Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Feb. 21, 2017 | Jan. 31, 2017 | |
Document Type | 10-K | ||
Amendment Flag | true | ||
Amendment Description | Xiangtian (USA) Air Power Co., Ltd. (together with its subsidiaries, the “Company” sometimes referred to as “we”, “us” or “our”) is filing this Amendment No. 1 on Form 10-K/A (this “Amendment No. 1”) to amend its Annual Report on Form 10-K for the fiscal year ended July 31, 2017, as originally filed with the Securities and Exchange Commission (the “Commission”) on October 31, 2017 (the “Original Form 10-K”) For the convenience of the reader, this report on Form 10-K/A restates in its entirety, as amended, our Original Form 10-K. This report on Form 10- K/A is presented as of the filing date of the Original Form 10-K and does not reflect events occurring subsequent to the date of the Original Form 10-K. | ||
Document Period End Date | Jul. 31, 2017 | ||
Trading Symbol | goas | ||
Entity Registrant Name | XIANGTIAN (USA) AIR POWER CO., LTD. | ||
Entity Central Index Key | 1,472,468 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 591,042,000 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 303,738,181 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2017 | Jul. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 1,156,969 | $ 1,226,220 |
Accounts receivable, net | 1,142,631 | 2,848,904 |
Inventories | 550,413 | 2,080,853 |
Advances to suppliers | 1,168,867 | 4,594,299 |
Costs in excess of billings | 2,916,902 | 710,652 |
Other receivables | 12,308 | 491,290 |
Other current asset | 0 | 126,395 |
Total current assets | 6,948,090 | 12,078,613 |
Non-current assets | ||
Property, plant and equipment, net | 4,330,333 | 4,520,735 |
Deposit for property, plant and equipment | 2,080,436 | 178,617 |
Total non-current assets | 6,410,769 | 4,699,352 |
Total assets | 13,358,859 | 16,777,965 |
Current liabilities | ||
Accounts payable and accrued liabilities | 5,015,806 | 4,851,630 |
Advance from customers | 471,880 | 620,814 |
Due to related parties | 2,352,821 | 1,716,734 |
Due to director | 500,247 | 414,876 |
Income taxes payable | 544,508 | 329,177 |
Deferred tax liabilities | 0 | 107,609 |
Other payables | 467,463 | 234,791 |
Total current liabilities | 9,352,725 | 8,275,631 |
Non-current liabilities | ||
Commitments and contingencies | 0 | 0 |
STOCKHOLDERS' EQUITY | ||
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock: $0.001 par value, 1,000,000,000 shares authorized, 591,042,000 shares issued and outstanding | 591,042 | 591,042 |
Additional paid-in capital | 9,962,555 | 9,713,675 |
Subscription receivable | (310,000) | (310,000) |
Accumulated deficit | (5,377,094) | (812,935) |
Accumulated other comprehensive loss | (860,369) | (679,448) |
Total stockholders' equity | 4,006,134 | 8,502,334 |
Total liabilities and stockholders' equity | $ 13,358,859 | $ 16,777,965 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2017 | Jul. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 591,042,000 | 591,042,000 |
Common stock, shares outstanding | 591,042,000 | 591,042,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Revenue: | |||
Significant customer, former related party | $ 6,798,985 | $ 8,705,527 | $ 0 |
Other customers | 2,551,798 | 1,323,231 | 20,772,028 |
Other related parties | 170,588 | 811,197 | 0 |
Total revenue | 9,521,371 | 10,839,955 | 20,772,028 |
Cost of sales | 8,543,207 | 9,642,803 | 17,781,011 |
Gross profit | 978,164 | 1,197,152 | 2,991,017 |
Operating expenses: | |||
Selling, general and administrative expenses (including $121,309, $127,835, and $344,736 to related parties for the year ended July 31, 2017, 2016, and 2015, respectively) | 2,593,916 | 1,663,621 | 1,237,953 |
Provision for doubtful accounts | 1,395,152 | 60,242 | 0 |
Impairment of advances to suppliers | 1,404,565 | 0 | 0 |
Total operating expenses | 5,393,633 | 1,723,863 | 1,237,953 |
Income (loss) from operations | (4,415,469) | (526,711) | 1,753,064 |
Other income (expense) | |||
Other income | 8,222 | 144,933 | (103) |
Interest income (expense) | 1,329 | 276 | (178,661) |
Total other income (expense), net | 9,551 | 145,209 | (178,764) |
Income (loss) before taxes | (4,405,918) | (381,502) | 1,574,300 |
Income tax expense | (158,241) | (226,682) | (916,840) |
Net income (loss) | (4,564,159) | (608,184) | 657,460 |
Foreign currency translation adjustment | (180,921) | (694,964) | 7,492 |
Comprehensive income (loss) | $ (4,745,080) | $ (1,303,148) | $ 664,952 |
Net earnings (loss) per common share - basic and diluted | $ (0.01) | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 591,042,000 | 591,042,000 | 597,907,753 |
Consolidated Statement of Oper5
Consolidated Statement of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Selling, general and administrative expenses to related parties | $ 121,309 | $ 127,835 | $ 344,736 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Subscription Receivable [Member] | Deficit Accumulated [Member] | Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Jul. 31, 2014 | $ 598,042 | $ 9,451,675 | $ (317,000) | $ (862,211) | $ 8,024 | $ 8,878,530 |
Beginning Balance (Shares) at Jul. 31, 2014 | 598,042,000 | |||||
Common stock issued (Shares) | (7,000,000) | |||||
Rent contributed by shareholders | 6,000 | 6,000 | ||||
Cancellation of issued shares | $ (7,000) | 7,000 | ||||
Other comprehensive income | 7,492 | 7,492 | ||||
Net income | 657,460 | 657,460 | ||||
Ending Balance at Jul. 31, 2015 | $ 591,042 | 9,457,675 | (310,000) | (204,751) | 15,516 | 9,549,482 |
Ending Balance (Shares) at Jul. 31, 2015 | 591,042,000 | |||||
Rent contributed by shareholders | 6,000 | 6,000 | ||||
Contribution from shareholders | 250,000 | 250,000 | ||||
Other comprehensive income | (694,964) | (694,964) | ||||
Net income | (608,184) | (608,184) | ||||
Ending Balance at Jul. 31, 2016 | $ 591,042 | 9,713,675 | (310,000) | (812,935) | (679,448) | 8,502,334 |
Ending Balance (Shares) at Jul. 31, 2016 | 591,042,000 | |||||
Rent contributed by shareholders | 6,000 | 6,000 | ||||
Cancellation of capital lease obligation to shareholders recorded as capital contribution | 242,880 | 242,880 | ||||
Other comprehensive income | (180,921) | (180,921) | ||||
Net income | (4,564,159) | (4,564,159) | ||||
Ending Balance at Jul. 31, 2017 | $ 591,042 | $ 9,962,555 | $ (310,000) | $ (5,377,094) | $ (860,369) | $ 4,006,134 |
Ending Balance (Shares) at Jul. 31, 2017 | 591,042,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (4,564,159) | $ (608,184) | $ 657,460 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation expense | 281,722 | 266,773 | 414,623 |
Provision for warranty reserve | 65,833 | 0 | 0 |
Allowance for doubtful accounts | 1,395,152 | 60,242 | 0 |
Impairment of advances to suppliers | 1,404,565 | 0 | 0 |
Impairment of inventories | 337,000 | 0 | 0 |
Gain on termination of capital lease | 0 | (128,379) | 0 |
Rent contributed by shareholders | 6,000 | 6,000 | 6,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 292,492 | 1,758,079 | (4,736,375) |
Inventories | 1,188,831 | 503,892 | 6,315,793 |
Advance to suppliers | 2,020,867 | 485,715 | 2,438,844 |
Cost in excess of billings | (2,206,250) | 0 | 0 |
Other receivables | 302,927 | 43,289 | (337,078) |
Other current assets | 129,463 | 594,895 | 422,426 |
Due from related party | 0 | 583,124 | (581,671) |
Deferred tax asset | 0 | 0 | 113,932 |
Accounts payable and accrued liabilities | 164,176 | 1,881,936 | 2,900,812 |
Advance from customers | (148,934) | (5,213,700) | (6,056,247) |
Other payables and tax payables | 274,561 | 115,154 | 607,729 |
Deferred tax liability | 0 | 26,832 | 83,388 |
Net cash provided by operating activities | 944,246 | 375,668 | 2,249,636 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (1,989,195) | (91,814) | (63,234) |
Other assets | 176,055 | (154,325) | (32,319) |
Net cash used in investing activities | (1,813,140) | (246,139) | (95,553) |
Cash flows from financing activities: | |||
Advances from (repayment to) related parties | 860,793 | 671,461 | (2,022,822) |
Advances from (repayment to) director | 86,936 | (2,817) | (13,007) |
Capital contribution from shareholders | 0 | 250,000 | 0 |
Net cash provided by (used in) financing activities | 947,729 | 918,644 | (2,035,829) |
Effect of exchange rate change on cash | (148,086) | (323,982) | (173,013) |
Net change in cash and cash equivalents | (69,251) | 724,191 | (54,759) |
Cash and cash equivalents - beginning of period | 1,226,220 | 502,029 | 556,788 |
Cash and cash equivalents - end of period | 1,156,969 | 1,226,220 | 502,029 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 0 | 0 | 0 |
Income tax paid | 46,405 | 140,171 | 426,616 |
Supplemental non-cash investing and financing information: | |||
Cancellation of lease obligation recorded as capital contribution | 242,880 | 0 | 0 |
