Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jul. 31, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | ATIF Holdings Ltd |
Trading Symbol | ATIF |
Document Type | 20-F |
Current Fiscal Year End Date | --07-31 |
Entity Common Stock, Shares Outstanding | 9,161,390 |
Amendment Flag | false |
Entity Central Index Key | 0001755058 |
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 | Jul. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38876 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | Room 2803 |
Entity Address, Address Line Two | Dachong Business Centre |
Entity Address, Address Line Three | Dachong 1st Road |
Entity Address, City or Town | Shenzhen |
Entity Address, Country | CN |
Title of 12(b) Security | Ordinary Shares |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Entity Address, Postal Zip Code | 00000 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Room 2803 |
Entity Address, Address Line Two | Dachong Business Centre |
Entity Address, Address Line Three | Dachong 1st Road |
Entity Address, City or Town | Shenzhen |
Entity Address, Country | CN |
Contact Personnel Name | Yue Ming |
Contact Personnel Email Address | info@atifchina.com |
City Area Code | 86-755 |
Entity Address, Postal Zip Code | 00000 |
Local Phone Number | 8695-0818 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 5,596,740 | $ 409,657 | |
Deposits | 234,580 | 367,731 | |
Investment in trading securities | 1,027,509 | 918,675 | |
Investment in life insurance contract | 1,290,289 | ||
Due from buyers of Leaping Group Corporation (“LGC”) (Note 4) | 2,300,000 | ||
Prepaid expenses and other current assets | 688,451 | 696,529 | |
Assets of disposal group | 1,554,584 | ||
Total current assets | 9,847,280 | 5,237,465 | |
Property and equipment, net | 572,027 | 606,240 | |
Intangible assets, net | 233,331 | 330,456 | |
Right-of- use assets, net | 745,125 | 620,593 | |
Assets of disposal group, noncurrent | 38,990,324 | ||
TOTAL ASSETS | 11,397,763 | 45,785,078 | |
CURRENT LIABILITIES | |||
Accounts payable | 482 | 482 | |
Deferred revenue | 370,948 | 512,238 | |
Taxes payable | 58,017 | 660,116 | |
Accrued expenses and other current liabilities | 514,863 | 441,351 | |
Operating lease liabilities, current | 382,298 | 433,904 | |
Liabilities of disposal group | 5,736,356 | ||
Total current liabilities | 1,326,608 | 7,784,447 | |
Operating lease liabilities, noncurrent | 387,307 | 203,265 | |
Liabilities of disposal group, noncurrent | 3,179,624 | ||
TOTAL LIABILITIES | 1,713,915 | 11,167,336 | |
Commitments | |||
EQUITY | |||
Ordinary shares, $0.001 par value, 100,000,000,000 shares authorized, 9,161,390 shares and 9,402,935 shares issued and outstanding as of July 31, 2021 and 2020, respectively * | [1] | 9,161 | 9,402 |
Additional paid-in capital | 31,428,619 | 30,593,370 | |
Statutory reserve | 355,912 | 355,912 | |
Accumulated deficit | (22,055,433) | (13,491,659) | |
Accumulated other comprehensive loss | (175,220) | (63,766) | |
Total ATIF Holdings Limited Stockholders’ equity | 9,563,039 | 17,403,259 | |
Noncontrolling interest | 120,809 | 17,214,483 | |
TOTAL LIABILITIES AND EQUITY | $ 11,397,763 | $ 45,785,078 | |
[1] | Retrospectively restated due to five for one reverse stock split, see Note 14 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jul. 31, 2021 | Jul. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, Par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, Authorized | 100,000,000,000 | 100,000,000,000 |
Ordinary shares, Issued | 9,161,390 | 9,402,935 |
Ordinary shares, Outstanding | 9,161,390 | 9,402,935 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | ||
Income Statement [Abstract] | ||||
Revenues | $ 936,935 | $ 645,127 | $ 3,078,758 | |
Operating expenses: | ||||
Selling expenses | 439,174 | 2,467,547 | 1,096,195 | |
General and administrative expenses | 2,919,675 | 3,076,283 | 1,245,169 | |
Provision for doubtful accounts | 995,081 | 65,790 | ||
Impairment of long-lived assets | 505,453 | |||
Total operating expenses | 3,358,849 | 7,044,364 | 2,407,154 | |
Loss from operations | (2,421,914) | (6,399,237) | 671,604 | |
Other income (expenses): | ||||
Interest income, net | 313 | 437 | 1,994 | |
Other income (expenses), net | 305,989 | (80,283) | 32,452 | |
Gain (Loss) from investment in trading securities | (258,738) | 201,051 | ||
Total other income (expense), net | 47,564 | 121,205 | 34,446 | |
Income (loss) before income taxes | (2,374,350) | (6,278,032) | 706,050 | |
Income tax provision | 276,823 | |||
Net loss from continuing operations | (2,374,350) | (6,278,032) | 429,227 | |
Net loss from discontinued operations | (6,625,898) | (11,012,336) | ||
Net income (loss) | (9,000,248) | (17,290,368) | 429,227 | |
Less: Net loss attributable to non-controlling interests | 436,474 | 2,407,669 | ||
Net income (loss) attributable to ATIF Holdings Limited | (8,563,774) | (14,882,699) | 429,227 | |
Other comprehensive loss: | ||||
Total foreign currency translation adjustment | (283,677) | (30,225) | (17,642) | |
Comprehensive income (loss) | (9,283,925) | (17,320,593) | 411,585 | |
Less: comprehensive loss attributable to non-controlling interests | 295,985 | 2,449,843 | ||
Comprehensive income (loss) attributable to ATIF Holdings Limited | $ (8,987,940) | $ (14,870,750) | $ 411,585 | |
Earnings (Loss) Per share – basic and diluted (in Dollars per share) | $ (0.9) | $ (1.87) | $ 0.06 | |
Earnings (Loss) Per share from continuing operations – basic and diluted (in Dollars per share) | (0.26) | (0.79) | 0.06 | |
Earnings (Loss) Per share from discontinued operations – basic and diluted (in Dollars per share) | $ (0.64) | $ (1.08) | ||
Weighted Average Shares Outstanding* | ||||
Basic and diluted (in Shares) | [1] | 9,483,010 | 7,958,104 | 7,104,586 |
[1] | Retrospectively restated due to five for one reverse stock split, see Note 14 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Ordinary Share | Additional Paid in Capital | Statutory Reserves | Retained Earnings (accumulated deficit) | Accumulated Other Comprehensive Loss | Noncontrolling interests | Total | |
Balance at Jul. 31, 2018 | $ 7,000 | $ 748,139 | $ 278,836 | $ 1,038,889 | $ (58,073) | $ 2,014,791 | ||
Balance (in Shares) at Jul. 31, 2018 | [1] | 7,000,000 | ||||||
Proceeds from initial public offering | $ 414 | 8,774,415 | 8,774,829 | |||||
Proceeds from initial public offering (in Shares) | [1] | 414,935 | ||||||
Appropriation to statutory reserve | 77,076 | (77,076) | ||||||
Net income (loss) | 429,227 | 429,227 | ||||||
Foreign currency translation adjustment | (17,642) | (17,642) | ||||||
Balance at Jul. 31, 2019 | $ 7,414 | 9,522,554 | 355,912 | 1,391,040 | (75,715) | 11,201,205 | ||
