 aggregate purchase price from a securities purchase agreement.
- Debt, Revenue, Profit, Cash Flow: The filing text does not provide clear values for these metrics.
Material Changes
On September 28, 2021, the Company consummated a sale of 630,000 ordinary shares and a pre-funded warrant to purchase 650,000 ordinary shares to ATW Opportunities Master Fund, L.P. This transaction was executed to address the deficiency in stockholders' equity that led to a Nasdaq non-compliance notice issued on May 13, 2021.
Outlook, Risks, and Management Commentary
Management believes the Company has regained compliance with the stockholders' equity requirement based on the September 2021 securities purchase. However, the filing notes that Nasdaq will continue to monitor ongoing compliance. If the Company fails to evidence compliance in its next periodic report, it may be subject to delisting.
Investor Verification Checklist
- Verify the updated stockholders' equity balance post-transaction to confirm it exceeds the $2,500,000 Nasdaq threshold.
- Confirm the Company's continued listing status on Nasdaq following this filing.
- Review the prospectus supplement dated September 28, 2021, for details on the warrant terms and dilution impact.
- Check subsequent periodic reports to ensure the Company has not received further delisting notices.