Business Context and Reporting Period
This Form 6-K filing by Moxian (BVI) Inc. (also referred to as Abits Group Inc.) is dated May 16, 2023. The report addresses a critical error in the company's previously filed Annual Report on Form 20-F submitted on May 15, 2023.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. Instead, it serves as a notice that the audited consolidated financial statements for the period ended December 31, 2022, are unreliable.
Material Changes and Errors
- Erroneous Filing: The Form 20-F filed on May 15, 2023, was a draft submitted in error due to miscommunication.
- Financial Statement Errors: The 2022 Financial Statements contain errors regarding the amount of loss on the sale of a subsidiary.
- Impact Scope: These errors may affect the income statement, balance sheet, and cash flow statement. Consequently, all press releases and investor communications regarding the 2022 period should no longer be relied upon.
Outlook, Management Commentary, and Risks
Management and the Audit Committee have discussed the matter with the independent registered public accounting firm, Audit Alliance LLP. The company intends to release restated consolidated financial statements for December 31, 2022, via an amended Annual Report on Form 20-F/A on or before May 18, 2023. The primary risk identified is the current unreliability of all previously disclosed financial data for the 2022 fiscal year.
Investor Verification Checklist
- Verify the release of the amended Form 20-F/A by May 18, 2023.
- Review the restated financial statements for the corrected loss on the sale of the subsidiary.
- Confirm the impact of the restatement on the company's overall income, equity, and cash flow positions.
- Ignore all prior earnings releases and financial summaries for the 2022 period until the restatement is issued.