Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Hartford Great Health Corp. | ||
Entity Central Index Key | 0001482554 | ||
Document Type | 10-K/A | ||
Document Period End Date | Jul. 31, 2020 | ||
Amendment Flag | true | ||
Amendment Description | This Amendment No. 1 to our Annual Report on Form 10-K for the annual period from August 1, 2019 to July 31, 2020, which was filed with the U.S. Securities and Exchange Commission (the "SEC") on November 10, 2020 (the "Original Filing"), is being filed for the following purposes: (a) for Consolidated statements of cash flow on Item 8, Financial Statements, of Part II of Form 10-K, to re-class the funding support provided by related parties from operating cash flow activities to financing cash flow activities; (b) for Cash Flows - Year Ended July 31, 2020 Compared to Year Ended July 31, 2019 section on Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operation, of Part II of Form 10-K, to update the comparison by including the funding support provided by related parties in financing cash flow activities instead of operating cash flow activities. Except as described above, this Amendment No. 1 does not amend, modify, or otherwise update any other information in the Original 2020 Form 10-K and does not reflect events occurring after the filing of the Original 2020 Form 10-K. | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,556,280 | ||
Entity Common Stock, Shares Outstanding | 100,108,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 36,604 | $ 269,672 |
Current Loan receivable | 107,616 | |
Prepaid and Other current receivables | 173,819 | 210,280 |
Related party receivables | 753,076 | 713,612 |
Total Current Assets | 963,499 | 1,301,180 |
Non-Current Assets | ||
Restricted cash, noncurrent | 28,673 | 29,052 |
Property and equipment, net | 467,881 | 253,584 |
Loan receivable, noncurrent | 200,000 | |
Goodwill | 1,040,017 | |
ROU assets-Operating lease | 4,499,693 | |
Other assets | 329,235 | 850,054 |
Total Non-Current Assets | 5,325,482 | 2,372,707 |
TOTAL ASSETS | 6,288,981 | 3,673,887 |
Current Liabilities | ||
Related party payables | 2,966,651 | 1,327,559 |
Current Operating Lease liabilities | 739,352 | |
Other current payables | 617,119 | 175,856 |
Total Current Liabilities | 4,323,122 | 1,503,415 |
Long-term loan from related party | 585,146 | |
Lease liabilities, noncurrent | 4,253,050 | 336,046 |
TOTAL LIABILITIES | 8,576,172 | 2,424,607 |
Stockholders' Equity | ||
Preferred stock - $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock - $0.001 par value, 300,000,000 shares authorized, 99,108,000 shares issued and outstanding | 99,108 | 99,108 |
Additional paid-in capital | 2,154,521 | 2,154,521 |
Accumulated deficit | (3,568,185) | (916,816) |
Accumulated other comprehensive loss | (55,146) | (6,392) |
Noncontrolling interest | (917,489) | (81,141) |
Total Stockholders' (Deficit) Equity | (2,287,191) | 1,249,280 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,288,981 | $ 3,673,887 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2020 | Jul. 31, 2019 | Apr. 02, 2008 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | 300,000,000 | 300,000,000 | |
Common stock, shares issued | 99,108,000 | 99,108,000 | |
Common stock, shares outstanding | 99,108,000 | 99,108,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Income Statement [Abstract] | ||
Service revenues | $ 98,307 | $ 56,174 |
Cost of revenues | 86,243 | 11,445 |
Gross Profit | 12,064 | 44,729 |
Operating expenses | ||
Depreciation and amortization | 69,941 | 13,721 |
Selling, general and administrative | 1,812,774 | 713,526 |
Impairment loss | 1,628,306 | |
Total Operating Expenses | 3,511,021 | 727,247 |
Operating Loss | (3,498,957) | (682,518) |
Other Income (Expense) | ||
Interest income, net | 13,119 | 11,341 |
Loss on absorbing 2.5% noncontrolling interest of HF Int'l Education | (12,771) | |
Other (expense) income, net | (155,660) | 11,183 |
Other (expense) income, net | (155,312) | 22,524 |
Loss before income taxes | (3,654,269) | (659,994) |
Income Tax Expense | 800 | |
Net Loss | (3,655,069) | (659,994) |
Less: net loss attributable to Noncontrolling Interest | (1,003,700) | (75,825) |
Net Loss Attributable to Hartford Great Health Corp | $ (2,651,369) | $ (584,169) |
Net loss per common share: Basic and diluted | $ (0.03) | $ (0.01) |
Weighted average shares outstanding: Basic and diluted | 99,108,000 | 61,461,781 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) | Jul. 31, 2020 | Jul. 31, 2019 |
Hartford International Education Technology Co., Ltd [Member] | ||
Noncontrolling interest | 2.50% | 2.50% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Consolidated Statements Of Comprehensive Loss | ||
Net Loss | $ (2,651,369) | $ (584,169) |
Other Comprehensive income, net of income tax | ||
Foreign currency translation adjustments | (67,633) | (6,392) |
Total other comprehensive loss | (67,633) | (6,392) |
Less: total other comprehensive loss attributable to noncontrolling interest | (18,879) | |
Total Other Comprehensive Loss Attributable to Hartford Great Health Corp | (48,754) | (6,392) |
Total Comprehensive Loss | $ (2,700,123) | $ (590,561) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated (Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] | Total |
Beginning Balance at Jul. 31, 2018 | $ 3,018 | $ 330,241 | $ (332,647) | $ 612 | ||
Beginning Balance, shares at Jul. 31, 2018 | 3,018,000 | |||||
Net (loss) | (584,169) | (75,825) | (659,994) | |||
Issuance of common stock | $ 96,090 | 1,825,710 | 1,921,800 | |||
Issuance of common stock, shares | 96,090,000 | |||||
Return of capital | (1,430) | (1,430) | ||||
Contribution through acquisitions and new subsidiary | (5,316) | (5,316) | ||||
Foreign currency translation adjustment | (6,392) | (6,392) | ||||
Ending Balance at Jul. 31, 2019 | $ 99,108 | 2,154,521 | (916,816) | (6,392) | (81,141) | 1,249,280 |
Ending Balance, shares at Jul. 31, 2019 | 99,108,000 | |||||
Net (loss) | (2,651,369) | (1,003,700) | (3,655,069) | |||
Return of capital | ||||||
Foreign currency translation adjustment | (48,754) | (18,879) | (67,633) | |||
Investment from Noncontrolling Interest | 186,231 | 186,231 | ||||
Ending Balance at Jul. 31, 2020 | $ 99,108 | $ 2,154,521 | $ (3,568,185) | $ (55,146) | $ (917,489) | $ (2,287,191) |
Ending Balance, shares at Jul. 31, 2020 | 99,108,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss including noncontrolling interests | $ (3,655,069) | $ (659,994) |
Adjustments to reconcile net loss including noncontrolling interests to net cash used in operating activities: | ||
Depreciation and amortization | 69,941 | 13,721 |
Loss (gain) on disposal of property and equipment | 6,659 | (4,192) |
Impairment loss | 1,628,306 | |
Changes in operating assets and liabilities: | ||
Prepaid and Other current receivables | 10,041 | (230,669) |
Other assets | (145,728) | 75,962 |
Related party receivables and payables (restated) | 66,954 | (492,419) |
Other current payable | 439,497 | 9,533 |
Operating lease assets and liabilities | 154,418 | |
Other liabilities | 24,953 | 28,196 |
Net cash (used in) operating activities (restated) | (1,400,028) | (1,259,862) |
Cash flows from investing activities: | ||
Cash proceeds from Acquisitions | 50,470 | |
Cash used in Acquisitions | (230,161) | |
Payments on loan receivable | (599,870) | |
Repayment of Loan receivable | 323,078 | 300,000 |
Purchases of property and equipment | (270,808) | (3,691) |
Net cash provided by (used in) investing activities | 52,270 | (483,252) |
Cash flows from financing activities: | ||
Contribution from noncontrolling interest | 184,438 | 168,148 |
Proceeds from issuance of common stock | 1,921,800 | |
Return of Capital | (1,430) | |
Principal payments on finance lease | (19,878) | (19,739) |
Advances from related parties (restated) | 953,236 | |
Net cash provided by financing activities (restated) | 1,117,796 | 2,068,779 |
Effect of exchange rate changes on cash | (3,485) | (28,385) |
Net change in cash, cash equivalents and restricted cash | (233,447) | 297,280 |
Cash, cash equivalents and restricted cash at beginning of period | 298,724 | 1,444 |
Cash, cash equivalents and restricted cash at end of period | 65,277 | 298,724 |
Supplemental Cash Flow Information | ||
Interest paid | ||
Income taxes paid | $ 800 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. The financial statements and notes are the responsibility of the Company’s management. These accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied in the preparation of the financial statements. Organization Hartford Great Health Corp. was originally incorporated in the State of Nevada on April 2, 2008 under the name PhotoAmigo, Inc. It changed its name to Hartford Great Health Corp. on August 22, 2018 and since then we have been engaged in activities to formulate and implement our business plans. On December 28, 2018, the Company acquired Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF”). On March 22, 2019, the Company acquired 60 percent of Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”). On March 20, 2019, the Company acquired Shanghai Hartford Comprehensive Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), and formed a joint venture entity, Hartford International Education Technology Co., Ltd (“HF Int’l Education”) at the same month. On July 24, 2019 and March 23, 2020, HF Int’l Education established a 100% owned subsidiary, Pudong Haojin Childhood Education Ltd. (“PDHJ”) and Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd.(“HDFD”), respectively, which was approved to conduct childcare operations in Shanghai, China. Basis of Presentation The consolidated financial statements include the accounts of Hartford Great Health Corp, its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests of the consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in the consolidation. The Company’s net income (loss) excludes income (loss) attributable to the noncontrolling interests. Use of Estimates The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Foreign Currency The accounts of the Company’s foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other expense, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not U.S. dollar are recorded as a part of accumulated other comprehensive loss in stockholders’ equity. The Company does not undertake hedging transactions to cover its foreign currency exposure. Comprehensive Income (loss) For the year ended July 31, 2020 and 2019, the Company included its foreign currency translation gain or loss as part of its comprehensive income (loss). Fair value measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”), describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: Level 1 - Quoted prices in active markets for identical assets or liabilities or funds. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial instruments consist of cash and cash equivalents, current loan receivables, related party receivables, prepaid and other current receivables, related party payables and other current liabilities. The carrying amounts of afore-mentioned accounts approximate fair value because of their short-term nature. Cash and Cash Equivalents The Company maintains cash with banks in the United States and China. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In the United States, the standard insurance amount is USD250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”). Financial instruments that potentially subject the Company to significant concentrations of credit risk are cash and cash equivalents and accounts receivable. As of July 31, 2020 and 2019, nil and $20,083 of the Company’s cash and cash equivalents held by financial institutions were uninsured, respectively. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. Loans and Receivables The Company evaluates the collectability of its receivables based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s or borrower’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. As of July 31, 2020 and 2019, all balances are collectable based on management’s assessment. Property and equipment, net Property and equipment, net, are stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: Years Leasehold improvements Lesser of lease term or estimated useful life ROU assets-Finance lease Lease term Furniture and fixtures 3-5 Office equipment and vehicles 3-5 Computer software 3-5 Expenditures for repairs and maintenance are charged to expense as incurred. Goodwill and Long-lived Assets Goodwill, which represents the excess of the purchase price over the fair value of identifiable net assets acquired, is not amortized, in accordance with Accounting Standards Codification (ASC) 350, Intangibles—Goodwill and Other. ASC 350 requires that goodwill be tested for impairment at the reporting unit level on an annual basis and between annual tests, if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Company has the option to assess goodwill for possible impairment by performing a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A quantitative assessment is performed if the qualitative assessment results in a more-likely-than-not determination or if a qualitative assessment is not performed. The quantitative assessment considers whether the carrying amount of a reporting unit exceeds its fair value, in which case an impairment charge is recorded to the extent that the reporting unit’s carrying value exceeds its fair value. The Company’s goodwill was generated from the business acquisitions during the year ended July 31, 2019. We currently have two reporting units - Hospitality and Early Childhood Education. Given the impact of COVID-19 pandemic and the unfavorable operation results, goodwill impairment assessment was performed at interim time and annually. Based on the assessment results, management determined that $1,006,343 goodwill and $621,963 deferred lease cost were fully impaired as of July 31, 2020. Reclassifications Certain amounts on the prior-year consolidated balance sheet and consolidated statement of operations were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity. Business Combinations If an acquired set of activities and assets is capable of being operated as a business consisting of inputs and processes from the viewpoint of a market participant, the assets acquired and liabilities assumed are a business. Business combinations are accounted for using the acquisition method of accounting, which requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. Fair value determinations are based on discounted cash flow analyses or other valuation techniques. In determining the fair value of the assets acquired and liabilities assumed in a material acquisition, the Company may utilize appraisals from third party valuation firms to determine fair values of some or all of the assets acquired and liabilities assumed, or may complete some or all of the valuations internally. In either case, the Company takes full responsibility for the determination of the fair value of the assets acquired and liabilities assumed. The value of goodwill reflects the excess of the fair value of the consideration conveyed to the seller over the fair value of the net assets received. Acquisition-related costs that the Company incurs to affect a business combination are expensed in the periods in which the costs are incurred. Noncontrolling interest The Company adopted ASC 810, Noncontrolling Interests in Consolidated Financial Statements—an Amendment of Accounting Research Bulletin No. 51, as of January 1, 2009. ASC 810 establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest, changes in a parent’s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. ASC 810 also establishes reporting requirements that provide sufficient disclosures that clearly identify and distinguish between the interest of the parent and the interests of the noncontrolling owner. Advertising costs Advertising costs are expensed as incurred. During the year ended July 31, 2020, $12,582 advertising expenses were incurred. No advertising costs incurred during the year ended July 31, 2019. Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included in the gross income of the CFCs’ U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company’s subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years and zero balances of tax provisions, deferred tax assets and liabilities as of the reporting periods ended. The tax reforms have no significant impacts on the Company’s income statements. Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606) on August 1, 2018, applying the modified retrospective method to all contracts that were not completed as of August 1, 2018. The Company is building up its core business upon the completion of multiple acquisitions on March 2019 and impact of COVID-19 pandemic, limited operations occurred during the years ended July 31, 2020 and 2019. The revenue during the year ended July 31, 2020 was mainly generated from HZLJ and HF Int’l Education. Revenue is recognized when control of promised goods or services is transferred to our customers in an amount of consideration to which we expect to be entitled to in exchange for those goods or services. We follow the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy a performance obligation.. Billings to customers for which services are not rendered are considered deferred revenue. ASC 606 has no material impacts on the Company’s financial positions. The Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products or providing services to a customer. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations and contract liabilities as of July 31, 2020. a. Early childhood education services: HF Int’l Education generates revenue from childhood education classes provided to its customers. The educational services consist of parent-child and bilingual childcare classes. Each contract of educational classes is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fee is generally collected in advance and is initially recorded as deferred revenue. Refunds are provided to parents if they decide within the trial period that they no longer want to take the class. After the trial period, if a parent withdraws from a class, usually only that unearned portion of the fee is available to be returned. US$29,582 of revenue was derived from early childhood education classes provided for the year ended July 31, 2020. b. Hospitality services: HZLJ generates revenue primarily from the room rentals, sale of food and beverage and other miscellaneous hospitality services. The Company recognizes room rental and services daily as services are provided. Under ASC 606, the pattern and timing of recognition of income from hotel facility is consistent with the prior accounting model. Unearned revenue Unearned revenue represents revenues collected but not earned as of July 31, 2020. This is primarily composed of tuition collected in advance from early childhood education services. Income (Loss) Per Share Basic earnings per share include no dilution and are computed by dividing net income (or loss) by the weighted- average number of shares outstanding during the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company, assuming the issuance of an equivalent number of common shares pursuant to options, warrants, or convertible debt arrangements. Diluted earnings per share are not shown for periods in which the Company incurs a loss because it would be anti-dilutive. Similarly, potential common stock equivalents are not included in the calculation if the effect would be anti-dilutive. No potentially dilutive debt or equity securities were issued or outstanding during the year ended July 31, 2020 or 2019. Recent Accounting Pronouncements. Recently issued accounting pronouncements not yet adopted In December 2019, the FASB issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes”, as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company does not expect that the adoption of ASU No. 2018-13 will have a material impact on its financial position, results of operations and liquidity. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018-13 removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. ASU No. 2018-13 disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU No. 2018-13 is effective for the Company within those fiscal years beginning on December 15, 2019, with early adoption permitted. Certain disclosures in the new guidance will need to be applied on a retrospective basis and others on a prospective basis. The Company does not expect that the adoption of ASU No. 2018-13 will have a material impact on its financial position, results of operations and liquidity. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”. The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance on its consolidated financial statements. Recently adopted accounting pronouncements In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220)”, which amends the previous guidance to allow for certain tax effects “stranded” in accumulated other comprehensive income, which are impacted by the Tax Cuts and Jobs Act (the “Tax Reform Act”) , to be reclassified from accumulated other comprehensive income into retained earnings. This amendment pertains only to those items impacted by the new tax law and will not apply to any future tax effects stranded in accumulated other comprehensive income. This standard is effective for fiscal years beginning after December 15, 2018 and allows for early adoption. The adoption of ASU No. 2018-02 did not have an impact on the Company’s financial position, results of operations and liquidity. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company early adopted ASU No. 2017-04 on January 31, 2020. Management determined the goodwill was fully impaired as of January 31, 2020. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. ASU No. 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous guidance. The accounting for finance leases (capital leases) was substantially unchanged. The original guidance required application on a modified retrospective basis with adjustments to the earliest comparative period presented. In August 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements to ASC 842,” which included an option to not restate comparative periods in transition and elect to use the effective date of ASU No. 2016-02 as the date of initial application, which the Company elected. As a result, the consolidated balance sheet prior to August 1, 2019 was not restated, and continues to be reported under previous guidance that did not require the recognition of operating lease liabilities and corresponding lease assets on the consolidated balance sheet. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at August 1, 2019 for the adoption of the new lease standard was as follows: Balance at Balance at July 31, 2019 Adjustments August 1, 2019 Assets: Prepaid and Other current receivables 386,700 (74,197 ) 312,503 ROU assets-Operating lease — 4,185,827 4,185,827 Liabilities: Current Operating Lease liabilities — 651,424 651,424 Operating lease liabilities — 3,481,229 3,481,229 The adoption of ASU No. 2016-02 had an immaterial impact on the Company’s Consolidated Statement of Operation and Consolidated Statement of Cash Flows for the year ended July 31, 2020. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical lease classification, not reassess prior conclusions related to expired or existing contracts that are or that contain leases, and not reassess the accounting for initial direct costs. Operating leases with a term of 12 months or less will not be recorded on the Consolidated Balance Sheet. Additional information and disclosures required by ASU No. 2016-02 are contained in Note 13 Leases. |
Going Concern
Going Concern | 12 Months Ended |
Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 2. GOING CONCERN The accompanying financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. However, Hartford Great Health Corp. has incurred losses since inception, resulting in an accumulated deficit of $3,568,185 as of July 31, 2020. These conditions raise substantial doubt about the ability of Hartford Great Health Corp. to continue as a going concern. In view of these matters, continuation as a going concern is dependent upon several factors, including the availability of debt or equity funding upon terms and conditions acceptable to Hartford Great Health Corp., and ultimately achieving profitable operations. Management believes that Hartford Great Health Corp.’s business plan provides it with an opportunity to continue as a going concern. However, management cannot provide assurance that Hartford Great Health Corp. will meet its objectives and be able to continue in operation. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of Hartford Great Health Corp. to continue as a going concern. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jul. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 3. STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 5,000,000 shares of preferred stock with a par value of $0.001 per share. No shares of preferred stock have been issued or outstanding since Inception (April 2, 2008). Common Stock The Company is authorized to issue 300,000,000 shares of common stock with a par value of $0.001 per share. On December 11, 2018, 96,090,000 shares of common stock were issued at the price of $0.02 per share to raise $1,921,800 capital in cash. As of July 31, 2020 and 2019, the company had a total of 99,108,000 shares of common stock issued and outstanding. On July 3, 2020, an existing investor has signed a subscription agreement with the Company for 1,000,000 shares of common stock (the “Shares”) priced at $0.02 per share. As of the reporting date, $20,000 subscription was received and the shares are pending for issuance. |
Restatements
Restatements | 12 Months Ended |
Jul. 31, 2020 | |
Restatements | |
Restatements | NOTE 4. RESTATEMENTS On February 18, 2021, the Company has concluded that the Company’s previously reported consolidated statements of cash flows for the year ended July 31, 2020 (a “Restated Period”) incorrectly presented some funding support from related parties under operating activities, upon reflection and further analysis, which would be more accurate to be accounted for financing activities. Restated Consolidated Statement of Cash Flow (adjusted line items): For the year ended July 31, 2020 As previously reported As restated Change Cash flows from operating activities: Related party receivables and payables 1,020,190 66,954 953,236 Net cash (used in) operating activities (446,792 ) (1,400,028 ) 953,236 Cash flows from financing activities: Advances from related parties - 953,236 (953,236 ) Net cash provided by financing activities 164,560 1,117,796 (953,236 ) |
Acquisitions and Joint Ventures
Acquisitions and Joint Ventures | 12 Months Ended |
