Cover
Cover - shares | 9 Months Ended | |
Apr. 30, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --07-31 | |
Entity File Number | 333-213698 | |
Entity Registrant Name | Clancy Corp | |
Entity Central Index Key | 0001681769 | |
Entity Incorporation, State or Country Code | NV | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 153,105,464 | |
Entity Shell Company | true |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 204,517 | $ 21,821 |
Prepaid expenses | 697 | 7,677 |
Business advances | 81,324 | |
TOTAL CURRENT ASSETS | 205,214 | 110,822 |
OTHER ASSETS | ||
Prepaid expenses | 38,571 | |
Deposit - Rent | 14,844 | 13,714 |
Right of use asset, net | 122,093 | 155,602 |
TOTAL NONCURRENT ASSETS | 136,937 | 207,887 |
TOTAL ASSETS | 342,151 | 318,709 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,436 | 587 |
Advance from customers | 7,714 | |
Advance from customer - related party | 6,429 | |
Advances - Related Party | 219,432 | 263,037 |
Operating lease liability - current | 67,797 | 11,044 |
TOTAL CURRENT LIABILITIES | 288,665 | 288,811 |
Operating lease liability - non-current | 60,688 | 110,567 |
TOTAL LIABILITIES | 349,353 | 399,378 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Common stock, $0.001 par value; 153,105,464 shares and 3,105,250 shares issued and outstanding at April 30, 2021 and July 31, 2020 | 153,105 | 3,105 |
Additional Paid In Capital | 213,251 | 63,251 |
Accumulated other comprehensive income (Loss) | (3,059) | |
Accumulated deficit | (370,499) | (147,025) |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | (7,202) | (80,669) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ 342,151 | $ 318,709 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Apr. 30, 2021 | Jul. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 345,000,000 | 345,000,000 |
Common Stock, Shares issued | 153,105,464 | 3,105,250 |
Common Stock, Shares outstanding | 153,105,464 | 3,105,250 |
CONSOLIDATED STATEMENTS OF OPER
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] | ||||
REVENUE | $ 8,210 | $ 24,376 | ||
REVENUE - related party | 6,840 | 20,312 | ||
Total Revenues | 15,050 | 44,688 | ||
Cost of goods sold | 67,687 | 142,548 | ||
Gross profit | (52,638) | (97,861) | ||
EXPENSES | ||||
Research & development expense - software | 1,093 | 40,624 | ||
General and Administrative Expenses | 21,525 | 26,977 | 85,220 | 56,819 |
TOTAL OPERATING EXPENSES | 22,618 | 26,977 | 125,844 | 56,819 |
NET LOSS FROM CONTINUING OPERATIONS | (75,257) | (26,977) | (223,706) | (56,819) |
Non-operating income | ||||
Interest income | 196 | 231 | ||
Total non-operating income (loss), net | 196 | 231 | ||
Loss before income tax | (75,061) | (26,977) | (223,475) | (56,819) |
Provision for Income Taxes | ||||
NET INCOME (LOSS) | (75,061) | (26,977) | (223,475) | (56,819) |
Foreign currency translation loss | (1,144) | (3,059) | ||
COMPREHENSIVE LOSS | $ (76,205) | $ (26,977) | $ (226,534) | $ (56,819) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED | 153,105,464 | 3,105,250 | 73,435,134 | 3,105,250 |
NET LOSS PER COMMON SHARE - BASIC & DILUTED | $ 0 | $ (0.01) | $ 0 | $ (0.02) |
STATEMENT OF CASH FLOWS (Unaudi
STATEMENT OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (223,706) | $ (56,819) |
Adjustments to reconcile net cash used in operating activities: | ||
Lease expense | 49,392 | 4,860 |
Changes in Assets and Liabilities: | ||
Accounts receivable | 587 | |
Business advances | 10,422 | |
Prepaid expenses | 41,581 | |
Accounts payable | 800 | |
Advances from customers | (14,896) | |
Total Net Cash Used by Operating Activities operations | (136,584) | (52,016) |
FINANCING ACTIVITIES: | ||
Proceeds from shares issued for equity financing | 300,000 | |
Changes in due to related party | 17,565 | 54,457 |
Total Net cash used by financing activities | 317,565 | 54,457 |
Effects Of Exchange Rate Changes On Cash | 1,716 | |
NET INCREASE (DECREASE) IN CASH | 182,696 | 2,441 |
CASH AT BEGINNING OF PERIOD | 21,821 | |
CASH AT END OF PERIOD | 204,517 | 2,441 |
Supplemental Cashflow Information | ||
Interest Paid | ||
Taxes Paid | ||
Supplemental Disclosure of Non Cash Lease Activity | ||
Recognition of Right of use asset | 17,951 | |
Recognition of Lease liability | $ (17,951) |
STATEMENT OF CHANGES IN SHAREHO
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Beginning Balance at Jul. 31, 2019 | $ 3,105 | $ 63,251 | $ (67,508) | $ (1,152) | |
Beginning Balance (in shares) at Jul. 31, 2019 | 3,105,250 | ||||
Net Loss | (14,118) | (14,118) | |||
Ending Balance at Oct. 31, 2019 | $ 3,105 | 63,251 | (81,626) | (15,270) | |
Ending Balance (in shares) at Oct. 31, 2019 | 3,105,250 | ||||
Beginning Balance at Jul. 31, 2019 | $ 3,105 | 63,251 | (67,508) | (1,152) | |
Beginning Balance (in shares) at Jul. 31, 2019 | 3,105,250 | ||||
Net Loss | (56,819) | ||||
Shares Issued for Equity Financing | |||||
Currency translation adjustment | |||||
Ending Balance at Apr. 30, 2020 | $ 3,105 | 63,251 | (124,326) | (57,970) | |
Ending Balance (in shares) at Apr. 30, 2020 | 3,105,250 | ||||
Beginning Balance at Oct. 31, 2019 | $ 3,105 | 63,251 | (81,626) | (15,270) | |
Beginning Balance (in shares) at Oct. 31, 2019 | 3,105,250 | ||||
Net Loss | (15,723) | (15,723) | |||
Ending Balance at Jan. 31, 2020 | $ 3,105 | 63,251 | (97,349) | (30,993) | |
Ending Balance (in shares) at Jan. 31, 2020 | 3,105,250 | ||||
Net Loss | (26,977) | (26,977) | |||
Currency translation adjustment | |||||
Ending Balance at Apr. 30, 2020 | $ 3,105 | 63,251 | (124,326) | (57,970) | |
Ending Balance (in shares) at Apr. 30, 2020 | 3,105,250 | ||||
Beginning Balance at Jul. 31, 2020 | $ 3,105 | 63,251 | (147,025) | (80,669) | |
Beginning Balance (in shares) at Jul. 31, 2020 | 3,105,250 | ||||
Net Loss | (68,517) | (68,517) | |||
Currency translation adjustment | (1,824) | (1,824) | |||
Ending Balance at Oct. 31, 2020 | $ 3,105 | 63,251 | (1,824) | (215,542) | (151,010) |
Ending Balance (in shares) at Oct. 31, 2020 | 3,105,250 | ||||
Beginning Balance at Jul. 31, 2020 | $ 3,105 | 63,251 | (147,025) | (80,669) | |
Beginning Balance (in shares) at Jul. 31, 2020 | 3,105,250 | ||||
Net Loss | (223,475) | ||||
Shares Issued for Equity Financing | 300,000 | ||||
Currency translation adjustment | (3,059) | ||||
Ending Balance at Apr. 30, 2021 | $ 153,105 | 213,251 | (3,059) | (370,500) | (7,202) |
Ending Balance (in shares) at Apr. 30, 2021 | 153,105,464 | ||||
Beginning Balance at Oct. 31, 2020 | $ 3,105 | 63,251 | (1,824) | (215,542) | (151,010) |
Beginning Balance (in shares) at Oct. 31, 2020 | 3,105,250 | ||||
Net Loss | (79,898) | (79,898) | |||
Rounding of shares due to stock split (in shares) | 214 | ||||
Shares Issued for Equity Financing | $ 150,000 | 150,000 | 300,000 | ||
Shares Issued for Equity Financing (in shares) | 150,000,000 | ||||
Currency translation adjustment | (91) | (91) | |||
Ending Balance at Jan. 31, 2021 | $ 153,105 | 213,251 | (1,915) | (295,439) | 69,002 |
Ending Balance (in shares) at Jan. 31, 2021 | 153,105,464 | ||||
Net Loss | (75,061) | (75,061) | |||
Currency translation adjustment | (1,144) | (1,144) | |||
Ending Balance at Apr. 30, 2021 | $ 153,105 | $ 213,251 | $ (3,059) | $ (370,500) | $ (7,202) |
Ending Balance (in shares) at Apr. 30, 2021 | 153,105,464 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 9 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS Clancy Corp. (“Company”) was incorporated on March 22, 2016 under the laws of the State of Nevada, USA. On April 13, 2020, the Company registered Shanghai Clancy Enterprise Management Co., Ltd. (Shanghai Clancy) as a wholly foreign-owned entity and as a wholly owned subsidiary in Shanghai, China. Shanghai Clancy had no business activity from inception through April 30, 2021. On April 24, 2020, Shanghai Clancy registered Beijing Clancy Information Technology Co., Ltd. (Beijing Clancy) in Beijing as its wholly-owned subsidiary and a second tier subsidiary of the Company. From August 1, 2020 to April 30, 2021, the Company business centered on providing IT services to a small number of clients. Beginning in May 2021, the Company terminated its IT services and re-focused its business operations to business consulting services to small and median sized businesses. Management believes their prior business experience will enable them to assist small and medium sized companies improve their operating efficiencies. The Company will charge its clients based on their performance. Management believes the new business model will reduce internal overhead costs and potentially provide a larger market for its services. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 2 – GOING CONVERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Although Beijing Clancy started business operation and had generated revenue for the nine and three months ended April 30, 2021, the Company incurred loss, an accumulated deficit and experienced negative cash flow from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Mr. Meng, the major stockholder, Chief Executive Officer and sole director of Company, verbally has agreed to provide continued financial support to the Company. The Company’s business objective for the next twelve month and beyond such time will be to expand business operations and increase revenue. The Company will focus on product management, digital marketing, refined user operations, performance optimization, after-sales service, etc. to provide customers with more convenient and high- quality service experience. The Covid-19 pandemic presents novel challenges and a chaotic business environment globally. The duration and intensity of the impact of the Covid-19 to business entities differ geographically. Covid-19 has a limited impact on the Company’s activities since Shanghai Clancy has no activities and Beijing Clancy operations are limited to Beijing, PRC. The impact on the Company’s result of operation and the financial statements was immaterial as of April 30, 2021. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Clancy Corp. and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Fiscal year end The Company’s year-end is July 31. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with original maturities of three months or less. Because of short maturity of these investments, the carrying amounts approximate their fair values. Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to cash and cash equivalents. Balances at financial institutions and state-owned banks within the PRC are covered by insurance up to RMB 500,000 (US$77,000) per bank. Balances at Federal Deposit Insurance Corporation (“FDIC”) insured bank in US are covered by insurance up to $250,000 per depositor per insured-bank. As of April 30, 2021, cash held in the PRC bank of approximately $122,213 was not covered by the insurance. The Company has not experienced any losses in such accounts in the PRC. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities recognized at April 30, 2021 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to recognize operating lease ROU assets and liabilities arising from short-term leases. Advance from Customers - Contract Liability On July 29, 2020, the Company entered into three-year service maintenance agreements with three customers. The three service maintenance agreements total 1,188,000 RMB to be received over the three-year period. The contracts require three months of upfront payments each quarter, totaling 99,000 RMB per quarter. The Company’s performance obligation will be satisfied on a monthly basis and the upfront payments will be recognized as revenue, pro rata on a monthly basis, over each fiscal quarter. For the nine and three months period ended April 30, 2021, the company recognized revenue of $44,687 and $15,050, respectively. One of the service maintenance agreements is with a company that is controlled by a supervising officer of Beijing Clancy and thus is deemed to be a related party. The total value of this particular service maintenance agreement is 540,000 RMB, payable quarterly with upfront quarterly payments of 45,000 RMB. The Company recently determined to re-focus is business strategy and direction. As a result, the Company has ceased its IT service maintenance agreements with its customers effective April 30, 2021 and re-focused its business operations to business consulting services to small and median sized businesses. Management believes their prior business experience will enable them to assist small and medium sized companies improve their operating efficiencies. The Company will charge its clients based on their performance. Management believes the new business model will reduce internal overhead costs and potentially provide a larger market for its services. Basic Income (Loss) Per Share The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. In the nine and three months ended April 30, 2021 and 2020, there were no potentially dilutive equity instruments issued or outstanding. Foreign Currency Translation and Comprehensive Income (Loss) The Company’s functional currency is the Renminbi (“RMB”). For financial reporting purposes, RMB were translated into United States Dollars (“USD” or “$”) as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income.” Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company follows FASB ASC Topic 220, “Comprehensive Income.” The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the consolidated financial statements were as follows: April 30, 2021 April 30, 2020 Period end USD: RMB exchange rate 6.6462 7,0571 Average USD: RMB exchange rate 6.4672 7.0141 Financial Instrument The carrying value of the Company’s short-term financial instruments, such as prepaid expenses, security deposit, accounts payable and advances, approximates their fair values because of their short maturities. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718, “Compensation – Stock Compensation”, which requires that share-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. To date, the Company has not adopted a stock option plan and has not granted any stock options. Recently Adopted Accounting Pronouncements As of April 30, 2021 and for the period then ended, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted As of April 30, 2021, there was no recently issued accounting standards adopted which would have a material effect on the Company’s consolidated financial statements. |
OPERATING LEASE RIGHT-OF- USE A
OPERATING LEASE RIGHT-OF- USE ASSETS | 9 Months Ended |
Apr. 30, 2021 | |
Notes to Financial Statements | |
OPERATING LEASE RIGHT-OF- USE ASSETS | NOTE 4 - OPERATING LEASE RIGHT-OF-USE ASSETS As of April 30, 2021, the total operating lease Right of Use assets were $122,093. The total operating lease cost was $49,392 and $4,860, respectively, for the nine-month period ended April 30, 2021 and 2020. The total operating lease cost was $16,481 and $1,620, respectively, for the three-month period ended April 30, 2021 and 2020. |
LEASE LIABILITIES- OPERATING LE
LEASE LIABILITIES- OPERATING LEASE | 9 Months Ended |
Apr. 30, 2021 | |
Notes to Financial Statements | |
LEASE LIABILITIES- OPERATING LEASE | NOTE 5 - LEASE LIABILITIES- OPERATING LEASE Future minimum lease payments under the operating lease as of April 30, 2021 are: 12 months ended April 30, 2022 $ 75,577 12 months ended April 30, 2023 64,237 Total Lease payments 139,814 Less Imputed Interest (11,329 ) Net Lease liability $ 128,485 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Apr. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 - RELATED PARTY TRANSACTIONS The Company’s major shareholder has orally agreed to loan funds to the Company for its operations on an as needed basis. For the nine months ended April 30, 2021 and 2020, the major shareholder loaned the Company $17,565 and 54,457, respectively. As of April 30, 2021 and July 31, 2020, the balance owing the major shareholder was $219,432 and $263,037, respectively. The loan is interest free and unsecured and had no stated terms of repayment. |
RESEARCH AND DEVELOPMENT EXPENS
RESEARCH AND DEVELOPMENT EXPENSE | 9 Months Ended |
Apr. 30, 2021 | |
Notes to Financial Statements | |
RESEARCH AND DEVELOPMENT EXPENSE | NOTE 7 - RESEARCH AND DEVELOPMENT EXPENSE As of April 30, 2021, the Company fully expensed the cost of development of software prepaid to a third party in the amount of $40,624 due to termination of the service. The research and development expense – software development was $40,624 and 0 for the nine months ended April 30, 2021 and 2020, respectively. The research and development expense – software development was $1,093 and $0 for the three months ended April 30, 2021 and 2020, reprehensively. |
CONTRACT LIABILITY
CONTRACT LIABILITY | 9 Months Ended |
Apr. 30, 2021 | |
Notes to Financial Statements | |
CONTRACT LIABILITY | NOTE 8 - ADVANCE FROM CUSTOMERS - CONTRACT LIABILITY At the beginning of the quarter ended April 30, 2021, the Company had $15,299 advance from customers for service to be performed, of which, $6,954 was from a related party. At the ended of the quarter, we applied the advances to the revenue for this quarter, so as of April 30, 2021, the balance was zero. As of July 31, 2020, the Company had $14,143 advance from customers for service to be performed, of which, $6,429 was from a related party. |
