Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Oct. 31, 2020 | Nov. 30, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Mu Yan Technology Group Co., Ltd | |
Entity Central Index Key | 0001617351 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-31 | |
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 Common Stock, Shares Outstanding | 307,430,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Oct. 31, 2020 | Jul. 31, 2020 | |
Current assets | |||
Cash and cash equivalents | $ 165,726 | $ 864,860 | |
Down payment to suppliers | 26,983 | 179,426 | |
Amount due from related parties | 581,568 | 1,073,761 | |
Other receivables | 3,063,649 | 93,067 | |
Inventory, net | 721,205 | 1,212,381 | |
Held for sale assets | 2,156,077 | 2,075,326 | |
Total current assets | 6,715,208 | 5,498,821 | |
Non-current assets | |||
Property, plant and equipment, net | 199,388 | 204,103 | |
Operating lease right-of-use assets | 470,135 | 515,589 | |
Total non-current assets | 669,523 | 719,692 | |
Total assets | 7,384,731 | 6,218,513 | |
Current liabilities | |||
Accounts payable | 1,082,600 | 307,415 | |
Advance from customers | 1,539,343 | ||
Other payables | 220,656 | 229,195 | |
Income tax payable | 766,758 | 440,323 | |
Current operating lease liabilities | 274,214 | 257,810 | |
Amount due to related parties | 89,359 | 64,645 | |
Total current liabilities | 2,433,587 | 2,838,731 | |
Non-current liabilities | |||
Lease liabilities, non-current | 195,921 | 257,779 | |
Total non-current liabilities | 195,921 | 257,779 | |
Total liabilities | 2,629,508 | 3,096,510 | |
Stockholders' deficit | |||
Common stock ($0.001 par value, 500,000,000 shares authorized, 307,430,000 shares issued and outstanding at October 31, 2020 and July 31, 2020, respectively)(1) | [1] | 307,430 | 307,430 |
Additional paid-in capital(1) | [1] | (263,298) | (263,298) |
Retained profits (accumulated deficit) | 4,553,051 | 3,058,049 | |
Foreign currency translation reserve | 158,040 | 19,822 | |
Total stockholders' equity (deficit) | 4,755,223 | 3,122,003 | |
Total liabilities and stockholders' deficit | $ 7,384,731 | $ 6,218,513 | |
[1] | Par value of shares, additional paid-in capital and share data have been retroactively restated to give effect to the share exchange effected on August 12, 2020. See Note 1. "Business - History of the Company." |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2020 | Jul. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, share issued | 307,430,000 | 307,430,000 |
Common stock, share outstanding | 307,430,000 | 307,430,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | |||
Income Statement [Abstract] | ||||
Revenues | $ 4,551,255 | |||
Cost of revenues | (1,955,934) | |||
Taxes and surcharges | (39,527) | |||
Gross profit | 2,555,794 | |||
Operating expenses | ||||
Selling and marketing expenses | (141,005) | |||
General and administrative expenses | (326,233) | (4,662) | ||
Research and development expenses | (86,782) | |||
Total operating expenses | (554,020) | (4,662) | ||
Other income, net | 46 | |||
Profit (loss) before tax | 2,001,820 | (4,662) | ||
Income tax | (506,818) | |||
Net profit (loss) | 1,495,002 | (4,662) | ||
Foreign currency translation differences | 138,218 | |||
Total comprehensive profit (loss) | $ 1,633,220 | $ (4,662) | ||
(Loss) earnings per share - basic and diluted | [1] | $ 0.01 | $ 0 | [2] |
Weighted average number of shares - basic and diluted | [1] | 307,430,000 | 307,430,000 | |
[1] | Share and per share data have been retroactively restated to give effect to the share exchange effected on August 12, 2020. See Note 1. Business History of the Company. | |||
[2] | A loss of less than $(0.01) per share. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes In Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Foreign Currency Reserves [Member] | Total |
Balance at Jul. 31, 2019 | $ 307,430 | $ (278,130) | $ (36,650) | $ (7,350) | |
Balance, shares at Jul. 31, 2019 | 307,430,000 | ||||
Net profit (loss) | (4,662) | (4,662) | |||
Balance at Oct. 31, 2019 | $ 307,430 | (278,130) | (41,312) | (12,012) | |
Balance, shares at Oct. 31, 2019 | 307,430,000 | ||||
Balance at Jul. 31, 2020 | $ 307,430 | (263,298) | 3,058,049 | 19,822 | 3,122,003 |
Balance, shares at Jul. 31, 2020 | 307,430,000 | ||||
Foreign currency translation | 138,218 | 138,218 | 138,218 | ||
Net profit (loss) | 1,495,002 | 1,495,002 | |||
Balance at Oct. 31, 2020 | $ 307,430 | $ (263,298) | $ 4,553,051 | $ 158,040 | $ 4,755,223 |
Balance, shares at Oct. 31, 2020 | 307,430,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income(loss) | $ 1,495,002 | $ (4,662) | |
Adjustments for: | |||
Depreciation | 14,856 | $ 28,803 | |
Operating profit before working capital changes: | 1,509,858 | (4,662) | |
(Increase) decrease in: | |||
Accounts receivable | |||
Tax Payable | 303,302 | ||
Other receivables | (2,957,626) | ||
Inventories | 532,432 | ||
Accrued expense and other payables | (5,916) | ||
Accounts payable | 754,832 | ||
Down payment to suppliers | 157,672 | ||
Advance from customers | (1,581,657) | ||
Amount due to a related party | 20,213 | ||
Amount due from related parties | 547,428 | ||
Net cash used in operating activities | (719,462) | (4,662) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of property, plant and equipment | (2,339) | ||
Net cash used in investing activities | (2,339) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Sale of common shares | 2,500 | ||
Net cash provided by financing activities | 2,500 | ||
Effect of exchange rate changes on cash and cash equivalents | 22,667 | ||
Net decrease in cash and cash equivalents | (699,134) | (2,162) | |
Cash and cash equivalents at beginning of period | 864,860 | 2,334 | 2,334 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 165,726 | 172 | $ 864,860 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income tax paid | 200,916 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 470,135 |
Description of The Business and
Description of The Business and Organization | 3 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of the Business and Organization | NOTE 1. DESCRIPTION OF THE BUSINESS AND ORGANIZATION Mu Yan Technology Group Co., Limited, formerly Lepota Inc. (“MYTG” or the “Company”), is a US holding company incorporated in Nevada on December 9, 2013. Our primary business originally was in the import of cosmetics into the Russian Federation and distribution of the products through shops and drugstores. However, since August 12, 2020, we have been engaged in the mobile advertisement backpack business. The Company’s current address is Room 1703B, Zhongzhou Building, No. 3088, Jintian Road, Futian District, Shenzhen City, Guangdong Province, People’s Republic of China 518000. On February 18, 2020, as a result of a private transaction, 5,000,000 shares of our common stock (the “Shares”) were transferred from Rene Lawrence to certain purchasers, including Zhao Lixin who became a 53.8% holder of the voting rights of the Company at the time. The consideration paid for the Shares, which represented 67.3% of the issued and outstanding share capital of the Company on a fully-diluted basis, was $257,160. The source of the cash consideration for the Shares was personal funds of the Purchasers. On April 14, 2020, the Company filed a Certificate of Amendment with the Secretary of State of the State of Nevada to amend the Articles of Incorporation of the Company by increasing the authorized common stock of the Company from 75,000,000 shares to 500,000,000 shares. Mu Yan Technology Holding Co., Ltd (“Mu Yan Samoa”) was incorporated in the Independent State of Samoa on April 2, 2020. Mu Yan Samoa, together with its subsidiaries, is engaged in the mobile advertisement backpack business. Mu Yan (Hong Kong) Technology Co., Limited, (“Mu Yan HK”), a wholly-owned subsidiary of Mu Yan Samoa, was incorporated in Hong Kong on January 10, 2020. On June 1, 2020, Mu Yan Samoa entered into an equity transfer agreement with the shareholder of Mu Yan HK, under which Mu Yan Samoa agreed to pay total consideration of HKD 1,000 (approximately $128.21) in cash in exchange for a 100% ownership interest in Mu Yan HK. Mu Yan (Shenzhen) Media Technology Co., Ltd. (“Mu Yan WFOE”), a wholly-owned subsidiary of Mu Yan HK, was incorporated in the PRC on June 10, 2020. Mu Yan (Shenzhen) Digital Technology Co., Ltd. (“Mu Yan Shenzhen”) was incorporated in the PRC on September 30, 2019 and became a wholly-owned subsidiary of Mu Yan WFOE on July 1, 2020. Mu Yan Shenzhen sells its mobile advertisement backpacks to consumers in the PRC and worldwide and operates primarily out of the PRC. Mu Yan Shenzhen was controlled by the same owner immediately prior to its acquisition by Mu Yan HK. As these transactions are between entities under common control, the Company has reported the results of operations for the periods in a manner similar to a pooling of interests and has consolidated financial results since the initial date in which the above companies were under common control. Assets and liabilities were combined on their carrying values and no recognition of goodwill was made. On August 12, 2020, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”), with Mu Yan Samoa, and shareholders who together own shares constituting 100% of the issued and outstanding shares of Mu Yan Samoa and who are listed in Annex I to the Exchange Agreement (the “Sellers”). Pursuant to the terms of the Exchange Agreement, the Sellers transferred to the Company all of their shares of Mu Yan Samoa in exchange for the issuance of 300,000,000 shares (the “Shares”) of the Company’s common stock (representing approximately 98% of the Company’s outstanding common stock upon issuance) (the “Acquisition”). The Acquisition is accounted for as a reverse merger because on a post-merger basis, the former shareholders of Mu Yan Samoa held a majority of our outstanding ordinary shares on a voting and fully diluted basis. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements include the balances and results of operations of the Company. The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying condensed consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Basis of Consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities over which the Company has control. Control exists when the Company has the power over the entity, exposure or rights to variable returns from involvement in the entity and the ability to use power over the entity to affect returns through its power over the entity. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the condensed consolidated financial statements from the date that control commences until the date that control ceases. Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad and rates and methods of taxation. Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date, revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the period are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized are as follows: As of and for the three months ended As of and for the three months ended Period-end CNY¥ : US$1 exchange rate 6.72 7.05 Period-average CNY¥ : US$1 exchange rate 6.80 7.07 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date and revenue and expenses in the condensed consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of property, plant and equipment, allowance for doubtful accounts, etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. Fair Value Measurement Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The statement clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. This ASC establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). At October 31, 2020, the Company has no financial assets or liabilities subject to recurring fair value measurements. The Company’s financial instruments include cash, accounts receivable, advances to suppliers, other receivables, held for sale assets, accounts payable, other payables, taxes payable and related party receivables or payables. Management estimates that the carrying amounts of financial instruments approximate their fair values due to their short-term nature. The fair value of amounts with related parties is not practicable to estimate due to the related party nature of the underlying transactions. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at the bank as of October 31, 2020 and July 31, 2020. The RMB is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange RMB for foreign currencies through banks that are authorized to conduct foreign exchange business. Accounts Receivable Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company extends credit to its customers in the normal course of business and generally does not require collateral. The Company’s credit terms are dependent upon the segment, and the customer. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, The Company does not record revenue until the uncertainty is removed. Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable, and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No allowance for doubtful accounts was made as of October 31, 2020 and July 31, 2020. Inventories Inventories consist of raw materials and finished goods and are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. The Company made no allowance for obsolete finished goods for the three months ended October 31, 2020 and the year ended July 31, 2020. Held for sale assets Held for sale assets are stated at the lower of their cost or fair value less cost to sell. A gain is recognized for any subsequent increase in fair value less cost to sell, but recognized gains may not exceed the cumulative losses previously recognized. Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of the property, plant and equipment are as follows: Motor vehicles 4 years Office equipment 3 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to the statement of income as incurred, whereas significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of property, plant and equipment, such as an evidence of obsolescence or physical damage of an asset or significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of property, plant and equipment in the statement of income where the carrying amount of the asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the three months ended October 31, 2020 and the year ended July 31, 2020. Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate that represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. Revenue recognition Recognition of revenue Revenue is generated through the sale of goods. Revenue is recognized when a customer obtains control of promised goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligations when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. Contract liabilities A contract liability is the obligation to transfer goods to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). The Company’s contract liabilities comprise advances from customers, which are recognized as revenue when the Company performs under the contract. The balances of advances from customers as of October 31, 2020 and July 31, 2020 are $nil and $1,539,343 respectively. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Research and development expenses Research and development expenses include payroll, employee benefits and other operating expenses associated with research and platform development. To date, expenditures incurred between when the application has reached the development stage and when it is substantially complete and ready for its intended use have been inconsequential and, as a result, the Company did not capitalize any qualifying development costs in the accompanying condensed consolidated financial statements. Earnings per share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share,” which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retrospectively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive shares as of October 31, 2020. Share capital Incremental costs directly attributable to the issue of shares are recognized as a deduction from equity. Related party balances and transactions A related party is generally defined as: (i) any person that holds the Company’s securities, including such person’s immediate family, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the consolidated financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Income taxes The Company accounts for income taxes using the asset and liability method prescribed by ASC 740 “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Company does not have any material unrecognized tax benefits. The Company is governed by the Income Tax Laws of the PRC. The PRC federal statutory tax rate is 25%. The Company files income tax returns with the relevant government authorities in the PRC. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the three months ended October 31, 2020 and the three months ended October 31, 2019. The Company’s effective tax rate differs from the PRC federal statutory rate primarily due to non-deductible expenses, temporary differences and preferential tax treatment. Recently issued and adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company leased an office in Shenzhen, PRC, under an operating lease that terminates in June 2022, hence as of October 31, 2020, the Company adopted this standard, resulting in the recognition of right-of-use assets of $470,135 and operating lease liabilities of $470,135. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements.” This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. |
Other Receivables
Other Receivables | 3 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
Other Receivables | NOTE 3. OTHER RECEIVABLES Other receivables consisted of the following: October 31, 2020 July 31, 2020 Rental deposit $ 51,877 $ 49,934 Pending input VAT $ - $ 17,378 Prepaid legal service fee $ 52,500 $ - Amount due from third parties $ 2,929,888 $ - Others $ 29,384 $ 25,755 Total $ 3,063,649 $ 93,067 The Company leases an office and paid an amount equal to two months’ rent as a security deposit. Between August 20, 2020 and November 10, 2020, the Company’s bank account was subject to restricted use by the bank. The amount due from third parties relates to collections of sales proceeds for said period by third parties on behalf of the Company. On November 10, 2020, the restrictions on the bank account were removed. The Company expects to receive the full amount owed to it by these third parties by the end of December 2020. |
Inventories