Jul. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Joint Ventures | NOTE 5. ACQUISITIONS AND JOINT VENTURES Acquisition of HZHF On December 28, 2018, the Company acquired Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF”), an entity located at Hangzhou, China. The operation results of HZHF are included in the Company’s consolidated financial statements commencing on the acquisition date. The Company has recorded an allocation of the purchase price to the Company’s identifiable assets acquired based on their fair value at the acquisition date. No business inputs, process and workforce have been acquired through the transaction. The Company accounted the transaction in accordance with the Asset Acquisitions The calculation of purchase price and purchase price allocation is as following: Identifiable Assets Acquired Cash and cash equivalents 154 Other current assets 37,964 Property and equipment, net 4,038 Deferred Start-up cost, noncurrent 99,463 Total Consideration 141,619 Right after the transaction was consummated, the Company fully expensed the deferred start-up cost in accordance with US GAAP. Acquisition of HZLJ On March 22, 2019, HZHF acquired 60 percent ownership interest of Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”) from Shanghai Qiao Garden Property Management Group, Ltd. The acquisition expands the Company’s capabilities in the travel and health management sectors as the hotel is located within walking distance of local tea farms and a protected nature preserve. The results of operations of the acquired subsidiary are included in the Company’s consolidated financial statements commencing on the acquisition date. The Company has recorded an allocation of the purchase price to the Company’s tangible and identifiable intangible assets acquired and liabilities assumed based on their fair value at the acquisition date. The Company accounted the acquisition transaction in accordance with FASB ASC 805, Business Combinations. The Company classifies the 40 percent ownership interest held by Shanghai Qiaohong Real Estate Co., Ltd. as “Noncontrolling interest” on the consolidated balance sheet. The related transaction costs were immaterial and included in General and administrative expenses in the accompanying consolidated statements of operations. The calculation of purchase price and purchase price allocation is as follows: Assets Acquired and Liabilities Assumed Cash and cash equivalents $ 15,383 Accounts and Other receivables 13,224 Related party receivable 22,861 Property and Equipment, net 247,940 Other assets 699,066 Goodwill 466,847 Accounts payable (2,671 ) Related party payable (1,232,512 ) Other account payable (28,772 ) Other liabilities (336,051 ) Noncontrolling interest 240,613 Total consideration * $ 105,928 *$16,537 payable due from HZLJ waived by HFHZ plus $89,891 (RMB600,000) cash payment totaled $105,928 consideration for the acquisition. Goodwill is mainly attributable to synergies expected from the acquisition in hospitality industry and assembled workforce. Other assets and other liabilities are related to the deferred cost of obtaining the finance lease and the finance lease liabilities (see Note 13 Lease). Related party payable consisted the unpaid portion of operating advances made to HZLJ by the affiliates which are under common control by the same management. Amount of $595,939 were due to Qiao Garden Group, which originally owned 60% of HZLJ. And amount of $596,348 were advanced from Shanghai DuBian Assets Management Ltd., which is controlled by the same management. These advances do not bear interest and are due on demand. Property and Equipment, net mainly consists of ROU assets, Furniture and fixtures and office equipment. Acquisition of HFSH On March 20, 2019, the Company acquired HFSH and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Intl Travel”). The original intent behind the acquisition was to use the travel agency to manage travel and lodging arrangements between China and the US for Chinese members of the anti-aging stem-cell treatment program. The results of operations of the acquired entities are included in the Company’s consolidated financial statements commencing on the acquisition date. The Company has recorded an allocation of the purchase price to the Company’s tangible and identifiable intangible assets acquired and liabilities assumed based on their fair value at the acquisition date. The Company accounted the acquisition transaction in accordance with FASB ASC 805, Business Combinations, under acquisition accounting method. The Company classifies the un-acquired 10 percent ownership interest as “Noncontrolling interest” on the consolidated balance sheet. The related transaction costs were immaterial and included in General and administrative expenses in the accompanying consolidated statements of operations. The calculation of purchase price and purchase price allocation is as follows: Assets Acquired and Liabilities Assumed Cash and cash equivalents 35,886 Accounts and Other receivables 92,120 Property and Equipment, net 6,511 Related party receivable 791,445 Goodwill 573,170 Other current payable (3,126 ) Related party payable (1,073,380 ) Noncontrolling interest (63,911 ) Total consideration* 358,715 *$223,477 payable due to HFHZ waived plus $135,238 (RMB907,737) cash payment totaled $358,715 consideration for the acquisition. Goodwill is mainly attributable to synergies expected from the acquisition of travel agency license and assembled workforce. Amount of $677,463 related party receivable is due from Shanghai Qiaohong Real Estate Co., Ltd. (“SH Qiaohong”), owning 40 percent equity interest of HZLJ. HFSH loaned the amount to SH Qiaohong for two years on June 21, 2018, the related party loan bears annual interest of six percent. Amount of $109,355 is due from one of the directors for business trips and business developing expenses and the amount is going to be reimbursed or paid back within three months. The remaining related party receivable are the operating advances made to multiple companies which are under common control by the same management. These advances do not bear interest and are considered due on demand. Related party payable consisted the unpaid portion of operating advances made to HFSH by the affiliates which are under common control by the same management. These advances do not bear interest and are considered due on demand. The majority advances, amount of $990,665 were from SH Qiaohong. HFSH used the amount for start-up expense and acquisition of 90 percent ownership of Qiao Garden Intl Travel acquisition. Pro Forma Information The following unaudited pro forma information has been prepared for illustrative purposes only, assumes that the acquisition occurred on August 1, 2018 and includes pro forma adjustments related to the noncontrolling interest allocation and the issuance of 96,090,000 common shares to finance the acquisitions. The unaudited pro forma results have been prepared based on estimates and assumptions, which we believe are reasonable; however, they are not necessarily indicative of the consolidated results of operations had the acquisition occurred on August 1, 2018, or of future results of operations. The unaudited pro forma results are as follows: Years ended July 31, 2020 2019 Revenues $ 98,307 $ 162,424 Net Loss (3,655,069 ) (1,010,870 ) Less: Net Loss Attributable to Noncontrolling Interest (1,003,700 ) (95,380 ) Net Loss Attributable to Hartford Great Health Corp $ (2,651,369 ) $ (915,490 ) Weighted average shares outstanding: Basic and diluted 99,108,000 99,108,000 Net loss per common share: Basic and Diluted (0.03 ) (0.01 ) Joint Venture – HF Int’l Education On March 22, 2019, HFSH entered into a joint venture agreement (the “JV agreement”) with Shanghai Jingyu Education Tech Ltd. (“SH Jingyu”) and one individual investor, to form a new entity - HF Int’l Education to provide childcare education services. The joint venture was initially 65.0% owned by HFSH and a totaling 35.0% owned by two noncontrolling shareholders. The JV agreement was not executed due to no sufficient capital investments injected by the two noncontrolling shareholders. During the year ended on July 31, 2020, HFSH’s ownership has been slightly decreased to 61.0% from 65.0% because of equity transactions between noncontrolling shareholders. On June 19, 2020, a board resolution was approved to increase registered capital to RMB10 million from RMB5 million, and three out of four noncontrolling shareholders gave up the subscription rights. As a result, HFSH holds 75.5% of HF Int’l Education and totaling 24.5% equity held by noncontrolling shareholders. The new equity structure became effective upon the approval of the local government on September 10, 2020. Operation result of HF Int’l Education are included in the Company’s consolidated financial statements commencing on the formation date. The Company classifies the ownership interest held by other four parties as “Noncontrolling interest” on the consolidated balance sheet. As of July 31, 2020, amount of RMB 10.0 million or $1.4 million of capital were fully injected. On July 24, 2019 and March 23, 2020, HF Int’l Education established two wholly owned subsidiaries, Pudong Haojin Childhood Education Ltd. (“PDHJ”) and Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd. (“HDFD”), respectively, to provide childcare education services. Others On January and February, 2019, HFSH entered agreements to acquire 85 percent ownership of Shanghai Senior Health Consulting Ltd. (“SH Senior”), 100 percent equity interest of Shanghai Luo Sheng International Trade Ltd. (“SH Luosheng”), and 55 percent ownership of Shanghai Pasadena Ltd. (“SH Pasadena”). As of July 31, 2020, these acquisition agreements have not yet taken effective as no consideration has been paid toward those acquisitions. These agreements will be executed when the Company is financially ready to move forward, and the purchase price will be calculated based on the net assets of each entity on execute dates. There was no penalty levied or to be levied due to delayed execution or inexecution. During May and June 2019, the Company entered an agreement and a supplemental agreement to acquire 60 percent equity interest of Shanghai Ren Lai Ren Wang Restaurant Co., Ltd. (“SH RLRW”). The acquisition agreement has not yet taken effective as no consideration has been paid towards the acquisition. On June 12, 2020, the company withdraw the acquisition by transferring the agreement to an individual with zero price. On July 20, 2020, HF Int’l Education entered an agreement with two individuals to acquire the whole ownership of Shanghai Gelinke Childcare Education Center. The purchase price is set at zero. According to the acquisition agreement, HF Int’l Education agreed to assume approximately RMB 1 million liabilities and RMB 171,000 assets. The acquisition is expecting to consummate by November 30, 2020. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Jul. 31, 2020 | |
Receivables [Abstract] | |
Restricted Cash | NOTE 6. RESTRICTED CASH The Company early adopted Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning of year and end of year total amounts shown on the statements of cash flows. The restricted cash is collateral required by the local government in China for the travel license Qiao Garden Int’l Travel holds. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. July 31, 2020 July 31, 2019 Cash and cash equivalents $ 36,604 $ 269,672 Restricted cash, noncurrent 28,673 29,052 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 65,277 $ 298,724 |
Loan Receivable
Loan Receivable | 12 Months Ended |
Jul. 31, 2020 | |
Receivables [Abstract] | |
Loan Receivable | NOTE 7. LOAN RECEIVABLE The Company loaned $99,870 to a third party, Longsheng Aquatic Products Co., Ltd. The loan bears 6% annum interest rate with three-month term started on February 14, 2019. On May 12, 2019, the loan had been extended for another year, expires on May 13, 2020. $5,260 and $2,780 of interest income were recognized during the years ended July 31, 2020 and 2019, respectively. The loaned amount and interest have been fully paid back on June 11, 2020. The Company loaned $300,000 to a third party, Hong Kong Hong Tai Int’l Trade Limited (“HK HongTai”). The loan bears annual interest rate of six percent. The term of loan is six months with expiration date on June 27, 2019. The loan has been fully paid back on February 5, 2019. The Company loaned another $200,000 to HK HongTai on March 4, 2019. The loan bears annual interest rate of six percent with six months term expiring on September 3, 2019. Subsequently on August 30, 2019, the loan has been extended to September 3, 2020. $10,202 and $6,890 of interest income were recognized during the years ended July 31, 2020 and 2019, respectively. The loan principal and interest accrued have been fully paid back on June 11, 2020. |
Other Current Receivables
Other Current Receivables | 12 Months Ended |
Jul. 31, 2020 | |
Other Current Receivables | |
Other Current Receivables | NOTE 8. OTHER CURRENT RECEIVABLES Other current receivable, amounts of $173,819 and $210,280 as of July 31, 2020 and 2019, respectively, mainly consist of purchase advance, prepaid rent, employee operating advances and others. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jul. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | NOTE 9. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following at July 31, 2020 and 2019: July 31, 2020 July 31, 2019 Leasehold improvements $ 181,378 $ 23,366 Finance lease assets 269,304 272,860 Furniture and fixtures 202,241 235,360 Office equipment and vehicles 112,759 68,859 Construction in progress 19,326 - 785,008 600,445 Less: accumulated depreciation and amortization (317,127 ) (346,861 ) $ 467,881 $ 253,584 Depreciation expense for the years ended July 31, 2020 and 2019, was $48,643 and $6,411, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Jul. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 10. OTHER ASSETS Other assets consist of the following at July 31, 2020 and 2019: July 31, 2020 July 31, 2019 Other miscellaneous assets $ 38,688 $ - Rental deposits 288,970 176,420 Trademark 1,577 - Deferred cost of finance lease - 673,634 $ 329,235 $ 850,054 The cost of obtaining the finance lease of the land use rights and hotel building at HZLJ, in the amount of $879,800 (RMB 6 million) was recognized as Other Assets and subject for amortization over the remaining lease term, 41 years commenced on October 2010. The amortization is computed using the straight-line method over the remaining lease term. Amortization expense of deferred cost of finance lease for the year ended July 31, 2020 and 2019 were $21,298 and $7,310, respectively. Given the impact of COVID-19 pandemic and the unfavorable operation results, management determined that the deferred cost of finance lease was fully impaired as of July 31, 2020 and $621,963 impairment cost was recorded for the year ended July 31, 2020. |
Goodwill
Goodwill | 12 Months Ended |
Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 11. GOODWILL Our goodwill was contributed by the acquisitions during 2019. Under the circumstance of the COVID-19 pandemic and slowly economic recoveries at the cities of Shanghai and Hangzhou, the Company’s business plans have been halted for an indefinite period of time. Based on the interim assessment of goodwill impairment testing performed, management determined that goodwill was fully impaired as of January 31, 2020. The following is a roll-forward of goodwill for the years ended July 31, 2020 and 2019: HFSH and Qiao Garden Int’l HZHF & HZLJ Travel Total Balance at July 31, 2018 $ — $ — $ — Acquisitions 466,847 573,170 1,040,017 Impairment — — — Balance at July 31, 2019 $ 466,847 $ 573,170 $ 1,040,017 Acquisitions — — — Impairment (451,732 ) (554,611 ) (1,006,343 ) Foreign Exchange (15,115 ) (18,559 ) (33,674 ) Balance at July 31, 2020 $ — $ — $ — |
Other Current Payables
Other Current Payables | 12 Months Ended |
Jul. 31, 2020 | |
Payables and Accruals [Abstract] | |
Other Current Payables | NOTE 12. OTHER CURRENT PAYABLES The following is a breakdown of the accounts and other payables as of July 31, 2020 and 2019: July 31, 2020 July 31, 2019 Payable to Acquiree $ 130,138 $ 131,856 Unearned revenues 75,861 - Rental payables 252,154 - Other payables 158,966 44,000 $ 617,119 $ 175,856 Payable to acquiree is the unpaid consideration for the acquisitions described in Note 5 Acquisitions and Joint Venture. Rental payable is accrued for unpaid rent during a process of lease related litigation, see Note 13 Leases. |
Leases