Balance (in Shares) at Jul. 31, 2019 | [1] | 7,414,935 | ||||||
Acquisition of 51.2% equity interest in LGC | $ 1,988 | 21,070,816 | 19,664,326 | 40,737,130 | ||||
Acquisition of 51.2% equity interest in LGC (in Shares) | [1] | 1,988,000 | ||||||
Net income (loss) | (14,882,699) | (2,407,669) | (17,290,368) | |||||
Foreign currency translation adjustment | 11,949 | (42,174) | (30,225) | |||||
Balance at Jul. 31, 2020 | $ 9,402 | 30,593,370 | 355,912 | (13,491,659) | (63,766) | 17,214,483 | 34,617,742 | |
Balance (in Shares) at Jul. 31, 2020 | [1] | 9,402,935 | ||||||
Cancellation of ordinary shares in connection with disposal of LGC | $ (1,111) | (5,998,881) | (5,999,992) | |||||
Cancellation of ordinary shares in connection with disposal of LGC (in Shares) | [1] | (1,111,110) | ||||||
Issuance of ordinary shares pursuant to registered direct offering | $ 870 | 2,790,087 | 2,790,957 | |||||
Issuance of ordinary shares pursuant to registered direct offering (in Shares) | [1] | 869,565 | ||||||
Issuance of warrants pursuant to registered direct offering | 744,043 | 744,043 | ||||||
Injection from shareholders | 3,300,000 | 3,300,000 | ||||||
Disposal of LGC | (105,257) | (16,516,711) | (16,621,968) | |||||
Disposal of Qianhai | 136,991 | 136,991 | ||||||
Net income (loss) | (8,563,774) | (436,474) | (9,000,248) | |||||
Foreign currency translation adjustment | (143,188) | (140,489) | (283,677) | |||||
Balance at Jul. 31, 2021 | $ 9,161 | $ 31,428,619 | $ 355,912 | $ (22,055,433) | $ (175,220) | $ 120,809 | $ 9,683,848 | |
Balance (in Shares) at Jul. 31, 2021 | [1] | 9,161,390 | ||||||
[1] | Retrospectively restated due to five for one reverse stock split, see Note 14 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parentheticals) | 12 Months Ended |
Jul. 31, 2020 | |
LGC [Member] | |
Equity interest acquired | 51.20% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (9,000,248) | $ (17,290,368) | $ 429,227 |
Less: net loss from discontinued operations | 6,625,898 | 11,012,336 | |
Net loss from continuing operations | (2,374,350) | (6,278,032) | 429,227 |
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities: | |||
Depreciation and amortization | 208,956 | 120,728 | 50,323 |
Changes in bad debt allowance | 995,081 | 65,790 | |
Amortization of right-of-use assets | 513,082 | 270,892 | |
Loss from disposal of property and equipment | 12,388 | ||
Impairment of equipment and intangible assets | 505,453 | ||
Loss (Gain) from investment in trading securities | 258,738 | (201,051) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (667,036) | (1,411,180) | |
Deposits | 133,848 | ||
Prepaid expenses and other current assets | 11,922 | 674,011 | (1,686,683) |
Due from a related party | 14,919 | ||
Accounts payable | 482 | ||
Deferred revenue | (178,885) | 37,323 | (61,860) |
Taxes payable | (643,789) | 274 | (185,246) |
Accrued expenses and other liabilities | 28,412 | (447,065) | (234,128) |
Lease liabilities | (505,372) | (254,388) | |
Net cash used in operating activities from continuing operations | (2,547,438) | (5,230,940) | (3,018,838) |
Net cash used in operating activities from discontinued operations | (119,612) | (662,795) | |
Net cash used in operating activities | (2,667,050) | (5,893,735) | (3,018,838) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (106,505) | (874,425) | (20,762) |
Purchase of intangible assets | (458,100) | ||
Prepayment for fixed assets purchase | (247,534) | ||
Collection of third party loans | 2,741,430 | ||
Payment for investment in trading securities | (367,571) | (717,624) | |
Investment deposit for life insurance contract | (1,275,950) | ||
Collection of investment deposit for life insurance contract | 1,217,456 | ||
Net cash provided by (used in) investing activities from continuing operations | 743,380 | (1,592,049) | 739,084 |
Net cash provided by investing activities from discontinued operations | 118,541 | 1,415,579 | |
Net cash provided by (used in) investing activities | 861,921 | (176,470) | 739,084 |
Cash flows from financing activities: | |||
Capital contribution | 3,300,000 | ||
Proceeds from issuance of ordinary shares pursuant to a registered direct offering, net of issuance cost | 3,535,000 | 8,772,754 | |
Proceeds from related party borrowings | 876,330 | ||
Repayment of related party borrowings | (31,267) | ||
Net cash provided by financing activities from continuing operations | 6,835,000 | 876,330 | 8,741,487 |
Net cash used in financing activities from discontinued operations | (734,347) | ||
Net cash provided by financing activities | 6,835,000 | 141,983 | 8,741,487 |
Effect of exchange rate changes on cash | 138,611 | (103,222) | (74,996) |
Net increase (decrease) in cash from continuing operations | 5,187,083 | (6,050,045) | 6,386,737 |
Net increase (decrease) in cash from discontinued operations | (18,601) | 18,601 | |
Cash from continuing operations, beginning of year | 409,657 | 6,459,702 | 72,965 |
Cash from discontinued operations, beginning of year | 18,601 | ||
Cash, end of year | 5,596,740 | 428,258 | 6,459,702 |
Less: Cash from discontinued operations, end of year | (18,601) | ||
Cash from continuing operations, end of year | 5,596,740 | 409,657 | 6,459,702 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest expenses | 608 | ||
Cash paid for income tax | 490,397 | ||
Supplemental disclosure of Non-cash investing and financing activities of continuing operations | |||
Collection of ordinary shares in connection with disposal of LGC | 5,999,992 | ||
Receivable in connection with disposal of LGC | 2,300,000 | ||
Right-of-use assets obtained in exchange for operating lease obligations | 807,531 | 892,751 | |
Supplemental disclosure of Non-cash investing and financing activities of discontinued operations | |||
Common shares issued for acquisition of LGC | 21,072,804 | ||
Debt conversion for acquisition of LGC | 1,851,000 | ||
Net assets acquired from LGC | 3,064,269 | ||
