Benzinga | Mar 23, 2021 09:31AM EDT

The9 6-K Shows Co. Needed To Correct Error In Original Financial Statements For 6 Months Ended Jun. 30, 2020

Corrections to the Form 6-K Furnished on December 30, 2020



As The9 Limited (the "Company") previously disclosed its consolidated financial statements as of and for the six months ended June 30, 2020, the Company made an error in the accounting treatment on extinguishment of convertible notes and had omitted reclassification for certain line items to the consolidated financial statements.



The Company later identified such inadvertent error and determined to restate its unaudited interim consolidated financial statements as of and for the six months ended June 30, 2020 previously disclosed in Form 6-K furnished with the United States Securities and Exchange Commission on December 30, 2020 in order to correct the error in the accounting treatment on extinguishment of convertible notes, which impacted related interest expense, foreign exchange gain (loss) and reversal of gain on extinguishment of convertible notes from additional paid-in capital. The restatement is also being made to correct the reclassification for certain line items to the condensed consolidated financial statements including reclassification between cost of sales and product development expenses; reclassification of income tax expense out from gain on disposal of subsidiaries; reclassification on reversal of statutory reserves due to disposal of subsidiaries to accumulated deficit and reclassification between Class A ordinary shares and Class B ordinary shares.



The Company is furnishing this Form 6-K in order to correct the error. The tables below illustrate its restated unaudited interim consolidated statements of income for the six months ended June 30, 2020 and its restated unaudited consolidated balance sheet as of June 30, 2020.