Leases | 12 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 13. LEASES At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. Leases are classified as either finance leases or operating leases based on criteria in Accounting Standards Codification (“ASC”) 842. Operating leases are included in ROU assets-Operating lease, Current Operating Lease liabilities and Operating lease liabilities, finance leases are included in Property and Equipment and Other Liabilities in the condensed Consolidated Balance Sheet. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the lease did not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in China market. ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset’s estimated useful life and interest expense is calculated using the amortized cost basis. As of July 31, 2020, the Company has multiple operating leases for office spaces and a finance lease of land and hotel building. Our operating leases have remaining lease terms ranging from two years to six years, with various term extensions available. Our finance lease has remaining lease term of thirty-two years. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of twelve months or less. The finance lease was obtained through HZLJ acquisition on March 22, 2019 (See Note 5 Acquisitions and Joint Venture). On October 1, 2010, HZLJ leased the land and hotel building for 41 years. Finance lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease-related assets and liabilities at July 31, 2020 and 2019 were as follows: July 31, 2020 July 31, 2019 Assets Finance lease right-of-use assets, cost $ 269,304 $ 272,860 Less: accumulated amortization (64,589 ) (58,787 ) Finance lease right-of-use assets, net 204,715 214,073 ROU assets-Operating lease 4,499,693 - Total Lease ROU assets $ 4,704,408 $ 214,073 Liabilities Current Operating Lease liabilities $ 739,352 $ - Operating lease liabilities, noncurrent 3,916,259 - Finance lease liabilities, noncurrent 336,791 336,046 Total Lease liabilities $ 4,992,402 $ 336,046 The components of lease cost for the year ended July 31, 2020 was as follows: Year ended July 31, 2020 Operating lease cost $ 1,052,961 Finance leases: Amortization of ROU assets 6,568 Interest on finance lease liabilities 25,195 Finance lease cost 31,763 Total lease cost $ 1,084,724 Supplemental cash flow information for leases for the year ended July 31, 2020 was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 592,514 Financing cash flows from finance leases 19,878 The weighted-average remaining lease term and weighted-average discount rate for operating and finance leases at July 31, 2020 was as follows: Operating Leases Finance Leases Weighted-average remaining lease term (years) 4.9 31.0 Weighted-average discount rate 8 % 8 % The following table reconciles the undiscounted future minimum lease payments for operating and finance leases executed at July 31, 2020: Operating Leases Finance Leases 2021 $ 1,106,570 $ 20,788 2022 1,185,208 21,505 2023 1,165,492 22,222 2024 1,107,930 22,938 2025 1,026,177 23,655 2026 and thereafter 81,546 909,651 Total lease payments $ 5,672,923 $ 1,020,759 Less interest (1,017,312 ) (683,968 ) Present value of future lease payments $ 4,655,611 $ 336,791 Current Lease liabilities 739,352 - Noncurrent Lease liabilities 3,916,259 336,791 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jul. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14. RELATED PARTY TRANSACTIONS Equity Transactions On October 2018, the Company refunded $1,429 of the additional paid in capital to the former CFO. On December 11, 2018, the Company sold 96,090,000 shares of its common stock to various investors, including 54,040,000 shares sold to its Officers and Directors with proceeds of $1,080,800. The whole amount of proceeds has been collected. Related Party Receivables As of July 31, 2020 and 2019, amount of $703,776 and $674,524, respectively, is due from Shanghai Qiaohong Real Estate Co., Ltd. (“SH Qiaohong”), the noncontrolling interest of Longjing. The balance was acquired through HFSH acquisition. HFSH lent the amount to SH Qiaohong for two years on June 21, 2018 bearing annual interest of six percent. On August 1, 2020, the loan has been extended to July 31, 2022. For the years ended July 31, 2020 and 2019, $37,676 and $14,099 of interest income were recognized, respectively. The remaining related party receivable of $49,300 and $39,088 as of July 31, 2020 and 2019, respectively, represents the operating advances made to the affiliates which are managed by the same management team. These advances do not bear interest and are considered due on demand. On October 2018, the Company borrowed $30,000 from a potential investor to fund the Company’s ongoing activities. It was an indefinite short-term loan with no interest bearing. The loan was paid back by the Company in the following quarter. Related Party Payables As of July 31, 2020 and 2019, amounts of $674,830 and $526,963, are payable to SH Qiaohong, respectively. Majority of the balance was part of the liability assumed through HFSH acquisition. This payable balance does not bear interest and due on demand. As of July 31, 2020 and 2019, amount of $594,965 and $602,821, respectively, is payable to Shanghai Qiao Garden Property Management Group (“Qiao Garden Group”), an entity managed by the same management team. The balance was part of the liability assumed through HZLJ acquisition. This payable balance does not bear interest and is considered due on demand. The Company had payable balances to Shanghai Oversea Chinese Culture Media Ltd. (“SH Oversea”), a company under common control, in the amounts of $1,012,650 and $50,808 as of July 31, 2020 and 2019, respectively. The payable is funding support from SH Oversea for operation, bears no interest and due on demand. The remaining related party payable of $92,100 and $146,967 as of July 31, 2020 and 2019, respectively, represents the unpaid portion of operating advances made to the Company by affiliates which are managed by the same management team. These advances do not bear interest and are considered due on demand. As of July 31, 2020 and 2019, the Company has $592,106 and $585,146, respectively, short-term and long-term payable to Shanghai DuBian Assets Management Ltd. (“Dubian”), which is owned by the Company’s CEO’s relative. The payable balance was assumed from the acquisition transaction. On April 30, 2019, both parties entered a long-term agreement to convert the payable to a long-term debt, with expiration date on April 30, 2021, bearing approximately 2.5 percent of annual interest. $14,445 and $3,739 of interest expense were recognized during the years ended July 31, 2020 and 2019, respectively. The unpaid principle and interest will be due on the maturity date. This loan payable is not exposed to market risk due to the stable and fixed interest rates in accordance with the loan agreements. As of July 31, 2020 and 2019, the estimated fair value of long-term loan payable were Nil and $584,674, respectively. Other Related Party Transactions Office space at Rosemead, CA is provided to Hartford Great Health Corp. at no cost by the sole executive officer. No provision for these costs has been included in these financial statements as the amounts are not material. On September 30, 2019, HF Int’l Education entered two debt agreements with the related parties, SH Qiao Hong and SH Oversea. Each debt agreement provides a line of credit up to RMB9.0 million with two-year term, bearing 3.0% annum interest rate. The unpaid principle and interest will be due on the maturity dates. As of July 31, 2020, no balance were withdrawn from these two line of credits by HF Int’l Education. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Jul. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | NOTE 15. NONCONTROLLING INTERESTS Noncontrolling interests consisted of the following as of July 31, 2020 and 2019: Name of Entity % of Non- July 31, Net loss Disposal of Investment from Foreign currency July 31, 2020 HZLJ 40.0 % $ (250,794 ) $ (619,980 ) $ - $ - $ (18,294 ) $ (889,068 ) HF Int’l Education *39.0 % 104,923 (365,250 ) (12,771 ) 186,231 (1,825 ) (88,692 ) Qiao Garden Intl Travel 10.0 % 64,730 (5,699 ) - - 1,240 60,271 Total $ (81,141 ) $ (990,929 ) $ (12,771 ) $ 186,231 $ (18,879 ) $ (917,489 ) *90% equity of SHHZJ, a limited partnership and 10% shareholder of HF Int’l Education, is held by Mr. Song, CEO of the Company on behalf of an unrelated individual. However, HF Int’l Education does not have the obligation to absorb losses of SHHZJ or a right to receive benefits from SHHZJ that could potentially be significant to SHHZJ, thus, SHHZJ is not considered a VIE of HF Int’l Education. Name of Entity % of Non-Controlling Interests July 31, 2018 Net loss Contribution through acquisitions and new subsidiary Investment from Noncontrolling Interest Foreign currency translation adjustment July 31, 2019 HZLJ 40.0 % $ - $ (10,181 ) $ (240,613 ) $ - $ - $ (250,794 ) HF Int’l Education 41.5 % - (66,409 ) 171,332 - - 104,923 Qiao Garden Intl Travel 10.0 % - 765 63,965 - - 64,730 Total $ - $ (75,825 ) $ (5,316 ) $ - $ - $ (81,141 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 16. COMMITMENTS AND CONTINGENCIES There has been below material contractual obligations and other commitments except the lease commitments disclosed in Note 13 Leases. On June 2018 and January 2019, HFSH and HF Int’l Education (the “Subtenants”) entered two lease agreements with Shanghai Longjin Corporate Management Co., Ltd (the “Tenant”) to lease some office spaces. On April 13, 2020, HFSH and HF Int’l Education received Notices of Lease Termination from the Tenant for late payments. HFSH and HF Int’l Education then filed a civil case against the Tenant for over-charged rent fees because of fictitious office size and requested refund in the total amount approximately $481,000 (RMB3.3 million) till July 10, 2020. The Tenant was in default under the lease agreements due to its lease agreement with the landlord of the office properties (the “Landlord”) was terminated on June 1, 2020 by the Landlord. HF Int’l Education entered a new lease agreement with the Landlord directly on June 1, 2020 for the same office spaces with a five-year term. An initial trial is scheduled on November 12, 2020 by the court. The Company accrued the full amount of rent expense for the period ended May 31, 2020 and the accrued rental payable was $252,154 associated with the Tenant under the two lease agreements as of July 31, 2020. On July 8, 2020, HF Int’l Education entered a book publishing contract with Shanghai Joint Publishing to publish childcare education books in three series. Pursuant to the contract, HF Int’l Education authorizes Shanghai Joint Publishing to publish those books as initial publication within two years and commit to purchase total 180,000 books in a total price of RMB 2 million. HF Int’l Education holds the copyrights of the three series books after internally developed and registered with National Publishing Agency in the PRC in May 2020. Management decided not to capitalize the internal development cost related to those books and expensed instead when it occurs for the year ended July 31, 2020. As of July 31, 2020, $86,019 (RMB600,000) was prepaid toward the contract and the remaining purchase price will be due on December 31, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 17. INCOME TAXES For the years ended July 31, 2020 and 2019, we recorded income tax expense of $800 and $0, respectively, due to the loss position for the years since inception. Hartford Great Health Corp.’s deferred tax assets, valuation allowance, and change in valuation allowance are as follows: Period Ending Net NOL carry-forward NOL expires Estimated tax benefit from NOL and other tax benefits (21%) Valuation allowance Change in valuation allowance Net deferred tax asset 31-Jul-19 $ 916,816 2039 $ 275,045 $ (275,045 ) $ (209,045 ) $ - 31-Jul-20 $ 3,568,185 2040 $ 1,070,456 $ (1,070,456 ) $ (795,411 ) $ - Income taxes at the statutory rate are reconciled to reported income tax expense (benefit) as follows: 2020 2019 Federal income tax rate 21.0 % 21.0 % State income tax rate 8.8 % 8.8 % Foreign tax difference (4.6 )% (8.6 )% GILTI - % - % Valuation allowance (25.2 )% (21.2 )% Others - % - % Effective tax rate 0.0 % 0.0 % At this time, the Company is unable to determine if it will be able to benefit from its deferred tax asset. There are limitations on the utilization of net operating loss carry-forwards, including a requirement that losses be offset against future taxable income, if any. In addition, there are limitations imposed by certain transactions which are deemed to be ownership changes. Accordingly, a valuation allowance has been established for the entire deferred tax asset. Other temporary differences and estimated permanent differences are considered immaterial. Open tax years subject to examination by the IRS range from August 1, 2016 to the present. The Company has no uncertain tax positions. On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included in the gross income of the CFCs’ U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company’s subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years since inception and zero balances of deferred tax assets and liabilities as of the reporting periods ended. The tax reforms have no significant impacts on the Company. |
Segment Information
Segment Information | 12 Months Ended |
