Business Context and Reporting Period
This Form 6-K filing by Golden Bull Limited (trading as Bit Digital, Inc.) covers the month of April 2020. The report primarily addresses the impact of the COVID-19 pandemic on the company's operations in China, the resulting delay in the audit of its 2019 financial statements, and recent corporate governance changes.
Key Financial Metrics
The filing does not provide specific financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity figures for the current or prior periods. The document focuses on operational disruptions and compliance matters rather than financial results.
Material Changes and Operational Impact
- Covid-19 Disruption: The outbreak in mainland China significantly delayed the preparation of audit materials and the fieldwork for the fiscal year ended December 31, 2019. Employees were required to work from home until early March 2020.
- Audit Delay: Due to travel restrictions and preparation delays, the company estimates it will file its Annual Report on Form 20-F on or before June 14, 2020.
- Operational Risks: The company cites travel restrictions, shortages of automobiles for leasing, logistics delays, liquidity issues, and general economic downturn as material adverse effects on its business.
Guidance, Outlook, and Corporate Actions
Management Commentary and Risks
Management states that the full extent of the COVID-19 impact on financial results is uncertain and depends on future developments. The company acknowledges that its operations, employees, and customers are substantially located in China, making it highly susceptible to local economic conditions.
Corporate Governance Changes
- Appointment of Hong Yu: On April 19, 2020, Mr. Hong Yu was appointed Executive Director and Chief Strategy Officer. He will receive an annual salary of $100,000 plus a quarterly director fee of $1,000. His background includes founding gaming platforms and crypto funds.
- Appointment of Yan Xiong: On April 19, 2020, Mr. Yan Xiong was appointed Independent Director. He will receive a quarterly director fee of $1,000. He has extensive experience in accounting and pharmaceutical technology.
Nasdaq Compliance
Nasdaq has extended the second grace period for the company to regain compliance with the minimum $1.00 per share bid price requirement until December 7, 2020. The company may effect a reverse stock split to regain compliance.
Investor Verification Checklist
- Verify the actual filing date of the Form 20-F for the year ended December 31, 2019, to confirm if the June 14, 2020 estimate was met.
- Monitor the company's stock price to determine if a reverse stock split is executed to meet Nasdaq bid price requirements by December 7, 2020.
- Review the attached Exhibit 99.1 (Statement for Audit Work Delay) for specific details on the auditor's findings regarding the delay.
- Assess the company's liquidity position in subsequent filings, given the explicit mention of "liquidity issues" as a risk factor.