Contrarian Corpus
short seller research note initial thesis
2021-07-27 · 24 pages

Moxian, Inc. MOXC

MOXC is a Nevada shell whose Chinese 'operating' subsidiaries lack valid licenses, working phones, and a real GM, while related-party debt swaps fueled a 2,400% stock pump.

N 4 Narrative
V 2 Visual
C 2 Craft
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Thesis

Wolfpack is short Moxian, Inc. (MOXC), arguing the Nasdaq-listed company is effectively a Nevada shell whose Chinese 'operating' subsidiaries do not actually operate. The purported VIE Moyi Shenzhen lacks valid licenses — its 2014 ICP covers only Guangdong, and its 2015 national license expressly excluded internet information services and was cancelled by China's MIIT in February 2021. Phone numbers, websites and emails for all three Chinese entities are dead, and Moxian Shenzhen has ignored a court order to remove its terminated General Manager. Reported FY2020 revenue of $946,466 came almost entirely from one related-party customer whose $1.35M receivable was later fully written off. Meanwhile, related-party debt swaps at $1.50 produced gains of ~2,400% as the stock pumped 2,318% in 12 months on suspected gamma-squeeze activity reminiscent of Archegos. Wolfpack sees severe downside risk.

SCQA

Situation

Moxian, Inc. (MOXC) is a Nasdaq-listed Nevada parent claiming to operate an online advertising business in China through subsidiary Moxian Shenzhen and purported VIE Moyi Shenzhen, with a $329M market cap.

Complication

Chinese entities lack the licenses required to legally run online advertising, have non-functional contact channels, ignore court orders on basic governance, and generate revenue almost entirely from one related party.

Resolution

Wolfpack publishes evidence — MIIT license cancellation records, Qixinbao filings, court judgments, sanctions, the corporate-shell map, and related-party debt-swap data — to expose MOXC as a stock promotion vehicle with no real business.

Reward

Severe downside risk for MOXC shares in the near term as insiders sitting on ~2,400% gains with sub-$1.50 cost basis are positioned to sell into any volume at almost any price.

The three reasons

  1. 1

    Chinese subsidiaries lack valid licenses: 2015 national ICP cancelled by MIIT Feb 2021, 2014 license is Guangdong-only

  2. 2

    Operating entities are dead shells: no working phones, bounced emails, court-ordered GM removal ignored, 7 court sanctions on legal rep

  3. 3

    FY2020 'best ever' revenue came from one related party whose $1.35M receivable was fully written off — pure stock promotion

Primary demands

  • Investors should recognize MOXC as a Nevada shell engaged in stock promotion rather than a real operating business
  • Nasdaq should reassess MOXC's continued listing given the absence of legitimate Chinese operations

KPIs cited

Q1 FY2021 revenue
$0 in revenue against $387,160 in SG&A expense
H1 FY2021 revenue
$22,890 in revenue against $627,207 in SG&A expense
FY2020 reported revenue
$946,466 — almost entirely from related party Beijing Bi Er Culture and Communication
Bi Er receivable write-down
$1,345,080 fully provisioned in Q1 2021 — ~$400K more than booked revenue
Stock performance
MOXC up 2,318% in trailing 12 months to $530M peak equity value
Insider debt-swap returns
Related parties received shares at $1.50 in May 2019 worth >$15.6M two years later (~2,000-2,400% gross)
Court sanctions on legal rep
7 'high spending restriction' sanctions against Liu Shujuan over unpaid $2,500-$11,000 labor judgments
O2O business write-down
~$4.5M of O2O assets written off and ~$2M residual liabilities outstanding
Auditor risk profile
Centurion ZD CPA: 31 clients, 19 with disclosure control deficiencies, 14 with going-concern uncertainties; never PCAOB-inspected

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns. Orange cells are present in this deck; neutral cells are not.

Precedents cited

  • Luckin Coffee (Centurion ZD audit takeover after E&Y resignation)
  • Archegos/Bill Hwang gamma squeeze in GSX Techedu and iQIYI
  • YRIV and CBAT (other Centurion-audited China-based US listings flagged as frauds)
  • Spruce Point prior tweets on MOXC default

Composition what's on the 22 slides

Visual + textual elements counted across every slide in this deck. Hover a box for what that element is; click to see every slide in the corpus that uses it.

Chart types used in this deck

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Notes

Classic Wolfpack short-seller research note format: Word-style prose body with embedded screenshots of Chinese government databases (Qixinbao, MIIT, Samoan registry, Open Corporates) as evidence. Strong evidence-as-image rhetoric — every claim is anchored to a screenshot. Corporate-structure shell map on p.10 with red callout annotations is the most slide-worthy visual; Bloomberg chart on p.14 annotates 'Btab deal announced/terminated' and 'Spruce Point Tweets' as catalysts on a 2,318% pump. Author byline is institutional (Wolfpack Research / WPR LLC), no named individual signatory.