Item
8.01 Other Events.
Inability
to timely file Annual Report on Form 10-K for the Year Ended March 31, 2020 due to circumstances related to COVID-19
iFresh
Inc. (the “Company”) is filing this current report on Form 8-K, pursuant to an order issued by the U.S. Securities
and Exchange Commission dated on March 25, 2020 (Release No. 34-88465) (the “SEC Order”), providing conditional relief
to public companies that are unable to timely comply with their filing obligations as a result of the outbreak of COVID-19.
The
outbreak of COVID-19 has posed a significant impact on the Company’s ability to file on a timely basis its Annual Report
on Form 10-K for the year ended March 31, 2020 (the “Annual Report”). Therefore, the Company is relying on the SEC
Order to extend the due date for the filing of the Annual report until August 13, 2020 (45 days after the original due date).
As
a result of the global outbreak of the COVID-19, the Company is unable to meet the filing deadline of the Annual Report. The Company’s
business and stores are located in the states of New York, Florida, Massachusetts and Maryland. In order to avoid the risk of
the virus spreading, the Company has been following the recommendations of local health authorities to minimize exposure risk
for its employees and customers for the past two and an half months, including the temporary closures of its stores and corporate
offices, having employees work remotely and travel restrictions or suspension. As such, the Annual Report will not be completed
by the filing deadline, due to insufficient time to facilitate the internal and external review process.
Risk
Factor Related to COVID-19
Our
business and financial results may be materially adversely affected by the current COVID-19 pandemic outbreak.
The
pandemic of a novel coronavirus (COVID-19) has resulted in a widespread health crisis that has adversely affected the economies
and financial markets worldwide. Government efforts to contain the spread of the coronavirus through lockdowns of cities, business
closures, restrictions on travel and emergency quarantines, among others, and responses by businesses and individuals to reduce
the risk of exposure to infection, including reduced travel, cancellation of meetings and events, and implementation of work-at-home
policies, among others, have caused significant disruptions to the global economy and normal business operations across a growing
list of sectors and countries.
Our
operating results substantially depend on revenues derived from sales generated from our stores. As the COVID-19 spread continues,
the measures implemented to curb the spread of the virus have resulted in decreased customers’ shopping activities, supply
chain disruptions and insufficient work force. One or more of our customers, partners, service providers or suppliers may experience
financial distress, delayed or defaults on payment, file for bankruptcy protection, sharp diminishing of business, or suffer disruptions
in their business due to the outbreak. These preventative measures have also impacted our daily operations. The efforts enacted
to control COVID-19 have placed heavy pressure on our marketing and sales activities. In addition, we are focused on protecting
the safety and well-being of our work force and customers. Therefore, we have increased our efforts to purchase necessary personal
protection equipment, which is expected to lead to an increase in operating costs. We continue to assess the related risks and
impacts COVID-19 pandemic may have on our business and our financial performance. In light of the rapidly changing situation across
different regions, it remains difficult to estimate the duration and magnitude of COVID-19 impact. Until such time as the COVID-19
pandemic is contained or eradicated and grocery business returns to more customary levels, our business and financial results
may be materially adversely affected.
Forward-Looking
Statements
Certain
statements made herein are “forward-looking statements” within the meaning of the “safe harbor” provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such
as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”,
and “project” and other similar expressions that predict or indicate future events or trends or that are not statements
of historical matters. Such forward-looking statements include timing of the proposed transactions; the business plans, objectives,
expectations and intentions of the parties once the transactions are complete, and the Company’s estimated and future results
of operations, business strategies, competitive position, industry environment and potential growth opportunities. These forward-looking
statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result,
caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, our actual results may differ
materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting
on its behalf are expressly qualified in their entirety by these factors. All information provided in this press release is as
of the date hereof. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking
statements.