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 has devoted its efforts to develop a mobile application and online platform that facilitate the small to medium size businesses to attract more clients. The Companys 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 (see Note 2). On February 17, 2014, the Company incorporated Moxian CN Group Limited (Moxian CN Samoa) under the laws of Samoa. On February 21, 2014, Moxian acquired Moxian Group Limited (Moxian BVI), together with its subsidiaries, Moxian (Hong Kong) Limited (Moxian HK), Moxian Technology (Shenzhen) Co., Ltd. (Moxian Shenzhen), and Moxian Malaysia Sdn. Bhd.(Moxian Malaysia) through our wholly owned subsidiary, Moxian CN Samoa from Rebel Group, Inc. (REBL), a company incorporated in the State of Florida and of which our previous Chief Executive Officer, Tan Meng Dong, is a promoter as the term is defined under Rule 405 of Regulation C promulgated under the Securities Act, by entering into a License and Acquisition Agreement (the License and Acquisition Agreement) in consideration of $1,000,000 (Moxian BVI Purchase Price). As a result, Moxian BVI, together with its subsidiaries, Moxian HK, Moxian Shenzhen, and Moxian Malaysia, became the Companys subsidiaries. Under the License and Acquisition Agreement, REBL also agreed to grant us the exclusive right to use REBLs intellectual property rights (collectively, the IP Rights) in Mainland China, Malaysia, and other countries and regions where REBL conducts its business (the Licensed Territory), and the exclusive right to solicit, promote, distribute and sell REBL products and services in the Licensed Territory for five years (the License,) and in consideration of such License, the Company agreed to pay to REBL (i) $1,000,000 as license maintenance royalty each year commencing on the first anniversary of the date of the License Agreement; and (ii) 3% of the gross profits resulting from the distribution and sale of the products and services on behalf of the Company as an earned royalty. Moxian BVI was incorporated on July 3, 2012 under the laws of British Virgin Islands. REBL owned 100% equity interests of Moxian BVI prior to the closing of the License and Acquisition Agreement, among the Company, Moxian BVI and REBL. Moxian HK was incorporated on January 18, 2013 and became Moxian BVIs subsidiary on February 14, 2013. Moxian HK is currently engaged in the business of online social media. Moxian HK operates through two wholly owned subsidiaries: Moxian Shenzhen and Moxian Malaysia. Moxian Shenzhen is wholly owned by Moxian HK. Moxian Shenzhen was incorporated on April 8, 2013 and is engaged in the business of internet technology, computer software, commercial information consulting. Moxian Malaysia was incorporated on March 1, 2013 and became Moxian HKs subsidiary since April 2, 2013. Moxian Malaysia was previously in the business of IT services and media advertising but have ceased operations since June 2015. Shenzhen Moyi Technologies Co., Ltd. (Moyi) was incorporated on July 19, 2013 under the laws of the Peoples Republic of China and became a variable interest entity (VIE) of Moxian Shenzhen on July 15, 2014. Moxian Shenzhen controls Moyi through arrangement that absorbs operations risk, as if Moyi is a wholly owned subsidiary of Moxian Shenzhen. On December 18, 2017, the Company entered into a Tripartite Agreement with the original shareholders of Moyi and the new shareholders of Moyi wherein the Company agrees to the transfer of the equity interests of Moyi and all related rights, liabilities and obligations under the Moyi Agreements such that the new shareholders stand in place of the old shareholders in all aspects of the Moyi Agreements. Moxian Technologies (Beijing) Co., Ltd. (Moxian Beijing) was incorporated on December 10, 2015 under the laws of the Peoples Republic of China and is a wholly owned subsidiary of Moxian Shenzhen. Moxian Shenzhen made an investment of RMB 10 million (approximately USD $1.5 million) to Moxian Beijing during the year ended September 30, 2017. On January 30, 2015, the Company entered into an Equity Transfer Agreement (the Equity Transfer Agreement, such transaction, the Equity Transfer Transaction) with REBL, to acquire from REBL 100% of the equity interests of Moxian Intellectual Property Limited, a company incorporated under the laws of Samoa and a wholly owned subsidiary of REBL (Moxian IP Samoa) for $6,782,000 (the Moxian IP Samoa Purchase Price) (see Note 9). Moxian IP Samoa owns all the intellectual property rights relating to the operation, use and marketing of the Moxian Platform, including all of the trademarks, patents and copyrights that are used in the Companys business. As a result of the Equity Transfer Transaction, Moxian IP Samoa became a wholly owned subsidiary of the Company. 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 $8.5 million. In connection with the offering, the Companys common stock began trading on the NASDAQ Capital Market beginning on November 15, 2016 under the symbol MOXC. On January 30, 2018, a wholly-owned subsidiary of Moxian Shenzhen, Moxian Information Technologies (Shanghai) Co. Ltd. (Moxian Shanghai) was incorporated under the laws of the Peoples Republic of China. Moxian Shanghai will extend the business operations of the Company to Shanghai, China. As of June 30, 2018, only Moxian Shenzhen, Moyi and Moxian Beijing have business operations and the other affiliated companies are all dormant. On April 22, 2019, the Company implemented a 1:5 reverse share split and concurrently reduced its authorized shares of common stock from 250,000,000 to 50,000,000 (See Note 10, Reverse Share Split).