Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Oct. 29, 2021 | Jan. 31, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | Hartford Great Health Corp. | ||
Entity Central Index Key | 0001482554 | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2021 | ||
Amendment Flag | false | ||
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 | $ 6,653,600 | ||
Entity Common Stock, Shares Outstanding | 100,108,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 27,612 | $ 36,604 |
Restricted cash | 26,566 | |
Prepaid and Other current receivables | 286,232 | 173,819 |
Related party receivable | 325,864 | 753,076 |
Inventory | 323,814 | |
Total Current Assets | 990,088 | 963,499 |
Non-current Assets | ||
Restricted cash, noncurrent | 28,673 | |
Property and equipment, net | 593,517 | 467,881 |
ROU assets-operating lease | 3,837,186 | 4,499,693 |
Other assets | 321,807 | 329,235 |
Total Non-current Assets | 4,752,510 | 5,325,482 |
TOTAL ASSETS | 5,742,598 | 6,288,981 |
Current Liabilities | ||
Related party loan and payables | 4,391,325 | 2,966,651 |
Contract liabilities | 545,346 | 75,861 |
Current operating Lease liabilities | 2,508,959 | 991,506 |
Other current payable | 471,603 | 289,104 |
Total Current Liabilities | 7,917,233 | 4,323,122 |
Long-term loan from related party | 657,572 | |
Lease liabilities, noncurrent | 2,154,243 | 4,253,050 |
TOTAL LIABILITIES | 10,729,048 | 8,576,172 |
Commitments and contingencies (Note 16) | ||
Stockholders' Equity (Deficit) | ||
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, 100,108,000 and 99,108,000 shares outstanding as of July 31, 2021 and 2020, respectively | 100,108 | 99,108 |
Additional paid-in capital | 2,173,521 | 2,154,521 |
Accumulated deficit | (5,821,519) | (3,568,185) |
Accumulated other comprehensive loss | (233,487) | (55,146) |
Noncontrolling interest | (1,205,073) | (917,489) |
Total Stockholders' Deficit | (4,986,450) | (2,287,191) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 5,742,598 | $ 6,288,981 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2021 | Jul. 31, 2020 |
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 | 100,108,000 | 99,108,000 |
Common stock, shares outstanding | 100,108,000 | 99,108,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Total revenue | $ 553,459 | $ 98,307 |
Total Cost of revenues | 308,413 | 86,243 |
Gross Profit | 245,046 | 12,064 |
Operating expenses | ||
Depreciation and amortization | 85,103 | 69,941 |
Selling, general and administrative | 3,105,794 | 1,812,774 |
Goodwill impairment | 70,514 | 1,628,306 |
Total Operating Expenses | 3,261,411 | 3,511,021 |
Operating Loss | (3,016,365) | (3,498,957) |
Other Income (Expense) | ||
Interest (expense) income, net | (30,886) | 13,119 |
Gain on disposal of subsidiary | 104,317 | |
Other income (expense), net | 101,395 | (168,431) |
Other income (expense), net | 174,826 | (155,312) |
Loss before income taxes | (2,841,539) | (3,654,269) |
Income Tax Expense | 800 | 800 |
Net Loss | (2,842,339) | (3,655,069) |
Less: net loss attributable to noncontrolling Interest | (589,005) | (1,003,700) |
Net Loss Attributable to Hartford Great Health Corp | $ (2,253,334) | $ (2,651,369) |
Net loss per common share: Basic and Diluted | $ (0.02) | $ (0.03) |
Weighted average shares outstanding: Basic and diluted | 99,790,192 | 99,108,000 |
Tuition Revenue [Member] | ||
Total revenue | $ 435,150 | $ 29,583 |
Total Cost of revenues | 269,984 | 26,283 |
Service Revenue [Member] | ||
Total revenue | 118,309 | 68,724 |
Total Cost of revenues | $ 38,429 | $ 59,960 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Consolidated Statements Of Comprehensive Loss | ||
Net Loss | $ (2,253,334) | $ (2,651,369) |
Other Comprehensive income (loss), net of income tax | ||
Foreign currency translation adjustments | (217,953) | (67,633) |
Total other comprehensive loss | (217,953) | (67,633) |
Less: total other comprehensive loss attributable to noncontrolling interest | (39,612) | (18,879) |
Total Other Comprehensive Loss Attributable to Hartford Great Health Corp | (178,341) | (48,754) |
Total Comprehensive Loss | $ (2,431,675) | $ (2,700,123) |
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, 2019 | $ 99,108 | $ 2,154,521 | $ (916,816) | $ (6,392) | $ (81,141) | $ 1,249,280 |
Beginning Balance, shares at Jul. 31, 2019 | 99,108,000 | |||||
Net (loss) | (2,651,369) | (1,003,700) | (3,655,069) | |||
Contribution from noncontrolling interest | 186,231 | 186,231 | ||||
Foreign currency translation adjustment | (48,754) | (18,879) | (67,633) | |||
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 | |||||
Net (loss) | (2,253,334) | (589,005) | (2,842,339) | |||
Foreign currency translation adjustment | (178,341) | (39,612) | (217,953) | |||
Issuance of common stock | $ 1,000 | 19,000 | 20,000 | |||
Issuance of common stock, shares | 1,000,000 | |||||
Restructure of subsidiary | 403,131 | 403,131 | ||||
Disposal of subsidiary | (62,098) | (62,098) | ||||
Ending Balance at Jul. 31, 2021 | $ 100,108 | $ 2,173,521 | $ (5,821,519) | $ (233,487) | $ (1,205,073) | $ (4,986,450) |
Ending Balance, shares at Jul. 31, 2021 | 100,108,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss including noncontrolling interests | $ (2,842,339) | $ (3,655,069) |
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 85,103 | 69,941 |
Disposal of subsidiary, including noncontrolling interest | (104,317) | |
Debts forgiveness per court ruling | (162,806) | |
Loss absorbed from restructure of subsidiary | 403,131 | |
Loss on disposal of property and equipment | 760 | 6,659 |
Impairment loss | 70,514 | 1,628,306 |
Changes in operating assets and liabilities: | ||
Prepaid and Other current receivables | (87,978) | 10,041 |
Inventory | (299,588) | |
Other assets | 10,435 | (145,728) |
Related party receivables and payables | (185,693) | 66,954 |
Contract liabilities | 373,413 | 74,978 |
Other current payable | 312,902 | 112,365 |
Operating lease assets and liabilities | 17,779 | 406,572 |
Other liabilities | 27,108 | 24,953 |
Net cash (used in) operating activities | (2,381,575) | (1,400,028) |
Cash flows from investing activities: | ||
Cash proceeds from Acquisitions | 27,927 | |
Cash used in Acquisitions | (15,206) | |
Disposal of subsidiary | (30,116) | |
Repayment of Loan receivable | 323,078 | |
Purchases of property and equipment | (168,287) | (270,808) |
Net cash (used in) provided by investing activities | (185,682) | 52,270 |
Cash flows from financing activities: | ||
Contribution from noncontrolling interest | 184,438 | |
Proceeds from issuance of common stock | 20,000 | |
Proceeds of related party notes payable | 145,000 | |
Principal payments on finance lease | (22,049) | (19,878) |
Advances from related parties | 2,407,033 | 953,236 |
Net cash provided by financing activities | 2,549,984 | 1,117,796 |
Effect of exchange rate changes on cash | 6,174 | (3,485) |
Net change in Cash, cash equivalents and restricted cash | (11,099) | (233,447) |
Cash, cash equivalents and restricted cash at beginning of period | 65,277 | 298,724 |
Cash, cash equivalents and restricted cash at end of period | 54,178 | 65,277 |
Supplemental Cash Flow Information | ||
Interest paid | ||
Income taxes paid | 800 | 800 |
Non-cash investing and financing activities: | ||
Payable to acquiree | 10,462 | |
Investment return through three-party settlement | $ 765,131 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2021 | |
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. Through its wholly owned subsidiary - Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF) and HZHF’s 60 percent owned subsidiary - Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”), and through Shanghai Hartford Comprehensive Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), the Company engages in hospitality industry in China. Qiao Garden Int’l Travel was disposed on December 31, 2020, see note 4 Acquisitions, Joint Ventures and Deconsolidation. The Company started to engage in early childhood education industry at Hartford International Education Technology Co., Ltd (“HF Int’l Education”). On July 24, 2019 and March 23, 2020, HF Int’l Education established two 100% owned subsidiaries, Pudong Haojin Childhood Education Ltd. (“PDHJ”) and Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd.(“HDFD”), respectively, to operate the early childhood education service under the brand name of “HaiDeFuDe” in Shanghai, China. 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 (“Gelinke”). 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, 2021 and 2020, 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, 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, 2021 and 2020, nil of the Company’s cash and cash equivalents held by financial institutions were uninsured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. 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, 2021 and 2020, 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 fiscal years ended July 31, 2021 and 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. The goodwill generated from Gelinke acquisition in 2021 was fully impaired as of July 31, 2021. Reclassifications Certain amounts on the prior-year consolidated balance sheet, consolidated statement of operations and cash flows 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 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, 2021 and 2020, amount of $65,406 and $12,582 advertising expenses were incurred, respectively. 