Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Mar. 31, 2023 | Jul. 31, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | Wah Fu Education Group Ltd. | |
Trading Symbol | WAFU | |
Document Type | 20-F | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 4,410,559 | |
Amendment Flag | false | |
Entity Central Index Key | 0001716770 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-38619 | |
Entity Incorporation, State or Country Code | D8 | |
Entity Address, Address Line One | L207b | |
Entity Address, Address Line Two | Hesheng Fortune Plaza | |
Entity Address, Address Line Three | No.13 Deshengmenwai StreetXicheng District | |
Entity Address, City or Town | Beijing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100088 | |
Title of 12(b) Security | Ordinary shares, par value US$0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Financial Statement Error Correction [Flag] | false | |
Document Accounting Standard | U.S. GAAP | |
Auditor Name | YCM CPA, Inc. | |
Auditor Firm ID | 6781 | |
Auditor Location | California | |
Business Contact | ||
Document Information Line Items | ||
Entity Address, Address Line One | L207b | |
Entity Address, Address Line Two | Hesheng Fortune Plaza | |
Entity Address, Address Line Three | No.13 Deshengmenwai StreetXicheng District | |
Entity Address, City or Town | Beijing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100088 | |
Contact Personnel Name | Yang Yu | |
City Area Code | + 86 | |
Local Phone Number | 10 57925024 | |
Contact Personnel Fax Number | + 86 10 85171378 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
CURRENT ASSETS: | ||
Cash | $ 12,567,463 | $ 11,763,445 |
Accounts receivable, net | 793,212 | 1,712,430 |
Other receivables, net | 251,953 | 320,784 |
Loan to third parties, current | 551,930 | 569,532 |
Loan to related parties | 1,761,979 | 1,745,479 |
Other current assets | 69,104 | 90,630 |
TOTAL CURRENT ASSETS | 15,995,641 | 16,202,300 |
Loan to third parties, noncurrent | 171,004 | 149,673 |
Property and equipment, net | 495,255 | 572,734 |
Intangible assets, net | 54,382 | 137,993 |
Long-term investments | 12,277 | |
Operating lease right-of-use assets | 391,189 | 158,697 |
Long-term rent deposit | 56,040 | 72,409 |
Deferred tax assets, net | 374,681 | 697,823 |
TOTAL ASSETS | 17,538,192 | 18,003,906 |
CURRENT LIABILITIES: | ||
Due to related parties | 315,512 | 315,512 |
Deferred revenue | 2,110,628 | 3,980,132 |
Operating lease liabilities, current | 210,274 | 136,467 |
Taxes payable | 1,119,601 | 983,869 |
Other payables | 136,110 | 199,066 |
Accrued expenses and other liabilities | 179,440 | 263,927 |
Accounts payable | 233,473 | 108,730 |
TOTAL CURRENT LIABILITIES | 4,305,038 | 5,987,703 |
Operating lease liabilities, noncurrent | 203,171 | 6,063 |
TOTAL LIABILITIES | 4,508,209 | 5,993,766 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, $0.01 par value, 30,000,000 shares authorized; 4,440,085 shares issued and outstanding as of March 31, 2023 and 2022, respectively | 44,401 | 44,401 |
Additional paid-in capital | 5,123,941 | 4,798,793 |
Statutory reserve | 867,530 | 657,329 |
Retained earnings | 6,417,842 | 5,722,151 |
Accumulated other comprehensive loss | (752,391) | (1,190) |
Total shareholders’ equity | 11,701,323 | 11,221,484 |
Non-controlling interest | 1,328,660 | 788,656 |
TOTAL SHAREHOLDERS’ EQUITY | 13,029,983 | 12,010,140 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 17,538,192 | $ 18,003,906 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock , par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock , shares authorized | 30,000,000 | 30,000,000 |
Common stock , shares issued | 4,440,085 | 4,440,085 |
Common stock , shares outstanding | 4,440,085 | 4,440,085 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | |||
REVENUE | $ 10,692,613 | $ 11,474,348 | $ 8,515,561 |
COST OF REVENUE AND RELATED TAX | |||
Cost of revenue | 4,971,492 | 5,951,550 | 3,949,667 |
Business and sales related tax | 34,218 | 62,181 | 47,431 |
GROSS PROFIT | 5,686,903 | 5,460,617 | 4,518,463 |
OPERATING EXPENSES | |||
Selling expenses | 1,129,146 | 1,547,665 | 1,270,582 |
General and administrative expenses | 2,545,789 | 2,872,208 | 2,156,879 |
Total operating expenses | 3,674,935 | 4,419,873 | 3,427,461 |
INCOME FROM OPERATIONS | 2,011,968 | 1,040,744 | 1,091,002 |
OTHER INCOME (EXPENSES) | |||
Interest income | 139,345 | 122,182 | 127,136 |
Loss from long-term investment | (43,785) | ||
Other income (expenses) | (4,556) | (21,510) | (17,043) |
Total other income (expenses), net | 91,004 | 100,672 | 110,093 |
INCOME BEFORE INCOME TAX PROVISION | 2,102,972 | 1,141,416 | 1,201,095 |
PROVISION FOR INCOME TAX | 430,529 | 238,885 | 180,334 |
NET INCOME | 1,672,443 | 902,531 | 1,020,761 |
Less: net income attributable to non-controlling interest | 766,551 | 159,396 | 341,086 |
NET INCOME ATTRIBUTABLE TO WAH FU EDUCATION GROUP LIMITED | 905,892 | 743,135 | 679,675 |
COMPREHENSIVE INCOME (LOSS) | |||
Net income | 1,672,443 | 902,531 | 1,020,761 |
Other comprehensive (loss) income: foreign currency translation | (752,987) | 299,185 | 488,534 |
Total comprehensive income | 919,456 | 1,201,716 | 1,509,295 |
Less: Comprehensive (loss) income attributable to non-controlling interest | (1,786) | 22,195 | 32,686 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO WAH FU EDUCATION GROUP LIMITED | $ 921,242 | $ 1,179,521 | $ 1,477,986 |
Earnings per common share - basic and diluted (in Dollars per share) | $ 0.2 | $ 0.17 | $ 0.16 |
Weighted average shares outstanding - basic and diluted (in Shares) | 4,440,085 | 4,435,164 | 4,381,033 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | |||
Earnings (loss) per common share diluted | $ 0.20 | $ 0.17 | $ 0.16 |
Weighted average shares diluted | 4,440,085 | 4,435,164 | 4,381,033 |
Consolidation Statements of Cha
Consolidation Statements of Changes in Equity - USD ($) | Ordinary Shares | Additional Paid-in Capital | Statutory Reserve | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Shareholders' Equity | Non-controlling Interest | Total |
Balance at Mar. 31, 2020 | $ 43,810 | $ 4,799,384 | $ 231,424 | $ 4,723,999 | $ (734,028) | $ 9,064,589 | $ 234,540 | $ 9,299,129 |
Balance (in Shares) at Mar. 31, 2020 | 4,381,033 | |||||||
Common stock issued | ||||||||
Net income | 681,051 | 681,051 | 339,710 | 1,020,761 | ||||
Appropriation of statutory reserve | 92,396 | (92,396) | ||||||
Foreign currency translation loss | 455,848 | 455,848 | 32,686 | 488,534 | ||||
Balance at Mar. 31, 2021 | $ 43,810 | 4,799,384 | 323,820 | 5,312,654 | (278,180) | 10,201,488 | 606,936 | 10,808,424 |
Balance (in Shares) at Mar. 31, 2021 | 4,381,033 | |||||||
Common stock issued | $ 591 | (591) | ||||||
Common stock issued (in Shares) | 59,052 | |||||||
Net income | 743,006 | 743,006 | 159,525 | 902,531 | ||||
Appropriation of statutory reserve | 333,509 | (333,509) | ||||||
Foreign currency translation loss | 276,990 | 276,990 | 22,195 | 299,185 | ||||
Balance at Mar. 31, 2022 | $ 44,401 | 4,798,793 | 657,329 | 5,722,151 | (1,190) | 11,221,484 | 788,656 | 12,010,140 |
Balance (in Shares) at Mar. 31, 2022 | 4,440,085 | |||||||
Increase ownership of a subsidiary | 325,148 | 325,148 | (224,761) | 100,387 | ||||
Net income | 905,892 | 905,892 | 766,551 | 1,672,443 | ||||
Appropriation of statutory reserve | 210,201 | (210,201) | ||||||
Foreign currency translation loss | (751,201) | (751,201) | (1,786) | (752,987) | ||||
Balance at Mar. 31, 2023 | $ 44,401 | $ 5,123,941 | $ 867,530 | $ 6,417,842 | $ (752,391) | $ 11,701,323 | $ 1,328,660 | $ 13,029,983 |
Balance (in Shares) at Mar. 31, 2023 | 4,440,085 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | |||
Net Income | $ 1,672,443 | $ 902,531 | $ 1,020,761 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 176,243 | 179,207 | 195,239 |
Amortization of right-of-use assets | 234,115 | 134,137 | 246,010 |
Loss from disposal of property and equipment | 938 | 4,043 | |
Provision for doubtful accounts | 537,018 | 400,876 | 136,805 |
Loss from long-term investments | 12,277 | ||
Interest income | (49,422) | (50,155) | (68,151) |
Deferred tax expense (benefit) | 270,090 | (36,670) | (333,045) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 252,307 | (132,914) | (1,422,278) |
Other receivable | 55,174 | (95,273) | 20,902 |
Other current assets | 14,588 | 51,982 | 16,670 |
Long-term rent deposit | 9,173 | (80,245) | |
Deferred revenue | (1,566,977) | (296,570) | 2,406,401 |
Taxes payable | 211,911 | 244,627 | 359,779 |
Other payable | (60,289) | 76,219 | (82,135) |
Operating lease liabilities | (196,848) | (140,783) | (251,795) |
Accountants payable and accrued expenses | 48,932 | (175,255) | 163,222 |
Net cash provided by operating activities | 1,612,500 | 1,075,175 | 2,328,140 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (37,237) | (34,996) | (74,236) |
Proceeds from loans to third parties | 2,919 | 6,856 | |
Payments made for loans to third parties | (29,190) | (28,894) | |
Payments made for loans to a related party | (1,650,000) | 2,458,553 | |
Purchase of ownership of a subsidiary | 100,384 | ||
Net cash provided by (used in) investing activities | 36,876 | (1,678,140) | 2,355,423 |
Cash flows from financing activities: | |||
Advances from related parties | (17,657) | 11,312 | |
Net cash provided by financing activities | (17,657) | 11,312 | |
Effect of exchange (loss) gain on cash | (845,358) | 330,052 | 525,249 |
Net increase (decrease) in cash | 804,018 | (290,570) | 5,220,124 |
Cash at beginning of the year | 11,763,445 | 12,054,015 | 6,833,891 |
Cash at end of the year | 12,567,463 | 11,763,445 | 12,054,015 |
Supplemental cash flow information | |||
Cash paid for income taxes | 33,631 | 13,719 | 174,056 |
Non-cash investing activities | |||
Right of use assets obtained in exchange for operating lease obligations | $ 478,269 | $ 837,146 | $ 805,546 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Mar. 31, 2023 | |
Organization and Business Description [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | NOTE 1 – ORGANIZATION AND BUSINESS DESCRIPTION Wah Fu Education Group Limited (“Wah Fu”) was incorporated under the laws of the British Virgin Islands on July 23, 2012. Wah Fu is a holding company whose primary purpose is to develop business opportunities in the People’s Republic of China (“PRC” or “China”). Wah Fu Education Holding Limited (“Wah Fu Holding”) is a wholly-owned subsidiary of Wah Fu, which was established on May 19, 2016 in Hong Kong, China. Wah Fu Holding was dissolved on April 23, 2021. In December 2012, Wah Fu acquired 100% equity interest of Beijing Huaxia Dadi Distance Learning Services Co., Ltd. (“Distance Learning”) and its Variable Interest Entity (“VIE”), Beijing Huaxia Dadi Digital Information Technology Co., Ltd (“Digital Information”), with a consideration totalling Chinese Renminbi (“RMB”) 2,000,000 (approximately $0.3 million). Distance Learning is a Chinese nation-wide online education services provider founded on December 23, 1999. Digital Information is a technological development and operation services provider founded on September 14, 2000. Due to PRC legal restrictions on foreign ownership and investment in, among other areas, value-added telecommunications services, which include internet content providers, or ICPs, Wah Fu cannot have a direct ownership in Digital Information. As an alternative, Distance Learning entered into a series of contractual agreements with the owners of Digital Information. These agreements include an Exclusive Business Cooperation Agreement, an Equity Interest Pledge Agreement, an Exclusive Option Agreement and Powers of Attorney. Pursuant to the above agreements, Distance Learning has the exclusive right to provide Digital Information consulting services related to business operations including technology and management. All the above contractual agreements obligate Distance Learning to absorb a majority of the risk of loss from Digital Information’s activities and entitle Distance Learning to receive a majority of their residual returns. In essence, Distance Learning has gained effective control over Digital Information. Therefore, the Company believes that Digital Information should be considered as VIE under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation”. Accordingly, the accounts of Digital Information are consolidated with those of Distance Learning and ultimately are consolidated into those of Wah Fu. On July 20, 2015, Wah Fu established Shanghai Xin Fu Network Technology Co., Ltd. (“Shanghai Xin Fu”), a wholly foreign-owned enterprise (the “WFOE”) under the laws of the PRC. Shanghai Xin Fu owns 100% equity interest of Shanghai Xia Shu Network Technology Co., Ltd, (“Shanghai Xia Shu”), a company formed on April 29, 2016 under the laws of PRC. On June 15, 2015, Hunan Huafu Haihui Learning Technology Co., Ltd. (“Hunan Huafu”) was incorporated in Hunan Province, China. Shanghai Xia Shu owned 75% equity interest of Hunan Huafu, and the other 25% equity interest is owned by two unrelated individual shareholders. On September 9, 2019, Shanghai Xia Shu transferred 75% equity interest of Hunan Huafu to Digital Information with a consideration of RMB 100 (approximately $14). On March 8, 2017, Nanjing Suyun Education Technology Co., Ltd. (“Nanjing Suyun”) was founded in Jiangsu Province, China. Distance Learning owns 70% equity interest of Nanjing Suyun, and the other 30% equity interest is owned by an individual shareholder. On March 15, 2017, Huaxia MOOC Internet Technology Co., Ltd. (“Huaxia MOOC”) was founded in Hubei Province, China. Distance Learning owns 51% equity interest of Huaxia MOOC, and the other 49% equity interest is owned by three unrelated individual shareholders, respectively. On January 31, 2023, Distance Learning, our wholly owned subsidiary, signed an equity transfer agreement with Hubei Education Investment Co., Ltd. (“Hubei Education”) to acquire the 20% equity interests of Huaxia MOOC Internet Technology Co., Ltd. (“Huaxia MOOC”) owned by Hubei Education. The total consideration of the acquisition was RMB 714,984 (approximately $100,388). After the transaction, the Distance Learning’s equity interest of Huaxia MOOC increased from 51% to 71%. On April 25, 2017, Guizhou Huafu Qianyun Network Technology Co., Ltd. (“Guizhou Huafu”) was established in Guizhou Province, China. Distance Learning owns 51% equity interest of Guizhou Huafu, and the other 49% equity interest is owned by a third party company. On May 21, 2018, Fuzhou Huafu Mingjiao Technology Co., Ltd. (“Fuzhou Huafu”) was established in Fujian Province, China. Distance Learning owns 65% equity interest of Fuzhou Huafu, and three individual shareholders own 25%, 6% and 4% equity interest of Fuzhou Huafu, respectively. On June 26, 2018, Liaoning Huafu Zhongtai Learning Technology Co., Ltd. (“Liaoning Huafu”) was established in Liaoning Province, China. Digital information owns 70% equity interest of Liaoning Huafu, and a third party company and one individual shareholder own 25% and 5% equity interest of Liaoning Huafu, respectively. Liaoning Huafu was dissolved in June, 2022. On August 14, 2019, Guangxi Huafu Quanping Education Technology Cot., Ltd. (“Guangxi Huafu”) was established in Guangxi Province, China. Distance Learning owns 55% equity interest of Guangxi Huafu, and the other 45% equity interest is owned by a third party company. Guangxi Huafu was dissolved on March 17, 2022. On October 21, 2019, Huafu Wanrun (Guangzhou) Education Technology Co., Ltd. (“Guangzhou Huafu”), was established in Guangdong Province, China. Digital Information owns 60% equity interest of Guangzhou Huafu, and the other 40% equity interest is owned by two individual shareholders. On November 8, 2019, Sichuan Huafu Gengyun Education Technology Co., Ltd. (“Sichuan Huafu”), was established in Sichuan Province, China. Digital Information owns 60% equity interest of Sichuan Huafu, in December 2021, Digital information was entrusted another 10% equity interest form an individual shareholder, after the Digital Information owned 70% equity interest of Sichuan Huafu. The other 30% equity interest is owned by one individual shareholder. On July 4, 2022, Chongqing HuafuYuyun NetworkTechnology Co.,Ltd (“Chongqing Huafu”), was established in Chongqing Province, China. Distance Learning owns 55% equity interest of Chongqing Huafu, and the other 45% equity interest is owned by a third party company Wah Fu, its subsidiaries and its subsidiary’s consolidated VIE (collectively, the “Company”) are primarily engaged in providing online education services and technological development and operation services in China. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of Wah Fu, its subsidiaries and its subsidiary’s VIE. All inter-company balances and transactions have been eliminated upon consolidation. Company Date of Place of Percentage of Principal activities Subsidiaries: Wah Fu Holding* May 19, 2016 Hong Kong, PRC 100% Holding Company Distance Learning December 23, 1999 Mainland, PRC 100% Provider of online education services and technological development and operation services Shanghai Xin Fu July 20, 2015 Mainland, PRC 100% Inactive Shanghai Xia Shu April 29, 2016 Mainland, PRC 100% Inactive Hunan Huafu June 15, 2015 Mainland, PRC 75% Provider of online education services Nanjing Suyun March 8, 2017 Mainland, PRC 70% Provider of online education services Huaxia MOOC March 15, 2017 Mainland, PRC 71% Provider of online education services Guizhou Huafu April 25, 2017 Mainland, PRC 51% Provider of online education services Fuzhou Huafu May 21, 2018 Mainland, PRC 65% Provider of online education services Liaoning Huafu ** June 26, 2018 Mainland, PRC 70% Provider of online education services Guangxi Huafu *** August 14, 2019 Mainland, PRC 55% Inactive Guangzhou Huafu October 21, 2019 Mainland, PRC 60% Provider of online education services Sichuan Huafu November 8, 2019 Mainland, PRC 70% Provider of online education services Chongqing Huafu July 4, 2022 Mainland, PRC 55% Provider of online education services Variable interest entity Digital Information September 14, 2000 Mainland, PRC Nil Provider of technological development and operation service and holder of Internet Content Provider (“ICP”) License * Wah Fu Holding was dissolved on April 23, 2021. ** Liaoning Huafu was dissolved on June 27, 2022. *** Guangxi Huafu was dissolved on March 17, 2022. Consolidation of Variable Interest Entities In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The VIE with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company has determined that Distance Learning is the primary beneficiary of Digital Information’s risks and rewards. The following tables set forth the assets, liabilities, results of operations and changes in cash of the VIE, Digital Information, which were included in the Company’s consolidated balance sheets, statements of operations and comprehensive loss and cash flows: As of As of Current assets $ 430,150 $ 580,823 Non-current assets 16,866 145,711 Total assets 447,016 726,534 Current liabilities 252,446 598,354 Intercompany payables* 3,156,235 3,513,846 Total liabilities 3,408,681 4,112,200 Net assets $ (2,961,665 ) $ (3,385,666 ) * Intercompany payables are eliminated upon consolidation. For the Years Ended March 31, March 31, March 31, Revenue* $ 708,503 $ 829,928 $ 514,888 Net Income (loss) $ 119,846 $ 36,181 $ (114,129 ) * Intercompany sales are eliminated upon consolidation. For the Years Ended March 31, March 31, March 31, Net cash (used in) provided by operating activities* $ (89,131 ) $ 252,880 $ 92,187 Net cash used in investing activities (5,437 ) - (1,252 ) Effect of exchange (loss) gain on cash (39,585 ) 11,562 15,091 Net (decrease) increase in cash $ (134,153 ) $ 264,442 $ 106,026 * Intercompany operating activities are eliminated upon consolidation. Non-controlling interests U.S. GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheets. In addition, the amounts attributable to the net income of those subsidiaries are reported separately in the consolidated statements of operations and comprehensive income (loss). Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include the allowances for doubtful accounts, valuation allowance for deferred tax assets, estimated useful lives and fair value in connection with the impairment of property and equipment, and lease assumptions. Actual results could differ from these estimates. Reclassifications Certain items in the financial statements of comparative period have been reclassified to conform to the financial statements for the current period. The reclassification has no impact on the total assets and total liabilities as of March 31, 2023 and 2022 or on the statements of operations for the years ended March 31, 2023, 2022 and 2021. Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. As of March 31, 2023 and 2022, the Company had no cash equivalents. The Company maintains its cash with various financial institutions mainly in the mainland China and Hong Kong Special Administrative Region of PRC (the “Hong Kong”). Cash maintained in banks within the People’s Republic of China of less than RMB0.5 million (equivalent to $72,805) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. Balances in banks in Hong Kong are insured by Hong Kong Deposit Board and subject to a certain limitation. Accounts receivable, net Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually grants credit to customers with good credit standing with a maximum of 90 days. As China’s online education market is intensely competitive in recent years, in order to retain existing and attract new universities, educational institutions and technological service customers to capture additional market share, the Company extends more credit sales with longer credit terms to certain customers which have a well-established business relationship with the Company for more than five years. As of March 31, 2023 and 2022, the accounts receivable were $0.8 million d $1.71 million respectively. As of March 31, 2023 and 2022, no accounts receivable were due from customers accounting for 10% or more of total outstanding receivables nor 10% or more of total revenues. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collections. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of March 31, 2023 and 2022, the allowances for doubtful accounts were $535,767 and $1,122,743, respectively. Accounts receivable aging consisted of the following: As of As of Less than 12 months $ 1,220,327 $ 1,723,099 More than 12 months 108,652 1,112,074 Less: allowance for doubtful accounts (535,767 ) (1,122,743 ) Total accounts receivable, net $ 793,212 $ 1,712,430 Loans to third parties Loans to third parties are cash advances mainly used for short-term funding to unrelated companies with which the Company has business relationships. To earn interest income with relatively low risk, the Company provided loans from time to time. The interest rate of these loans was 6% per annum. Loans to third parties are reviewed periodically as to whether their carrying values remain realizable. Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on a straight-line basis, less estimated residual value, over an asset’s estimated useful life. Following are the estimated useful lives of the Company’s property and equipment: Estimated Buildings 20 years Electronic equipment 4 - 5 years Office equipment and furniture 4 - 5 years Motor vehicles 4 - 5 years Leasehold improvements The shorter of the lease term and useful life Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of operations and comprehensive income (loss) in other income or expenses. Capitalized software development costs The Company capitalizes the costs incurred during the application development stage, which include direct costs mainly consisting of payroll and payroll related taxes and benefits. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon the completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable that the expenditures will result in additional features and functionality. Maintenance costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally five years. Impairment of long-lived assets The Company assesses its long-lived assets such as property and equipment for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Factors which may indicate potential impairment include a significant underperformance related to the historical or projected future operating results or a significant negative industry or economic trend. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If property and equipment and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds their fair value. The Company did not record any impairment loss on its long-lived assets during the years ended March 31, 2023, 2022 and 2021. Revenue recognition The Company previously recognized revenue when the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the service has been rendered, (iii) the fees are fixed or determinable, and (iv) collectability is reasonably assured. On April 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (FASB ASC Topic 606) (“ASC 606”) using the modified retrospective method under which cumulative effects are recognized at the date of the initial application of ASC 606. With the adoption of ASC 606, revenue is recognized when all of the following five steps are met: (i) identify the contract(s) with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; (v) recognize revenue when (or as) each performance obligation is satisfied. The Company believes that its current revenue recognition policies are generally consistent with the new revenue recognition standards set forth in ASC 606. Based on the Company’s assessment, potential adjustments to input measures are not expected to be pervasive to the majority of its contracts. As such, the Company has concluded that the adoption of this new guidance will not result in a material cumulative catch-up adjustment to the opening balance sheet or retained earnings at the effective date or any other material impact on its consolidated financial statements. Online education service The online education services provided by the Company to its customers are an integrated service, including audio-video course content, mock examinations and online chat rooms during the subscription service period. Audio-video course content, mock examinations and online chat rooms are not practical to be sold on standalone basis and have never been sold separately. Therefore, the Company’s contracts have a single performance obligation for an integrated service and the transaction price is stated in the contracts, usually as a price per student or course. Quantity of students enrolled or courses provided is determined before rendering service. The Company typically satisfies its performance obligations in contracts with customers upon render of the services. For examination service, the revenue is recognized at a point in time when customer/student completes the examination on the platform. At this point in time, customer/student is able to direct use of and obtain substantially all of the benefits from the online education platform at the time the services are delivered. Except examination service, all other revenues for the online education service are recognized on a straight line basis over the subscription period from the month in which students enroll in the courses to the month in which the subscriptions expire. The subscription period for a majority of the online education services is six months or less. Customer/student can access to the courses. anytime during the subscription period. The online education services include online education cloud services (“B2B2C”), which are provided through educational institutions to individual students, the study period depends on their universities and college usually from 6 months to 5 years, and online training services (“B2C”), which are provided to students directly, valid period for the B2C is 6 months. B2C services can be cancelled and is refundable no later than 24 hours after enrollment. B2B2C services cannot be cancelled and is not refundable after enrollment. All estimates are based on the Company’s historical experience, complete satisfaction of the performance obligation, and the Company’s best judgment at the time the estimates are made. Returns and allowances are not a significant aspect of the revenue recognition process as historically they have been immaterial. Technological development and operation service Revenues from technological development service, including information technology system design and cloud platform development, are recognized when the system or platform are delivered and accepted by the customers. , normally within a year. Upon delivery of services, project completion inspection and customer acceptance notice are required as proof of the completion of performance obligations, which is a confirmation of customer to its ability to direct the use of and obtain substantially all of the benefits from, the design and development service. In instances where substantive completion inspection and customer acceptance provisions are specified in contracts, revenues are deferred until all inspection and acceptance criteria have been met. From time to time, the Company enters into arrangement to provide technological support and maintenance service of online platforms to its customers. the Company’s efforts are expended evenly throughout the service period. The revenues for the technological support and maintenance service are recognized over the support and maintenance services period, usually from 3 months to one year. The Company’s contracts have a single performance obligation and are primarily on a fixed-price basis. No significant returns, refund and other similar obligations during each reporting period. The core principle underlying the revenue recognition ASU is that the Company will recognize revenue to represent