Animoca Brands Considers Auditor Switch at AGM

Proposed Auditor Change

Animoca Brands, a prominent NFT and Metaverse company, is planning to seek approval at its upcoming Annual General Meeting (AGM) to replace its current auditor, DFK Collins, with Hall Chadwick. The potential switch was detailed in the AGM agenda.

Recent Audit Concerns

Recent audit reports from Animoca Brands have been delayed, with the 2020 report only being finalized in mid-2023. DFK Collins highlighted in the report that the company’s financial stability hinged on raising new equity funds, support from convertible note holders, and timely conversion of cryptocurrencies into fiat currencies to continue as a going concern.

Despite the concerns raised, DFK Collins maintained an unmodified opinion on the matter.

Company’s Response

Animoca Brands’ Executive Chairman, Yat Siu, refuted the going concern issues raised in the audit report. Siu emphasized the company’s strong cash and equity positions, suggesting that they remain in a stable financial state.

Financial Performance

Following the audit period up to the end of 2020, Animoca Brands continued to raise substantial capital through various fundraising efforts, totaling millions of dollars.

Future Audit Plans

Hall Chadwick, the proposed new auditor, has expressed readiness to audit Animoca Brands’ financial statements for the years 2021 through 2023.

Upon being questioned regarding the impact of the auditor switch on the company’s IPO plans, Animoca Brands has yet to respond.