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. The 2017 Tax Reform Act permanently reduces the U.S. corporate income tax rate to a flat 21% rate. In addition, the 2017 Tax Reform 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. Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606) on August 1, 2019, applying the modified retrospective method to all contracts that were not completed as of August 1, 2019. The Company is building up its core business upon the completion of multiple acquisitions in March 2019 and impact of COVID-19 pandemic, limited operations occurred during the years ended July 31, 2021and 2020. The revenue for the year ended July 31, 2021 and 2020 were mainly generated from HZLJ, PDHJ and Gelinke. 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 recorded $545,346 and $75,861 unsatisfied performance obligations and contract liabilities as of July 31, 2021 and 2020, respectively. 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 and transferred to contract liabilities after trial period. 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. For the year ended July 31, 2021 and 2020, $435,150 and $29,582, respectively, of revenue were derived from early childhood education classes provided. 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. 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, 2021 or 2020. Recent Accounting Pronouncements. Recently adopted accounting pronouncements 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 generated from HZLJ and HFSH acquisition was fully impaired as of January 31, 2020, and the goodwill generated from Gelinke acquisition was impaired as of July 31, 2021 The Company adopted ASC 842 lease accounting policy on August 1, 2019 and elected not to restate comparative periods in transition and use the effective date of ASU No. 2016-02 as the date of initial application of ASC 842. As a result, the consolidated balance sheet prior to August 1, 2019 was not restated, and continues to be reported under previous lease 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. Recently issued accounting pronouncements not yet adopted 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. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which is intended to simplify various aspects related to accounting for income taxes. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. |
Going Concern
Going Concern | 12 Months Ended |
Jul. 31, 2021 | |
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 $ 5,821,519 as of July 31, 2021. 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, 2021 | |
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. On November 24, 2020, the Company issued additional 1,000,000 shares of common stock to a significant shareholder of the Company at $0.02 per share. As of July 31, 2021 and 2020, the company had a total of 100,108,000 and 99,108,000 shares of common stock issued and outstanding, respectively. |
Acquisitions, Joint Ventures an
Acquisitions, Joint Ventures and Deconsolidation | 12 Months Ended |
Jul. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions, Joint Ventures and Deconsolidation | NOTE 4. ACQUISITIONS, JOINT VENTURES AND DECONSOLIDATION 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. HFSH initially owned 65.0% ownership HF Int’l Education, and reduced to 61.0% during the year ended on July 31, 2020 because of equity transactions between noncontrolling shareholders. On June 19, 2020, the board of HF Int’l Education decided 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 held 75.5% of HF Int’l Education and a total of 24.5% equity was held by noncontrolling shareholders. Pursuant to the board meeting held on June 1, 2021, the noncontrolling shareholders sold a total 14.5% equity at zero consideration to HFSH. As a result, HFSH holds 90.0% of HF Int’l Education and $403,131 noncontrolling loss was absorbed by HFSH as a result of the ownership restructure at HF Int’l Education. Continuous operation losses caused by the market uncertainties including pandemic and government regulations, HF Int’l Education entered agreements to sell the copyrights of seven education textbooks and ten “HaiDeFuDe” registered trademarks owned for RMB1.2 million and RMB1.0 million, respectively, to Hartford Health Management (Shanghai) Co., Ltd (“HFHM”) in March 2021 with approval of the board of directors. The CEO of HFHM is a shareholder of the Company who owns more than 5% of the Company’s common stocks. 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. Acquisition of Gelinke On July 20, 2020, HF Int’l Education entered an agreement with two individuals to acquire the whole ownership of Gelinke, who engages at early childhood education services in Changning District, Shanghai. 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 purchase price to Gelinke’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 related transaction costs were immaterial and included in General and administrative expenses in the accompanying consolidated statements of operations. The acquisition was completed on August 31, 2021. The calculation of purchase price and purchase price allocation is as follows: Assets Acquired and Liabilities Assumed Cash and cash equivalents 1,809 Restricted Cash 25,009 Prepaid and Other current receivables 4,696 Property and Equipment, net 4,294 Unearned revenue (78,696 ) Goodwill 67,712 Total consideration* 24,824 *$10,462 (RMB70,000) payable to the acquiree plus $14,362 (RMB100,000) cash payment totaled $24,824 consideration for the acquisition. Goodwill is mainly attributable to synergies expected from the acquisition of license, list of customers and teacher workforce. Due to unfavorable operation result of Gelinke during the year ended July 31, 2021, management determined that $67,712 goodwill generated from Gelinke Acquisition was fully impaired. Other Acquisitions In January and February 2019, HFSH entered agreements to acquire 85 percent ownership of Shanghai Senior Health Consulting Ltd. (“SH Senior”) and 55 percent ownership of Shanghai Pasadena Ltd. (“SH Pasadena”). On December 31, 2020, HFSH withdrew from the two acquisition agreements. No penalty results from the withdrawn. In January 2019, HFSH entered agreements to acquire 100 percent equity interest of Shanghai Luo Sheng International Trade Ltd. (“SH Luosheng”), As of July 31, 2021, the agreement has not yet taken effect as no consideration has been paid toward this acquisition. The agreement 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 executing dates. There was no penalty levied or to be levied due to delayed execution or inexecution. On 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 effect as no consideration has been paid towards the acquisition. On June 12, 2020, the company withdraw from the acquisition and transferred the agreement to an individual with zero price. Disposal of subsidiary On December 31, 2020, HFSH disposed its 90 percent owned subsidiary - Qiao Garden Int’l Travel to an individual (the “Disposal”). The individual is a relative of the CEO, Qiao Garden Int’l Travel became a related party after deconsolidation. The operation results, assets and liabilities, and cash flows of Qiao Garden Int’l Travel were deconsolidated from the Company’s consolidated financial statements effective on December 31, 2020. The Disposal of Qiao Garden was consummated through a three-party settlement among HFSH, SH Qiaohong and Qiao Garden Int’l Travel (the “Three-Party Settlement”): the original investment RMB 4.5 million plus RMB 0.5 million investment income were agreed to returned from Qiao Garden Int’l Travel as a result of the Disposal and settled with a payable due to SH Qiaohong at SHHF, who was a debtor of Qiao Garden Int’l Travel, see Note 14, Related Party Transactions. Net assets (liabilities) disposed of: Net assets (liabilities) disposed of: Cash and cash equivalents 172 Restricted cash 29,944 Related party receivable 782,224 Related party payable (98,615 ) Other current payable (3,876 ) Noncontrolling interest (60,812 ) Net assets of the subsidiary, excluding noncontrolling interest 649,037 Consideration 753,354 Gain on disposal of the subsidiary (104,317 ) Gain on disposal of noncontrolling interest (60,812 ) Gain on disposal of the subsidiary, excluding noncontrolling interest (43,505 ) Net inflow / (outflow) of cash and cash equivalents in respect of the disposal subsidiary: Cash and cash equivalents (172 ) Restricted cash (29,944 ) Cash and cash equivalents deconsolidated (30,116 ) |
Restricted Cash
Restricted Cash | 12 Months Ended |
Jul. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | NOTE 5. RESTRICTED CASH The Company early adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, and includes restricted cash 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 are collaterals required by the local government in China for the early education license Gelinke held and the travel license Qiao Garden Int’l Travel held as of July 31, 2021 and 2020, respectively. 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, 2021 July 31, 2020 Cash and cash equivalents $ 27,612 $ 36,604 Restricted cash, current/noncurrent 26,566 28,673 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 54,178 $ 65,277 |
Loan Receivable
Loan Receivable | 12 Months Ended |
Jul. 31, 2021 | |
Receivables [Abstract] | |
Loan Receivable | NOTE 6. 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. Nil and $5,260 of interest income were recognized during the year ended July 31, 2021 and 2020, respectively. The loaned amount and interest have been fully paid back on June 11, 2020. 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. Nil and $10,202 of interest income were recognized during the years ended July 31, 2021 and 2020, respectively. The loan principal and interest accrued have been fully paid back on June 11, 2020. |