the transfer of services to customers in an amount that reflects the consideration to which the Company expects to be entitled to in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when services are provided to a customer. The Company’s accounts receivable consists primarily of receivables related to providing online education services to enrolled students, and contract receivable associated with providing technological development and operation services to education institutions, in which the Company’s contracted performance obligations have been satisfied, amount billed and the Company has an unconditional right to payment. Payment terms and conditions vary by contract types. For most of B2B2C contracts and technical development and operation service contracts, payment is due from customers within 30 days of the invoice date, and the contracts do not have significant financing components. The Company’s revenue is recognized when control of the promised services is rendered over the service period and the payment from customers is not contingent on a future event, and the Company’s right to consideration in exchange for services that the Company has transferred to a customer is only conditioned on the passage of time. Therefore, the Company does not have any contract assets. The Company also does not have significant capitalized commissions or other costs as of March 31, 2023 and 2022. The Company’s contract liability, which is reflected in its consolidated balance sheets as deferred revenue, represents the Company’s unsatisfied performance obligations as of March 31, 2023 and 2022. This is primarily composed of revenue for online course tuition received in advance from B2C services and B2B2C services. If a course is provided over a period end, deferred revenue is recorded for the revenue related to the course conducted in the next period. Normally, B2C service provides service to students directly, they can choose the courses they need on our platform, the valid period for the B2C service is 6 months, and thus the deferred revenue for B2C service is recognized as revenue within 6 months. However, we have treated deferred revenue for B2B2C with a longer recognition period which will be recognized from 6 months to 5 years. Such variance in B2B2C recognition of deferred revenue is due to a student’s university and college degree length; this ranges from 6 months to 5 years, and online training services, which are provided to students directly, has period of 6 months. Such deferred revenue consists primarily of revenues from online education services. Costs cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations). Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position as of March 31, 2023 and 2022. Value added tax (“VAT”) Sales revenue derived from the invoiced online education service, and technological development and operation service is subject to VAT since 2014. Prior to that, the Company was subject to a fixed rate of business tax of 3%. The applicable VAT rates are 6% and 3% for the entities that are general taxpayer and small-scale taxpayer, respectively. Distance Learning and Digital Information are both considered VAT general taxpayers since June 2015. Hunan Huafu became to a VAT general taxpayer since August 2018. Shanghai Xia Shu, Shanghai Xin Fu, Nanjing Suyun, Guizhou Huafu, Fuzhou Huafu, Liaoning Huafu, Sichuan Huafu, Guangzhou Huafu and Chongqing Huafu are VAT small-scale taxpayers since the date of incorporation. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of taxes payable on the consolidated balance sheets. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. Leases On April 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). For all leases that were entered into prior to the effective date of Topic 842, the Company elected to apply the package of practical expedients. Based on this guidance the Company did not reassess the following: (1) whether any expired or existing contracts are or contain leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. The adoption of Topic 842 did not have a material impact on the Company’s consolidated statements of operations and comprehensive income (loss). The adoption of Topic 842 resulted in the presentation of approximately $47,000 of operating lease assets and operating lease liabilities on the consolidated balance sheet as of April 1, 2019. See Note 9 for additional information. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities, current, and operating lease liabilities, non-current on the Company’s consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s 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 minimum lease payments is recognized on a straight-line basis over the lease term. Foreign currency translation Since the Company operates in the PRC, the Company’s functional currency is the Chinese RMB. The Company’s consolidated financial statements have been translated into the reporting currency, the United States Dollar (“USD”). Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income (loss). Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the result of operations. RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. Earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss). Fair value of financial instruments The Company follows the provisions of FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, accounts receivable, other receivables, loans to third parties, current, other current assets, deferred offering costs, due to related parties, deferred revenue, operating lease liabilities, current, taxes payable, other payables, accrued expenses and other liabilities approximate their fair value based on the short-term maturity of these instruments. Risks and uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other factors, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, this may not be indicative of future results. Concentrations and credit risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2023 and 2022, $1,511,208 and $1,940,850 of the Company’s cash were on deposits at financial institutions in Hong Kong, are insured by Hong Kong Deposit Board and subject to a certain limitation of HKD 500,000 (about $63,695). As of March 31, 2023 and 2022, $11,056,255 and $9,821,654 of the Company’s cash were on deposits at financial institutions in the mainland China, where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. Customer and supplier concentration risk The Company’s revenues are derived from enrolled students or institutions that are located primarily in China. For the year ended March 31, 2023, 2022 and 2021, no customers accounted for over 10% of the Company’s total revenue. As of March 31, 2023 and 2022, no customer accounted for 10% of the total outstanding accounts receivable balance, respectively. As of March 31, 2021, one customer accounted for 10.4% of the total outstanding accounts receivable balance, respectively. For the years ended March 31, 2023, 2022 and 2021, no suppliers accounted for more than 10% of total purchases. A loss of either of these customers or suppliers could adversely affect the operating results or cash flows of the Company. Statements of cash flows In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the Company’s statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Recent accounting pronouncements The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 – ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: As of As of Accounts receivable $ 1,328,980 $ 2,835,173 Less: allowance for doubtful accounts (535,768 ) (1,122,743 ) Total accounts receivable, net $ 793,212 $ 1,712,430 Provisions for doubtful accounts was $535,768, $1,122,743 and $693,639 for the years ended March 31, 2023, 2022 and 2021. |
Loans to Third Pairties, Net
Loans to Third Pairties, Net | 12 Months Ended |
Mar. 31, 2023 | |
Loans to Third Pairties, Net [Abstract] | |
LOANS TO THIRD PAIRTIES, NET | NOTE 4 – LOANS TO THIRD PAIRTIES, NET Loans to third parties consisted of the following: As of As of Loans to third parties, current: Beijing Chuangyouyi Education Technology Co.,Ltd (a) $ 88,760 $ 96,157 Beijing Dejinbao Mining Engineering Co., Ltd (b) 524,201 566,377 Guizhou Shunxincheng Human Resources Co., Ltd - 3,155 Individual Person (c) 27,729 - Loans to third parties, noncurrent: Beijing Dejinbao Mining Engineering Co., Ltd (b) 171,004 149,673 Less: allowance for doubtful accounts Beijing Chuangyouyi Education Technology Co.,Ltd (a) (88,760 ) (96,157 ) Total loan to third parties, net $ 722,934 $ 719,205 (a) On December 25, 2017, Distance Learning loaned RMB 600,000 (USD 88,760 as of March 31, 2023) to Beijing Chuangyouyi Education Technology Co.,Ltd (“Chuangyouyi”). The loan bears an interest rate of 6% and is not guaranteed. The maturity was December 24, 2018. Chuangyouyi did not repay upon maturity, the Company has fully accrued allowance for the balance. (b) On September 5, 2017, Distance Learning loaned RMB3,000,000 (USD 436,834 as of March 31, 2023) to Beijing Dejinbao Mining Engineering Co., Ltd (“Dejinbao”). The loan bears an interest rate of 6% and is not guaranteed. The original maturity was September 5, 2019, and was later extended to September 5, 2023. On September 27, 2018, Distance Learning loaned an additional RMB600,000 (USD 87,367 as of March 31, 2023) to Dejinbao. The loan bears an interest rate of 6% and is not guaranteed. The maturity of the loan is September 26, 2024. (c) On February 13, 2023, Distance Learning loaned RMB200,000 (USD 27,729 as of March 31, 2023) to a third part. The loan to an individual person is unsecured, non-interest bearing and due on demand. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Mar. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5 – PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: As of As of Buildings $ 484,951 $ 525,365 Electronic equipment 128,047 132,650 Office equipment and furniture 224,364 252,097 Motor vehicles 179,613 169,216 Software 364,979 395,395 Leasehold improvements 168,762 182,827 Subtotal 1,550,716 1,657,550 Less: accumulated depreciation and amortization (1,001,079 ) (946,823 ) Property and equipment, net $ 549,637 $ 710,727 Depreciation and amortization expense were $176,243, $179,207, $195,239 and for the years ended March 31, 2023, 2022 and 2021, respectively. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Mar. 31, 2023 | |
Investments in Unconsolidated Entities [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 6 – LONG-TERM INVESTMENTS The Company’s investments in unconsolidated entities consisted of the following: As of As of March 31, March 31, 2023 2022 Equity investments without readily determinable fair value: Beijing Tianyuebowen Science and Technology Co., Ltd. (a) $ 131,050 $ 141,972 Zhongtai International Education Technology (Beijing) Co., Ltd. (b) 145,611 157,746 Impairment of investments in unconsolidated entities Beijing Tianyuebowen Science and Technology Co., Ltd. (a) (131,050 ) (129,695 ) Zhongtai International Education Technology (Beijing) Co., Ltd. (b) (145,611 ) (157,746 ) Total $ - $ 12,277 (a) On June 2, 2016, the Company invested RMB 0.9 million (approximately $0.14 million as of March 31, 2022) in exchange for 10% equity interest of Tianyuebowen through its related party, Beijing Haohua Haofu Investment Co., Ltd. (“Haohua Haofu”). Haohua Haofu signed the investment agreement on behalf of Digital Information and transferred 10% ownership of Tianyuebowen to the Company subsequently. RMB 0.9 million was paid in full by the Company in June 2016. Due to the continual losses of Tianyuebowen, the company believes that the probability of recovering the investment in Tianyuebowen is low. Therefore the balance of $131,050 investment in Beijing Tianyuebowen is fully impaired in fiscal year 2023. (b) On August 15, 2016, the Company invested RMB 1.0 million (approximately $0.15 million as of March 31, 2022) in exchange for 15% equity interest of Zhongtai International Education Technology (Beijing) Co., Ltd. (“Zhongtai”) through Haohua Haofu. Haohua Haofu signed the investment agreement on behalf of Digital Information and transferred the 15% ownership of Zhongtai to the Company subsequently. RMB 1.0 million was paid in full by the Company in August 2016. Due to the continual losses of Zhongta, the company believes that the probability of recovering the investment in Zhongta is low. Therefore the balance of $145,611 investment in Zhongtai is fully impaired in fiscal year 2023. |
Related Parties Blalance
Related Parties Blalance | 12 Months Ended |
Mar. 31, 2023 | |
Related Parties Blalance [Abstract] | |
RELATED PARTIES BLALANCE | NOTE 7 – RELATED PARTIES BLALANCE The Company’s related parties balance consisted of the following: (i) Loan to related parties: As of As of Loan to related parties(a) $ 1,761,979 $ 1,745,479 (a) The balance is due from Horwath Capital Consultants Limited (“Horwath Capital”), to which the Company’s chairman serves as a director. On November 1, 2019 and December 4, 2019 the Company loaned $851,825 and $1,650,000 to Horwath Capital, respectively. The loan bears an interest rate of 4% and is not guaranteed. The maturity was July 31, 2020. On July 20, 2020 and March 30, 2021, Horwath Capital fully repaid $851,825 and $1,650,000 to the Company, respectively. On April 1, 2022 and April 7, 2022 the company loaned $300,000 and $1,350,000 to Horwath Capital. The loan bears an interest rate of 1% and is not guaranteed. The maturity was September 30, 2023. (ii) Due to related party: As of As of Due to shareholders $ 315,512 $ 315,512 Due to key management personnel - - Due to related parties $ 315,512 $ 315,512 (b) The balance of due to shareholders mainly due to the principal shareholders of the Company who provide funds for the Company’s operations. The payables are unsecured, non-interest bearing and due on demand. |
Taxes
Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Taxes [Abstract] | |
