Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2017 | May 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Moxian, Inc. | |
Entity Central Index Key | 1,516,805 | |
Trading Symbol | moxc | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 67,007,199 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2017 | Sep. 30, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 859,890 | $ 76,580 |
Restricted cash | 65,590 | |
Inventories | 5,553 | 9,857 |
Prepayments, deposits and other receivables, net | 167,117 | 129,024 |
Value added tax recoverable | 503,835 | 444,701 |
Deferred offering costs | 290,234 | |
Total current assets | 1,536,395 | 1,015,986 |
Restricted cash, long-term | 500,000 | |
Deferred tax assets, net | 98,581 | |
Property and equipment, net | 1,038,100 | 1,508,743 |
Intangible assets, net | 3,311,293 | |
TOTAL ASSETS | 3,074,495 | 5,934,603 |
CURRENT LIABILITIES | ||
Accruals and other payables | 1,104,651 | 1,392,200 |
Loans payable - related parties | 125,619 | 2,552,565 |
Stock subscription payables | 2,000,000 | |
Total current liabilities | 1,230,270 | 5,944,765 |
Total liabilities | 1,230,270 | 5,944,765 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY (DEFICIENCY) | ||
Preferred stock, $0.001 par value, authorized: 100,000,000 shares. Nil shares issued and outstanding | ||
Common stock, $0.001 par value, authorized: 250,000,000 shares. 67,007,199 and 64,005,949 shares issued and outstanding as of March 31, 2017 and September 30, 2016, respectively | 67,007 | 64,006 |
Additional paid-in capital | 35,450,722 | 24,691,259 |
Accumulated deficiency | (33,842,244) | (24,988,796) |
Accumulated other comprehensive income | 168,740 | 223,369 |
Total stockholders' equity (deficiency) | 1,844,225 | (10,162) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) | $ 3,074,495 | $ 5,934,603 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 67,007,199 | 64,005,949 |
Common stock, shares outstanding | 67,007,199 | 64,005,949 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Income Statement [Abstract] | |||||
Revenues | $ 7,475 | $ 7,358 | $ 17,443 | $ 12,942 | |
Cost of revenues | (389) | (1,583) | (1,391) | (2,889) | |
Gross Profit | 7,086 | 5,775 | 16,052 | 10,053 | |
Depreciation and amortization expenses | 344,849 | 457,109 | 694,123 | 900,553 | |
Research and development | 654,418 | 625,756 | 1,351,858 | 1,514,296 | |
Impairment Charge on Intangible Assets | 2,985,181 | 2,985,181 | |||
Selling, general and administrative expenses | 1,983,534 | 1,212,913 | 3,749,633 | 2,694,739 | |
Loss from operations | (5,960,896) | (2,290,003) | (8,764,743) | (5,099,535) | |
Interest income (expenses) | (1,893) | 478 | (1,123) | 1,362 | |
Foreign exchange loss | (456,283) | (456,283) | |||
Other income (expenses), net | 7,764 | (1,052) | 7,838 | 449 | |
Loss before income tax | (5,955,025) | (2,746,860) | (8,758,028) | (5,554,007) | |
Income tax benefit (expense) | (95,420) | 21,398 | (95,420) | 24,317 | |
Net loss | (6,050,445) | (2,725,462) | (8,853,448) | (5,529,690) | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments | 276,959 | 55,719 | (54,629) | 161,157 | |
Comprehensive loss | $ (5,773,486) | $ (2,669,743) | $ (8,908,077) | $ (5,368,533) | |
Basic and diluted loss per common share (in dollars per share) | $ (0.09) | $ (0.03) | $ (0.13) | $ (0.06) | |
Basic and diluted weighted average common shares outstanding* (in shares) | [1] | 66,995,963 | 88,721,125 | 66,139,492 | 98,129,564 |
[1] | Retroactively restated for effect of 1 for 2 reverse stock split on June 20, 2016 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (Parentheticals) | 1 Months Ended |
Jun. 20, 2016 | |
Income Statement [Abstract] | |
Reverse stock split ratio, description | 1 for 2 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (8,853,448) | $ (5,529,690) |
Adjustments to reconcile net loss to cash used in operating activities | ||
Depreciation and amortization | 694,123 | 900,553 |
Loss on disposition of property, plant and equipment | 11,124 | |
Impairment charge on intangible assets | 2,985,181 | |
Deferred tax (benefits) expense | 95,420 | (24,317) |
Changes in operating assets and liabilities: | ||
Restricted cash | 63,762 | |
Inventories | 4,107 | 3,999 |
Prepayments, deposits and other receivables | (116,173) | 342,440 |
Accruals and other payables | (273,082) | 4,887 |
Net cash used in operating activities | (5,388,986) | (4,302,128) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (3,998) | (280,226) |
Purchase of intangible assets | (11,137) | (178,543) |
Net cash used in investing activities | (15,135) | (458,769) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from related party loans | 3,195,296 | 673,222 |
Repayment of related party loans | (5,582,602) | (851,229) |
Initial Public Offering proceeds deposited in an indemnification escrow, restricted cash | (500,000) | |
Gross proceeds from Initial Public Offering - stock issuance | 10,005,000 | |
Direct costs disbursed from Initial Public Offering proceeds | (927,303) | |
Proceeds from private placement - stock issuance | 2,684,105 | |
Net cash provided by financing activities | 6,190,391 | 2,506,098 |
Effect of exchange rates on cash and cash equivalents | (2,960) | (20,385) |
Net increase (decrease) in cash and cash equivalents | 783,310 | (2,275,184) |
Cash and cash equivalents, beginning of period | 76,580 | 2,398,713 |
Cash and cash equivalents, end of period | 859,890 | 123,529 |
Supplemental cash flow disclosures: | ||
Cash paid for interest expense | ||
Cash paid for income taxes | ||
Non-cash investing and financing activities | ||
Issuance of shares for subscription payable | 2,000,000 | |
Reclassification of deferred Initial Public Offering costs to additional paid in capital | 290,234 | |
Warrants issued to placement agents in connection with the Company's Initial Public Offering | $ 280,042 | |
Issuance of shares for subscription payment received in 2015 | 5,505,915 | |
Reclassification of construction in progress to intangible assets | 829,862 | |
Cancellation of shares | $ 94,845 |
Organization and nature of oper
Organization and nature of operations | 6 Months Ended |
Mar. 31, 2017 | |
Organization and Nature of Operations [Abstract] | |
Organization and nature of operations | 1. Organization and nature of operations Moxian, Inc. (formerly known as Moxian China, Inc., hereinafter referred as “Moxian,” together with its subsidiaries and variable interest entity, the “Company”), was incorporated under the laws of the State of Nevada on October 12, 2010. The Company, through its subsidiaries and variable interest entity, engages in the business of operating a social network platform that integrates social media and business into one single platform. The Company is currently devoting its efforts to develop mobile application and online platform that facilitate the small to medium size businesses to attract more clients. The Company’s ability to generate sufficient funds to meet its working capital requirements is dependent upon its ability to develop additional sources of capital, develop apps and websites, generate servicing income, and ultimately, achieve profitable operations. On May 24, 2016 the Board of approved a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share (the “Common Stock”), at a ratio of 1-for-2 (the “Reverse Stock Split”). The Reverse Stock Split was effective on June 20, 2016 (the “Effective Date”). Simultaneously to the Reverse Stock Split, the number of shares of the Company’s authorized Common Stock was correspondingly reduced from 500,000,000 shares to 250,000,000 shares without changes in par value per share. The Company has retroactively restated all shares and per share data for all the periods presented. On November 14, 2016, the Company announced the completion of a public offering of 2,501,250 shares of its common stock at a public offering price of $4.00 per share. The gross proceeds from the offering were approximately $10,005,000 before deducting placement agents' commissions and other offering expenses, resulting in net proceeds of approximately $9.0 million, of which $500,000 was placed in an indemnification escrow account. In connection with the offering, the Company's common stock began trading on the NASDAQ Capital Market beginning on November 15, 2016 under the symbol "MOXC". |
Summary of principal accounting
Summary of principal accounting policies | 6 Months Ended |
Mar. 31, 2017 | |