Prepaid and Other Current Recei
Prepaid and Other Current Receivables | 12 Months Ended |
Jul. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid and Other Current Receivables | NOTE 7. PREPAID AND OTHER CURRENT RECEIVABLES Prepaid and other current receivable amounts of $286,232 and $173,819 as of July 31, 2021 and 2020, respectively, mainly consist of advances for purchase and renovation project, employee operating advances and others. |
Inventory
Inventory | 12 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 8. INVENTORY Inventory mainly consists of books, the early childhood education materials. Inventory is stated at the lower of cost or net realizable value. As of July 31, 2021 and 2020, inventory balance was $323,814 and nil, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jul. 31, 2021 | |
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, 2021 and 2020: July 31, July 31, 2021 2020 Leasehold improvements $ 214,184 $ 181,378 Finance lease assets 290,714 269,304 Furniture and fixtures 289,000 202,241 Office equipment and vehicles 161,529 112,759 Construction in progress 67,044 19,326 1,022,471 785,008 Less: accumulated depreciation and amortization (428,954 ) (317,127 ) $ 593,517 $ 467,881 Depreciation expense for the years ended July 31, 2021 and 202, was $ 85,103 and $48,643, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Jul. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 10. OTHER ASSETS Other assets consist of the following at July 31, 2021 and 2020: July 31, 2021 July 31, 2020 Other miscellaneous assets $ 32,308 $ 40,265 Rental deposits 289,499 288,970 Deferred cost of finance lease - - $ 321,807 $ 329,235 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, 2021 and 2020 were Nil and $21,298, 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, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 11. GOODWILL Our goodwill was mainly contributed by the acquisitions during the fiscal year of 2021 and 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 management’s assessment, management determined that goodwill was fully impaired as of January 31, 2021 and 2020. The following is a roll-forward of goodwill for the years ended July 31, 2021 and 2020: Hangzhou Longjing Qiao Fu Vacation Hotel HFSH and Shanghai Qiao Garden Int’l Travel Agency HF Int’l Education -Gelinke Total Balance at July 31, 2019 $ 466,847 $ 573,170 $ - $ 1,040,017 Impairment (451,732 ) (554,611 ) - (1,006,343 ) Foreign Exchange (15,115 ) (18,559 ) - (33,674 ) Balance at July 31, 2020 $ - $ - $ - $ - Acquisitions - - 67,712 67,712 Impairment - - (70,514 ) (70,514 ) Foreign Exchange - - 2,802 2,802 Balance at July 31, 2021 $ - $ - $ - $ - |
Other Current Payable
Other Current Payable | 12 Months Ended |
Jul. 31, 2021 | |
Payables and Accruals [Abstract] | |
Other Current Payable | NOTE 12. OTHER CURRENT PAYABLES The following is a breakdown of the accounts and other payables as of July 31, 2021 and 2020: July 31, 2021 July 31, 2020 Payable to acquirees $ 151,317 $ 130,138 Accrued payroll 11,064 48,534 Payable to publisher 139,287 - Other payables 169,935 110,432 $ 471,603 $ 289,104 Payable to acquiree is the unpaid consideration for the acquisitions described in Note 4 Acquisitions and Joint Venture. |
Leases
Leases | 12 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 13. LEASES At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. 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, 2021, 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 one year to five years, with various term extensions available. Our finance lease has remaining lease term of thirty 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. In June 2018 and January 2019, HFSH and HF Int’l Education entered two lease agreements with Shanghai Longjin Corporate Management Co., Ltd (the “Sublessor”) to lease office spaces (the “Subleases”). HFSH and HF Int’l Education received Notices of Lease Termination from the Sublessor for late payments on April 13, 2020 and filed a civil lawsuit against the Sublessor on July 10, 2020 (see Note 16). And the original lease agreement entered between the Sublessor and the landlord of the office building (the “Landlord”) was terminated by the Landlord on June 1, 2020 due to payment default. The two sublease agreements entered with the Sublessor was terminated on June 1, 2020 and approximately $921,000 ROU and $891,000 lease liability associated with the two Subleases as of May 31, 2020 were eliminated and $29,000 other expenses was recognized as a result. HF Int’l Education entered a new lease agreement with the Landlord on June 1, 2020 for the same office spaces with a five-year term. On July 13, 2021, HF Int’l Education entered a sublease agreement with sub-lessee (a third party) for some office space with two-year term, amount of $5,003 was recognized as sublease income, included under other income, for the year ended July 31, 2021. On September 1, 2020, Gelinke entered a five-year new lease agreement at the original office location upon the completion of the acquisition. Approximately $1.2 million ROU and lease liability, respectively, were recognized with the new lease at lease commencement date. Subsequently on August 15, 2021, an early termination agreement was entered to terminate this lease on August 30, 2021. As a result, approximately $1 million ROU and lease liability, respectively, associated with this lease as of July 31, 2021 were eliminated and $40,005 gain was recognized. HZHF terminated its original office lease on January 6, 2021. Approximately $287,000 ROU and $258,000 lease liability associated with the original lease agreement were eliminated. On January 9, 2021, HFHZ entered into a two-year new lease with smaller space at the same location. Approximately $49,000 ROU and lease liability, respectively, were recognized with the new lease at lease commencement date. The finance lease was obtained through HZLJ acquisition on March 22, 2019. On October 1, 2010, HZLJ took over the lease of 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, 2021 and 2020 were as follows: July 31, July 31, 2021 2020 Assets Finance lease right-of-use assets, cost $ 290,714 $ 269,304 Less: accumulated amortization (80,547 ) (64,589 ) Finance lease right-of-use assets, net 210,167 204,715 ROU assets-Operating lease 3,837,186 4,499,693 Total Lease ROU assets $ 4,047,353 $ 4,704,408 Liabilities Current Operating Lease liabilities $ 2,508,959 $ 991,506 Operating lease liabilities, noncurrent 1,785,528 3,916,259 Finance lease liabilities, noncurrent 368,715 336,791 Total Lease liabilities $ 4,663,202 $ 5,244,556 The components of lease cost for the year ended July 31, 2021 and 2020: Years ended July 31, 2021 2020 Operating lease cost $ 1,346,787 $ 1,052,961 Finance leases: Amortization of ROU assets 6,967 6,568 Interest on finance lease liabilities 27,108 25,195 Finance lease cost 34,075 31,763 Total lease cost $ 1,380,862 $ 1,084,724 Supplemental cash flow information for leases for the years ended July 31, 2021 and 2020: Years ended July 31, 2021 2020 Operating cash flows paid for operating leases $ 1,238,198 $ 592,514 Financing cash flows paid for finance leases 22,049 19,878 The weighted-average remaining lease term and weighted-average discount rate for operating and finance leases at July 31, 2021 was as follows: Operating Leases Finance Leases Weighted-average remaining lease term (years) 4.0 30.0 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, 2021: Operating Leases Finance Leases 2022 $ 1,468,611 $ 23,214 2023 1,143,799 23,988 2024 1,196,012 24,762 2025 1,107,760 25,536 2026 88,028 26,310 2027 and thereafter - 955,660 Total lease payments $ 5,004,210 $ 1,079,470 Less interest (709,723 ) (710,755 ) Present value of future lease payments $ 4,294,487 $ 368,715 Current Lease liabilities $ 2,508,959 $ - Noncurrent Lease liabilities $ 1,785,528 $ 368,715 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jul. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14. RELATED PARTY TRANSACTIONS Related Party Receivables As of July 31, 2021 and 2020, amounts of $0 and $703,776, respectively, are due from Shanghai Qiaohong Real Estate Co., Ltd. (“SH Qiaohong”), the noncontrolling interest of HZLJ. 