TAXES | NOTE 8 – TAXES Corporate Income Taxes (“CIT”) The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled. Wah Fu is an offshore holding company and is not subject to tax on income or capital gains under the laws of the British Virgin Islands. Wah Fu Holding was incorporated in Hong Kong and is subject to Hong Kong corporate income tax at a rate of 8.25% on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits over HK$2,000,000. Distance Learning was registered in the PRC and is subject to corporate income tax at a reduced rate of 15% starting from 2014, when it was approved by local government as a High-technology Company. The certificate of High-technology Company will expire in December 2023. Hunan Huafu, Shanghai Xia Shu, Shanghai Xin Fu, Nanjing Suyun, Guizhou Huafu, Fuzhou Huafu, Laoning Huafu, Guangxi Huafu, Sichuan Huafu and Guangzhou Huafu were registered in the PRC and are subject to corporate income tax at a reduced rate of 10% starting from the inception dates when they were approved by local government as small-scaled minimal profit enterprises. Huaxia MOOC was subject to corporate income tax at a reduced rate of 10% from the inception date till the end of 2019. The income tax rate increased to 25% since 2020. Digital Information was registered in the PRC and is subject to corporate income tax at the rate of 25%. (i) The components of the income tax expense (benefit) are as follows: For the Years Ended March 31, 2023 2022 2021 Current income tax provision $ 160,439 $ 275,555 $ 513,379 Deferred income tax provision (benefit) 270,090 (36,670 ) (333,045 ) Total $ 430,529 $ 238,885 $ 180,334 (ii) The following table summarizes deferred tax assets resulting from differences between the financial reporting basis and tax basis of assets and liabilities: As of As of Allowance for doubtful accounts $ 95,025 $ 200,262 Deferred revenue 280,531 517,578 Net operating loss carry-forwards - 2,602 Total deferred tax asset 375,556 720,442 Valuation allowance (875 ) (22,619 ) Deferred tax assets, net $ 374,681 $ 697,823 According to Chinese tax regulations, net operating loss (“NOL”) can be carried forward to offset operating income for five years. A valuation allowance is established for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that the realization of future deductions is uncertain. Management performs an assessment over future taxable income to analyse whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. As of March 31, 2023 and 2022, valuation allowance accrued for deferred tax assets was $875 and $31,564, respectively. (iii) The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the years ended March 31, 2023, 2022 and 2021: For the Years Ended March 31, March 31, March 31, Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (a) (7.7 )% (6.8 )% (7.9 )% Permanent difference 0.3 % 0.5 % 0.8 % Change in valuation allowance 1.2 % 2.2 % (2.9 )% Effective tax rate 18.8 % 20.9 % 15.0 % (a) Distance Learning is subject to a favorable tax rate of 15%; Shanghai Xia Shu, Shanghai Xin Fu, Hunan Huafu, Nanjing Suyun, Guizhou Huafu, Fuzhou Huafu and Chonqqing Huafu are subject to a favorable tax rate of 10%. Taxes payable Taxes payable consisted of the following: As of As of Income tax payable $ 1,054,177 $ 935,630 Value added tax payable 54,296 40,604 Other taxes payable 11,128 7,636 Total $ 1,119,601 $ 983,869 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 9 – LEASES On April 1, 2019, the Company adopted ASU 2016-02, Leases (ASC Topic 842). For all leases that were entered into prior to the effective date of Topic 842, the Company elected to apply the package of practical expedients. The Company leases office space under non-cancelable operating leases, with terms typically ranging from one to four years. The Company determines whether an arrangement is or includes an embedded lease at contract inception. Operating lease assets and lease liabilities are recognized at commencement date and initially measured based on the present value of lease payments over the defined lease term. Lease expense is recognized on a straight-line basis over the lease term. The components of lease expense were as follows: March 31, Operating lease cost $ 413,445 Weighted Average Remaining Lease Term (Months) Operating leases 26 Weighted Average Discount Rate Operating leases 4.75 % Maturities of lease liabilities were as follows: Twelve months ending March 31, 2024 $ 213,482 2025 170,067 2026 38,652 Total Lease Payments 422,201 Less Imputed Interest (8,756 ) Total $ 413,445 |
Equity
Equity | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 10 – EQUITY Ordinary shares On April 29, 2019, the Company announced the closing of its initial public offering of 1,181,033 ordinary shares at a public offering price of $5.00 per share, generating total gross proceeds of approximately $5.9 million before deducting underwriting discounts, commissions and other related expenses. The shares began trading on the NASDAQ Capital Market on Tuesday, April 30, 2019 under the ticker symbol “WAFU”. On April 1, 2021 the underwriter elects to exercise the purchase warrants which the company offering to the underwriter for initial public offering services (see Note 10-Warrants issued for service). The total exercise shares should be 29,526 at a price of $6.25 per share used cashless method. Due to a calculation mistake the company erroneously issued 59,052 shares to the underwriter. Base on the negotiation with the underwriter, the 29,526 shares returned to the Company on June 20, 2023. As a result, the Company had 30,000,000 authorized ordinary shares, $0.01 par value per share, of which 4,440,085 shares issued and outstanding as of March 31, 2023 and 2022. Statutory reserves The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the surplus reserve are made at the discretion of the Board of Directors. As of March 31, 2023 and 2022, the balances of statutory reserves were $867,530 and $657,329, respectively. Warrants issued for services According to the underwriting agreement which singed on August 2, 2018, on April 16, 2019, the company issued warrants to underwriter (Network 1 Financial Securities, Inc.) and its employees to purchased 59,052 ordinary shares at an exercise price of 125% of the IPO price, namely $6.25 dollars per share, at any time or from time to time from August 13, 2019 (the “Exercise Date”), and at or before 5:00 p.m., Eastern time, February 14, 2022 (the “Expiration Date”). On April 1, 2021 the underwriter elects to exercise the purchase warrants which the company offering to the underwriter for initial public offering services. The total exercise shares are 59,052 at a price of $6.25 per share used cashless method. The total exercise shares should be 29,526 at a price of $6.25 per share used cashless method. Due to a calculation mistake the company erroneously issued 59,052 shares to the underwriter. Base on the negotiation with the underwriter, the 29,526 shares returned to the Company on June 20, 2023. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 11 – SEGMENT REPORTING ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products. Based on management’s assessment, the Company has determined that it has two operating segments: online education services, and technological development and operation service. Our online education segment consists of two types of online services: Online Education Cloud Service (“B2B2C”) and Online Training Service (“B2C”). The following tables present summary information by segment for the years ended March 31, 2023, 2022 and 2021, respectively: For the Year Ended March 31, March 31, March 31, Revenue from Online Education Service Revenue from B2B2C Service $ 10,358,996 $ 10,154,357 $ 7,601,430 Revenue from B2C Service 149,877 1,014,815 657,019 Revenue from Technological Development and Operation Service 183,740 305,176 257,112 Total $ 10,692,613 $ 11,474,348 $ 8,515,561 All the Company’s revenue was generated from its business operation in China. For the Year Ended March 31, 2023 Online Technological Total Revenue $ 10,508,873 $ 183,740 $ 10,692,613 Cost of revenue and related tax 4,904,801 100,909 5,005,710 Gross profit $ 5,604,072 $ 82,831 $ 5,686,903 Depreciation and amortization $ 173,214 $ 3,029 $ 176,243 Total capital expenditures $ 37,237 $ - $ 37,237 For the Year Ended March 31, 2022 Online Technological Total Revenue $ 11,169,172 $ 305,176 $ 11,474,348 Cost of revenue and related tax 5,833,319 180,412 6,013,731 Gross profit $ 5,335,853 $ 124,764 $ 5,460,617 Depreciation and amortization $ 173,952 $ 5,255 $ 179,207 Total capital expenditures $ 34,996 $ - $ 34,996 For the Year Ended March 31, 2021 Online Technological Total Revenue $ 8,258,449 $ 257,112 $ 8,515,561 Cost of revenue and related tax 3,692,683 304,415 3,997,098 Gross profit $ 4,565,766 $ (47,303 ) $ 4,518,463 Depreciation and amortization $ 189,407 $ 5,832 $ 195,239 Total capital expenditures $ 72,984 $ 1,252 $ 74,236 As of As of Total assets: Online Education Service $ 17,091,176 $ 17,277,372 Technological Development and Operation Service 447,016 726,534 Total Assets $ 17,538,192 $ 18,003,906 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 SUBSEQUENT EVENTS On April 3, 2023, Huaxia Dadi Distance Learning Services Co., Ltd. (“Distance Learning”), our wholly owned subsidiary, loaned RMB 20,000,000 (approximately $USD 2,912,226) without interest and on unguaranteed basis to Beijing Qinzaina Software Technology Co. Ltd. with a maturity date of September 30, 2023. On April 1, 2021, the underwriter elects to exercise the purchase warrants which the company offering to the underwriter for initial public offering services. The total exercise shares should be 29,526 at a price of $6.25 per share used cashless method. Due to a calculation mistake the company erroneously issued 59,052 shares to the underwriter. Base on the negotiation with the underwriter, the 29,526 shares returned to the Company on June 20, 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of Wah Fu, its subsidiaries and its subsidiary’s VIE. All inter-company balances and transactions have been eliminated upon consolidation. Company Date of Place of Percentage of Principal activities Subsidiaries: Wah Fu Holding* May 19, 2016 Hong Kong, PRC 100% Holding Company Distance Learning December 23, 1999 Mainland, PRC 100% Provider of online education services and technological development and operation services Shanghai Xin Fu July 20, 2015 Mainland, PRC 100% Inactive Shanghai Xia Shu April 29, 2016 Mainland, PRC 100% Inactive Hunan Huafu June 15, 2015 Mainland, PRC 75% Provider of online education services Nanjing Suyun March 8, 2017 Mainland, PRC 70% Provider of online education services Huaxia MOOC March 15, 2017 Mainland, PRC 71% Provider of online education services Guizhou Huafu April 25, 2017 Mainland, PRC 51% Provider of online education services Fuzhou Huafu May 21, 2018 Mainland, PRC 65% Provider of online education services Liaoning Huafu ** June 26, 2018 Mainland, PRC 70% Provider of online education services Guangxi Huafu *** August 14, 2019 Mainland, PRC 55% Inactive Guangzhou Huafu October 21, 2019 Mainland, PRC 60% Provider of online education services Sichuan Huafu November 8, 2019 Mainland, PRC 70% Provider of online education services Chongqing Huafu July 4, 2022 Mainland, PRC 55% Provider of online education services Variable interest entity Digital Information September 14, 2000 Mainland, PRC Nil Provider of technological development and operation service and holder of Internet Content Provider (“ICP”) License * Wah Fu Holding was dissolved on April 23, 2021. ** Liaoning Huafu was dissolved on June 27, 2022. *** Guangxi Huafu was dissolved on March 17, 2022. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The VIE with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company has determined that Distance Learning is the primary beneficiary of Digital Information’s risks and rewards. The following tables set forth the assets, liabilities, results of operations and changes in cash of the VIE, Digital Information, which were included in the Company’s consolidated balance sheets, statements of operations and comprehensive loss and cash flows: As of As of Current assets $ 430,150 $ 580,823 Non-current assets 16,866 145,711 Total assets 447,016 726,534 Current liabilities 252,446 598,354 Intercompany payables* 3,156,235 3,513,846 Total liabilities 3,408,681 4,112,200 Net assets $ (2,961,665 ) $ (3,385,666 ) * Intercompany payables are eliminated upon consolidation. For the Years Ended March 31, March 31, March 31, Revenue* $ 708,503 $ 829,928 $ 514,888 Net Income (loss) $ 119,846 $ 36,181 $ (114,129 ) * Intercompany sales are eliminated upon consolidation. For the Years Ended March 31, March 31, March 31, Net cash (used in) provided by operating activities* $ (89,131 ) $ 252,880 $ 92,187 Net cash used in investing activities (5,437 ) - (1,252 ) Effect of exchange (loss) gain on cash (39,585 ) 11,562 15,091 Net (decrease) increase in cash $ (134,153 ) $ 264,442 $ 106,026 * Intercompany operating activities are eliminated upon consolidation. |
Non-controlling Interests | Non-controlling interests U.S. GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheets. In addition, the amounts attributable to the net income of those subsidiaries are reported separately in the consolidated statements of operations and comprehensive income (loss). |
Uses of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include the allowances for doubtful accounts, valuation allowance for deferred tax assets, estimated useful lives and fair value in connection with the impairment of property and equipment, and lease assumptions. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain items in the financial statements of comparative period have been reclassified to conform to the financial statements for the current period. The reclassification has no impact on the total assets and total liabilities as of March 31, 2023 and 2022 or on the statements of operations for the years ended March 31, 2023, 2022 and 2021. |
Cash | Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. As of March 31, 2023 and 2022, the Company had no cash equivalents. The Company maintains its cash with various financial institutions mainly in the mainland China and Hong Kong Special Administrative Region of PRC (the “Hong Kong”). Cash maintained in banks within the People’s Republic of China of less than RMB0.5 million (equivalent to $72,805) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. Balances in banks in Hong Kong are insured by Hong Kong Deposit Board and subject to a certain limitation. |
Accounts receivable, net | Accounts receivable, net Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually grants credit to customers with good credit standing with a maximum of 90 days. As China’s online education market is intensely competitive in recent years, in order to retain existing and attract new universities, educational institutions and technological service customers to capture additional market share, the Company extends more credit sales with longer credit terms to certain customers which have a well-established business relationship with the Company for more than five years. As of March 31, 2023 and 2022, the accounts receivable were $0.8 million d $1.71 million respectively. As of March 31, 2023 and 2022, no accounts receivable were due from customers accounting for 10% or more of total outstanding receivables nor 10% or more of total revenues. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collections. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of March 31, 2023 and 2022, the allowances for doubtful accounts were $535,767 and $1,122,743, respectively. Accounts receivable aging consisted of the following: As of As of Less than 12 months $ 1,220,327 $ 1,723,099 More than 12 months 108,652 1,112,074 Less: allowance for doubtful accounts (535,767 ) (1,122,743 ) Total accounts receivable, net $ 793,212 $ 1,712,430 |