Inventories | 3 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4. INVENTORIES Inventories consist of the following: October 31, 2020 July 31, 2020 Raw materials $ 292,295 $ 520,972 Finished goods $ 428,910 $ 691,409 Total inventories $ 721,205 $ 1,212,381 There is no inventory allowance for the three months ended October 31, 2020 and the year ended July 31, 2020. |
Held For Sale Assets
Held For Sale Assets | 3 Months Ended |
Oct. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Held For Sale Assets | NOTE 5. HELD FOR SALE ASSETS Held for sale assets relate to IT servers acquired during the year ended July 31, 2020. Management plans to sell these IT servers in the next 6 months. |
Down Payments to Suppliers
Down Payments to Suppliers | 3 Months Ended |
Oct. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Down Payments to Suppliers | NOTE 6. DOWN PAYMENTS TO SUPPLIERS The Company has made advances to third-party suppliers. These advances are down payments according to the purchase agreements made to expedite the delivery and preferential prices for the materials and the parts for the goods that the Company sells. |
Property Plant and Equipment
Property Plant and Equipment | 3 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 7. PROPERTY, PLANT AND EQUIPMENT October 31, 2020 July 31, 2020 Motor vehicles $ 212,617 $ 204,654 Office equipment $ 31,716 $ 28,252 Less: accumulated depreciation $ (44,945 ) $ (28,803 ) Total $ 199,388 $ 204,103 During the three months ended October 31, 2020, the Company acquired office equipment consisting of one notebook computer, costing $428, and five cell phones, costing an aggregate of $1,937, for a total cost of $2,365. Depreciation expense for the three months ended October 31, 2020 and the year ended July 31, 2020 was $44,945 and $28,803, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. INCOME TAXES Enterprise income tax (“EIT”) The Company was incorporated under the laws of the State of Nevada and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as the Company had no United States taxable income for the three months ended October 31, 2020 and the year ended July 31, 2020. The Company operates in the PRC and files tax returns in PRC jurisdictions. The Company’s subsidiary formed in the Independent State of Samoa is not subject to tax on its income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no withholding tax is imposed. The Company’s subsidiary formed in Hong Kong is subject to a profits tax rate of 16.5% for income generated and operation in the special administrative region. The Company operates in the PRC and files tax returns in PRC jurisdictions. Income generated and operations in the PRC are subject to a tax rate of 25%. The full realization of the tax benefit associated with a carry forward depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The reconciliation of income taxes computed at the PRC federal statutory tax rate applicable in the PRC, to income tax expenses are as follows: For the three months For the year PRC statutory tax rate 25 % 25 % Expenses not deductible 0.1 % 0.0 % Valuation allowance 0.2 % 0.2 % Income tax expense 25.3 % 25.2 % For the three months For the year PRC statutory tax rate 25 % 25 % Computed expected (expenses)/benefits $ 500,455 $ 1,034,709 Expenses not deductible $ 2,600 $ 2,833 Valuation allowance $ 3,763 $ 6,596 Income tax expense $ 506,818 $ 1,044,138 Value added tax (“VAT”) Pursuant to the Provisional Regulations on Value-Added Tax of the PRC and its implementation regulations, unless otherwise stipulated by relevant laws and regulations, any entity or individual engaged in the sales of goods, provision of processing, repairs and replacement services and importation of goods into China is generally required to pay a value-added tax, or VAT, for revenues generated from sales of products, while qualified input VAT paid on taxable purchases can be offset against such output VAT. According to the Announcement on Relevant Policies for Deepening Value-added Tax Reform jointly promulgated by the Chinese Ministry of Finance, the State Administration of Taxation and the General Administration of Customs, which became effective on April 1, 2019, the taxable goods previously subject to VAT rates of 16% and 10%, respectively, become subject to lower VAT rates of 13% and 9%, respectively, starting from April 1, 2019. Our sales of goods are subject to VAT rates of 13%. |
Related Parties Transactions
Related Parties Transactions | 3 Months Ended |
Oct. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties Transactions | NOTE 9. RELATED PARTIES TRANSACTIONS The Company had the following balances with related parties: (a) Amount due from related parties Relationship For the three months ended For the year Hang Zhou Huo Bao Bao AD and Media Co. Ltd. Common shareholder of Winning Match Int’l Co., Ltd which is one of the shareholders of Mu Yan Samoa $ 133,865 $ 214,752 Bang Bi Tuo (Shen Zhen) Technology Co., LTD. Mr Zhao Lixin, CEO of this entity $ 446,216 $ 859,008 Wang Zhen He is shareholder $ 1,487 $ - The balances with related parties are unsecured, non-interest bearing and repayable on demand. (b) Amount due to a related party For the three months For the year Wang Zhen He is one of the shareholders $ - $ 64,645 Zhao Lixin He is CEO $ 89,359 $ - The balance with related party is unsecured, non-interest bearing and repayable on demand. (c) Transactions Trade in nature For the three months For the year Purchase products from Hang Zhou Huo Bao Bao AD and Media Co. Ltd. $ - $ 569,058 Service provided by Hang Zhou Huo Bao Bao AD and Media Co. Ltd. $ 80,887 $ - Cash advance to related parties Bang Bi Tuo (Shen Zhen) Technology Co., Ltd. $ - $ 859,008 Hang Zhou Huo Bao Bao AD and Media Co. Ltd. $ - $ 214,752 Wang Zhen $ 113,490 $ - Repayment from related parties Bang Bi Tuo (Shen Zhen) Technology Co., Ltd. $ 412,792 $ - Wang Zhen $ 112,002 $ - Cash advance from related parties Wang Zhen $ - $ 797,856 Zhao Lixin $ 90,251 $ - Repayment to related parties Wang Zhen $ 64,242 $ 733,614 Zhao Lixin $ 892 $ - |
Reserves
Reserves | 3 Months Ended |
Oct. 31, 2020 | |
Extractive Industries [Abstract] | |