SHARES ISSUED FOR EQUITY FINANC
SHARES ISSUED FOR EQUITY FINANCING | 9 Months Ended |
Apr. 30, 2021 | |
Notes to Financial Statements | |
SHARES ISSUED FOR EQUITY FINANCING | NOTE 9 - SHARES ISSUED FOR EQUITY FINANCING In December 2020, the Company issued 150,000,000 shares of common stock of the Company to five individuals including the Company’s CEO, at $0.002 per share. The Company received proceeds of $300,000 from this private placement. As of April 30, 2021 and July 31, 2020, the shares out issued and standing were 153,105,464 and 3,105,250, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10 - INCOME TAXES Income tax expense was $0 for the nine and there months ended April 30, 2021 and 2020. As of April 30, 2021, the Company had no unrecognized tax benefits and, accordingly, the Company did not recognize interest or penalties during the nine and three months ended April 30, 2021 related to unrecognized tax benefits. There was no accrual for uncertain tax positions as of April 30, 2021. There is no income tax benefit for the losses for the nine and three months ended April 30, 2021 and 2020, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 - SUBSEQUENT EVENTS Management has evaluated subsequent events through the date of filing the financial statements with the Securities and Exchange Commission, the date the financial statements were available to be issued. Management is not aware of any reportable events that occurred subsequent to the balance sheet date up to the date of filing this report. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Apr. 30, 2021 | |
Basis Of Presentation And Summary Of Significant Accounting Policies | |
Basis of presentation | Basis of Presentation The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Clancy Corp. and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. |
Fiscal year end | Fiscal year end The Company’s year-end is July 31. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with original maturities of three months or less. Because of short maturity of these investments, the carrying amounts approximate their fair values. |
Concentration of Credit Risk | Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to cash and cash equivalents. Balances at financial institutions and state-owned banks within the PRC are covered by insurance up to RMB 500,000 (US$77,000) per bank. Balances at Federal Deposit Insurance Corporation (“FDIC”) insured bank in US are covered by insurance up to $250,000 per depositor per insured-bank. As of April 30, 2021, cash held in the PRC bank of approximately $122,213 was not covered by the insurance. The Company has not experienced any losses in such accounts in the PRC. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities recognized at April 30, 2021 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to recognize operating lease ROU assets and liabilities arising from short-term leases. |
Contract Liabilities | Advance from Customers - Contract Liability On July 29, 2020, the Company entered into three-year service maintenance agreements with three customers. The three service maintenance agreements total 1,188,000 RMB to be received over the three-year period. The contracts require three months of upfront payments each quarter, totaling 99,000 RMB per quarter. The Company’s performance obligation will be satisfied on a monthly basis and the upfront payments will be recognized as revenue, pro rata on a monthly basis, over each fiscal quarter. For the nine and three months period ended April 30, 2021, the company recognized revenue of $44,687 and $15,050, respectively. One of the service maintenance agreements is with a company that is controlled by a supervising officer of Beijing Clancy and thus is deemed to be a related party. The total value of this particular service maintenance agreement is 540,000 RMB, payable quarterly with upfront quarterly payments of 45,000 RMB. The Company recently determined to re-focus is business strategy and direction. As a result, the Company has ceased its IT service maintenance agreements with its customers effective April 30, 2021 and re-focused its business operations to business consulting services to small and median sized businesses. Management believes their prior business experience will enable them to assist small and medium sized companies improve their operating efficiencies. The Company will charge its clients based on their performance. Management believes the new business model will reduce internal overhead costs and potentially provide a larger market for its services. |