Jul. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 18. SEGMENT INFORMATION The Company currently operates in following industry segments: hospitality (hotel and travel agency) and early childhood education industry in China. Segment information on assets as of July 31, 2020 and revenue generated during the year ended July 31, 2020, as follows: Hospitality Education Corporate and unallocated Total Revenue $ 68,724 $ 29,583 $ - $ 98,307 Operating loss (2,231,236 ) (1,088,494 ) (179,227 ) (3,498,957 ) Loss before tax (2,260,026 ) (1,230,479 ) (163,764 ) (3,654,269 ) Net Loss Attributable to Hartford Great Health Corp (1,744,600 ) (742,205 ) (164,564 ) (2,651,369 ) Total assets (excluding Intercompany balances) 1,379,590 4,855,413 53,978 6,288,981 As of July 31, 2019, the company only operated at hospitality industry in China. The subsidiary had an amount of $2,547,989 in total assets, excluding inter-company balances, and it generated $56,174 in revenue. There was no revenue generated from inter-company transactions. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jul. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19. SUBSEQUENT EVENTS In accordance with ASC 855 , “Subsequent Events” From September 2020 to February 2021, the Company subsequently borrowed several notes in a total amount $100,000, in form of a short-term loan at 5% per annum from a related party. On September 1, 2020, Gelinke entered a five-year new lease agreement at the same location upon the completion of the acquisition. Approximately $1.21 million ROU and $1.26 million lease liability were recorded associated with the new lease as of October 31, 2020. On December 31, 2020, HFSH entered an agreement with SH Qiaohong and Qiao Garden Intl Travel and settled around $721,000 (RMB$5,031,699) receivable and payable with the same related party, SH Qiaohong. On December 31, 2020, HFSH disposed its 90 percent owned subsidiary - Qiao Garden Int’l Travel to an individual with zero price. On December 31, 2020, HFSH withdraw from the two acquisition agreements entered on early 2019, which were to acquire 85 percent ownership of SH Senior and 55 percent ownership of SH Pasadena Ltd. No penalty is resulted from the withdrawn. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization | Organization Hartford Great Health Corp. was originally incorporated in the State of Nevada on April 2, 2008 under the name PhotoAmigo, Inc. It changed its name to Hartford Great Health Corp. on August 22, 2018 and since then we have been engaged in activities to formulate and implement our business plans. On December 28, 2018, the Company acquired Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF”). On March 22, 2019, the Company acquired 60 percent of Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”). On March 20, 2019, the Company acquired Shanghai Hartford Comprehensive Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), and formed a joint venture entity, Hartford International Education Technology Co., Ltd (“HF Int’l Education”) at the same month. On July 24, 2019 and March 23, 2020, HF Int’l Education established a 100% owned subsidiary, Pudong Haojin Childhood Education Ltd. (“PDHJ”) and Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd.(“HDFD”), respectively, which was approved to conduct childcare operations in Shanghai, China. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Hartford Great Health Corp, its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests of the consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in the consolidation. The Company’s net income (loss) excludes income (loss) attributable to the noncontrolling interests. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Currency | Foreign Currency The accounts of the Company’s foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other expense, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not U.S. dollar are recorded as a part of accumulated other comprehensive loss in stockholders’ equity. The Company does not undertake hedging transactions to cover its foreign currency exposure. |
Comprehensive Income (loss) | Comprehensive Income (loss) For the year ended July 31, 2020 and 2019, the Company included its foreign currency translation gain or loss as part of its comprehensive income (loss). |
Fair value measurement | Fair value measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”), describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: Level 1 - Quoted prices in active markets for identical assets or liabilities or funds. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial instruments consist of cash and cash equivalents, current loan receivables, related party receivables, prepaid and other current receivables, related party payables and other current liabilities. The carrying amounts of afore-mentioned accounts approximate fair value because of their short-term nature. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company maintains cash with banks in the United States and China. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In the United States, the standard insurance amount is USD250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”). Financial instruments that potentially subject the Company to significant concentrations of credit risk are cash and cash equivalents and accounts receivable. As of July 31, 2020 and 2019, nil and $20,083 of the Company’s cash and cash equivalents held by financial institutions were uninsured, respectively. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. |
Loans and Receivables | Loans and Receivables The Company evaluates the collectability of its receivables based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s or borrower’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. As of July 31, 2020 and 2019, all balances are collectable based on management’s assessment. |
Property and equipment, net | Property and equipment, net Property and equipment, net, are stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: Years Leasehold improvements Lesser of lease term or estimated useful life ROU assets-Finance lease Lease term Furniture and fixtures 3-5 Office equipment and vehicles 3-5 Computer software 3-5 Expenditures for repairs and maintenance are charged to expense as incurred. |
Goodwill and Long-lived Assets | Goodwill and Long-lived Assets Goodwill, which represents the excess of the purchase price over the fair value of identifiable net assets acquired, is not amortized, in accordance with Accounting Standards Codification (ASC) 350, Intangibles—Goodwill and Other. ASC 350 requires that goodwill be tested for impairment at the reporting unit level on an annual basis and between annual tests, if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Company has the option to assess goodwill for possible impairment by performing a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A quantitative assessment is performed if the qualitative assessment results in a more-likely-than-not determination or if a qualitative assessment is not performed. The quantitative assessment considers whether the carrying amount of a reporting unit exceeds its fair value, in which case an impairment charge is recorded to the extent that the reporting unit’s carrying value exceeds its fair value. The Company’s goodwill was generated from the business acquisitions during the year ended July 31, 2019. We currently have two reporting units - Hospitality and Early Childhood Education. Given the impact of COVID-19 pandemic and the unfavorable operation results, goodwill impairment assessment was performed at interim time and annually. Based on the assessment results, management determined that $1,006,343 goodwill and $621,963 deferred lease cost were fully impaired as of July 31, 2020. |
Reclassifications | Reclassifications Certain amounts on the prior-year consolidated balance sheet and consolidated statement of operations were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity. |
Business Combinations | Business Combinations If an acquired set of activities and assets is capable of being operated as a business consisting of inputs and processes from the viewpoint of a market participant, the assets acquired and liabilities assumed are a business. Business combinations are accounted for using the acquisition method of accounting, which requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. Fair value determinations are based on discounted cash flow analyses or other valuation techniques. In determining the fair value of the assets acquired and liabilities assumed in a material acquisition, the Company may utilize appraisals from third party valuation firms to determine fair values of some or all of the assets acquired and liabilities assumed, or may complete some or all of the valuations internally. In either case, the Company takes full responsibility for the determination of the fair value of the assets acquired and liabilities assumed. The value of goodwill reflects the excess of the fair value of the consideration conveyed to the seller over the fair value of the net assets received. Acquisition-related costs that the Company incurs to affect a business combination are expensed in the periods in which the costs are incurred. |
Noncontrolling interest | Noncontrolling interest The Company adopted ASC 810, Noncontrolling Interests in Consolidated Financial Statements—an Amendment of Accounting Research Bulletin No. 51, as of January 1, 2009. ASC 810 establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest, changes in a parent’s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. ASC 810 also establishes reporting requirements that provide sufficient disclosures that clearly identify and distinguish between the interest of the parent and the interests of the noncontrolling owner. |
Advertising costs | Advertising costs Advertising costs are expensed as incurred. During the year ended July 31, 2020, $12,582 advertising expenses were incurred. No advertising costs incurred during the year ended July 31, 2019. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included in the gross income of the CFCs’ U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company’s subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years and zero balances of tax provisions, deferred tax assets and liabilities as of the reporting periods ended. The tax reforms have no significant impacts on the Company’s income statements. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606) on August 1, 2018, applying the modified retrospective method to all contracts that were not completed as of August 1, 2018. The Company is building up its core business upon the completion of multiple acquisitions on March 2019 and impact of COVID-19 pandemic, limited operations occurred during the years ended July 31, 2020 and 2019. The revenue during the year ended July 31, 2020 was mainly generated from HZLJ and HF Int’l Education. Revenue is recognized when control of promised goods or services is transferred to our customers in an amount of consideration to which we expect to be entitled to in exchange for those goods or services. We follow the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy a performance obligation.. Billings to customers for which services are not rendered are considered deferred revenue. ASC 606 has no material impacts on the Company’s financial positions. The Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products or providing services to a customer. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations and contract liabilities as of July 31, 2020. a. Early childhood education services: HF Int’l Education generates revenue from childhood education classes provided to its customers. The educational services consist of parent-child and bilingual childcare classes. Each contract of educational classes is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fee is generally collected in advance and is initially recorded as deferred revenue. Refunds are provided to parents if they decide within the trial period that they no longer want to take the class. After the trial period, if a parent withdraws from a class, usually only that unearned portion of the fee is available to be returned. US$29,582 of revenue was derived from early childhood education classes provided for the year ended July 31, 2020. b. Hospitality services: HZLJ generates revenue primarily from the room rentals, sale of food and beverage and other miscellaneous hospitality services. The Company recognizes room rental and services daily as services are provided. Under ASC 606, the pattern and timing of recognition of income from hotel facility is consistent with the prior accounting model. |
Unearned revenue | Unearned revenue Unearned revenue represents revenues collected but not earned as of July 31, 2020. This is primarily composed of tuition collected in advance from early childhood education services. |
Income (Loss) Per Share | Income (Loss) Per Share Basic earnings per share include no dilution and are computed by dividing net income (or loss) by the weighted- average number of shares outstanding during the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company, assuming the issuance of an equivalent number of common shares pursuant to options, warrants, or convertible debt arrangements. Diluted earnings per share are not shown for periods in which the Company incurs a loss because it would be anti-dilutive. Similarly, potential common stock equivalents are not included in the calculation if the effect would be anti-dilutive. No potentially dilutive debt or equity securities were issued or outstanding during the year ended July 31, 2020 or 2019. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Recently issued accounting pronouncements not yet adopted In December 2019, the FASB issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes”, as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company does not expect that the adoption of ASU No. 2018-13 will have a material impact on its financial position, results of operations and liquidity. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018-13 removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. ASU No. 2018-13 disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU No. 2018-13 is effective for the Company within those fiscal years beginning on December 15, 2019, with early adoption permitted. Certain disclosures in the new guidance will need to be applied on a retrospective basis and others on a prospective basis. The Company does not expect that the adoption of ASU No. 2018-13 will have a material impact on its financial position, results of operations and liquidity. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”. The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance on its consolidated financial statements. Recently adopted accounting pronouncements In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220)”, which amends the previous guidance to allow for certain tax effects “stranded” in accumulated other comprehensive income, which are impacted by the Tax Cuts and Jobs Act (the “Tax Reform Act”) , to be reclassified from accumulated other comprehensive income into retained earnings. This amendment pertains only to those items impacted by the new tax law and will not apply to any future tax effects stranded in accumulated other comprehensive income. This standard is effective for fiscal years beginning after December 15, 2018 and allows for early adoption. The adoption of ASU No. 2018-02 did not have an impact on the Company’s financial position, results of operations and liquidity. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company early adopted ASU No. 2017-04 on January 31, 2020. Management determined the goodwill was fully impaired as of January 31, 2020. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. ASU No. 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous guidance. The accounting for finance leases (capital leases) was substantially unchanged. The original guidance required application on a modified retrospective basis with adjustments to the earliest comparative period presented. In August 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements to ASC 842,” which included an option to not restate comparative periods in transition and elect to use the effective date of ASU No. 2016-02 as the date of initial application, which the Company elected. As a result, the consolidated balance sheet prior to August 1, 2019 was not restated, and continues to be reported under previous guidance that did not require the recognition of operating lease liabilities and corresponding lease assets on the consolidated balance sheet. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at August 1, 2019 for the adoption of the new lease standard was as follows: Balance at Balance at July 31, 2019 Adjustments August 1, 2019 Assets: Prepaid and Other current receivables 386,700 (74,197 ) 312,503 ROU assets-Operating lease — 4,185,827 4,185,827 Liabilities: Current Operating Lease liabilities — 651,424 651,424 Operating lease liabilities — 3,481,229 3,481,229 The adoption of ASU No. 2016-02 had an immaterial impact on the Company’s Consolidated Statement of Operation and Consolidated Statement of Cash Flows for the year ended July 31, 2020. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical lease classification, not reassess prior conclusions related to expired or existing contracts that are or that contain leases, and not reassess the accounting for initial direct costs. Operating leases with a term of 12 months or less will not be recorded on the Consolidated Balance Sheet. Additional information and disclosures required by ASU No. 2016-02 are contained in Note 13 Leases. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Useful Lives | The estimated useful lives of property and equipment are as follows: Years Leasehold improvements Lesser of lease term or estimated useful life ROU assets-Finance lease Lease term Furniture and fixtures 3-5 Office equipment and vehicles 3-5 Computer software 3-5 |
Schedule of Cumulative Effect of Changes in Fianancial Statement | The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at August 1, 2019 for the adoption of the new lease standard was as follows: Balance at Balance at July 31, 2019 Adjustments August 1, 2019 Assets: Prepaid and Other current receivables 386,700 (74,197 ) 312,503 ROU assets-Operating lease — 4,185,827 4,185,827 Liabilities: Current Operating Lease liabilities — 651,424 651,424 Operating lease liabilities — 3,481,229 3,481,229 |
Restatements (Tables)
Restatements (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Restatements Tables Abstract | |
Schedule of Restated Consolidated Statement of Cash Flow | Restated Consolidated Statement of Cash Flow (adjusted line items): For the year ended July 31, 2020 As previously reported As restated Change Cash flows from operating activities: Related party receivables and payables 1,020,190 66,954 953,236 Net cash (used in) operating activities (446,792 ) (1,400,028 ) 953,236 Cash flows from financing activities: Advances from related parties - 953,236 (953,236 ) Net cash provided by financing activities 164,560 1,117,796 (953,236 ) |
Acquisitions and Joint Ventur_2
Acquisitions and Joint Ventures (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Schedule of Business Acquisition, Pro Forma Information | The unaudited pro forma results are as follows: Years ended July 31, 2020 2019 Revenues $ 98,307 $ 162,424 Net Loss (3,655,069 ) (1,010,870 ) Less: Net Loss Attributable to Noncontrolling Interest (1,003,700 ) (95,380 ) Net Loss Attributable to Hartford Great Health Corp $ (2,651,369 ) $ (915,490 ) Weighted average shares outstanding: Basic and diluted 99,108,000 99,108,000 Net loss per common share: Basic and Diluted (0.03 ) (0.01 ) |
Hangzhou Hartford Comprehensive Health Management, Ltd [Member] | |
Schedule of Recognized Identified Assets Acquired | The calculation of purchase price and purchase price allocation is as following: Identifiable Assets Acquired Cash and cash equivalents 154 Other current assets 37,964 Property and equipment, net 4,038 Deferred Start-up cost, noncurrent 99,463 Total Consideration 141,619 |
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd [Member] | |
Schedule of Recognized Identified Assets Acquired | The calculation of purchase price and purchase price allocation is as follows: Assets Acquired and Liabilities Assumed Cash and cash equivalents $ 15,383 Accounts and Other receivables 13,224 Related party receivable 22,861 Property and Equipment, net 247,940 Other assets 699,066 Goodwill 466,847 Accounts payable (2,671 ) Related party payable (1,232,512 ) Other account payable (28,772 ) Other liabilities (336,051 ) Noncontrolling interest 240,613 Total consideration * $ 105,928 *$16,537 payable due from HZLJ waived by HFHZ plus $89,891 (RMB600,000) cash payment totaled $105,928 consideration for the acquisition. Goodwill is mainly attributable to synergies expected from the acquisition in hospitality industry and assembled workforce. Other assets and other liabilities are related to the deferred cost of obtaining the finance lease and the finance lease liabilities (see Note 13 Lease). Related party payable consisted the unpaid portion of operating advances made to HZLJ by the affiliates which are under common control by the same management. Amount of $595,939 were due to Qiao Garden Group, which originally owned 60% of HZLJ. And amount of $596,348 were advanced from Shanghai DuBian Assets Management Ltd., which is controlled by the same management. These advances do not bear interest and are due on demand. Property and Equipment, net mainly consists of ROU assets, Furniture and fixtures and office equipment. |
Shanghai Senior Health Consulting Ltd [Member] | |
Schedule of Recognized Identified Assets Acquired | . The calculation of purchase price and purchase price allocation is as follows: Assets Acquired and Liabilities Assumed Cash and cash equivalents 35,886 Accounts and Other receivables 92,120 Property and Equipment, net 6,511 Related party receivable 791,445 Goodwill 573,170 Other current payable (3,126 ) Related party payable (1,073,380 ) Noncontrolling interest (63,911 ) Total consideration* 358,715 *$223,477 payable due to HFHZ waived plus $135,238 (RMB907,737) cash payment totaled $358,715 consideration for the acquisition. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. July 31, 2020 July 31, 2019 Cash and cash equivalents $ 36,604 $ 269,672 Restricted cash, noncurrent 28,673 29,052 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 65,277 $ 298,724 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following at July 31, 2020 and 2019: July 31, 2020 July 31, 2019 Leasehold improvements $ 181,378 $ 23,366 Finance lease assets 269,304 272,860 Furniture and fixtures 202,241 235,360 Office equipment and vehicles 112,759 68,859 Construction in progress 19,326 - 785,008 600,445 Less: accumulated depreciation and amortization (317,127 ) (346,861 ) $ 467,881 $ 253,584 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following at July 31, 2020 and 2019: July 31, 2020 July 31, 2019 Other miscellaneous assets $ 38,688 $ - Rental deposits 288,970 176,420 Trademark 1,577 - Deferred cost of finance lease - 673,634 $ 329,235 $ 850,054 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a roll-forward of goodwill for the years ended July 31, 2020 and 2019: HFSH and Qiao Garden Int’l HZHF & HZLJ Travel Total Balance at July 31, 2018 $ — $ — $ — Acquisitions 466,847 573,170 1,040,017 Impairment — — — Balance at July 31, 2019 $ 466,847 $ 573,170 $ 1,040,017 Acquisitions — — — Impairment (451,732 ) (554,611 ) (1,006,343 ) Foreign Exchange (15,115 ) (18,559 ) (33,674 ) Balance at July 31, 2020 $ — $ — $ — |
Other Current Payables (Tables)
Other Current Payables (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts and Other Payables | The following is a breakdown of the accounts and other payables as of July 31, 2020 and 2019: July 31, 2020 July 31, 2019 Payable to Acquiree $ 130,138 $ 131,856 Unearned revenues 75,861 - Rental payables 252,154 - Other payables 158,966 44,000 $ 617,119 $ 175,856 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease-related Assets and Liabilities | Lease-related assets and liabilities at July 31, 2020 and 2019 were as follows: July 31, 2020 July 31, 2019 Assets Finance lease right-of-use assets, cost $ 269,304 $ 272,860 Less: accumulated amortization (64,589 ) (58,787 ) Finance lease right-of-use assets, net 204,715 214,073 ROU assets-Operating lease 4,499,693 - Total Lease ROU assets $ 4,704,408 $ 214,073 Liabilities Current Operating Lease liabilities $ 739,352 $ - Operating lease liabilities, noncurrent 3,916,259 - Finance lease liabilities, noncurrent 336,791 336,046 Total Lease liabilities $ 4,992,402 $ 336,046 |
Schedule of Components of Lease Cost | The components of lease cost for the year ended July 31, 2020 was as follows: Year ended July 31, 2020 Operating lease cost $ 1,052,961 Finance leases: Amortization of ROU assets 6,568 Interest on finance lease liabilities 25,195 Finance lease cost 31,763 Total lease cost $ 1,084,724 |
Schedule of Supplemental Cash Flow Information for Leases | Supplemental cash flow information for leases for the year ended July 31, 2020 was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 592,514 Financing cash flows from finance leases 19,878 |
Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating and Finance Leases | The weighted-average remaining lease term and weighted-average discount rate for operating and finance leases at July 31, 2020 was as follows: Operating Leases Finance Leases Weighted-average remaining lease term (years) 4.9 31.0 Weighted-average discount rate 8 % 8 % |
Schedule of Future Minimum Lease Payments for Operating and Finance Leases | The following table reconciles the undiscounted future minimum lease payments for operating and finance leases executed at July 31, 2020: Operating Leases Finance Leases 2021 $ 1,106,570 $ 20,788 2022 1,185,208 21,505 2023 1,165,492 22,222 2024 1,107,930 22,938 2025 1,026,177 23,655 2026 and thereafter 81,546 909,651 Total lease payments $ 5,672,923 $ 1,020,759 Less interest (1,017,312 ) (683,968 ) Present value of future lease payments $ 4,655,611 $ 336,791 Current Lease liabilities 739,352 - Noncurrent Lease liabilities 3,916,259 336,791 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interests | Noncontrolling interests consisted of the following as of July 31, 2020 and 2019: Name of Entity % of Non- July 31, Net loss Disposal of Investment from Foreign currency July 31, 2020 HZLJ 40.0 % $ (250,794 ) $ (619,980 ) $ - $ - $ (18,294 ) $ (889,068 ) HF Int’l Education *39.0 % 104,923 (365,250 ) (12,771 ) 186,231 (1,825 ) (88,692 ) Qiao Garden Intl Travel 10.0 % 64,730 (5,699 ) - - 1,240 60,271 Total $ (81,141 ) $ (990,929 ) $ (12,771 ) $ 186,231 $ (18,879 ) $ (917,489 ) *90% equity of SHHZJ, a limited partnership and 10% shareholder of HF Int’l Education, is held by Mr. Song, CEO of the Company on behalf of an unrelated individual. However, HF Int’l Education does not have the obligation to absorb losses of SHHZJ or a right to receive benefits from SHHZJ that could potentially be significant to SHHZJ, thus, SHHZJ is not considered a VIE of HF Int’l Education. Name of Entity % of Non-Controlling Interests July 31, 2018 Net loss Contribution through acquisitions and new subsidiary Investment from Noncontrolling Interest Foreign currency translation adjustment July 31, 2019 HZLJ 40.0 % $ - $ (10,181 ) $ (240,613 ) $ - $ - $ (250,794 ) HF Int’l Education 41.5 % - (66,409 ) 171,332 - - 104,923 Qiao Garden Intl Travel 10.0 % - 765 63,965 - - 64,730 Total $ - $ (75,825 ) $ (5,316 ) $ - $ - $ (81,141 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Valuation | Hartford Great Health Corp.’s deferred tax assets, valuation allowance, and change in valuation allowance are as follows: Period Ending Net NOL carry-forward NOL expires Estimated tax benefit from NOL and other tax benefits (21%) Valuation allowance Change in valuation allowance Net deferred tax asset 31-Jul-19 $ 916,816 2039 $ 275,045 $ (275,045 ) $ (209,045 ) $ - 31-Jul-20 $ 3,568,185 2040 $ 1,070,456 $ (1,070,456 ) $ (795,411 ) $ - |
Schedule of Effective Income Tax Rate Reconciliation | Income taxes at the statutory rate are reconciled to reported income tax expense (benefit) as follows: 2020 2019 Federal income tax rate 21.0 % 21.0 % State income tax rate 8.8 % 8.8 % Foreign tax difference (4.6 )% (8.6 )% GILTI - % - % Valuation allowance (25.2 )% (21.2 )% Others - % - % Effective tax rate 0.0 % 0.0 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information on assets as of July 31, 2020 and revenue generated during the year ended July 31, 2020, as follows: Hospitality Education Corporate and unallocated Total Revenue $ 68,724 $ 29,583 $ - $ 98,307 Operating loss (2,231,236 ) (1,088,494 ) (179,227 ) (3,498,957 ) Loss before tax (2,260,026 ) (1,230,479 ) (163,764 ) (3,654,269 ) Net Loss Attributable to Hartford Great Health Corp (1,744,600 ) (742,205 ) (164,564 ) (2,651,369 ) Total assets (excluding Intercompany balances) 1,379,590 4,855,413 53,978 6,288,981 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | ||||||
Jul. 31, 2020USD ($)shares | Jul. 31, 2019USD ($)shares | Jul. 31, 2020CNY (¥) | Mar. 23, 2020 | Jul. 24, 2019 | Mar. 22, 2019 | Mar. 20, 2019 | |
Fdic insured amount | $ 250,000 | ||||||
Cash and cash equivalents | $ 20,083 | ||||||
Goodwill impairment assessment | 1,006,343 | ||||||
Deferred lease cost | 621,963 | ||||||
Advertising cost | $ 12,582 | ||||||
Income tax examination description | On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income ("GILTI")) earned by controlled foreign corporations ("CFCs") must be included in the gross income of the CFCs' U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company's subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years and zero balances of tax provisions, deferred tax assets and liabilities as of the reporting periods ended. The tax reforms have no significant impacts on the Company's income statements. | ||||||
