Moxian, Inc. (MOXC) Provides Update on Status Under Holding Foreign Companies Accountable Act

May 26, 2022 4:21 PM EDT

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Moxian (BVI) Inc (NASDAQ: MOXC) today updates its status under the Holding Foreign Companies Accountable Act (the “HFCAA”). The Company was provisionally named by the United States Securities and Exchange Commission (the “SEC”) as a Commission-Identified Issuer on May 20, 2022 U.S. Eastern Time, following the Company’s filing of the annual report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC on May 13, 2022.

The Company understands that this identification under the HFCAA and its implementation rules issued thereunder indicates that the SEC determines that the Company used a registered public accounting firm whose working papers cannot be inspected or investigated completely by the Public Company Accounting Oversight Board of the United States (the “PCAOB”) to issue the audit opinion for its financial statements for the fiscal year ended December 31, 2021. As the Company disclosed in the Form 20-F for the year ended December 31, 2021, pursuant to the HFCAA, the PCAOB issued a determination report on December 16, 2021 which found that the PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in Mainland China and the Special Administrative Region of Hong Kong. As the Company’s auditor that audited the Company’s financial statements for the 2021 fiscal year is one of the registered public accounting firms headquartered in Hong Kong, the PCAOB is unable to inspect or investigate completely the audit work because of the position taken by the Hong Kong authority.

In accordance with the HFCAA, a company’s shares will be prohibited from being traded on a national stock exchange or in the over-the-counter trading market in the United States only if the company has been identified by the SEC for three consecutive years beginning in 2021 due to the PCAOB’s inability to inspect the auditor’s working papers.

The Company has been actively exploring possible solutions to protect the interest of its shareholders, including engagement of an auditor which is not headquartered in Mainland China or Hong Kong. The Company will continue to comply with applicable laws and regulations in both China and the United States and strive to maintain its listing status on Nasdaq.



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