Document Entity Information
Document Entity Information | 12 Months Ended |
May 31, 2020 | |
Cover [Abstract] | |
Entity Registrant Name | CXJ GROUP CO., Ltd |
Entity Central Index Key | 0001823635 |
Document Type | S-1 |
Amendment Flag | false |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 31, 2020 | May 31, 2019 |
CURRENT ASSETS | ||
Account receivables | $ 436,620 | |
Deposits paid, prepayments and other receivables | 2,518,698 | |
Inventories | 124,658 | |
Due from a director | 115,868 | |
Due from a shareholder | 51,458 | |
Cash and cash equivalents | 15,588 | |
Total current assets | 3,262,890 | |
NON-CURRENT ASSETS | ||
Operating lease right-of-use assets | 192,741 | |
Intangible assets | 29,646 | |
Total non-current assets | 222,387 | |
TOTAL ASSETS | 3,485,277 | |
CURRENT LIABILITIES | ||
Account payables | 156,955 | |
Accrued expenses and other payables | 3,735,680 | 1,431 |
Amount due to a director | 26,302 | 12,781 |
Operating lease liabilities, net of current portion | 83,044 | |
Total current liabilities | 4,001,981 | 14,212 |
NON-CURRENT LIABILITIES | ||
Operating lease liabilities, non-current portion | 112,759 | |
TOTAL LIABILITIES | 4,114,740 | 14,212 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.001 par value, 490,000,000 and 50,000,000 shares authorized, 101,487,017 and 24,356,062 shares issued and outstanding as of May 31, 2020 and May 31, 2019 respectively | 101,487 | 24,356 |
Additional paid-in capital | 4,343 | |
Accumulated other comprehensive income | 7,215 | |
Accumulated deficit | (738,165) | (42,911) |
TOTAL STOCKHOLDERS' EQUITY | (629,463) | (14,212) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 3,485,277 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | May 31, 2020 | May 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 490,000,000 | 50,000,000 |
Common stock, shares issued | 101,487,017 | 24,356,062 |
Common stock, shares outstanding | 101,487,017 | 24,356,062 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Income Statement [Abstract] | ||
REVENUE - Non-related party | $ 803,840 | |
COST OF REVENUE | (614,967) | |
GROSS PROFIT | 188,873 | |
OTHER INCOME | 7,926 | |
SELLING AND DISTRIBUTION EXPENSES | (529,780) | |
GENERAL AND ADMINISTRATIVE EXPENSES | (348,067) | (31,912) |
LOSS FROM OPERATIONS | (681,048) | (31,912) |
INTEREST INCOME | ||
LOSS BEFORE INCOME TAX | (681,048) | (31,912) |
INCOME TAXES EXPENSE | (1,418) | |
NET LOSS | (682,466) | (31,912) |
Other comprehensive income: | ||
Foreign exchange adjustment gain | 7,215 | |
COMPREHENSIVE LOSS | $ (675,251) | |
Net loss per share - Basic and diluted | $ (0.01) | |
Weighted average number of common shares outstanding - Basic and diluted | 76,426,231 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficits - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Total |
Balance at May. 31, 2018 | $ 6,656 | $ 4,343 | $ (10,999) | ||
Balance, shares at May. 31, 2018 | 6,656,062 | ||||
Common stock issued | $ 17,700 | 17,700 | |||
Common stock issued, shares | 17,700,000 | ||||
Net Loss | (31,912) | (31,912) | |||
Accumulated other comprehensive income | |||||
Balance at May. 31, 2019 | $ 24,356 | 4,343 | (42,911) | (14,212) | |
Balance, shares at May. 31, 2019 | 24,356,062 | ||||
1 for 200 reverse stock split | $ (24,234) | 24,234 | |||
1 for 200 reverse stock split, shares | (24,233,845) | ||||
Preferred Stock issued and converted to common stock | $ 100,000 | (90,000) | 10,000 | ||
Preferred Stock issued and converted to common stock, shares | 100,000,000 | ||||
Common stock issued | $ 1,365 | 4,093,088 | 4,094,453 | ||
Common stock issued, shares | 1,364,800 | ||||
Acquisition of subsidiary | (4,031,665) | (12,788) | (4,044,453) | ||
Net Loss | (682,466) | (682,466) | |||
Accumulated other comprehensive income | 7,215 | 7,215 | |||
Balance at May. 31, 2020 | $ 101,487 | $ 7,215 | $ (738,165) | $ (629,463) | |
Balance, shares at May. 31, 2020 | 101,487,017 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Deficits (Parenthetical) | Jul. 12, 2019 | May 31, 2020 |
Statement of Stockholders' Equity [Abstract] | ||
Reverse stock split | 1 for 200 reverse stock split | 1 for 200 reverse stock split |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
May 31, 2020 | May 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (682,466) | $ (31,912) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Acquisition of subsidiary | 50,000 | |
Conversion of preferred shares to common shares | 10,000 | |
Operating lease expense | 60,129 | |
Changes in operating assets and liabilities: | ||
Accounts receivables | (436,620) | |
Prepayments, deposits and other receivables | (2,518,698) | |
Inventory | (124,658) | |
Due from a director | (119,363) | |
Due from a shareholder | (1,458) | |
Due from a related company | 13,521 | |
Accounts payable | 172,168 | |
Operating lease liabilities | (52,154) | |
Other payables, advanced received and accrued liabilities | 3,719,036 | 1,431 |
Net cash provided by/(used in) operating activities | 89,437 | (30,481) |
CASH FLOWS FROM INVESTING ACTIVITY: | ||
Purchase of intangible assets | (29,646) | |
Net cash used in investing activity | (29,646) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Loan from related party | 3,495 | 17,700 |
(Advances to) directors | (50,000) | 12,781 |
Net cash (used in)/provided by financing activities | (46,505) | 30,481 |
Effect of exchange rate changes on cash and cash equivalents | 2,302 | |
Net change in cash and cash equivalents | 15,588 | |
Cash and cash equivalents, beginning of year | ||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 15,588 |
Company Overview
Company Overview | 12 Months Ended |
May 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview | Note 1. Company Overview CXJ Group Co., Limited (“we”, “us”, the “Company” or “ECXJ”) was originally incorporated in State of Nevada on August 20, 1998 under the name Global II, Inc and underwent several name changes prior to its current name. Until August 2019, the Company was known as Global Entertainment Corp., which was a dormant company. On March 04, 2019, the eight judicial District Court of Nevada appointed Custodian Ventures, LLC as custodian for the Company, proper notice having been given to the officers and directors of Global Entertainment Corporation. There was no opposition. On June 18, 2019, control of the Company was transferred by the entity controlled by Custodian Ventures, LLC to Xinrui Wang, our director, by selling him 10,000,000 shares of Series A Preferred stock and 17,700,000 shares of common stock for a purchase price of $175,000. On June 21, 2019, Lixin Cai was appointed act as the new President, CEO, Secretary and Chairman of the Board of Directors of the Company. On June 21, 2019, Cuiyao Luo was appointed act as the new CFO, Treasurer and Member of the Board of Directors of the Company. On September 30, 2019, the Company appointed three more members to the Board of Directors of the Company, and they are Xinrui Wang, Wenbin Mao and Baiwan Niu. Effective July 9, 2019 we changed our name from Global Entertainment Corp to CXJ Group Co., Limited. On July 12, 2019, the Company effectuated a 1 for 200 reverse stock split, while the authorized shares of common stock and preferred shares totally had been increased to 500,000,000. As a result of the foregoing we changed our trading symbol from GNTP and began trading as ECXJ on August 5, 2019. On October 4, 2019, Xinrui Wang (the “Seller”), entered into a Stock Purchase Agreement to pursuant to which the Seller agreed to sell to Wenbin Mao and Baiwan Niu (the “Purchasers”), totaling 1,500,000 preferred stock of the Company (“Shares”) owned by the Seller, for an amount of $1,500. On October 8, 2019, Xinrui Wang, Wenbin Mao and Baiwan Niu effectuated a 1 for 10 conversion to convert all their preferred stock totaling 10,000,000 to 100,000,000 common shares. As a result of the conversion, there was no preferred stock outstanding of the Company as of October 8, 2019. On May 28, 2020, we consummated the transactions contemplated by the Share Exchange Agreement among the Company, CXJ Investment Group Company Limited, a British Virgin Islands Corporation (“CXJ”) and the shareholder of CXJ, pursuant to which we acquired all the ordinary shares of CXJ in exchange for the issuance to the shareholder of CXJ of an aggregate of 1,364,800 shares of the Company. The shareholder is the selling security holder in this prospectus and are all affiliates. As a result of the transactions contemplated by the Share Exchange, CXJ became a wholly-owned subsidiary of the Company. ECXJ, through its wholly owned subsidiary, CXJ and its subsidiaries and the VIE own and operate an active automobiles products trading and services business in the People’s Republic of China. Our business is supporting our alliance with products and technical services enable them to service consumers in China. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies (a) Basis of presentation and liquidation The accompanying consolidated balance Sheets as of May 31, 2020 and 2019 and the consolidated statements of operations and comprehensive income (loss), shareholders’ equity, and cash flow for the year ended May 31, 2020 and 2019 have been prepared by the Company is in conformity with generally accepted accounting principles in the United States (“US GAAP”). The Company incurred net loss of $682,466, $31,912 during the year ended May 31, 2020 and 2019, respectively. As of May 31, 2020, and 2019, the Company had an accumulated deficit of $738,165 and $42,911, respectively. Although it was loss in these two years, the Company generated/(used in) net cash inflow from operations of $89,437 and ($30,481) during the years ended May 31, 2020 and 2019, respectively. As of May 31, 2020, and 2019, the Company had cash and cash equivalents of $15,588 and $nil, the current liability of $4,001,981 and $14,212. The Company’s China subsidiaries and VIE are subject to preapproval from the State Administration of Foreign Exchange (“SAFE”) for non-domestic financing. Additionally, the amount of cash available for transfer from the China subsidiaries and the VIE for use by the Company’s non-China subsidiaries is also limited both by the liquidity needs of the subsidiaries in China and the restriction on foreign currency exchange by Chinese-government mandated limitations including currency exchange controls on certain transfers of funds outside of China. The company currently is seeking to restructure the terms of our liabilities by raising funds to pay off liabilities. Our ability to continue as a going concern is depend upon obtaining the necessary financing or negotiating the terms of the existing borrowing to meet our current and future liquidity need. (b) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIE have been eliminated upon consolidation. To comply with PRC laws and regulations, the Company provides substantially trading of exhaust cleaner and brand name management service in China via its VIE, which hold critical operating licenses that enable the Company to do business in China. Substantially all of the Company’s revenues, costs and net income (loss) in China are directly or indirectly generated through these VIE. The Company has signed various agreements with its VIE and legal shareholders of the VIE to allow the transfer of economic benefits from the VIE to the Company and to direct the activities of the VIE. The Company believes that the contractual arrangements among its subsidiaries, the VIE and its shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIE and its subsidiary in the consolidated financial statements. The Company’s ability to control its VIE also depends on the authorization by the shareholders of the VIE to exercise voting rights on all matters requiring shareholders’ approval in the VIE. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIE were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate its VIE as a result of the aforementioned risks and uncertainties is remote. The following table sets forth its subsidiaries and the VIE, including their country of incorporation or residence and our ownership interest in such subsidiaries. Please see Note 4”VIE Structure and Arrangement”. Subsidiaries: Date of incorporation Interest % Place of incorporation CXJ Investment Group Company Ltd 2020/2/19 100 % BVI CXJ (HK) Technology Group Company Ltd 2020/3/11 100 % Hong Kong CXJ (SHENZHEN) TECHNOLOGY CO., LTD 2020/5/26 100 % PRC VIE: CXJ TECHNOLOGY (HANGZHOU) CO., LTD 2019/3/28 100 % PRC (c) Use of estimates The accompanying consolidated financial statements have been prepared in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but not limited to economic lives and impairment of long-lived assets, valuation allowance for deferred tax assets, and uncertain tax position. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Foreign currency The functional currency of the Company, CXJ Group Co., Ltd, CXJ Investment Group Company Ltd and CXJ (HK) Technology Group Company Ltd is US Dollar. The VIE determined their functional currency to be Chinese Remibi, or RMB based on the criteria of ASC 830, Foreign Currency Matters. The Company uses USD as its reporting currency. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. The Company also uses the historical exchange rate at the initial transaction date to translate the capital and various reserve items. Translation differences are recorded in accumulated other comprehensive income (loss), a component of shareholders’ deficits. (e) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities of less than three months. (f) Accounts Receivable and allowance for doubtful accounts Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. (g) Inventories, net Inventories, consisting of finished goods, work in process, and raw materials. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. (h) Prepayments Prepayments are mainly consisted of prepaid income tax, rental, prepayments for consulting fee and advances to supplies. (i) Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of software, non-patent technology and land use right. The Company typically amortizes its software and non-patent technology with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful lives. According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. The Company amortizes its land use rights using the straight-line method over the periods the rights are granted. The estimated useful lives are as follow: Non-patent technology 5 years (j) Impairment of long-lived assets other than goodwill The Company evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. For all periods presented, there was no impairment of any of the Company’s long-lived assets. (k) Fair value of financial instruments The Company’s financial instruments include cash and cash equivalents, amount due from/to related parties, merchant deposits, payables to merchants. The carrying values of these financial instruments approximate their fair values due to their short-term maturities. The Company applies ASC 820, Fair Value Measurements and Disclosures, (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. (l) Revenue recognition Effective March 20, 2017, the Company early adopted ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606). Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. Product Revenue We generate revenue primarily from the sales of automobile exhaust cleaners and auto parts directly to members. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or shipped to our customers. Our sales arrangements for automobile exhaust cleaners and auto parts usually require a full prepayment before the delivery of products. We also generate revenue from the sales of auto parts directly to the members, such as a business or individual engaged in auto parts businesses. We recognize revenue at a point in time when products are delivered and customer acceptance is made. For the sales arrangements of auto parts products, we generally require payment upon issuance of invoices. Service Revenue We also generate revenue from brand name authorization fee and brand name management service under separate contracts. Revenue from brand name authorization and management services include service fees for provision of brand name “teenage hero car” to our members, and provision of management service. Revenue from the maintenance service to the members is recognized at a point in time when services are provided. Revenue from the management service to the customer is recognized as the performance obligation is satisfied over time over the contracting period. (m) Sales and Marketing expense Selling and handling costs amounted to $529,780 and $nil for the year ended May 31, 2020 and 2019, respectively. Selling and marketing costs are expensed as incurred and included in selling expenses. (n) General and administrative expenses General and administrative expenses consist primarily of research and development expenses, salary and welfare for general and administrative personnel, rental expenses, entertainment expenses, general office expenses and professional service fees. (o) Operating Leases Prior to the adoption of ASC 842 on January 1, 2019: Leases, mainly leases of factory buildings, offices and employee dormitories, where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are recognized as an expense on a straight-line basis over the lease term. The Company had no finance leases for any of the periods stated herein. Upon and hereafter the adoption of ASC 842 on January 1, 2019: The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. Please refer to Note 2-Recently adopted accounting pronouncements for the disclosures regarding the Company’s method of adoption of ASC 842 and the impacts of adoption on its consolidated balance sheets, results of operations and cash flows. ROU 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. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements; and (ii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs. (p) Value-added taxes Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% from April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverables if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities. (q) Income taxes The Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company recorded 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 rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. British Virgin Island Under the current tax laws of British Virgin Island, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no British Virgin Island withholding tax will be imposed. United States Under the current tax laws of United States, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no United States withholding tax will be imposed. P.R.C China The China Corporate Income Tax Law (“CIT Law”) became effective on January 1, 2008. Under the CIT Law, China’s dual tax system for domestic enterprises and foreign investment enterprises (“FIEs”) was effectively replaced by a unified system. The new law establishes a tax rate of 25% for most enterprises. The Company’s VIE through which the majority of our business in China is applicable to this tax rate The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the year ended May 31, 2020 and 2019, respectively: For the year ended May 31, 2020 2019 PRC statutory rate 25 % 25 % Net operating losses for which no deferred tax assets was recognized (25.0 ) (25.0 ) The Company’s expense is out of limit than that of PRC statutory tax policy allowed 16.5 0.0 Effective income tax rate 16.5 % 0.0 % Income tax expense for the year ended May 31, 2020 and 2019 is as follows: For the year ended May 31, 2020 2019 Current 1,418 - Deferred - - Income tax expense 1,418 - (r) Employee benefit expenses As stipulated by the regulations of the PRC, full-time employees of the Company are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Company is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. (s) Comprehensive income (loss) Comprehensive income (loss) is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Company’s comprehensive income (loss) includes net loss and foreign currency translation adjustment and is presented in the consolidated statements of operations and comprehensive income (loss). (t) Loss per share Basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net loss is allocated between ordinary shares and other participating securities based on their participating rights. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. (u) Segment reporting The Company follows ASC 280, Segment Reporting. The Company’s Chief Executive Officer as the chief operating decision-maker reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business as a single segment. As the Company’s long-lived assets are substantially all located in the PRC and substantially all the Company revenues are derived from within the PRC, no geographical segments are presented. (v) Recent accounting pronouncements The Company is an emerging growth company (“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an EGC can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. However, the Company would not like to take this advantage at current stage. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), as amended, which generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new standard effective January 1, 2019 and elected the package of practical expedients permitted under the transition guidance, which allows to carryforward our historical lease classification, and initial direct costs for any leases that exist prior to adoption of the new standard. The Company will also keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. The Company estimates approximately US$374,341 would be recognized as total right-of-use assets and total lease liabilities on its consolidated balance sheet as of June 1, 2019. Other than additional disclosure, the Company does not expect the new standard to have a material impact on its consolidated financial statements. |
Acquisition
Acquisition | 12 Months Ended |
May 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Note 3. Acquisition On March 28, 2019, Mr. Cai, Lixin (Mr. Cai), the Company’s Chairman of the Board and Chief Executive Officer and Chief Financial Officer, incorporated CXJ Technology (Hangzhou) Co., Ltd (“CXJHZ”) in Hangzhou, China. Mr. Cai in turn incorporated CXJ Investment Group Company Ltd (“CXJ”), CXJ (HK) Technology Group Company Ltd (“CXJHK”), and CXJ (Shenzhen) Technology Co., Ltd (“CXJSZ”) and reorganized these entities with CXJ being a holding entity with the solely shareholder. As a result of the reorganization, CXJ owns 100% interest in CXJHK and CXJHK owns 100% interest in CXJSZ. CXJSZ controls 100% interest in CXJHZ through VIE contractual arrangements as disclosed in Note 4. Such reorganization was completed on May 28, 2020. On June 18, 2019, the Company underwent a change of control as a result of the transfer of 10,000,000 shares of Series A Preferred stock (which voted on a 10 for one basis at the time of the change of control) from Custodian Ventures, LLC and 17,700,000 shares of common stock to Xinrui Wang. On May 28, 2020, we consummated the transactions contemplated by the Share Exchange Agreement among the Company, CXJ Investment Group Company Limited (“CXJ”), a British Virgin Islands Corporation and the shareholder of CXJ, pursuant to which we acquired all the ordinary shares of CXJ in exchange for the issuance to the shareholder of CXJ of an aggregate of 1,364,800 shares of the Company. The shareholder is the selling security holder in this prospectus and are all affiliates. As a result of the transactions contemplated by the Share Exchange, CXJ became a wholly-owned subsidiary of the Company. The Company accounted for above transaction as a reverse acquisition under ASC Subtopic 805-40, based on the fact that the CXJ is an accounting acquirer and the Company is the accounting acquiree. Meanwhile, the CXJ retrospectively consolidates the Company and as if it had been owned by CXJ since May 28, 2020, the date the Company was acquired by Mr. Lixin Cai, in accordance with ASC Subtopic 805-50. |
VIE Structure and Arrangements
VIE Structure and Arrangements | 12 Months Ended |
May 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VIE Structure and Arrangements | Note 4. VIE Structure and Arrangements The Company consolidates VIE in which it holds a variable interest and is the primary beneficiary through contractual agreements. The Company is the primary beneficiary because it has the power to direct activities that most significantly affect their economic performance and have the obligation to absorb the majority of their losses or benefits. The results of operations and financial position of the VIE are included in the Company’s consolidated financial statements. In order to operate its business in PRC and to comply with PRC laws and regulations that prohibit or restrict foreign ownership of companies that provides value-added services, the Company entered into a series of contractual agreements with the VIE: CXJ Technology (Shenzhen) Co., Ltd. (“CXJSZ”). These contractual agreements may not be terminated by the VIE, except with the consent of, or a material breach by us. Currently, the Company is still evaluating the overall operating strategy for business and does not have plan to provide any funding to the VIE. Please refer to Note 7 for associated regulatory risks. The key terms of the VIE Agreements are summarized as follows: (a) Exclusive Consulting and Services Agreement The WFOE has the exclusive right to provide technical service, marketing and management consulting service, financial support service and human resource support services to the VIE, and the VIE is required to take all commercially reasonable efforts to permit and facilitate the provision of the services by WFOE. As compensation for providing the services, WFOE is entitled to receive service fees from the VIE equivalent to the WFOE’s cost plus certain percentage of such costs as calculated on accounting policies generally accepted in the PRC. The WFOE and the VIE agree to periodically review the service fee and make adjustments as deemed appropriate. The term of the Technical Services Agreement is perpetual, and may only be terminated upon written consent of both parties. (b) Equity Pledge Agreement The VIE’s shareholders pledged all of their equity interests in VIE (the “Collateral”) to WFOE, our wholly owned subsidiary in PRC, as security for the performance of the obligations to make all the required technical service fee payments pursuant to the Technical Services Agreement and for performance of the VIEs’ Shareholders’ obligation under the Call Option Agreement. The terms of the Equity Pledge Agreement expire upon satisfaction of all obligations under the Technical Services Agreement and Call Option Agreement. (c) Exclusive Option Agreement The VIEs’ Shareholders granted an exclusive option to WFOE, or its designee, to purchase, at any time and from time to time, to the extent permitted under PRC law, all or any portion of the VIE’s shareholders’ equity in the VIE. The exercise price of the option shall be determined by WFOE at its sole discretion, subject to any restrictions imposed by PRC law. The term of the agreement is until all of the equity interest in the VIE held by the VIEs’. Shareholders are transferred to WFOE, or its designee and may not be terminated by any part to the agreement without consent of the other parties. (d) Power of Attorney The VIE’s shareholders granted WFOE the irrevocable right, for the maximum period permitted by law, all of its voting rights as shareholders of the VIE. The VIE’s shareholders may not transfer any of its equity interest in the VIE to any party other than WFOE. The Power of Attorney agreements may not be terminated except until all of the equity in VIEs has been transferred to WFOE or its designee. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
May 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Note 5 .Shareholders’ equity The Company has 490,000,000 shares of common stock authorized with a par value of $0.001 per share as of May 31, 2020 and 2019. Effective July 9, 2019 we changed our name from Global Entertainment Corp to CXJ Group Co., Limited. On July 12, 2019, the Company effectuated a 1 for 200 reverse stock split, while the authorized shares of common stock and preferred shares totally had been increased to 500,000,000. As a result of the foregoing we changed our trading symbol from GNTP and began trading as ECXJ on August 5, 2019. On October 4, 2019, Xinrui Wang (the “Seller”), entered into a Stock Purchase Agreement to pursuant to which the Seller agreed to sell to Wenbin Mao and Baiwan Niu (the “Purchasers”), totaling 1,500,000 preferred stock of the Company (“Shares”) owned by the Seller, for an amount of $1,500. On October 8, 2019, Xinrui Wang, Wenbin Mao and Baiwan Niu effectuated a 1 for 10 conversion to convert all their preferred stock totaling 10,000,000 to 100,000,000 common shares. As a result of the conversion, there was no preferred stock outstanding of the Company as of October 8, 2019. On May 28, 2020, we consummated the transactions contemplated by the Share Exchange Agreement among the Company, CXJ Investment Group Company Limited, a British Virgin Islands Corporation (“CXJ”) and the shareholder of CXJ, pursuant to which we acquired all the ordinary shares of CXJ in exchange for the issuance to the shareholder of CXJ of an aggregate of 1,364,800 shares of the Company. The shareholder is the selling security holder in this prospectus and are all affiliates. As a result of the transactions contemplated by the Share Exchange, CXJ became a wholly-owned subsidiary of the Company. |
Prepayment, Deposits and Other
Prepayment, Deposits and Other Receivables | 12 Months Ended |
May 31, 2020 | |
Prepayment Deposits And Other Receivables | |
Prepayment, Deposits and Other Receivables | Note 6 . Prepayment, deposits and other receivables Prepaid expenses and other receivables consisted of the following at May 31, 2020 and May 31, 2019: As of May 31, 2020 May 31, 2019 Prepayment 110,382 - Deposit 39,598 - Other receivables 2,368,718 - Total $ 2,518,698 $ - As of May 31, 2020, the balance $39,598 represented the rental deposit and advanced payment to supplier, the balance $110,382 represented an outstanding prepaid expense and prepayment which included social security fee, housing fund, property management and employee receivables, the balance $2,368,718 represented other receivables, which included the employee receivables, VAT receivable and the receivable from other companies. |
Intangible Assets
Intangible Assets | 12 Months Ended |
May 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 7 . Intangible Assets Intangible assets and related accumulated amortization were as follows: As of May 31, 2020 May 31, 2019 Software 29,646 - Less: Accumulated amortization - - Total $ 29,646 $ - For the May ended, 2020, the Company has completed the development of the enterprise resource planning system (ERP) for the partners or clients, the system can be used on both PC/APP. The function can be classified into vehicles management, membership management, inventory management and financial management. The app for clients or partners is also available on WeChat mini program to manage consumers’ request and reservation. No amortization provision for the year ended May 31, 2020. |
Advanced Received, Accrued Expe
Advanced Received, Accrued Expenses and Other Payables | 12 Months Ended |
May 31, 2020 | |
Payables and Accruals [Abstract] | |
Advanced Received, Accrued Expenses and Other Payables | Note 8 . Advanced received, accrued expenses and other payables As of May 31, 2020 May 31, 2019 Accrued expenses 66,934 1,431 Advanced received 2,185,552 - Other payables 1,483,194 - Total $ 3,735,680 $ 1,431 Other payables and accrued include accrued rental expenses, tax and surcharges payable, employee payables and payable to other companies. Advanced received from customers are brand name management fee and goods purchases paid by customers. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