Rent contributed by shareholders | $ 6,000 | $ 6,000 | $ 6,000 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2017 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Xiangtian (USA) Air Power Co., Ltd. (the “Company”) was incorporated in the State of Delaware on September 2, 2008 as Goa Sweet Tours Ltd. On April 17, 2012, the Company entered into Share Purchase Agreements, by and among, Luck Sky International Investment Holdings Limited (“Lucky Sky”), an entity owned and controlled by Zhou Deng Rong, and certain of our former stockholders who owned, in the aggregate, 7,200,000 shares of the Company’s common stock ( 90% of the at then outstanding shares). On May 15, 2012, Luck Sky purchased all 7,200,000 shares for an aggregate of $235,000. Effective May 29, 2012, the Company’s name was changed to “Xiangtian (USA) Air Power Co., Ltd.”. Effective October 31, 2016, the Company reincorporated in the State of Nevada. On May 30, 2014, the Company entered into the Stock Purchase Agreement with Mr. Zhou Jian, the sole shareholder of Luck Sky (Hong Kong) Aerodynamic Electricity Limited (“LuckSky HK”) and acquired Luck Sky Aerodynamic and Luck Sky Shen Zhen, its subsidiary organized in the PRC. As a result, Luck Sky HK became our wholly owned subsidiary and Luck Sky Shen Zhen became our indirect subsidiary through Luck Sky HK. The Company is in the field of Compressed Air Energy Storage in China and produces electricity generation systems that combine our compressed air storage technology with photovoltaic (PV) panels to achieve a continuous supply of power under weather conditions that are unfavorable to the generation of electricity from PV panels alone. All of the Company’s operations are through its variable interest entities located in the Peoples’ Republic of China (PRC). Going concern The accompanying Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the year ended July 31, 2017, the Company incurred a net loss of $4,564,159, and at July 31, 2017, the Company had a working capital deficit of $2,404,635. These factors, among others, raise substantial doubt about our ability to continue as a going concern. In addition, the Company’s independent registered public accounting firm, in its report on our July 31, 2017 financial statements, has raised substantial doubt about the Company’s ability to continue as a going concern. The Company’s financial statements do not include any adjustments that might result from the outcome of this uncertainty should we be unable to continue as a going concern. The Company believes it will require additional funds to continue its operations through fiscal 2018 and to continue to develop its existing projects and expand into new projects. The Company plans to raise such funds by generating additional sales revenue, implementing cost reductions, and raising loans from major shareholders and directors, or a combination thereof, and the Company believes it is capable of raising such funds in the coming fiscal year. There are no assurances such funds will be available, and if available, at terms acceptable to the Company. The consolidated financial statements do not include any adjustments that may result from this uncertainty. Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s consolidated financial statements are expressed in U.S. dollars. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant accounting estimates include, among others, the allowance for doubtful accounts receivable, valuation of inventory, valuation of advances to suppliers, impairment analysis of long-term assets, valuation allowance on deferred income taxes, valuation of warranty reserves, and the accrual of potential liabilities. Actual results may differ materially from those estimates. Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs for which the Company or its subsidiary is the primary beneficiary and the VIEs' subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Variable Interest Entity Lucksky Holding (Group) Co. Ltd (“LuckSky Group”)was established in 2000 by Zhou Deng Rong after he obtained a series of patents and developed the compressed air energy storage and related technology. Sanhe City Lucksky Electrical Engineering Co., Ltd. (“Sanhe”), a corporation incorporated under the laws of the PRC, was established in July 2013 and was under common control with LuckSky Group. In July, 2014, LuckSky Group transferred to Sanhe its assets and liabilities related to its compressed air energy storage power generation technology and PV panel installations which are recorded at their historical cost basis. On July 25, 2014, Luck Sky Shen Zhen; Sanhe, and Mr. Zhou Jian and Mr. Zhou Deng Rong, the owners of 97% and 3%, respectively, of Sanhe; entered into a series of agreements known as variable interest agreements (the “VIE Agreements”) pursuant to which Sanhe became Luck Sky Shen Zhen’s contractually controlled affiliate. The purpose and effect of the VIE Agreements between Sanhe and Luck Sky Shen Zhen enables the Company to substantially influence the daily operations and financial affairs of Sanhe, appoint its senior executives, and approve all matters requiring shareholder approval. As a result of these contractual arrangements, which obligates Luck Sky Shen Zhen to absorb a majority of the risk of loss from the activities of Sanhe and enables Luck Sky Shen Zhen to receive a majority of its expected residual returns, the Company accounts for Sanhe as a variable interest entity (VIE). Simultaneously, the Company entered into a common stock purchase agreement with Zhou Jian and Zhou Deng Rong, the owners of 97% and 3%, respectively, of Sanhe, in consideration for the execution of the VIE Agreements. Pursuant to the Stock Purchase Agreement, the Company issued Zhou Jian and Zhou Deng Rong 264,850,740 and 8,191,260 shares, respectively, of our common stock, representing 51.4% of our issued and outstanding shares of common stock. The principal terms of the agreements entered into among Sanhe and Luck Sky Shen Zhen, the primary beneficiary, are described below: • Framework Agreement on Business Cooperation • Exclusive Management, Consulting and Training and Technical Service Agreement • Exclusive Option Agreement • Equity Pledge Agreement • Know-How Sub-License Agreement • Power of Attorney The Framework Agreement and the Exclusive Management Agreement have initial terms of ten years but each contains a renewal provision that allows Luck Sky Shen Zhen to extend the term of such agreements at its sole option by written notice with no limitation as to such extensions. The other agreements are of unlimited duration. The Company’s total assets and liabilities presented in the consolidated financial statements represent substantially all of total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of July 31, 2017, 2016 and 2015 and for the years ended July 31, 2017, 2016 and 2015, respectively: July 31, 2017 July 31, 2016 Total assets $ 13,070,348 $ 16,566,891 Total liabilities 8,498,122 7,944,737 For the year For the year For the year ended ended ended July 31, July 31, July 31, 2017 2016 2015 Revenues $ 9,502,952 $ 10,839,955 $ 20,772,028 Net income (loss) (4,124,909 ) (263,796 ) 165,029 Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash denominated in Renminbi (RMB) with a US dollar equivalent of $1,154,188 and $1,202,049 at July 31, 2017 and 2016, respectively, were held in accounts at financial institutions located in the PRC‚which is not freely convertible into foreign currencies. The Company and its subsidiaries and VIE have not experienced any losses in such accounts and do not believe the cash is exposed to any significant risk. Revenue Recognition Revenues are generated from (i) the sale and installation of power generation systems and PV systems and (ii) the sale of inventories, primarily made up of PV panels. Sale and installation of power generation systems and PV systems Sales of power generation system in conjunction of system installation are generally recognized using the completed-contract method and revenue is recognized when the contract is substantially complete and when collectability is reasonably assured. For certain contracts that are longer term primarily due to the licensing process, the percentage-of-completion method is used. We provide for any loss that we expect to incur on contracts when that loss is probable. For the years ended July 31, 2017, 2016, and 2015, the gross revenue recognized under completed-contract method was $6,894,866, $9,997,256, and $20,772,028, respectively. For the years ended July 31, 2017 and 2016, the gross revenue recognized under percentage-of-completion method was $405,077 and $874,510, respectively. There was no revenue recognized under the percentage-of-completion method in 2015. Sales of inventories Sales of inventories is recognized when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured. For the year ended July 31, 2017, the gross revenue recognized from the sale of inventory was $2,177,783. For the years ended July 31, 2016 and 2015, there were no inventory sales Accounts Receivable Accounts receivables are recognized and carried at original invoiced amount less an allowance for any uncollectible accounts. The Company uses the aging method to estimate the valuation allowance for anticipated uncollectible receivable balances. Under the aging method, bad debts determined by management are based on historical experience as well as the current economic climate and are applied to customers' balances categorized by the number of months the underlying invoices have remained outstanding. At July 31, 2017 and 2016, accounts receivable are net of allowances of $1,472,296 and $58,815. At July 31, 2015, there was no such allowances. Inventories Inventories are stated at the lower of cost or market. Cost is principally determined using the weighted average basis. Inventories consist of raw materials, including PV panels, storage tanks and other accessory parts, work in process, and finished goods. When appropriate, allowances to inventories are recorded to write down the cost of inventories to their net realizable value. For the year ended July 31, 2017, an allowance of $341,609 was recorded for inventories and reflected as cost of sales on the accompanying statement of operations.For the years ended July 31, 2016 and 2015, there were no such allowances. Property and equipment Property and equipment are stated at cost net of accumulated depreciation and impairment losses. Depreciation and amortization are provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicles 5 years Major additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Gains or losses on dispositions of property and equipment are included in operating income (loss). Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. For the years ended July 31, 2017, 2016, and 2015, the Company did not recognize any impairments for its property and equipment. Fair Value Measurements The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be 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 measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. • Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. There were no assets or liabilities measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of July 31, 2017, 2016 and 2015. Concentration of Credit Risk and Significant Customers The Company, by policy, routinely assesses the financial strength of its customers. As a result, the Company believes that its provision for bad debt is sufficiently accrued. During the year ended July 31, 2017 and 2016, Xianning Lucksky Aerodynamic Electricity Ltd (“Xianning Lucksky”) represented 71% and 80% of the Company's revenue, respectively (See Note 8). One other customer accounted for 12% of revenue for the year ended July 31, 2017. At July 31, 2017 and 2016, Xianning Lucksky accounted for 88% and 49%, respectively, of accounts receivable. For the year ended July 31, 2015, one customer, Binzhou Xintuo, accounted for 84% of revenue. Warranty The Company generally provides limited warranties for work performed under its contracts. The warranty periods typically extend for up to five years following substantial completion of the Company's work on a project. At the time a sale is recognized, we record estimated future warranty costs. Such estimated costs for warranties are estimated at completion. Generally, the estimated claim rates of warranty are based on actual warranty experience or Company’s best estimate. For the year ended July 31, 2017, a warranty reserve of $65,833 was recorded. There were no such reserves record in 2016 or 2015. No right of return exists on sales of inventory. Value added taxes The Company is subject to value added tax (“VAT”). Revenue from sales of goods purchased from other entities is generally subject to VAT at the rate of 17%. The Company is entitled to a refund for VAT already paid on goods purchased. The VAT balance is recorded in other payables on the balance sheets. Revenues are presented net of applicable VAT. Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. 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. Comprehensive Loss The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 220 “Reporting Comprehensive Income”. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company had other comprehensive income (loss) of ($180,921), ($694,964) and $7,492 for the years ended July 31, 2017, 2016, and 2015, respectively, from foreign currency translation adjustments. Foreign Currency Translation The reporting currency of the Company is the United States Dollars. The functional currency of the Company is the Chinese Renminbi (“RMB”) as substantially all of the Company’s PRC subsidiaries’ operations use this denomination. Foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rates prevailing at the transaction date. Revenues and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations. For the purpose of presenting these financial statements of subsidiaries in PRC, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 6.7240, 6.6371 and 6.2097 as of July 31, 2017, July 31, 2016 and July 31, 2015, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 6.8160, 6.4798 and 6.1884 for the year ended July 31, 2017, July 31, 2016 and July 31, 2015, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. For the purpose of presenting these financial statements of the subsidiary in Hong Kong, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 7.8100, 7.7588 and 7.7514 as of July 31, 2017, July 31, 2016 and July 31, 2015, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 7.7696, 7.7595 and 7.7536 for the year ended July 31, 2017, July 31, 2016 and July 31, 2015, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. Earnings (Loss) per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Earnings per share excludes all potential dilutive shares of common stock if their effect is anti-dilutive. There were no potential dilutive securities at July 31, 2017, 2016 or 2015. Statutory Reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC ("PRC GAAP") at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, and ASU 2017-05, all of which clarify certain implementation guidance within ASU 2014-09. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. The standard can be adopted either retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company is currently in the process of analyzing the information necessary to determine the impact of adopting this new guidance on its financial position, results of operations, and cash flows. The Company will adopt the provisions of this statement in the first quarter of fiscal 2019, using the modified retrospective approach. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating sectionof the statement of cash flows. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. The amendments are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company is currently assessing this ASU’s impacts on the Company’s consolidated results of operations and financial condition. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Jul. 31, 2017 | |
ACCOUNTS RECEIVABLE [Text Block] | NOTE 2 –ACCOUNTS RECEIVABLE Accounts receivable consist of the following: July 31, July 31, 2017 2016 Accounts receivable $ 2,614,927 $ 2,907,719 Less: allowance for doubtful accounts (1,472,296 ) (58,815 ) Accounts receivable, net $ 1,142,631 $ 2,848,904 During the years ended July 31, 2017 and 2016, the Company recorded a provision of $1,395,143 and $60,242, respectively, related to long outstanding accounts receivables which the Company deemed were no longer collectible. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jul. 31, 2017 | |
INVENTORIES [Text Block] | NOTE 3 – INVENTORIES Inventories consist of the following: July 31, July 31, 2017 2016 Raw materials and parts $ 801,437 $ 2,080,853 Work in process 54,924 - Finished goods 35,661 - Total 892,022 2,080,853 Less: allowance for inventory reserve (341,609 ) - Inventory, net $ 550,413 $ 2,080,853 |
COSTS IN EXCESS OF BILLINGS
COSTS IN EXCESS OF BILLINGS | 12 Months Ended |
Jul. 31, 2017 | |
COSTS IN EXCESS OF BILLINGS [Text Block] | NOTE 4 – COSTS IN EXCESS OF BILLINGS Costs in excess of billings relate to certain contracts and consist of the following: July 31, 2017 July 31, 2016 Costs in excess of billings on uncompleted contracts- related party $ 46,510 $ 710,652 Costs on contracts not yet recognized 2,870,392 - Costs in excess of billings $ 2,916,902 $ 710,652 Contracts accounted for under the percentage-of- completion method: Costs incurred on uncompleted contracts-related party $ 172,922 $ 853,787 Billings to date (126,412 ) (143,135 ) $ 46,510 $ 710,652 At July 31, 2017, $2,870,392 of inventory delivered in advance of revenue recognition is deferred and included with costs in excess of billings on the accompanying balance sheet. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jul. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT [Text Block] | NOTE 5 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: July 31, July 31, 2017 2016 Machinery equipment $ 5,025,011 $ 4,951,227 Computer and office equipment 68,422 53,933 Vehicle 68,442 69,339 Total property, plant and equipment 5,161,875 5,074,499 Less: accumulated depreciation (831,542 ) (553,764 ) Total $ 4,330,333 $ 4,520,735 Total depreciation expenses for the years ended July 31, 2017, 2016 and 2015 was $281,722, $266,773 and $414,623, respectively. For the years ended July 31, 2017, 2016 and 2015, depreciation included in cost of sales was $22,490, $201,666 and $252,473, respectively. For the years ended July 31, 2017, 2016 and 2015, depreciation included in selling, general and administrative expenses was $259,232, $65,107 and $162,150, respectively. As of July 31, 2017 and 2016, the Company made payments of $2,080,436 and $178,617, respectively, for the purchases of machinery equipment that had not been accepted and put into service. |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 12 Months Ended |
Jul. 31, 2017 | |
ADVANCES TO SUPPLIERS [Text Block] | NOTE 6 – ADVANCES TO SUPPLIERS As of July 31, 2017 and 2016, the Company had $1,168,867 and $4,594,299, respectively of outstanding advances to suppliers, which mainly represent interest-free cash deposits paid to suppliers for future purchases of raw materials. During the year ended July 31, 2017, the Company provided a reserve of $1,404,565 against certain advances that were made in 2015 for the manufacture of power station components. In 2016, the Company obtained some of the components but returned them after the related contracts were cancelled. At July 31, 2017, the Company reviewed its expectations for future use of these items, and based on its internal forecasts of customer demand, the Company does not anticipate it will enter projects in the next 12 months that will require these parts. Although Company management believes such prepaid advances will ultimately be realizable, a reserve for this amount was established at July 31, 2017. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Text Block] | NOTE 7 - RELATED PARTY TRANSACTIONS Sales to related party In August 2016, Sanhe began three construction projects for installation of PV panels with Sanhe Liguang Kelitai Equipment Ltd (“Sanhe Keilitai”). Sanhe Keilitai is majority ( 95%) owned by Zhou Jian, our Chairman of the Board. During the year ended July 31, 2017, revenue of $170,588 and costs of sales of $147,466 were recognized related to these projects. At July 31, 2017, costs in excess of billings of these contracts totaled $46,510. Advances due to Directors Advances due to Directors at July 31, 2017 and 2016 were $500,247 and $414,876, respectively. The Advances are unsecured, non interest bearing and due on demand with no formal terms of repayment. July 31, July 31, Due to related parties: 2017 2016 Advances due to Zhou Deng Rong $ 1,953,169 $ 1,190,370 Lease payable to Lucksky Group 399,652 280,304 Lease payable to Sanhe Dong Yi - 246,060 $ 2,352,821 $ 1,716,734 The advances due to Zhou Deng Rong, our former CEO, are unsecured, non-interest bearing, are due on demand, and primarily represent payment of professional and consulting fees incurred by the Company. Sanhe leases its principal office, factory and dormitory from LuckSky Group in Sanhe City, Hebei Province, PRC. LuckSky Group is owned by Zhou Deng Rong. The space in the office, factory and dormitory being leased are 1296, 5160 and 1200 square meters, respectively. The office and factory space are leased for a rent of $105,053 (RMB697,248) per year and the dormitory is leased for a rent of $19,527 (RMB129,600) per year. The leases expire in April 30, 2024 and are subject to renewal with a prior two-month written notice. For the years ended July 31, 2017, 2016, and 2015, rent expense for the lease with Lucksky was $125,930, $127,835, and $33,253, respectively. At July 31, 2017 and 2016, the amount due under the leases was $399,652 and $280,304, respectively. On April 28, 2012, Zhou Jian obtained the right of usage to 44.3 acres of agricultural land where Sanhe’s principal office, factory and dormitory are located for 18 years and 8 months, starting May 1, 2012. The annual price paid for such usage rights is $5,200 (RMB34,510). Through August 1, 2015, Sanhe leased a second factory and office in Sanhe City from Sanhe Dong Yi Glass Machine Company Limited (Sanhe Dong Yi), which is owned by Zhou Deng Rong. On August 1, 2015, the lease was terminated, and at July 31, 2016, $246,060 of past rent was due Sanhe Dong Yi. During the year ended July 31, 2017, Sanhe Dong Yi agreed to forgive the liability. As the transaction was between the Company and Zhou Deng Rong, a related party, the Company accounted for the gain as a capital contribution. For the years ended July 31, 2016 and 2015, rent expense for the lease with Sanhe Dong Yi was $211,701 and $51,307. |
SIGNIFICANT CUSTOMER, FORMER RE
SIGNIFICANT CUSTOMER, FORMER RELATED PARTY | 12 Months Ended |
Jul. 31, 2017 | |
SIGNIFICANT CUSTOMER, FORMER RELATED PARTY [Text Block] | NOTE 8 – SIGNIFICANT CUSTOMER, FORMER RELATED PARTY Prior to April 10, 2014, Deng Rong Zhou, our former CEO, owned 70%, and Zhou Jian, our Chairman, owned the remaining 30% of an entity called Xianning Lucksky Aerodynamic Electricity (“Property Owner/Lessor”). Through April 10, 2014, Property Owner/Lessor’s primary asset was a land use right for approximately 70 acres of land located in Xianning, Hubei Province, PRC. On April 10, 2014, Deng Rong Zhou sold his 70% share interest in Property Owner/Lessor to an individual, and Zhou Jian sold his 30% share interest in Property Owner/Lessor to another individual. The two individuals are unrelated to Deng Rong Zhou or Zhou Jian, or any member of management of the Company, or any of its consolidated subsidiaries or VIE. During the years ended July 31, 2017, and in the years prior to it, the Company entered into a series of contracts on two buildings owned by Xianning Lucksky Aerodynamic Electricity (Property Owner/Lessor). These contracts represented approximately $6,800,000, $8,700,000 and $0 of the Company’s revenue during the years ended July 31, 2017, 2016 and 2015 respectively. On July 27, 2016, Xianning Xiangtian Air Energy Electric Co., Ltd. (“Xianning Xiangtian”), the wholly-owned subsidiary of Sanhe, entered into a rental agreement with Xianning Lucksky Aerodynamic Electricity to lease 4,628 square meters space in a factory in Xianning, Hubei Province, PRC. The space is leased for a rent of $83,132 (RMB555,360) per year. The lease expires on July 31, 2018 and is subject to renewal with a prior one-month written notice. During the year ended July 31, 2017 rent expense related to this lease was $81,480. |
EMPLOYEE BENEFITS GOVERNMENT PL
EMPLOYEE BENEFITS GOVERNMENT PLAN | 12 Months Ended |
Jul. 31, 2017 | |
EMPLOYEE BENEFITS GOVERNMENT PLAN [Text Block] | NOTE 9. EMPLOYEE BENEFITS GOVERNMENT PLAN The Company participates in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. PRC labor regulations require the Company to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate based on the basic monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. At July 31, 2017 and 2016, the outstanding amount due to the local labor bureau was $126,409 and $92,134, respectively, and is included in Other Payables on the accompanying balance sheets. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jul. 31, 2017 | |
INCOME TAXES [Text Block] | NOTE 10 - INCOME TAXES Significant components of income tax expense consisted of the following for the years ended July 31 : 2017 2016 2015 Federal $ - $ - $ - State - - - PRC 263,025 196,099 833,452 Total current 263,025 196,099 833,452 Federal - - - State - - - PRC (104,784 ) 30,583 83,388 Total deferred (104,784 ) 30,583 83,388 Provision for income tax $ 158,241 $ 226,682 $ 916,840 Reconciliation of Effective Income Tax Rate is as follows for the years ended July 31: 2017 2016 2015 Statutory U.S. tax rate (34.0% ) (34.0% ) 34.0% Effect of PRC Statutory Tax Rate 9.0% 9.0% (9.0% ) Less: Valuation Allowance (27.5% ) (52.0% ) 22.4% Deferred Tax Expense 2.4% 8.0% 5.3% Nondeductible and nontaxable items (1.3% ) 24.4% 5.5% Tax expense 3.6% 59.4% 58.2% Significant components of the Company’s deferred tax assets as of July 31, 2017 and 2016 are as follows: 2017 2016 Deferred tax assets: Net operating loss carry forwards $ 854,000 $ 470,200 Accounts receivable allowance 348,800 15,000 Impairment charges 435,400 - Accrued liabilities 148,600 168,000 Warranty and other 19,300 1,700 Deferred tax assets before valuation allowance 1,806,100 654,900 Less: valuation allowance (1,806,100 ) (654,900 ) Net deferred income tax assets - - Deferred tax liability Temporary differences of revenue recognition - (107,609 ) Net deferred tax assets (liabilities) $ - $ (107,609 ) As of July 31, 2017, the Company had U.S. federal net operating loss carryforwards (“NOLs”) of approximately $2,194,000 that expire beginning in 2029. As of July 31, 2017, the Company had approximately RMB2,943,000 (US $432,000) of NOLs related to its subsidiary Luck Sky Shen Zhen, and its VIE Sanhe, and Sanhe’s subsidiary Xianning Xiangtian, that expire in years 2019 through 2022. 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 not be realized. The ultimate realization of deferred tax assets is dependent upon future generation for taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. The Company evaluated the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 prescribes a comprehensive model for how a company should recognize, present, and disclose uncertain positions that the company has taken or expects to take in its tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the net benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carry forward or amount of tax refundable is reduced) for unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. If applicable, interest costs related to the unrecognized tax benefits are required to be calculated and would be classified as “Other Income (Expense)” in the statement of operations. Penalties would be recognized as a component of “General and Administrative Expenses” in the statement of operations. No interest or penalties on unpaid tax were recorded during the years ended July 31. 2017, 2016, and 2015, respectively. As of July 31, 2017, and 2016, no liability for unrecognized tax benefits was required to be reported. The Company does not expect any significant changes in its unrecognized tax benefits in the next year. |
COMMITMENTS, CONTINGENCIES, RIS
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES | 12 Months Ended |
Jul. 31, 2017 | |
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES [Text Block] | NOTE 11. COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES Operating leases The total future minimum lease payments under the non-cancellable operating leases as of July 31, 2017 are payable as follows (all amounts are due to a related party (see Note 7) except for $83,132 in the year ending July 31, 2018): Year ending July 31, 2018 $ 205,563 Year ending July 31, 2019 122,970 Year ending July 31, 2020 122,970 Year ending July 31, 2021 122,970 Thereafter 338,167 Total $ 912,640 Rental expense of the Company for the year ended July 31, 2017, 2016 and 2015 were $212,610, $127,835 and $344,736, respectively. Contractual Obligations and Commitments The following table sets forth the Company’s principal obligations and commitments for the next five fiscal years as of July 31, 2017 aggregating $19,927,664, of which $2,853,068 is included in current liabilities in the Company’s consolidated balance sheet at July 31, 2017. Payments Due By Year After Total 2018 2019 2020 2021 2021 Capital commitments to acquire inventory Purchase obligations $ 16,113,770 $ 16,113,770 $ - $ - $ - $ - Operating leases 912,640 205,563 122,970 122,970 122,970 338,167 Due to directors 500,247 500,247 - - - - Due to related parties 2,352,821 2,352,821 - - - - Consulting agreements 423,186 228,186 180,000 15,000 - - Total $ 20,302,664 $ 19,400,587 $ 302,970 $ 137,970 $ 122,970 $ 338,167 Contingencies On September 23, 2013, the Company issued 60,000,000 shares of restricted common stock at $0.001 per share to Mr. Roy Thomas Phillips, who was then a consultant to the Company and later served as the acting CFO of the Company beginning July 29, 2014, and two other non-related parties obtained a total of 7,000,000 shares of restricted common stock. The shares were issued in contemplation of a secondary offering. The Company takes the position that these shares should be cancelled since no secondary offering was consummated. The Company is taking steps to have these shares canceled. The Company valued the 67,000,000 shares of common stock issued at $67,000 as there was no market for the Company’s common stock and it has limited or no trading; and there is thought to be minimal value in the Company at the time of issuance, therefore the par value is thought to match the assumed market price of the Company’s common stock which is at $0.001 per share. The issuance of these securities could result in further dilution to the Company’s stockholders which effects the earnings (loss) per share amount of the Company. The Company might incur additional expenses to have these shares canceled. On July 24, 2015, 7,000,000 shares issued to two other non-related parties were cancelled. For the years ended July 31, 2017, 2016, and 2015, the dilutive effect of not canceling the 60,000,000 shares is incorporated in the consolidated financial statements as the Company recorded such shares as issued and outstanding. For the year ended July 31, 2017, not canceling the 60,000,000 shares has an anti-dilutive effect. The loss per share for the years ended July 31, 2016, and 2015 remained $0.00, and $0.00, respectively, with the dilutive effect of not canceling such shares. If the shares are not voluntarily returned for cancellation, the Company will need to commence litigation in Delaware to obtain a judgment to cancel the shares for lack of consideration. At this time, the Company is unable to estimate the cost such litigation if it takes place. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 12 Months Ended |
Jul. 31, 2017 | |
STOCKHOLDERS EQUITY [Text Block] | NOTE 12 – STOCKHOLDERS’ EQUITY In June 2017, the Board of Directors adopted a stock incentive plan named Xiangtian (USA) Air Power Co. Ltd. 2017 Stock Incentive Plan (the “Plan”). As of July 31, 2017, we had not made any awards under the Plan. In the future, we may adopt and establish an equity incentive plan pursuant to which awards may be granted if our Compensation Committee determines that it is in the best interests of our stockholders and the Company to do so. |
QUARTERLY UNAUDUTED RESULTS
QUARTERLY UNAUDUTED RESULTS | 12 Months Ended |
Jul. 31, 2017 | |
QUARTERLY UNAUDUTED RESULTS [Text Block] | NOTE 13 – QUARTERLY UNAUDUTED RESULTS The results of operations by quarter for the years ended July 31, 2017 and 2016 are as follows: 2017 2016 (in thousands, except per share information) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net revenue $ 87 $ 966 $ 3,277 $ 5,191 $ 66 $ 3 $ 8,940 $ 1,831 Gross profit $ 15 $ 132 $ 512 $ 319 $ 5 $ 1 $ 983 $ 208 Net income (loss) $ (651 ) $ (321 ) $ (109 ) $ (3,483 ) $ (212 ) $ (226 ) $ 279 $ (449 ) Net income (loss) per share, basic and diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2017 | |
Basis of Presentation [Policy Text Block] | Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s consolidated financial statements are expressed in U.S. dollars. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant accounting estimates include, among others, the allowance for doubtful accounts receivable, valuation of inventory, valuation of advances to suppliers, impairment analysis of long-term assets, valuation allowance on deferred income taxes, valuation of warranty reserves, and the accrual of potential liabilities. Actual results may differ materially from those estimates. |
Principle of Consolidation [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs for which the Company or its subsidiary is the primary beneficiary and the VIEs' subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. |
Variable Interest Entity [Policy Text Block] | Variable Interest Entity Lucksky Holding (Group) Co. Ltd (“LuckSky Group”)was established in 2000 by Zhou Deng Rong after he obtained a series of patents and developed the compressed air energy storage and related technology. Sanhe City Lucksky Electrical Engineering Co., Ltd. (“Sanhe”), a corporation incorporated under the laws of the PRC, was established in July 2013 and was under common control with LuckSky Group. In July, 2014, LuckSky Group transferred to Sanhe its assets and liabilities related to its compressed air energy storage power generation technology and PV panel installations which are recorded at their historical cost basis. On July 25, 2014, Luck Sky Shen Zhen; Sanhe, and Mr. Zhou Jian and Mr. Zhou Deng Rong, the owners of 97% and 3%, respectively, of Sanhe; entered into a series of agreements known as variable interest agreements (the “VIE Agreements”) pursuant to which Sanhe became Luck Sky Shen Zhen’s contractually controlled affiliate. The purpose and effect of the VIE Agreements between Sanhe and Luck Sky Shen Zhen enables the Company to substantially influence the daily operations and financial affairs of Sanhe, appoint its senior executives, and approve all matters requiring shareholder approval. As a result of these contractual arrangements, which obligates Luck Sky Shen Zhen to absorb a majority of the risk of loss from the activities of Sanhe and enables Luck Sky Shen Zhen to receive a majority of its expected residual returns, the Company accounts for Sanhe as a variable interest entity (VIE). Simultaneously, the Company entered into a common stock purchase agreement with Zhou Jian and Zhou Deng Rong, the owners of 97% and 3%, respectively, of Sanhe, in consideration for the execution of the VIE Agreements. Pursuant to the Stock Purchase Agreement, the Company issued Zhou Jian and Zhou Deng Rong 264,850,740 and 8,191,260 shares, respectively, of our common stock, representing 51.4% of our issued and outstanding shares of common stock. The principal terms of the agreements entered into among Sanhe and Luck Sky Shen Zhen, the primary beneficiary, are described below: • Framework Agreement on Business Cooperation • Exclusive Management, Consulting and Training and Technical Service Agreement • Exclusive Option Agreement • Equity Pledge Agreement • Know-How Sub-License Agreement • Power of Attorney The Framework Agreement and the Exclusive Management Agreement have initial terms of ten years but each contains a renewal provision that allows Luck Sky Shen Zhen to extend the term of such agreements at its sole option by written notice with no limitation as to such extensions. The other agreements are of unlimited duration. The Company’s total assets and liabilities presented in the consolidated financial statements represent substantially all of total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of July 31, 2017, 2016 and 2015 and for the years ended July 31, 2017, 2016 and 2015, respectively: July 31, 2017 July 31, 2016 Total assets $ 13,070,348 $ 16,566,891 Total liabilities 8,498,122 7,944,737 For the year For the year For the year ended ended ended July 31, July 31, July 31, 2017 2016 2015 Revenues $ 9,502,952 $ 10,839,955 $ 20,772,028 Net income (loss) (4,124,909 ) (263,796 ) 165,029 |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash denominated in Renminbi (RMB) with a US dollar equivalent of $1,154,188 and $1,202,049 at July 31, 2017 and 2016, respectively, were held in accounts at financial institutions located in the PRC‚which is not freely convertible into foreign currencies. The Company and its subsidiaries and VIE have not experienced any losses in such accounts and do not believe the cash is exposed to any significant risk. |
Revenue Recognition [Policy Text Block] | Revenue Recognition Revenues are generated from (i) the sale and installation of power generation systems and PV systems and (ii) the sale of inventories, primarily made up of PV panels. Sale and installation of power generation systems and PV systems Sales of power generation system in conjunction of system installation are generally recognized using the completed-contract method and revenue is recognized when the contract is substantially complete and when collectability is reasonably assured. For certain contracts that are longer term primarily due to the licensing process, the percentage-of-completion method is used. We provide for any loss that we expect to incur on contracts when that loss is probable. For the years ended July 31, 2017, 2016, and 2015, the gross revenue recognized under completed-contract method was $6,894,866, $9,997,256, and $20,772,028, respectively. For the years ended July 31, 2017 and 2016, the gross revenue recognized under percentage-of-completion method was $405,077 and $874,510, respectively. There was no revenue recognized under the percentage-of-completion method in 2015. Sales of inventories Sales of inventories is recognized when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured. For the year ended July 31, 2017, the gross revenue recognized from the sale of inventory was $2,177,783. For the years ended July 31, 2016 and 2015, there were no inventory sales |
Accounts Receivable [Policy Text Block] | Accounts Receivable Accounts receivables are recognized and carried at original invoiced amount less an allowance for any uncollectible accounts. The Company uses the aging method to estimate the valuation allowance for anticipated uncollectible receivable balances. Under the aging method, bad debts determined by management are based on historical experience as well as the current economic climate and are applied to customers' balances categorized by the number of months the underlying invoices have remained outstanding. At July 31, 2017 and 2016, accounts receivable are net of allowances of $1,472,296 and $58,815. At July 31, 2015, there was no such allowances. |
Inventories [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market. Cost is principally determined using the weighted average basis. Inventories consist of raw materials, including PV panels, storage tanks and other accessory parts, work in process, and finished goods. When appropriate, allowances to inventories are recorded to write down the cost of inventories to their net realizable value. For the year ended July 31, 2017, an allowance of $341,609 was recorded for inventories and reflected as cost of sales on the accompanying statement of operations.For the years ended July 31, 2016 and 2015, there were no such allowances. |
Property and equipment [Policy Text Block] | Property and equipment Property and equipment are stated at cost net of accumulated depreciation and impairment losses. Depreciation and amortization are provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicles 5 years Major additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Gains or losses on dispositions of property and equipment are included in operating income (loss). Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. For the years ended July 31, 2017, 2016, and 2015, the Company did not recognize any impairments for its property and equipment. |
Fair Value Measurements [Policy Text Block] | Fair Value Measurements The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be 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 measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. • Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. There were no assets or liabilities measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of July 31, 2017, 2016 and 2015. |
Concentration of Credit Risk and Significant Customers [Policy Text Block] | Concentration of Credit Risk and Significant Customers The Company, by policy, routinely assesses the financial strength of its customers. As a result, the Company believes that its provision for bad debt is sufficiently accrued. During the year ended July 31, 2017 and 2016, Xianning Lucksky Aerodynamic Electricity Ltd (“Xianning Lucksky”) represented 71% and 80% of the Company's revenue, respectively (See Note 8). One other customer accounted for 12% of revenue for the year ended July 31, 2017. At July 31, 2017 and 2016, Xianning Lucksky accounted for 88% and 49%, respectively, of accounts receivable. For the year ended July 31, 2015, one customer, Binzhou Xintuo, accounted for 84% of revenue. |
Warranty [Policy Text Block] | Warranty The Company generally provides limited warranties for work performed under its contracts. The warranty periods typically extend for up to five years following substantial completion of the Company's work on a project. At the time a sale is recognized, we record estimated future warranty costs. Such estimated costs for warranties are estimated at completion. Generally, the estimated claim rates of warranty are based on actual warranty experience or Company’s best estimate. For the year ended July 31, 2017, a warranty reserve of $65,833 was recorded. There were no such reserves record in 2016 or 2015. No right of return exists on sales of inventory. |
Value added taxes [Policy Text Block] | Value added taxes The Company is subject to value added tax (“VAT”). Revenue from sales of goods purchased from other entities is generally subject to VAT at the rate of 17%. The Company is entitled to a refund for VAT already paid on goods purchased. The VAT balance is recorded in other payables on the balance sheets. Revenues are presented net of applicable VAT. |
Income Taxes [Policy Text Block] | Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. 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. |
Comprehensive Loss [Policy Text Block] | Comprehensive Loss The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 220 “Reporting Comprehensive Income”. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company had other comprehensive income (loss) of ($180,921), ($694,964) and $7,492 for the years ended July 31, 2017, 2016, and 2015, respectively, from foreign currency translation adjustments. |
Foreign Currency Translation [Policy Text Block] | Foreign Currency Translation The reporting currency of the Company is the United States Dollars. The functional currency of the Company is the Chinese Renminbi (“RMB”) as substantially all of the Company’s PRC subsidiaries’ operations use this denomination. Foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rates prevailing at the transaction date. Revenues and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations. For the purpose of presenting these financial statements of subsidiaries in PRC, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 6.7240, 6.6371 and 6.2097 as of July 31, 2017, July 31, 2016 and July 31, 2015, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 6.8160, 6.4798 and 6.1884 for the year ended July 31, 2017, July 31, 2016 and July 31, 2015, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. For the purpose of presenting these financial statements of the subsidiary in Hong Kong, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 7.8100, 7.7588 and 7.7514 as of July 31, 2017, July 31, 2016 and July 31, 2015, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 7.7696, 7.7595 and 7.7536 for the year ended July 31, 2017, July 31, 2016 and July 31, 2015, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. |
Earnings (Loss) per Share [Policy Text Block] | Earnings (Loss) per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Earnings per share excludes all potential dilutive shares of common stock if their effect is anti-dilutive. There were no potential dilutive securities at July 31, 2017, 2016 or 2015. |
Statutory Reserves [Policy Text Block] | Statutory Reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC ("PRC GAAP") at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, and ASU 2017-05, all of which clarify certain implementation guidance within ASU 2014-09. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. The standard can be adopted either retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company is currently in the process of analyzing the information necessary to determine the impact of adopting this new guidance on its financial position, results of operations, and cash flows. The Company will adopt the provisions of this statement in the first quarter of fiscal 2019, using the modified retrospective approach. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating sectionof the statement of cash flows. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. The amendments are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company is currently assessing this ASU’s impacts on the Company’s consolidated results of operations and financial condition. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements. |
NATURE OF OPERATIONS AND SUMM22
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Schedule of Variable Interest Entities [Table Text Block] | July 31, 2017 July 31, 2016 Total assets $ 13,070,348 $ 16,566,891 Total liabilities 8,498,122 7,944,737 For the year For the year For the year ended ended ended July 31, July 31, July 31, 2017 2016 2015 Revenues $ 9,502,952 $ 10,839,955 $ 20,772,028 Net income (loss) (4,124,909 ) (263,796 ) 165,029 |
Schedule of Useful Lives of Property, Plant and Equipment [Table Text Block] | Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicles 5 years |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | July 31, July 31, 2017 2016 Accounts receivable $ 2,614,927 $ 2,907,719 Less: allowance for doubtful accounts (1,472,296 ) (58,815 ) Accounts receivable, net $ 1,142,631 $ 2,848,904 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Inventories [Table Text Block] | July 31, July 31, 2017 2016 Raw materials and parts $ 801,437 $ 2,080,853 Work in process 54,924 - Finished goods 35,661 - Total 892,022 2,080,853 Less: allowance for inventory reserve (341,609 ) - Inventory, net $ 550,413 $ 2,080,853 |
COSTS IN EXCESS OF BILLINGS (Ta
COSTS IN EXCESS OF BILLINGS (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Costs in excess of billings [Table Text Block] | July 31, 2017 July 31, 2016 Costs in excess of billings on uncompleted contracts- related party $ 46,510 $ 710,652 Costs on contracts not yet recognized 2,870,392 - Costs in excess of billings $ 2,916,902 $ 710,652 Contracts accounted for under the percentage-of- completion method: Costs incurred on uncompleted contracts-related party $ 172,922 $ 853,787 Billings to date (126,412 ) (143,135 ) $ 46,510 $ 710,652 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Property, Plant and Equipment [Table Text Block] | July 31, July 31, 2017 2016 Machinery equipment $ 5,025,011 $ 4,951,227 Computer and office equipment 68,422 53,933 Vehicle 68,442 69,339 Total property, plant and equipment 5,161,875 5,074,499 Less: accumulated depreciation (831,542 ) (553,764 ) Total $ 4,330,333 $ 4,520,735 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Related Party Transactions [Table Text Block] | July 31, July 31, Due to related parties: 2017 2016 Advances due to Zhou Deng Rong $ 1,953,169 $ 1,190,370 Lease payable to Lucksky Group 399,652 280,304 Lease payable to Sanhe Dong Yi - 246,060 $ 2,352,821 $ 1,716,734 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2017 2016 2015 Federal $ - $ - $ - State - - - PRC 263,025 196,099 833,452 Total current 263,025 196,099 833,452 Federal - - - State - - - PRC (104,784 ) 30,583 83,388 Total deferred (104,784 ) 30,583 83,388 Provision for income tax $ 158,241 $ 226,682 $ 916,840 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2017 2016 2015 Statutory U.S. tax rate (34.0% ) (34.0% ) 34.0% Effect of PRC Statutory Tax Rate 9.0% 9.0% (9.0% ) Less: Valuation Allowance (27.5% ) (52.0% ) 22.4% Deferred Tax Expense 2.4% 8.0% 5.3% Nondeductible and nontaxable items (1.3% ) 24.4% 5.5% Tax expense 3.6% 59.4% 58.2% |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2017 2016 Deferred tax assets: Net operating loss carry forwards $ 854,000 $ 470,200 Accounts receivable allowance 348,800 15,000 Impairment charges 435,400 - Accrued liabilities 148,600 168,000 Warranty and other 19,300 1,700 Deferred tax assets before valuation allowance 1,806,100 654,900 Less: valuation allowance (1,806,100 ) (654,900 ) Net deferred income tax assets - - Deferred tax liability Temporary differences of revenue recognition - (107,609 ) Net deferred tax assets (liabilities) $ - $ (107,609 ) |
COMMITMENTS, CONTINGENCIES, R29
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Commitments, Contingencies, Risks and Uncertainties [Table Text Block] | Year ending July 31, 2018 $ 205,563 Year ending July 31, 2019 122,970 Year ending July 31, 2020 122,970 Year ending July 31, 2021 122,970 Thereafter 338,167 Total $ 912,640 |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Payments Due By Year After Total 2018 2019 2020 2021 2021 Capital commitments to acquire inventory Purchase obligations $ 16,113,770 $ 16,113,770 $ - $ - $ - $ - Operating leases 912,640 205,563 122,970 122,970 122,970 338,167 Due to directors 500,247 500,247 - - - - Due to related parties 2,352,821 2,352,821 - - - - Consulting agreements 423,186 228,186 180,000 15,000 - - Total $ 20,302,664 $ 19,400,587 $ 302,970 $ 137,970 $ 122,970 $ 338,167 |
QUARTERLY UNAUDUTED RESULTS (Ta
QUARTERLY UNAUDUTED RESULTS (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Condensed Income Statement [Table Text Block] | 2017 2016 (in thousands, except per share information) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net revenue $ 87 $ 966 $ 3,277 $ 5,191 $ 66 $ 3 $ 8,940 $ 1,831 Gross profit $ 15 $ 132 $ 512 $ 319 $ 5 $ 1 $ 983 $ 208 Net income (loss) $ (651 ) $ (321 ) $ (109 ) $ (3,483 ) $ (212 ) $ (226 ) $ 279 $ (449 ) Net income (loss) per share, basic and diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) |
NATURE OF OPERATIONS (Narrative
NATURE OF OPERATIONS (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 25, 2014 | Jul. 31, 2016 | Jul. 31, 2017 | May 15, 2012 | |
Shares issued | 591,042,000 | 591,042,000 | ||
Percentage of Common Stock Issued and Outstanding | 51.40% | |||
Mr. Zhou Jian [Member] | ||||
Equity Method Investment Ownership Percentage | 97.00% | |||
Stock Issued During Period, Shares, Acquisitions | 264,850,740 | |||
Mr. Zhou Deng Rong [Member] | ||||
Equity Method Investment Ownership Percentage | 3.00% | |||
Stock Issued During Period, Shares, Acquisitions | 8,191,260 | |||
Luck Sky International Investment Holding Limited [Member] | ||||
Ownership Percentage | 90.00% | |||
Shares issued | 7,200,000 | |||
Shares Purchased Value | $ 235,000 |
NATURE OF OPERATIONS AND SUMM32
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Jul. 25, 2014shares | Jul. 31, 2017USD ($)shares | Apr. 30, 2017USD ($) | Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jul. 31, 2016USD ($)shares | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2017USD ($)shares | Jul. 31, 2016USD ($)shares | Jul. 31, 2015USD ($) | May 15, 2012USD ($)shares | |
Common stock, shares outstanding | shares | 591,042,000 | 591,042,000 | 591,042,000 | 591,042,000 | |||||||||
Net loss | $ 3,483,000 | $ 109,000 | $ 321,000 | $ 651,000 | $ 449,000 | $ (279,000) | $ 226,000 | $ 212,000 | $ 4,564,159 | $ 608,184 | $ (657,460) | ||
Working capital deficit | 2,404,635 | 2,404,635 | |||||||||||
Percentage of Common Stock Issued and Outstanding | 51.40% | ||||||||||||
Allowance for doubtful accounts | 1,472,296 | 58,815 | 1,472,296 | $ 58,815 | |||||||||
Allowance for inventory reserves | 341,609 | 0 | 341,609 | 0 | |||||||||
Provision for warranty reserve | $ 65,833 | 0 | 0 | ||||||||||
Value added tax, percent | 17.00% | ||||||||||||
Foreign currency translation adjustment | $ (180,921) | (694,964) | $ 7,492 | ||||||||||
One customer [Member] | |||||||||||||
Concentration risk, percentage of revenue | 12.00% | ||||||||||||
Binzhou Xintuo customers [Member] | |||||||||||||
Concentration risk, percentage of revenue | 84.00% | ||||||||||||
Foreign Tax Authority [Member] | |||||||||||||
Statutory Surplus Reserve Fund Percentage | 10.00% | ||||||||||||
Registered Capital Appropriation Percentage | 50.00% | ||||||||||||
CHINA [Member] | |||||||||||||
Statutory Surplus Reserve Fund Percentage | 10.00% | ||||||||||||
Registered Capital Appropriation Percentage | 50.00% | ||||||||||||
Amounts held in Renminbi (RMB) [Member] | |||||||||||||
Cash | $ 1,154,188 | $ 1,202,049 | $ 1,154,188 | 1,202,049 | |||||||||
Percentage-of Completion Method [Member] | |||||||||||||
Gross Revenue Recognized | 405,077 | 874,510 | |||||||||||
Completed-Contract Method [Member] | |||||||||||||
Gross Revenue Recognized | 6,894,866 | $ 9,997,256 | $ 20,772,028 | ||||||||||
Inventory sales [Member] | |||||||||||||
Gross Revenue Recognized | $ 2,177,783 | ||||||||||||
Subsidiaries in PRC [Member] | |||||||||||||
Foreign Currency Exchange Rate, Translation | 6.7240 | 6.6371 | 6.7240 | 6.6371 | 6.2097 | ||||||||
Foreign Currency Weighted Average Exchange Rate, Translation | 6.8160 | 6.4798 | 6.8160 | 6.4798 | 6.1884 | ||||||||
Subsidiaries in Hong Kong [Member] | |||||||||||||
Foreign Currency Exchange Rate, Translation | 7.8100 | 7.7588 | 7.8100 | 7.7588 | 7.7514 | ||||||||
Foreign Currency Weighted Average Exchange Rate, Translation | 7.7696 | 7.7595 | 7.7696 | 7.7595 | 7.7536 | ||||||||
Mr. Zhou Jian [Member] | |||||||||||||
Equity Method Investment Ownership Percentage | 97.00% | ||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 264,850,740 | ||||||||||||
Mr. Zhou Deng Rong [Member] | |||||||||||||
Equity Method Investment Ownership Percentage | 3.00% | ||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 8,191,260 | ||||||||||||
Xianning Lucksky Aerodynamic Electricity Ltd [Member] | |||||||||||||
Concentration risk, percentage of revenue | 71.00% | 80.00% | |||||||||||
Concentration risk, percentage of accounts receivable | 88.00% | 49.00% | |||||||||||
Luck Sky International Investment Holding Limited [Member] | |||||||||||||
Ownership Percentage | 90.00% | ||||||||||||
Common stock, shares outstanding | shares | 7,200,000 | ||||||||||||
Shares Purchased Value | $ 235,000 |
ACCOUNTS RECEIVABLE (Narrative)
ACCOUNTS RECEIVABLE (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Allowance for doubtful accounts | $ 1,395,152 | $ 60,242 | $ 0 |
COSTS IN EXCESS OF BILLINGS (Na
COSTS IN EXCESS OF BILLINGS (Narrative) (Details) | Jul. 31, 2017USD ($) |
Inventory delivered in advance of revenue recognition | $ 2,870,392 |
PROPERTY, PLANT AND EQUIPMENT35
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Depreciation | $ 281,722 | $ 266,773 | $ 414,623 |
Deposit for property, plant and equipment | 2,080,436 | 178,617 | |
General and Administrative Expense [Member] | |||
Depreciation | 259,232 | 65,107 | 162,150 |
Cost of Sales [Member] | |||
Depreciation | $ 22,490 | $ 201,666 | $ 252,473 |
ADVANCES TO SUPPLIERS (Narrativ
ADVANCES TO SUPPLIERS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Advances to suppliers | $ 1,168,867 | $ 4,594,299 | |
Impairment of advances to suppliers | $ 1,404,565 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) | 12 Months Ended | |||
Jul. 31, 2017USD ($) | Jul. 31, 2017CNY (¥) | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | |
Costs in Excess of Billings | $ 2,916,902 | $ 710,652 | ||
Sanhe Dong Yi Glass Machine Company Limited [Member] | ||||
Accrued Rent, Current | 0 | 246,060 | ||
Rent Expense | 211,701 | $ 51,307 | ||
Directors [Member] | ||||
Due to Related Parties, Noncurrent | $ 500,247 | 414,876 | ||
Zhou Deng Rong [Member] | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 95.00% | |||
LuckSky Group [Member] | ||||
Accrued Rent, Current | $ 399,652 | 280,304 | ||
Rent Expense | 125,930 | $ 127,835 | $ 33,253 | |
Sanhe Keilitai [Member] | ||||
Construction Revenue | 170,588 | |||
Contract Revenue Cost | 147,466 | |||
Costs in Excess of Billings | 46,510 | |||