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. The balance was settled through a Three-way settlement agreement on December 31, 2020, see following “Three-Party Settlement Agreement” paragraph for detail. For the years ended July 31, 2021 and 2020, $18,662 and $37,676 of interest income were recognized, respectively. $295,916 advances to HFHM were made pursuant to the license agreements entered by HF Int’l Education and its three subsidiaries in June 2021. See Note 16 for details. The remaining related party receivable of $29,948 and $49,300 as of July 31, 2021 and 2020, 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. Related Party Payables As of July 31, 2021 and 2020, amounts of $616,159 and $674,830, are payable to SH Qiaohong, respectively. Majority of the balance at July 31, 2020 was assumed through HFSH acquisition, from its 90 percent owned entity, Qiao Garden Int’l Travel. This payable balance does not bear interest and due on demand. This balance was settled through a Three-way settlement agreement on December 31, 2020, see following “Three-Party Settlement Agreement” paragraph for detail. The balance at July 31, 2021 was mainly funding support from SH Qiaohong for operation. The funding support bears no interest and due on demand. As of July 31, 2021 and 2020, amount of $619,051 and $594,965, respectively, is payable to Shanghai Qiao Garden Property Management Group (“Qiao Garden Group”), an entity managed by the same management team. The balance was assumed through HZLJ acquisition. This payable balance does not bear interest and is considered due on demand. HFSH had payable balances to Shanghai Oversea Chinese Culture Media Ltd. (“SH Oversea”), an entity managed by the same management team, in the amounts of $2,926,782 and $1,012,650 as of July 31, 2021 and 2020, respectively. The payable is funding support from SH Oversea for operation, bears no interest and due on demand. From September 2020 to July 2021, the Company borrowed several notes in a total amount of $145,000, in form of a short-term loan at 5% per annum from a related party, Hartford Hotel Investment Inc., an entity managed by the same management team. $3,856 of interest expense was recorded during the year ended July 31, 2021. The unpaid principal and interest will be due on demand. As of July 31, 2021 and 2020, the Company has $657,572 and $592,106, respectively, short-term payable to Shanghai DuBian Assets Management Ltd. (“Dubian”), which is owned by the Company’s ex-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. On April 30, 2021, both parties entered a second long-term agreement to extend another two years, with expiration date on April 30, 2023, bearing approximately 4 percent of annual interest. $ 18,072 and $14,445 of interest expense were recognized during the year ended July 31, 2021 and 2020, respectively. The unpaid principal 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, 2021 and 2020, the estimated fair value of long term loan payable was approximately $ 655,940 and $591,521, respectively. The remaining related party payable of $80,477 and $92,100 as of July 31, 2021 and 2020, 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. Three-Party Settlement Agreement On December 31, 2020, a Three-Party Settlement agreement among HFSH, SH Qiaohong and Qiao Garden Int’l Travel was entered. Pursuant to the agreement, around $721,000 (RMB$5,031,699) payable due to SH Qiaohong under HFSH was settled with the receivable due from the same related party under Qiao Garden Int’l Travel through withdrawal of 90% ownership of Qiao Garden Int’l Travel HFSH owned. Total RMB5.0 million including the original investment RMB4.5 million was withdrawn from Qiao Garden Int’l Travel, and $104,317 (RMB697,000) gain on disposal was recognized at disposal date. 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 principal and interest will be due on the maturity dates. As of July 31, 2021, no balance was withdrawn from the two line of credits by HF Int’l Education. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Jul. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | NOTE 15. NONCONTROLLING INTERESTS Noncontrolling interests consisted of the following as of July 31, 2021 and 2020: Name of Entity % of Non- Controlling Interests July 31, 2020 Net loss Restructure of subsidiary Disposal of subsidiary Foreign currency translation adjustment July 31, 2021 HZLJ 40.0 % $ (889,068 ) $ (42,285 ) $ - $ - $ (31,645 ) $ (962,998 ) HF Int’l Education *10.0 % (88,692 ) (548,547 ) 403,131 - (7,967 ) (242,075 ) Qiao Garden Intl Travel - 60,271 1,827 - (62,098 ) - - Total $ (917,489 ) $ (589,005 ) $ 403,131 $ (62,098 ) $ (39,612 ) $ (1,205,073 ) Name of Entity % of Non- Controlling Interests July 31, 2019 Net loss Disposal of Noncontrolling interest Investment from Noncontrolling Interest Foreign currency translation adjustment 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, ex-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. In June 2021, SHHZJ and one individual shareholder transferred a total 14.5% noncontrolling interest of HF Int’l Education to SHHF at zero cost, see note 4 Acquisitions, joint ventures and deconsolidation . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2021 | |
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. Lawsuits related to lease agreements In June 2018 and January 2019, HFSH and HF Int’l Education entered two lease agreements with Shanghai Longjin Corporate Management Co., Ltd (the “Sublessor”) 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 Sublessor 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 Sublessor was further 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 on June 1, 2020 for the same office spaces in a five-year term. On July 7, 2021, the district court verdict the final ruling and awarded HFSH and HF Int’l Education total amounts of RMB870,336 and RMB268,450 to be returned by the Sublessor. However, the rental deposits of RMB313,286 paid to the Sublessor are non-refundable. No further appeal on these rental dispute cases will be granted. These final ruling proceedings are pending execution by the district court. Associated with this Sublessor under the two lease agreements, the Company previously accrued $165,698 rental payable net with deposit. As a result of the final ruling, the total $165,698 rental payable, net with deposit, accrued at HFSH and HF Int’l Education was written off and recognized as other income during the year ended July 31, 2021. License agreements In June 2021, HF Int’l Education and its three subsidiaries: PDHJ, HDFD and Gelinke entered license agreements with HFHM for the rights to use the intellectual Properties (the “IPs”) HFHM owns. The IPs cover in the license agreements are four set of curriculum structure designed and fifteen trademarks including “HaiDeFuDe” registered trademarks purchased from HF Int’l Education. As a return, on a monthly basis, HF Int’l Education and its subsidiaries pays 90% of its tuition revenue generated to HFHM as license usage fee. For the year ended July 31, 2021, the Company incurred $161,783 license to HFHM and advanced $295,916 to HFHM for the future license fees as of July 31, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 17. INCOME TAXES We recorded income tax expense of $800 for both of the years ended July 31, 2021 and 2020, 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-20 $ 3,568,185 2040 $ 1,070,456 $ (1,070,456 ) $ (795,411 ) $ - 31-Jul-21 $ 6,634,644 2041 $ 1,990,393 $ (1,990,393 ) $ (919,938 ) $ - Income taxes at the statutory rate are reconciled to reported income tax expense (benefit) as follows: 2021 2020 Federal income tax rate 21.0 % 21.0 % State income tax rate 8.8 % 8.8 % Foreign tax difference (4.1 )% (4.6 )% Non-taxable item adjustment (3.2 )% - % GILTI - % - % Valuation allowance (22.5 )% (25.2 )% 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 full 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. 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. There was no GILTI tax for the Company for the years ended July 31, 2021 and 2020 due to the operation losses incurred. |
Segment Information
Segment Information | 12 Months Ended |
Jul. 31, 2021 | |
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, 2021 and revenue generated during the year ended July 31, 2021, as follows: Hospitality Education Corporate and unallocated Total Revenue $ 118,309 $ 435,150 $ - $ 553,459 Operating loss (275,417 ) (2,588,174 ) (152,774 ) (3,016,365 ) Loss before tax 81,520 (2,764,798 ) (158,261 ) (2,841,539 ) Net Loss Attributable to Hartford Great Health Corp 121,966 (2,216,239 ) (159,061 ) (2,253,334 ) Total assets (excluding Intercompany balances) 388,688 5,441,654 (87,744 ) 5,742,598 Segment information on assets as of July 31, 2020 and revenue generated during the year ended July 31, 2020, as follows: Hospitality Education Corporate 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 |
Restatements
Restatements | 12 Months Ended |
Jul. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatements | NOTE 19. 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 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 20. SUBSEQUENT EVENTS In accordance with ASC 855 , “Subsequent Events” On August 19, 2021, the Company borrowed a note in a total amount of $60,000, in form of a short-term loan at 5% per annum from a related party. On September 13, 2021, Mr. Lianyue Song, resigned all his positions as the Company President, Chief Executive Officer and Chairman of the Board of Directors. On September 13, 2021, the Board appointed Ms. Rose Hong Wang to serve as the Company’s President, Chief Executive Officer and as Chairman of the Board of Directors. Due to the high rent for an old building environment, the Company decided to close the location of Gelinke’s in August 2021 . The office lease was terminated on August 30, 2021. Gelinke’s operation will resume when a more favorable location nearby is found. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2021 | |
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. Through its wholly owned subsidiary - Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF) and HZHF’s 60 percent owned subsidiary - Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”), and through Shanghai Hartford Comprehensive Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), the Company engages in hospitality industry in China. Qiao Garden Int’l Travel was disposed on December 31, 2020, see note 4 Acquisitions, Joint Ventures and Deconsolidation. The Company started to engage in early childhood education industry at Hartford International Education Technology Co., Ltd (“HF Int’l Education”). On July 24, 2019 and March 23, 2020, HF Int’l Education established two 100% owned subsidiaries, Pudong Haojin Childhood Education Ltd. (“PDHJ”) and Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd.(“HDFD”), respectively, to operate the early childhood education service under the brand name of “HaiDeFuDe” in Shanghai, China. 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 (“Gelinke”). |