Net liabilities derecognized for termination of VIE | (405,823) | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 3,211,080 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS ATIF Holdings Limited (“ATIF” or the “Company”), formerly known as Eternal Fairy International Limited and Asia Times Holdings Limited, was incorporated under the laws of the British Virgin Islands (“BVI”) on January 5, 2015, as a holding company to develop business opportunities in the People’s Republic of China (the “PRC” or “China”). The Company adopted its current name on March 7, 2019. ATIF owns 100% equity interest of ATIF Limited (“ATIF HK”), formerly known as China Elite International Holdings Limited and Asia Times International Finance Limited, a limited liability company established in Hong Kong on January 6, 2015, and adopted its current name on March 7, 2019. ATIF HK acquired a financial and news media platform www.chinacnnm.com in September 2018. On May 20, 2015, ATIF HK incorporated Huaya Consultant (Shenzhen) Co., Ltd. (“Huaya”) as a Wholly Foreign Owned Enterprise (“WFOE”) in China. On September 5, 2018, Huaya entered into a series of contractual arrangements with the owners of Qianhai Asia Era (Shenzhen) International Financial Service Co., Ltd. (“Qianhai”), a company incorporated on November 3, 2015, under the laws of China with a registered capital of RMB5 million (approximately $0.75 million), which had been fully funded in December 2017. Qianhai is primarily engaged in providing business advisory and financial consulting services to small and medium-sized enterprise customers in the PRC. Qianhai originally owned a 100% controlled subsidiary Qianhai Asia Era (Shenzhen) International Fund Management Co., Ltd. (“Asia Era Fund”), which had limited operation since its inception on December 11, 2015. In connection with the reorganization of the legal structure for the initial public offering (“IPO”) of the Company, Asia Era Fund was spun off in two steps in August 2018 through September 2018. Reorganization A reorganization of the Company’s legal structure was completed on September 19, 2018 (the “Reorganization”). The Reorganization involved the transfer of the ownership interest in ATIF and the spinoff of Asia Era Fund. ATIF became the ultimate holding company of ATIF HK, Huaya, and Qianhai, which were all controlled by the same shareholders before and after the Reorganization. On September 5, 2018, Huaya entered into a series of contractual arrangements with the owners of Qianhai. These agreements include an Exclusive Service Agreement, an Equity Pledge Agreement, a Call Option Agreement, and a Shareholders’ Voting Rights Proxy Agreement (collectively “VIE Agreements”). Pursuant to the above VIE Agreements, Huaya has the exclusive right to provide Qianhai consulting services related to business operations including technical and management consulting services. All the above contractual arrangements obligate Huaya to absorb a majority of the risk of loss from business activities of Qianhai and entitle Huaya to receive a majority of Qianhai’s residual returns. In essence, Huaya has gained effective control over Qianhai. Therefore, the Company believes that Qianhai should be considered as a Variable Interest Entity (“VIE”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation.” Termination of VIE agreements with Qianai On February 3, 2021, the Company closed termination of its variable interest entity (“VIE”) agreements with Qianhai Asia Times (Shenzhen) International Financial Services Co., Ltd. (“Qianhai”). Upon the termination, Qianhai transferred all of its business and employees to Huaya, a wholly owned subsidiary of the Company. The termination of the Qianhai VIE agreements did not contain any penalties or non-compete agreements. Qianhai transferred all of its China-based business and employees to Huaya before termination of the VIE agreements. The termination of the VIE agreements did not discontinue our consulting service business because such services has been transferred to Huaya and ATIF Inc. to serve the clients located in China and the United States, respectively. The termination also did not cause material impairment of our long-lived assets (primarily including fixed assets such as office furniture and equipment and automobile) because all of the fixed assets have been transferred to our PRC subsidiary Huaya upon termination of the VIE agreements. The management believed the termination of Qianhai VIE agreements does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The termination is not accounted as discontinued operations in accordance with ASC 205-20 (see Note 5). Initial Public Offering On April 29, 2019, the Company completed its IPO of 2,074,672 ordinary shares (414,935 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at a public offering price of $5.00 per share ($25.00 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). The gross proceeds were approximately $10.4 million before deducting the underwriter’s commissions and other offering expenses, resulting in net proceeds of approximately $8.8 million to the Company. In connection with the offering, the Company’s ordinary shares began trading on the NASDAQ Capital Market on May 3, 2019, under the symbol “ATIF.” Acquisition of Leaping Group Co,. Ltd. (“LGC”) On April 22, 2020 , the Company completed an acquisition of 51.2% of the equity interest of Leaping Group Co., Ltd. (“LGC”) from its original shareholders for a total consideration of approximately $22.92 million, including cash consideration of $1.85 million and issuance of 9,940,002 shares (1,988,000 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) of ATIF’s common stock with fair value of approximately $21.07 million (see Note 4). LGC, through its subsidiaries and similar VIE contractual agreements, controls Leaping Media Group Co., Ltd. (“LMG”), an operating entity located in Shenyang, China. LMG, along with its operating subsidiaries, is engaged in the multi-channel advertising business, event planning and execution business, film production business and movie theater operating business (collectively “media business”) in China. LMG used to be one of the Company’s clients that sought business advisory services. Upon closing of the acquisition, ATIF owns 51.2% equity interest of LGC and hereby consolidates operations of LGC. Disposition of LGC On January 29, 2021, the Company completed a disposition of 51.2% of the equity interest of LGC. The Company sold all of its shares of LGC to Jiang Bo, Jiang Tao and Wang Di (collectively, the “Buyers”) in exchange for (i) 5,555,548 ordinary shares (1,111,110 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) of the Company owned by the Buyers and (ii) payment by the Buyers in the amount of $2,300,000 plus interest at an interest rate of 10% per annum on the unpaid amount if the principal amount of US$2,300,000 is not paid by January 14, 2022. All principal and accrued and unpaid interest shall be due on January 14, 2023. In accordance with ASC 205-20, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. The disposition of LGC met the criteria in paragraph 205-20-45-1E and was reported as a discontinued operation (Note 4). Setup of AITF GP and ATIF LP On January 21, 2021, the Company incorporated ATIF-1 GP, LLC (“ATIF GP”) under the laws of Delaware of the United States. ATIF GP is a wholly owned subsidiary of the Company, and focuses on fund management business. On February 16, 2021, ATIF-1, LP (“ATIF LP”) was established as a private equity fund through our indirectly-wholly owned subsidiary, ATIF-1 GP, LLC (“ATIF GP”), a Delaware limited liability company, as the general partner. The Company owns 31.25% limited partner interest in ATIF, LP. ATIF LP manages approximately $4.8 million assets under management (“AUM”) as of September 30, 2021. The investment strategy of the fund involves directional long and short investments in equity securities, primarily issued by U.S. large capitalization companies, and American Depositary Receipts (“ADRs”) related to Chinese companies of various sizes, including private companies. The investment manager for the fund is ATIF Inc. |