Office And Factory [Member] | ||||
Payments for Rent | 105,053 | ¥ 697,248 | ||
Dormitory [Member] | ||||
Payments for Rent | 19,527 | 129,600 | ||
Agricultural Land [Member] | ||||
Payments for Rent | $ 5,200 | ¥ 34,510 |
SIGNIFICANT CUSTOMER, FORMER 38
SIGNIFICANT CUSTOMER, FORMER RELATED PARTY (Narrative) (Details) | 12 Months Ended | ||||
Jul. 31, 2017USD ($) | Jul. 31, 2017CNY (¥) | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Apr. 09, 2014 | |
Revenues from a significant customer | $ 6,798,985 | $ 8,705,527 | $ 0 | ||
Xianning Xiangtian [Member] | |||||
Payments for Rent | 83,132 | ¥ 555,360 | |||
Rent Expense | 81,480 | ||||
Xianning Lucksky Aerodynamic Electricity [Member] | |||||
Revenues from a significant customer | $ 6,800,000 | $ 8,700,000 | $ 0 | ||
Zhou Deng Rong [Member] | Xianning Lucksky Aerodynamic Electricity [Member] | |||||
Equity Method Investment Ownership Percentage | 70.00% | ||||
Zhou Jian [Member] | Xianning Lucksky Aerodynamic Electricity [Member] | |||||
Equity Method Investment Ownership Percentage | 30.00% |
EMPLOYEE BENEFITS GOVERNMENT 39
EMPLOYEE BENEFITS GOVERNMENT PLAN (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 126,409 | $ 92,134 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - Jul. 31, 2017 | USD ($) | CNY (¥) |
Operating Loss Carryforwards | $ 2,194,000 | |
Luck Sky Shenzhen [Member] | ||
Operating Loss Carryforwards | $ 432,000 | ¥ 2,943,000 |
COMMITMENTS, CONTINGENCIES, R41
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 24, 2015 | Sep. 23, 2013 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Operating lease payable, amount not due to a related party | $ 83,132 | ||||
Operating Leases, Rent Expense, Net | 212,610 | $ 127,835 | $ 344,736 | ||
Principal obligations and commitments | 19,927,664 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 67,000,000 | ||||
Sale of Stock, Price Per Share | $ 0.001 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 67,000 | ||||
Earnings Per Share, Diluted | $ 0 | $ 0 | |||
Chief Financial Officer [Member] | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 60,000,000 | ||||
Sale of Stock, Price Per Share | $ 0.001 | ||||
Non-Related Parties [Member] | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 7,000,000 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 7,000,000 | ||||
Included in current liabilities [Member] | |||||
Principal obligations and commitments | $ 2,853,068 |
Schedule of Variable Interest E
Schedule of Variable Interest Entities (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Total assets | $ 13,070,348 | $ 16,566,891 | |
Total liabilities | 8,498,122 | 7,944,737 | |
Revenues | 9,502,952 | 10,839,955 | $ 20,772,028 |
Net loss | $ (4,124,909) | $ (263,796) | $ 165,029 |
Schedule of Useful Lives of Pro
Schedule of Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Jul. 31, 2017 | |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Computer And Office Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Schedule of Accounts, Notes, Lo
Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) | Jul. 31, 2017 | Jul. 31, 2016 |
Accounts receivable | $ 2,614,927 | $ 2,907,719 |
Less: allowance for doubtful accounts | (1,472,296) | (58,815) |
Accounts receivable, net | $ 1,142,631 | $ 2,848,904 |
Inventories (Details)
Inventories (Details) - USD ($) | Jul. 31, 2017 | Jul. 31, 2016 |
Raw materials and parts | $ 801,437 | $ 2,080,853 |
Work in process | 54,924 | 0 |
Finished goods | 35,661 | 0 |
Total | 892,022 | 2,080,853 |
Less: allowance for inventory | (341,609) | 0 |
Inventories | $ 550,413 | $ 2,080,853 |
Costs in excess of billings (De
Costs in excess of billings (Details) - USD ($) | Jul. 31, 2017 | Jul. 31, 2016 |
Costs in excess of billings on uncompleted contracts- related party | $ 46,510 | $ 710,652 |
Costs on contracts not yet recognized | 2,870,392 | 0 |
Costs in excess of billings | 2,916,902 | 710,652 |
Percentage-of Completion Method [Member] | ||
Costs incurred on uncompleted contracts-related party | 172,922 | 853,787 |
Billings to date | (126,412) | (143,135) |
Costs in excess of billings | $ 46,510 | $ 710,652 |
Property, Plant and Equipment47
Property, Plant and Equipment (Details) - USD ($) | Jul. 31, 2017 | Jul. 31, 2016 |
Total property, plant and equipment | $ 5,161,875 | $ 5,074,499 |
Less: accumulated depreciation | (831,542) | (553,764) |
Total | 4,330,333 | 4,520,735 |
Machinery and Equipment [Member] | ||
Total property, plant and equipment | 5,025,011 | 4,951,227 |
Computer And Office Equipment [Member] | ||
Total property, plant and equipment | 68,422 | 53,933 |
Vehicles [Member] | ||
Total property, plant and equipment | $ 68,442 | $ 69,339 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Due to related parties | $ 2,352,821 | $ 1,716,734 |
LuckSky Group [Member] | ||
Lease payable | 399,652 | 280,304 |
Sanhe Dong Yi Glass Machine Company Limited [Member] | ||
Lease payable | 0 | 246,060 |
Zhou Deng Rong [Member] | ||
Due to related parties | $ 1,953,169 | $ 1,190,370 |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Current Federal Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Current State and Local Tax Expense (Benefit) | 0 | 0 | 0 |
Current Foreign Tax Expense (Benefit) | 263,025 | 196,099 | 833,452 |
Total current | 263,025 | 196,099 | 833,452 |
Deferred Federal Income Tax Expense (Benefit) | 0 | 0 | 0 |
Deferred State and Local Income Tax Expense (Benefit) | 0 | 0 | 0 |
Deferred Foreign Income Tax Expense (Benefit) | (104,784) | 30,583 | 83,388 |
Total deferred | (104,784) | 30,583 | 83,388 |
Provision for income tax | $ 158,241 | $ 226,682 | $ 916,840 |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Statutory U.S. tax rate | (34.00%) | (34.00%) | 34.00% |
Effect of PRC Statutory Tax Rate | 9.00% | 9.00% | (9.00%) |
Less: Valuation Allowance | (27.50%) | (52.00%) | 22.40% |
Deferred Tax Expense | 2.40% | 8.00% | 5.30% |
Nondeductible and nontaxable items | (1.30%) | 24.40% | 5.50% |
Tax expense | 3.60% | 59.40% | 58.20% |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Jul. 31, 2017 | Jul. 31, 2016 |
Net operating loss carry forwards | $ 854,000 | $ 470,200 |
Accounts receivable allowance | 348,800 | 15,000 |
Impairment charges | 435,400 | 0 |
Accrued liabilities | 148,600 | 168,000 |
Warranty and other | 19,300 | 1,700 |
Deferred tax assets before valuation allowance | 1,806,100 | 654,900 |
Less: valuation allowance | (1,806,100) | (654,900) |
Deferred tax assets, net | 0 | 0 |
Temporary differences of revenue recognition | 0 | (107,609) |
Total deferred tax liabilities | $ 0 | $ (107,609) |
Commitments, Contingencies, R52
Commitments, Contingencies, Risks and Uncertainties (Details) | Jul. 31, 2017USD ($) |
Year ending July 31, 2018 | $ 205,563 |
Year ending July 31, 2019 | 122,970 |
Year ending July 31, 2020 | 122,970 |
Year ending July 31, 2021 | 122,970 |
After 2,021 | 338,167 |
Total | $ 912,640 |
Contractual Obligation, Fiscal
Contractual Obligation, Fiscal Year Maturity Schedule (Details) | Jul. 31, 2017USD ($) |
Purchase Obligation | $ 16,113,770 |
Purchase Obligation, Due in Next Twelve Months | 16,113,770 |
Purchase Obligation, Due in Second Year | 0 |
Purchase Obligation, Due in Third Year | 0 |
Purchase Obligation, Due in Fourth Year | 0 |
Purchase obligation due after fourth year | 0 |
Operating Leases, Future Minimum Payments Due | 912,640 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 205,563 |
Operating Leases, Future Minimum Payments, Due in Two Years | 122,970 |
Operating Leases, Future Minimum Payments, Due in Three Years | 122,970 |
Operating Leases, Future Minimum Payments, Due in Four Years | 122,970 |
Operating Leases, Future Minimum Payments, Due After Four Years | 338,167 |
Contractual Obligation | 20,302,664 |
Contractual Obligation, Due in Next Fiscal Year | 19,400,587 |
Contractual Obligation, Due in Second Year | 302,970 |
Contractual Obligation, Due in Third Year | 137,970 |
Contractual Obligation, Due in Fourth Year | 122,970 |
Contractual Obligation, Due after Four Years | 338,167 |
Due to directors [Member] | |
Other Commitment | 500,247 |
Other Commitment, Due in Next Twelve Months | 500,247 |
Other Commitment, Due in Second Year | 0 |
Other Commitment, Due in Third Year | 0 |
Other Commitment, Due in Fourth Year | 0 |
Other Commitment, Due after Four Years | 0 |
Due to related parties [Member] | |
Other Commitment | 2,352,821 |
Other Commitment, Due in Next Twelve Months | 2,352,821 |
Other Commitment, Due in Second Year | 0 |
Other Commitment, Due in Third Year | 0 |
Other Commitment, Due in Fourth Year | 0 |
Other Commitment, Due after Four Years | 0 |
Consulting agreements [Member] | |
Other Commitment | 423,186 |
Other Commitment, Due in Next Twelve Months | 228,186 |
Other Commitment, Due in Second Year | 180,000 |
Other Commitment, Due in Third Year | 15,000 |
Other Commitment, Due in Fourth Year | 0 |
Other Commitment, Due after Four Years | $ 0 |
Condensed Income Statement (Det
Condensed Income Statement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Net revenue | $ 5,191,000 | $ 3,277,000 | $ 966,000 | $ 87,000 | $ 1,831,000 | $ 8,940,000 | $ 3,000 | $ 66,000 | $ 9,521,371 | $ 10,839,955 | $ 20,772,028 |
Gross profit | 319,000 | 512,000 | 132,000 | 15,000 | 208,000 | 983,000 | 1,000 | 5,000 | 978,164 | 1,197,152 | 2,991,017 |
Net income (loss) | $ (3,483,000) | $ (109,000) | $ (321,000) | $ (651,000) | $ (449,000) | $ 279,000 | $ (226,000) | $ (212,000) | $ (4,564,159) | $ (608,184) | $ 657,460 |
Net income (loss) per share, basic and diluted | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 |