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, 2021 and 2020, 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, 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, 2021 and 2020, nil of the Company’s cash and cash equivalents held by financial institutions were uninsured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. |
Receivables | 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, 2021 and 2020, 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 fiscal years ended July 31, 2021 and 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. The goodwill generated from Gelinke acquisition in 2021 was fully impaired as of July 31, 2021. |
Reclassifications | Reclassifications Certain amounts on the prior-year consolidated balance sheet, consolidated statement of operations and cash flows 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 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, 2021 and 2020, amount of $65,406 and $12,582 advertising expenses were incurred, respectively. |
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. The 2017 Tax Reform Act permanently reduces the U.S. corporate income tax rate to a flat 21% rate. In addition, the 2017 Tax Reform 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. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606) on August 1, 2019, applying the modified retrospective method to all contracts that were not completed as of August 1, 2019. The Company is building up its core business upon the completion of multiple acquisitions in March 2019 and impact of COVID-19 pandemic, limited operations occurred during the years ended July 31, 2021and 2020. The revenue for the year ended July 31, 2021 and 2020 were mainly generated from HZLJ, PDHJ and Gelinke. 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 recorded $545,346 and $75,861 unsatisfied performance obligations and contract liabilities as of July 31, 2021 and 2020, respectively. 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 and transferred to contract liabilities after trial period. 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. For the year ended July 31, 2021 and 2020, $435,150 and $29,582, respectively, of revenue were derived from early childhood education classes provided. 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. |
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, 2021 or 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Recently adopted accounting pronouncements 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 generated from HZLJ and HFSH acquisition was fully impaired as of January 31, 2020, and the goodwill generated from Gelinke acquisition was impaired as of July 31, 2021 The Company adopted ASC 842 lease accounting policy on August 1, 2019 and elected not to restate comparative periods in transition and use the effective date of ASU No. 2016-02 as the date of initial application of ASC 842. As a result, the consolidated balance sheet prior to August 1, 2019 was not restated, and continues to be reported under previous lease 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. Recently issued accounting pronouncements not yet adopted 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. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which is intended to simplify various aspects related to accounting for income taxes. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
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 Financial 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 |
Acquisitions, Joint Ventures _2
Acquisitions, Joint Ventures and Deconsolidation (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The acquisition was completed on August 31, 2021. The calculation of purchase price and purchase price allocation is as follows: Assets Acquired and Liabilities Assumed Cash and cash equivalents 1,809 Restricted Cash 25,009 Prepaid and Other current receivables 4,696 Property and Equipment, net 4,294 Unearned revenue (78,696 ) Goodwill 67,712 Total consideration* 24,824 *$10,462 (RMB70,000) payable to the acquiree plus $14,362 (RMB100,000) cash payment totaled $24,824 consideration for the acquisition. |
Schedule of Net Assets (Liabilities) Disposed of Subsidiary | Net assets (liabilities) disposed of: Net assets (liabilities) disposed of: Cash and cash equivalents 172 Restricted cash 29,944 Related party receivable 782,224 Related party payable (98,615 ) Other current payable (3,876 ) Noncontrolling interest (60,812 ) Net assets of the subsidiary, excluding noncontrolling interest 649,037 Consideration 753,354 Gain on disposal of the subsidiary (104,317 ) Gain on disposal of noncontrolling interest (60,812 ) Gain on disposal of the subsidiary, excluding noncontrolling interest (43,505 ) |
Schedule of Net Inflow (Outflow) of Cash and Cash Equivalents of Disposal Subsidiary | Net inflow / (outflow) of cash and cash equivalents in respect of the disposal subsidiary: Cash and cash equivalents (172 ) Restricted cash (29,944 ) Cash and cash equivalents deconsolidated (30,116 ) |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Cash and Cash Equivalents [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, 2021 July 31, 2020 Cash and cash equivalents $ 27,612 $ 36,604 Restricted cash, current/noncurrent 26,566 28,673 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 54,178 $ 65,277 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following at July 31, 2021 and 2020: July 31, July 31, 2021 2020 Leasehold improvements $ 214,184 $ 181,378 Finance lease assets 290,714 269,304 Furniture and fixtures 289,000 202,241 Office equipment and vehicles 161,529 112,759 Construction in progress 67,044 19,326 1,022,471 785,008 Less: accumulated depreciation and amortization (428,954 ) (317,127 ) $ 593,517 $ 467,881 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following at July 31, 2021 and 2020: July 31, 2021 July 31, 2020 Other miscellaneous assets $ 32,308 $ 40,265 Rental deposits 289,499 288,970 Deferred cost of finance lease - - $ 321,807 $ 329,235 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a roll-forward of goodwill for the years ended July 31, 2021 and 2020: Hangzhou Longjing Qiao Fu Vacation Hotel HFSH and Shanghai Qiao Garden Int’l Travel Agency HF Int’l Education -Gelinke Total Balance at July 31, 2019 $ 466,847 $ 573,170 $ - $ 1,040,017 Impairment (451,732 ) (554,611 ) - (1,006,343 ) Foreign Exchange (15,115 ) (18,559 ) - (33,674 ) Balance at July 31, 2020 $ - $ - $ - $ - Acquisitions - - 67,712 67,712 Impairment - - (70,514 ) (70,514 ) Foreign Exchange - - 2,802 2,802 Balance at July 31, 2021 $ - $ - $ - $ - |
Other Current Payable (Tables)
Other Current Payable (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
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, 2021 and 2020: July 31, 2021 July 31, 2020 Payable to acquirees $ 151,317 $ 130,138 Accrued payroll 11,064 48,534 Payable to publisher 139,287 - Other payables 169,935 110,432 $ 471,603 $ 289,104 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease-related Assets and Liabilities | Lease-related assets and liabilities at July 31, 2021 and 2020 were as follows: July 31, July 31, 2021 2020 Assets Finance lease right-of-use assets, cost $ 290,714 $ 269,304 Less: accumulated amortization (80,547 ) (64,589 ) Finance lease right-of-use assets, net 210,167 204,715 ROU assets-Operating lease 3,837,186 4,499,693 Total Lease ROU assets $ 4,047,353 $ 4,704,408 Liabilities Current Operating Lease liabilities $ 2,508,959 $ 991,506 Operating lease liabilities, noncurrent 1,785,528 3,916,259 Finance lease liabilities, noncurrent 368,715 336,791 Total Lease liabilities $ 4,663,202 $ 5,244,556 |
Schedule of Components of Lease Cost | The components of lease cost for the year ended July 31, 2021 and 2020: Years ended July 31, 2021 2020 Operating lease cost $ 1,346,787 $ 1,052,961 Finance leases: Amortization of ROU assets 6,967 6,568 Interest on finance lease liabilities 27,108 25,195 Finance lease cost 34,075 31,763 Total lease cost $ 1,380,862 $ 1,084,724 |
Schedule of Supplemental Cash Flow Information for Leases | Supplemental cash flow information for leases for the years ended July 31, 2021 and 2020: Years ended July 31, 2021 2020 Operating cash flows paid for operating leases $ 1,238,198 $ 592,514 Financing cash flows paid for finance leases 22,049 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, 2021 was as follows: Operating Leases Finance Leases Weighted-average remaining lease term (years) 4.0 30.0 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, 2021: Operating Leases Finance Leases 2022 $ 1,468,611 $ 23,214 2023 1,143,799 23,988 2024 1,196,012 24,762 2025 1,107,760 25,536 2026 88,028 26,310 2027 and thereafter - 955,660 Total lease payments $ 5,004,210 $ 1,079,470 Less interest (709,723 ) (710,755 ) Present value of future lease payments $ 4,294,487 $ 368,715 Current Lease liabilities $ 2,508,959 $ - Noncurrent Lease liabilities $ 1,785,528 $ 368,715 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interests | Noncontrolling interests consisted of the following as of July 31, 2021 and 2020: Name of Entity % of Non- Controlling Interests July 31, 2020 Net loss Restructure of subsidiary Disposal of subsidiary Foreign currency translation adjustment July 31, 2021 HZLJ 40.0 % $ (889,068 ) $ (42,285 ) $ - $ - $ (31,645 ) $ (962,998 ) HF Int’l Education *10.0 % (88,692 ) (548,547 ) 403,131 - (7,967 ) (242,075 ) Qiao Garden Intl Travel - 60,271 1,827 - (62,098 ) - - Total $ (917,489 ) $ (589,005 ) $ 403,131 $ (62,098 ) $ (39,612 ) $ (1,205,073 ) Name of Entity % of Non- Controlling Interests July 31, 2019 Net loss Disposal of Noncontrolling interest Investment from Noncontrolling Interest Foreign currency translation adjustment 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, ex-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. In June 2021, SHHZJ and one individual shareholder transferred a total 14.5% noncontrolling interest of HF Int’l Education to SHHF at zero cost, see note 4 Acquisitions, joint ventures and deconsolidation . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
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-20 $ 3,568,185 2040 $ 1,070,456 $ (1,070,456 ) $ (795,411 ) $ - 31-Jul-21 $ 6,634,644 2041 $ 1,990,393 $ (1,990,393 ) $ (919,938 ) $ - |
Schedule of Effective Income Tax Rate Reconciliation | Income taxes at the statutory rate are reconciled to reported income tax expense (benefit) as follows: 2021 2020 Federal income tax rate 21.0 % 21.0 % State income tax rate 8.8 % 8.8 % Foreign tax difference (4.1 )% (4.6 )% Non-taxable item adjustment (3.2 )% - % GILTI - % - % Valuation allowance (22.5 )% (25.2 )% Others - % - % Effective tax rate 0.0 % 0.0 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information on assets as of July 31, 2021 and revenue generated during the year ended July 31, 2021, as follows: Hospitality Education Corporate and unallocated Total Revenue $ 118,309 $ 435,150 $ - $ 553,459 Operating loss (275,417 ) (2,588,174 ) (152,774 ) (3,016,365 ) Loss before tax 81,520 (2,764,798 ) (158,261 ) (2,841,539 ) Net Loss Attributable to Hartford Great Health Corp 121,966 (2,216,239 ) (159,061 ) (2,253,334 ) Total assets (excluding Intercompany balances) 388,688 5,441,654 (87,744 ) 5,742,598 Segment information on assets as of July 31, 2020 and revenue generated during the year ended July 31, 2020, as follows: Hospitality Education Corporate 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 |
Restatements (Tables)
Restatements (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Accounting Changes and Error Corrections [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 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | ||||
Jul. 31, 2021USD ($)shares | Jul. 31, 2020USD ($)shares | Jul. 31, 2021CNY (¥) | Mar. 23, 2020 | Jul. 24, 2019 | |
FDIC insured amount | $ 250,000 | ||||
Cash and cash equivalents | |||||
Goodwill impairment assessment | 1,006,343 | ||||
Deferred lease cost | 621,963 | ||||
Advertising cost | $ 65,406 | $ 12,582 | |||
Income tax examination description | The 2017 Tax Reform Act permanently reduces the U.S. corporate income tax rate to a flat 21% rate. In addition, the 2017 Tax Reform 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 CFC's U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. | ||||
Income tax rate | 0.00% | 0.00% | |||
Contract liabilities | $ 545,346 | $ 75,861 | |||
Revenue | $ 553,459 | $ 98,307 | |||
Potentially dilutive shares | shares | |||||
Early Childhood Education Services [Member] | |||||
Revenue | $ 435,150 | $ 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% | 60.00% | |||
Shanghai Hartford Comprehensive Health Management, Ltd. [Member] | |||||
Acquired percentage | 90.00% | 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, 2021 | |
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 Financial Statement (Details) - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Prepaid and Other current receivables | $ 312,503 | $ 386,700 | ||
ROU assets-Operating lease | $ 3,837,186 | $ 4,499,693 | 4,185,827 | |
Current Operating Lease liabilities | 2,508,959 | $ 991,506 | 651,424 | |
Operating lease liabilities | $ 4,294,487 | $ 3,481,229 | ||
Adjustments [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, 2021 | Jul. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (5,821,519) | $ (3,568,185) |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Nov. 24, 2020 | Dec. 11, 2018 | Jul. 31, 2021 | Jul. 31, 2020 |
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 | ||
Common stock, shares issued | 100,108,000 | 99,108,000 | ||
Common stock, shares outstanding | 100,108,000 | 99,108,000 | ||
Issuance of common stock, shares | 96,090,000 | |||
Share price | $ 0.02 | |||
Issuance of common stock, capital in cash | $ 1,921,800 | $ 20,000 | ||
Shareholder [Member] | ||||
Issuance of common stock, shares | 1,000,000 | |||
Share price | $ 0.02 |
Acquisitions, Joint Ventures _3
Acquisitions, Joint Ventures and Deconsolidation (Details Narrative) | Jun. 01, 2021 | Dec. 31, 2020CNY (¥) | Mar. 22, 2019 | Jul. 31, 2021USD ($) | Jul. 31, 2020USD ($) | Jul. 31, 2021CNY (¥) | Mar. 31, 2021 | Jul. 31, 2020CNY (¥) | Jun. 19, 2020CNY (¥) | Jul. 31, 2019USD ($) | Jun. 30, 2019 | May 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 |
Goodwill | $ | $ 1,040,017 | |||||||||||||
Investment from noncontrolling interest | $ | $ 186,231 | |||||||||||||
HF Int'l Education [Member] | ||||||||||||||
Noncontrolling shareholders, description | Pursuant to the board meeting held on June 1, 2021, the noncontrolling shareholders sold a total 14.5% equity at zero consideration to HFSH. As a result, HFSH holds 90.0% of HF Int'l Education and $403,131 noncontrolling loss was absorbed by HFSH as a result of the ownership restructure at HF Int'l Education. | As a result, HFSH held 75.5% of HF Int'l Education and a total of 24.5% equity was held by noncontrolling shareholders. | ||||||||||||
Shanghai Gelinke Childcare Education Center [Member] | ||||||||||||||
Goodwill | $ | 67,712 | |||||||||||||
Shanghai Senior Health Consulting Ltd. [Member] | ||||||||||||||
Business acquired ownership interest | 85.00% | 85.00% | ||||||||||||
Shanghai Pasadena Ltd. [Member] | ||||||||||||||
Business acquired ownership interest | 55.00% | 55.00% | ||||||||||||
Shanghai Luo Sheng International Trade Ltd. [Member] | ||||||||||||||
Business acquired ownership interest | 100.00% | |||||||||||||
Shanghai Ren Lai Ren Wang Restaurant Co., Ltd. [Member] | ||||||||||||||
Business acquired ownership interest | 60.00% | 60.00% | ||||||||||||
Qiao Garden International Travel Agency [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | ||||||||||||||
Disposed of owned subsidiary company percentage | 90.00% | |||||||||||||
Qiao Garden International Travel Agency [Member] | RMB [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | ||||||||||||||
Investment from noncontrolling interest | ¥ 4,500,000 | 4,500,000 | ||||||||||||
Investment income | ¥ 500,000 | $ 5,000,000 | ||||||||||||
Shareholders [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | ||||||||||||||
Noncontrolling ownership interest | 61.00% | |||||||||||||
Joint Venture Agreement [Member] | ||||||||||||||
Joint venture acquired ownership interest | 65.00% | |||||||||||||
Joint Venture Agreement [Member] | Hartford International Education Technology Co., Ltd [Member] | ||||||||||||||
Registered capital | ¥ | ¥ 1,200,000 | ¥ 1,000,000 | ||||||||||||
Joint Venture Agreement [Member] | Maximum [Member] | ||||||||||||||
Registered capital | ¥ | ¥ 10,000,000 | |||||||||||||
Joint Venture Agreement [Member] | Minimum [Member] | ||||||||||||||
Registered capital | ¥ | ¥ 5,000,000 | |||||||||||||
Joint Venture Agreement [Member] | Chief Executive Officer [Member] | Hartford International Education Technology Co., Ltd [Member] | ||||||||||||||
Joint venture acquired ownership interest | 5.00% |
Acquisitions, Joint Ventures _4
Acquisitions, Joint Ventures and Deconsolidation - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Shanghai Gelinke Childcare Education Center [Member] | Jul. 20, 2020USD ($) | |
Cash and cash equivalents | $ 1,809 | |
Restricted Cash | 25,009 | |
Prepaid and Other current receivables | 4,696 | |
Property and Equipment, net | 4,294 | |
Unearned revenue | (78,696) | |
Goodwill | 67,712 | |
Total consideration | $ 24,824 | [1] |
[1] | $10,462 (RMB70,000) payable to the acquiree plus $14,362 (RMB100,000) cash payment totaled $24,824 consideration for the acquisition. |
Acquisitions, Joint Ventures _5
Acquisitions, Joint Ventures and Deconsolidation - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) (Parenthetical) - Jul. 20, 2020 - Shanghai Gelinke Childcare Education Center [Member] | USD ($) | CNY (¥) | |
Purchase price | $ 10,462 | ||
Cash payments to acquire business | 14,362 | ||
Total consideration | [1] | 24,824 | |
RMB [Member] | |||
Purchase price | ¥ | ¥ 70,000 | ||
Cash payments to acquire business | $ 100,000 | ||
[1] | $10,462 (RMB70,000) payable to the acquiree plus $14,362 (RMB100,000) cash payment totaled $24,824 consideration for the acquisition. |
Acquisitions, Joint Ventures _6
Acquisitions, Joint Ventures and Deconsolidation - Schedule of Net Assets (Liabilities) Disposed of Subsidiary (Details) - Qiao Garden Intel Travel [Member] | Dec. 31, 2020USD ($) |
Cash and cash equivalents | $ 172 |
Restricted cash | 29,944 |
Related party receivable | 782,224 |
Related party payable | (98,615) |
Other current payable | (3,876) |
Noncontrolling interest | (60,812) |
Net assets of the subsidiary, excluding noncontrolling interest | 649,037 |