Liquidity and Going Concern
Liquidity and Going Concern | 12 Months Ended |
Jul. 31, 2021 | |
Going Concern Disclosure [Abstract] | |
LIQUIDITY and GOING CONCERN | NOTE 2 – LIQUIDITY and GOING CONCERN For the years ended July 31, 2021, 2020 and 2019, the Company reported a net income (loss) from continuing operations of approximately $(2.4) million, $(6.3) million and $0.4 million, respectively, and operating cash outflows from continuing operations of approximately $2.5 million, $5.2 million and $3.0 million. In assessing the Company’s ability to continue as a going concern, the Company monitors and analyzes its cash and its ability to generate sufficient cash flow in the future to support its operating and capital expenditure commitments. As of July 31, 2021, the Company had cash of $5.6 million and short-term investment in trading securities of $1.0 million, which are highly liquid at the Company’s discretion. On the other hand, the Company had current liabilities of $1.3 million. The Company also had $2.3 million receivable from buyers of LGC in connection with the disposal of LGC. If we fail to collect the amount due from buyers of LGC, we may incur significant bad debt in the near future. In addition, due to the recent intense relationship between the U.S. and China, which has become more fragile as a result of the outbreak and spread of COVID-19, plus the tightening of U.S. legislation and public listing rules to curb some small Chinese companies to access the U.S. capital markets, an increasing number of Chinese companies are putting off or slowing down their plans for U.S. listings due to these uncertainties. Also, the PRC government has recently stated that it plans to propose new rules that would ban companies with large amounts of sensitive consumer data from going public in the U.S. which could deter PRC technology firms to list abroad. The PRC government has primarily focused on firms in the internet, telecommunications and education industry from listing abroad due to political or national-security concerns. As a result of these statements, this position by the PRC government could adversely affect our business consulting services which assist PRC companies to go public in the United States. Furthermore, due to the impact of COVID-19, some of our existing customers may experience financial distress or business disruptions, which could lead to potential delay or default on their payments. Any increased difficulty in collecting accounts receivable, or early termination of our existing consulting service agreements due to deterioration in economic conditions could further negatively impact our cash flows. Given these factors, our potential customers’ perception and confidence to go public in the United States has been negatively impacted and our operating revenue and cash flows may continue to underperform in the near terms. Although we had cash of $5.6 million as of July 31, 2021, given the above mentioned uncertainties, the management believes that the Company will continue as a going concern in the following 12 months from the date the Company’s 2021 consolidated financial statements are issued. Currently, the Company intends to finance its future working capital requirements and capital expenditures from cash generated from operating activities and funds raised from equity financings. On November 5, 2020, the Company closed a registered direct offering of 4,347,826 of its ordinary shares (869,565 of its ordinary shares retrospectively restated for effect of reverse stock split on August 30, 2021) at a purchase price of $0.92 per share ($4.60 per share retrospectively restated for effect of reverse stock split on August 30, 2021), for a net proceed of $3.5 million after deducting issuance costs. The Company has also issued to the investors unregistered warrants to purchase up to an aggregate of 4,347,826 of its ordinary shares (869,565 of its ordinary shares retrospectively restated for effect of reverse stock split on August 30, 2021) at an exercise price of $2.74 per share (as adjusted in connection with the reverse stock split on August 30, 2021 and pursuant to the terms and conditions of the warrants), subject to adjustment, in a concurrent private placement. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – 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”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The consolidated financial statements of the Company include the accounts of the Company and its subsidiaries. The consolidated financial statements of the Company also include the accounts of ATIF LP, for which the Company is an investment manager and has primary beneficiary over the ATIF LP. All intercompany balances and transactions have been eliminated upon consolidation. As of July 31, 2021, the Company’s consolidated financial statements reflect the operating results of the following entities: Name of Entity Date of Place of % of Principal Activities Parent company: ATIF Holdings Limited (“ATIF”) January 5, 2015 British Virgin Islands Parent Investment holding Wholly owned subsidiaries of ATIF ATIF Limited (“ATIF HK”) January 6, 2015 Hong Kong 100% Investment holding ATIF Inc. (“ATIF USA”) October 26, 2020 USA 100% Consultancy and information technology support Huaya Consultant (Shenzhen) Co., Ltd. (“Huaya”) May 20, 2015 PRC 100% WFOE, Consultancy and information technology support ATIF-1 GP, LLC (“ATIF GP”) January 21, 2021 USA 100% Fund management ATIF-1 LP, LLC (“ATIF LP”) February 16, 2021 USA 31.25% Investment The VIE contractual arrangements Foreign investments in domestic Chinese companies that engage in private equity investment business and media business are both restricted in China under current PRC laws and regulations. For the year ended July 31, 2020 and 2019 and before the termination of the Qianhai VIE agreements