UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of August 2020

Commission File Number 001-39001

Blue Hat Interactive Entertainment Technology

(Translation of registrant’s name into English)

     

7th Floor, Building C, No. 1010 Anling Road

Huli District, Xiamen, China 361009

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 

 

   

 

 

Blue Hat Interactive Entertainment Technology furnishes under the cover of Form 6-K the following:

 

Exhibit No. Description of Exhibit
99.1 Press Release dated August 14, 2020, announcing its unaudited financial results for the six months ended June 30, 2020

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 14, 2020

 

BLUE HAT INTERACTIVE

ENTERTAINMENT TECHNOLOGY

   
  By: /s/ Xiaodong Chen
    Name: Xiaodong Chen
    Title: Chief Executive Officer

 

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Exhibit 99.1

 

Blue Hat Interactive Entertainment Technology Announces
First Half Year of 2020 Unaudited Financial Results

 

XIAMEN, China, August 14, 2020 /PRNewswire/ -- Blue Hat Interactive Entertainment Technology ("Blue Hat" or the "Company") (NASDAQ: BHAT), a producer, developer and operator of augmented reality ("AR") interactive entertainment games, toys and educational materials in China, today announced its unaudited financial results for the six months ended June 30, 2020.

 

First Half Year of 2020 Financial Highlights

 

·Total revenues decreased by 34.9% for the six months ended June 30, 2020 to US$4.9 million.

 

·Gross profit decreased by 30.8% for the six months ended June 30, 2020 to US$3.7 million.

 

·Income from operations decreased by 50.8% for the six months ended June 30, 2020 to US$1.6 million.

 

·Net income decreased by 58.8% for the six months ended June 30, 2020 to US$1.3 million.

 

“The outbreak of COVID-19 since the beginning of 2020 has adversely impacted the global economy and our financial performance in the first half year was negatively affected as a result of the suspension of the entire industry. With daily life in China gradually returning to normal since April, our business related to education industry ramped up during the period.” said Mr. Xiaodong Chen, Chief Executive Officer of Blue Hat, “I’m pleased that our thriving smart education business line made a significant addition to our portfolio. ‘AR Immersive Classes’ (‘ARIC’), integrated with physical exercises in terms of AR-based educational content and products, targets children between three and six years old. Interactive education combines teaching with entertainment, inspiring kids with imagination and critical thinking. We build Direct-to-Consumer social content marketing channels via short videos and live streaming to increase our brand awareness, and broaden our market reach. Looking forward, we intend to continue to explore both in-house development and strategic investment opportunities to strengthen our pipeline of toy and game content and maximize shareholder value.”

 

Recent Developments

 

 

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First Half 2020 Results

 

Total revenues were $4.9 million for the six months ended June 30, 2020, a decrease of $2.6 million, or 34.9%, from $7.5 million for the same period ended June 30, 2019. The overall decrease was primarily attributed to the fewer sales of interactive toys (game series) during the period, partially offset by revenue from ARIC, which was launched to the market this year.

 

Gross profit was $3.7 million for the six months ended June 30, 2020, a decline of $1.6 million, or 30.8%, from $5.3 million for the same period ended June 30, 2019. Gross profit margin was 75.2% for the six months ended June 30, 2020, compared to 70.8% for the same period of 2019. Research and development expenses of mobile games recorded in Cost of Sales are fully amortized this February, consequently, gross profit ratio increased by 4.4%.

 

Operating expenses were $ 2,032,696 for the six months ended June 30, 2020, an increase of $47,752, or 2.4%, from $1,984,944 for the same period ended June 30, 2019. This increase was mainly due to the increase of general and administrative expenses amounted to $221,638, offset by the decrease of selling expense of around $119,705. Fixed cost increased during the first half of 2020 mainly due to the amortization of newly incurred rental cost and software patents. Legal expenses accounted for an obvious growth of general and administrative expenses in connection with our recent financing.

 

Income from operations was $1.6 million for the six months ended June 30, 2020, a decrease of $1.7 million, or 50.8%, from $3.3 million for the same period ended June 30, 2019.

 

Net income attributable to ordinary shareholders was $1.3 million for the six months ended June 30, 2020, compared with $3.1 million for the same period ended June 30, 2019 or $0.04 and $0.09 per basic and diluted share respectively.

 

Cash and Cash Equivalents

 

As of June 30, 2020, BHAT maintained strong cash resources of cash and cash equivalents totaling $11.4 million, compared with $10.5 million by the ended of December 31, 2019.

 

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About Blue Hat

 

Blue Hat Interactive Entertainment Technology is a producer, developer and operator of AR interactive entertainment games and toys in China, including interactive educational materials, mobile games, and toys with mobile game features. The Company’s interactive entertainment platform creates unique user experiences by connecting physical items to mobile devices, which creates a rich visual and interactive environment for users through the integration of real objects and virtual scenery. Distinguished by its own proprietary technology, Blue Hat aims to create an engaging, interactive and immersive community for its users. For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

 

Forward-Looking Statements 

 

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company's SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements.

