Business Warrior Corporation terminated its employment agreement with Timothy Li for cause as further described below. On October 19, 2022, a majority of the voting power of the Company voted to remove Timothy Li as a director of the Company. On October 13, 2022, in the course of a review of the financial statements of Fluidfi Inc., d/b/a Alchemy, a wholly owned subsidiary of the Company (acquired on June 8, 2022, it was discovered that Timothy Li transferred $200,000 from the FluidFi bank account to his personal account on June 18, 2022, without authorization.

Mr. Li provided a notation on the transfer that it was for “basic employee payroll.” However, this was not a transfer to an employee payroll account. Instead, Mr. Li processed a direct ACH transfer from the Fluidfi bank account to his personal account. Mr. Li was not authorized to transfer any Company funds to himself.

At the time of the unauthorized transfer, the Company was in the process of transitioning all FluidFi related accounts to Business Warrior's financial staff. Mr. Li, previously an officer of FluidFi had access to the account prior to the Company's acquisition of FluidFi and was participating in the transition of FluidFi's financial and other accounts to the Company, where Mr. Li had the position of Chief Technology Officer and as a member of Business Warrior's board of directors prior to his termination.