Consideration | 753,354 |
Gain on disposal of the subsidiary | (104,317) |
Gain on disposal of noncontrolling interest | (60,812) |
Gain on disposal of the subsidiary, excluding noncontrolling interest | $ (43,505) |
Acquisitions, Joint Ventures _7
Acquisitions, Joint Ventures and Deconsolidation - Schedule of Net Inflow (Outflow) of Cash and Cash Equivalents of Disposal Subsidiary (Details) - Qiao Garden Intel Travel [Member] | Dec. 31, 2020USD ($) |
Cash and cash equivalents | $ (172) |
Restricted cash | (29,944) |
Cash and cash equivalents deconsolidated | $ (30,116) |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 27,612 | $ 36,604 |
Restricted cash, current/noncurrent | 26,566 | 28,673 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 54,178 | $ 65,277 |
Loan Receivable (Details Narrat
Loan Receivable (Details Narrative) - USD ($) | May 12, 2020 | Mar. 04, 2020 | Jul. 31, 2021 | Jul. 31, 2020 |
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 | |||
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 |
Prepaid and Other Current Rec_2
Prepaid and Other Current Receivables (Details Narrative) - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid and other current receivables | $ 286,232 | $ 173,819 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory's net | $ 323,814 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 85,103 | $ 48,643 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Property and equipment, gross | $ 1,022,471 | $ 785,008 |
Less: accumulated depreciation and amortization | (428,954) | (317,127) |
Property and equipment, net | 593,517 | 467,881 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 214,184 | 181,378 |
Finance Lease Assets [Member] | ||
Property and equipment, gross | 290,714 | 269,304 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 289,000 | 202,241 |
Office Equipment and Vehicles [Member] | ||
Property and equipment, gross | 161,529 | 112,759 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 67,044 | $ 19,326 |
Other Assets (Details Narrative
Other Assets (Details Narrative) | 12 Months Ended | |||
Jul. 31, 2021USD ($) | Jul. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2019CNY (¥) | |
Finance lease | $ 368,715 | |||
Amortization expense | $ 21,298 | |||
Impairment cost | $ 621,963 | |||
Land Use Rights and Hotel Building [Member] | Finance Lease Liability [Member] | ||||
Finance lease | $ 879,800 | |||
Land Use Rights and Hotel Building [Member] | Finance Lease Liability [Member] | RMB [Member] | ||||
Finance lease | ¥ | ¥ 6,000,000 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other miscellaneous assets | $ 32,308 | $ 40,265 |
Rental deposits | 289,499 | 288,970 |
Deferred cost of finance lease | ||
Other assets | $ 321,807 | $ 329,235 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Goodwill beginning balance | $ 1,040,017 | |
Acquisitions | 67,712 | |
Impairment | (70,514) | (1,006,343) |
Foreign Exchange | 2,802 | (33,674) |
Goodwill ending balance | ||
Hangzhou Longjing Qiao Fu Vacation Hotel [Member] | ||
Goodwill beginning balance | 466,847 | |
Acquisitions | ||
Impairment | (451,732) | |
Foreign Exchange | (15,115) | |
Goodwill ending balance | ||
HFSH and Shanghai Qiao Garden Int'l Travel [Member] | ||
Goodwill beginning balance | 573,170 | |
Acquisitions | ||
Impairment | (554,611) | |
Foreign Exchange | (18,559) | |
Goodwill ending balance | ||
HF Int'l Education - Gelinke [Member] | ||
Goodwill beginning balance | ||
Acquisitions | 67,712 | |
Impairment | (70,514) | |
Foreign Exchange | 2,802 | |
Goodwill ending balance |
Other Current Payable - Schedul
Other Current Payable - Schedule of Accounts and Other Payables (Details) - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Payables and Accruals [Abstract] | ||
Payable to acquirees | $ 151,317 | $ 130,138 |
Accrued payroll | 11,064 | 48,534 |
Payable to publisher | 139,287 | |
Other payables | 169,935 | 110,432 |
Other Current Payables | $ 471,603 | $ 289,104 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | May 31, 2020 | Jul. 31, 2021 | Aug. 30, 2021 | Jan. 09, 2021 | Jan. 06, 2021 | Sep. 02, 2020 | Jul. 31, 2020 | Jun. 01, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Finance leases remaining term | 30 years | |||||||||
ROU of lease liability | $ 3,837,186 | $ 4,499,693 | $ 4,185,827 | |||||||
Lease liability | $ 4,294,487 | $ 3,481,229 | ||||||||
Hangzhou Hartford Comprehensive Health Management, Ltd [Member] | ||||||||||
Operating leases remaining term | 2 years | |||||||||
ROU of lease liability | $ 49,000 | $ 287,000 | ||||||||
Lease liability | $ 49,000 | $ 258,000 | ||||||||
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | ||||||||||
Finance leases remaining term | 41 years | |||||||||
Two Sublease Agreements [Member] | ||||||||||
ROU of lease liability | $ 921,000 | |||||||||
Lease liability | 891,000 | |||||||||
Other expenses | $ 29,000 | |||||||||
New Lease Agreement [Member] | ||||||||||
Lease term | 5 years | |||||||||
Sublease Agreements [Member] | Hartford International Education Technology Co., Ltd [Member] | ||||||||||
Sublease income | $ 5,003 | |||||||||
Sublease term description | On July 13, 2021, HF Int'l Education entered a sublease agreement with sub-lessee (a third party) for some office space with two-year term, amount of $5,003 was recognized as sublease income, included under other income, for the year ended July 31, 2021. | |||||||||
Five-Year New Lease Agreement [Member] | Shanghai Gelinke Childcare Education Center [Member] | ||||||||||
ROU of lease liability | $ 1,200,000 | |||||||||
Lease liability | $ 1,200,000 | |||||||||
Lease term | 5 years | |||||||||
Early Termination Agreement [Member] | Subsequent Event [Member] | ||||||||||
ROU of lease liability | $ 1,000,000 | |||||||||
Lease liability | $ 1,000,000 | |||||||||
Early Termination Agreement [Member] | Shanghai Gelinke Childcare Education Center [Member] | ||||||||||
Gain on termination of lease | $ 40,005 | |||||||||
Minimum [Member] | ||||||||||
Operating leases remaining term | 1 year | |||||||||
Maximum [Member] | ||||||||||
Operating leases remaining term | 5 years |
Leases - Schedule of Lease-rela
Leases - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Leases [Abstract] | ||||
Finance lease right-of-use assets, cost | $ 290,714 | $ 269,304 | ||
Less: accumulated amortization | (80,547) | (64,589) | ||
Finance lease right-of-use assets, net | 210,167 | 204,715 | ||
ROU assets-Operating lease | 3,837,186 | 4,499,693 | $ 4,185,827 | |
Total Lease ROU assets | 4,047,353 | 4,704,408 | ||
Current Operating Lease liabilities | 2,508,959 | 991,506 | $ 651,424 | |
Operating lease liabilities, noncurrent | 1,785,528 | 3,916,259 | ||
Finance lease liabilities, noncurrent | 368,715 | 336,791 | ||
Total Lease liabilities | $ 4,663,202 | $ 5,244,556 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,346,787 | $ 1,052,961 |
Amortization of ROU assets | 6,967 | 6,568 |
Interest on finance lease liabilities | 27,108 | 25,195 |
Finance lease cost | 34,075 | 31,763 |
Total lease cost | $ 1,380,862 | $ 1,084,724 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information for Leases (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows paid for operating leases | $ 1,238,198 | $ 592,514 |
Financing cash flows paid for finance leases | $ 22,049 | $ 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, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) Operating Leases | 4 years |
Weighted-average remaining lease term (years) Finance Leases | 30 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, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Leases [Abstract] | ||||
Operating Leases, 2022 | $ 1,468,611 | |||
Operating Leases, 2023 | 1,143,799 | |||
Operating Leases, 2024 | 1,196,012 | |||
Operating Leases, 2025 | 1,107,760 | |||
Operating Leases, 2026 | 88,028 | |||
Operating Leases, 2027 and thereafter | ||||
Operating Leases, Total lease payments | 5,004,210 | |||
Less interest | (709,723) | |||
Present value of future lease payments | 4,294,487 | $ 3,481,229 | ||
Including: current lease liabilities | 2,508,959 | $ 991,506 | $ 651,424 | |
Including: noncurrent lease liabilities | 1,785,528 | 3,916,259 | ||
Finance Leases, 2022 | 23,214 | |||
Finance Leases, 2023 | 23,988 | |||
Finance Leases, 2024 | 24,762 | |||
Finance Leases, 2025 | 25,536 | |||
Finance Leases, 2026 | 26,310 | |||
Finance Leases, 2027 and thereafter | 955,660 | |||
Finance Leases, Total lease payments | 1,079,470 | |||
Less interest | (710,755) | |||
Present value of future lease payments | 368,715 | |||
Including: current lease liabilities | ||||
Including: noncurrent lease liabilities | $ 368,715 | $ 336,791 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Jul. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Sep. 30, 2019USD ($) | Jul. 31, 2019 | Jul. 31, 2021USD ($) | Jul. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Jul. 30, 2020USD ($) |
Estimated fair value of long term loans payable | $ 655,940 | $ 655,940 | $ 591,521 | |||||
Proceeds from related party | 145,000 | |||||||
Investment from noncontrolling interest | 186,231 | |||||||
Gain on disposal of subsidiary | 104,317 | |||||||
RMB [Member] | ||||||||
Gain on disposal of subsidiary | 697,000 | |||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | ||||||||
Due to/from related party | $ 721,000 | |||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | RMB [Member] | ||||||||
Due to/from related party | $ 5,031,699 | |||||||