Summary of Principal Accounting Policies [Abstract] | |
Summary of principal accounting policies | 2. Summary of principal accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and reflect the activities of the following subsidiaries and VIE: Moxian CN Samoa, Moxian BVI, Moxian HK, Moxian Shenzhen, Moxian Malaysia, Moyi, Moxian Beijing and Moxian IP Samoa. All material intercompany transactions and balances have been eliminated in the consolidation. The unaudited interim condensed consolidated financial information as of March 31, 2017 and for the three and six months ended March 31, 2017 and 2016 have been prepared, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-K for the fiscal year ended September 30, 2016, previously filed with the SEC. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of March 31, 2017 and its unaudited condensed consolidated results of operations for three and six months ended March 31, 2017 and 2016, and its unaudited condensed consolidated cash flows for the six months ended March 31, 2017 and 2016, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Liquidity and Capital Resources In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. On November 14, 2016, the Company completed its initial public offering (“IPO”) with net proceeds of $9.0 million after deducting placement agents’ commission and other offering costs, which helps the Company’s cash flow in fiscal 2017. As disclosed in Part II, Item 2(b) of this quarterly report, the Company has already spent approximately $8.6 million of the $9.0 million raised and is not generating sufficient revenue to maintain working capital sufficient to support its operations and finance its future growth. Although the Company hopes to increase revenues by selling advertisement space in the Xinhua New Media App and signing up more Merchant clients, its efforts through the date of this report have not resulted in significant revenue. Accordingly, the Company has recorded impairment charges on intangible assets associated with its software platform, and the Company expects to fund its cash flow shortfalls as follows: ● Financial support commitments from two of the Company’s major stockholders and two of the Company’s related parties; and ● Seeking additional public and/or private issuance of securities. The Company does not currently have sufficient cash or commitments for financing to sustain its operations for the next twelve months. The Company plans to increase the cash flows through related party financing and other public or private placements. If the Company’s financing and private placements do not reach the level anticipated in its plan, and the Company is unable to obtain the necessary additional capital on a timely basis, on acceptable terms, and at all, the Company may be unable to implement its current plans for expansion, repay debt obligations or respond to competitive pressures, any of which would have a material adverse effect on its business, prospects, financial condition and results of operations. However, there can be no assurance that management will be successful in their plans. All of these factors raise substantial doubt about the ability of the Company to continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Risks and Uncertainties The Company’s operations are substantially carried out in the PRC”). Accordingly, the Company’s business, financial condition and results of operations maybe substantially influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Fair value of financial instruments The Company follows the provisions of Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect management’s assumptions based on the best available information. The carrying value of cash and cash equivalents, restricted cash, prepayments, deposits and other receivables, Value added tax recoverable, accruals and other payables, loans from related parties and stock subscription payable approximate their fair values because of the short-term nature of these instruments. Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the accompanying unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates required to be made by management include but not limited to, useful lives of property and equipment, intangible assets valuation, inventory valuation, cash flows projection and deferred tax assets. Actual results could differ from those estimates. Revenue recognition The Company currently recognizes revenue from the sale of merchandise through its online platforms. Revenue is recognized when persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price is fixed or determinable; and collectability is reasonably assured. Revenue was recorded on a gross basis, net of surcharges and value added tax ("VAT") of gross sales. The Company recorded revenue on a gross basis because the Company has the following indicators for gross reporting: it is the primary obligor of the sales arrangements, is subject to inventory risks of physical loss, has latitude in establishing prices, has discretion in suppliers' selection and assumes credit risks on receivables from customers. Restricted Cash Restricted cash represents cash held by depository banks in order to comply with the provisions of certain of debt agreements, as well as the cash held in an indemnification escrow account related to requirements of financing agreement signed with the underwriter for a two-year period subsequent to the IPO. Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation and impairment. Significant additions or improvements extending useful lives of assets are capitalized. Maintenance and repairs are charged to expense as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives as follows: Electronic equipment 3-5 years Furniture and fixtures 3-5 years Leasehold improvements Shorter of estimated useful life or term of lease Intangible assets, net Intangible assets, comprising Intellectual property rights (“IP rights”) and software, which are separable from property and equipment, are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of 3- 10 years. Impairment of long-lived assets The Company classifies its long-lived assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – lived intangible assets. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary. The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Company’s business strategy and its forecasts for specific market expansion. Due to the continuing losses from operations with minimal revenues, the Company recognized an impairment loss of $2,985,181 for the IP rights and other intangible assets during the three and six months ended March 31, 2017. Income taxes The Company utilizes ASC Topic 740 (“ASC 740”) “Income taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the unaudited condensed consolidated financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 “Income taxes” clarifies the accounting for uncertainty in tax positions. This interpretation requires that an entity recognizes in the unaudited condensed consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the unaudited consolidated statements of operations and comprehensive loss. The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of March 31, 2017 and September 30, 2016, the Company did not have any unrecognized tax benefits. The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. Foreign currency transactions and translation The reporting currency of the Company is United States Dollars (the “USD”) and the functional currency of Moxian Shenzhen, Moyi and Moxian Beijing is Renminbi (the “RMB”) as China is the primary economic environment in which they operate, the functional currency of Moxian HK is Hong Kong Dollar (the “HKD”), and the functional currency of Moxian Malaysia is Malaysia Ringgit (the “MYR”). For financial reporting purposes, the financial statements of Moxian Shenzhen, Moyi, Moxian Beijing, Moxian HK and Moxian Malaysia, which are prepared using their respective functional currencies, are translated into the reporting currency, USD, so to be consolidated with the Company’s. Monetary assets and liabilities denominated in currencies other than the reporting currency are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Revenues and expenses are translated using average rates prevailing during the reporting period. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in stockholders’ equity (deficiency). Transaction gains and losses are recognized in the results of operations. The exchange rates applied are as follows: Balance sheet items, except for equity accounts March 31, September 30, RMB:USD 6.8912 6.6702 HKD:USD 7.7707 7.7550 MYR:USD 4.4255 4.1356 Items in the unaudited condensed consolidated statements of operations and comprehensive loss, and unaudited condensed consolidated statements of cash flows Six Months Ended 2017 2016 RMB:USD 6.8614 6.3907 HKD:USD 7.7590 7.7506 MYR:USD 4.3860 4.2821 Research and Development Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other related expenses associated with product development. Research and development expenses also include third-party development, programming costs, and localization costs incurred to translate software for local markets. Such costs related to software development are included in research and development expense until the point that technological feasibility is reached. Once technological feasibility is reached, such costs are capitalized and amortized to the cost of revenue over the estimated lives of the products. Recent accounting pronouncements In October 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-17, Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control, to provide guidance on the evaluation of whether a reporting entity is the primary beneficiary of a VIE by amending how a reporting entity, that is a single decision maker of a VIE, treats indirect interests in that entity held through related parties that are under common control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this ASU will not have any impact to the Company’s unaudited condensed consolidated financial statements as the Company did not have any interest held through related parties with common control. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash". The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this ASU on the statement of cash flows will increase cash and cash equivalents by the amount of the restricted cash on the Company’s unaudited condensed consolidated financial statements. In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this Accounting Standards Update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Basically these amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments in this ASU first, require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and second, remove the evaluation of whether a market participant could replace missing elements. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company does not expect that the adoption of this guidance will have a material impact on its unaudited condensed consolidated financial statements. |
Prepayments, deposits and other
Prepayments, deposits and other receivables net | 6 Months Ended |
Mar. 31, 2017 | |
Prepayments, Deposits and Other Receivables, Net [Abstract] | |
Prepayments, deposits and other receivables, net | 3. Prepayments, deposits and other receivables, net March 31, September 30, Prepayments to suppliers $ 38,530 $ 19,496 Rental and other deposits 104,531 107,994 Employee advances and others 41,767 20,093 Sub total 184,828 147,583 Less: allowance for doubtful accounts (17,711 ) (18,559 ) Prepayments, deposits and other receivables, net $ 167,117 $ 129,024 |
Property and equipment, net
Property and equipment, net | 6 Months Ended |
Mar. 31, 2017 | |
Property and Equipment, Net [Abstract] | |
Property and equipment, net | 4. Property and equipment, net March 31, September 30, Electronic equipment $ 2,229,819 $ 2,300,666 Furniture and fixtures 83,179 86,029 Leasehold improvements 349,150 397,443 Total property and equipment 2,662,148 2,784,138 Less: Accumulated depreciation and amortization (1,624,048 ) (1,275,395 ) Total property and equipment, net $ 1,038,100 $ 1,508,743 Depreciation and amortization expense for the three and six months ended March 31, 2017 were $206,633 and $417,421, respectively. Depreciation and amortization expense for the three and six months ended March 31, 2016 were $226,642 and $450,066, respectively. |
Intangible assets
Intangible assets | 6 Months Ended |
Mar. 31, 2017 | |
Intangible Assets, Net [Abstract] | |
Intangible assets | 5. Intangible assets March 31, September 30, IP rights $ 1,410,335 $ 3,460,335 Other intangible assets 379,464 1,376,122 1,789,799 $ 4,836,457 Less: accumulated amortization (1,789,799 ) (1,525,164 ) Net intangible assets $ - $ 3,311,293 No significant residual value is estimated for these intangible assets. Aggregate amortization expense for the three and six months ended March 31, 2017 totaled $138,216 and $276,702, respectively. Amortization expense for the three and six months ended March 31, 2016 totaled $230,467 and $450,487, respectively. Due to the continuing losses from operations with minimal revenues, the Company recognized an impairment loss of $2,985,181 for the IP rights and other intangible assets during the three and six months ended March 31, 2017. As of March 31, 2017, the net carrying value of intangible assets was nil. |
Related party transactions and
Related party transactions and balances | 6 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions and Balances [Abstract] | |
Related party transactions and balances | 6. Related party transactions and balances The table below sets forth related parties having transactions during the three and six months ended March 31, 2017 and balances as of March 31, 2017 and September 30, 2016, respectively. Name Relationship with the Company Jet Key Limited (“Jet Key”) A below 1% shareholder of the Company Shenzhen Bayi Consulting Co. Ltd. (“Bayi”) A below 5% shareholder of the Company Ace Keen Limited (“Ace Keen”) A below 1% shareholder of the Company Moxian China Limited A 26.8% shareholder of the Company Zhang Xin A below 5% shareholder of the Company Beijing Xinhua Huifeng Equity Investment Center (“Xinhua”) A Shareholder of the Company (see note 7) Zhongtou Huifeng Investment Management (Beijing) Co. Ltd Affiliated company of Xinhua Mr. Hao Qing Hu A director of the Company Vertical Venture Capital Group (“Vertical Venture”), formerly Morolling International HK Limited A below 1% shareholder of the Company Details of stock subscription payables are as follows: Nature and Company March 31, September 30, Bayi $ - $ 1,434,189 Moxian China Limited - 565,811 $ - $ 2,000,000 On January 3, 2017, the Company issued 500,000 shares of its common stock to Bayi and Moxian China Limited at a price of $4.00 per share in full settlement of stock subscription payable in accordance to the note conversion agreements signed on September 7, 2016 (see note 7). Details of loans payable – related parties are as follows: Nature and Company March 31, September 30, Loan payable – related parties Bayi $ 2,781 $ 543,655 Vertical Venture 122,838 914,014 Moxian China Limited - 170,714 Jet Key - 206,780 Ace Keen - 98,473 Hao Qing Hu - 10,562 Zhang Xin - 98,969 Zhongtou - 16,161 Xinhua - 493,237 $ 125,619 $ 2,552,565 For the three month period ended March 31, 2017, the Company borrowed the loans, net of the repayments, aggregating $2,052 from Vertical Venture and Bayi. For the six months period ended March 31, 2017, the Company repaid the loans, net of additional borrowings, aggregating $2,387,305 from Vertical Venture, Moxian China Limited, Ace Keen, Hao Qing Hu, Zhang Xin, Zhongtou, Jet Key, Xinhua and Bayi. For the three months period ended March 31, 2016, the Company repaid the loans, net of additional borrowings, aggregating $953,890 from Moxian China Limited, Zhang Xin, Ace Keen, Zhongtou and Xinhua, respectively. For the six months ended March 31, 2016, the Company repaid the loans, net of additional borrowings, aggregating $178,007 from Moxian China Limited, Zhang Xin, Ace Keen, Zhongtou and Xinhua, respectively. The loans and advance made by shareholders to Moxian HK, Moxian Shenzhen, Moyi, Moxian Beijing and Moxian Malaysia are unsecured, interest free and due on various dates specified in the loan agreements. Bayi During six months ended March 31, 2017, Moxian Shenzhen and Bayi entered into various loan agreements whereby Bayi agreed to provide a loan to Moxian Shenzhen in aggregate of $2,640,076 (RMB 18,114,695) without interest and due on demand. Moyi and Bayi further entered into two loan agreements whereby Bayi agreed to provide a loan to Moyi in aggregate of $96,190 (RMB 660,000) without interest and due on demand. During the six months ended March 31, 2017, Moxian Shenzhen