 

Contacts:

 

Lexie Zhang

Blue Hat Interactive Entertainment Technology
Phone: +86 (592) 228-0010
Email: ir@bluehatgroup.net

 

 

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BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
 
    June 30,   December 31,
ASSETS   2020   2019
CURRENT ASSETS                
Cash and cash equivalents   US$  11,372,626     US$  10,478,587  
Accounts receivable, net      14,420,292        13,631,359  
Other receivables, net      12,972,825        13,182,529  
Prepayments, net     277,376        299,577  
Inventories     249,563        125,264  
Restricted cash      -           5,000,000  
Total current assets      39,292,682        42,717,316  
PROPERTY AND EQUIPMENT, NET     4,417,195       2,324,823  
OTHER ASSETS                
Prepayments     4,660,489       4,425,849  
Operating lease, right-of-use asset     501,136       679,850  
Intangible assets, net     6,423,487       6,758,316  
Long-term investments     1,702,098       1,727,301  
Deferred tax assets     188,872       182,234  
Total other assets      13,476,082       13,773,550  
Total assets   US$  57,185,959     US$ 58,815,689  
LIABILITIES AND SHAREHOLDERS' EQUITY                
CURRENT LIABILITIES                
Short-term loans - banks     1,963,415       5,819,787  
Current maturities of long-term loans - third party     51,915       77,493  
Accounts payable     1,420,706       293,985  
Other payables and accrued liabilities     3,278,340       3,628,809  
Other payables - related party      252,989       21,341  
Operating lease liabilities-current     264,903        313,460    
Customer deposits     3,573       -  
Taxes payable     4,264,275       3,525,153  
Total current liabilities     11,500,116       13,680,028  
                 
OTHER LIABILITIES                
Operating lease liability     255,190       372,051  
Long-term loans - third party     -       13,328  
Total other liabilities     255,190       385,379  
Total liabilities      11,755,306       14,065,407  
                 
COMMITMENTS AND CONTINGENCIES                
Total shareholders' equity                
Ordinary shares, US$0.001 par value, 50,000,000 shares authorized, 35,141,114 shares issued and outstanding as of June 30, 2020,  35,141,114 shares issued and outstanding as of December 31, 2019     35,141      

 

 

 

35,141

 
Additional paid-in capital     20,771,849       20,771,849  
Statutory reserves     1,289,765       1,289,765  
Retained earnings     25,391,957       24,132,194  
Accumulated other comprehensive income (loss)      (2,058,059)       (1,478,667)  
Total shareholders' equity      45,430,653       44,750,282  
Total liabilities and shareholders' equity   US$  57,185,959     US$ 58,815,689  

 

 

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BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
    For the Three Months ended June 30,
    2020   2019
REVENUES   US$  2,611,204      US$  3,176,566  
Interactive toys - animation series      (148 )      11,248  
Interactive toys - game series      2,046,625        2,251,849  
Mobile games      564,727        913,469  
COST OF REVENUES      (634,473 )      (953,732 )
GROSS PROFIT      1,976,731        2,222,834  
OPERATING EXPENSES                
Selling      (117,549 )      (207,263 )
General and administrative      (1,057,108 )      (650,605 )
Research and development      (69,128 )      (96,148 )
Total operating expenses      (1,243,785 )      (954,016 )
INCOME FROM OPERATIONS      732,946        1,268,818  
OTHER INCOME (EXPENSE)                
Interest income      107,507        32  
Interest expense      (51,053 )      (18,759 )
Other finance expenses      47,581        (724 )
Other (expense) income, net      2,328        (105,621 )
Total other income, net      106,363        (125,072 )
INCOME BEFORE INCOME TAXES      839,309        1,143,746  
PROVISION FOR INCOME TAXES      (338,919 )      (55,447 )
NET INCOME      500,390        1,088,299  
OTHER COMPREHENSIVE INCOME (LOSS)                
Foreign currency translation adjustment      25,968        31,760  
COMPREHENSIVE INCOME   US$  526,358      US$  1,120,059  
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES                
Basic and diluted      35,141,114        33,000,000  
EARNINGS PER SHARE                
Basic and diluted   US$  0.01      US$  0.03  
                       

 

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BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
    For the Six Months ended June 30,
    2020   2019
REVENUES   US$  4,854,862      US$  7,453,379  
Interactive toys - animation series      54        89,391  
Interactive toys - game series      3,701,861        6,116,883  
Mobile games      1,152,947        1,247,105  
COST OF REVENUES      (1,203,962 )                      (2,176,756 )
GROSS PROFIT      3,650,900                      5,276,623    
OPERATING EXPENSES                
Selling      (290,699 )      (410,404 )
General and administrative      (1,596,818 )      (1,375,180 )
Research and development      (145,179 )      (199,360 )
Total operating expenses      (2,032,696 )      (1,984,944 )
INCOME FROM OPERATIONS      1,618,204                       3,291,679    
OTHER INCOME (EXPENSE)                
Interest income      107,884        502  
Interest expense      (123,660 )      (65,507 )
Other finance expenses      (10,168 )      (1,881 )
Other (expense) income, net      20,862        (3,230 )
Total other income, net      (5,082 )      (70,116 )
INCOME BEFORE INCOME TAXES      1,613,122        3,221,563  
PROVISION FOR INCOME TAXES      (353,359 )      (161,346 )
NET INCOME      1,259,763        3,060,217  
OTHER COMPREHENSIVE INCOME (LOSS)                
Foreign currency translation adjustment      (579,392 )     12,269  
COMPREHENSIVE INCOME   US$  680,371      US$ 3,072,486  
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES                
Basic and diluted      35,141,114        33,000,000  
EARNINGS PER SHARE                
Basic and diluted   US$  0.04      US$  0.09  
                       

 

 

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