May 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Note 9: Related party transaction (a) Related party list Names of related parties Relationship with the Company New Charles Technology Group Limited Company controlled by the director Lixin Cai Director Cuiyao Luo Director The Company had the following related party balances and transactions as of and for the year ended May 31, 2020 and as of and 2019. All related parties are controlled by either the founder or the directors of the Company and are providing professional services for the Company to facilitate its operation of the Company. These advanced balances are short-term in nature, bearing no interest, and due on demand. Amounts due from related parties As of May 31, 2020 May 31, 2019 Lixin Cai 115,868 - New Charles Technology Group Limited 51,458 - Total $ 167,326 $ - For the years ended May 31, 2020, the amount $115,868 loan to the director “Lixin Cai”, The amount due is unsecured, interest free and has no fixed repayment term. As the reporting date, the amount due from the director is Nil. Amounts due to related parties As of May 31, 2020 May 31, 2019 Cuiyao Luo 26,302 12,781 Total $ 26,302 $ 12,781 For the years ended May 31, 2020 and 2019, Cuoyao Luo advanced $26,302 and $12,781 to the company as working capital and to pay administrative expenses, which is unsecured, interest-free with no fixed payment term, for working capital purpose. |
Lease Right-Of-Use Asset and Le
Lease Right-Of-Use Asset and Lease Liabilities | 12 Months Ended |
May 31, 2020 | |
Leases [Abstract] | |
Lease Right-Of-Use Asset and Lease Liabilities | Note 10. Lease Right-Of-Use Asset and Lease Liabilities The Company officially adopted ASC 842 for the period on and after June 1, 2019 as permitted by ASU 2016-02. ASC 842 originally required all entities to use a “modified retrospective” transition approach that is intended to maximize comparability and be less complex than a full retrospective approach. On July 30, 2018, the FASB issued ASU 2018-11 to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02 of which permits entities may elect not to recast the comparative periods presented when transitioning to ASC 842. As permitted by ASU 2018-11, the Company elect not to recast comparative periods, thusly. As of June 1, 2019, the Company recognized approximately US$247,369, lease liability as well as right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. Lease liabilities are measured at present value of the sum of remaining rental payments as of June 1, 2019, with discounted rate of 3.25% adopted from The People’s Bank Of China’s base lending rate as a reference for discount rate, as this bank is the largest bank and national bank of China. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows. The initial recognition of operating lease right and lease liability as follow: Gross lease payable 259,257 Less: imputed interest (11,888 ) Initial recognition as of June 1, 2019 $ 247,369 As of May 31, 2020, operating lease right of use asset as follow: Initial recognition as of June 1, 2019 247,369 Accumulated amortization (54,628 ) Balance as of May 31, 2020 $ 192,741 As of May 31, 2020, operating lease liability as follow: Initial recognition as of June 1, 2019 247,369 Less: gross repayment (56,390 ) Add: imputed interest 4,824 Balance as of May 31, 2020 $ 195,803 Less: lease liability current portion (83,044 ) Lease liability non-current portion $ 112,759 For the year ended May 31, 2020 and 2019, the amortization of the operating lease right of use asset are $54,628 and $0 respectively. Maturities of operating lease obligation as follow: Year ending May 31, Operating 2020 $ 83,044 2021 89,567 2022 23,192 Total $ 195,803 Other information: Year ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease 57,032 Right-of-use assets obtained in exchange for operating lease liabilities 192,741 Remaining lease term for operating lease (years) 2.25 Weighted average discount rate for operating lease 3.25 % Lease expenses were $60,129 and $0 for the year ended May 31, 2020 and 2019, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
May 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 11: Subsequent event In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the May 31, 2020 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Liquidation | (a) Basis of presentation and liquidation The accompanying consolidated balance Sheets as of May 31, 2020 and 2019 and the consolidated statements of operations and comprehensive income (loss), shareholders’ equity, and cash flow for the year ended May 31, 2020 and 2019 have been prepared by the Company is in conformity with generally accepted accounting principles in the United States (“US GAAP”). The Company incurred net loss of $682,466, $31,912 during the year ended May 31, 2020 and 2019, respectively. As of May 31, 2020, and 2019, the Company had an accumulated deficit of $738,165 and $42,911, respectively. Although it was loss in these two years, the Company generated/(used in) net cash inflow from operations of $89,437 and ($30,481) during the years ended May 31, 2020 and 2019, respectively. As of May 31, 2020, and 2019, the Company had cash and cash equivalents of $15,588 and $nil, the current liability of $4,001,981 and $14,212. The Company’s China subsidiaries and VIE are subject to preapproval from the State Administration of Foreign Exchange (“SAFE”) for non-domestic financing. Additionally, the amount of cash available for transfer from the China subsidiaries and the VIE for use by the Company’s non-China subsidiaries is also limited both by the liquidity needs of the subsidiaries in China and the restriction on foreign currency exchange by Chinese-government mandated limitations including currency exchange controls on certain transfers of funds outside of China. The company currently is seeking to restructure the terms of our liabilities by raising funds to pay off liabilities. Our ability to continue as a going concern is depend upon obtaining the necessary financing or negotiating the terms of the existing borrowing to meet our current and future liquidity need. |
Principles of Consolidation | (b) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIE have been eliminated upon consolidation. To comply with PRC laws and regulations, the Company provides substantially trading of exhaust cleaner and brand name management service in China via its VIE, which hold critical operating licenses that enable the Company to do business in China. Substantially all of the Company’s revenues, costs and net income (loss) in China are directly or indirectly generated through these VIE. The Company has signed various agreements with its VIE and legal shareholders of the VIE to allow the transfer of economic benefits from the VIE to the Company and to direct the activities of the VIE. The Company believes that the contractual arrangements among its subsidiaries, the VIE and its shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIE and its subsidiary in the consolidated financial statements. The Company’s ability to control its VIE also depends on the authorization by the shareholders of the VIE to exercise voting rights on all matters requiring shareholders’ approval in the VIE. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIE were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate its VIE as a result of the aforementioned risks and uncertainties is remote. The following table sets forth its subsidiaries and the VIE, including their country of incorporation or residence and our ownership interest in such subsidiaries. Please see Note 4”VIE Structure and Arrangement”. Subsidiaries: Date of incorporation Interest % Place of incorporation CXJ Investment Group Company Ltd 2020/2/19 100 % BVI CXJ (HK) Technology Group Company Ltd 2020/3/11 100 % Hong Kong CXJ (SHENZHEN) TECHNOLOGY CO., LTD 2020/5/26 100 % PRC VIE: CXJ TECHNOLOGY (HANGZHOU) CO., LTD 2019/3/28 100 % PRC |
Use of Estimates | (c) Use of estimates The accompanying consolidated financial statements have been prepared in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but not limited to economic lives and impairment of long-lived assets, valuation allowance for deferred tax assets, and uncertain tax position. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Foreign Currency | (d) Foreign currency The functional currency of the Company, CXJ Group Co., Ltd, CXJ Investment Group Company Ltd and CXJ (HK) Technology Group Company Ltd is US Dollar. The VIE determined their functional currency to be Chinese Remibi, or RMB based on the criteria of ASC 830, Foreign Currency Matters. The Company uses USD as its reporting currency. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. The Company also uses the historical exchange rate at the initial transaction date to translate the capital and various reserve items. Translation differences are recorded in accumulated other comprehensive income (loss), a component of shareholders’ deficits. |