Qiao Garden International Travel Agency [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | RMB [Member] | ||||||||
Investment income | ¥ 500,000 | 5,000,000 | ||||||
Investment from noncontrolling interest | ¥ 4,500,000 | 4,500,000 | ||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | Qiao Garden International Travel Agency [Member] | ||||||||
Acquired percentage | 90.00% | 90.00% | ||||||
Shanghai Qiaohong Real Estate Co., Ltd. [Member] | ||||||||
Related party receivables | 0 | $ 0 | $ 703,776 | |||||
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 | $ 18,662 | 37,676 | ||||||
Related Party Payables | 616,159 | 616,159 | 674,830 | |||||
HFHM Member] | License [Member] | ||||||||
Advance from related party | 295,916 | 295,916 | ||||||
Affiliates [Member] | ||||||||
Related party receivables | 29,945 | 29,945 | 49,300 | |||||
Related Party Payables | 80,477 | 80,477 | 92,100 | |||||
Shanghai Qiao Garden Property Management Group [Member] | ||||||||
Related Party Payables | 619,051 | 619,051 | 594,965 | |||||
Shanghai Oversea Chinese Culture Media Ltd. [Member] | ||||||||
Related Party Payables | 2,926,782 | 2,926,782 | 1,012,650 | |||||
Hartford Hotel Investment Inc [Member] | Related Party [Member] | ||||||||
Short term borrowings | $ 145,000 | $ 145,000 | ||||||
Short term debt interest rate, percentage | 5.00% | 5.00% | ||||||
Interest expense | $ 3,856 | |||||||
Shanghai DuBian Assets Management Ltd. [Member] | ||||||||
Interest expense | 18,072 | 14,445 | ||||||
Short-term and long-term payable | $ 657,572 | $ 657,572 | $ 592,106 | |||||
Expiration date | Apr. 30, 2021 | |||||||
Interest rate | 2.50% | |||||||
Shanghai DuBian Assets Management Ltd. [Member] | Second Long Term Agreement [Member] | ||||||||
Expiration date | Apr. 30, 2023 | |||||||
Interest rate | 4.00% | |||||||
HF Int'l Education [Member] | Two Debt Agreements [Member] | ||||||||
Debt instrument, term | 2 years | |||||||
Line of credit facility, annum interest rate | 3.00% | |||||||
HF Int'l Education [Member] | Two Debt Agreements [Member] | RMB [Member] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 9,000,000 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | ||
Non-Controlling Interests beginning balance | $ (917,489) | $ (81,141) | |
Net loss | (589,005) | (1,003,700) | |
Restructure of subsidary | 403,131 | ||
Disposal of subsidiary | (62,098) | ||
Disposal of Noncontrolling interest | (12,771) | ||
Investment from Noncontrolling Interest | 186,231 | ||
Foreign currency translation adjustment | (39,612) | (18,879) | |
Non-Controlling Interests ending balance | $ (1,205,073) | $ (917,489) | |
HZLJ [Member] | |||
% of Non-Controlling Interests | 40.00% | 40.00% | |
Non-Controlling Interests beginning balance | $ (889,068) | $ (250,794) | |
Net loss | (42,285) | (619,980) | |
Restructure of subsidary | |||
Disposal of subsidiary | |||
Disposal of Noncontrolling interest | |||
Investment from Noncontrolling Interest | |||
Foreign currency translation adjustment | (31,645) | (18,294) | |
Non-Controlling Interests ending balance | $ (962,998) | $ (889,068) | |
HF Int'l Education [Member] | |||
% of Non-Controlling Interests | [1] | 10.00% | 39.00% |
Non-Controlling Interests beginning balance | $ (88,692) | $ 104,923 | |
Net loss | (548,547) | (365,250) | |
Restructure of subsidary | 403,131 | ||
Disposal of subsidiary | |||
Disposal of Noncontrolling interest | (12,771) | ||
Investment from Noncontrolling Interest | 186,231 | ||
Foreign currency translation adjustment | (7,967) | (1,825) | |
Non-Controlling Interests ending balance | $ (242,075) | $ (88,692) | |
Qiao Garden Intl Travel [Member] | |||
% of Non-Controlling Interests | 10.00% | ||
Non-Controlling Interests beginning balance | $ 60,271 | $ 64,730 | |
Net loss | 1,827 | (5,699) | |
Restructure of subsidary | |||
Disposal of subsidiary | (62,098) | ||
Disposal of Noncontrolling interest | |||
Investment from Noncontrolling Interest | |||
Foreign currency translation adjustment | 1,240 | ||
Non-Controlling Interests ending balance | $ 60,271 | ||
[1] | 90% equity of SHHZJ, a limited partnership and 10% shareholder of HF Int'l Education, is held by Mr. Song, ex-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. In June 2021, SHHZJ and one individual shareholder transferred a total 14.5% noncontrolling interest of HF Int'l Education to SHHF at zero cost, see note 4 Acquisitions, joint ventures and deconsolidation. |
Noncontrolling Interests - Sc_2
Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) (Parenthetical) | 12 Months Ended |
Jul. 31, 2021 | |
HF Int'l Education [Member] | |
Equity ownership percentage | 10.00% |
Noncontrolling shareholders, description | In June 2021, SHHZJ and one individual shareholder transferred a total 14.5% noncontrolling interest of HF Int'l Education to SHHF at zero cost, see note 4 Acquisitions, joint ventures and deconsolidation. |
SHHZJ [Member] | |
Equity ownership percentage | 90.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Jul. 07, 2021 | Jun. 30, 2021 | Apr. 13, 2020 | Jul. 31, 2021 |
HFHM Member] | License [Member] | ||||
License expenses | $ 161,783 | |||
Payment to license fee | $ 295,916 | |||
Intellectual Properties [Member] | HFHM Member] | ||||
License Description | In June 2021, HF Int’l Education and its three subsidiaries: PDHJ, HDFD and Gelinke entered license agreements with HFHM for the rights to use the intellectual Properties (the “IPs”) HFHM owns. The IPs cover in the license agreements are four set of curriculum structure designed and fifteen trademarks including “HaiDeFuDe” registered trademarks purchased from HF Int’l Education. As a return, on a monthly basis, HF Int’l Education and its subsidiaries pays 90% of its tuition revenue generated to HFHM as license usage fee | |||
RMB [Member] | HFSF [Member] | Sublessor [Member] | ||||
Litigation settlement received | $ 870,336 | |||
RMB [Member] | Hartford International Education Technology Co., Ltd [Member] | Sublessor [Member] | ||||
Litigation settlement received | 268,450 | |||
Two Lease Agreements [Member] | ||||
Refund of fictitious office property requested | $ 481,000 | |||
Lease agreement, date | Jun. 1, 2020 | |||
Lease agreement, description | HF Int’l Education entered a new lease agreement with the Landlord on June 1, 2020 for the same office spaces in a five-year term. | |||
Other income | $ 165,698 | |||
Two Lease Agreements [Member] | RMB [Member] | ||||
Refund of fictitious office property requested | $ 3,300,000 | |||
Two Lease Agreements [Member] | RMB [Member] | Nonrefundable Rental Depoit [Member] | ||||
Rental deposit | $ 313,286 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 800 | $ 800 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Valuation (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Net NOL carry-forward | $ 6,634,644 | $ 3,568,185 |
NOL expires | 2041 | 2040 |
Estimated tax benefit from NOL and other tax benefits (21%) | $ 1,990,393 | $ 1,070,456 |
Valuation allowance | (1,990,393) | (1,070,456) |
Change in valuation allowance | (919,938) | (795,411) |
Net deferred tax asset |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Valuation (Details) (Parenthetical) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Estimated tax benefit from NOL and other tax benefits | 21.00% | 21.00% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21.00% | 21.00% |
State income tax rate | 8.80% | 8.80% |
Foreign tax difference | (4.10%) | (4.60%) |
Non-taxable item adjustment | (3.20%) | 0.00% |
GILTI | 0.00% | 0.00% |
Valuation allowance | (22.50%) | (25.20%) |
Others | 0.00% | 0.00% |
Effective tax rate | 0.00% | 0.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Revenue | $ 553,459 | $ 98,307 |
Operating loss | (3,016,365) | (3,498,957) |
Loss before tax | (2,841,539) | (3,654,269) |
Net Loss Attributable to Hartford Great Health Corp | (2,253,334) | (2,651,369) |
Total assets (excluding Intercompany balances) | 5,742,598 | 6,288,981 |
Hospitality [Member] | ||
Revenue | 118,309 | 68,724 |
Operating loss | (275,417) | (2,231,236) |
Loss before tax | 81,520 | (2,260,026) |
Net Loss Attributable to Hartford Great Health Corp | 121,966 | (1,744,600) |
Total assets (excluding Intercompany balances) | 388,688 | 1,379,590 |
Education [Member] | ||
Revenue | 435,150 | 29,583 |
Operating loss | (2,588,174) | (1,088,494) |
Loss before tax | (2,764,798) | (1,230,479) |
Net Loss Attributable to Hartford Great Health Corp | (2,216,239) | (742,205) |
Total assets (excluding Intercompany balances) | 5,441,654 | 4,855,413 |
Corporate and Unallocated [Member] | ||
Revenue | ||
Operating loss | (152,774) | (179,227) |
Loss before tax | (158,261) | (163,764) |
Net Loss Attributable to Hartford Great Health Corp | (159,061) | (164,564) |
Total assets (excluding Intercompany balances) | $ (87,744) | $ 53,978 |
Restatements - Schedule of Rest
Restatements - Schedule of Restated Consolidated Statement of Cash Flow (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Related party receivables and payables | $ (185,693) | $ 66,954 |
Net cash (used in) operating activities | (2,381,575) | (1,400,028) |
Advances from related parties | 2,407,033 | 953,236 |
Net cash provided by financing activities | $ 2,549,984 | 1,117,796 |
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 | |
Adjustments [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) |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - Related Party [Member] - USD ($) | 13 Months Ended | |
Aug. 31, 2021 | Aug. 19, 2021 | |
Short term borrowings | $ 60,000 | |
Short term debt interest rate, percentage | 5.00% |