Loans to third parties | Loans to third parties Loans to third parties are cash advances mainly used for short-term funding to unrelated companies with which the Company has business relationships. To earn interest income with relatively low risk, the Company provided loans from time to time. The interest rate of these loans was 6% per annum. Loans to third parties are reviewed periodically as to whether their carrying values remain realizable. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on a straight-line basis, less estimated residual value, over an asset’s estimated useful life. Following are the estimated useful lives of the Company’s property and equipment: Estimated Buildings 20 years Electronic equipment 4 - 5 years Office equipment and furniture 4 - 5 years Motor vehicles 4 - 5 years Leasehold improvements The shorter of the lease term and useful life Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of operations and comprehensive income (loss) in other income or expenses. |
Capitalized software development costs | Capitalized software development costs The Company capitalizes the costs incurred during the application development stage, which include direct costs mainly consisting of payroll and payroll related taxes and benefits. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon the completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable that the expenditures will result in additional features and functionality. Maintenance costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally five years. |
Impairment of long-lived assets | Impairment of long-lived assets The Company assesses its long-lived assets such as property and equipment for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Factors which may indicate potential impairment include a significant underperformance related to the historical or projected future operating results or a significant negative industry or economic trend. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If property and equipment and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds their fair value. The Company did not record any impairment loss on its long-lived assets during the years ended March 31, 2023, 2022 and 2021. |
Revenue recognition | Revenue recognition The Company previously recognized revenue when the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the service has been rendered, (iii) the fees are fixed or determinable, and (iv) collectability is reasonably assured. On April 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (FASB ASC Topic 606) (“ASC 606”) using the modified retrospective method under which cumulative effects are recognized at the date of the initial application of ASC 606. With the adoption of ASC 606, revenue is recognized when all of the following five steps are met: (i) identify the contract(s) with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; (v) recognize revenue when (or as) each performance obligation is satisfied. The Company believes that its current revenue recognition policies are generally consistent with the new revenue recognition standards set forth in ASC 606. Based on the Company’s assessment, potential adjustments to input measures are not expected to be pervasive to the majority of its contracts. As such, the Company has concluded that the adoption of this new guidance will not result in a material cumulative catch-up adjustment to the opening balance sheet or retained earnings at the effective date or any other material impact on its consolidated financial statements. Online education service The online education services provided by the Company to its customers are an integrated service, including audio-video course content, mock examinations and online chat rooms during the subscription service period. Audio-video course content, mock examinations and online chat rooms are not practical to be sold on standalone basis and have never been sold separately. Therefore, the Company’s contracts have a single performance obligation for an integrated service and the transaction price is stated in the contracts, usually as a price per student or course. Quantity of students enrolled or courses provided is determined before rendering service. The Company typically satisfies its performance obligations in contracts with customers upon render of the services. For examination service, the revenue is recognized at a point in time when customer/student completes the examination on the platform. At this point in time, customer/student is able to direct use of and obtain substantially all of the benefits from the online education platform at the time the services are delivered. Except examination service, all other revenues for the online education service are recognized on a straight line basis over the subscription period from the month in which students enroll in the courses to the month in which the subscriptions expire. The subscription period for a majority of the online education services is six months or less. Customer/student can access to the courses. anytime during the subscription period. The online education services include online education cloud services (“B2B2C”), which are provided through educational institutions to individual students, the study period depends on their universities and college usually from 6 months to 5 years, and online training services (“B2C”), which are provided to students directly, valid period for the B2C is 6 months. B2C services can be cancelled and is refundable no later than 24 hours after enrollment. B2B2C services cannot be cancelled and is not refundable after enrollment. All estimates are based on the Company’s historical experience, complete satisfaction of the performance obligation, and the Company’s best judgment at the time the estimates are made. Returns and allowances are not a significant aspect of the revenue recognition process as historically they have been immaterial. Technological development and operation service Revenues from technological development service, including information technology system design and cloud platform development, are recognized when the system or platform are delivered and accepted by the customers. , normally within a year. Upon delivery of services, project completion inspection and customer acceptance notice are required as proof of the completion of performance obligations, which is a confirmation of customer to its ability to direct the use of and obtain substantially all of the benefits from, the design and development service. In instances where substantive completion inspection and customer acceptance provisions are specified in contracts, revenues are deferred until all inspection and acceptance criteria have been met. From time to time, the Company enters into arrangement to provide technological support and maintenance service of online platforms to its customers. the Company’s efforts are expended evenly throughout the service period. The revenues for the technological support and maintenance service are recognized over the support and maintenance services period, usually from 3 months to one year. The Company’s contracts have a single performance obligation and are primarily on a fixed-price basis. No significant returns, refund and other similar obligations during each reporting period. The core principle underlying the revenue recognition ASU is that the Company will recognize revenue to represent the transfer of services to customers in an amount that reflects the consideration to which the Company expects to be entitled to in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when services are provided to a customer. The Company’s accounts receivable consists primarily of receivables related to providing online education services to enrolled students, and contract receivable associated with providing technological development and operation services to education institutions, in which the Company’s contracted performance obligations have been satisfied, amount billed and the Company has an unconditional right to payment. Payment terms and conditions vary by contract types. For most of B2B2C contracts and technical development and operation service contracts, payment is due from customers within 30 days of the invoice date, and the contracts do not have significant financing components. The Company’s revenue is recognized when control of the promised services is rendered over the service period and the payment from customers is not contingent on a future event, and the Company’s right to consideration in exchange for services that the Company has transferred to a customer is only conditioned on the passage of time. Therefore, the Company does not have any contract assets. The Company also does not have significant capitalized commissions or other costs as of March 31, 2023 and 2022. The Company’s contract liability, which is reflected in its consolidated balance sheets as deferred revenue, represents the Company’s unsatisfied performance obligations as of March 31, 2023 and 2022. This is primarily composed of revenue for online course tuition received in advance from B2C services and B2B2C services. If a course is provided over a period end, deferred revenue is recorded for the revenue related to the course conducted in the next period. Normally, B2C service provides service to students directly, they can choose the courses they need on our platform, the valid period for the B2C service is 6 months, and thus the deferred revenue for B2C service is recognized as revenue within 6 months. However, we have treated deferred revenue for B2B2C with a longer recognition period which will be recognized from 6 months to 5 years. Such variance in B2B2C recognition of deferred revenue is due to a student’s university and college degree length; this ranges from 6 months to 5 years, and online training services, which are provided to students directly, has period of 6 months. Such deferred revenue consists primarily of revenues from online education services. Costs cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations). |
Income taxes | Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position as of March 31, 2023 and 2022. |
Value added tax (“VAT”) | Value added tax (“VAT”) Sales revenue derived from the invoiced online education service, and technological development and operation service is subject to VAT since 2014. Prior to that, the Company was subject to a fixed rate of business tax of 3%. The applicable VAT rates are 6% and 3% for the entities that are general taxpayer and small-scale taxpayer, respectively. Distance Learning and Digital Information are both considered VAT general taxpayers since June 2015. Hunan Huafu became to a VAT general taxpayer since August 2018. Shanghai Xia Shu, Shanghai Xin Fu, Nanjing Suyun, Guizhou Huafu, Fuzhou Huafu, Liaoning Huafu, Sichuan Huafu, Guangzhou Huafu and Chongqing Huafu are VAT small-scale taxpayers since the date of incorporation. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of taxes payable on the consolidated balance sheets. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Leases | Leases On April 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). For all leases that were entered into prior to the effective date of Topic 842, the Company elected to apply the package of practical expedients. Based on this guidance the Company did not reassess the following: (1) whether any expired or existing contracts are or contain leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. The adoption of Topic 842 did not have a material impact on the Company’s consolidated statements of operations and comprehensive income (loss). The adoption of Topic 842 resulted in the presentation of approximately $47,000 of operating lease assets and operating lease liabilities on the consolidated balance sheet as of April 1, 2019. See Note 9 for additional information. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities, current, and operating lease liabilities, non-current on the Company’s consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s 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 minimum lease payments is recognized on a straight-line basis over the lease term. |
Foreign currency translation | Foreign currency translation Since the Company operates in the PRC, the Company’s functional currency is the Chinese RMB. The Company’s consolidated financial statements have been translated into the reporting currency, the United States Dollar (“USD”). Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income (loss). Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the result of operations. RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss). |
Fair value of financial instruments | Fair value of financial instruments The Company follows the provisions of FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, accounts receivable, other receivables, loans to third parties, current, other current assets, deferred offering costs, due to related parties, deferred revenue, operating lease liabilities, current, taxes payable, other payables, accrued expenses and other liabilities approximate their fair value based on the short-term maturity of these instruments. |
Risks and uncertainties | Risks and uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other factors, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, this may not be indicative of future results. |
Concentrations and credit risk | Concentrations and credit risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2023 and 2022, $1,511,208 and $1,940,850 of the Company’s cash were on deposits at financial institutions in Hong Kong, are insured by Hong Kong Deposit Board and subject to a certain limitation of HKD 500,000 (about $63,695). As of March 31, 2023 and 2022, $11,056,255 and $9,821,654 of the Company’s cash were on deposits at financial institutions in the mainland China, where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. Customer and supplier concentration risk The Company’s revenues are derived from enrolled students or institutions that are located primarily in China. For the year ended March 31, 2023, 2022 and 2021, no customers accounted for over 10% of the Company’s total revenue. As of March 31, 2023 and 2022, no customer accounted for 10% of the total outstanding accounts receivable balance, respectively. As of March 31, 2021, one customer accounted for 10.4% of the total outstanding accounts receivable balance, respectively. For the years ended March 31, 2023, 2022 and 2021, no suppliers accounted for more than 10% of total purchases. A loss of either of these customers or suppliers could adversely affect the operating results or cash flows of the Company. |