repaid $3,165,789 (RMB 21,721,834) to Bayi and Moyi repaid $96,190 (RMB 660,000) to Bayi. As of March 31, 2017 and September 30, 2016, the loan payable balance to Bayi was $2,781 and $543,655, respectively. Vertical Venture During six months ended March 31, 2017, Moxian HK and Vertical Venture entered into various loan agreements whereby Vertical Venture agreed to provide a loan to Moxian HK in aggregate of $553,781 (HKD 4,296,810) without interest and due on demand. During six months ended March 31, 2017, Moxian HK repaid $1,339,579 (HKD10,393,844) to Vertical Venture. As of March 31, 2017 and September 30, 2016, the loan payable balance to Vertical Venture was $127,546 and $914,014, respectively. Moxian China Limited During six months ended March 31, 2017, Moxian Malaysia received a repayment from Moxian China Limited in aggregate of $96,158 (MYR 421,750). In addition, Moxian HK repaid $272,552 (HKD 2,114,739) to Moxian China Limited. As of March 31, 2017 and September 30, 2016, the loan payable balance to Moxian China Limited was $Nil and $170,714, respectively. Jet Key During six months ended March 31, 2017, Moyi repaid $74,329 (RMB 510,000) to Jet Key and Moxian Malaysia repaid $122,879 (MAL 538,950) to Jet Key. As of March 31, 2017 and September 30, 2016, the balance due to Jet Key was $Nil and $206,780, respectively. The balance bears no interest and is due on demand. Ace Keen During six months ended March 31, 2017, Moxian HK and Ace Keen entered into a loan agreement whereby Ace Keen agreed to provide a loan to Moxian HK in aggregate of $17,962 (HKD 139,730) without interest and due on demand. During six months ended March 31, 2017, Moxian HK repaid $93,907 (HKD 728,629) and Moyi repaid $21,861 (HKD 150,000) to Ace Keen. As of March 31, 2017 and September 30, 2016, the loan payable balance to Ace Keen was $Nil and $98,473, respectively. Hao Qing Hu During six months ended March 31, 2017, Moxian Beijing received advances from Hao Qing Hu in aggregate of $10,847 (RMB 74,423) without interest and due on demand. During six months ended March 31, 2017, Moxian Beijing repaid $21,114 (RMB 144,871) to Hao Qing Hu. As of March 31, 2017 and September 30, 2016, the loan payable balance to Hao Qing Hu was $Nil and $10,562, respectively. Zhang Xin During six months ended March 31, 2017, Moxian HK repaid $98,917 (HKD 767,500) to Zhang Xin. As of March 31, 2017 and September 30, 2016, the loan payable balance to Zhang Xin was $Nil and $98,969, respectively. Zhongtou During six months ended March 31, 2017, Moxian Beijing repaid $15,711 (RMB 107,800) to Zhongtou. As of March 31, 2017 and September 30, 2016, the loan payable balance to Zhongtou was $Nil and $16,161, respectively. Xinhua During six months ended March 31, 2017, Moxian Beijing repaid $107,849 (RMB 740,000) to Xinhua and Moxian Shenzhen repaid $371,643 (RMB 2,550,000) to Xinhua. As of March 31, 2017 and September 30, 2016, the loan payable balance to Xinhua was $Nil and $493,237, respectively. |
Capital stock
Capital stock | 6 Months Ended |
Mar. 31, 2017 | |
Capital Stock [Abstract] | |
Capital stock | 7. Capital stock Note Conversion On September 7, 2016, the Company entered into two note conversion agreements with Bayi and Moxian China Limited. The note conversion agreements permitted for the conversion of promissory notes in the aggregate amount of $2 million payable by the Company into shares of the Company’s common stock at the IPO price. The Company announced a successful completion of its IPO on November 14, 2016 with an IPO price of $4.00 per share. As of December 31, 2016, the Company included the $2 million worth of shares to be issued as stock subscription payable in accordance with ASC 480-10-25-14. On January 3, 2017, the Company issued 500,000 shares of its common stock to Bayi and Moxian China Limited at a price of $4.00 per share in full settlement of stock subscription payables in accordance to the note conversion agreements signed on September 7, 2016 (see Note 6). Cancellation of shares On February 22, 2016, Good Eastern Investment Limited (“GEL”), Stellar Elite Limited (“SEL”) and Moxian China Limited (“MCL”), collectively, the Designated Shareholders, entered into a Share Cancellation Agreement (the “Agreement”) with the Company. Pursuant to the Agreement, on February 22, 2016, the Designated Shareholders cancelled 47,422,540 shares of the Company common stock which represented 42.93% of the Company’s issued and outstanding shares for no consideration. The cancelled shares resulted in GEL, SEL and MCL, respectively owning after the share cancellation 9,990,000, 19,830,000 and 17,602,540 shares of common stock or any other securities of the Company. Public Offering Warrants In connection with and upon closing of the Public Offering on November 14, 2016, the Company issued warrants equal to four percent (4%) of the shares issued in the Public Offering, totaling 100,050 units to the placement agents for the offering. The warrants carry a term of five years, and shall not be exercisable for a period of six months from the closing of the Public Offering and shall be exercisable at a price equal to $4.60 per share. Management determined that these warrants meet the definition of a derivative under ASC 815-40, however, they fall under the scope exception which states that contracts issued that are both a) indexed to its own stock; and b) classified in stockholders' equity are not considered derivatives. The warrants were recorded at their fair value on the date of grant as a component of stockholders’ equity. The aggregated fair value of the Public Offering Warrants on November 14, 2016 was $280,042. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying stock of $4.09; risk free rate of 1.66%; expected term of 5 years; exercise price of the warrants of $4.60; volatility of 90.7%; and expected future dividends of Nil. |
Income taxes
Income taxes | 6 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Income taxes | 8. Income taxes The Company and its subsidiaries file separate income tax returns. The United States of America Moxian is incorporated in the State of Nevada in the U.S., and is subject to a gradual U.S. federal corporate income tax of 15% to 35%. The State of Nevada does not impose any state corporate income tax. As of March 31, 2017, future net operation losses of approximately $6.4 million are available to offset future operating income through 2036. British Virgin Islands Moxian BVI is incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, Moxian BVI is not subject to tax on income or capital gains. In addition, upon payments of dividends by Moxian BVI, no British Virgin Islands withholding tax is imposed. Hong Kong Moxian HK is incorporated in Hong Kong and Hong Kong’s profits tax rate is 16.5%. Moxian HK did not earn any income that was derived in Hong Kong for the three and six months ended March 31, 2017 and 2016, and therefore, Moxian HK was not subject to Hong Kong Profits Tax. Malaysia Management estimated that Moxian Malaysia will not generate any taxable income in the future. PRC Effective from January 1, 2008, the PRC’s statutory income tax rate is 25%. The Company’s PRC subsidiaries are subject to income tax rate of 25%, unless otherwise specified. Moxian Shenzhen was incorporated in the PRC. Moxian Shenzhen did not generate taxable income in the PRC for the period from April 8, 2013 (date of inception) to December 31, 2016. Management estimated that Moxian Shenzhen will not generate any taxable income in the future. Moyi was incorporated in the People’s Republic of China. Moyi did not generate taxable income in the PRC for the period from July 19, 2013 (date of inception) to March 31, 2017. Moxian Beijing was incorporated in the PRC. Moxian Beijing did not generate taxable income in the PRC for the period from December 10, 2015 (date of inception) to March 31, 2017. Because of the uncertainty regarding the Company’s ability to realize its deferred tax assets, a 100% valuation allowance has been established as of March 31, 2017. As of September 30, 2016, the Company had a deferred tax asset of $98,581, resulting from certain net operating losses in PRC. As of March 31, 2017 and September 30, 2016, the valuation allowance was approximately $7.2 million and $5.8 million, respectively. $0.8 million and $1.4 million of an increase in the valuation allowance for the three and six months period ended March 31, 2017. For the three