Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Apr. 30, 2021 | Jun. 14, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Hartford Great Health Corp. | |
Entity Central Index Key | 0001482554 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100,108,000 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 64,585 | $ 36,604 |
Prepaid and other current receivables | 274,623 | 173,819 |
Related party receivables | 30,277 | 753,076 |
Inventories | 323,194 | |
Total Current Assets | 692,679 | 963,499 |
Non-Current Assets | ||
Restricted cash, noncurrent | 26,515 | 28,673 |
Property and equipment, net | 586,483 | 467,881 |
Goodwill | 71,629 | |
ROU assets-operating lease | 5,146,679 | 4,499,693 |
Other assets | 377,614 | 329,235 |
Total Non-current Assets | 6,208,920 | 5,325,482 |
TOTAL ASSETS | 6,901,599 | 6,288,981 |
Current Liabilities | ||
Related party loan and payables | 3,831,330 | 2,966,651 |
Current operating lease liabilities | 1,051,972 | 739,352 |
Other current payable | 1,339,589 | 617,119 |
Total Current Liabilities | 6,222,891 | 4,323,122 |
Long-term loan from related party | 649,677 | |
Lease liabilities, noncurrent | 4,699,657 | 4,253,050 |
TOTAL LIABILITIES | 11,572,225 | 8,576,172 |
Commitments and contingencies (Note 15) | ||
Stockholders' Equity | ||
Preferred stock - $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock - $0.001 par value, 300,000,000 shares authorized, 100,108,000 and 99,108,000 shares issued and outstanding as of April 30, 2021 and July 31, 2020, respectively | 100,108 | 99,108 |
Additional paid-in capital | 2,173,521 | 2,154,521 |
Accumulated deficit | (5,205,412) | (3,568,185) |
Accumulated other comprehensive loss | (220,456) | (55,146) |
Noncontrolling interest | (1,518,387) | (917,489) |
Total Stockholders' Deficit | (4,670,626) | (2,287,191) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,901,599 | $ 6,288,981 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2021 | Jul. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 100,108,000 | 99,108,000 |
Common stock, shares outstanding | 100,108,000 | 99,108,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Statement [Abstract] | ||||
Service revenues | $ 137,892 | $ 10,310 | $ 320,204 | $ 66,219 |
Cost of revenues | 99,998 | 4,329 | 219,276 | 43,366 |
Gross Profit | 37,894 | 5,981 | 100,928 | 22,853 |
Operating expenses | ||||
Depreciation and amortization | 26,039 | 9,209 | 60,662 | 28,441 |
Selling, general and administrative | 598,813 | 411,396 | 2,253,785 | 1,306,674 |
Goodwill impairment | 991,803 | |||
Total Operating Expenses | 624,852 | 420,605 | 2,314,447 | 2,326,918 |
Operating Loss | (586,958) | (414,624) | (2,213,519) | (2,304,065) |
Other Income (Expense) | ||||
Interest (expense) income, net | (11,747) | 3,853 | (15,574) | 11,838 |
Gain on disposal of subsidiary | 104,317 | |||
Other income (expense), net | 256 | 135 | 1,829 | (115) |
Other (Expense) Income, Net | (11,491) | 3,988 | 90,572 | 11,723 |
Loss before income taxes | (598,449) | (410,636) | (2,122,947) | (2,292,342) |
Income Tax Expense | 800 | 800 | ||
Net Loss | (598,449) | (410,636) | (2,123,747) | (2,293,142) |
Less: net loss attributable to noncontrolling Interest | (130,040) | (108,680) | (486,520) | (506,697) |
Net Loss Attributable to Hartford Great Health Corp | $ (468,409) | $ (301,956) | $ (1,637,227) | $ (1,786,445) |
Net loss per common share: Basic and Diluted | $ 0 | $ 0 | $ (0.02) | $ (0.02) |
Weighted average shares outstanding: Basic and diluted | 100,108,000 | 99,108,000 | 99,683,092 | 99,108,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Consolidated Statements Of Comprehensive Income Loss | ||||
Net Loss | $ (468,409) | $ (301,956) | $ (1,637,227) | $ (1,786,445) |
Other Comprehensive Income (Loss), Net of income tax | ||||
Foreign currency translation adjustments | 31,991 | 10,890 | (217,590) | (50,336) |
Total other comprehensive income (loss) | 31,991 | 10,890 | (217,590) | (50,336) |
Less: total other comprehensive income (loss) attributable to noncontrolling interest | 8,731 | 3,143 | (52,280) | (14,528) |
Total Other Comprehensive Income (Loss) Attributable to Hartford Great Health Corp | 23,260 | 7,747 | (165,310) | (35,808) |
Total Comprehensive Loss | $ (445,149) | $ (294,209) | $ (1,802,537) | $ (1,822,253) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated (Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] | Total |
Beginning Balance at Jul. 31, 2019 | $ 99,108 | $ 2,154,521 | $ (916,816) | $ (6,392) | $ (81,141) | $ 1,249,280 |
Beginning Balance, shares at Jul. 31, 2019 | 99,108,000 | |||||
Net (loss) | (1,786,445) | (506,697) | (2,293,142) | |||
Disposal of noncontrolling interest | (15,583) | (15,583) | ||||
Contribution from noncontrolling interest | 7,106 | 7,106 | ||||
Foreign currency translation adjustment | (35,808) | (14,528) | (50,336) | |||
Ending Balance at Apr. 30, 2020 | $ 99,108 | 2,154,521 | (2,703,261) | (42,200) | (610,843) | (1,102,675) |
Ending Balance, shares at Apr. 30, 2020 | 99,108,000 | |||||
Beginning Balance at Jul. 31, 2020 | $ 99,108 | 2,154,521 | (3,568,185) | (55,146) | (917,489) | (2,287,191) |
Beginning Balance, shares at Jul. 31, 2020 | 99,108,000 | |||||
Net (loss) | (1,637,227) | (486,520) | (2,123,747) | |||
Issuance of common stock | $ 1,000 | 19,000 | 20,000 | |||
Issuance of common stock, shares | 1,000,000 | |||||
Disposal of subsidiary | (62,098) | (62,098) | ||||
Foreign currency translation adjustment | (165,310) | (52,280) | (217,590) | |||
Ending Balance at Apr. 30, 2021 | $ 100,108 | $ 2,173,521 | $ (5,205,412) | $ (220,456) | $ (1,518,387) | $ (4,670,626) |
Ending Balance, shares at Apr. 30, 2021 | 100,108,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss including noncontrolling interests | $ (2,123,747) | $ (2,293,142) |
Adjustments to reconcile net loss including noncontrolling interests to net cash (used in) operating activities: | ||
Depreciation and amortization | 60,662 | 28,441 |
Disposal of subsidiary, excluding noncontrolling interest | (43,505) | |
Disposal of noncontrolling interest | (60,812) | (4,964) |
Loss on disposal of property and equipment | 755 | 6,640 |
Goodwill impairment | 991,803 | |
Changes in operating assets and liabilities: | ||
Prepaid and Other current receivables | (75,917) | 196,907 |
Inventories | (297,558) | |
Other assets | (45,456) | (35,251) |
Related party receivables and payables | 26,308 | 74,011 |
Other current payables | 572,873 | 340,060 |
Operating lease assets and liabilities | 74,147 | 81,335 |
Other liabilities | 20,193 | (1,868) |
Net cash (used in) operating activities | (1,892,057) | (619,385) |
Cash flows from investing activities: | ||
Cash proceeds from acquisitions | 27,738 | |
Cash paid in acquisitions | (15,103) | |
Disposal of subsidiary | (30,116) | |
Purchases of property and equipment | (137,516) | (227,795) |
Net cash (used in) investing activities | (154,997) | (227,795) |
Cash flows from financing activities: | ||
Contribution from noncontrolling interest | 7,080 | |
Proceeds from issuance of common stock | 20,000 | |
Proceeds of related party notes payable | 125,000 | |
Principal payments on finance lease | (21,900) | (19,824) |
Advances from related parties | 1,941,842 | 621,421 |
Net cash provided by financing activities | 2,064,942 | 608,677 |
Effect of exchange rate changes on cash | 7,935 | (3,229) |
Net change in Cash, cash equivalents and restricted cash | 25,823 | (241,732) |
Cash, cash equivalents and restricted cash at beginning of period | 65,277 | 298,724 |
Cash, cash equivalents and restricted cash at end of period | 91,100 | 56,992 |
Supplemental Cash Flow Information | ||
Interest paid | ||
Income taxes paid | 800 | 800 |
Non-cash investing and financing activities: | ||
Payable to acquiree | 10,462 | |
Investment return through three-party settlement | $ 759,947 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. The financial statements and notes are the responsibility of the Company’s management. These accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied in the preparation of the financial statements. This disclosure should be read in conjunction with our audited financial statements for the year ended July 31, 2020, including footnotes, contained in our Annual Report on Form 10-K, Organization Hartford Great Health Corp. was originally incorporated in the State of Nevada on April 2, 2008 under the name PhotoAmigo, Inc. It changed its name to Hartford Great Health Corp. on August 22, 2018 and since then we have been engaged in activities to formulate and implement our business plans. Through its wholly owned subsidiary - Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF) and HZHF’s 60 percent owned subsidiary - Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”), and through Shanghai Hartford Comprehensive Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), the Company engages in hospitality industry in China. Qiao Garden Int’l Travel was disposed on December 31, 2020, see note 4 Acquisitions, Joint Ventures and Deconsolidation. The Company started to engage in early childhood education industry at Hartford International Education Technology Co., Ltd (“HF Int’l Education”), a 75.5% ownership subsidiary of HFSH on March 2019. On July 24, 2019 and March 23, 2020, HF Int’l Education established two 100% owned subsidiaries, Pudong Haojin Childhood Education Ltd. (“PDHJ”) and Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd.(“HDFD”), respectively, to operate the early childhood education service under the brand name of “HaiDeFuDe” in Shanghai, China. On July 20, 2020, HF Int’l Education entered an agreement with two individuals to acquire the whole ownership of Shanghai Gelinke Childcare Education Center (“Gelinke”). Basis of Presentation The consolidated financial statements include the accounts of Hartford Great Health Corp, its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests of the consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in the consolidation. The Company’s net income (loss) excludes income (loss) attributable to the noncontrolling interests. Use of Estimates The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain amounts on the prior-year consolidated balance sheet, consolidated statement of operations and cash flows were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity. Income Taxes: On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included in the gross income of the CFCs’ U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company’s subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years and zero amount of tax provisions, including GILTI. Deferred tax assets as of the reporting periods ended were fully reserved for valuation allowance as they are more likely than not to be realized. Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606) on August 1, 2018, applying the modified retrospective method to all contracts that were not completed as of August 1, 2018. The Company is building up its core business upon the completion of multiple acquisitions on March 2019 and impact of COVID-19 pandemic, limited operations occurred during the three months and nine months ended April 30, 2021 and 2020. The revenue during the three months and nine months ended April 30, 2021 and 2020, were mainly generated from HZLJ and HF Int’l Education and their subsidiaries. Revenue is recognized when control of promised goods or services is transferred to our customers in an amount of consideration to which we expect to be entitled to in exchange for those goods or services. We follow the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy a performance obligation.. Billings to customers for which services are not rendered are considered deferred revenue. ASC 606 has no material impacts on the Company’s financial positions. The Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products or providing services to a customer. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company recorded unearned revenue, amount of $431,326 and $75,861 as of April 30, 2021 and July 31, 2020, respectively. a. Early childhood education services: HF Int’l Education generates revenue from childhood education classes provided to its customers. The educational services consist of parent-child and bilingual childcare classes. Each contract of educational classes is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fee is generally collected in advance and is initially recorded as deferred revenue. Refunds are provided to parents if they decide within the trial period that they no longer want to take the class. After the trial period, if a parent withdraws from a class, usually only that unearned portion of the fee is available to be returned. b. Hospitality services: HZLJ generates revenue primarily from the room rentals, sale of food and beverage and other miscellaneous hospitality services. The Company recognizes room rental and services daily as services are provided. Under ASC 606, the pattern and timing of recognition of income from hotel facility is consistent with the prior accounting model. Recent Accounting Pronouncements. Recently adopted accounting pronouncements In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company early adopted ASU No. 2017-04 on January 31, 2020. Management determined the goodwill generated from HZLJ and HFSH acquisition was fully impaired as of January 31, 2020. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. ASU No. 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous guidance. The accounting for finance leases (capital leases) was substantially unchanged. The original guidance required application on a modified retrospective basis with adjustments to the earliest comparative period presented. In August 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements to ASC 842,” which included an option to not restate comparative periods in transition and elect to use the effective date of ASU No. 2016-02 as the date of initial application, which the Company elected. As a result, the consolidated balance sheet prior to August 1, 2019 was not restated, and continues to be reported under previous guidance that did not require the recognition of operating lease liabilities and corresponding lease assets on the consolidated balance sheet. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at August 1, 2019 for the adoption of the new lease standard was as follows: Balance at Balance at July 31, 2019 Adjustments August 1, 2019 Assets: Prepaid and Other current receivables 386,700 (74,197 ) 312,503 ROU assets-Operating lease — 4,185,827 4,185,827 Liabilities: Current Operating Lease liabilities — 651,424 651,424 Operating lease liabilities — 3,481,229 3,481,229 The adoption of ASU No. 2016-02 had an immaterial impact on the Company’s consolidated statement of operation and consolidated statement of cash flows for the year ended July 31, 2020. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical lease classification, not reassess prior conclusions related to expired or existing contracts that are or that contain leases, and not reassess the accounting for initial direct costs. Operating leases with a term of 12 months or less will not be recorded on the Consolidated Balance Sheet. Additional information and disclosures required by ASU No. 2016-02 are contained in Note 12 Leases. Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”. The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which is intended to simplify various aspects related to accounting for income taxes. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions in which the reference LIBOR or another reference rate are expected to be discontinued as a result of the Reference Rate Reform. The standard is effective for all entities. The standard may be adopted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. |
Going Concern
Going Concern | 9 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 2. GOING CONCERN The accompanying financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. However, Hartford Great Health Corp. has incurred losses since inception, resulting in an accumulated deficit of $5,205,412 as of April 30, 2021. These conditions raise substantial doubt about the ability of Hartford Great Health Corp. to continue as a going concern. In view of these matters, continuation as a going concern is dependent upon several factors, including the availability of debt or equity funding upon terms and conditions acceptable to Hartford Great Health Corp., and ultimately achieving profitable operations. Management believes that Hartford Great Health Corp.’s business plan provides it with an opportunity to continue as a going concern. However, management cannot provide assurance that Hartford Great Health Corp. will meet its objectives and be able to continue in operation. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of Hartford Great Health Corp. to continue as a going concern. |
Restatements
Restatements | 9 Months Ended |
Apr. 30, 2021 | |
Restatements | |
Restatements | NOTE 3. RESTATEMENTS The Company has concluded that the Company’s previously reported unaudited consolidated statements of cash flows for the nine months ended April 30, 2020 incorrectly presented some funding support from related parties under operating activities, upon reflection and further analysis, which would be more accurate to be accounted for financing activities. Restated Consolidated Statement of Cash Flow (adjusted line items): For the nine months ended April 30, 2020 As previously reported As restated Changes Cash flows from operating activities: Related party receivables and payables 695,432 74,011 621,421 Net cash provided by (used in) operating activities 2,036 (619,385 ) 621,421 Cash flows from financing activities: Advances from related parties - 621,421 (621,421 ) Net cash (used in) provided by financing activities (12,744 ) 608,677 (621,421 ) |
Acquisitions, Joint Ventures an
Acquisitions, Joint Ventures and Deconsolidation | 9 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions, Joint Ventures and Deconsolidation | NOTE 4. ACQUISITIONS, JOINT VENTURES AND DECONSOLIDATION Joint Venture – HF Int’l Education On March 22, 2019, HFSH entered into a joint venture agreement (the “JV agreement”) with Shanghai Jingyu Education Tech Ltd. (“SH Jingyu”) and one individual investor, to form a new entity - HF Int’l Education to provide childcare education services. HFSH initially owned 65.0% ownership HF Int’l Education, which has been decreased to 61.0% from 65.0% during the year ended on July 31, 2020 because of equity transactions between noncontrolling shareholders. On June 19, 2020, the board of HF Int’l Education decided to increase registered capital to RMB10 million from RMB5 million, and three out of four noncontrolling shareholders gave up the subscription rights. As a result, HFSH holds 75.5% of HF Int’l Education and totaling 24.5% equity held by noncontrolling shareholders. The new equity structure became effective upon the approval of the local government on September 10, 2020. Operation result of HF Int’l Education are included in the Company’s consolidated financial statements commencing on the formation date. The Company classifies the ownership interest held by other four parties as “Noncontrolling interest” on the consolidated balance sheet. Acquisition of Gelinke On July 20, 2020, HF Int’l Education entered an agreement with two individuals to acquire the whole ownership of Shanghai Gelinke Childcare Education Center (“Gelinke”). The intent behind the acquisition is to expand the company’s early childhood education services. The results of operations of the acquired entities are included in the Company’s consolidated financial statements commencing on the acquisition date. The Company has recorded an allocation of purchase price to Gelinke’s tangible and identifiable intangible assets acquired and liabilities assumed based on their fair value at the acquisition date. The Company accounted the acquisition transaction in accordance with FASB ASC 805, Business Combinations, under acquisition accounting method. The related transaction costs were immaterial and included in General and administrative expenses in the accompanying consolidated statements of operations. The preliminary calculation of purchase price and purchase price allocation is as follows: Assets Acquired and Liabilities Assumed Cash and cash equivalents 1,809 Restricted Cash 25,009 Prepaid and Other current receivables 4,696 Property and Equipment, net 4,294 Unearned revenue (78,696 ) Goodwill 67,712 Total consideration* 24,824 *$10,462 (RMB70,000) payable to the acquiree plus $14,362 (RMB100,000) cash payment totaled $24,824 consideration for the acquisition. Goodwill is mainly attributable to synergies expected from the acquisition of license, list of customers and teacher workforce. Other Acquisitions In January and February 2019, HFSH entered agreements to acquire 85 percent ownership of Shanghai Senior Health Consulting Ltd. (“SH Senior”) and 55 percent ownership of Shanghai Pasadena Ltd. (“SH Pasadena”). On December 31, 2020, HFSH withdraw from the two acquisition agreements. No penalty results from the withdrawn. In January 2019, HFSH entered agreements to acquire 100 percent equity interest of Shanghai Luo Sheng International Trade Ltd. (“SH Luosheng”), As of April 30, 2021, the agreement has not yet taken effect as no consideration has been paid toward this acquisition. The agreement will be executed when the Company is financially ready to move forward, and the purchase price will be calculated based on the net assets of each entity on executing dates. There was no penalty levied or to be levied due to delayed execution or inexecution. On May and June 2019, the Company entered an agreement and a supplemental agreement to acquire 60 percent equity interest of Shanghai Ren Lai Ren Wang Restaurant Co., Ltd. (“SH RLRW”). The acquisition agreement has not yet taken effect as no consideration has been paid towards the acquisition. On June 12, 2020, the company withdraw from the acquisition by transferring the agreement to an individual with zero price. Disposal of subsidiary On December 31, 2020, HFSH disposed its 90 percent owned subsidiary - Qiao Garden Intel Travel to an individual (the “Disposal”). The individual is a relative of the CEO, Qiao Garden Int’l Travel became a related party after deconsolidation. The operation results, assets and liabilities, and cash flows of Qiao Garden Int’l Travel were deconsolidated from the Company’s consolidated financial statements effective on December 31, 2020. The Disposal of Qiao Garden was consummated through a three-party settlement among HFSH, SH Qiaohong and Qiao Garden Intl Travel (the “Three-Party Settlement”): the original investment RMB 4.5 million plus RMB 0.5 million investment income were agreed to returned from Qiao Garden Intel Travel result of the Disposal and settled with a payable due to SH Qiaohong at SHHF, who was a debtor of Qiao Garden Intel Travel, see Note 13, Related Party Transactions. Net assets (liabilities) disposed of: Net assets (liabilities) disposed of: Cash and cash equivalents 172 Restricted cash 29,944 Related party receivable 782,224 Related party payable (98,615 ) Other current payable (3,876 ) Noncontrolling interest (60,812 ) Net assets of the subsidiary, excluding noncontrolling interest 649,037 Consideration 753,354 Gain on disposal of the subsidiary (104,317 ) Gain on disposal of noncontrolling interest (60,812 ) Gain on disposal of the subsidiary, excluding noncontrolling interest (43,505 ) Net inflow / (outflow) of cash and cash equivalents in respect of the disposal subsidiary: Cash and cash equivalents (172 ) Restricted cash (29,944 ) Cash and cash equivalents deconsolidated (30,116 ) |
Restricted Cash
Restricted Cash | 9 Months Ended |
Apr. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | NOTE 5. RESTRICTED CASH The Company early adopted Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning of year and end of year total amounts shown on the statements of cash flows. The restricted cash is collateral required by the local government in China for business operation certificate Gelinke holds. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. April 30, 2021 (unaudited) April 30, 2020 (unaudited) Cash and cash equivalents $ 64,585 $ 28,567 Restricted cash, noncurrent 26,515 28,425 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 91,100 $ 56,992 |
Prepaid and Other Current Recei
Prepaid and Other Current Receivables | 9 Months Ended |
Apr. 30, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid and Other Current Receivables | NOTE 6. PREPAID AND OTHER CURRENT RECEIVABLES Prepaid and other current receivable amounts of $274,623 and $173,819 as of April 30, 2021 and July 31, 2020, respectively, mainly consist of advances for purchase and decoration project, prepaid rent, employee operating advances and others. |
Inventories
Inventories | 9 Months Ended |
Apr. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 7. INVENTORYIES Inventory mainly consists of books, the early childhood education materials. Inventory is stated at the lower of cost or net realizable value. As of April 30, 2021 and July 31, 2020, inventory balance was $323,194 and nil, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | NOTE 8. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following at April 30, 2021 and July 31, 2020: April 30, July 31, 2021 (unaudited) 2020 Leasehold improvements $ 199,099 $ 181,378 Finance lease assets 290,158 269,304 Furniture and fixtures 272,817 202,241 Office equipment and vehicles 161,220 112,759 Construction in progress 66,915 19,326 990,209 785,008 Less: accumulated depreciation and amortization (403,726 ) (317,127 ) $ 586,483 $ 467,881 Depreciation expense for the three months and nine months ended April 30, 2021 were $26,039 and $60,662, respectively. Depreciation expense for the three months and nine months ended April 30, 2020 were $3,935 and $12,511, respectively. |
Other Assets
Other Assets | 9 Months Ended |
Apr. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 9. OTHER ASSETS Other assets consist of the following at April 30, 2021 and July 31, 2020: April 30, 2021 July 31, 2020 Other miscellaneous assets $ 34,606 $ 40,265 Rental deposits 343,008 288,970 Deferred cost of finance lease - - $ 377,614 $ 329,235 During 2019 HZLJ acquisition, the cost of obtaining the finance lease of the land use rights and hotel building at HZLJ, in the amount of $879,800 (RMB 6 million) was recognized as Other Assets and subject for amortization over the remaining lease term, 41 years commenced on October 2010. The amortization is computed using the straight-line method over the remaining lease term. Amortization expenses of deferred cost of finance lease for the three months and nine months ended April 30, 2020 were $5,274 and $15,930, respectively. Given the impact of COVID-19 pandemic and the unfavorable operation results, management determined that the deferred cost of finance lease was fully impaired as of July 31, 2020 and $621,963 impairment cost was recorded for the year ended July 31, 2020. |
Other Current Payable
Other Current Payable | 9 Months Ended |
Apr. 30, 2021 | |
Payables and Accruals [Abstract] | |
Other Current Payable | NOTE 10. OTHER CURRENT PAYABLE The following is a breakdown of the accounts and other payables as of April 30, 2021 and July 31, 2020: April 30, 2021 July 31, 2020 Payable to acquirees $ 151,028 $ 130,138 Unearned revenue 431,326 75,861 Rental payables 385,647 252,154 Accrued payroll 90,443 48,534 Payable to publisher 139,020 - Other payables 142,125 110,432 $ 1,339,589 $ 617,119 Payable to acquirees is the unpaid consideration for the acquisitions during 2019 and 2020. Rental payable is accrued for unpaid rent. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 11. STOCKHOLDERS’ EQUITY On July 3, 2020, the Company entered a subscription agreement of 1,000,000 shares of common stock (the “Shares”) with a significant shareholder of the Company priced at $0.02 per share. $20,000 subscription was received, and the shares were issued on November 24, 2020. Given the trade volume and level of activities of HFUS stock in the market is very low, for which the market is considered inactive, therefore the quoted market price might not be the best indication of fair value pursuant to ASC 820-10-35, thus, management concluded that the Shares was issued at the fair market value. |
Leases
Leases | 9 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Leases | NOTE 12. LEASES At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. Leases are classified as either finance leases or operating leases based on criteria in Accounting Standards Codification (“ASC”) 842. Operating leases are included in ROU assets-Operating lease, Current Operating Lease liabilities and Operating lease liabilities, finance leases are included in Property and Equipment and Other Liabilities in the condensed Consolidated Balance Sheet. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the lease did not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in China market. ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset’s estimated useful life and interest expense is calculated using the amortized cost basis. As of April 30, 2021, the Company has multiple operating leases for office spaces and a finance lease of land and hotel building. Our operating leases have remaining lease terms ranging from two years to six years, with various term extensions available. Our finance lease has remaining lease term of thirty-one years. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of twelve months or less. On June 2018 and January 2019, HFSH and HF Int’l Education entered two lease agreements with Shanghai Longjin Corporate Management Co., Ltd (the “Sublessor”) to lease office spaces (the “Subleases”). HFSH and HF Int’l Education received Notices of Lease Termination from the Sublessor for late payments on April 13, 2020 and filed a civil lawsuit against the Sublessor on July 10, 2020 (see Note 15). And the original lease agreement entered between the Sublessor and the landlord of the office building (the “Landlord”) was terminated by the Landlord on June 1, 2020 due to payment default. The two sublease agreements entered with the Sublessor was terminated on June 1, 2020 and approximately $921,000 ROU and $891,000 lease liability associated with the two Subleases as of May 31, 2020 were eliminated and $29,000 other expenses was recognized as a result. HF Int’l Education entered a new lease agreement with the Landlord on June 1, 2020 for the same office spaces with a five-year term. On September 1, 2020, Gelinke entered a five-year new lease agreement at the same location upon the completion of the acquisition. Approximately $1.2 million ROU and lease liability, respectively, were recognized with the new lease at lease commencement date. HZHF terminated its original office lease on January 6, 2021. Approximately $287,000 ROU and $258,000 lease liability associated with the original lease agreement were eliminated. On January 9, 2021, HFHZ entered into a two-year new lease with smaller space at the same location. Approximately $49,000 ROU and lease liability, respectively, were recognized with the new lease at lease commencement date. The finance lease was obtained through HZLJ acquisition on March 22, 2019. On October 1, 2010, HZLJ took over the lease of the land and hotel building for 41 years. Finance lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease-related assets and liabilities on April 30, 2021 and July 31, 2020 were as follows: April 30, July 31, 2021 (unaudited) 2020 Assets Finance lease right-of-use assets, cost $ 290,158 $ 269,304 Less: accumulated amortization (74,899 ) (64,589 ) Finance lease right-of-use assets, net 215,259 204,715 ROU assets-Operating lease 5,146,679 4,499,693 Total Lease ROU assets $ 5,361,938 $ 4,704,408 Liabilities Current Operating Lease liabilities $ 1,051,972 $ 739,352 Operating lease liabilities, noncurrent 4,338,532 3,916,259 Finance lease liabilities, noncurrent 361,125 336,791 Total Lease liabilities $ 5,751,629 $ 4,992,402 The components of lease cost for the three months and nine months ended April 30, 2021 and 2020 were as follows: Three months ended April 30, Nine months ended April 30, 2021 (unaudited) 2020 (unaudited) 2021 (unaudited) 2020 (unaudited) Operating lease cost $ 356,715 $ 268,727 $ 1,047,066 $ 731,886 Finance leases: Amortization of ROU assets 1,744 1,582 5,308 4,884 Interest on finance lease liabilities 6,785 6,065 20,652 18,733 Finance lease cost 8,529 7,647 25,960 23,617 Total lease cost $ 365,244 $ 276,374 $ 1,073,026 $ 755,503 Supplemental cash flow information for leases for the nine months ended April 30, 2021 and 2020 was as follows: Nine months ended April 30, 2021 (unaudited) 2020 (unaudited) Operating cash flows paid for operating leases $ 773,347 $ 357,617 Financing cash flows paid for finance leases 21,900 19,824 The weighted-average remaining lease term and weighted-average discount rate for operating and finance leases at April 30, 2021 was as follows: Operating Leases Finance Leases Weighted-average remaining lease term (years) 4.3 30.3 Weighted-average discount rate 8 % 8 % The following table reconciles the undiscounted future minimum lease payments for operating and finance leases executed at April 30, 2021: Operating Leases Finance Leases 2021 (excluding the nine-month ended April 30, 2020) $ 330,710 $ - 2022 1,513,819 23,170 2023 1,465,987 23,942 2024 1,532,968 24,715 2025 1,446,236 25,487 2026 and thereafter 116,245 980,089 Total lease payments $ 6,405,965 $ 1,077,403 Less interest (1,015,461 ) (716,278 ) Present value of future lease payments $ 5,390,504 $ 361,125 Including: current lease liabilities 1,051,972 - noncurrent lease liabilities 4,338,532 361,125 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Apr. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13. RELATED PARTY TRANSACTIONS Related Party Receivables As of April 30, 2021 and July 31, 2020, amount of $0 and $703,776, respectively, is due from Shanghai Qiaohong Real Estate Co., Ltd. (“SH Qiaohong”), the noncontrolling interest of Longjing. The balance was acquired through HFSH acquisition. HFSH lent the amount to SH Qiaohong for two years on June 21, 2018 bearing annual interest of six percent. On August 1, 2020, the loan has been extended to July 31, 2022. The balance was settled through a Three-way settlement agreement on December 31, 2020, see following “Three-Party Settlement Agreement” paragraph for detail. For the three months and nine months ended April 30, 2021, $0 and $18,535 of interest income were recognized, respectively. For the three months and nine months ended April 30, 2020, $9,175 and $28,128 of interest income were recognized, respectively. The remaining related party receivable of $30,277 and $49,300 as of April 30, 2021 and July 31, 2020, respectively, represents the operating advances made to the affiliates which are managed by the same management team. These advances do not bear interest and are considered due on demand. Related Party Payables As of April 30, 2021 and July 31, 2020, amounts of $610,345 and $674,830, are payable to SH Qiaohong, respectively. Majority of the balance at July 31, 2020 was assumed through HFSH acquisition, under its 90 percent owned entity, Qiao Garden Intl Travel. This payable balance does not bear interest and due on demand. This balance was settled through a Three-way settlement agreement on December 31, 2020, see following “Three-Party Settlement Agreement” paragraph for detail. HFSH obtained approximately $597,000 and $0 funding support from SH Qiaohong for operation, during the nine months ended April 30, 2021 and 2020, respectively. The funding support bears no interest and due on demand. As of April 30, 2021 and July 31, 2020, amount of $617,866 and $594,965, respectively, is payable to Shanghai Qiao Garden Property Management Group (“Qiao Garden Group”), an entity managed by the same management team. The balance was assumed through HZLJ acquisition. This payable balance does not bear interest and is considered due on demand. HFSH had payable balances to Shanghai Oversea Chinese Culture Media Ltd. (“SH Oversea”), an entity managed by the same management team, in the amounts of $2,466,720 and $1,012,650 as of April 30, 2021 and July 31, 2020, respectively. The payable is funding support from SH Oversea for operation, bears no interest and due on demand. From September 2020 to April 2021, the Company borrowed several notes in a total amount of $125,000, in form of a short-term loan at 5% per annum from a related party, Hartford Hotel Investment Inc., an entity managed by the same management team. $1,205 and $2,131 of interest expense were recorded during the three months and nine months ended April 30, 2021, respectively. The unpaid principal and interest will be due on demand. As of April 30, 2021 and July 31, 2020, the Company has $649,677 and $592,106, respectively, short-term payable to Shanghai DuBian Assets Management Ltd. (“Dubian”), which is owned by the Company’s CEO’s relative. The payable balance was assumed from the acquisition transaction. On April 30, 2019, both parties entered a long-term agreement to convert the payable to a long-term debt, with expiration date on April 30, 2021, bearing approximately 2.5 percent of annual interest. On April 30, 2021, both parties entered a second long-term agreement to extend another two years, with expiration date on April 30, 2023, bearing approximately 4 percent of annual interest. $3,803 and $ 11,461 of interest expense were recognized during the three months and nine months ended April 30, 2021, respectively. $3,517 and $10,784 of interest expense were recognized during the three and nine months ended April 30, 2020, respectively. The unpaid principal and interest will be due on the maturity date. This loan payable is not exposed to market risk due to the stable and fixed interest rates in accordance with the loan agreements. As of April 30, 2021 and July 30, 2020, the estimated fair value of long term loan payable was approximately $648,244 and $591,521, respectively. The remaining related party payable of $9,268 and $92,100 as of April 30, 2021 and July 31, 2020, respectively, represents the unpaid portion of operating advances made to the Company by affiliates which are managed by the same management team. These advances do not bear interest and are considered due on demand. Three-Party Settlement Agreement On December 31, 2020, a Three-Party Settlement agreement among HFSH, SH Qiaohong and Qiao Garden Intl Travel was entered. Pursuant to the agreement, around $721,000 (RMB$5,031,699) payable due to SH Qiaohong under HFSH was settled with the receivable due from the same related party under Qiao Garden Intel Travel through withdrawal of 90% ownership of Qiao Garden Intl Travel HFSH owned. Total RMB5.0 million including the original investment RMB 4.5 million was withdrawn from Qiao Garden Intel Travel, and $104,317 (RMB697,000) gain on disposal was recognized at disposal date. Other Related Party Transactions Office space at Rosemead, CA is provided to Hartford Great Health Corp. at no cost by the sole executive officer. No provision for these costs has been included in these financial statements as the amounts are not material. On September 30, 2019, HF Int’l Education entered two debt agreements with the related parties, SH Qiao Hong and SH Oversea. Each debt agreement provides a line of credit up to RMB9.0 million with two-year term, bearing 3.0% annum interest rate. The unpaid principal and interest will be due on the maturity dates. As of April 30, 2021, no balance was withdrawn from the two line of credits by HF Int’l Education. |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Apr. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | NOTE 14. NONCONTROLLING INTERESTS Noncontrolling interests consisted of the following as of April 30, 2021 and 2020: Name of Entity % of Non-Controlling Interests July 31, 2020 Net loss Disposal of subsidiary Foreign currency translation adjustment April 30, 2021 HZLJ 40.0 % $ (889,068 ) $ (31,741 ) $ - $ (32,835 ) $ (953,644 ) HF Int’l Education 24.5 % * (88,692 ) (456,606 ) - (19,445 ) (564,743 ) Qiao Garden Intl Travel 10.0 % 60,271 1,827 (62,098 ) - - Total $ (917,489 ) $ (486,520 ) $ (62,098 ) $ (52,280 ) $ (1,518,387 ) *90% equity of SHHZJ, a limited partnership and 10% shareholder of HF Int’l Education, is held by Mr. Song, CEO of the Company on behalf of an unrelated individual. However, HF Int’l Education does not have the obligation to absorb losses of SHHZJ or a right to receive benefits from SHHZJ that could potentially be significant to SHHZJ, thus, SHHZJ is not considered a VIE of HF Int’l Education. Name of Entity % of Non-Controlling Interests July 31, 2019 Net loss Disposal of Noncontrolling interest Investment from Noncontrolling Interest Foreign currency translation adjustment April 30, 2020 HZLJ 40.0 % $ (250,794 ) $ (234,594 ) $ - $ - $ (11,826 ) $ (497,214 ) HF Int’l Education 41.5 % 104,923 (265,492 ) (15,583 ) 7,106 (4,118 ) (173,164 ) Qiao Garden Intl Travel 10.0 % 64,730 (6,611 ) - - 1,416 59,535 Total $ (81,141 ) $ (506,697 ) $ (15,583 ) $ 7,106 $ (14,528 ) $ (610,843 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15. COMMITMENTS AND CONTINGENCIES There has been below material contractual obligations and other commitments except the lease commitments disclosed in Note 12 Leases. On June 2018 and January 2019, HFSH and HF Int’l Education entered two lease agreements with Shanghai Longjin Corporate Management Co., Ltd (the “Sublessor”) to lease some office spaces. On April 13, 2020, HFSH and HF Int’l Education received Notices of Lease Termination from the Tenant for late payments. HFSH and HF Int’l Education then filed a civil case against the Sublessor for over-charged rent fees because of fictitious office size and requested refund in the total amount approximately $481,000 (RMB3.3 million) till July 10, 2020. The Sublessor was further in default under the lease agreements due to its lease agreement with the landlord of the office properties (the “Landlord”) was terminated on June 1, 2020 by the Landlord. The initial hearing was held on May 13, 2021, at Hongkou District Court in Shanghai. The district court expects a ruling in the next few weeks. The Company accrued the full amount of rent expense for the period ended May 31, 2020 and the accrued rental payable was $158,471 and $147,082 associated with this Tenant under the two lease agreements as of April 30, 2021 and July 31, 2020, respectively. HF Int’l Education entered a new lease agreement with the Landlord on June 1, 2020 for the same office spaces in a five-year term. |
Segment Information
Segment Information | 9 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 16. SEGMENT INFORMATION The Company currently operates in following industry segments: hospitality (hotel and travel agency) and early childhood education industry in China. Segment information on assets as of April 30, 2021 and revenue generated during the nine months ended April 30, 2021, as follows: Hospitality Education Corporate and unallocated Total Revenue $ 86,705 $ 233,499 $ - $ 320,204 Operating loss (225,567 ) (1,864,038 ) (123,914 ) (2,213,519 ) Loss before tax (132,291 ) (1,863,698 ) (126,958 ) (2,122,947 ) Net Loss Attributable to Hartford Great Health Corp (102,377 ) (1,407,092 ) (127,758 ) (1,637,227 ) Total assets (excluding Intercompany balances) 382,491 6,462,391 56,717 6,901,599 Segment information on assets as of April 30, 2020 and revenue generated during the nine months ended April 30, 2020, as follows: Corporate and Hospitality Education unallocated Total Revenue $ 54,736 $ 11,483 $ — $ 66,219 Operating loss (1,606,339 ) (559,073 ) (138,653 ) (2,304,065 ) Operating loss before tax (2,108,568 ) (58,815 ) (124,959 ) (2,292,342 ) Net Loss Attributable to Hartford Great Health Corp (1,305,463 ) (355,222 ) (125,760 ) (1,786,445 ) Total assets (excluding Intercompany balances) 1,668,556 3,259,431 1,014,985 5,942,972 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 17. SUBSEQUENT EVENTS In accordance with ASC 855 , “Subsequent Events” |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization | Organization Hartford Great Health Corp. was originally incorporated in the State of Nevada on April 2, 2008 under the name PhotoAmigo, Inc. It changed its name to Hartford Great Health Corp. on August 22, 2018 and since then we have been engaged in activities to formulate and implement our business plans. Through its wholly owned subsidiary - Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF) and HZHF’s 60 percent owned subsidiary - Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”), and through Shanghai Hartford Comprehensive Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), the Company engages in hospitality industry in China. Qiao Garden Int’l Travel was disposed on December 31, 2020, see note 4 Acquisitions, Joint Ventures and Deconsolidation. The Company started to engage in early childhood education industry at Hartford International Education Technology Co., Ltd (“HF Int’l Education”), a 75.5% ownership subsidiary of HFSH on March 2019. On July 24, 2019 and March 23, 2020, HF Int’l Education established two 100% owned subsidiaries, Pudong Haojin Childhood Education Ltd. (“PDHJ”) and Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd.(“HDFD”), respectively, to operate the early childhood education service under the brand name of “HaiDeFuDe” in Shanghai, China. On July 20, 2020, HF Int’l Education entered an agreement with two individuals to acquire the whole ownership of Shanghai Gelinke Childcare Education Center (“Gelinke”). |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Hartford Great Health Corp, its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests of the consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in the consolidation. The Company’s net income (loss) excludes income (loss) attributable to the noncontrolling interests. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain amounts on the prior-year consolidated balance sheet, consolidated statement of operations and cash flows were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity. |
Income Taxes | Income Taxes: On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included in the gross income of the CFCs’ U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company’s subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years and zero amount of tax provisions, including GILTI. Deferred tax assets as of the reporting periods ended were fully reserved for valuation allowance as they are more likely than not to be realized. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606) on August 1, 2018, applying the modified retrospective method to all contracts that were not completed as of August 1, 2018. The Company is building up its core business upon the completion of multiple acquisitions on March 2019 and impact of COVID-19 pandemic, limited operations occurred during the three months and nine months ended April 30, 2021 and 2020. The revenue during the three months and nine months ended April 30, 2021 and 2020, were mainly generated from HZLJ and HF Int’l Education and their subsidiaries. Revenue is recognized when control of promised goods or services is transferred to our customers in an amount of consideration to which we expect to be entitled to in exchange for those goods or services. We follow the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy a performance obligation.. Billings to customers for which services are not rendered are considered deferred revenue. ASC 606 has no material impacts on the Company’s financial positions. The Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products or providing services to a customer. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company recorded unearned revenue, amount of $431,326 and $75,861 as of April 30, 2021 and July 31, 2020, respectively. a. Early childhood education services: HF Int’l Education generates revenue from childhood education classes provided to its customers. The educational services consist of parent-child and bilingual childcare classes. Each contract of educational classes is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fee is generally collected in advance and is initially recorded as deferred revenue. Refunds are provided to parents if they decide within the trial period that they no longer want to take the class. After the trial period, if a parent withdraws from a class, usually only that unearned portion of the fee is available to be returned. b. Hospitality services: HZLJ generates revenue primarily from the room rentals, sale of food and beverage and other miscellaneous hospitality services. The Company recognizes room rental and services daily as services are provided. Under ASC 606, the pattern and timing of recognition of income from hotel facility is consistent with the prior accounting model. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Recently adopted accounting pronouncements In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company early adopted ASU No. 2017-04 on January 31, 2020. Management determined the goodwill generated from HZLJ and HFSH acquisition was fully impaired as of January 31, 2020. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. ASU No. 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous guidance. The accounting for finance leases (capital leases) was substantially unchanged. The original guidance required application on a modified retrospective basis with adjustments to the earliest comparative period presented. In August 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements to ASC 842,” which included an option to not restate comparative periods in transition and elect to use the effective date of ASU No. 2016-02 as the date of initial application, which the Company elected. As a result, the consolidated balance sheet prior to August 1, 2019 was not restated, and continues to be reported under previous guidance that did not require the recognition of operating lease liabilities and corresponding lease assets on the consolidated balance sheet. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at August 1, 2019 for the adoption of the new lease standard was as follows: Balance at Balance at July 31, 2019 Adjustments August 1, 2019 Assets: Prepaid and Other current receivables 386,700 (74,197 ) 312,503 ROU assets-Operating lease — 4,185,827 4,185,827 Liabilities: Current Operating Lease liabilities — 651,424 651,424 Operating lease liabilities — 3,481,229 3,481,229 The adoption of ASU No. 2016-02 had an immaterial impact on the Company’s consolidated statement of operation and consolidated statement of cash flows for the year ended July 31, 2020. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical lease classification, not reassess prior conclusions related to expired or existing contracts that are or that contain leases, and not reassess the accounting for initial direct costs. Operating leases with a term of 12 months or less will not be recorded on the Consolidated Balance Sheet. Additional information and disclosures required by ASU No. 2016-02 are contained in Note 12 Leases. Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”. The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which is intended to simplify various aspects related to accounting for income taxes. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions in which the reference LIBOR or another reference rate are expected to be discontinued as a result of the Reference Rate Reform. The standard is effective for all entities. The standard may be adopted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cumulative Effect of Changes in Financial Statement | The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at August 1, 2019 for the adoption of the new lease standard was as follows: Balance at Balance at July 31, 2019 Adjustments August 1, 2019 Assets: Prepaid and Other current receivables 386,700 (74,197 ) 312,503 ROU assets-Operating lease — 4,185,827 4,185,827 Liabilities: Current Operating Lease liabilities — 651,424 651,424 Operating lease liabilities — 3,481,229 3,481,229 |
Restatements (Tables)
Restatements (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Restatements Tables Abstract | |
Schedule of Restated Consolidated Statement of Cash Flow | Restated Consolidated Statement of Cash Flow (adjusted line items): For the nine months ended April 30, 2020 As previously reported As restated Changes Cash flows from operating activities: Related party receivables and payables 695,432 74,011 621,421 Net cash provided by (used in) operating activities 2,036 (619,385 ) 621,421 Cash flows from financing activities: Advances from related parties - 621,421 (621,421 ) Net cash (used in) provided by financing activities (12,744 ) 608,677 (621,421 ) |
Acquisitions, Joint Ventures _2
Acquisitions, Joint Ventures and Deconsolidation (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary calculation of purchase price and purchase price allocation is as follows: Assets Acquired and Liabilities Assumed Cash and cash equivalents 1,809 Restricted Cash 25,009 Prepaid and Other current receivables 4,696 Property and Equipment, net 4,294 Unearned revenue (78,696 ) Goodwill 67,712 Total consideration* 24,824 *$10,462 (RMB70,000) payable to the acquiree plus $14,362 (RMB100,000) cash payment totaled $24,824 consideration for the acquisition. |
Schedule of Net Assets (Liabilities) Disposed of Subsidiary | Net assets (liabilities) disposed of: Net assets (liabilities) disposed of: Cash and cash equivalents 172 Restricted cash 29,944 Related party receivable 782,224 Related party payable (98,615 ) Other current payable (3,876 ) Noncontrolling interest (60,812 ) Net assets of the subsidiary, excluding noncontrolling interest 649,037 Consideration 753,354 Gain on disposal of the subsidiary (104,317 ) Gain on disposal of noncontrolling interest (60,812 ) Gain on disposal of the subsidiary, excluding noncontrolling interest (43,505 ) |
Schedule of Net Inflow (Outflow) of Cash and Cash Equivalents of Disposal Subsidiary | Net inflow / (outflow) of cash and cash equivalents in respect of the disposal subsidiary: Cash and cash equivalents (172 ) Restricted cash (29,944 ) Cash and cash equivalents deconsolidated (30,116 ) |
Restricted Cash (Tables)
Restricted Cash (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. April 30, 2021 (unaudited) April 30, 2020 (unaudited) Cash and cash equivalents $ 64,585 $ 28,567 Restricted cash, noncurrent 26,515 28,425 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 91,100 $ 56,992 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following at April 30, 2021 and July 31, 2020: April 30, July 31, 2021 (unaudited) 2020 Leasehold improvements $ 199,099 $ 181,378 Finance lease assets 290,158 269,304 Furniture and fixtures 272,817 202,241 Office equipment and vehicles 161,220 112,759 Construction in progress 66,915 19,326 990,209 785,008 Less: accumulated depreciation and amortization (403,726 ) (317,127 ) $ 586,483 $ 467,881 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following at April 30, 2021 and July 31, 2020: April 30, 2021 July 31, 2020 Other miscellaneous assets $ 34,606 $ 40,265 Rental deposits 343,008 288,970 Deferred cost of finance lease - - $ 377,614 $ 329,235 |
Other Current Payable (Tables)
Other Current Payable (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts and Other Payables | The following is a breakdown of the accounts and other payables as of April 30, 2021 and July 31, 2020: April 30, 2021 July 31, 2020 Payable to acquirees $ 151,028 $ 130,138 Unearned revenue 431,326 75,861 Rental payables 385,647 252,154 Accrued payroll 90,443 48,534 Payable to publisher 139,020 - Other payables 142,125 110,432 $ 1,339,589 $ 617,119 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease-related Assets and Liabilities | Lease-related assets and liabilities on April 30, 2021 and July 31, 2020 were as follows: April 30, July 31, 2021 (unaudited) 2020 Assets Finance lease right-of-use assets, cost $ 290,158 $ 269,304 Less: accumulated amortization (74,899 ) (64,589 ) Finance lease right-of-use assets, net 215,259 204,715 ROU assets-Operating lease 5,146,679 4,499,693 Total Lease ROU assets $ 5,361,938 $ 4,704,408 Liabilities Current Operating Lease liabilities $ 1,051,972 $ 739,352 Operating lease liabilities, noncurrent 4,338,532 3,916,259 Finance lease liabilities, noncurrent 361,125 336,791 Total Lease liabilities $ 5,751,629 $ 4,992,402 |
Schedule of Components of Lease Cost | The components of lease cost for the three months and nine months ended April 30, 2021 and 2020 were as follows: Three months ended April 30, Nine months ended April 30, 2021 (unaudited) 2020 (unaudited) 2021 (unaudited) 2020 (unaudited) Operating lease cost $ 356,715 $ 268,727 $ 1,047,066 $ 731,886 Finance leases: Amortization of ROU assets 1,744 1,582 5,308 4,884 Interest on finance lease liabilities 6,785 6,065 20,652 18,733 Finance lease cost 8,529 7,647 25,960 23,617 Total lease cost $ 365,244 $ 276,374 $ 1,073,026 $ 755,503 |
Schedule of Supplemental Cash Flow Information for Leases | Supplemental cash flow information for leases for the nine months ended April 30, 2021 and 2020 was as follows: Nine months ended April 30, 2021 (unaudited) 2020 (unaudited) Operating cash flows paid for operating leases $ 773,347 $ 357,617 Financing cash flows paid for finance leases 21,900 19,824 |
Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating and Finance Leases | The weighted-average remaining lease term and weighted-average discount rate for operating and finance leases at April 30, 2021 was as follows: Operating Leases Finance Leases Weighted-average remaining lease term (years) 4.3 30.3 Weighted-average discount rate 8 % 8 % |
Schedule of Future Minimum Lease Payments for Operating and Finance Leases | The following table reconciles the undiscounted future minimum lease payments for operating and finance leases executed at April 30, 2021: Operating Leases Finance Leases 2021 (excluding the nine-month ended April 30, 2020) $ 330,710 $ - 2022 1,513,819 23,170 2023 1,465,987 23,942 2024 1,532,968 24,715 2025 1,446,236 25,487 2026 and thereafter 116,245 980,089 Total lease payments $ 6,405,965 $ 1,077,403 Less interest (1,015,461 ) (716,278 ) Present value of future lease payments $ 5,390,504 $ 361,125 Including: current lease liabilities 1,051,972 - noncurrent lease liabilities 4,338,532 361,125 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interests | Noncontrolling interests consisted of the following as of April 30, 2021 and 2020: Name of Entity % of Non-Controlling Interests July 31, 2020 Net loss Disposal of subsidiary Foreign currency translation adjustment April 30, 2021 HZLJ 40.0 % $ (889,068 ) $ (31,741 ) $ - $ (32,835 ) $ (953,644 ) HF Int’l Education 24.5 % * (88,692 ) (456,606 ) - (19,445 ) (564,743 ) Qiao Garden Intl Travel 10.0 % 60,271 1,827 (62,098 ) - - Total $ (917,489 ) $ (486,520 ) $ (62,098 ) $ (52,280 ) $ (1,518,387 ) *90% equity of SHHZJ, a limited partnership and 10% shareholder of HF Int’l Education, is held by Mr. Song, CEO of the Company on behalf of an unrelated individual. However, HF Int’l Education does not have the obligation to absorb losses of SHHZJ or a right to receive benefits from SHHZJ that could potentially be significant to SHHZJ, thus, SHHZJ is not considered a VIE of HF Int’l Education. Name of Entity % of Non-Controlling Interests July 31, 2019 Net loss Disposal of Noncontrolling interest Investment from Noncontrolling Interest Foreign currency translation adjustment April 30, 2020 HZLJ 40.0 % $ (250,794 ) $ (234,594 ) $ - $ - $ (11,826 ) $ (497,214 ) HF Int’l Education 41.5 % 104,923 (265,492 ) (15,583 ) 7,106 (4,118 ) (173,164 ) Qiao Garden Intl Travel 10.0 % 64,730 (6,611 ) - - 1,416 59,535 Total $ (81,141 ) $ (506,697 ) $ (15,583 ) $ 7,106 $ (14,528 ) $ (610,843 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information on assets as of April 30, 2021 and revenue generated during the nine months ended April 30, 2021, as follows: Hospitality Education Corporate and unallocated Total Revenue $ 86,705 $ 233,499 $ - $ 320,204 Operating loss (225,567 ) (1,864,038 ) (123,914 ) (2,213,519 ) Loss before tax (132,291 ) (1,863,698 ) (126,958 ) (2,122,947 ) Net Loss Attributable to Hartford Great Health Corp (102,377 ) (1,407,092 ) (127,758 ) (1,637,227 ) Total assets (excluding Intercompany balances) 382,491 6,462,391 56,717 6,901,599 Segment information on assets as of April 30, 2020 and revenue generated during the nine months ended April 30, 2020, as follows: Corporate and Hospitality Education unallocated Total Revenue $ 54,736 $ 11,483 $ — $ 66,219 Operating loss (1,606,339 ) (559,073 ) (138,653 ) (2,304,065 ) Operating loss before tax (2,108,568 ) (58,815 ) (124,959 ) (2,292,342 ) Net Loss Attributable to Hartford Great Health Corp (1,305,463 ) (355,222 ) (125,760 ) (1,786,445 ) Total assets (excluding Intercompany balances) 1,668,556 3,259,431 1,014,985 5,942,972 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jan. 02, 2018 | Dec. 22, 2017 | Apr. 30, 2021 | Jul. 31, 2020 | Mar. 23, 2020 | Jul. 24, 2019 | Mar. 31, 2019 |
Income tax rate | 21.00% | 35.00% | |||||
Unearned revenue | $ 431,326 | $ 75,861 | |||||
PRC [Member] | |||||||
Income tax rate | 25.00% | ||||||
Hartford International Education Technology Co., Ltd [Member] | |||||||
Equity ownership percentage | 75.50% | ||||||
Pudong Haojin Childhood Education Ltd [Member] | |||||||
Equity ownership percentage | 100.00% | ||||||
Shanghai Hongkou HaiDeFuDe Childcare Co., Ltd [Member] | |||||||
Equity ownership percentage | 100.00% | ||||||
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | |||||||
Acquired percentage | 60.00% | ||||||
Shanghai Hartford Comprehensive Health Management, Ltd. [Member] | |||||||
Acquired percentage | 90.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Cumulative Effect of Changes in Financial Statement (Details) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Prepaid and Other current receivables | $ 312,503 | $ 386,700 | ||
ROU assets-Operating lease | $ 5,146,679 | $ 4,499,693 | 4,185,827 | |
Current Operating Lease liabilities | 1,051,972 | $ 739,352 | 651,424 | |
Operating lease liabilities | $ 5,390,504 | $ 3,481,229 | ||
Adjustments [Member] | ||||
Prepaid and Other current receivables | (74,197) | |||
ROU assets-Operating lease | 4,185,827 | |||
Current Operating Lease liabilities | 651,424 | |||
Operating lease liabilities | $ 3,481,229 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (5,205,412) | $ (3,568,185) |
Restatements - Schedule of Rest
Restatements - Schedule of Restated Consolidated Statement of Cash Flow (Details) - USD ($) | 9 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash flows from operating activities: | ||
Related party receivables and payables | $ 26,308 | $ 74,011 |
Net cash provided by (used in) operating activities | (1,892,057) | (619,385) |
Cash flows from financing activities: | ||
Advances from related parties | 1,941,842 | 621,421 |
Net cash (used in) provided by financing activities | $ 2,064,942 | 608,677 |
As Previously Reported [Member] | ||
Cash flows from operating activities: | ||
Related party receivables and payables | 695,432 | |
Net cash provided by (used in) operating activities | 2,036 | |
Cash flows from financing activities: | ||
Advances from related parties | ||
Net cash (used in) provided by financing activities | (12,744) | |
Change [Member] | ||
Cash flows from operating activities: | ||
Related party receivables and payables | 621,421 | |
Net cash provided by (used in) operating activities | 621,421 | |
Cash flows from financing activities: | ||
Advances from related parties | (621,421) | |
Net cash (used in) provided by financing activities | $ (621,421) |
Acquisitions, Joint Ventures _3
Acquisitions, Joint Ventures and Deconsolidation (Details Narrative) | Dec. 31, 2020CNY (¥) | Mar. 22, 2019 | Apr. 30, 2021CNY (¥) | Apr. 30, 2020USD ($) | Jul. 31, 2020 | Jun. 19, 2020CNY (¥) | Jun. 30, 2019 | May 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 |
Investment from noncontrolling interest | $ | $ 7,106 | |||||||||
HF Int'l Education [Member] | ||||||||||
Noncontrolling shareholders, description | As a result, HFSH holds 75.5% of HF Int'l Education and totaling 24.5% equity held by noncontrolling shareholders. | |||||||||
Shanghai Senior Health Consulting Ltd. [Member] | ||||||||||
Business acquired ownership interest | 85.00% | 85.00% | ||||||||
Shanghai Pasadena Ltd. [Member] | ||||||||||
Business acquired ownership interest | 55.00% | 55.00% | ||||||||
Shanghai Luo Sheng International Trade Ltd. [Member] | ||||||||||
Business acquired ownership interest | 100.00% | |||||||||
Shanghai Ren Lai Ren Wang Restaurant Co., Ltd. [Member] | ||||||||||
Business acquired ownership interest | 60.00% | 60.00% | ||||||||
Qiao Garden International Travel Agency [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | ||||||||||
Business acquired ownership interest | 90.00% | 90.00% | ||||||||
Disposed of owned subsidiary company percentage | 90.00% | |||||||||
Qiao Garden International Travel Agency [Member] | RMB [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | ||||||||||
Investment from noncontrolling interest | ¥ 4,500,000 | ¥ 4,500,000 | ||||||||
Investment income | ¥ 500,000 | ¥ 5,000,000 | ||||||||
Shareholders [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | Minimum [Member] | ||||||||||
Noncontrolling ownership interest | 61.00% | |||||||||
Shareholders [Member] | Hartford Great Health Management (Shanghai) Ltd. [Member] | Maximum [Member] | ||||||||||
Noncontrolling ownership interest | 65.00% | |||||||||
Joint Venture Agreement [Member] | ||||||||||
Joint venture acquired ownership interest | 65.00% | |||||||||
Joint Venture Agreement [Member] | Minimum [Member] | RMB [Member] | ||||||||||
Registered capital | ¥ 5,000,000 | |||||||||
Joint Venture Agreement [Member] | Maximum [Member] | RMB [Member] | ||||||||||
Registered capital | ¥ 10,000,000 |
Acquisitions, Joint Ventures _4
Acquisitions, Joint Ventures and Deconsolidation - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Shanghai Gelinke Childcare Education Center [Member] | Jul. 20, 2020USD ($) | |
Cash and cash equivalents | $ 1,809 | |
Restricted Cash | 25,009 | |
Prepaid and Other current receivables | 4,696 | |
Property and Equipment, net | 4,294 | |
Unearned revenue | (78,696) | |
Goodwill | 67,712 | |
Total consideration | $ 24,824 | [1] |
[1] | $10,462 (RMB70,000) payable to the acquiree plus $14,362 (RMB100,000) cash payment totaled $24,824 consideration for the acquisition. |
Acquisitions, Joint Ventures _5
Acquisitions, Joint Ventures and Deconsolidation - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) (Parenthetical) - Jul. 20, 2020 - Shanghai Gelinke Childcare Education Center [Member] | USD ($) | CNY (¥) | |
Purchase price | $ 10,462 | ||
Cash payments to acquire business | 14,362 | ||
Total consideration | [1] | $ 24,824 | |
RMB [Member] | |||
Purchase price | ¥ | ¥ 70,000 | ||
Cash payments to acquire business | ¥ | ¥ 100,000 | ||
[1] | $10,462 (RMB70,000) payable to the acquiree plus $14,362 (RMB100,000) cash payment totaled $24,824 consideration for the acquisition. |
Acquisitions, Joint Ventures _6
Acquisitions, Joint Ventures and Deconsolidation - Schedule of Net Assets (Liabilities) Disposed of Subsidiary (Details) - Qiao Garden Intel Travel [Member] | Dec. 31, 2020USD ($) |
Cash and cash equivalents | $ 172 |
Restricted cash | 29,944 |
Related party receivable | 782,224 |
Related party payable | (98,615) |
Other current payable | (3,876) |
Noncontrolling interest | (60,812) |
Net assets of the subsidiary, excluding noncontrolling interest | 649,037 |
Consideration | 753,354 |
Gain on disposal of the subsidiary | (104,317) |
Gain on disposal of noncontrolling interest | (60,812) |
Gain on disposal of the subsidiary, excluding noncontrolling interest | $ (43,505) |
Acquisitions, Joint Ventures _7
Acquisitions, Joint Ventures and Deconsolidation - Schedule of Net Inflow (Outflow) of Cash and Cash Equivalents of Disposal Subsidiary (Details) - Qiao Garden Intel Travel [Member] | Dec. 31, 2020USD ($) |
Cash and cash equivalents | $ (172) |
Restricted cash | (29,944) |
Cash and cash equivalents deconsolidated | $ (30,116) |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 | Apr. 30, 2020 |
Cash and Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 64,585 | $ 36,604 | $ 28,567 |
Restricted cash, noncurrent | 26,515 | $ 28,673 | 28,425 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 91,100 | $ 56,992 |
Prepaid and Other Current Rec_2
Prepaid and Other Current Receivables (Details Narrative) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid and other current receivables | $ 274,623 | $ 173,819 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory's net | $ 323,194 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 26,039 | $ 3,935 | $ 60,662 | $ 12,511 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Property and equipment, gross | $ 990,209 | $ 785,008 |
Less: accumulated depreciation and amortization | (403,726) | (317,127) |
Property and equipment, net | 586,483 | 467,881 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 199,099 | 181,378 |
Finance Lease Assets [Member] | ||
Property and equipment, gross | 290,158 | 269,304 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 272,817 | 202,241 |
Office Equipment and Vehicles [Member] | ||
Property and equipment, gross | 161,220 | 112,759 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 66,915 | $ 19,326 |
Other Assets (Details Narrative
Other Assets (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2020USD ($) | Apr. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2021USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2019CNY (¥) | |
Finance lease | $ 361,125 | |||||
Amortization expense | $ 5,274 | $ 15,930 | ||||
Impairment cost | $ 621,963 | |||||
Land Use Rights and Hotel Building [Member] | ||||||
Finance lease | $ 879,800 | |||||
Land Use Rights and Hotel Building [Member] | RMB [Member] | ||||||
Finance lease | ¥ | ¥ 6,000,000 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other miscellaneous assets | $ 34,606 | $ 40,265 |
Rental deposits | 343,008 | 288,970 |
Deferred cost of finance lease | ||
Other assets | $ 377,614 | $ 329,235 |
Other Current Payable - Schedul
Other Current Payable - Schedule of Accounts and Other Payables (Details) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Payables and Accruals [Abstract] | ||
Payable to acquirees | $ 151,028 | $ 130,138 |
Unearned revenue | 431,326 | 75,861 |
Rental payables | 385,647 | 252,154 |
Accrued payroll | 90,443 | 48,534 |
Payable to publisher | 139,020 | |
Other payables | 142,125 | 110,432 |
Other Current Payables | $ 1,339,589 | $ 617,119 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jul. 03, 2020 | Apr. 30, 2021 |
Issuance of common stock, capital in cash | $ 20,000 | |
Shareholder [Member] | Subscription Agreement [Member] | ||
Issuance of common stock, shares | 1,000,000 | |
Share price | $ 0.02 | |
Issuance of common stock, capital in cash | $ 20,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | May 31, 2020 | Apr. 30, 2021 | Jan. 09, 2021 | Jan. 06, 2021 | Sep. 02, 2020 | Jul. 31, 2020 | Jun. 01, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Finance leases remaining term | 31 years | ||||||||
ROU of lease liability | $ 5,146,679 | $ 4,499,693 | $ 4,185,827 | ||||||
Lease liability | $ 5,390,504 | $ 3,481,229 | |||||||
Two Sublease Agreements [Member] | |||||||||
ROU of lease liability | $ 921,000 | ||||||||
Lease liability | 891,000 | ||||||||
Other expenses | $ 29,000 | ||||||||
New Lease Agreement [Member] | |||||||||
Lease term | 5 years | ||||||||
Shanghai Gelinke Childcare Education Center [Member] | Five-Year New Lease Agreement [Member] | |||||||||
ROU of lease liability | $ 1,200,000 | ||||||||
Lease liability | $ 1,200,000 | ||||||||
Lease term | 5 years | ||||||||
Hangzhou Hartford Comprehensive Health Management, Ltd [Member] | |||||||||
Operating leases remaining term | 2 years | ||||||||
ROU of lease liability | $ 49,000 | $ 287,000 | |||||||
Lease liability | $ 49,000 | $ 258,000 | |||||||
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member] | |||||||||
Finance leases remaining term | 41 years | ||||||||
Minimum [Member] | |||||||||
Operating leases remaining term | 2 years | ||||||||
Maximum [Member] | |||||||||
Operating leases remaining term | 6 years |
Leases - Schedule of Lease-rela
Leases - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Leases [Abstract] | ||||
Finance lease right-of-use assets, cost | $ 290,158 | $ 269,304 | ||
Less: accumulated amortization | (74,899) | (64,589) | ||
Finance lease right-of-use assets, net | 215,259 | 204,715 | ||
ROU assets-Operating lease | 5,146,679 | 4,499,693 | $ 4,185,827 | |
Total Lease ROU assets | 5,361,938 | 4,704,408 | ||
Current Operating Lease liabilities | 1,051,972 | 739,352 | $ 651,424 | |
Operating lease liabilities, noncurrent | 4,338,532 | 3,916,259 | ||
Finance lease liabilities, noncurrent | 361,125 | 336,791 | ||
Total Lease liabilities | $ 5,751,629 | $ 4,992,402 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 356,715 | $ 268,727 | $ 1,047,066 | $ 731,886 |
Amortization of ROU assets | 1,744 | 1,582 | 5,308 | 4,884 |