Statements of cash flows | Statements of cash flows In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the Company’s statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Recent accounting pronouncements | Recent accounting pronouncements The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of subsidiaries and its subsidiary's VIE | Company Date of Place of Percentage of Principal activities Subsidiaries: Wah Fu Holding* May 19, 2016 Hong Kong, PRC 100% Holding Company Distance Learning December 23, 1999 Mainland, PRC 100% Provider of online education services and technological development and operation services Shanghai Xin Fu July 20, 2015 Mainland, PRC 100% Inactive Shanghai Xia Shu April 29, 2016 Mainland, PRC 100% Inactive Hunan Huafu June 15, 2015 Mainland, PRC 75% Provider of online education services Nanjing Suyun March 8, 2017 Mainland, PRC 70% Provider of online education services Huaxia MOOC March 15, 2017 Mainland, PRC 71% Provider of online education services Guizhou Huafu April 25, 2017 Mainland, PRC 51% Provider of online education services Fuzhou Huafu May 21, 2018 Mainland, PRC 65% Provider of online education services Liaoning Huafu ** June 26, 2018 Mainland, PRC 70% Provider of online education services Guangxi Huafu *** August 14, 2019 Mainland, PRC 55% Inactive Guangzhou Huafu October 21, 2019 Mainland, PRC 60% Provider of online education services Sichuan Huafu November 8, 2019 Mainland, PRC 70% Provider of online education services Chongqing Huafu July 4, 2022 Mainland, PRC 55% Provider of online education services Variable interest entity Digital Information September 14, 2000 Mainland, PRC Nil Provider of technological development and operation service and holder of Internet Content Provider (“ICP”) License * Wah Fu Holding was dissolved on April 23, 2021. ** Liaoning Huafu was dissolved on June 27, 2022. *** Guangxi Huafu was dissolved on March 17, 2022. |
Schedule of consolidated balance sheets | As of As of Current assets $ 430,150 $ 580,823 Non-current assets 16,866 145,711 Total assets 447,016 726,534 Current liabilities 252,446 598,354 Intercompany payables* 3,156,235 3,513,846 Total liabilities 3,408,681 4,112,200 Net assets $ (2,961,665 ) $ (3,385,666 ) * Intercompany payables are eliminated upon consolidation. |
Schedule of intercompany payables | For the Years Ended March 31, March 31, March 31, Revenue* $ 708,503 $ 829,928 $ 514,888 Net Income (loss) $ 119,846 $ 36,181 $ (114,129 ) * Intercompany sales are eliminated upon consolidation. |
Schedule of intercompany sales | For the Years Ended March 31, March 31, March 31, Net cash (used in) provided by operating activities* $ (89,131 ) $ 252,880 $ 92,187 Net cash used in investing activities (5,437 ) - (1,252 ) Effect of exchange (loss) gain on cash (39,585 ) 11,562 15,091 Net (decrease) increase in cash $ (134,153 ) $ 264,442 $ 106,026 * Intercompany operating activities are eliminated upon consolidation. |
Schedule of accounts receivable | As of As of Less than 12 months $ 1,220,327 $ 1,723,099 More than 12 months 108,652 1,112,074 Less: allowance for doubtful accounts (535,767 ) (1,122,743 ) Total accounts receivable, net $ 793,212 $ 1,712,430 |
Schedule of property and equipment | Estimated Buildings 20 years Electronic equipment 4 - 5 years Office equipment and furniture 4 - 5 years Motor vehicles 4 - 5 years Leasehold improvements The shorter of the lease term and useful life |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of accounts receivable | As of As of Accounts receivable $ 1,328,980 $ 2,835,173 Less: allowance for doubtful accounts (535,768 ) (1,122,743 ) Total accounts receivable, net $ 793,212 $ 1,712,430 |
Loans to Third Pairties, Net (T
Loans to Third Pairties, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Loans to Third Pairties, Net [Abstract] | |
Schedule of loans to third parties | As of As of Loans to third parties, current: Beijing Chuangyouyi Education Technology Co.,Ltd (a) $ 88,760 $ 96,157 Beijing Dejinbao Mining Engineering Co., Ltd (b) 524,201 566,377 Guizhou Shunxincheng Human Resources Co., Ltd - 3,155 Individual Person (c) 27,729 - Loans to third parties, noncurrent: Beijing Dejinbao Mining Engineering Co., Ltd (b) 171,004 149,673 Less: allowance for doubtful accounts Beijing Chuangyouyi Education Technology Co.,Ltd (a) (88,760 ) (96,157 ) Total loan to third parties, net $ 722,934 $ 719,205 (a) On December 25, 2017, Distance Learning loaned RMB 600,000 (USD 88,760 as of March 31, 2023) to Beijing Chuangyouyi Education Technology Co.,Ltd (“Chuangyouyi”). The loan bears an interest rate of 6% and is not guaranteed. The maturity was December 24, 2018. Chuangyouyi did not repay upon maturity, the Company has fully accrued allowance for the balance. (b) On September 5, 2017, Distance Learning loaned RMB3,000,000 (USD 436,834 as of March 31, 2023) to Beijing Dejinbao Mining Engineering Co., Ltd (“Dejinbao”). The loan bears an interest rate of 6% and is not guaranteed. The original maturity was September 5, 2019, and was later extended to September 5, 2023. On September 27, 2018, Distance Learning loaned an additional RMB600,000 (USD 87,367 as of March 31, 2023) to Dejinbao. The loan bears an interest rate of 6% and is not guaranteed. The maturity of the loan is September 26, 2024. (c) On February 13, 2023, Distance Learning loaned RMB200,000 (USD 27,729 as of March 31, 2023) to a third part. The loan to an individual person is unsecured, non-interest bearing and due on demand. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of property and equipment, net | As of As of Buildings $ 484,951 $ 525,365 Electronic equipment 128,047 132,650 Office equipment and furniture 224,364 252,097 Motor vehicles 179,613 169,216 Software 364,979 395,395 Leasehold improvements 168,762 182,827 Subtotal 1,550,716 1,657,550 Less: accumulated depreciation and amortization (1,001,079 ) (946,823 ) Property and equipment, net $ 549,637 $ 710,727 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Investments in Unconsolidated Entities [Abstract] | |
Schedule of investments in unconsolidated entities | As of As of March 31, March 31, 2023 2022 Equity investments without readily determinable fair value: Beijing Tianyuebowen Science and Technology Co., Ltd. (a) $ 131,050 $ 141,972 Zhongtai International Education Technology (Beijing) Co., Ltd. (b) 145,611 157,746 Impairment of investments in unconsolidated entities Beijing Tianyuebowen Science and Technology Co., Ltd. (a) (131,050 ) (129,695 ) Zhongtai International Education Technology (Beijing) Co., Ltd. (b) (145,611 ) (157,746 ) Total $ - $ 12,277 (a) On June 2, 2016, the Company invested RMB 0.9 million (approximately $0.14 million as of March 31, 2022) in exchange for 10% equity interest of Tianyuebowen through its related party, Beijing Haohua Haofu Investment Co., Ltd. (“Haohua Haofu”). Haohua Haofu signed the investment agreement on behalf of Digital Information and transferred 10% ownership of Tianyuebowen to the Company subsequently. RMB 0.9 million was paid in full by the Company in June 2016. Due to the continual losses of Tianyuebowen, the company believes that the probability of recovering the investment in Tianyuebowen is low. Therefore the balance of $131,050 investment in Beijing Tianyuebowen is fully impaired in fiscal year 2023. (b) On August 15, 2016, the Company invested RMB 1.0 million (approximately $0.15 million as of March 31, 2022) in exchange for 15% equity interest of Zhongtai International Education Technology (Beijing) Co., Ltd. (“Zhongtai”) through Haohua Haofu. Haohua Haofu signed the investment agreement on behalf of Digital Information and transferred the 15% ownership of Zhongtai to the Company subsequently. RMB 1.0 million was paid in full by the Company in August 2016. Due to the continual losses of Zhongta, the company believes that the probability of recovering the investment in Zhongta is low. Therefore the balance of $145,611 investment in Zhongtai is fully impaired in fiscal year 2023. |
Related Parties Blalance (Table
Related Parties Blalance (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Related Parties Blalance [Abstract] | |
Schedule of loan to related parties | As of As of Loan to related parties(a) $ 1,761,979 $ 1,745,479 (a) The balance is due from Horwath Capital Consultants Limited (“Horwath Capital”), to which the Company’s chairman serves as a director. On November 1, 2019 and December 4, 2019 the Company loaned $851,825 and $1,650,000 to Horwath Capital, respectively. The loan bears an interest rate of 4% and is not guaranteed. The maturity was July 31, 2020. On July 20, 2020 and March 30, 2021, Horwath Capital fully repaid $851,825 and $1,650,000 to the Company, respectively. On April 1, 2022 and April 7, 2022 the company loaned $300,000 and $1,350,000 to Horwath Capital. The loan bears an interest rate of 1% and is not guaranteed. The maturity was September 30, 2023. |
Schedule of due to related parties | As of As of Due to shareholders $ 315,512 $ 315,512 Due to key management personnel - - Due to related parties $ 315,512 $ 315,512 (b) The balance of due to shareholders mainly due to the principal shareholders of the Company who provide funds for the Company’s operations. The payables are unsecured, non-interest bearing and due on demand. |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Schedule of income tax expense (benefit) | For the Years Ended March 31, 2023 2022 2021 Current income tax provision $ 160,439 $ 275,555 $ 513,379 Deferred income tax provision (benefit) 270,090 (36,670 ) (333,045 ) Total $ 430,529 $ 238,885 $ 180,334 | |
Schedule of deferred tax assets and liabilities | As of As of Allowance for doubtful accounts $ 95,025 $ 200,262 Deferred revenue 280,531 517,578 Net operating loss carry-forwards - 2,602 Total deferred tax asset 375,556 720,442 Valuation allowance (875 ) (22,619 ) Deferred tax assets, net $ 374,681 $ 697,823 | |
Schedule of statutory effective tax rate | For the Years Ended March 31, March 31, March 31, Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (a) (7.7 )% (6.8 )% (7.9 )% Permanent difference 0.3 % 0.5 % 0.8 % Change in valuation allowance 1.2 % 2.2 % (2.9 )% Effective tax rate 18.8 % 20.9 % 15.0 % (a) Distance Learning is subject to a favorable tax rate of 15%; Shanghai Xia Shu, Shanghai Xin Fu, Hunan Huafu, Nanjing Suyun, Guizhou Huafu, Fuzhou Huafu and Chonqqing Huafu are subject to a favorable tax rate of 10%. | |
Schedule of taxes payable | As of As of Income tax payable $ 1,054,177 $ 935,630 Value added tax payable 54,296 40,604 Other taxes payable 11,128 7,636 Total $ 1,119,601 $ 983,869 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of lease expense | March 31, Operating lease cost $ 413,445 Weighted Average Remaining Lease Term (Months) Operating leases 26 Weighted Average Discount Rate Operating leases 4.75 % |
Schedule of Maturities of lease liabilities | Twelve months ending March 31, 2024 $ 213,482 2025 170,067 2026 38,652 Total Lease Payments 422,201 Less Imputed Interest (8,756 ) Total $ 413,445 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segments | For the Year Ended March 31, March 31, March 31, Revenue from Online Education Service Revenue from B2B2C Service $ 10,358,996 $ 10,154,357 $ 7,601,430 Revenue from B2C Service 149,877 1,014,815 657,019 Revenue from Technological Development and Operation Service 183,740 305,176 257,112 Total $ 10,692,613 $ 11,474,348 $ 8,515,561 |
Schedule of revenue from business operation | For the Year Ended March 31, 2023 Online Technological Total Revenue $ 10,508,873 $ 183,740 $ 10,692,613 Cost of revenue and related tax 4,904,801 100,909 5,005,710 Gross profit $ 5,604,072 $ 82,831 $ 5,686,903 Depreciation and amortization $ 173,214 $ 3,029 $ 176,243 Total capital expenditures $ 37,237 $ - $ 37,237 For the Year Ended March 31, 2022 Online Technological Total Revenue $ 11,169,172 $ 305,176 $ 11,474,348 Cost of revenue and related tax 5,833,319 180,412 6,013,731 Gross profit $ 5,335,853 $ 124,764 $ 5,460,617 Depreciation and amortization $ 173,952 $ 5,255 $ 179,207 Total capital expenditures $ 34,996 $ - $ 34,996 For the Year Ended March 31, 2021 Online Technological Total Revenue $ 8,258,449 $ 257,112 $ 8,515,561 Cost of revenue and related tax 3,692,683 304,415 3,997,098 Gross profit $ 4,565,766 $ (47,303 ) $ 4,518,463 Depreciation and amortization $ 189,407 $ 5,832 $ 195,239 Total capital expenditures $ 72,984 $ 1,252 $ 74,236 |
Schedule of total assets | As of As of Total assets: Online Education Service $ 17,091,176 $ 17,277,372 Technological Development and Operation Service 447,016 726,534 Total Assets $ 17,538,192 $ 18,003,906 |
Organization and Business Des_2
Organization and Business Description (Details) | Jan. 31, 2023 USD ($) | Jan. 31, 2023 CNY (¥) | Jul. 04, 2022 | Nov. 08, 2019 | Oct. 21, 2019 | Sep. 09, 2019 USD ($) | Sep. 09, 2019 CNY (¥) | Aug. 14, 2019 | Jun. 26, 2018 | May 21, 2018 | Apr. 25, 2017 | Mar. 15, 2017 | Mar. 08, 2017 | Aug. 15, 2016 | Jul. 20, 2015 | Jun. 15, 2015 | Dec. 31, 2012 USD ($) | Dec. 31, 2012 CNY (¥) |
Subsidiaries [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Total consideration paid | $ | $ 300,000 | |||||||||||||||||
Hunan Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Total consideration paid | $ 14 | ¥ 100 | ||||||||||||||||
Huaxia MOOC [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Total consideration paid | $ 100,388 | ¥ 714,984 | ||||||||||||||||
Liaoning Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Number of shareholders | 1 | |||||||||||||||||
Equity Method Investment [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 70% | 15% | ||||||||||||||||
Equity Method Investment [Member] | Subsidiaries [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 100% | 100% | ||||||||||||||||
Equity Method Investment [Member] | Shanghai Xin Fu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 100% | |||||||||||||||||
Equity Method Investment [Member] | Hunan Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 75% | 75% | 75% | |||||||||||||||
Equity Method Investment [Member] | Nanjing Suyun [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 70% | |||||||||||||||||
Equity Method Investment [Member] | Huaxia MOOC [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 20% | 20% | 51% | |||||||||||||||
Equity Method Investment [Member] | Huaxia MOOC [Member] | Minimum [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 51% | 51% | ||||||||||||||||
Equity Method Investment [Member] | Huaxia MOOC [Member] | Maximum [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 71% | 71% | ||||||||||||||||
Equity Method Investment [Member] | Guizhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 51% | |||||||||||||||||
Equity Method Investment [Member] | Fuzhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 65% | |||||||||||||||||
Equity Method Investment [Member] | Liaoning Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 70% | |||||||||||||||||
Equity Method Investment [Member] | Guangxi Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 55% | |||||||||||||||||
Equity Method Investment [Member] | Guangzhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 60% | |||||||||||||||||
Equity Method Investment [Member] | Sichuan Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 60% | |||||||||||||||||