on February 3, 2021 (see Note 5) and disposition of LGC on January 31, 2021 (see Note 4), the Company was still operating under the VIE structure and the Company’s main operating entities Qianhai and LMG are controlled through contractual arrangements in lieu of direct equity ownership by the Company or any of its subsidiaries. Risks associated with the VIE structure The Company believes that the contractual arrangements with its VIEs and respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIEs; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds from the IPO to finance the Company’s business and operations in China. The Company’s ability to conduct its consulting services business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its respective shareholders and it may lose the ability to receive economic benefits from its VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary, or its VIEs. The Company has not provided any financial support to the VIEs for the years ended July 31, 2021, 2020, and 2019. The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of July 31, 2021 2020 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Current assets $ - $ - $ - $ 2,469,829 $ 1,554,585 $ 4,024,414 Non-current assets - - - 184,740 5,493,284 5,678,024 Total assets - - - 2,654,569 7,047,869 9,702,438 Current liabilities - - - 1,441,148 5,736,358 7,177,506 Non-current liabilities - - - 65,574 3,179,625 3,245,199 Total liabilities - - - 1,506,722 8,915,983 10,422,705 Shareholders’ equity (deficit) $ - $ - $ - $ 1,147,847 $ (1,868,114 ) $ (720,267 ) The summarized operating results of the VIEs are as follows: For the For the For the years ended July 31, 2021 2021 2020 2019 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Qianhai VIE Operating revenue $ 380,954 $ 2,117,551 $ 2,498,505 $ 645,127 $ 40,872 $ 685,999 $ 2,777,618 Income (loss) from operations $ (60,242 ) $ (1,154,067 ) $ (1,214,309 ) $ (1,471,095 ) $ (4,781,593 ) $ (6,252,688 ) $ 884,789 Income (loss) before income taxes $ (63,765 ) $ (1,166,287 ) $ (1,230,052 ) $ (1,562,037 ) $ (4,857,484 ) $ (6,419,521 ) $ 930,361 Net income (loss) $ (63,765 ) $ (1,142,160 ) $ (1,205,925 ) $ (1,562,037 ) $ (4,933,748 ) $ (6,495,785 ) $ 697,631 The summarized cash flow information of the VIEs are as follows: For the For the For the years ended July 31, 2021 2021 2020 2019 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Qianhai VIE Net cash provided by (used in) operating activities $ (286,657 ) $ (119,612 ) $ (406,269 ) $ 175,530 $ (662,795 ) $ (487,265 ) $ (3,380,071 ) Net cash provided by (used in) investing activities $ - $ 118,541 $ 118,541 $ 36,412 $ 1,415,579 $ 1,451,991 $ 2,700,687 Net cash provided by (used in) financing activities $ - $ - $ - $ - $ (734,347 ) $ (734,347 ) $ (14,626 ) Business Combination In April 2020, the Company acquired 51.2% ownership interest in LGC (see Note 6). Business combination is accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. Noncontrolling Interests As of July 31, 2020, the non-controlling interests represent minority shareholders’ 48.8% ownership interest in LGC not acquired by the Company in connection with the Company’s acquisition of LGC. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the stockholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statements of operations and comprehensive income (loss) as an allocation of the total loss for the year between non-controlling interest holders and the stockholders of the Company. In January 2021, the Company disposed of LGC and did not have noncontrolling interest due to noncontrolling shareholders of LGC. As of July 31, 2021, the non-controlling interest represent minority shareholders’ 68.75% ownership interest in ATIF LP, over which the Company had 31.25% ownership interest and acted as an investment manager through ATIF GP, its wholly owned subsidiary. The Company had non-controlling interest of $120,809 as of July 31, 2021. Use of Estimates In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, revenue recognition, provision necessary for contingent liabilities and realization of deferred tax assets. Actual results could differ from those estimates. Cash and Cash Equivalents Cash includes cash on hand and demand deposits in accounts maintained with commercial banks. 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. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in the PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Accounts Receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. 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 receivables balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). 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 July 31, 2021 and 2020, the Company had allowance for uncollectible balances of $ nil Nil Investment in Trading Securities Equity securities not accounted for using the equity method are carried at fair value with changes in fair value recorded in the consolidated statements of operations and comprehensive income (loss), according to ASC 321 “Investments — Equity Securities”. During the years ended July 31, 2021 and 2020, the Company purchased certain publicly-listed equity securities through various open market transactions and accounted for such investments as “investment in trading securities” and subsequently measure the investments at fair value. The Company made a loss of $258,738 and a gain of $201,051 from investment in trading securities for the years ended July 31, 2021 and 2020. There was no such transaction for the year ended July 31, 2019. Property and Equipment, net Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Useful life Furniture, fixtures and equipment 3-5 years Transportation vehicles 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations and comprehensive income (loss) as other income or expenses. Impairment of Long-lived Assets Long-lived assets, including plant and equipment and intangible with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the years ended July 31, 2021, 2020 and 2019, the Company recorded impairment against long-lived assets of $ nil nil Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets 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 to the valuation methodology are unobservable. Fair value of investment in trading securities are based on quoted prices in active markets. The carrying amounts of the Company’s other financial instruments including cash and cash equivalents, deposits, investment in life insurance contract, due from buyers of LGC and other current assets, accounts payable, and accrued expenses and other current liabilities approximate their fair values