Reserves | NOTE 10. RESERVES Statutory reserve In accordance with the relevant laws and regulations of the PRC, the company established in the PRC is required to transfer 10% of its annual profit after taxation prepared in accordance with the accounting regulations of the PRC to the statutory reserve until the reserve balance reaches 50% of the company’s paid-up capital. Such reserves may be used to offset accumulated losses or increase the registered capital of the company, subject to the approval from the PRC authorities, and are not available for dividend distribution to the shareholders. There is no such reserve provided for the three months ended October 31, 2020 and the year ended July 31, 2020. Currency translation reserve The currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s functional currency. |
Leases
Leases | 3 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 11. LEASES In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Effective July 1, 2020, the Company adopted this standard, resulting in the recognition of right-of-use assets of $470,135 and operating lease liabilities of $470,135. The adoption of the new lease guidance did not have a material impact on the Company’s results of operations or liquidity, but resulted in the recognition of operating lease liabilities and operating lease right-of-use assets on its balance sheets. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company has a lease for the office in Shenzhen, PRC, under an operating lease expiring in June 2022, which is classified as an operating lease. There are no residual value guarantees and no restrictions or covenants imposed by the lease. Rent expense for the three months ended October 31, 2020 and the three months ended October 31, 2019 were $70,153 and $nil, respectively. Cash paid for the operating lease was included in the operating cash flows. There are no residual value guarantees and no restrictions or covenants imposed by the lease. As of October 31, 2020, the Company has $470,135 of right-of-use assets, $274,214 in current operating lease liabilities and $195,921 in non-current operating lease liabilities. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: October 31,2020 Within 1 year $ 290,693 After 1 year but within 5 years $ 199,427 Total lease payments $ 490,120 Less: imputed interest $ (19,985 ) Total lease obligations $ 470,135 Less: current obligations $ (274,214 ) Long-term lease obligations $ 195,921 Other information: For the three months ended October 31, 2020 October 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease $ 71,618 $ - Right-of-use assets obtained in exchange for operating lease liabilities $ 470,135 $ - Remaining lease term for operating lease (years) 2 - Weighted average discount rate for operating lease 4.75 % - |
Subsequent Events
Subsequent Events | 3 Months Ended |
Oct. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12. SUBSEQUENT EVENTS No subsequent events. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the balances and results of operations of the Company. The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying condensed consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. |
Basis of Consolidation | Basis of Consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities over which the Company has control. Control exists when the Company has the power over the entity, exposure or rights to variable returns from involvement in the entity and the ability to use power over the entity to affect returns through its power over the entity. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the condensed consolidated financial statements from the date that control commences until the date that control ceases. |
Economic and Political Risks | Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad and rates and methods of taxation. |
Foreign Currency Translation | Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date, revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the period are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized are as follows: As of and for the three months ended As of and for the three months ended Period-end CNY¥ : US$1 exchange rate 6.72 7.05 Period-average CNY¥ : US$1 exchange rate 6.80 7.07 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date and revenue and expenses in the condensed consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of property, plant and equipment, allowance for doubtful accounts, etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. |
Fair Value Measurement | Fair Value Measurement Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The statement clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. This ASC establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). At October 31, 2020, the Company has no financial assets or liabilities subject to recurring fair value measurements. The Company’s financial instruments include cash, accounts receivable, advances to suppliers, other receivables, held for sale assets, accounts payable, other payables, taxes payable and related party receivables or payables. Management estimates that the carrying amounts of financial instruments approximate their fair values due to their short-term nature. The fair value of amounts with related parties is not practicable to estimate due to the related party nature of the underlying transactions. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at the bank as of October 31, 2020 and July 31, 2020. The RMB is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange RMB for foreign currencies through banks that are authorized to conduct foreign exchange business. |
Accounts Receivable | Accounts Receivable Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company extends credit to its customers in the normal course of business and generally does not require collateral. The Company’s credit terms are dependent upon the segment, and the customer. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, The Company does not record revenue until the uncertainty is removed. Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable, and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No allowance for doubtful accounts was made as of October 31, 2020 and July 31, 2020. |