Income tax rate | 0.00% | 0.00% | |||||
Revenue | $ 98,307 | $ 56,174 | |||||
Potentially dilutive shares | shares | |||||||
Early Childhood Education Services [Member] | |||||||
Revenue | $ 29,582 | ||||||
PRC [Member] | |||||||
Income tax rate | 25.00% | ||||||
Pudong Haojin Childhood Education Ltd [Member] | |||||||
Equity ownership percentage | 100.00% | ||||||
Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd [Member] | |||||||
Equity ownership percentage | 100.00% | ||||||
People's Bank of China Financial Stability Bureau [Member] | RMB [Member] | |||||||
Fdic insured amount | ¥ | ¥ 500,000 | ||||||
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | |||||||
Acquired percentage | 60.00% | ||||||
Shanghai Hartford Comprehensive Health Management, Ltd. [Member] | |||||||
Acquired percentage | 90.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Jul. 31, 2020 | |
Leasehold Improvements [Member] | |
Description of Estimated Useful Lives of Property and Equipment | Lesser of lease term or estimated useful life |
ROU Assets-Finance Lease [Member] | |
Description of Estimated Useful Lives of Property and Equipment | Lease term |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Equipment and Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office Equipment and Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer Software [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Software [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Cumulative Effect of Changes in Fianancial Statement (Details) - USD ($) | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Prepaid and Other current receivables | $ 312,503 | $ 386,700 | |
ROU assets-Operating lease | $ 4,499,693 | 4,185,827 | |
Current Operating Lease liabilities | 739,352 | 651,424 | |
Operating lease liabilities | $ 4,655,611 | $ 3,481,229 | |
Restatement Adjustment [Member] | |||
Prepaid and Other current receivables | (74,197) | ||
ROU assets-Operating lease | 4,185,827 | ||
Current Operating Lease liabilities | 651,424 | ||
Operating lease liabilities | $ 3,481,229 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (3,568,185) | $ (916,816) |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jul. 03, 2020 | Dec. 11, 2018 | Jul. 31, 2019 | Jul. 31, 2020 | Apr. 02, 2008 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||
Preferred stock par value | $ 0.001 | $ 0.001 | |||
Preferred stock, shares issued | 0 | 0 | |||
Preferred stock, shares outstanding | 0 | 0 | |||
Common stock, shares authorized | 300,000,000 | 300,000,000 | |||
Common stock par value | $ 0.001 | $ 0.001 | |||
Issuance of common stock, shares | 96,090,000 | ||||
Share price | $ 0.02 | ||||
Issuance of common stock, capital in cash | $ 1,921,800 | $ 1,921,800 | |||
Common stock, shares issued | 99,108,000 | 99,108,000 | |||
Common stock, shares outstanding | 99,108,000 | 99,108,000 | |||
Investor [Member] | Subscription Agreement [Member] | |||||
Issuance of common stock, shares | 1,000,000 | ||||
Share price | $ 0.02 | ||||
Issuance of common stock, capital in cash | $ 20,000 |
Restatements - Schedule of Rest
Restatements - Schedule of Restated Consolidated Statement of Cash Flow (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Related party receivables and payables | $ 66,954 | $ (492,419) |
Net cash (used in) operating activities | (1,400,028) | (1,259,862) |
Advances from related parties | 953,236 | |
Net cash provided by financing activities | 1,117,796 | $ 2,068,779 |
As Previously Reported [Member] | ||
Related party receivables and payables | 1,020,190 | |
Net cash (used in) operating activities | (446,792) | |
Advances from related parties | ||
Net cash provided by financing activities | 164,560 | |
Restatement Change [Member] | ||
Related party receivables and payables | 953,236 | |
Net cash (used in) operating activities | 953,236 | |
Advances from related parties | (953,236) | |
Net cash provided by financing activities | $ (953,236) |
Acquisitions and Joint Ventur_3
Acquisitions and Joint Ventures (Details Narrative) | Jul. 20, 2020USD ($) | Jun. 12, 2020USD ($) | Mar. 22, 2019USD ($) | Mar. 22, 2019CNY (¥) | Mar. 20, 2019USD ($) | Mar. 20, 2019CNY (¥) | Aug. 02, 2018shares | Jul. 31, 2020USD ($) | Jul. 31, 2020CNY (¥) | Jul. 20, 2020CNY (¥) | Jun. 19, 2020CNY (¥) | Jul. 31, 2019USD ($) | Jun. 30, 2019 | May 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 |
Issuance of common stock to acquisition | shares | 96,090,000 | |||||||||||||||
Joint Venture Agreement [Member] | ||||||||||||||||
Joint venture acquired ownership interest | 65.00% | |||||||||||||||
Joint Venture Agreement [Member] | Minimum [Member] | RMB [Member] | ||||||||||||||||
Registered capital | ¥ | ¥ 5,000,000 | |||||||||||||||
Joint Venture Agreement [Member] | Maximum [Member] | RMB [Member] | ||||||||||||||||
Registered capital | ¥ | ¥ 10,000,000 | |||||||||||||||
Qiao Garden Group [Member] | ||||||||||||||||
Due to related party | $ 595,939 | |||||||||||||||
Shanghai DuBian Assets Management Ltd. [Member] | ||||||||||||||||
Advanced from related party | $ 596,348 | |||||||||||||||
Shanghai Qiaohong Real Estate Co., Ltd. [Member] | ||||||||||||||||
Related party receivable | $ 677,463 | $ 703,776 | $ 674,524 | |||||||||||||
SH Qiaohong [Member] | ||||||||||||||||
Advanced from related party | $ 990,665 | |||||||||||||||
Shanghai Qiaohong Real Estate Co., Ltd. [Member] | ||||||||||||||||
Noncontrolling ownership interest | 40.00% | |||||||||||||||
Shanghai Qiao Garden International Travel Agency [Member] | ||||||||||||||||
Noncontrolling ownership interest | 10.00% | |||||||||||||||
Shanghai Jingyu Education Tech Ltd. [Member] | Two Shareholders [Member] | ||||||||||||||||
Noncontrolling ownership interest | 35.00% | |||||||||||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | Shareholders [Member] | Minimum [Member] | ||||||||||||||||
Noncontrolling ownership interest | 61.00% | |||||||||||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | Shareholders [Member] | Maximum [Member] | ||||||||||||||||
Noncontrolling ownership interest | 65.00% | |||||||||||||||
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | ||||||||||||||||
Business acquired ownership interest | 60.00% | |||||||||||||||
Purchase price | $ 89,891 | |||||||||||||||
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | RMB [Member] | ||||||||||||||||
Purchase price | ¥ | ¥ 600,000 | |||||||||||||||
Shanghai Qiao Garden International Travel Agency [Member] | ||||||||||||||||
Business acquired ownership interest | 90.00% | |||||||||||||||
Related party loan bears annual interest | 40.00% | |||||||||||||||
Purchase price | $ 135,238 | |||||||||||||||
Shanghai Qiao Garden International Travel Agency [Member] | RMB [Member] | ||||||||||||||||
Purchase price | ¥ | ¥ 907,737 | |||||||||||||||
Shanghai Qiao Garden International Travel Agency [Member] | One Director [Member] | ||||||||||||||||
Advanced from related party | $ 109,355 | |||||||||||||||
HF Int'l Education [Member] | ||||||||||||||||
Noncontrolling shareholders, description | As a result, HFSH holds 75.5% of HF Int'l Education and totaling 24.5% equity held by noncontrolling shareholders. | As a result, HFSH holds 75.5% of HF Int'l Education and totaling 24.5% equity held by noncontrolling shareholders. | ||||||||||||||
Purchase price | $ 0 | |||||||||||||||
HF Int'l Education [Member] | RMB [Member] | ||||||||||||||||
Registered capital | ¥ | ¥ 10,000,000 | |||||||||||||||
Liabilities | ¥ | ¥ 1,000,000 | |||||||||||||||
Assets | ¥ | ¥ 171,000 | |||||||||||||||
Shanghai Senior Health Consulting Ltd. [Member] | ||||||||||||||||
Business acquired ownership interest | 85.00% | 85.00% | ||||||||||||||
Shanghai Luo Sheng International Trade Ltd. [Member] | ||||||||||||||||
Business acquired ownership interest | 100.00% | 100.00% | ||||||||||||||
Shanghai Pasadena Ltd. [Member] | ||||||||||||||||
Business acquired ownership interest | 55.00% | 55.00% | ||||||||||||||
Shanghai Ren Lai Ren Wang Restaurant Co., Ltd. [Member] | ||||||||||||||||
Business acquired ownership interest | 60.00% | 60.00% | ||||||||||||||
Shanghai Ren Lai Ren Wang Restaurant Co., Ltd. [Member] | Individual [Member] | ||||||||||||||||
Business combination, consideration transferred | $ 0 |
Acquisitions and Joint Ventur_4
Acquisitions and Joint Ventures - Schedule of Recognized Identified Assets Acquired (Details) - USD ($) | Jul. 31, 2020 | Dec. 28, 2019 | Jul. 31, 2019 | Mar. 22, 2019 | Mar. 20, 2019 | Jul. 31, 2018 | |
Goodwill | $ 1,040,017 | ||||||
Hangzhou Hartford Comprehensive Health Management, Ltd [Member] | |||||||
Cash and cash equivalents | $ 154 | ||||||
Other current assets | 37,964 | ||||||
Property and equipment, net | 4,038 | ||||||
Deferred Start-up cost, noncurrent | 99,463 | ||||||
Total consideration | $ 141,619 | ||||||
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | |||||||
Cash and cash equivalents | $ 15,383 | ||||||
Property and equipment, net | 247,940 | ||||||
Accounts and Other receivables | 13,224 | ||||||
Related party receivable | 22,861 | ||||||
Other assets | 699,066 | ||||||
Goodwill | 466,847 | ||||||
Accounts payable | (2,671) | ||||||
Related party payable | (1,232,512) | ||||||
Other account payable | (28,772) | ||||||
Other liabilities | (336,051) | ||||||
Noncontrolling interest | 240,613 | ||||||
Total consideration | [1] | $ 105,928 | |||||
Shanghai Qiao Garden International Travel Agency [Member] | |||||||
Cash and cash equivalents | $ 35,886 | ||||||
Property and equipment, net | 6,511 | ||||||
Accounts and Other receivables | 92,120 | ||||||
Related party receivable | 791,445 | ||||||
Goodwill | 573,170 | ||||||
Related party payable | (1,073,380) | ||||||
Other account payable | (3,126) | ||||||
Noncontrolling interest | (63,911) | ||||||
Total consideration | [2] | $ 358,715 | |||||
[1] | $16,537 payable due from HZLJ waived by HFHZ plus $89,891 (RMB600,000) cash payment totaled $105,928 consideration for the acquisition. | ||||||
[2] | $223,477 payable due to HFHZ waived plus $135,238 (RMB907,737) cash payment totaled $358,715 consideration for the acquisition. |
Acquisitions and Joint Ventur_5
Acquisitions and Joint Ventures - Schedule of Recognized Identified Assets Acquired (Details) (Parenthetical) | Mar. 22, 2019USD ($) | Mar. 22, 2019CNY (¥) | Mar. 20, 2019USD ($) | Mar. 20, 2019CNY (¥) | |
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | |||||
Related party payable | $ 16,537 | ||||
Payment for business acquisition | 89,891 | ||||
Total consideration | [1] | $ 105,928 | |||
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | RMB [Member] | |||||
Payment for business acquisition | ¥ | ¥ 600,000 | ||||
Shanghai Qiao Garden International Travel Agency [Member] | |||||
Related party payable | $ 223,477 | ||||
Payment for business acquisition | 135,238 | ||||
Total consideration | [2] | $ 358,715 | |||
Shanghai Qiao Garden International Travel Agency [Member] | RMB [Member] | |||||
Payment for business acquisition | ¥ | ¥ 907,737 | ||||
[1] | $16,537 payable due from HZLJ waived by HFHZ plus $89,891 (RMB600,000) cash payment totaled $105,928 consideration for the acquisition. | ||||
[2] | $223,477 payable due to HFHZ waived plus $135,238 (RMB907,737) cash payment totaled $358,715 consideration for the acquisition. |
Acquisitions and Joint Ventur_6
Acquisitions and Joint Ventures - Schedule of Business Acquisition, Pro Forma Information (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Business Combinations [Abstract] | ||
Revenues | $ 98,307 | $ 162,424 |
Net Loss | (3,655,069) | (1,010,870) |
Less: Net Loss Attributable to Noncontrolling Interest | (1,003,700) | (95,380) |
Net Loss Attributable to Hartford Great Health Corp | $ (2,651,369) | $ (915,490) |
Weighted average shares outstanding: Basic and diluted | 99,108,000 | 99,108,000 |
Net loss per common share: Basic and Diluted | $ (0.03) | $ (0.01) |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Receivables [Abstract] | ||
Cash and cash equivalents | $ 36,604 | $ 269,672 |
Restricted cash, noncurrent | 28,673 | 29,052 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 65,277 | $ 298,724 |
Loan Receivable (Details Narrat
Loan Receivable (Details Narrative) - USD ($) | May 12, 2019 | Mar. 04, 2019 | Jul. 31, 2020 | Jul. 31, 2019 |
Longsheng Aquatic Products Co., Ltd [Member] | ||||
Loan receivables | $ 99,870 | |||
Debt interest rate | 6.00% | |||
Debt term | 3 months | |||
Debt maturity date | May 13, 2020 | |||
Interest income | $ 5,260 | $ 2,780 | ||
Hong Kong Hong Tai Int'l Trade Limited Member] | ||||
Loan receivables | $ 300,000 | |||
Debt interest rate | 6.00% | |||
Debt term | 6 months | |||
Debt maturity date | Jun. 27, 2019 | |||
Hong Kong Hong Tai Int'l Trade Limited One [Member] | ||||
Loan receivables | $ 200,000 | |||
Debt interest rate | 6.00% | |||
Debt term | 6 months | |||
Debt maturity date | Sep. 3, 2019 | |||
Debt extended maturity date description | Subsequently on August 30, 2019, the loan has been extended to September 3, 2020 | |||
Interest income | $ 10,202 | $ 6,890 |
Other Current Receivables (Deta
Other Current Receivables (Details Narrative) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Other Current Receivables Details Narrative Abstract | ||
Other current receivable | $ 173,819 | $ 210,280 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 48,643 | $ 6,411 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details Narrative) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Property And Equipment, Gross | $ 785,008 | $ 600,445 |
Less: accumulated depreciation and amortization | (317,127) | (346,861) |
Property And Equipment, Net | 467,881 | 253,584 |
Leasehold Improvements [Member] | ||
Property And Equipment, Gross | 181,378 | 23,366 |
Finance Lease Assets [Member] | ||
Property And Equipment, Gross | 269,304 | 272,860 |
Furniture and Fixtures [Member] | ||
Property And Equipment, Gross | 202,241 | 235,360 |
Office Equipment and Vehicles [Member] | ||
Property And Equipment, Gross | 112,759 | 68,859 |
Construction in Progress [Member] | ||
Property And Equipment, Gross | $ 19,326 |
Other Assets (Details Narrative
Other Assets (Details Narrative) | 12 Months Ended | ||
Jul. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2020CNY (¥) | |
Finance lease | $ 336,791 | ||
Amortization expense | 21,298 | $ 7,310 | |
Impairment cost | 621,963 | ||
Land Use Rights and Hotel Building [Member] | |||
Finance lease | $ 879,800 | ||
Land Use Rights and Hotel Building [Member] | RMB [Member] | |||