Equity Method Investment [Member] | Chongqing Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 55% | |||||||||||||||||
RMB [Member] | Subsidiaries [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Total consideration paid | ¥ | ¥ 2,000,000 | |||||||||||||||||
Third Party Company [Member] | Equity Method Investment [Member] | Guizhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 49% | |||||||||||||||||
Third Party Company [Member] | Equity Method Investment [Member] | Guangxi Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 45% | |||||||||||||||||
Individual shareholder [Member] | Hunan Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Number of shareholders | 2 | |||||||||||||||||
Individual shareholder [Member] | Huaxia MOOC [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Number of shareholders | 3 | |||||||||||||||||
Individual shareholder [Member] | Fuzhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Number of shareholders | 3 | |||||||||||||||||
Individual shareholder [Member] | Guangzhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Number of shareholders | 2 | |||||||||||||||||
Individual shareholder [Member] | Sichuan Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Number of shareholders | 1 | |||||||||||||||||
Individual shareholder [Member] | Equity Method Investment [Member] | Hunan Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 25% | |||||||||||||||||
Individual shareholder [Member] | Equity Method Investment [Member] | Nanjing Suyun [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 30% | |||||||||||||||||
Individual shareholder [Member] | Equity Method Investment [Member] | Huaxia MOOC [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 49% | |||||||||||||||||
Individual shareholder [Member] | Equity Method Investment [Member] | Fuzhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 25% | |||||||||||||||||
Individual shareholder [Member] | Equity Method Investment [Member] | Liaoning Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 25% | |||||||||||||||||
Individual shareholder [Member] | Equity Method Investment [Member] | Guangzhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 40% | |||||||||||||||||
Individual shareholder [Member] | Equity Method Investment [Member] | Sichuan Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 30% | |||||||||||||||||
Individual shareholder [Member] | Equity Method Investment [Member] | Chongqing Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 45% | |||||||||||||||||
Individual Shareholders Two [Member] | Equity Method Investment [Member] | Fuzhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 6% | |||||||||||||||||
Individual Shareholders Two [Member] | Equity Method Investment [Member] | Liaoning Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 5% | |||||||||||||||||
Individual Shareholders Two [Member] | Equity Method Investment [Member] | Sichuan Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 10% | |||||||||||||||||
Individual Shareholders Three [Member] | Equity Method Investment [Member] | Fuzhou Huafu [Member] | ||||||||||||||||||
Organization and Business Description (Details) [Line Items] | ||||||||||||||||||
Equity interest percentage | 4% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ¥ in Millions | 12 Months Ended | |||||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 HKD ($) | Apr. 01, 2019 USD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Cash equivalent | $ 72,805 | ¥ 0.5 | ||||
Consideration risk percentage | 10% | 10% | ||||
Allowances for doubtful accounts (in Dollars) | $ 535,767 | $ 1,122,743 | ||||
Operating lease assets and liability (in Dollars) | $ 47,000 | |||||
Cash | 1,511,208 | 1,940,850 | ||||
Cash deposits (in Dollars) | $ 11,056,255 | $ 9,821,654 | ||||
Percentage of total revenues | 10% | 10% | 10% | |||
Percentage of total purchases | 10% | 10% | 10% | |||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Percentage of value added tax | 6% | |||||
Minimum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Percentage of value added tax | 3% | |||||
B2B2C Services [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Accounts receivable (in Dollars) | $ 800,000 | $ 1,710,000 | ||||
Customer One [Member] | Sales Revenue [Member] | Customer Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Consideration risk percentage | 10% | 10% | ||||
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Consideration risk percentage | 10.40% | |||||
HKD [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Cash | $ 500,000 | |||||
Business Tax [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Percentage of business tax | 3% | 3% | 3% | |||
Third Party [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Percentage of interest loan | 6% | |||||
HKD [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Cash | $ 63,695 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of subsidiaries and its subsidiary's VIE | 12 Months Ended | |
Mar. 31, 2023 | ||
Wah Fu Holding [Member] | ||
Subsidiaries: | ||
Date of establishment | May 19, 2016 | [1] |
Place of establishment | Hong Kong, PRC | [1] |
Percentage of legal ownership by Wah Fu | 100% | [1] |
Principal activities | Holding Company | [1] |
Distance Learning [Member] | ||
Subsidiaries: | ||
Date of establishment | Dec. 23, 1999 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 100% | |
Principal activities | Provider of online education services and technological development and operation services | |
Shanghai Xin Fu [Member] | ||
Subsidiaries: | ||
Date of establishment | Jul. 20, 2015 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 100% | |
Principal activities | Inactive | |
Shanghai Xia Shu [Member] | ||
Subsidiaries: | ||
Date of establishment | Apr. 29, 2016 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 100% | |
Principal activities | Inactive | |
Hunan Huafu [Member] | ||
Subsidiaries: | ||
Date of establishment | Jun. 15, 2015 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 75% | |
Principal activities | Provider of online education services | |
Nanjing Suyun [Member] | ||
Subsidiaries: | ||
Date of establishment | Mar. 08, 2017 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 70% | |
Principal activities | Provider of online education services | |
Huaxia MOOC [Member] | ||
Subsidiaries: | ||
Date of establishment | Mar. 15, 2017 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 71% | |
Principal activities | Provider of online education services | |
Guizhou Huafu [Member] | ||
Subsidiaries: | ||
Date of establishment | Apr. 25, 2017 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 51% | |
Principal activities | Provider of online education services | |
Fuzhou Huafu [Member] | ||
Subsidiaries: | ||
Date of establishment | May 21, 2018 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 65% | |
Principal activities | Provider of online education services | |
Liaoning Huafu [Member] | ||
Subsidiaries: | ||
Date of establishment | Jun. 26, 2018 | [2] |
Place of establishment | Mainland, PRC | [2] |
Percentage of legal ownership by Wah Fu | 70% | [2] |
Principal activities | Provider of online education services | [2] |
Guangxi Huafu [Member] | ||
Subsidiaries: | ||
Date of establishment | Aug. 14, 2019 | [3] |
Place of establishment | Mainland, PRC | [3] |
Percentage of legal ownership by Wah Fu | 55% | [3] |
Principal activities | Inactive | [3] |
Guangzhou Huafu [Member] | ||
Subsidiaries: | ||
Date of establishment | Oct. 21, 2019 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 60% | |
Principal activities | Provider of online education services | |
Sichuan Huafu [Member] | ||
Subsidiaries: | ||
Date of establishment | Nov. 08, 2019 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 70% | |
Principal activities | Provider of online education services | |
Chongqing Huafu [Member] | ||
Subsidiaries: | ||
Date of establishment | Jul. 04, 2022 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | 55% | |
Principal activities | Provider of online education services | |
Variable interest entity [Member] | Digital Information [Member] | ||
Subsidiaries: | ||
Date of establishment | Sep. 14, 2000 | |
Place of establishment | Mainland, PRC | |
Percentage of legal ownership by Wah Fu | ||
Principal activities | Provider of technological development and operation service and holder of Internet Content Provider (“ICP”) License | |
[1] Wah Fu Holding was dissolved on April 23, 2021. Liaoning Huafu was dissolved on June 27, 2022. Guangxi Huafu was dissolved on March 17, 2022. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of consolidated balance sheets - Variable Interest Entity [Member] - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Consolidated Balance Sheets [Abstract] | |||
Current assets | $ 430,150 | $ 580,823 | |
Non-current assets | 16,866 | 145,711 | |
Total assets | 447,016 | 726,534 | |
Current liabilities | 252,446 | 598,354 | |
Intercompany payables | [1] | 3,156,235 | 3,513,846 |
Total liabilities | 3,408,681 | 4,112,200 | |
Net assets | $ (2,961,665) | $ (3,385,666) | |
[1] Intercompany payables are eliminated upon consolidation. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of intercompany payables - Variable Interest Entity [Member] - USD ($) | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule of Intercompany Payables [Abstract] | ||||
Revenue | [1] | $ 708,503 | $ 829,928 | $ 514,888 |
Net Income (loss) | $ 119,846 | $ 36,181 | $ (114,129) | |
[1] Intercompany sales are eliminated upon consolidation. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of intercompany sales - Variable Interest Entity [Member] - USD ($) | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule of Intercompany Sales [Abstract] | ||||
Net cash (used in) provided by operating activities | [1] | $ (89,131) | $ 252,880 | $ 92,187 |
Net cash used in investing activities | (5,437) | (1,252) | ||
Effect of exchange (loss) gain on cash | (39,585) | 11,562 | 15,091 | |
Net (decrease) increase in cash | $ (134,153) | $ 264,442 | $ 106,026 | |
[1] Intercompany operating activities are eliminated upon consolidation. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Accounts Receivable [Abstract] | ||
Total accounts receivable, net | $ 793,212 | $ 1,712,430 |
Less: allowance for doubtful accounts | (535,767) | (1,122,743) |
Less than 3 months [Member] | ||
Schedule of Accounts Receivable [Abstract] | ||
Total accounts receivable, net | 1,220,327 | 1,723,099 |
More than 12 months [Member] | ||
Schedule of Accounts Receivable [Abstract] | ||
Total accounts receivable, net | $ 108,652 | $ 1,112,074 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment | 12 Months Ended |
Mar. 31, 2023 | |
Buildings [Member] | |
Schedule of Property and Equipment [Abstract] | |
Estimated useful lives | 20 years |
Electronic equipment [Member] | Minimum [Member] | |
Schedule of Property and Equipment [Abstract] | |
Estimated useful lives | 4 years |
Electronic equipment [Member] | Maximum [Member] | |
Schedule of Property and Equipment [Abstract] | |
Estimated useful lives | 5 years |
Office equipment and furniture [Member] | Minimum [Member] | |
Schedule of Property and Equipment [Abstract] | |
Estimated useful lives | 4 years |
Office equipment and furniture [Member] | Maximum [Member] | |
Schedule of Property and Equipment [Abstract] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | Minimum [Member] | |
Schedule of Property and Equipment [Abstract] | |
Estimated useful lives | 4 years |
Motor vehicles [Member] | Maximum [Member] | |
Schedule of Property and Equipment [Abstract] | |
Estimated useful lives | 5 years |
Leasehold improvements [Member] | |
Schedule of Property and Equipment [Abstract] | |
Estimated useful lives, description | The shorter of the lease term and useful life |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, Net [Abstract] | |||
Provisions for doubtful accounts | $ 535,768 | $ 1,122,743 | |
Recovery for doubtful accounts | $ 693,639 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable | $ 1,328,980 | $ 2,835,173 |
Less: allowance for doubtful accounts | (535,768) | (1,122,743) |
Total accounts receivable, net | $ 793,212 | $ 1,712,430 |
Loans to Third Pairties, Net (D
Loans to Third Pairties, Net (Details) | Feb. 13, 2023 USD ($) | Feb. 13, 2023 CNY (¥) | Sep. 27, 2018 USD ($) | Sep. 27, 2018 CNY (¥) | Dec. 25, 2017 USD ($) | Dec. 25, 2017 CNY (¥) | Sep. 05, 2017 USD ($) | Sep. 05, 2017 CNY (¥) |
Loans To Third Pairties Net Disclosure Abstract | ||||||||
Distance learning loaned | $ 27,729 | ¥ 200,000 | $ 87,367 | ¥ 600,000 | $ 88,760 | ¥ 600,000 | $ 436,834 | ¥ 3,000,000 |
Interest rate | 6% | 6% | 6% | 6% | 6% | 6% |
Loans to Third Pairties, Net _2
Loans to Third Pairties, Net (Details) - Schedule of loans to third parties - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Loans to Third Parties [Abstract] | |||
Loans to third parties, noncurrent | |||
Total loan to third parties, net | 722,934 | 719,205 | |
Beijing Chuangyouyi Education Technology Co.,Ltd [Member] | |||
Schedule of Loans to Third Parties [Abstract] | |||
Loans to third parties, current | [1] | 88,760 | 96,157 |
Loans to third parties, noncurrent | [1] | (88,760) | (96,157) |
Beijing Dejinbao Mining Engineering Co., Ltd [Member] | |||
Schedule of Loans to Third Parties [Abstract] | |||
Loans to third parties, current | [2] | 524,201 | 566,377 |
Loans to third parties, noncurrent | [2] | 171,004 | 149,673 |
Guizhou Shunxincheng Human Resources Co., Ltd [Member] | |||
Schedule of Loans to Third Parties [Abstract] | |||
Loans to third parties, current | 3,155 | ||
Individual Person [Member] | |||
Schedule of Loans to Third Parties [Abstract] | |||
Loans to third parties, current | [3] | $ 27,729 | |
[1]On December 25, 2017, Distance Learning loaned RMB 600,000 (USD 88,760 as of March 31, 2023) to Beijing Chuangyouyi Education Technology Co.,Ltd (“Chuangyouyi”). The loan bears an interest rate of 6% and is not guaranteed. The maturity was December 24, 2018. Chuangyouyi did not repay upon maturity, the Company has fully accrued allowance for the balance.[2] On September 5, 2017, Distance Learning loaned RMB3,000,000 (USD 436,834 as of March 31, 2023) to Beijing Dejinbao Mining Engineering Co., Ltd (“Dejinbao”). The loan bears an interest rate of 6% and is not guaranteed. The original maturity was September 5, 2019, and was later extended to September 5, 2023. On September 27, 2018, Distance Learning loaned an additional RMB600,000 (USD 87,367 as of March 31, 2023) to Dejinbao. The loan bears an interest rate of 6% and is not guaranteed. The maturity of the loan is September 26, 2024. On February 13, 2023, Distance Learning loaned RMB200,000 (USD 27,729 as of March 31, 2023) to a third part. The loan to an individual person is unsecured, non-interest bearing and due on demand. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property and Equipment, Net [Abstract] | |||