Inventories | Inventories Inventories consist of raw materials and finished goods and are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. The Company made no allowance for obsolete finished goods for the three months ended October 31, 2020 and the year ended July 31, 2020. |
Held for Sale Assets | Held for sale assets Held for sale assets are stated at the lower of their cost or fair value less cost to sell. A gain is recognized for any subsequent increase in fair value less cost to sell, but recognized gains may not exceed the cumulative losses previously recognized. |
Property, Plant and Equipment | Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of the property, plant and equipment are as follows: Motor vehicles 4 years Office equipment 3 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to the statement of income as incurred, whereas significant renewals and betterments are capitalized. |
Impairment of Long-Lived Assets | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of property, plant and equipment, such as an evidence of obsolescence or physical damage of an asset or significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of property, plant and equipment in the statement of income where the carrying amount of the asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the three months ended October 31, 2020 and the year ended July 31, 2020. |
Operating Leases | Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate that represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. |
Revenue Recognition | Revenue recognition Recognition of revenue Revenue is generated through the sale of goods. Revenue is recognized when a customer obtains control of promised goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligations when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. Contract liabilities A contract liability is the obligation to transfer goods to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). The Company’s contract liabilities comprise advances from customers, which are recognized as revenue when the Company performs under the contract. The balances of advances from customers as of October 31, 2020 and July 31, 2020 are $nil and $1,539,343 respectively. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. |
Research and Development Expenses | Research and development expenses Research and development expenses include payroll, employee benefits and other operating expenses associated with research and platform development. To date, expenditures incurred between when the application has reached the development stage and when it is substantially complete and ready for its intended use have been inconsequential and, as a result, the Company did not capitalize any qualifying development costs in the accompanying condensed consolidated financial statements. |
Earnings Per Share | Earnings per share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share,” which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retrospectively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive shares as of October 31, 2020. |
Share Capital | Share capital Incremental costs directly attributable to the issue of shares are recognized as a deduction from equity. |
Related Party Balances and Transactions | Related party balances and transactions A related party is generally defined as: (i) any person that holds the Company’s securities, including such person’s immediate family, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the consolidated financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. |
Income Taxes | Income taxes The Company accounts for income taxes using the asset and liability method prescribed by ASC 740 “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Company does not have any material unrecognized tax benefits. The Company is governed by the Income Tax Laws of the PRC. The PRC federal statutory tax rate is 25%. The Company files income tax returns with the relevant government authorities in the PRC. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the three months ended October 31, 2020 and the three months ended October 31, 2019. The Company’s effective tax rate differs from the PRC federal statutory rate primarily due to non-deductible expenses, temporary differences and preferential tax treatment. |
Recently Issued and Adopted Accounting Pronouncements | Recently issued and adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company leased an office in Shenzhen, PRC, under an operating lease that terminates in June 2022, hence as of October 31, 2020, the Company adopted this standard, resulting in the recognition of right-of-use assets of $470,135 and operating lease liabilities of $470,135. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements.” This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Foreign Currency Translation | Transactions in currencies other than the functional currencies during the period are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized are as follows: As of and for the three months ended As of and for the three months ended Period-end CNY¥ : US$1 exchange rate 6.72 7.05 Period-average CNY¥ : US$1 exchange rate 6.80 7.07 |
Schedule of Estimated Useful Lives Property Plant and Equipment | Estimated useful lives of the property, plant and equipment are as follows: Motor vehicles 4 years Office equipment 3 years |
Other Receivables (Tables)
Other Receivables (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
Summary of Other Receivables | Other receivables consisted of the following: October 31, 2020 July 31, 2020 Rental deposit $ 51,877 $ 49,934 Pending input VAT $ - $ 17,378 Prepaid legal service fee $ 52,500 $ - Amount due from third parties $ 2,929,888 $ - Others $ 29,384 $ 25,755 Total $ 3,063,649 $ 93,067 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following: October 31, 2020 July 31, 2020 Raw materials $ 292,295 $ 520,972 Finished goods $ 428,910 $ 691,409 Total inventories $ 721,205 $ 1,212,381 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | October 31, 2020 July 31, 2020 Motor vehicles $ 212,617 $ 204,654 Office equipment $ 31,716 $ 28,252 Less: accumulated depreciation $ (44,945 ) $ (28,803 ) Total $ 199,388 $ 204,103 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Federal Statutory Tax Rate Income Tax Expenses | The reconciliation of income taxes computed at the PRC federal statutory tax rate applicable in the PRC, to income tax expenses are as follows: For the three months For the year PRC statutory tax rate 25 % 25 % Expenses not deductible 0.1 % 0.0 % Valuation allowance 0.2 % 0.2 % Income tax expense 25.3 % 25.2 % For the three months For the year PRC statutory tax rate 25 % 25 % Computed expected (expenses)/benefits $ 500,455 $ 1,034,709 Expenses not deductible $ 2,600 $ 2,833 Valuation allowance $ 3,763 $ 6,596 Income tax expense $ 506,818 $ 1,044,138 |