because of the short-term nature of these assets and liabilities. For lease liabilities, fair value approximates their carrying value at the year end as the interest rates used to discount the host contracts approximate market rates. Revenue Recognition The Company recognizes revenue in accordance with ASC 606 Revenue from Contracts with Customers (“ASC 606”). To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company currently generates its revenue from the following main sources: (1) Revenue from customer’s initial registration fee In order to engage with the Company for various consulting services, a new customer is required to pay an initial non-refundable registration fee to the Company and the Company will then post the customer’s information and profiles on its website, at which point, the Company’s performance obligations are satisfied and such registration fee is recognized as revenue. The Company does not charge additional customer profile maintenance fee after the initial posting is completed as limited effort is required for the Company to maintain such information on an on-going basis. No revenues were generated from customer’s initial registration for the years ended July 31, 2021, and 2020 and 2019. (2) Revenue from consulting services The Company provides various consulting services to its members, especially to those who have the intention to be publicly listed in the stock exchanges in the United States and other countries. The Company categorizes its consulting services into three Phases: Phase I consulting services primarily include due diligence review, market research and feasibility study, business plan drafting, accounting record review, and business analysis and recommendations. Management estimates that Phase I normally takes about three months to complete based on its past experience. Phase II consulting services primarily include reorganization, pre-listing education and tutoring, talent search, legal and audit firm recommendation and coordination, VIE contracts and other public-listing related documents review, merger and acquisition planning, investor referral and pre-listing equity financing source identification and recommendations, and independent directors and audit committee candidate’s recommendation. Management estimates that Phase II normally takes about eight months to complete based on its past experience. Phase III consulting services primarily include shell company identification and recommendation for customers expecting to become publicly listed through reverse merger transaction; assistance in preparation of customers’ public filings for IPO or reverse merger transactions; and assistance in answering comments and questions received from regulatory agencies. Management believes it is very difficult to estimate the timing of this phase of service as the completion of Phase III services is not within the Company’s control. Each phase of consulting services is stand-alone and fees associated with each phase are clearly identified in service agreements. Revenue from providing Phase I and Phase II consulting services to customers is recognized ratably over the estimated completion period of each phase as the Company’s performance obligations related to these services are carried out over the whole duration of each Phase. Revenue from providing Phase III consulting services to customers is recognized upon completion of the reverse merger transaction or IPO transaction when the Company’s promised services are rendered and the Company’s performance obligations are satisfied. Revenue that has been billed and not yet recognized is reflected as deferred revenue on the balance sheet. Depending on the complexity of the underlying service arrangement and related terms and conditions, significant judgments, assumptions, and estimates may be required to determine when substantial delivery of contract elements has occurred, whether any significant ongoing obligations exist subsequent to contract execution, whether amounts due are collectible and the appropriate period or periods in which, or during which, the completion of the earnings process occurs. Depending on the magnitude of specific revenue arrangements, adjustment may be made to the judgments, assumptions, and estimates regarding contracts executed in any specific period. Revenue from LGC Before the disposal of 51.2% equity interest in LGC, the Company generated revenue from Multi-Channel advertising, Event planning and execution, Movie Theater Operating and others. The revenues from these revenue streams were classified as a component of “net loss from discontinued operations” upon the close of the disposition. See Note 4. (1) Multi-Channel advertising The Company’s multi-channel advertising services include pre-movie advertisements display, elevator and supermarket advertising, and brand promotion. Most of the Company’s client contracts are individually negotiated and, accordingly, the service period and prices vary significantly. Service periods typically range from one day to one year. The Company provides advertising services over the contract period. Revenues from advertising services are recognized on straight-line basis over the contract period, which approximates the pattern of when the underlying services are performed. Prepayments for advertising services are deferred and recognized as revenue when the advertising services are rendered and the Company’s performance obligations are satisfied. The Company also provides advertising services through its regional distributors. Pursuant to advertising services distribution agreements, the Company grants the regional distributors the exclusive rights to provide local pre-movie advertising. The advertising services distribution agreements with these regional distributors typically have terms ranging from 11 to 24 months without automatic renewal provisions. Under the advertising services distribution agreements, the Company has the right to set the minimum local pre-movie advertisement prices in the movie theaters, regulate the content and quality of local pre-movie advertisements according to related laws and movie theater rules, and examine the source of local pre-movie advertisements and refuse to display advertisements from any competitors. The receipt of distribution fee is initially recorded as deferred revenue and is recognized as revenue ratably as services are rendered and the Company’s performance obligations are satisfied. (2) Event planning and execution The Company’s event planning and execution business includes planning and arrangement of events, and production of related advertising materials. From the preparation