MOXIAN (BVI) INC

Climate Impact & Sustainability Data (2021, 2022)

Loss of a major client involved in e-sports due to restrictions in China.
Difficulties in managing liquidity and cash flows.
History of operating losses.
Shifting to a new, unproven business model in bitcoin mining.
Fluctuations in quarterly results due to operating expenses, bitcoin price volatility, and general economic conditions.
Risks related to doing business in China (government intervention, regulatory changes, PCAOB inspection limitations, HFCAA delisting risk).
Risks related to bitcoin mining (price volatility, operating costs exceeding revenues, regulatory changes, banking services limitations, internet disruptions, security threats, technological obsolescence, supply chain disruptions, reliance on a single miner model, halving events).
Risks related to digital advertising (dependence on Xinhua New Media, attracting and retaining clients and staff, geographical limitations).
Risks involving intellectual property (unauthorized use, infringement claims, software errors).
Risks related to exchange rate fluctuations.
Limited insurance coverage.
Potential difficulties for shareholders in protecting their interests due to British Virgin Islands laws.

Diversification into bitcoin mining.
Injection of capital from new investors.
Issuance of new shares to raise funds for bitcoin mining.
Acquisition of mining assets and equipment.
Introduction of measures to remediate material weaknesses in internal control over financial reporting (educating senior management, setting monetary limits on contracts, designing controls over financial reporting, providing training on US GAAP and NASDAQ rules).

Frameworks Used: U.S. GAAP

Third-party Assurance: Centurion ZD CPA & Co.

In June 2022, the company was listed by the SEC as a Commission-Identified Issuer under the HFCAA due to the previous auditor (Centurion ZD CPA & Co.) being headquartered in Hong Kong, where the PCAOB was unable to fully inspect or investigate.

Appointed Audit Alliance LLP (headquartered in Singapore) as the new independent registered public accounting firm effective June 30, 2022. This change was expected to allow compliance with the HFCAA and AHFCAA.