REDHAWK HOLDINGS CORP. (OTCMKTS:IDNG) Files An 8-K Other Events
Item 8.01 Other Events
RedHawk Holdings Corp. (the “Company”) is hereby relying on the Securities and Exchange Commission’s Order under Section 36 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Modifying Exemptions From the Reporting and Proxy Delivery Requirements for Public Companies dated March 25, 2020 (Release No 34-88465) (the “Order”) to delay the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 (the “March 31, 2020 Form 10-Q”) due to circumstances related to COVID-19. In particular, COVID-19 has caused significant increases in our business activity resulting in disruptions in our normal domestic and international interactions with our auditors. The Company has minimal accounting staff and has historically provided its auditors with full access to workpapers and related information. Because the audit personnel are now working remotely as much as possible, and relying on the Company’s minimal staff to furnish workpapers and other documents, the Company’s ability to complete its review and file the March 31, 2020 Form 10-Q prior to its due date without unreasonable expense is delayed. Notwithstanding the foregoing, the Company expects to file the March 31, 2020 Form 10-Q no later than June 29, 2020 (which is 45 days from the March 31, 2020 Form 10-Q’s original filing deadline of May 15, 2020).
In light of the current COVID-19 pandemic, the Company will be including the following Risk Factor in its March 31, 2020 Form 10-Q, as may be updated to reflect subsequent events impacting the Company.
We are unable to predict the impact of COVID-19 on the Company.
In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China, which has and is continuing to spread throughout the world, including the United States. On March 11, 2020 the World Health Organization characterized the spread of the coronavirus disease (“COVID-19”) as a “pandemic”. The significant reach of COVID-19 has resulted in a widespread public health issue that has and will likely continue to adversely affect the economies worldwide, and could adversely affect our business, results of operations and financial condition, including a decrease in demand for our medical devices. Specifically, we believe sales of our SANDD mini™ needle incineration device to independent school districts may be delayed, postponed or cancelled until schools resume normal operations. Demand for our newly released SANDD Pro™ may be delayed, postponed or cancelled until hospital, clinics and physicians resume normal operations. While we have expanded our portfolio of medical devices offered for sale with an aim to mitigate the expected adverse impact of COVID-19 on our medical device sales, we cannot assure you this plan will be successful. The ultimate extent of the impact of COVID-19 on our business, financial condition, results of operations and cash flows will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity (or lessening thereof) of COVID-19 and actions taken to contain or prevent its further spread, among others. These and other potential impacts of COVID-19 could therefore materially and adversely affect our business, financial condition, results of operations and cash flows. As a result of these uncertainties, we are unable to predict the overall impact on our company at this time. Our senior management will continue to monitor our situation, however, we expect that these factors and others we have yet to experience will materially adversely impact the Company, its business and operations for the foreseeable future.
About REDHAWK HOLDINGS CORP. (OTCMKTS:IDNG)
Redhawk Holdings Corp., formerly Independence Energy Corp., is a holding company, which through its subsidiaries, is engaged in sales and distribution of medical devices, sales of branded generic pharmaceutical drugs, commercial real estate investment and leasing, sales of point of entry full-body security systems, and specialized financial services. The Company’s segments include Land & Hospitality, Medical Device & Pharmaceutical, and Other Services. The Land & Hospitality, and Other Services segment units operate in the United States. The Medical Device & Pharmaceutical segment operates in the United Kingdom. The Company, through its medical products business unit, sells WoundClot Surgical-Advanced Bleeding Control, the Disintegrator Insulin Needle Destruction Unit, the Carotid Artery Digital Non-Contact Thermometer and Zonis. The Company’s real estate leasing revenues are generated from a commercial property under a long-term lease.