of the events to executing it typically takes no more than one week. Revenue is realized when the service is performed in accordance with the client arrangement and upon the completion of the earnings process. (3) Movie Theater Operating The Company’s movie theater operating revenues are generated primarily from box office admissions and theater food and beverage sales. Revenues of this business line are recognized when admissions and food and beverage sales are rendered at the theaters and are reported net of sales tax. The Company defers 100% of the revenue associated with the sales of gift cards and packaged tickets until such time as the items are redeemed. For the years ended July 31, 2021, 2020 and 2019, the disaggregation of revenues from continuing operations and discontinued operations was as below: For the years ended July 31, 2021 2020 2019 Consulting service revenue from continuing operations* $ 936,935 $ 645,127 $ 3,078,758 Revenue from discontinued operations (multi-channel advertising, event planning and execution and movie theater operation business under LGC) $ 2,117,551 $ 40,872 $ - * Qianhai transferred all of its China-based consulting service business and employees to Huaya before termination of the VIE agreement. The termination of the VIE agreement did not cause material impairment of our long-lived assets (primarily including fixed assets such as office furniture and equipment and automobile) because all of the fixed assets have been transferred to our PRC subsidiary Huaya upon termination of the VIE agreements and there was no assets held for sale or disposal. The management believed the termination of Qianhai VIE agreements does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The termination is not accounted as discontinued operations in accordance with ASC 205-20 (see Note 5). 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. An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The Company did not have unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of July 31, 2021. As of July 31, 2021, all of the Company’s income tax returns for the tax years ended December 31, 2016 through December 31, 2020 remain open for statutory examination by relevant tax authorities. Value Added Tax (“VAT”) Sales revenue derived from advertising service revenues is subject to VAT. The applicable VAT rate for the Company is 3% for Huaya. 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. 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 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. For the years ended July 31, 2021, 2020 and 2019, there were no dilutive shares. Foreign Currency Translation The functional currency for ATIF is the U.S Dollar (“US$”). ATIF HK uses Hong Kong dollar as its functional currency. However, ATIF currently only serve as the holding company and did not have active material operations as of the date of this report. The Company operates its business through ATIF HK and Huaya as of July 31, 2021. The functional currency of the Huaya is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are 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 results of operations. The 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 US$ at the rates used in translation. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: July 31, 2021 July 31, 2020 July 31, 2019 Foreign currency Period-end Average rate Period-end Average rate Period-end Average rate RMB: 1USD 0.1547 0.1521 0.1432 0.1420 0.1453 0.1463 HKD: 1USD 0.1282 0.1282 0.1290 0.1284 0.1278 0.1276 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 US$ is reported in other comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss). Operating Leases The Company adopted ASU No. 2016-02—Leases (Topic 842) since August 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The standard did not materially impact the consolidated net earnings and cash flows. Upon adoption of ASC 842, the lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. The right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. As the rates implicit in the lease cannot be readily determined, the incremental borrowing rates at the lease commencement date are used in determining the imputed interest and present value of lease payments. The incremental borrowing rates were determined using a portfolio approach based on the rates of interest that the Company would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company recognizes the single lease cost on a straight-line basis over the remaining lease term for operating leases. The Company has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less; expenses for these leases are recognized on a straight-line basis over the lease term. Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Discontinued operation In accordance with ASC 205-20, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. The Company had four operating business lines, including Business Advisory and Consulting Services, Multi-channel Advertising Services, Event Planning and Execution Services and Movie Theater Operation Services. However, due to changes in our organizational structure associated with the LGC, which engaged in Multi-channel Advertising Services, Event Planning and Execution Services and Movie Theater Operation Services, as a discontinued operation (Note 4 – Discontinued operation), management has determined that the Company now operates in one operating segment with one reporting segment as of July 31, 2021, which is the consulting service business. Reclassification Certain items in the financial statements of comparative period have been reclassified to conform to the financial statements for the current period, primarily for the effects of discontinued operations of LGC (see Note 4 for detail) and reverse split of the Company’s ordinary shares (see Note 15 for detail). Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the |
Discontinued Operation of LGC
Discontinued Operation of LGC | 12 Months Ended |
