Moxian Is A Failed Social Network That Has Gone On a Huge Run Without Any News

  • Moxian (MOXC) has almost no assets and failed on a recently planned acquisition. 
  • Reported in its latest 10-Q only $23K in revenues over the past six months and lost its only major customer. 
  • In March 2021, issued 3.15M shares at $1.25 apiece-a huge discount to its market price. 
  • Stock has increased by 1,597% over the past year without any improvements in the company’s operations. 

Moxian, Inc. is a company with no significant business except digital advertising, and even that business is questionable.  

From 2014 to 2018, MOXC was operating an O2O (online-to-online) business, an online platform for small and medium-sized businesses that used the platform to attract consumers to their physical stores. The products also included targeted advertising and promotions to the merchant target base of consumers and new consumers.

By 2018, MOXC discontinued operations, as stated in the 10-K in its O2O business due to strategic partner withdrawal and inability to compete in the industry, which became dominated by Alipay and WeChat. Since 2018, MOXC was operating on a limited capacity as a digital advertiser.

 Moxian’s Declining Revenues and No Assets 

Revenue $339,947 $370,411 $946,466 $22,890
(Source: 10K 2018, 10K 2019, 10K 2020, Q221)

MOXC’s highest revenue year was in 2020 and the revenue primarily came from one client, Beijing Bi Er Culture and Communication Co., Ltd., from a Strategic Co-operative Agreement signed in August of 2019. 

As stated in the 10-Q of the fiscal second quarter of 2021, this agreement has expired and contributed zero revenues. The $22,890 recognized in the second quarter came from new clients that were acquired at the end of the quarter. 

With the termination of the Strategic Co-Operative Agreement with Bi Er, accounts receivables worth $1,345,080 are not going to be collected and will be written down. This is stated in the fiscal Q121 quarterly report. 

The company has no long-term assets. No property, plant, and equipment nor any intangible assets, all of these were depreciated and impaired. The fiscal Q221 balance sheet consists of current assets, which is only cash of $3,627,303, current liabilities worth $1,320,452, and an accumulated deficit of $42,725,559. 

 In August of 2020, MOXC was attempting to acquire a new business and entered into an agreement with Btab Group, Inc., an e-commerce service provider and product supplier for small businesses. It has issued a few press releases after the acquisition announcement promoting positive developments at Btab Group, Inc, and claimed that they are finalizing the paperwork for the acquisition.

On September 3, 2020  press release:

“Moxian announces acquisition by Btab Group, Inc.” promoting Btab’s acquisition of an Indian food company with $15 million in revenues. 

On September 9, another press release related to the acquisition stated:

 “ Btab Group Inc. to Contribute 10,000 Online Stores to Entrepreneurs and Small Business” 

These press releases are more promotional than relevant for MOXC’s bottom line since, in the end, the deal did not go through and was terminated in March of 2021. 

Raised Cash at a Huge Discount and now the Share Price is Soaring Higher for No Reason

In March of 2021, MOXC managed to raise money from private investors at $1.25 per share. Since April, the share price has kept on climbing higher despite no positive development in the company’s financial position or any relevant corporate developments. The opposite should have happened! The termination of an acquisition of Btab Group, inc. should have been a negative for the company and its stock price since they are back at square one, no business to speak of. 

So far, the stock price has increased a whopping 1,597% over the past year, meanwhile, the company’s revenues are declining, and a major client was lost.   

In my opinion, MOXC is worth close to zero and not more than the private investors have paid for it in March, or $1.25 per share.

I predict that the stock will decline from the current overvalued level as recent financials revealed, once again, minuscule revenues that are declining; loss of a major client and the accounts receivables that came from that client; no tangible or intangible assets; and an uncertain future without any clear path on how will MOXC’s management justify a current market valuation of over $200 million with new clients that only contributed $23 thousand in revenues. 

Disclosure: I am/We are short MOXC.

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