and six months period ended March 31, 2016, the increase in valuation allowance was approximately $0.01 million and $0.3 million respectively. March 31, September 30, Deferred tax asset from net operating loss carry-forwards $ 7,176,965 $ 5,876,564 Valuation allowance (7,176,965 ) (5,777,983 ) Deferred tax asset, net $ - $ 98,581 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | 9. Commitments and contingencies Operating Lease The Company leases a number of properties under operating leases. Rental expenses under operating leases for the three and six months ended March 31, 2017 were $159,575 and $328,405 respectively. Rental expenses under operating leases for the three and six months ended March 31, 2016 were $237,186 and $418,595, respectively. As of March 31, 2017, the Company was obligated under non-cancellable operating leases for minimum rentals as follows: For the Twelve Months Ending March 31, 2017 $ 555,643 2018 106,727 Total minimum lease payments $ 662,370 Arrangement with Xinhua New Media Co., Ltd The Company entered into an exclusive advertising agency agreement and sponsor agreement with Xinhua New Media Co., Ltd (“Xinhua New Media”). Pursuant to the agreement, the Company, as an exclusive agent, is authorized to operate and sell advertisement on Xinhua New Media’s mobile application in the gaming channel and sponsor related advertising events. The exclusive advertising agency agreement and sponsor agreement expire on December 31, 2020 and December 31, 2017, respectively. The Company entered into amendments with Xinhua News Media for both the agency agreement and sponsor agreement during the six months ended March 31, 2017. The fees payable for the period ended March 31, 2017 under the amended exclusive advertising agency agreement and sponsor agreement have been reduced. The amended payment schedule as of March 31, 2017 for the exclusive agency agreement and sponsor agreement is listed below: For the Twelve Months Ending March 31, 2018 $ 1,791,529 March 31, 2019 1,457,422 March 31, 2020 1,457,422 March 31, 2021 1,093,067 Total agency payments $ 5,799,440 For the six months ended March 31, 2017 and 2016, the Company incurred $120,994 and $Nil advertising agent fee expense, respectively. For the three months ended March 31, 2017 and 2016, the Company incurred $365,287 and $Nil advertising agent fee expense, respectively. For the six months ended March 31, 2017 and 2016, the Company incurred $45,831 and $110,900 sponsor expense, respectively. For the three months ended March 31, 2017 and 2016, the Company incurred $95,064 and $Nil sponsor expense, respectively. These expenses were included in the selling, general and administrative expense. Legal Proceeding There has been no legal proceeding in which the Company is a party as of as of March 31, 2017. |
Summary of principal accounti16
Summary of principal accounting policies (Policies) | 6 Months Ended |
Mar. 31, 2017 | |
Summary of Principal Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and reflect the activities of the following subsidiaries and VIE: Moxian CN Samoa, Moxian BVI, Moxian HK, Moxian Shenzhen, Moxian Malaysia, Moyi, Moxian Beijing and Moxian IP Samoa. All material intercompany transactions and balances have been eliminated in the consolidation. The unaudited interim condensed consolidated financial information as of March 31, 2017 and for the three and six months ended March 31, 2017 and 2016 have been prepared, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-K for the fiscal year ended September 30, 2016, previously filed with the SEC. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of March 31, 2017 and its unaudited condensed consolidated results of operations for three and six months ended March 31, 2017 and 2016, and its unaudited condensed consolidated cash flows for the six months ended March 31, 2017 and 2016, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. |
Liquidity and Capital Resources | Liquidity and Capital Resources In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. On November 14, 2016, the Company completed its initial public offering (“IPO”) with net proceeds of $9.0 million after deducting placement agents’ commission and other offering costs, which helps the Company’s cash flow in fiscal 2017. As disclosed in Part II, Item 2(b) of this quarterly report, the Company has already spent approximately $8.6 million of the $9.0 million raised and is not generating sufficient revenue to maintain working capital sufficient to support its operations and finance its future growth. Although the Company hopes to increase revenues by selling advertisement space in the Xinhua New Media App and signing up more Merchant clients, its efforts through the date of this report have not resulted in significant revenue. Accordingly, the Company has recorded impairment charges on intangible assets associated with its software platform, and the Company expects to fund its cash flow shortfalls as follows: ● Financial support commitments from two of the Company’s major stockholders and two of the Company’s related parties; and ● Seeking additional public and/or private issuance of securities. The Company does not currently have sufficient cash or commitments for financing to sustain its operations for the next twelve months. The Company plans to increase the cash flows related party financing and other public or private placements. If the Company’s financing and private placements do not reach the level anticipated in its plan, and the Company is unable to obtain the necessary additional capital on a timely basis, on acceptable terms, and at all, the Company may be unable to implement its current plans for expansion, repay debt obligations or respond to competitive pressures, any of which would have a material adverse effect on its business, prospects, financial condition and results of operations. However, there can be no assurance that management will be successful in their plans. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Risks and Uncertainties | Risks and Uncertainties The Company’s operations are substantially carried out in the PRC”). Accordingly, the Company’s business, financial condition and results of operations maybe substantially influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. |
Fair value of financial instruments | Fair value of financial instruments The Company follows the provisions of Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect management’s assumptions based on the best available information. The carrying value of cash and cash equivalents, restricted cash, prepayments, deposits and other receivables, Value added tax recoverable, accruals and other payables, loans from related parties and stock subscription payable approximate their fair values because of the short-term nature of these instruments. |
Use of estimates | Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the accompanying unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates required to be made by management include but not limited to, useful lives of property and equipment, intangible assets valuation, inventory valuation, cash flows projection and deferred tax assets. Actual results could differ from those estimates. |
Revenue recognition | Revenue recognition The Company currently recognizes revenue from the sale of merchandise through its online platforms. Revenue is recognized when persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price is fixed or determinable; and collectability is reasonably assured. Revenue was recorded on a gross basis, net of surcharges and value added tax ("VAT") of gross sales. The Company recorded revenue on a gross basis because the Company has the following indicators for gross reporting: it is the primary obligor of the sales arrangements, is subject to inventory risks of physical loss, has latitude in establishing prices, has discretion in suppliers' selection and assumes credit risks on receivables from customers. |
Restricted cash | Restricted Cash Restricted cash represents cash held by depository banks in order to comply with the provisions of certain of debt agreements, as well as the cash held in an indemnification escrow account related to requirements of financing agreement signed with the underwriter for a two-year period subsequent to the IPO. |