Basic Income (Loss) Per Share | Basic Income (Loss) Per Share The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. In the nine and three months ended April 30, 2021 and 2020, there were no potentially dilutive equity instruments issued or outstanding. |
Comprehensive Income | Foreign Currency Translation and Comprehensive Income (Loss) The Company’s functional currency is the Renminbi (“RMB”). For financial reporting purposes, RMB were translated into United States Dollars (“USD” or “$”) as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income.” Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company follows FASB ASC Topic 220, “Comprehensive Income.” The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the consolidated financial statements were as follows: April 30, 2021 April 30, 2020 Period end USD: RMB exchange rate 6.6462 7,0571 Average USD: RMB exchange rate 6.4672 7.0141 |
Financial Instruments | Financial Instrument The carrying value of the Company’s short-term financial instruments, such as prepaid expenses, security deposit, accounts payable and advances, approximates their fair values because of their short maturities. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718, “Compensation – Stock Compensation”, which requires that share-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. To date, the Company has not adopted a stock option plan and has not granted any stock options. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements As of April 30, 2021 and for the period then ended, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted As of April 30, 2021, there was no recently issued accounting standards adopted which would have a material effect on the Company’s consolidated financial statements. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Disclosure Summary Of Significant Accounting Policies Tables Abstract | |
Schedule of exchange rates | The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the consolidated financial statements were as follows: April 30, 2021 April 30, 2020 Period end USD: RMB exchange rate 6.6462 7,0571 Average USD: RMB exchange rate 6.4672 7.0141 |
LEASE LIABILITIES- OPERATING _2
LEASE LIABILITIES- OPERATING LEASE (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Notes to Financial Statements | |
Schedule of Future minimum lease payments | Future minimum lease payments under the operating lease as of April 30, 2021 are: 12 months ended April 30, 2022 $ 75,577 12 months ended April 30, 2023 64,237 Total Lease payments 139,814 Less Imputed Interest (11,329 ) Net Lease liability $ 128,485 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Apr. 30, 2021 | Apr. 30, 2020 |
Period end USD: RMB exchange rate | ||
Exchange Rate | 6.6462 | 7.0571 |
Average USD: RMB exchange rate | ||
Exchange Rate | 6.4672 | 7.0141 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Apr. 30, 2021USD ($) |
Industrial and Commercial Bank of China Limited | |
Bank Deposits | $ 122,213 |
OPERATING LEASE RIGHT-OF- USE_2
OPERATING LEASE RIGHT-OF- USE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Jul. 31, 2020 | |
Notes to Financial Statements | |||||
Operating lease right of use Assets | $ 122,093 | $ 122,093 | $ 155,602 | ||
Operating Lease Cost | $ 16,481 | $ 1,620 | $ 49,392 | $ 4,860 |
LEASE LIABILITIES- OPERATING _3
LEASE LIABILITIES- OPERATING LEASE (Details) | Apr. 30, 2021USD ($) |
Notes to Financial Statements | |
2022 | $ 75,577 |
2023 | 64,237 |
Total Lease payments | 139,814 |
Less: Imputed interest | (11,329) |
Net Lease Payment | $ 128,485 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Apr. 30, 2021 | Jul. 31, 2020 |
Related Party Transactions [Abstract] | ||
Due to Related Party | $ 219,432 | $ 263,037 |
RESEARCH AND DEVELOPMENT EXPE_2
RESEARCH AND DEVELOPMENT EXPENSE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Notes to Financial Statements | ||||
Research & development expense - software | $ 1,093 | $ 40,624 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Disclosure Income Taxes Details Abstract | ||||
Total income tax expense |