EXEO ENTERTAINMENT, INC. (OTCMKTS:EXEO) Files An 8-K Other Events
Item 8.01
EXEO ENTERTAINMENT, INC. (OTCMKTS:EXEO) Files An 8-K Other Events
EXEO Entertainment, Inc. (the “Registrant”) is furnishing this Current Report on Form 8-K to indicate it intends to rely on the Order of the Securities and Exchange Commission of March 4, 2020 (Release No. 34-88318) (the “Order”), which allows for the delay of certain filings required under the Securities and Exchange Act of 1934, as amended. The Order provides that a registrant subject to the reporting requirements of Exchange Act Section 13(a) or 15(d), and any person required to make any filings with respect to such a registrant, is exempt from any requirement to file or furnish materials with the Commission under Exchange Act Sections 13(a), 13(f), 13(g), 14(a), 14(c), 14(f), 15(d) and Regulations 13A, Regulation 13D-G (except for those provisions mandating the filing of Schedule 13D or amendments to Schedule 13D), 14A, 14C and 15D, and Exchange Act Rules 13f-1, and 14f-1, as applicable.
The Registrant is relying on the Order in connection with the Registrant’s Quarterly Report on Form 10-Q for the quarter ended February 29, 2020, as a result of the circumstances set forth below. The Registrant’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and the world. Due to the timing of initial and evolving governmental orders and guidelines impacting the Registrant’s financial operations in Las Vegas, Nevada, as well as other contributors to the process of financial statement preparation, relating to social distancing, stay in place orders, travel and other restrictions on business, necessary and immediate access of personnel, records and information have been adversely effected and has caused a delay in the completion of the Registrants reviewed financial statements for the quarter ended February 29, 2020 to be included in the Registrants Quarterly Report on Form 10-Q.
Accordingly, in reliance upon the Order, the Registrant expects to file its Quarterly Report on Form 10-Q no later than 45 days after the due date of filing of April 14, 2020, unless the COVID-19 circumstances do not change and cause a further delay, in which case we will file for an extension and amendment to this Current Report on form 8-K.
to the Order, following are the Risk Factors disclosing the impact of COVID-19 onto the Registrant’s business and operations:
Risks Related to the COVID-19 Pandemic
The recent COVID-19 pandemic may adversely affect our business, results of operations, financial condition, liquidity, and cash flow.
While the complete impact on our business from the recent outbreak of the COVID-19 coronavirus is unknown at this time and difficult to predict, various aspects of our business are being adversely affected by it and may continue to be adversely affected.
As of the date hereof, COVID-19 has been declared a pandemic by the World Health Organization, has been declared a National Emergency by the United States Government and has resulted in several states being designated disaster zones. COVID-19 coronavirus caused significant volatility in global markets, including the market price of our securities. The spread of COVID-19 coronavirus has caused public health officials to recommend precautions to mitigate the spread of the virus, especially as to travel and congregating in large numbers. In addition, certain states and municipalities have enacted, and additional cities are considering, quarantining and “shelter-in-place” regulations which severely limit the ability of people to move and travel, and require non-essential businesses and organizations to close.
Thus far, these restrictions have adversely affected our business, results of operations and financial condition. It is unclear how such restrictions, should they continue for an extended period, which will contribute to a general slowdown in the global economy, will affect our business, results of operations, financial condition and our future strategic plans.
To date, the demand for our products has decreased and the ability of our customers to make payment for the products they currently purchase has been negatively impacted. It is unclear how a prolonged outbreak with travel, commercial and other similar restrictions, may adversely affect our business operations and the business operations of our customers and suppliers. However, we anticipate a prolonged period will have a negative effect on our business operations.
Recent shelter-in-place and essential-only travel regulations have negatively impacted many of our customers. In addition, while our products are manufactured outside the United States, we still could experience significant supply chain disruptions due to interruptions in operations at any or all of our suppliers’ facilities. If we experience significant delays in receiving our products, we will experience delays in fulfilling orders and ultimately receiving payment, which could result in loss of sales and a loss of customers, and adversely impact our financial condition and results of operations.
Risks Related to Securities Markets and Investments in Our Securities
General securities market uncertainties resulting from the COVID-19 pandemic.
Since the outset of the pandemic the US and worldwide national securities markets have undergone unprecedented stress due to the uncertainties of the pandemic and the resulting reactions and outcomes of government, business and the general population. These uncertainties have resulted in declines in all market sectors, increases in volumes due to flight to safety and governmental actions to support the markets. As a result, until the pandemic has stabilized, the markets may not be available to the Registrant for purposes of raising required capital. Should we not be able to obtain financing when required, in the amounts necessary to execute on our plans in full, or on terms which are economically feasible we may be unable to sustain the necessary capital to pursue our strategic plan and may have to reduce the planned future growth and scope of our operations.
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hereAbout EXEO ENTERTAINMENT, INC. (OTCMKTS:EXEO)
Exeo Entertainment, Inc. is a development-stage company. The Company designs, develops, licenses, manufactures and markets consumer electronics in the video gaming, music and smart television sector. It is focused on the development of Psyko, which is a 5.1 surround sound gaming headphone for consoles; Krankz MAXX Bluetooth wireless headphones; Zaaz Smart television keyboards; the Extreme Gamer, which is a multi-disc video game changer, and an android-based portable gaming system. The Krankz Wireless On-Ear Headphone has a foldable design with a built-in microphone and noise cancelling. The Krankz Headphone also has automatic call notification for switching between music audio and phone calls when paired to a smart phone. The Zaaz keyboard features a customized set of one-touch access keys that allows users to access user defined features of the smart television. The Extreme Gamer connects to various generation video game consoles offered by Nintendo, Microsoft and Sony.