Related Parties Transactions (T
Related Parties Transactions (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Amount Due from Related Parties | The Company had the following balances with related parties: (a) Amount due from related parties Relationship For the three months ended For the year Hang Zhou Huo Bao Bao AD and Media Co. Ltd. Common shareholder of Winning Match Int’l Co., Ltd which is one of the shareholders of Mu Yan Samoa $ 133,865 $ 214,752 Bang Bi Tuo (Shen Zhen) Technology Co., LTD. Mr Zhao Lixin, CEO of this entity $ 446,216 $ 859,008 Wang Zhen He is shareholder $ 1,487 $ - |
Schedule of Amount Due to a Related Party | The balances with related parties are unsecured, non-interest bearing and repayable on demand. (b) Amount due to a related party For the three months For the year Wang Zhen He is one of the shareholders $ - $ 64,645 Zhao Lixin He is CEO $ 89,359 $ - |
Schedule of Related Parties Transactions | The balance with related party is unsecured, non-interest bearing and repayable on demand. (c) Transactions Trade in nature For the three months For the year Purchase products from Hang Zhou Huo Bao Bao AD and Media Co. Ltd. $ - $ 569,058 Service provided by Hang Zhou Huo Bao Bao AD and Media Co. Ltd. $ 80,887 $ - Cash advance to related parties Bang Bi Tuo (Shen Zhen) Technology Co., Ltd. $ - $ 859,008 Hang Zhou Huo Bao Bao AD and Media Co. Ltd. $ - $ 214,752 Wang Zhen $ 113,490 $ - Repayment from related parties Bang Bi Tuo (Shen Zhen) Technology Co., Ltd. $ 412,792 $ - Wang Zhen $ 112,002 $ - Cash advance from related parties Wang Zhen $ - $ 797,856 Zhao Lixin $ 90,251 $ - Repayment to related parties Wang Zhen $ 64,242 $ 733,614 Zhao Lixin $ 892 $ - |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Schedule of Long Term Non Cancelable Operating Leases | The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: October 31,2020 Within 1 year $ 290,693 After 1 year but within 5 years $ 199,427 Total lease payments $ 490,120 Less: imputed interest $ (19,985 ) Total lease obligations $ 470,135 Less: current obligations $ (274,214 ) Long-term lease obligations $ 195,921 |
Schedule of Measurement of Lease Liabilities | Other information: For the three months ended October 31, 2020 October 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease $ 71,618 $ - Right-of-use assets obtained in exchange for operating lease liabilities $ 470,135 $ - Remaining lease term for operating lease (years) 2 - Weighted average discount rate for operating lease 4.75 % - |
Description of The Business a_2
Description of The Business and Organization (Details Narrative) | Aug. 12, 2020shares | Jun. 02, 2020USD ($) | Feb. 18, 2020USD ($)shares | Oct. 31, 2020USD ($)shares | Jul. 31, 2020shares | Apr. 14, 2020shares | Apr. 13, 2020shares |
Percentage of issued and outstanding share capital | 67.30% | ||||||
Fully-diluted basis | $ | $ 257,160 | ||||||
Increasing common stok authorized | shares | 500,000,000 | 500,000,000 | 500,000,000 | 75,000,000 | |||
Foreign currency translation adjustment | $ | $ 128 | $ 138,218 | |||||
Foreign currency exchange rate | 1 | ||||||
Share Exchange Agreement [Member] | Mu Yan Samoa [Member] | |||||||
Percentage of common stock issued and outstanding | 100.00% | ||||||
Proceeds from issuance of shares | shares | 300,000,000 | ||||||
Acquisition [Member] | Mu Yan Samoa [Member] | |||||||
Percentage of common stock issued and outstanding | 98.00% | ||||||
HKD [Member] | |||||||
Foreign currency translation adjustment | $ | $ 1,000 | ||||||
Rene Lawrence [Member] | Private Transaction [Member] | |||||||
Sale of stock private transaction | shares | 5,000,000 | ||||||
Zhao Lixin [Member] | |||||||
Share holder with voting rights | 53.80% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 02, 2020 | |
Allowance for doubtful accounts | |||||
Allowance for obsolete finished goods | |||||
Advances from customers | $ 1,539,343 | ||||
Potentially dilutive shares | |||||
Federal statutory tax rate | 25.00% | 25.00% | 25.00% | ||
Lease term | 12 months | ||||
Operating lease terminates date | Operating lease that terminates in June 2022 | ||||
Right-of-use assets | $ 470,135 | $ 515,589 | $ 470,135 | ||
Operating lease liabilities | $ 470,135 | $ 470,135 | |||
Maximum [Member] | |||||
Lease term | 12 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Foreign Currency Translation (Details) | Oct. 31, 2020 | Jun. 02, 2020 | Oct. 31, 2019 |
Foreign currency exchange rate | 1 | ||
Period End CNY Transaction US Dollar 1 Exchange Rate | |||
Foreign currency exchange rate | 6.72 | 7.05 | |
Period Average CNY US Dollar 1 Exchange Rate [Member] | |||
Foreign currency exchange rate | 6.80 | 7.07 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives Property Plant and Equipment (Details) | 3 Months Ended |
Oct. 31, 2020 | |
Motor Vehicles [Member] | |
Property and equipment, estimated lives | 4 years |
Office Equipment [Member] | |
Property and equipment, estimated lives | 3 years |
Other Receivables - Summary of
Other Receivables - Summary of Other Receivables (Details) - USD ($) | Oct. 31, 2020 | Jul. 31, 2020 |
Total other receivables | $ 3,063,649 | $ 93,067 |
Rental Deposit Member | ||
Total other receivables | 51,877 | 49,934 |
Pending Input VAT [Member] | ||
Total other receivables | 17,378 | |
Prepaid Legal Service Fee [Member] | ||
Total other receivables | 52,500 | |
Amount Due From Third Parties [Member] | ||
Total other receivables | 2,929,888 | |
Others [Member] | ||
Total other receivables | $ 29,384 | $ 25,755 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) | Oct. 31, 2020 | Jul. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 292,295 | $ 520,972 |