Interest on finance lease liabilities | 6,785 | 6,065 | 20,652 | 18,733 |
Finance lease cost | 8,529 | 7,647 | 25,960 | 23,617 |
Total lease cost | $ 365,244 | $ 276,374 | $ 1,073,026 | $ 755,503 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information for Leases (Details) - USD ($) | 9 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Leases [Abstract] | ||
Operating cash flows paid for operating leases | $ 773,347 | $ 357,617 |
Financing cash flows paid for finance leases | $ 21,900 | $ 19,824 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating and Finance Leases (Details) | Apr. 30, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) Operating Leases | 4 years 3 months 19 days |
Weighted-average remaining lease term (years) Finance Leases | 30 years 3 months 19 days |
Weighted-average discount rate Operating Leases | 8.00% |
Weighted-average discount rate Finance Leases | 8.00% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating and Finance Leases (Details) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 31, 2019 |
Leases [Abstract] | ||||
Operating lease 2021 (excluding the nine-month ended April 30, 2020) | $ 330,710 | |||
Operating Leases, 2022 | 1,513,819 | |||
Operating Leases, 2023 | 1,465,987 | |||
Operating Leases, 2024 | 1,532,968 | |||
Operating Leases, 2025 | 1,446,236 | |||
Operating Leases, 2026 and thereafter | 116,245 | |||
Operating Leases, Total lease payments | 6,405,965 | |||
Less interest | (1,015,461) | |||
Present value of future lease payments | 5,390,504 | $ 3,481,229 | ||
Including: current lease liabilities | 1,051,972 | $ 739,352 | $ 651,424 | |
Including: noncurrent lease liabilities | 4,338,532 | 3,916,259 | ||
Finance Leases, 2021 (excluding the nine-month ended April 30, 2020) | ||||
Finance Leases, 2022 | 23,170 | |||
Finance Leases, 2023 | 23,942 | |||
Finance Leases, 2024 | 24,715 | |||
Finance Leases, 2025 | 25,487 | |||
Finance Leases, 2026 and thereafter | 980,089 | |||
Finance Leases, Total lease payments | 1,077,403 | |||
Less interest | (716,278) | |||
Present value of future lease payments | 361,125 | |||
Including: current lease liabilities | ||||
Including: noncurrent lease liabilities | $ 361,125 | $ 336,791 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Apr. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | Apr. 30, 2019 | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2021USD ($) | Apr. 30, 2021CNY (¥) | Apr. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Jul. 31, 2020USD ($) | Jul. 30, 2020USD ($) |
Proceeds from related party | $ 125,000 | ||||||||||||
Estimated fair value of long term loans payable | $ 648,244 | $ 648,244 | 648,244 | $ 591,521 | |||||||||
Investment from noncontrolling interest | 7,106 | ||||||||||||
Gain on disposal of subsidiary | 104,317 | ||||||||||||
RMB [Member] | |||||||||||||
Gain on disposal of subsidiary | ¥ | ¥ 697,000 | ||||||||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | |||||||||||||
Due to/from related party | $ 721,000 | ||||||||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | RMB [Member] | |||||||||||||
Due to/from related party | ¥ | ¥ 5,031,699 | ||||||||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | Qiao Garden International Travel Agency [Member] | |||||||||||||
Acquired percentage | 90.00% | 90.00% | 90.00% | ||||||||||
Hartford Great Health Management (Shanghai) Ltd. [Member] | Qiao Garden International Travel Agency [Member] | RMB [Member] | |||||||||||||
Investment income | ¥ | ¥ 500,000 | 5,000,000 | |||||||||||
Investment from noncontrolling interest | ¥ | ¥ 4,500,000 | ¥ 4,500,000 | |||||||||||
Shanghai Qiaohong Real Estate Co., Ltd. [Member] | |||||||||||||
Related party receivables | 0 | 0 | $ 0 | $ 703,776 | |||||||||
Related party receivables, description | HFSH lent the amount to SH Qiaohong for two years on June 21, 2018 bearing annual interest of six percent. On August 1, 2020, the loan has been extended to July 31, 2022. | HFSH lent the amount to SH Qiaohong for two years on June 21, 2018 bearing annual interest of six percent. On August 1, 2020, the loan has been extended to July 31, 2022. | |||||||||||
Interest income | 0 | 9,175 | $ 18,535 | 28,128 | |||||||||
Related Party Payables | 610,345 | 610,345 | 610,345 | 674,830 | |||||||||
Proceeds from related party | 597,000 | 0 | |||||||||||
Affiliates [Member] | |||||||||||||
Related party receivables | 30,277 | 30,277 | 30,277 | 49,300 | |||||||||
Related Party Payables | 9,268 | 9,268 | 9,268 | 92,100 | |||||||||
Shanghai Qiao Garden Property Management Group [Member] | |||||||||||||
Related Party Payables | 617,866 | 617,866 | 617,866 | 594,965 | |||||||||
Shanghai Oversea Chinese Culture Media Ltd. [Member] | |||||||||||||
Related Party Payables | 2,466,720 | 2,466,720 | 2,466,720 | 1,012,650 | |||||||||
Hartford Hotel Investment Inc [Member] | Related Party [Member] | |||||||||||||
Short term borrowings | $ 125,000 | $ 125,000 | $ 125,000 | ||||||||||
Short term debt interest rate, percentage | 5.00% | 5.00% | 5.00% | ||||||||||
Interest expense | $ 1,205 | $ 2,131 | |||||||||||
Shanghai DuBian Assets Management Ltd. [Member] | |||||||||||||
Interest expense | 3,803 | $ 3,517 | 11,461 | $ 10,784 | |||||||||
Short-term and long-term payable | $ 649,677 | $ 649,677 | $ 649,677 | $ 592,106 | |||||||||
Expiration date | Apr. 30, 2021 | ||||||||||||
Interest rate | 2.50% | ||||||||||||
Shanghai DuBian Assets Management Ltd. [Member] | Second Long Term Agreement [Member] | |||||||||||||
Expiration date | Apr. 30, 2023 | ||||||||||||
Interest rate | 4.00% | ||||||||||||
HF Int'l Education [Member] | Two Debt Agreements [Member] | |||||||||||||
Debt instrument, term | 2 years | ||||||||||||
Line of credit facility, annum interest rate | 3.00% | ||||||||||||
HF Int'l Education [Member] | Two Debt Agreements [Member] | RMB [Member] | |||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 9,000,000 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |||
Non-Controlling Interests beginning balance | $ (917,489) | $ (81,141) | ||||
Net loss | $ (130,040) | $ (108,680) | (486,520) | (506,697) | ||
Disposal of subsidiary | (62,098) | |||||
Disposal of Noncontrolling interest | (15,583) | |||||
Investment from Noncontrolling Interest | 7,106 | |||||
Foreign currency translation adjustment | (52,280) | (14,528) | ||||
Non-Controlling Interests ending balance | $ (1,518,387) | $ (610,843) | $ (1,518,387) | $ (610,843) | ||
HZLJ [Member] | ||||||
% of Non-Controlling Interests | 40.00% | 40.00% | 40.00% | 40.00% | ||
Non-Controlling Interests beginning balance | $ (889,068) | $ (250,794) | ||||
Net loss | (31,741) | (234,594) | ||||
Disposal of subsidiary | ||||||
Disposal of Noncontrolling interest | ||||||
Investment from Noncontrolling Interest | ||||||
Foreign currency translation adjustment | (32,835) | (11,826) | ||||
Non-Controlling Interests ending balance | $ (953,644) | $ (497,214) | $ (953,644) | $ (497,214) | ||
HF Int'l Education [Member] | ||||||
% of Non-Controlling Interests | 24.50% | [1] | 41.50% | 24.50% | [1] | 41.50% |
Non-Controlling Interests beginning balance | $ (88,692) | $ 104,923 | ||||
Net loss | (456,606) | (265,492) | ||||
Disposal of subsidiary | ||||||
Disposal of Noncontrolling interest | (15,583) | |||||
Investment from Noncontrolling Interest | 7,106 | |||||
Foreign currency translation adjustment | (19,445) | (4,118) | ||||
Non-Controlling Interests ending balance | $ (564,743) | $ (173,164) | $ (564,743) | $ (173,164) | ||
Qiao Garden Intl Travel [Member] | ||||||
% of Non-Controlling Interests | 10.00% | 10.00% | 10.00% | 10.00% | ||
Non-Controlling Interests beginning balance | $ 60,271 | $ 64,730 | ||||
Net loss | 1,827 | (6,611) | ||||
Disposal of subsidiary | (62,098) | |||||
Disposal of Noncontrolling interest | ||||||
Investment from Noncontrolling Interest | ||||||
Foreign currency translation adjustment | 1,416 | |||||
Non-Controlling Interests ending balance | $ 59,535 | $ 59,535 | ||||
[1] | 90% equity of SHHZJ, a limited partnership and 10% shareholder of HF Int'1 Education, is held by Mr. Song, CEO of the Company on behalf of an unrelated individual. However, HF Int'1 Education does not have the obligation to absorb losses of SHHZJ or a right to receive benefits from SHHZJ that could potentially be significant to SHHZJ, thus, SHHZJ is not considered a VIE of HF Int'1 Education. |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Two Lease Agreements [Member] | Apr. 13, 2020USD ($) | Apr. 13, 2020CNY (¥) | Apr. 30, 2021USD ($) | Jul. 31, 2020USD ($) |
Refund of fictitious office property requested | $ 481,000 | |||
Lease agreement, date | Jun. 1, 2020 | Jun. 1, 2020 | ||
Lease agreement, description | HF Int'l Education entered a new lease agreement with the Landlord on June 1, 2020 for the same office spaces with a five-year term. | |||
Tenant [Member] | ||||
Accrued rental payable | $ 158,471 | $ 147,082 | ||
RMB [Member] | ||||
Refund of fictitious office property requested | ¥ | ¥ 3,300,000 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Jul. 31, 2020 | |
Revenue | $ 137,892 | $ 10,310 | $ 320,204 | $ 66,219 | |
Operating loss | (586,958) | (414,624) | (2,213,519) | (2,304,065) | |
Operating loss before tax | (598,449) | (410,636) | (2,122,947) | (2,292,342) | |
Net Loss Attributable to Hartford Great Health Corp | (468,409) | (301,956) | (1,637,227) | (1,786,445) | |
Total assets (excluding Intercompany balances) | 6,901,599 | 5,942,972 | 6,901,599 | 5,942,972 | $ 6,288,981 |
Hospitality [Member] | |||||
Revenue | 86,705 | 54,736 | |||
Operating loss | (225,567) | (1,606,339) | |||
Operating loss before tax | (132,291) | (2,108,568) | |||
Net Loss Attributable to Hartford Great Health Corp | (102,377) | (1,305,463) | |||
Total assets (excluding Intercompany balances) | 382,491 | 1,668,556 | 382,491 | 1,668,556 | |
Education [Member] | |||||
Revenue | 233,499 | 11,483 | |||
Operating loss | (1,864,038) | (559,073) | |||
Operating loss before tax | (1,863,698) | (58,815) | |||
Net Loss Attributable to Hartford Great Health Corp | (1,407,092) | (355,222) | |||
Total assets (excluding Intercompany balances) | 6,462,391 | 3,259,431 | 6,462,391 | 3,259,431 | |
Corporate and Unallocated [Member] | |||||
Revenue | |||||
Operating loss | (123,914) | (138,653) | |||
Operating loss before tax | (126,958) | (124,959) | |||
Net Loss Attributable to Hartford Great Health Corp | (127,758) | (125,760) | |||
Total assets (excluding Intercompany balances) | $ 56,717 | $ 1,014,985 | $ 56,717 | $ 1,014,985 |