Property and Equipment, net | Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation and impairment. Significant additions or improvements extending useful lives of assets are capitalized. Maintenance and repairs are charged to expense as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives as follows: Electronic equipment 3-5 years Furniture and fixtures 3-5 years Leasehold improvements Shorter of estimated useful life or term of lease |
Intangible assets, net | Intangible assets, net Intangible assets, comprising Intellectual property rights (“IP rights”) and software, which are separable from property and equipment, are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of 3- 10 years. |
Impairment of long-lived assets | Impairment of long-lived assets The Company classifies its long-lived assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – lived intangible assets. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary. The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Company’s business strategy and its forecasts for specific market expansion. Due to the continuing losses from operations with minimal revenues, the Company recognized an impairment loss of $2,985,181 for the IP rights and other intangible assets during the three and six months ended March 31, 2017. |
Income taxes | Income taxes The Company utilizes ASC Topic 740 (“ASC 740”) “Income taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the unaudited condensed consolidated financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 “Income taxes” clarifies the accounting for uncertainty in tax positions. This interpretation requires that an entity recognizes in the unaudited condensed consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the unaudited consolidated statements of operations and comprehensive The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of March 31, 2017 and September 30, 2016, the Company did not have any unrecognized tax benefits. The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. |
Foreign currency transactions and translation | Foreign currency transactions and translation The reporting currency of the Company is United States Dollars (the “USD”) and the functional currency of Moxian Shenzhen, Moyi and Moxian Beijing is Renminbi (the “RMB”) as China is the primary economic environment in which they operate, the functional currency of Moxian HK is Hong Kong Dollar (the “HKD”), and the functional currency of Moxian Malaysia is Malaysia Ringgit (the “MYR”). For financial reporting purposes, the financial statements of Moxian Shenzhen, Moyi, Moxian Beijing, Moxian HK and Moxian Malaysia, which are prepared using their respective functional currencies, are translated into the reporting currency, USD, so to be consolidated with the Company’s. Monetary assets and liabilities denominated in currencies other than the reporting currency are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Revenues and expenses are translated using average rates prevailing during the reporting period. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in stockholders’ equity (deficiency). Transaction gains and losses are recognized in the results of operations. The exchange rates applied are as follows: Balance sheet items, except for equity accounts March 31, September 30, RMB:USD 6.8912 6.6702 HKD:USD 7.7707 7.7550 MYR:USD 4.4255 4.1356 Items in the unaudited condensed consolidated statements of operations and comprehensive loss, and unaudited condensed consolidated statements of cash flows Six Months Ended 2017 2016 RMB:USD 6.8614 6.3907 HKD:USD 7.7590 7.7506 MYR:USD 4.3860 4.2821 |
Research and Development | Research and Development Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other related expenses associated with product development. Research and development expenses also include third-party development, programming costs, and localization costs incurred to translate software for local markets. Such costs related to software development are included in research and development expense until the point that technological feasibility is reached. Once technological feasibility is reached, such costs are capitalized and amortized to the cost of revenue over the estimated lives of the products. |
Recent accounting pronouncements | Recent accounting pronouncements In October 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-17, Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control, to provide guidance on the evaluation of whether a reporting entity is the primary beneficiary of a VIE by amending how a reporting entity, that is a single decision maker of a VIE, treats indirect interests in that entity held through related parties that are under common control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this ASU will not have any impact to the Company’s unaudited condensed consolidated financial statements as the Company did not have any interest held through related parties with common control. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash". The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this ASU on the statement of cash flows will increase cash and cash equivalents by the amount of the restricted cash on the Company’s unaudited condensed consolidated financial statements. In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this Accounting Standards Update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Basically these amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments in this ASU first, require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and second, remove the evaluation of whether a market participant could replace missing elements. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company does not expect that the adoption of this guidance will have a material impact on its unaudited condensed consolidated financial statements. |
Summary of principal accounti17
Summary of principal accounting policies (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Summary of Principal Accounting Policies [Abstract] | |
Schedule of straight-line method over the estimated useful lives | Electronic equipment 3-5 years Furniture and fixtures 3-5 years Leasehold improvements Shorter of estimated useful life or term of lease |
Summary of exchange rates of balance sheet items, except for equity accounts | Balance sheet items, except for equity accounts March 31, September 30, RMB:USD 6.8912 6.6702 HKD:USD 7.7707 7.7550 MYR:USD 4.4255 4.1356 |
Schedule of exchange rates of statements of operations and comprehensive loss, and statements cash flows | Six Months Ended 2017 2016 RMB:USD 6.8614 6.3907 HKD:USD 7.7590 7.7506 MYR:USD 4.3860 4.2821 |
Prepayments, deposits and oth18
Prepayments, deposits and other receivables net (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Prepayments, Deposits and Other Receivables, Net [Abstract] | |
Schedule on prepayments deposits and other receivable | March 31, September 30, Prepayments to suppliers $ 38,530 $ 19,496 Rental and other deposits 104,531 107,994 Employee advances and others 41,767 20,093 Sub total 184,828 147,583 Less: allowance for doubtful accounts (17,711 ) (18,559 ) Prepayments, deposits and other receivables, net $ 167,117 $ 129,024 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Property and Equipment, Net [Abstract] | |
Schedule of property and equipment, net | March 31, September 30, Electronic equipment $ 2,229,819 $ 2,300,666 Furniture and fixtures 83,179 86,029 Leasehold improvements 349,150 397,443 Total property and equipment 2,662,148 2,784,138 Less: Accumulated depreciation and amortization (1,624,048 ) (1,275,395 ) Total property and equipment, net $ 1,038,100 $ 1,508,743 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Intangible Assets, Net [Abstract] | |
Schedule of intangible assets | March 31, September 30, IP rights $ 1,410,335 $ 3,460,335 Other intangible assets 379,464 1,376,122 1,789,799 $ 4,836,457 Less: accumulated amortization (1,789,799 ) (1,525,164 ) Net intangible assets $ - $ 3,311,293 |
Related party transactions an21
Related party transactions and balances (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions and Balances [Abstract] | |