Finished goods | 428,910 | 691,409 |
Total inventories | $ 721,205 | $ 1,212,381 |
Held for Sale Assets (Details N
Held for Sale Assets (Details Narrative) | 3 Months Ended |
Oct. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
IT servers acquired description | Management plans to sell these IT servers in the next 6 months. |
Property Plant and Equipment (D
Property Plant and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | |
Depreciation expense | $ 14,856 | $ 28,803 | |
Office Equipment - One Notebook Computer [Member] | |||
Acquired office equipment | 428 | ||
Office Equipment - Five Cell Phones [Member] | |||
Acquired office equipment | 1,937 | ||
Office Equipment [Member] | |||
Acquired office equipment | $ 2,365 |
Property Plant and Equipment -
Property Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) | Oct. 31, 2020 | Jul. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Motor vehicles | $ 212,617 | $ 204,654 |
Office equipment | 31,716 | 28,252 |
Accumulated depreciation | (44,945) | (28,803) |
Total | $ 199,388 | $ 204,103 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Apr. 02, 2019 | Oct. 31, 2020 | Jul. 31, 2020 |
Income tax rate | 25.30% | 25.20% | |
Sales of goods value added tax | 13.00% | ||
Hong Kong [Member] | |||
Income tax rate | 16.50% | ||
PRC [Member] | |||
Income tax rate | 25.00% | ||
State Administration of Taxation [Member] | |||
Value added tax rate | 16.00% | ||
Lower value added tax rate | 13.00% | ||
General Administration of Customs [Member] | |||
Value added tax rate | 10.00% | ||
Lower value added tax rate | 9.00% |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Statutory Tax Rate Income Tax Expenses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Expenses not deductible | 0.10% | 0.00% | |
Valuation allowance | 0.20% | 0.20% | |
Income tax expense | 25.30% | 25.20% | |
Computed expected (expenses)/benefits | $ 500,455 | $ 1,034,709 | |
Expenses not deductible | 2,600 | 2,833 | |
Valuation allowance | 3,763 | 6,596 | |
Income tax expense | $ 506,818 | $ 1,044,138 |
Related Parties Transactions -
Related Parties Transactions - Schedule of Amount Due from Related Parties (Details) - USD ($) | 3 Months Ended | |
Oct. 31, 2020 | Jul. 31, 2020 | |
Hang Zhou Huo Bao Bao AD and Media Co. Ltd. [Member] | ||
Due from related parties relationship description | Common shareholder of Winning Match Int'l Co., Ltd which is one of the shareholders of Mu Yan Samoa | |
Amount due from related parties | $ 133,865 | $ 214,752 |
Bang Bi Tuo (Shen Zhen) Technology Co., LTD. [Member] | ||
Due from related parties relationship description | Mr Zhao Lixin, CEO of this entity | |
Amount due from related parties | $ 446,216 | 859,008 |
Wang Zhen [Member] | ||
Due from related parties relationship description | He is shareholder | |
Amount due from related parties | $ 1,487 |
Related Parties Transactions _2
Related Parties Transactions - Schedule of Amount Due to a Related Party (Details) - USD ($) | 3 Months Ended | |
Oct. 31, 2020 | Jul. 31, 2020 | |
Amount due to a related party | $ 89,359 | $ 64,645 |
Wang Zhen [Member] | ||
Amount due to a related party description | He is one of the shareholders | |
Amount due to a related party | 64,645 | |
Zhao Lixin [Member] | ||
Amount due to a related party description | He is CEO | |
Amount due to a related party | $ 89,359 |
Related Parties Transactions _3
Related Parties Transactions - Schedule of Related Parties Transactions (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Jul. 31, 2020 | |
Hang Zhou Huo Bao Bao AD and Media Co. Ltd. [Member] | ||
Trade in nature, purchase | $ 569,058 | |
Cash advance to related parties | 214,752 | |
Hang Zhou Huo Bao Bao AD and Media Co. Ltd. [Member] | Service [Member] | ||
Trade in nature, purchase | 80,887 | |
Bang Bi Tuo (Shen Zhen) Technology Co., LTD. [Member] | ||
Cash advance to related parties | 859,008 | |
Repayment from related parties | 412,792 | |
Wang Zhen [Member] | ||
Cash advance to related parties | 113,490 | |
Repayment from related parties | 112,002 | |
Cash advance from related parties | 797,856 | |
Repayment to related parties | 64,242 | 733,614 |
Zhao Lixin [Member] | ||
Cash advance from related parties | 90,251 | |
Repayment to related parties | $ 892 |
Reserves (Details Narrative)
Reserves (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Jul. 31, 2020 | |
Extractive Industries [Abstract] | ||
Statutory reserve description | In accordance with the relevant laws and regulations of the PRC, the company established in the PRC is required to transfer 10% of its annual profit after taxation prepared in accordance with the accounting regulations of the PRC to the statutory reserve until the reserve balance reaches 50% of the company's paid-up capital. | |
Statutory reserve |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | ||||
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | Jul. 02, 2020 | Jul. 31, 2019 | |
Leases [Abstract] | |||||
Right-of-use assets | $ 470,135 | $ 515,589 | $ 470,135 | ||
Operating lease liabilities | $ 470,135 | $ 470,135 | |||
Lease expiration description | Expiring in June 2022 | ||||
Rent expense | $ 70,153 | ||||
Operating lease liabilities current | 274,214 | 257,810 | |||
Operating lease liabilities non-current | $ 195,921 | $ 257,779 |
Leases - Schedule of Long Term
Leases - Schedule of Long Term Non Cancelable Operating Leases (Details) - USD ($) | Oct. 31, 2020 | Jul. 31, 2020 | Jul. 02, 2020 |
Leases [Abstract] | |||
Within 1 year | $ 290,693 | ||
After 1 year but within 5 years | 199,427 | ||
Total lease payments | 490,120 | ||
Less: imputed interest | (19,985) | ||
Total lease obligations | 470,135 | $ 470,135 | |
Less: current obligations | (274,214) | $ (257,810) | |
Long-term lease obligations | $ 195,921 | $ 257,779 |
Leases - Schedule of Measuremen
Leases - Schedule of Measurement of Lease Liabilities (Details) - USD ($) | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease | $ 71,618 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 470,135 | |
Remaining lease term for operating lease (years) | 2 years | |
Weighted average discount rate for operating lease | 4.75% |