What changed in this filing

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Item 1A. Risk Factors

2023-02-14 compared with 2022-11-14 · 64 added, 1 removed, 16 unchanged (80% of the section changed)

9 unchanged sentences

and “Notes to Consolidated Financial Statements” in this Quarterly Report on Form 10-Q.

There have been no material changes

There has been a material change

to the Risk Factors described in Part I “Item 1A.

1 unchanged sentence

fiscal year ended June 30, 2022 as filed with the SEC.

following additional risk factor should be added to the discussions under Part I, Item 1A, “Risk Factors” in the Company’s

Annual Report on Form 10-K for the fiscal year ended June 30, 2022.

particular digital asset’s status as a “security” in any relevant jurisdiction is subject to a high degree of uncertainty,

and if we are unable to correctly characterize a digital asset, we may be subject to regulatory scrutiny, investigations, fines, sanctions,

penalties and other adverse consequences, including potentially becoming subject to the Investment Company Act of 1940 which would impose

significant regulatory burdens and compliance costs.

SEC and its staff have taken the position that certain digital assets fall within the definition of a “security” under the

federal securities laws.

The legal test for determining whether any given digital asset is a security is a highly complex, fact-driven

analysis that evolves over time, and the outcome is difficult to predict.

The SEC generally does not provide advance guidance or confirmation

on the status of any particular digital asset as a security.

Furthermore, the SEC’s views in this area have evolved over time and

it is difficult to predict the direction or timing of any continuing evolution.

It is also possible that a change in the governing administration

or the appointment of new SEC commissioners could substantially impact the views of the SEC and its staff.

Public statements by senior

officials at the SEC indicate that the SEC does not intend to take the position that Bitcoin or Ethereum are securities (in their current

Bitcoin and Ethereum are the only digital assets as to which senior officials at the SEC have publicly expressed such a view.

Moreover, such statements are not official policy statements by the SEC and reflect only the speakers’ views, which are not binding

on the SEC or any other agency or court and cannot be generalized to any other digital asset.

With respect to all other digital assets,

there is currently no certainty under the applicable legal test that such assets are not securities, notwithstanding the conclusions

we may draw based on our risk-based assessment regarding the likelihood that a particular digital asset could be deemed a “security”

under applicable laws.

Similarly, though the SEC’s Strategic Hub for Innovation and Financial Technology published a framework

for analyzing whether any given digital asset is a security in April 2019, this framework is also not a rule, regulation or statement

of the SEC and is not binding on the SEC.

classification of a digital asset as a security under applicable law has wide-ranging implications for the regulatory obligations that

flow from the offer, sale, trading, and clearing of such assets.

For example, a digital asset that is a security in the U.S.

may generally

only be offered or sold in the U.S.

pursuant to a registration statement filed with the SEC or in an offering that qualifies for an exemption

from registration.

Persons that effect transactions in digital assets that are securities in the U.S.

may be subject to registration

with the SEC as a “broker” or “dealer.” Platforms that bring together purchasers and sellers to trade digital

assets that are securities in the U.S.

are generally subject to registration as national securities exchanges, or must qualify for an

exemption, such as by being operated by a registered broker-dealer as an alternative trading system, or ATS, in compliance with rules

Persons facilitating clearing and settlement of securities may be subject to registration with the SEC as a clearing agency.

Foreign jurisdictions may have similar licensing, registration, and qualification requirements.

we do not currently, nor do we plan to, offer, sell, trade, and clear digital assets or take custody of others digital assets as part

of any potential Staking-as-a-Service operations we may undertake, however, digital assets we stake and validate transactions for could

be deemed to be a “security” under applicable laws.

Our blockchain infrastructure operations which entails securing blockchains

by processing and validating blockchain transactions (most analogous to Bitcoin mining or operating a Bitcoin mining pool) could be construed

as facilitating transactions in digital assets;

as such we could be subject to legal or regulatory action in the event the SEC, a foreign

regulatory authority, or a court were to determine that a blockchain we secure is a “security” under applicable laws.

our platform is not registered or licensed with the SEC or foreign authorities as a broker-dealer, national securities exchange, or ATS

(or foreign equivalents), and we do not seek to register or rely on an exemption from such registration or license to secure blockchains.

if any digital asset is deemed to be a security under any U.S.

federal, state, or foreign jurisdiction, or in a proceeding in a court

of law or otherwise, it may have adverse consequences for such digital asset.

For instance, the networks on which such digital assets

are utilized may be required to be regulated as securities intermediaries, and subject to applicable rules, which could effectively render

the network impracticable for its existing purposes.

Further, it could draw negative publicity and a decline in the general acceptance

of the digital asset.

Also, such a development may make it difficult for such supported digital asset to be traded, cleared, and custodied

as compared to other digital asset that are not considered to be securities.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors