14. SUBSEQUENT EVENTS
|(a)||Since the beginning of January 2020 and through the date of this report, the entire global economy has been substantially impacted by the coronavirus pandemic which began in China and has spread to most other parts of the world. The range of possible impacts on the Company’s business from the coronavirus pandemic could include, but would not necessarily be limited to, one or more of the following factors:|
|-||A negative impact due to a contraction in the demand for the Company’s services|
|-||A negative impact due to a contraction in the capital markets required to support the Company’s new business strategy|
|-||A negative impact on the availability of key personnel necessary to conduct the Company’s business activities|
|-||A negative impact on the business and operations of third-party service providers who perform critical services for the Company|
|(b)||In June 2020, the Company entered into short-term loan agreements with LOC and a company in Beijing, whereby the Company provided additional loans of $226,000 and $43,000 respectively. The loans are secured by the personal guarantees of some of the stockholders, bear interest at a rate of 8% per annum, and are due in June 2021.|
|(c)||On June 1, 2020, the Company and LOC entered into the Supplement of FinMaster Mobile Application Platform Agreement, wherein LOC agreed to add new functionality to the FinMaster mobile application for total consideration of $600,000, payable either in cash or in the form of shares of the Company’s common stock. In addition, the Company agreed to pay LOC $200,000 for LOC’s intellectual property rights to the mobile application being developed by LOC under the agreement dated September 1, 2018 (Note 2).|
|(d)||On June 30, 2020, the Company entered into a stock forfeiture letter (the “Stock Forfeiture Letter”) with First Leader Capital Ltd., a significant stockholder of the Company and an entity solely owned and controlled by Yi-Hsiu Lin, the Company’s Chief Executive Officer and a member of the Company’s board of directors. Pursuant to the Stock Forfeiture Letter, on June 30, 2020, First Leader Capital Ltd. forfeited and surrendered 5,500,000 shares (the “Surrendered Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), and the Surrendered Shares were automatically cancelled and retired (the “Stock Cancellation”). First Leader Capital Ltd. agreed to forfeit and cancel the Surrendered Shares in exchange for the benefit from reducing the Company’s outstanding Common Stock to be more in line with what management deems to be market expectations based on the Company’s current valuation.|
|(e)||Also on June 30, 2020, the Company’s board of directors agreed to grant a new employee of JFB Internet Service Limited, a wholly owned subsidiary of the Company (i) 5,000,000 shares of Common Stock in connection with such employee’s employment (the “Inducement Shares”) and (ii) 5,000,000 shares of Common Stock upon the achievement of each of two milestones set forth in such employee’s offer letter relating to the FinMaster mobile application. In addition, on that same day, the Company’s board of directors granted an aggregate of 4,500,000 shares of Common Stock to a consultant and a service provider in exchange for services rendered (the “Consultant Shares”).|
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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