Depreciation and amortization expense | $ 176,243 | $ 179,207 | $ 195,239 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 1,550,716 | $ 1,657,550 |
Less: accumulated depreciation and amortization | (1,001,079) | (946,823) |
Property and equipment, net | 549,637 | 710,727 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 484,951 | 525,365 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 128,047 | 132,650 |
Office equipment and furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 224,364 | 252,097 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 179,613 | 169,216 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 364,979 | 395,395 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 168,762 | $ 182,827 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Details) ¥ in Millions | 12 Months Ended | |||||
Aug. 15, 2016 USD ($) | Aug. 15, 2016 CNY (¥) | Jun. 02, 2016 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Nov. 08, 2019 | |
Investments in Unconsolidated Entities (Details) [Line Items] | ||||||
Percentage of ownership transferred | 10% | |||||
Beijing Tianyuebowen Science and Technology Co., Ltd. [Member] | ||||||
Investments in Unconsolidated Entities (Details) [Line Items] | ||||||
Equity method investments | $ | $ 140,000 | |||||
Impairment of investments | ¥ 0.9 | $ 131,050 | ||||
Zhongtai International Education Technology [Member] | ||||||
Investments in Unconsolidated Entities (Details) [Line Items] | ||||||
Equity method investments | ¥ 1 | $ 150,000 | ||||
Impairment of investments | $ 145,611 | ¥ 1 | ||||
Equity Method Investment [Member] | ||||||
Investments in Unconsolidated Entities (Details) [Line Items] | ||||||
Percentage of equity interest | 15% | 70% | ||||
Equity Method Investment [Member] | Beijing Tianyuebowen Science and Technology Co., Ltd. [Member] | ||||||
Investments in Unconsolidated Entities (Details) [Line Items] | ||||||
Percentage of equity interest | 10% | |||||
Equity Method Investment [Member] | Zhongtai International Education Technology [Member] | ||||||
Investments in Unconsolidated Entities (Details) [Line Items] | ||||||
Percentage of equity interest | 15% | |||||
RMB [Member] | Beijing Tianyuebowen Science and Technology Co., Ltd. [Member] | ||||||
Investments in Unconsolidated Entities (Details) [Line Items] | ||||||
Equity method investments | ¥ | ¥ 0.9 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities (Details) - Schedule of investments in unconsolidated entities - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Impairment of investments in unconsolidated entities | |||
Total | $ 12,277 | ||
Beijing Tianyuebowen Science and Technology Co., Ltd. [Member] | |||
Equity investments without readily determinable fair value: | |||
Equity investments without readily determinable fair value | [1] | 131,050 | 141,972 |
Impairment of investments in unconsolidated entities | |||
Impairment of investments in unconsolidated entities | [1] | (131,050) | (129,695) |
Zhongtai International Education Technology (Beijing) Co., Ltd. [Member] | |||
Equity investments without readily determinable fair value: | |||
Equity investments without readily determinable fair value | [2] | 145,611 | 157,746 |
Impairment of investments in unconsolidated entities | |||
Impairment of investments in unconsolidated entities | [2] | $ (145,611) | $ (157,746) |
[1] On June 2, 2016, the Company invested RMB 0.9 million (approximately $0.14 million as of March 31, 2022) in exchange for 10% equity interest of Tianyuebowen through its related party, Beijing Haohua Haofu Investment Co., Ltd. (“Haohua Haofu”). Haohua Haofu signed the investment agreement on behalf of Digital Information and transferred 10% ownership of Tianyuebowen to the Company subsequently. RMB 0.9 million was paid in full by the Company in June 2016. Due to the continual losses of Tianyuebowen, the company believes that the probability of recovering the investment in Tianyuebowen is low. Therefore the balance of $131,050 investment in Beijing Tianyuebowen is fully impaired in fiscal year 2023. On August 15, 2016, the Company invested RMB 1.0 million (approximately $0.15 million as of March 31, 2022) in exchange for 15% equity interest of Zhongtai International Education Technology (Beijing) Co., Ltd. (“Zhongtai”) through Haohua Haofu. Haohua Haofu signed the investment agreement on behalf of Digital Information and transferred the 15% ownership of Zhongtai to the Company subsequently. RMB 1.0 million was paid in full by the Company in August 2016. Due to the continual losses of Zhongta, the company believes that the probability of recovering the investment in Zhongta is low. Therefore the balance of $145,611 investment in Zhongtai is fully impaired in fiscal year 2023. |
Related Parties Blalance (Detai
Related Parties Blalance (Details) - USD ($) | 12 Months Ended | ||||||
Mar. 30, 2021 | Jul. 20, 2020 | Mar. 31, 2023 | Apr. 07, 2022 | Apr. 01, 2022 | Dec. 04, 2019 | Nov. 01, 2019 | |
Related Parties Blalance (Details) [Line Items] | |||||||
Loan bears an interest rate | 1% | ||||||
Loan maturity date | Sep. 30, 2023 | ||||||
Horwath Capital [Member] | |||||||
Related Parties Blalance (Details) [Line Items] | |||||||
Loan amount | $ 1,350,000 | $ 300,000 | $ 1,650,000 | $ 851,825 | |||
Loan bears an interest rate | 4% | ||||||
Loan maturity date | Jul. 31, 2020 | ||||||
Repaid loan amount | $ 1,650,000 | $ 851,825 |
Related Parties Blalance (Det_2
Related Parties Blalance (Details) - Schedule of loan to related parties - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of loan to related parties [Abstract] | |||
Loan to related parties | [1] | $ 1,761,979 | $ 1,745,479 |
[1] The balance is due from Horwath Capital Consultants Limited (“Horwath Capital”), to which the Company’s chairman serves as a director. On November 1, 2019 and December 4, 2019 the Company loaned $851,825 and $1,650,000 to Horwath Capital, respectively. The loan bears an interest rate of 4% and is not guaranteed. The maturity was July 31, 2020. On July 20, 2020 and March 30, 2021, Horwath Capital fully repaid $851,825 and $1,650,000 to the Company, respectively. On April 1, 2022 and April 7, 2022 the company loaned $300,000 and $1,350,000 to Horwath Capital. The loan bears an interest rate of 1% and is not guaranteed. The maturity was September 30, 2023. |
Related Parties Blalance (Det_3
Related Parties Blalance (Details) - Schedule of due to related parties - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 315,512 | $ 315,512 |
Due to shareholders [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 315,512 | 315,512 |
Due to key management personnel [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties |
Taxes (Details)
Taxes (Details) | 12 Months Ended | ||
Mar. 31, 2023 HKD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Taxes (Details) [Line Items] | |||
Income tax rate | 25% | ||
Corporate income tax rate, description | Hunan Huafu, Shanghai Xia Shu, Shanghai Xin Fu, Nanjing Suyun, Guizhou Huafu, Fuzhou Huafu, Laoning Huafu, Guangxi Huafu, Sichuan Huafu and Guangzhou Huafu were registered in the PRC and are subject to corporate income tax at a reduced rate of 10% starting from the inception dates when they were approved by local government as small-scaled minimal profit enterprises. Huaxia MOOC was subject to corporate income tax at a reduced rate of 10% from the inception date till the end of 2019. | ||
Increased income tax rate | 25% | ||
Offset operating income | 5 years | ||
Valuation allowance for deferred tax assets (in Dollars) | $ 875 | $ 31,564 | |
Favorable tax rate, description | (a)Distance Learning is subject to a favorable tax rate of 15%; Shanghai Xia Shu, Shanghai Xin Fu, Hunan Huafu, Nanjing Suyun, Guizhou Huafu, Fuzhou Huafu and Chonqqing Huafu are subject to a favorable tax rate of 10%. | ||
Hong Kong [Member] | |||
Taxes (Details) [Line Items] | |||
Income tax rate | 8.25% | ||
Assessable profits (in Dollars) | $ 2,000,000 | ||
Assessable profits, percentage | 16.50% | ||
Assessable profits over (in Dollars) | $ 2,000,000 | ||
PRC [Member] | |||
Taxes (Details) [Line Items] | |||
Income tax rate | 15% |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax expense (benefit) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Income Tax Expense Benefit [Abstract] | |||
Current income tax provision | $ 160,439 | $ 275,555 | $ 513,379 |
Deferred income tax provision (benefit) | 270,090 | (36,670) | (333,045) |
Total | $ 430,529 | $ 238,885 | $ 180,334 |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ||
Allowance for doubtful accounts | $ 95,025 | $ 200,262 |
Deferred revenue | 280,531 | 517,578 |
Net operating loss carry-forwards | 2,602 | |
Total deferred tax asset | 375,556 | 720,442 |
Valuation allowance | (875) | (22,619) |
Deferred tax assets, net | $ 374,681 | $ 697,823 |
Taxes (Details) - Schedule of s
Taxes (Details) - Schedule of statutory effective tax rate | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule of Statutory Effective Tax Rate [Abstract] | ||||
Statutory PRC income tax rate | 25% | 25% | 25% | |
Favorable tax rate impact | [1] | (7.70%) | (6.80%) | (7.90%) |
Permanent difference | 0.30% | 0.50% | 0.80% | |
Change in valuation allowance | 1.20% | 2.20% | (2.90%) | |
Effective tax rate | 18.80% | 20.90% | 15% | |
[1] Distance Learning is subject to a favorable tax rate of 15%; Shanghai Xia Shu, Shanghai Xin Fu, Hunan Huafu, Nanjing Suyun, Guizhou Huafu, Fuzhou Huafu and Chonqqing Huafu are subject to a favorable tax rate of 10%. |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes payable - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Taxes Payable [Abstract] | ||
Income tax payable | $ 1,054,177 | $ 935,630 |
Value added tax payable | 54,296 | 40,604 |
Other taxes payable | 11,128 | 7,636 |
Total | $ 1,119,601 | $ 983,869 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease expense | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Schedule of lease expense [Abstract] | |
Operating lease cost | $ 413,445 |
Weighted Average Remaining Lease Term (Months) | |
Operating leases | $ 26 |
Weighted Average Discount Rate | |
Operating leases | 4.75% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Schedule of maturities of lease liabilities [Abstract] | |
2024 | $ 213,482 |
2025 | 170,067 |
2026 | 38,652 |
Total Lease Payments | 422,201 |
Less Imputed Interest | (8,756) |
Total | $ 413,445 |
Equity (Details)
Equity (Details) - USD ($) | 12 Months Ended | ||||
Apr. 01, 2021 | Apr. 29, 2019 | Apr. 16, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity (Details) [Line Items] | |||||
Price per share (in Dollars per share) | $ 6.25 | ||||
Exercise shares | 29,526 | ||||
Issued shares | 59,052 | ||||
Shares returned | 29,526 | ||||
Common stock, shares authorized | 30,000,000 | 30,000,000 | |||
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, shares issued | 4,440,085 | 4,440,085 | |||
Common stock, shares outstanding | 4,440,085 | 4,440,085 | |||
Percentage of statutory reserve after tax | 10% | ||||
Percentage of reserve out of registered capital | 50% | ||||
Statutory reserve (in Dollars) | $ 867,530 | $ 657,329 | |||
Warrants issued for services, description | On April 1, 2021 the underwriter elects to exercise the purchase warrants which the company offering to the underwriter for initial public offering services. The total exercise shares are 59,052 at a price of $6.25 per share used cashless method. The total exercise shares should be 29,526 at a price of $6.25 per share used cashless method. Due to a calculation mistake the company erroneously issued 59,052 shares to the underwriter. | the company issued warrants to underwriter (Network 1 Financial Securities, Inc.) and its employees to purchased 59,052 ordinary shares at an exercise price of 125% of the IPO price, namely $6.25 dollars per share, at any time or from time to time from August 13, 2019 (the “Exercise Date”), and at or before 5:00 p.m., Eastern time, February 14, 2022 (the “Expiration Date”). | |||
Total exercise shares | 29,526 | ||||
Price per share (in Dollars per share) | $ 6.25 | ||||
Share issued | 59,052 | ||||
IPO [Member] | |||||
Equity (Details) [Line Items] | |||||
Number of ordinary shares | 1,181,033 | ||||
Price per share (in Dollars per share) | $ 5 | ||||
Total gross proceeds (in Dollars) | $ 5,900,000 | ||||
Ordinary Shares [Member] | |||||
Equity (Details) [Line Items] | |||||
Shares returned | 29,526 | ||||
Warrant [Member] | |||||
Equity (Details) [Line Items] | |||||
Total exercise shares | 59,052 | ||||
Price per share (in Dollars per share) | $ 6.25 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of segments - Revenue [Member] - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from Online Education Service | |||
Revenue from B2B2C Service | $ 10,358,996 | $ 10,154,357 | $ 7,601,430 |
Revenue from B2C Service | 149,877 | 1,014,815 | 657,019 |
Revenue from Technological Development and Operation Service | 183,740 | 305,176 | 257,112 |
Total | $ 10,692,613 | $ 11,474,348 | $ 8,515,561 |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of revenue from business operation - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 10,692,613 | $ 11,474,348 | $ 8,515,561 |
Cost of revenue and related tax | 5,005,710 | 6,013,731 | 3,997,098 |
Gross profit | 5,686,903 | 5,460,617 | 4,518,463 |
Depreciation and amortization | 176,243 | 179,207 | 195,239 |
Total capital expenditures | 37,237 | 34,996 | 74,236 |
Online Education Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 10,508,873 | 11,169,172 | 8,258,449 |
Cost of revenue and related tax | 4,904,801 | 5,833,319 | 3,692,683 |
Gross profit | 5,604,072 | 5,335,853 | 4,565,766 |
Depreciation and amortization | 173,214 | 173,952 | 189,407 |
Total capital expenditures | 37,237 | 34,996 | 72,984 |
Technological Development and Operation Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 183,740 | 305,176 | 257,112 |
Cost of revenue and related tax | 100,909 | 180,412 | 304,415 |
Gross profit | 82,831 | 124,764 | (47,303) |
Depreciation and amortization | 3,029 | 5,255 | 5,832 |
Total capital expenditures | $ 1,252 |
Segment Reporting (Details) -_3
Segment Reporting (Details) - Schedule of total assets - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 17,538,192 | $ 18,003,906 |
Online Education Service [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 17,091,176 | 17,277,372 |
Technological Development and Operation Service [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 447,016 | $ 726,534 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 01, 2021 $ / shares shares | Apr. 03, 2023 USD ($) | Apr. 03, 2023 CNY (¥) |
Subsequent Events (Details) [Line Items] | |||
Total exercise shares | 29,526 | ||
Price of per share (in Dollars per share) | $ / shares | $ 6.25 | ||
Issuance of shares | 59,052 | ||
Shares returned | 29,526 | ||
Subsequent Event [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Subsidiary, loaned | $ 2,912,226 | ¥ 20,000,000 |