Cash and Cash Equivalents | (e) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities of less than three months. |
Accounts Receivable and Allowance for Doubtful Accounts | (f) Accounts Receivable and allowance for doubtful accounts Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. |
Inventories, Net | (g) Inventories, net Inventories, consisting of finished goods, work in process, and raw materials. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. |
Prepayments | (h) Prepayments Prepayments are mainly consisted of prepaid income tax, rental, prepayments for consulting fee and advances to supplies. |
Intangible Assets, Net | (i) Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of software, non-patent technology and land use right. The Company typically amortizes its software and non-patent technology with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful lives. According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. The Company amortizes its land use rights using the straight-line method over the periods the rights are granted. The estimated useful lives are as follow: Non-patent technology 5 years |
Impairment of Long-lived Assets Other Than Goodwill | (j) Impairment of long-lived assets other than goodwill The Company evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. For all periods presented, there was no impairment of any of the Company’s long-lived assets. |
Fair Value of Financial Instruments | (k) Fair value of financial instruments The Company’s financial instruments include cash and cash equivalents, amount due from/to related parties, merchant deposits, payables to merchants. The carrying values of these financial instruments approximate their fair values due to their short-term maturities. The Company applies ASC 820, Fair Value Measurements and Disclosures, (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. |
Revenue Recognition | (l) Revenue recognition Effective March 20, 2017, the Company early adopted ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606). Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. Product Revenue We generate revenue primarily from the sales of automobile exhaust cleaners and auto parts directly to members. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or shipped to our customers. Our sales arrangements for automobile exhaust cleaners and auto parts usually require a full prepayment before the delivery of products. We also generate revenue from the sales of auto parts directly to the members, such as a business or individual engaged in auto parts businesses. We recognize revenue at a point in time when products are delivered and customer acceptance is made. For the sales arrangements of auto parts products, we generally require payment upon issuance of invoices. Service Revenue We also generate revenue from brand name authorization fee and brand name management service under separate contracts. Revenue from brand name authorization and management services include service fees for provision of brand name “teenage hero car” to our members, and provision of management service. Revenue from the maintenance service to the members is recognized at a point in time when services are provided. Revenue from the management service to the customer is recognized as the performance obligation is satisfied over time over the contracting period. |
Sales and Marketing Expense | (m) Sales and Marketing expense Selling and handling costs amounted to $529,780 and $nil for the year ended May 31, 2020 and 2019, respectively. Selling and marketing costs are expensed as incurred and included in selling expenses. |
General and Administrative Expenses | (n) General and administrative expenses General and administrative expenses consist primarily of research and development expenses, salary and welfare for general and administrative personnel, rental expenses, entertainment expenses, general office expenses and professional service fees. |
Operating Leases | (o) Operating Leases Prior to the adoption of ASC 842 on January 1, 2019: Leases, mainly leases of factory buildings, offices and employee dormitories, where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are recognized as an expense on a straight-line basis over the lease term. The Company had no finance leases for any of the periods stated herein. Upon and hereafter the adoption of ASC 842 on January 1, 2019: The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. Please refer to Note 2-Recently adopted accounting pronouncements for the disclosures regarding the Company’s method of adoption of ASC 842 and the impacts of adoption on its consolidated balance sheets, results of operations and cash flows. ROU 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. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements; and (ii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs. |
Value-added Taxes | (p) Value-added taxes Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% from April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverables if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities. |
Income Taxes | (q) Income taxes The Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company recorded 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 rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. British Virgin Island Under the current tax laws of British Virgin Island, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no British Virgin Island withholding tax will be imposed. United States Under the current tax laws of United States, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no United States withholding tax will be imposed. P.R.C China The China Corporate Income Tax Law (“CIT Law”) became effective on January 1, 2008. Under the CIT Law, China’s dual tax system for domestic enterprises and foreign investment enterprises (“FIEs”) was effectively replaced by a unified system. The new law establishes a tax rate of 25% for most enterprises. The Company’s VIE through which the majority of our business in China is applicable to this tax rate The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the year ended May 31, 2020 and 2019, respectively: For the year ended May 31, 2020 2019 PRC statutory rate 25 % 25 % Net operating losses for which no deferred tax assets was recognized (25.0 ) (25.0 ) The Company’s expense is out of limit than that of PRC statutory tax policy allowed 16.5 0.0 Effective income tax rate 16.5 % 0.0 % Income tax expense for the year ended May 31, 2020 and 2019 is as follows: For the year ended May 31, 2020 2019 Current 1,418 - Deferred - - Income tax expense 1,418 - |
Employee Benefit Expenses | (r) Employee benefit expenses As stipulated by the regulations of the PRC, full-time employees of the Company are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Company is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. |
Comprehensive Income (loss) | (s) Comprehensive income (loss) Comprehensive income (loss) is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Company’s comprehensive income (loss) includes net loss and foreign currency translation adjustment and is presented in the consolidated statements of operations and comprehensive income (loss). |
Loss Per Share | (t) Loss per share Basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net loss is allocated between ordinary shares and other participating securities based on their participating rights. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. |
Segment Reporting | (u) Segment reporting The Company follows ASC 280, Segment Reporting. The Company’s Chief Executive Officer as the chief operating decision-maker reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business as a single segment. As the Company’s long-lived assets are substantially all located in the PRC and substantially all the Company revenues are derived from within the PRC, no geographical segments are presented. |