Schedule of relationship of related party transactions | Name Relationship with the Company Jet Key Limited (“Jet Key”) A below 1% shareholder of the Company Shenzhen Bayi Consulting Co. Ltd. (“Bayi”) A below 5% shareholder of the Company Ace Keen Limited (“Ace Keen”) A below 1% shareholder of the Company Moxian China Limited A 26.8% shareholder of the Company Zhang Xin A below 5% shareholder of the Company Beijing Xinhua Huifeng Equity Investment Center (“Xinhua”) A Shareholder of the Company (see note 7) Zhongtou Huifeng Investment Management (Beijing) Co. Ltd Affiliated company of Xinhua Mr. Hao Qing Hu A director of the Company Vertical Venture Capital Group (“Vertical Venture”), formerly Morolling International HK Limited A below 1% shareholder of the Company |
Schedule of subscription payments payable | Nature and Company March 31, September 30, Bayi $ - $ 1,434,189 Moxian China Limited - 565,811 $ - $ 2,000,000 |
Schedule of loans payable-related party transactions | Nature and Company March 31, September 30, Loan payable – related parties Bayi $ 2,781 $ 543,655 Vertical Venture 122,838 914,014 Moxian China Limited - 170,714 Jet Key - 206,780 Ace Keen - 98,473 Hao Qing Hu - 10,562 Zhang Xin - 98,969 Zhongtou - 16,161 Xinhua - 493,237 $ 125,619 $ 2,552,565 |
Income taxes (Tables)
Income taxes (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of deferred tax assets | March 31, September 30, Deferred tax asset from net operating loss carry-forwards $ 7,176,965 $ 5,876,564 Valuation allowance (7,176,965 ) (5,777,983 ) Deferred tax asset, net $ - $ 98,581 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Schedule of operating leases minimum rentals | For the Twelve Months Ending March 31, 2017 $ 555,643 2018 106,727 Total minimum lease payments $ 662,370 |
Schedule of payments | For the Twelve Months Ending March 31, 2018 $ 1,791,529 March 31, 2019 1,457,422 March 31, 2020 1,457,422 March 31, 2021 1,093,067 Total agency payments $ 5,799,440 |
Organization and nature of op24
Organization and nature of operations (Details Textuals) - USD ($) | Nov. 14, 2016 | Jun. 20, 2016 | Mar. 31, 2017 | Sep. 30, 2016 | May 24, 2016 |
Organization and Nature of Operations (Textual) | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized | 250,000,000 | 250,000,000 | 500,000,000 | ||
Gross proceeds from offering | $ 10,005,000 | ||||
IPO proceeds deposited in indemnification escrow account | $ 500,000 | ||||
Reverse stock split ratio, description | 1 for 2 | ||||
Public offering | |||||
Organization and Nature of Operations (Textual) | |||||
Issue of common stock, shares | 2,501,250 | ||||
Price per share | $ 4 | ||||
Gross proceeds from offering | $ 10,005,000 | ||||
Net proceeds from offering | 9,000,000 | ||||
IPO proceeds deposited in indemnification escrow account | $ 500,000 |
Summary of principal accounti25
Summary of principal accounting policies (Details) | 6 Months Ended |
Mar. 31, 2017 | |
Electronic equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Electronic equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, description | Shorter of estimated useful life or term of lease |
Summary of principal accounti26
Summary of principal accounting policies (Details 1) | 6 Months Ended | ||||||||||
Mar. 31, 2017¥ / shares | Mar. 31, 2017¥ / sharesHKD / shares | Mar. 31, 2017¥ / sharesMYR / shares | Mar. 31, 2016¥ / shares | Mar. 31, 2016HKD / shares | Mar. 31, 2016MYR / shares | Mar. 31, 2017HKD / shares | Mar. 31, 2017MYR / shares | Sep. 30, 2016¥ / shares | Sep. 30, 2016HKD / shares | Sep. 30, 2016MYR / shares | |
Summary of Principal Accounting Policies [Abstract] | |||||||||||
Balance sheet items, except for equity accounts | (per share) | ¥ 6.8912 | ¥ 6.8912 | ¥ 6.8912 | HKD 7.7707 | MYR 4.4255 | ¥ 6.6702 | HKD 7.7550 | MYR 4.1356 | |||
Items in the statements of operations and comprehensive loss, and statements cash flows | (per share) | ¥ 6.8614 | ¥ 7.7590 | ¥ 4.3860 | ¥ 6.3907 | HKD 7.7506 | MYR 4.2821 |
Summary of principal accounti27
Summary of principal accounting policies (Details Textuals) - USD ($) | Nov. 14, 2016 | Mar. 31, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Summary of Principal Accounting Policies (Textual) | ||||
Current assets exceeded the current liabilities | $ 306,125 | $ 306,125 | ||
Accumulated deficit | (33,842,244) | (33,842,244) | $ (24,988,796) | |
Net proceeds from initial public offering | $ 9,000,000 | |||
Amount of IPO proceeds spend on business expansion | $ 8,600,000 | |||
Asset Impairment Charges | $ 2,985,181 | $ 2,985,181 | ||
Intellectual property rights | ||||
Summary of Principal Accounting Policies (Textual) | ||||
Intangible assets estimated useful lives | straight-line method | |||
Intellectual property rights | Minimum | ||||
Summary of Principal Accounting Policies (Textual) | ||||
Intangible assets estimated useful life (in years) | 3 years | |||
Intellectual property rights | Maximum | ||||
Summary of Principal Accounting Policies (Textual) | ||||
Intangible assets estimated useful life (in years) | 10 years |
Prepayments, deposits and oth28
Prepayments, deposits and other receivables net (Details) - USD ($) | Mar. 31, 2017 | Sep. 30, 2016 |
Prepayments, Deposits and Other Receivables, Net [Abstract] | ||
Prepayments to suppliers | $ 38,530 | $ 19,496 |
Rental and other deposits | 104,531 | 107,994 |
Employee advances and others | 41,767 | 20,093 |
Sub total | 184,828 | 147,583 |
Less: allowance for doubtful accounts | (17,711) | (18,559) |
Prepayments, deposits and other receivables, net | $ 167,117 | $ 129,024 |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) | Mar. 31, 2017 | Sep. 30, 2016 |
Summary of Property and equipment | ||
Total property and equipment | $ 2,662,148 | $ 2,784,138 |
Less: Accumulated depreciation and amortization | (1,624,048) | (1,275,395) |
Total property and equipment, net | 1,038,100 | 1,508,743 |
Electronic equipment | ||
Summary of Property and equipment | ||
Total property and equipment | 2,229,819 | 2,300,666 |
Furniture and fixtures | ||
Summary of Property and equipment | ||
Total property and equipment | 83,179 | 86,029 |
Leasehold improvements | ||
Summary of Property and equipment | ||
Total property and equipment | $ 349,150 | $ 397,443 |
Property and equipment, net (30
Property and equipment, net (Details Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property and equipment, net (Textual) | ||||
Depreciation and amortization | $ 206,633 | $ 226,642 | $ 417,421 | $ 450,066 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) | Mar. 31, 2017 | Sep. 30, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,789,799 | $ 4,836,457 |
Less: accumulated amortization | (1,789,799) | (1,525,164) |
Net intangible assets | 3,311,293 | |
IP rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,410,335 | 3,460,335 |
Other intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 379,464 | $ 1,376,122 |
Intangible assets (Details Text
Intangible assets (Details Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Intangible Assets, Net [Abstract] | ||||
Aggregate amortization expense | $ 138,216 | $ 230,467 | $ 276,702 | $ 450,487 |
Asset Impairment Charges | $ 2,985,181 | $ 2,985,181 |
Related party transactions an33
Related party transactions and balances (Details) | 6 Months Ended |
Mar. 31, 2017 | |
Jet Key Limited ("Jet Key") | |
Related Party Transaction [Line Items] | |
Relationship with the Company | A below 1% shareholder of the Company |
Shenzhen Bayi Consulting Co. Ltd. ("Bayi") | |
Related Party Transaction [Line Items] | |
Relationship with the Company | A below 5% shareholder of the Company |
Ace Keen Limited ("Ace Keen") | |
Related Party Transaction [Line Items] | |
Relationship with the Company | A below 1% shareholder of the Company |
Moxian China Limited | |
Related Party Transaction [Line Items] | |
Relationship with the Company | A 26.8% shareholder of the Company |
Zhang Xin | |
Related Party Transaction [Line Items] | |
Relationship with the Company | A below 5% shareholder of the Company |
Beijing Xinhua Huifeng Equity Investment Center ("Xinhua") | |
Related Party Transaction [Line Items] | |
Relationship with the Company | A Shareholder of the Company (see note 7) |
Zhongtou Huifeng Investment Management (Beijing) Co. Ltd | |
Related Party Transaction [Line Items] | |
Relationship with the Company | Affiliated company of Xinhua |
Mr. Hao Qing Hu | |
Related Party Transaction [Line Items] | |
Relationship with the Company | A director of the Company |
Vertical Venture Capital Group ("Vertical Venture"), formerly Morolling International HK Limited | |
Related Party Transaction [Line Items] | |
Relationship with the Company | A below 1% shareholder of the Company |
Related party transactions an34