Finance lease | ¥ | ¥ 6,000,000 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other miscellaneous assets | $ 38,688 | |
Rental deposits | 288,970 | 176,420 |
Trademark | 1,577 | |
Deferred cost of finance lease | 673,634 | |
Other assets | $ 329,235 | $ 850,054 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Goodwill beginning balance | $ 1,040,017 | |
Acquisitions | 1,040,017 | |
Impairment | (1,006,343) | |
Foreign Exchange | (33,674) | |
Goodwill ending balance | 1,040,017 | |
HZHF & HZLJ [Member] | ||
Goodwill beginning balance | 466,847 | |
Acquisitions | 466,847 | |
Impairment | (451,732) | |
Foreign Exchange | (15,115) | |
Goodwill ending balance | 466,847 | |
HFSH and Qiao Garden Int'l Travel [Member] | ||
Goodwill beginning balance | 573,170 | |
Acquisitions | 573,170 | |
Impairment | (554,611) | |
Foreign Exchange | (18,559) | |
Goodwill ending balance | $ 573,170 |
Other Current Payables - Schedu
Other Current Payables - Schedule of Accounts and Other Payables (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Payables and Accruals [Abstract] | ||
Payable to Acquiree | $ 130,138 | $ 131,856 |
Unearned revenues | 75,861 | |
Rental payables | 252,154 | |
Other payables | 158,966 | 44,000 |
Other Current Payables | $ 617,119 | $ 175,856 |
Leases (Details Narrative)
Leases (Details Narrative) | Jul. 31, 2020 |
Finance leases remaining term | 32 years |
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | |
Finance leases remaining term | 41 years |
Minimum [Member] | |
Operating leases remaining term | 2 years |
Maximum [Member] | |
Operating leases remaining term | 6 years |
Leases - Schedule of Lease-rela
Leases - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Finance lease right-of-use assets, cost | $ 269,304 | $ 272,860 | |
Less: accumulated amortization | (64,589) | (58,787) | |
Finance lease right-of-use assets, net | 204,715 | 214,073 | |
ROU assets-Operating lease | 4,499,693 | $ 4,185,827 | |
Total Lease ROU assets | 4,704,408 | 214,073 | |
Current Operating Lease liabilities | 739,352 | $ 651,424 | |
Operating lease liabilities, noncurrent | |||
Finance lease liabilities, noncurrent | 336,791 | ||
Total Lease liabilities | 4,992,402 | $ 336,046 | |
Operating Lease Liabilities, Non Current [Member] | |||
Operating lease liabilities, noncurrent | $ 3,916,259 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) | 12 Months Ended |
Jul. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,052,961 |
Finance leases: Amortization of ROU assets | 6,568 |
Finance leases: Interest on finance lease liabilities | 25,195 |
Finance lease cost | 31,763 |
Total lease cost | $ 1,084,724 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information for Leases (Details) | 12 Months Ended |
Jul. 31, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 592,514 |
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases | $ 19,878 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating and Finance Leases (Details) | Jul. 31, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) Operating Leases | 4 years 10 months 25 days |
Weighted-average remaining lease term (years) Finance Leases | 31 years |
Weighted-average discount rate Operating Leases | 8.00% |
Weighted-average discount rate Finance Leases | 8.00% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating and Finance Leases (Details) - USD ($) | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Operating Leases, 2021 | $ 1,106,570 | ||
Operating Leases, 2022 | 1,185,208 | ||
Operating Leases, 2023 | 1,165,492 | ||
Operating Leases, 2024 | 1,107,930 | ||
Operating Leases, 2025 | 1,026,177 | ||
Operating Leases, 2026 and thereafter | 81,546 | ||
Operating Leases, Total lease payments | 5,672,923 | ||
Less interest | (1,017,312) | ||
Present value of future lease payments | 4,655,611 | $ 3,481,229 | |
Current Lease liabilities | 739,352 | $ 651,424 | |
Noncurrent Lease liabilities | |||
Finance Leases, 2021 | 20,788 | ||
Finance Leases, 2022 | 21,505 | ||
Finance Leases, 2023 | 22,222 | ||
Finance Leases, 2024 | 22,938 | ||
Finance Leases, 2025 | 23,655 | ||
Finance Leases, 2026 and thereafter | 909,651 | ||
Finance Leases, Total lease payments | 1,020,759 | ||
Less interest | (683,968) | ||
Present value of future lease payments | 336,791 | ||
Current Lease liabilities | |||
Noncurrent Lease liabilities | 336,791 | ||
Operating Lease Liabilities, Non Current [Member] | |||
Noncurrent Lease liabilities | $ 3,916,259 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Sep. 30, 2019CNY (¥) | Apr. 30, 2019 | Dec. 11, 2018USD ($)shares | Oct. 31, 2018USD ($) | Jul. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Mar. 20, 2019USD ($) |
Additional paid in capital refunded | $ (1,430) | ||||||
Shanghai Qiaohong Real Estate Co., Ltd. [Member] | |||||||
Related party receivables | $ 703,776 | 674,524 | $ 677,463 | ||||
Related party receivables, description | HFSH lent the amount to SH Qiaohong for two years on June 21, 2018 bearing annual interest of six percent. On August 1, 2020, the loan has been extended to July 31, 2022. | ||||||
Interest income | $ 37,676 | 14,099 | |||||
Related Party Payables | 674,830 | 526,963 | |||||
Affiliates [Member] | |||||||
Related party receivables | 49,300 | 39,088 | |||||
Related Party Payables | 92,100 | 146,967 | |||||
Shanghai Qiao Garden Property Management Group [Member] | |||||||
Related Party Payables | 594,965 | 602,821 | |||||
Shanghai Oversea Chinese Culture Media Ltd. [Member] | |||||||
Related Party Payables | 1,012,650 | 50,808 | |||||
Shanghai DuBian Assets Management Ltd. [Member] | |||||||
Short-term and long-term payable | 592,106 | 585,146 | |||||
Expiration date | Apr. 30, 2021 | ||||||
Interest rate | 2.50% | ||||||
Interest expense | 14,445 | 3,739 | |||||
Fair value of long term loan payable | $ 584,674 | ||||||
Investors [Member] | |||||||
Number of shares of common stock sold | shares | 96,090,000 | ||||||
Borrowed amount | $ 30,000 | ||||||
Officers and Directors [Member] | |||||||
Number of shares of common stock sold | shares | 54,040,000 | ||||||
Proceeds from equity transactions | $ 1,080,800 | ||||||
Former CFO [Member] | |||||||
Additional paid in capital refunded | $ 1,429 | ||||||
Two Debt Agreements [Member] | HF Int'l Education [Member] | |||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 9,000,000 | ||||||
Debt instrument, term | 2 years | ||||||
Line of credit facility, annum interest rate | 3.00% |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) - USD ($) | 12 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | |||
Non-Controlling Interests beginning balance | $ (81,141) | |||
Net loss | (990,929) | 75,825 | ||
Disposal of Noncontrolling interest | (12,771) | |||
Investment from Noncontrolling Interest | 186,231 | |||
Foreign currency translation adjustment | (18,879) | |||
Contribution through acquisitions and new subsidiary | (5,316) | |||
Non-Controlling Interests ending balance | $ (917,489) | $ (81,141) | ||
HZLJ [Member] | ||||
% of Non-Controlling Interests | 40.00% | 40.00% | ||
Non-Controlling Interests beginning balance | $ (250,794) | |||
Net loss | (619,980) | (10,181) | ||
Disposal of Noncontrolling interest | ||||
Investment from Noncontrolling Interest | ||||
Foreign currency translation adjustment | (18,294) | |||
Contribution through acquisitions and new subsidiary | (240,613) | |||
Non-Controlling Interests ending balance | $ (889,068) | $ (250,794) | ||
HF Int'l Education [Member] | ||||
% of Non-Controlling Interests | 39.00% | [1] | 41.50% | |
Non-Controlling Interests beginning balance | $ 104,923 | [1] | ||
Net loss | (365,250) | (66,409) | ||
Disposal of Noncontrolling interest | [1] | (12,771) | ||
Investment from Noncontrolling Interest | 186,231 | [1] | ||
Foreign currency translation adjustment | (1,825) | [1] | ||
Contribution through acquisitions and new subsidiary | 171,332 | |||
Non-Controlling Interests ending balance | [1] | $ (88,692) | $ 104,923 | |
Qiao Garden Intl Travel [Member] | ||||
% of Non-Controlling Interests | 10.00% | 10.00% | ||
Non-Controlling Interests beginning balance | $ 64,730 | |||
Net loss | (5,699) | 765 | ||
Disposal of Noncontrolling interest | ||||
Investment from Noncontrolling Interest | ||||
Foreign currency translation adjustment | 1,240 | |||
Contribution through acquisitions and new subsidiary | 63,965 | |||
Non-Controlling Interests ending balance | $ 60,271 | $ 64,730 | ||
[1] | 90% equity of SHHZJ, a limited partnership and 10% shareholder of HF Int'l Education, is held by Mr. Song, CEO of the Company on behalf of an unrelated individual. However, HF Int'l Education does not have the obligation to absorb losses of SHHZJ or a right to receive benefits from SHHZJ that could potentially be significant to SHHZJ, thus, SHHZJ is not considered a VIE of HF Int'l Education. |
Noncontrolling Interests - Sc_2
Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) (Parenthetical) | Jul. 31, 2020 |
HF Int'l Education [Member] | |
Equity ownership percentage | 10.00% |
SHHZJ [Member] | |
Equity ownership percentage | 90.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Apr. 13, 2020USD ($) | Apr. 13, 2020CNY (¥) | Jul. 31, 2020USD ($) | Jul. 31, 2020CNY (¥) | Jul. 08, 2020USD ($) | Jul. 08, 2020CNY (¥) |
HF Int'l Education [Member] | ||||||
Purchase obligation | $ 180,000 | |||||
Prepaid payment contract amount | $ 86,019 | |||||
RMB [Member] | HF Int'l Education [Member] | ||||||
Purchase obligation | ¥ | ¥ 2,000,000 | |||||
Prepaid payment contract amount | ¥ | ¥ 600,000 | |||||
Two Lease Agreements [Member] | ||||||
Refund of fictitious office property requested | $ 481,000 | |||||
Lease agreement, date | Jun. 1, 2020 | Jun. 1, 2020 | ||||
Lease agreement, description | HF Int'l Education entered a new lease agreement with the Landlord directly on June 1, 2020 for the same office spaces with a five-year term. An initial trial is scheduled on November 12, 2020 by the court. | HF Int'l Education entered a new lease agreement with the Landlord directly on June 1, 2020 for the same office spaces with a five-year term. An initial trial is scheduled on November 12, 2020 by the court. | ||||
Two Lease Agreements [Member] | Tenant [Member] | ||||||
Accrued rental payable | $ 252,154 | |||||
Two Lease Agreements [Member] | RMB [Member] | ||||||
Refund of fictitious office property requested | ¥ | ¥ 3,300,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Income tax expense | $ 800 | |
Income tax, description | On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income ("GILTI")) earned by controlled foreign corporations ("CFCs") must be included in the gross income of the CFCs' U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company's subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years and zero balances of tax provisions, deferred tax assets and liabilities as of the reporting periods ended. The tax reforms have no significant impacts on the Company's income statements. | |
Income tax rate | 0.00% | 0.00% |
PRC [Member] | ||
Income tax rate | 25.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Valuation (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Net NOL carry-forward | $ 916,816 | $ 3,568,185 |
NOL expires | 2039 | 2040 |
Estimated tax benefit from NOL and other tax benefits (21%) | $ 275,045 | $ 1,070,456 |
Valuation allowance | (275,045) | (1,070,456) |
Change in valuation allowance | (209,045) | (795,411) |
Net deferred tax asset |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21.00% | 21.00% |
State income tax rate | 8.80% | 8.80% |
Foreign tax difference | (4.60%) | (8.60%) |
GILTI | 0.00% | 0.00% |
Valuation allowance | (25.20%) | (21.20%) |
Others | 0.00% | 0.00% |
Effective tax rate | 0.00% | 0.00% |
Segment Information (Details Na
Segment Information (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Assets | $ 6,288,981 | $ 3,673,887 |
Revenue | 98,307 | 56,174 |
Inter Company [Member] | ||
Assets | $ 2,547,989 | |
Revenue | $ 56,174 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Revenue | $ 98,307 | $ 56,174 |
Operating loss | (3,498,957) | (682,518) |
Loss before tax | (3,654,269) | (659,994) |
Net Loss Attributable to Hartford Great Health Corp | (2,651,369) | (584,169) |
Total assets (excluding Intercompany balances) | 6,288,981 | $ 3,673,887 |
Hospitality [Member] | ||
Revenue | 68,724 | |
Operating loss | (2,231,236) | |
Loss before tax | (2,260,026) | |
Net Loss Attributable to Hartford Great Health Corp | (1,744,600) | |
Total assets (excluding Intercompany balances) | 1,379,590 | |
Education [Member] | ||
Revenue | 29,583 | |
Operating loss | (1,088,494) | |
Loss before tax | (1,230,479) | |
Net Loss Attributable to Hartford Great Health Corp | (742,205) | |
Total assets (excluding Intercompany balances) | 4,855,413 | |
Corporate and Unallocated [Member] | ||
Revenue | ||
Operating loss | (179,227) | |
Loss before tax | (163,764) | |
Net Loss Attributable to Hartford Great Health Corp | (164,564) | |
Total assets (excluding Intercompany balances) | $ 53,978 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Dec. 31, 2020USD ($) | Feb. 26, 2021USD ($) | Dec. 31, 2020CNY (¥) | Oct. 31, 2020USD ($) | Sep. 02, 2020 | Jul. 31, 2020USD ($) | Aug. 02, 2019USD ($) | Jul. 31, 2019USD ($) |
ROU assets | $ 4,499,693 | $ 4,185,827 | ||||||
Lease liability | $ 4,655,611 | $ 3,481,229 | ||||||
Subsequent Event [Member] | Shanghai Gelinke Childcare Education Center [Member] | New Lease Agreement [Member] | ||||||||
Lease term | 5 years | |||||||
ROU assets | $ 1,210,000 | |||||||
Lease liability | $ 1,260,000 | |||||||
Subsequent Event [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | ||||||||
Due to/from related party | $ 721,000 | |||||||
Subsequent Event [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | Shanghai Qiao Garden International Travel Agency [Member] | ||||||||
Disposed of owned subsidiary company percentage | 90.00% | |||||||
Subsequent Event [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | Shanghai Senior Health Consulting Ltd [Member] | ||||||||
Withdrawal of acquisition ownership percentage | 85.00% | 85.00% | ||||||
Subsequent Event [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | SH Pasadena Ltd [Member] | ||||||||
Withdrawal of acquisition ownership percentage | 55.00% | 55.00% | ||||||
Subsequent Event [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | RMB [Member] | ||||||||
Due to/from related party | ¥ | ¥ 5,031,699 | |||||||
Subsequent Event [Member] | Related Party [Member] | ||||||||
Short term borrowings | $ 100,000 | |||||||
Short term debt interest rate, percentage | 5.00% |