Recent Accounting Pronouncements | (v) Recent accounting pronouncements The Company is an emerging growth company (“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an EGC can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. However, the Company would not like to take this advantage at current stage. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), as amended, which generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new standard effective January 1, 2019 and elected the package of practical expedients permitted under the transition guidance, which allows to carryforward our historical lease classification, and initial direct costs for any leases that exist prior to adoption of the new standard. The Company will also keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. The Company estimates approximately US$374,341 would be recognized as total right-of-use assets and total lease liabilities on its consolidated balance sheet as of June 1, 2019. Other than additional disclosure, the Company does not expect the new standard to have a material impact on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Ownership of Outstanding Shares of Its Subsidiaries | The following table sets forth its subsidiaries and the VIE, including their country of incorporation or residence and our ownership interest in such subsidiaries. Please see Note 4”VIE Structure and Arrangement”. Subsidiaries: Date of incorporation Interest % Place of incorporation CXJ Investment Group Company Ltd 2020/2/19 100 % BVI CXJ (HK) Technology Group Company Ltd 2020/3/11 100 % Hong Kong CXJ (SHENZHEN) TECHNOLOGY CO., LTD 2020/5/26 100 % PRC VIE: CXJ TECHNOLOGY (HANGZHOU) CO., LTD 2019/3/28 100 % PRC |
Schedule of Intangible Assets Estimated Useful Lives | The estimated useful lives are as follow: Non-patent technology 5 years |
Schedule of Reconciliation PRC Statutory Rates | The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the year ended May 31, 2020 and 2019, respectively: For the year ended May 31, 2020 2019 PRC statutory rate 25 % 25 % Net operating losses for which no deferred tax assets was recognized (25.0 ) (25.0 ) The Company’s expense is out of limit than that of PRC statutory tax policy allowed 16.5 0.0 Effective income tax rate 16.5 % 0.0 % |
Schedule of Income Tax Expense | Income tax expense for the year ended May 31, 2020 and 2019 is as follows: For the year ended May 31, 2020 2019 Current 1,418 - Deferred - - Income tax expense 1,418 - |
Prepayment, Deposits and Othe_2
Prepayment, Deposits and Other Receivables (Tables) | 12 Months Ended |
May 31, 2020 | |
Prepayment Deposits And Other Receivables | |
Schedule of Prepaid Expenses and Other Receivables | Prepaid expenses and other receivables consisted of the following at May 31, 2020 and May 31, 2019: As of May 31, 2020 May 31, 2019 Prepayment 110,382 - Deposit 39,598 - Other receivables 2,368,718 - Total $ 2,518,698 $ - |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
May 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets and related accumulated amortization were as follows: As of May 31, 2020 May 31, 2019 Software 29,646 - Less: Accumulated amortization - - Total $ 29,646 $ - |
Advanced Received, Accrued Ex_2
Advanced Received, Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
May 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Advanced Received, Accrued Expenses and Other Payables | As of May 31, 2020 May 31, 2019 Accrued expenses 66,934 1,431 Advanced received 2,185,552 - Other payables 1,483,194 - Total $ 3,735,680 $ 1,431 |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 12 Months Ended |
May 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transaction | Amounts due from related parties As of May 31, 2020 May 31, 2019 Lixin Cai 115,868 - New Charles Technology Group Limited 51,458 - Total $ 167,326 $ - Amounts due to related parties As of May 31, 2020 May 31, 2019 Cuiyao Luo 26,302 12,781 Total $ 26,302 $ 12,781 |
Lease Right-Of-Use Asset and _2
Lease Right-Of-Use Asset and Lease Liabilities (Tables) | 12 Months Ended |
May 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Right and Lease Liability | The initial recognition of operating lease right and lease liability as follow: Gross lease payable 259,257 Less: imputed interest (11,888 ) Initial recognition as of June 1, 2019 $ 247,369 As of May 31, 2020, operating lease right of use asset as follow: Initial recognition as of June 1, 2019 247,369 Accumulated amortization (54,628 ) Balance as of May 31, 2020 $ 192,741 As of May 31, 2020, operating lease liability as follow: Initial recognition as of June 1, 2019 247,369 Less: gross repayment (56,390 ) Add: imputed interest 4,824 Balance as of May 31, 2020 $ 195,803 Less: lease liability current portion (83,044 ) Lease liability non-current portion $ 112,759 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease obligation as follow: Year ending May 31, Operating 2020 $ 83,044 2021 89,567 2022 23,192 Total $ 195,803 |
Schedule of Other Information | Other information: Year ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease 57,032 Right-of-use assets obtained in exchange for operating lease liabilities 192,741 Remaining lease term for operating lease (years) 2.25 Weighted average discount rate for operating lease 3.25 % |
Company Overview (Details Narra
Company Overview (Details Narrative) - USD ($) | May 28, 2020 | Oct. 08, 2019 | Oct. 04, 2019 | Jul. 12, 2019 | Jun. 18, 2019 | May 31, 2020 | May 31, 2019 |
Number of shares issued, value | $ 4,094,453 | $ 17,700 | |||||
Reverse stock split | 1 for 200 reverse stock split | 1 for 200 reverse stock split | |||||
Common stock, authorized shares | 490,000,000 | 50,000,000 | |||||
Xinrui Wang [Member] | |||||||
Number of shares issued | 17,700,000 | ||||||
Number of shares issued, value | $ 175,000 | ||||||
Stock Purchase Agreement [Member] | Wenbin Mao and Baiwan Niu [Member] | |||||||
Sale of stock | 1,500,000 | ||||||
Sale of stock, value | $ 1,500 | ||||||
Stock Purchase Agreement [Member] | Xinrui Wang, Wenbin Mao and Baiwan Niu [Member] | |||||||
Conversion description | On October 8, 2019, Xinrui Wang, Wenbin Mao and Baiwan Niu effectuated a 1 for 10 conversion to convert all their preferred stock totaling 10,000,000 to 100,000,000 common shares. As a result of the conversion, there was no preferred stock outstanding of the Company as of October 8, 2019. | ||||||
Share Exchange Agreement [Member] | |||||||
Number of shares issued | 1,364,800 | ||||||
Maximum [Member] | |||||||
Common stock, authorized shares | 500,000,000 | ||||||
Preferred stock, authorized shares | 500,000,000 | ||||||
Maximum [Member] | Stock Purchase Agreement [Member] | Xinrui Wang, Wenbin Mao and Baiwan Niu [Member] | |||||||
Preferred Stock issued and converted to common stock, shares | 100,000,000 | ||||||
Minimum [Member] | Stock Purchase Agreement [Member] | Xinrui Wang, Wenbin Mao and Baiwan Niu [Member] | |||||||
Preferred Stock issued and converted to common stock, shares | 10,000,000 | ||||||
Series A Preferred Stock [Member] | |||||||
Number of shares issued | 10,000,000 | ||||||
Series A Preferred Stock [Member] | Xinrui Wang [Member] | |||||||
Sale of stock | 10,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | May 31, 2020 | May 31, 2019 | Jun. 02, 2019 | |
Net loss | $ (682,466) | $ (31,912) | ||
Accumulated deficit | (738,165) | (42,911) | ||
Net cash inflow (used in) from operations | 89,437 | (30,481) | ||
Cash and cash equivalents | 15,588 | |||
Current liability | 4,001,981 | 14,212 | ||
Selling and handling costs | $ 529,780 | |||
Value-added taxes description | The VAT is based on gross sales price and VAT rates applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% from April 2019. | |||
PRC statutory rate | 25.00% | 25.00% | ||
Lease description | The Company will also keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. | |||
Right-of-use assets | $ 192,741 | |||
