UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K/A

Amendment No. 1

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) December 8, 2021

 

Cosmos Holdings Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

 

000-54436

 

27-0611758

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

141 West Jackson Blvd, Suite 4236,

Chicago, Illinois

 

60604

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (312) 865-0026

 

N/A

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

 

Title of Each Class

 

Trading Symbol

 

Name of Each Exchange

On Which Registered

Common Stock, $.001 par value

 

COSM

 

OTC QX

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

Item 8.01 Other Events.

  

On December 8, 2021 the remaining $750,000 balance of the $2,000,000 note originally issued to Grigorios Siokas, was converted into shares of the Company’s common stock (the “Common Stock”). In addition, the Company has entered in a Securities Purchase Agreement to sell $5,000,000 worth of Series A Preferred Stock to a private investor. That sale is expected to close upon approval of the Company’s application to list its Common Stock on the Nasdaq Stock Market. A proforma balance sheet, dated December 8, 2021, that reflects these transactions is included as Exhibit 99.1 to this report.

   

Item 3.02 Unregistered Sales of Equity Securities.

 

The information in Item 8.01 is incorporated by reference.

 

The Company issued the Common Stock upon reliance from the registration requirement of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) thereof, which exempts transactions by an issuer not involving any public offering.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit 99.1

Pro Forma Balance Sheet

 

 

2

 

 

SIGNATURES

 

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

 

 

COSMOS HOLDINGS INC.

 

 

 

 

Date: December 9, 2021

By:

/s/ Grigorios Siokas

 

 

Grigorios Siokas

 

 

 

Chief Executive Officer

 

 

 

3

EXHIBIT 99.1

 

Exhibit 99.1 Pro Forma Balance Sheet as of December 8, 2021

 

 

 

As 'Adjusted Pro Forma (1)

 

 

Adjustments

 

 

September 30, 2021

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$ 5,683,875

 

 

$ 4,650,000

 

 

$ 1,033,875

 

Accounts receivable, net

 

27,189,507

 

 

 

-

 

 

27,189,507

 

Accounts receivable - related party

 

2,924,075

 

 

 

-

 

 

2,924,075

 

Marketable securities

 

 

211,203

 

 

 

-

 

 

 

211,203

 

Inventory

 

3,594,061

 

 

 

-

 

 

3,594,061

 

Prepaid expenses and other current assets

 

5,912,171

 

 

 

-

 

 

5,912,171

 

Prepaid expenses and other current assets - related party

 

2,253,351

 

 

 

-

 

 

2,253,351

 

Operating lease right-of-use asset

 

 

913,541

 

 

 

-

 

 

 

913,541

 

Financing lease right-of-use asset

 

 

252,051

 

 

 

-

 

 

 

252,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

48,933,835

 

 

4,650,000

 

 

44,283,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

1,968,505

 

 

 

-

 

 

1,968,505

 

Goodwill and intangible assets, net

 

 

508,267

 

 

 

-

 

 

 

508,267

 

Other assets

 

 

805,264

 

 

 

-

 

 

 

805,264

 

Deferred tax assets

 

 

111,468

 

 

 

-

 

 

 

111,468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$ 52,327,339

 

 

$ 4,650,000

 

 

$ 47,677,339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$ 11,712,477

 

 

$ -

 

 

$ 11,712,477

 

Accounts payable and accrued expenses - related party

 

 

81,826

 

 

 

-

 

 

 

81,826

 

Accrued interest

 

 

936,134

 

 

 

-

 

 

 

936,134

 

Convertible notes payable, net of unamortized discount of $407,206 and $494,973, respectively

 

 

685,794

 

 

 

(100,000 )

 

 

785,794

 

Derivative liability - convertible note

 

 

115,073

 

 

 

-

 

 

 

115,073

 

Notes payable

 

13,914,767

 

 

(1,190,475)

 

 

15,105,242

 

Notes payable - related party

 

 

474,889

 

 

 

-

 

 

 

474,889

 

Lines of credit

 

4,667,324

 

 

 

-

 

 

4,667,324

 

Loans payable

 

 

390,000

 

 

 

-

 

 

 

390,000

 

Convertible loans payable - related party

 

 

742,132

 

 

 

(750,000 )

 

1,492,132

 

Taxes payable

 

 

746,614

 

 

 

-

 

 

 

746,614

 

Operating lease liability, current portion

 

 

173,801

 

 

 

-

 

 

 

173,801

 

Financing lease liability, current portion

 

 

81,070

 

 

 

-

 

 

 

81,070

 

Other current liabilities

 

 

665,119

 

 

 

-

 

 

 

665,119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

35,387,020

 

 

(2,040,475)

 

 

37,427,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share settled debt obligation

 

1,554,590

 

 

 

-

 

 

1,554,590

 

Notes payable - long term portion

 

3,020,846

 

 

 

-

 

 

3,020,846

 

Operating lease liability, net of current portion

 

 

739,832

 

 

 

-

 

 

 

739,832

 

Financing lease liability, net of current portion

 

 

182,169

 

 

 

-

 

 

 

182,169

 

Other liabilities

 

 

101,446

 

 

 

-

 

 

 

101,446

 

TOTAL LIABILITIES

 

40,985,903

 

 

(2,040,475)

 

 

43,026,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 100,000,000 shares authorized; 5,000,000 shares issued and outstanding as of December 8, 2021

 

 

5,000

 

 

 

5,000

 

 

 

-

 

Common stock, $0.001 par value; 300,000,000 shares authorized; 17,720,723 shares issued as of December 8, 2021

 

 

17,720

 

 

 

388

 

 

 

17,332

 

Additional paid-in capital

 

37,181,500

 

 

7,035,087

 

 

30,146,413

 

Treasury stock, 293,208 and 415,328 shares as of December 8, 2021,

 

 

(439,844 )

 

 

-

 

 

 

(439,844 )

Accumulated deficit

 

(25,590,326)

 

 

 

(350,000 )

 

(25,240,326)

 

Accumulated other comprehensive income

 

 

167,386

 

 

 

-

 

 

 

167,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS' EQUITY

 

11,341,436

 

 

6,690,475

 

 

4,650,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$ 52,327,339

 

 

$ 4,650,000

 

 

$ 47,677,339

 

 

(1)

Includes (i) the conversion of a note on December 8, 2021 and (ii) unrealized proceeds from sale of Series A Preferred Stock to a private investor, the closing of which is anticipated to occur when the Company’s Common Stock has been approved for and begins trading on Nasdaq.