Related party transactions and balances (Details 1) - USD ($) | Mar. 31, 2017 | Sep. 30, 2016 |
Related Party Transaction [Line Items] | ||
Subscription payments payable | $ 2,000,000 | |
Bayi | ||
Related Party Transaction [Line Items] | ||
Subscription payments payable | 1,434,189 | |
Moxian China Limited | ||
Related Party Transaction [Line Items] | ||
Subscription payments payable | $ 565,811 |
Related party transactions an35
Related party transactions and balances (Details 2) - USD ($) | Mar. 31, 2017 | Sep. 30, 2016 |
Related Party Transaction [Line Items] | ||
Amount due to related parties | $ 125,619 | $ 2,552,565 |
Bayi | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 2,781 | 543,655 |
Vertical Venture | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 122,838 | 914,014 |
Moxian China Limited | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 170,714 | |
Jet Key | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 206,780 | |
Ace Keen | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 98,473 | |
Hao Qing Hu | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 10,562 | |
Zhang Xin | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 98,969 | |
Zhongtou | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 16,161 | |
Xinhua | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | $ 493,237 |
Related party transactions an36
Related party transactions and balances (Details Textuals) | Jan. 03, 2017$ / sharesshares | Mar. 31, 2017USD ($)Loan_Agreement | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)Loan_Agreement | Mar. 31, 2017HKD | Mar. 31, 2017CNY (¥) | Mar. 31, 2017MYR | Mar. 31, 2016USD ($) | Mar. 31, 2017HKDLoan_Agreement | Mar. 31, 2017CNY (¥)Loan_Agreement | Mar. 31, 2017MYRLoan_Agreement | Nov. 14, 2016$ / shares | Sep. 30, 2016USD ($) |
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | $ 2,052 | $ 953,890 | $ 2,387,305 | $ 178,007 | |||||||||
Bayi | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Related party payable, Balance | 2,781 | 2,781 | $ 543,655 | ||||||||||
Moyi and Jet Key | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 74,329 | ¥ 510,000 | |||||||||||
Related party payable, Balance | 206,780 | ||||||||||||
Moyi and Ace Keen | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 21,861 | HKD 150,000 | |||||||||||
Moxian Hk And Zhang Xin | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 98,917 | 767,500 | |||||||||||
Related party payable, Balance | 98,969 | ||||||||||||
Moxian Hk And Ace Keen | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 93,907 | 728,629 | |||||||||||
Loan borrowed | 17,962 | 17,962 | HKD 139,730 | ||||||||||
Related party payable, Balance | 98,473 | ||||||||||||
Moxian Malaysia And Moxian China Limited | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 272,552 | 2,114,739 | |||||||||||
Loan borrowed | 96,158 | 96,158 | MYR 421,750 | ||||||||||
Related party payable, Balance | 170,714 | ||||||||||||
Moxian Shenzhen And Bayi | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 3,165,789 | 21,721,834 | |||||||||||
Loan borrowed | 2,640,076 | 2,640,076 | ¥ 18,114,695 | ||||||||||
Moxian Shenzhen And Xinhua | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 371,643 | 2,550,000 | |||||||||||
Moxian Beijing And Zhongtou | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 15,711 | 107,800 | |||||||||||
Related party payable, Balance | 16,161 | ||||||||||||
Moxian Beijing And Xinhua | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 107,849 | 740,000 | |||||||||||
Related party payable, Balance | 493,237 | ||||||||||||
Bayi and Moxian China Limited | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Shares issued as stock subscription payable | shares | 500,000 | ||||||||||||
Price per share | $ / shares | $ 4 | $ 4 | |||||||||||
Moyi And Bayi | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | $ 96,190 | 660,000 | |||||||||||
Number of loan agreement | Loan_Agreement | 2 | 2 | 2 | 2 | 2 | ||||||||
Loan borrowed | $ 96,190 | $ 96,190 | ¥ 660,000 | ||||||||||
Moxian Beijing And Hao Qing Hu | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 21,114 | 144,871 | |||||||||||
Related party payable, Balance | 10,562 | ||||||||||||
Advance from related party | 10,847 | ¥ 74,423 | |||||||||||
Vertical Venture | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | 1,339,579 | HKD 10,393,844 | |||||||||||
Loan borrowed | 553,781 | 553,781 | HKD 4,296,810 | ||||||||||
Related party payable, Balance | $ 127,546 | 127,546 | $ 914,014 | ||||||||||
Jet Key And Moxian Malaysia | |||||||||||||
Related Party Transactions and Balances (Textual) | |||||||||||||
Repayment of loan | $ 122,879 | MYR 538,950 |
Capital stock (Details Textuals
Capital stock (Details Textuals) | Jan. 03, 2017$ / sharesshares | Nov. 14, 2016USD ($)$ / sharesshares | Feb. 22, 2016shares | Dec. 31, 2016USD ($) | Mar. 31, 2017$ / shares | Sep. 07, 2016Note_Conversion |
Capital Stock (Textual) | ||||||
Common stock shares subject to cancellation | 47,422,540 | |||||
Percentage of common stock | 42.93% | |||||
IPO | ||||||
Capital Stock (Textual) | ||||||
Price per share | $ / shares | $ 4 | |||||
Warrant | ||||||
Capital Stock (Textual) | ||||||
Percentage of warrants issued equal to shares | 4.00% | |||||
Warrants issued | 100,050 | |||||
Term of Warrant | 5 years | |||||
Exercise price of warrants | $ / shares | $ 4.60 | |||||
Fair value of warrants | $ | $ 280,042 | |||||
Valuation technique | Black-Scholes pricing model | |||||
Market value of underlying stock | $ / shares | $ 4.09 | |||||
Risk free rate | 1.66% | |||||
Expected term | 5 years | |||||
Volatility | 90.70% | |||||
Expected future dividends | ||||||
Good Eastern Investment Limited | ||||||
Capital Stock (Textual) | ||||||
Common stock shares subject to cancellation | 9,990,000 | |||||
Stellar Elite Limited | ||||||
Capital Stock (Textual) | ||||||
Common stock shares subject to cancellation | 19,830,000 | |||||
Moxian China Limited | ||||||
Capital Stock (Textual) | ||||||
Common stock shares subject to cancellation | 17,602,540 | |||||
Bayi and Moxian China Limited | ||||||
Capital Stock (Textual) | ||||||
Number of note conversion agreement | Note_Conversion | 2 | |||||
Conversion of promissory notes, aggregate amount | $ | $ 2,000,000 | |||||
Shares to be issued as stock subscription payable | 500,000 | |||||
Price per share | $ / shares | $ 4 | $ 4 |
Income taxes (Details)
Income taxes (Details) - USD ($) | Mar. 31, 2017 | Sep. 30, 2016 |
Income Taxes [Abstract] | ||
Deferred tax asset from net operating loss carry-forwards | $ 7,176,965 | $ 5,876,564 |
Valuation allowance | (7,176,965) | (5,777,983) |
Deferred tax asset, net | $ 98,581 |
Income taxes (Details Textuals)
Income taxes (Details Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2016 | |
Income taxes (Textual) | |||||
Operating loss carryforwards | $ 6,400,000 | $ 6,400,000 | |||
PRC's statutory income tax rate | Effective from January 1, 2008, the PRC's statutory income tax rate is 25%. | ||||
PRC subsidiaries subject to income tax rate | 25.00% | ||||
Deferred tax asset | $ 98,581 | ||||
Valuation allowance | 7,176,965 | 7,176,965 | $ 5,777,983 | ||
Increase in valuation allowance | $ 800,000 | $ 10,000 | $ 1,400,000 | $ 300,000 | |
Hong Kong | |||||
Income taxes (Textual) | |||||
Effective tax rate | 16.50% | ||||
Minimum | |||||
Income taxes (Textual) | |||||
PRC statutory rate, percentage | 15.00% | ||||
Maximum | |||||
Income taxes (Textual) | |||||
PRC statutory rate, percentage | 35.00% |
Commitments and contingencies40
Commitments and contingencies (Details) | Mar. 31, 2017USD ($) |
For the Twelve Months Ending December 31, | |
2,017 | $ 555,643 |
2,018 | 106,727 |
Total minimum lease payments | $ 662,370 |
Commitments and contingencies41
Commitments and contingencies (Details 1) | Mar. 31, 2017USD ($) |
For the Twelve Months Ending | |
March 31, 2018 | $ 1,791,529 |
March 31, 2019 | 1,457,422 |
March 31, 2020 | 1,457,422 |
March 31, 2021 | 1,093,067 |
Total agency payments | $ 5,799,440 |
Commitments and contingencies42
Commitments and contingencies (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Loss Contingencies [Line Items] | ||||
Rental expenses under operating leases | $ 159,575 | $ 237,186 | $ 328,405 | $ 418,595 |
Advertising agency fee | 365,287 | 120,994 | ||
Sponsor fees | $ 95,064 | $ 45,831 | $ 110,900 | |
Xinhua New Media Co. Ltd | ||||
Loss Contingencies [Line Items] | ||||
Expiration date of agreement | Dec. 31, 2020 |