Operating lease liability | $ 195,803 | $ 247,369 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Right-of-use assets | $ 374,341 | |||
Operating lease liability | $ 374,341 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Ownership of Outstanding Shares of Its Subsidiaries (Details) | 12 Months Ended | |
May 31, 2020 | Mar. 28, 2019 | |
CXJ Investment Group Company Ltd [Member] | ||
Date of incorporation | Feb. 19, 2020 | |
Interest | 100.00% | |
Place of incorporation | BVI | |
CXJ (HK) Technology Group Company Ltd [Member] | ||
Date of incorporation | Mar. 11, 2020 | |
Interest | 100.00% | 100.00% |
Place of incorporation | Hong Kong | |
CXJ (Shenzhen) Technology Co., Ltd [Member] | ||
Date of incorporation | May 26, 2020 | |
Interest | 100.00% | 100.00% |
Place of incorporation | PRC | |
CXJ TECHNOLOGY (HANGZHOU) CO., LTD [Member] | ||
Date of incorporation | Mar. 28, 2019 | |
Interest | 100.00% | |
Place of incorporation | PRC |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Intangible Assets Estimated Useful Lives (Details) | 12 Months Ended |
May 31, 2020 | |
Non-Patent Technology [Member] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Reconciliation PRC Statutory Rates (Details) | 12 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Accounting Policies [Abstract] | ||
PRC statutory rate | 25.00% | 25.00% |
Net operating losses for which no deferred tax assets was recognized | (25.00%) | (25.00%) |
The Company's expense is out of limit than that of PRC statutory tax policy allowed | 16.50% | 0.00% |
Effective income tax rate | 16.50% | 0.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Accounting Policies [Abstract] | ||
Current | $ 1,418 | |
Deferred | ||
Income tax expense | $ 1,418 |
Acquisition (Details Narrative)
Acquisition (Details Narrative) - shares | May 28, 2020 | Jun. 18, 2019 | May 31, 2020 | May 31, 2019 | Mar. 28, 2019 |
Share Exchange Agreement [Member] | |||||
Number of stock issued | 1,364,800 | ||||
Xinrui Wang [Member] | |||||
Number of stock issued | 17,700,000 | ||||
Common Stock [Member] | |||||
Number of stock issued | 1,364,800 | 17,700,000 | |||
Common Stock [Member] | Xinrui Wang [Member] | |||||
Number of stock issued | 17,700,000 | ||||
Series A Preferred Stock [Member] | |||||
Number of stock issued | 10,000,000 | ||||
CXJ Investment Group Company Ltd [Member] | |||||
Ownership percentage | 100.00% | ||||
CXJ (HK) Technology Group Company Ltd [Member] | |||||
Ownership percentage | 100.00% | 100.00% | |||
CXJ (Shenzhen) Technology Co., Ltd [Member] | |||||
Ownership percentage | 100.00% | 100.00% |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) | May 28, 2020 | Oct. 08, 2019 | Oct. 04, 2019 | Jul. 12, 2019 | May 31, 2020 | May 31, 2019 |
Common stock, authorized | 490,000,000 | 50,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Reverse stock split | 1 for 200 reverse stock split | 1 for 200 reverse stock split | ||||
Stock Purchase Agreement [Member] | Wenbin Mao and Baiwan Niu [Member] | ||||||
Sale of stock | 1,500,000 | |||||
Sale of stock, value | $ 1,500 | |||||
Stock Purchase Agreement [Member] | Xinrui Wang, Wenbin Mao and Baiwan Niu [Member] | ||||||
Conversion description | On October 8, 2019, Xinrui Wang, Wenbin Mao and Baiwan Niu effectuated a 1 for 10 conversion to convert all their preferred stock totaling 10,000,000 to 100,000,000 common shares. As a result of the conversion, there was no preferred stock outstanding of the Company as of October 8, 2019. | |||||
Share Exchange Agreement [Member] | ||||||
Number of shares issued | 1,364,800 | |||||
Maximum [Member] | ||||||
Common stock, authorized | 500,000,000 | |||||
Preferred stock, authorized shares | 500,000,000 | |||||
Maximum [Member] | Stock Purchase Agreement [Member] | Xinrui Wang, Wenbin Mao and Baiwan Niu [Member] | ||||||
Preferred Stock issued and converted to common stock, shares | 100,000,000 | |||||
Minimum [Member] | Stock Purchase Agreement [Member] | Xinrui Wang, Wenbin Mao and Baiwan Niu [Member] | ||||||
Preferred Stock issued and converted to common stock, shares | 10,000,000 |
Prepayment, Deposits and Othe_3
Prepayment, Deposits and Other Receivables (Details Narrative) - USD ($) | May 31, 2020 | May 31, 2019 |
Prepayment Deposits And Other Receivables | ||
Rental deposit and advanced payment to supplier | $ 39,598 | |
Outstanding prepaid expense and prepayment | 110,382 | |
Other receivables | $ 2,368,718 |
Prepayment, Deposits and Othe_4
Prepayment, Deposits and Other Receivables - Schedule of Prepaid Expenses and Other Receivables (Details) - USD ($) | May 31, 2020 | May 31, 2019 |
Prepayment Deposits And Other Receivables | ||
Prepayment | $ 110,382 | |
Deposit | 39,598 | |
Other receivables | 2,368,718 | |
Total | $ 2,518,698 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | May 31, 2020 | May 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Software | $ 29,646 | |
Less: Accumulated amortization | ||
Total | $ 29,646 |
Advanced Received, Accrued Ex_3
Advanced Received, Accrued Expenses and Other Payables - Schedule of Advanced Received, Accrued Expenses and Other Payables (Details) - USD ($) | May 31, 2020 | May 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 66,934 | $ 1,431 |
Advanced received | 2,185,552 | |
Other payables | 1,483,194 | |
Total | $ 3,735,680 | $ 1,431 |
Related Party Transaction (Deta
Related Party Transaction (Details Narrative) - USD ($) | May 31, 2020 | May 31, 2019 |
Amounts due from related parties | $ 167,326 | |
Amounts due to related parties | 26,302 | 12,781 |
Lixin Cai [Member] | ||
Amounts due from related parties | 115,868 | |
Cuiyao Luo [Member] | ||
Amounts due to related parties | $ 26,302 | $ 12,781 |
Related Party Transaction - Sch
Related Party Transaction - Schedule of Related Party Transaction (Details) - USD ($) | May 31, 2020 | May 31, 2019 |
Amounts due from related parties | $ 167,326 | |
Amounts due to related parties | 26,302 | 12,781 |
New Charles Technology Group Limited [Member] | ||
Amounts due from related parties | 51,458 | |
Lixin Cai [Member] | ||
Amounts due from related parties | 115,868 | |
Cuiyao Luo [Member] | ||
Amounts due to related parties | $ 26,302 | $ 12,781 |
Lease Right-Of-Use Asset and _3
Lease Right-Of-Use Asset and Lease Liabilities (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Leases [Abstract] | ||
Operating lease liability | $ 195,803 | $ 247,369 |
Operating lease discount rate | 3.25% | |
Amortization of the operating lease right of use asset | 54,628 | $ 0 |
Lease expenses | $ 60,129 |
Lease Right-Of-Use Asset and _4
Lease Right-Of-Use Asset and Lease Liabilities - Schedule of Operating Lease Right and Lease Liability (Details) - USD ($) | 12 Months Ended | |||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Leases [Abstract] | ||||
Gross lease payable | $ 195,803 | $ 259,257 | ||
Less: imputed interest | (4,824) | (11,888) | ||
Initial recognition as of June 1, 2019 | $ 247,369 | $ 247,369 | 195,803 | 247,369 |
Operating lease right of use asset Initial recognition | ||||
Operating lease right of use asset Accumulated amortization | (54,628) | 0 | ||
Operating lease right of use asset Initial recognition | 192,741 | |||
Initial recognition as of June 1, 2019 | 247,369 | |||
Less: gross repayment | (56,390) | |||
Add: imputed interest | 4,824 | |||
Balance as of May 31, 2020 | $ 195,803 | $ 247,369 | ||
Less: lease liability current portion | (83,044) | |||
Lease liability non-current portion | $ 112,759 |
Lease Right-Of-Use Asset and _5
Lease Right-Of-Use Asset and Lease Liabilities - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) | May 31, 2020 | May 31, 2019 |
Leases [Abstract] | ||
2020 | $ 83,044 | |
2021 | 89,567 | |
2022 | 23,192 | |
Total | $ 195,803 | $ 259,257 |
Lease Right-Of-Use Asset and _6
Lease Right-Of-Use Asset and Lease Liabilities - Schedule of Other Information (Details) | 12 Months Ended |
May 31, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flow from operating lease | $ 57,032 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 192,741 |
Remaining lease term for operating lease (years) | 2 years 2 months 30 days |
Weighted average discount rate for operating lease | 3.25% |