Jul. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATION OF LGC | NOTE 4 – DISCONTINUED OPERATION OF LGC On January 29, 2021, the Company completed a disposition of 51.2% of the equity interest of LGC. The Company sold all of its shares of LGC to Jiang Bo, Jiang Tao and Wang Di (collectively, the “Buyers”) in exchange for (i) 5,555,548 ordinary shares (1,111,110 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) of the Company owned by the Buyers and (ii) payment by the Buyers in the amount of $2,300,000 plus interest at an interest rate of 10% per annum on the unpaid amount if the principal amount of $2,300,000 is not paid by January 14, 2022. All principal and accrued and unpaid interest shall be due on January 14, 2023. Upon completion of the Disposition, the Company does not bear any contractual commitment or obligation to the media business or the employees of LGC, nor to the Buyers. On January 29, 2021, management was authorized to approve and commit to a plan to sell LGC, therefore the major assets and liabilities relevant to the disposal are reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes, are reported as components of net loss separate from the net loss of continuing operations in accordance with ASC 205-20-45. The following is a reconciliation of net loss of $5.5 million from disposition in the consolidated statements of operations and comprehensive loss: As of Share consideration of 5,555,548 ordinary shares (1,111,110 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), at $1.08 per share ($5.40 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) on January 29, 2021 $ 5,999,992 Cash consideration 2,300,000 Consideration in exchange for the disposal 8,299,992 Noncontrolling interest of LGC 16,516,711 Less: Net liabilities (comprised of assets of $7,804,412 and liabilities of $11,001,011) 3,196,599 28,013,302 Impairment of goodwill relating to discontinued operations (25,902,394 ) Impairment of intangible assets relating to discontinue operations (6,986,615 ) Amortization of intangible assets arising from acquisition of LGC (608,031 ) Net loss from disposal of discontinued operations $ (5,483,738 ) The following is a reconciliation of the carrying amounts of major classes of assets and liabilities held for sale in the consolidated balance sheet as of January 29, 2021 and July 31, 2020. January 29, July 31, Carrying amounts of major classes of assets held for sale: Cash $ 6,297 $ 18,601 Accounts receivable 1,241,178 939,392 Other current assets 992,333 596,591 Goodwill 25,902,394 Intangible assets 7,594,646 Property and equipment, net 2,125,388 2,017,151 Right of use assets 3,422,985 3,147,825 Other noncurrent assets 16,231 328,308 Total assets of disposal group $ 7,804,412 $ 40,544,908 Carrying amounts of major classes of liabilities held for sale: Short-term borrowings $ 154,842 $ 143,248 Taxes payable 3,618,661 3,344,048 Other current liabilities 3,502,209 1,932,614 Lease liabilities 3,725,299 3,496,070 Total liabilities of disposal group $ 11,001,011 $ 8,915,980 The following is a reconciliation of the amounts of major classes of operations classified as discontinued operations in the consolidated statements of operations and other comprehensive loss for the years ended July 31, 2021, 2020 and 2019. For the years ended July 31, 2021 2020 2019 Discontinued Operations Revenues $ 2,117,551 $ 40,872 $ - Cost of revenues (1,557,277 ) (227,410 ) - Total operating expenses (1,714,341 ) (5,000,409 ) - Loss from operations (1,154,067 ) (5,186,947 ) - Impairment of goodwill and property and equipment - (5,673,234 ) Total other income (expense), net 12,220 (75,891 ) - Income tax expenses (313 ) (76,264 ) - Net loss from discontinued operations, net of tax (1,142,160 ) (11,012,336 ) - Net loss from disposal of discontinued operations (5,483,738 ) - - Net Loss from Discontinued Operations $ (6,625,898 ) $ (11,012,336 ) $ - |
Termination of Vie Agreements w
Termination of Vie Agreements with Qianhai | 12 Months Ended |
Jul. 31, 2021 | |
Business Combinations [Abstract] | |
TERMINATION OF VIE AGREEMENTS WITH QIANHAI | NOTE 5 – TERMINATION OF VIE AGREEMENTS WITH QIANHAI On January 4, 2021, the Company established an office in California, USA, through its wholly owned subsidiary ATIF Inc., a California corporation, and launched, in addition to the business consulting services, additional service models consisting of asset management, investment holding and media services to expand the Company’s business with a flexible business concept to achieve a goal of high growth revenue and strong profit growth. Clients located within United States will be serviced by ATIF Inc., while clients outside United States will be supported by ATIF Inc.’s business center abroad. Huaya Consultant (Shenzhen) Co., Ltd. (“Huaya”), a wholly owned subsidiary of ATIF, will serve as ATIF Inc.’s business center in PRC for clients located in the PRC. As part of streamlining the management chain and to improve management control with a goal of lower costs, the Company transitioned the services from Qianhai to ATIF Inc. and Huaya and closed termination of the VIE agreements with Qianhai on February 3, 2021. The termination of the Qianhai VIE agreement did not discontinue the Company’s public listing related consulting service business, because such consulting service business has been transferred to Huaya to serve the client located in China and ATIF Inc. to serve the clients located within the United States. There were no penalties or non-compete agreements derived from the termination of the Qianhai VIE agreements. Qianhai transferred all of its China-based business and employees to Huaya before termination of the VIE agreement. The termination of the VIE agreement did not cause material impairment of our long-lived assets (primarily including fixed assets such as office furniture and equipment and automobile) because all of the fixed assets have been transferred to our PRC subsidiary Huaya upon termination of the VIE agreement and there were no assets held for sale or disposal. Prior to the termination, operating revenue generated through Qianhai VIE amounted to $645,127, and net loss amounted to $(1,562,037) for the year ended July 31, 2020, respectively, and net assets of Qianhai VIE amounted to $ 1,147,847 as of July 31, 2020. as of the date of termination, Qianhai had total assets of $266,235 and total liabilities of $656,417, with a negative net assets of $0.4 million, the abstract amount accounted for 4% of the consolidated net assets of the Company as of July 31, 2021. In addition, Qianhai generated net income of approximately $0.4 million, the abstract amount of which accounted for 5% of consolidated net loss for the year ended July 31, 2021. The Company recorded a gain of $390,183 from the termination in the account of “other income (expenses), net” in the consolidated statements of operations and comprehensive income (loss). The management believed the termination of Qianhai VIE agreements does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The termination is not accounted as discontinued operations in accordance with ASC 205-20. |
Business Combination
Business Combination | 12 Months Ended |
Jul. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 6 – BUSINESS COMBINATION On April 8, 2020, the Company signed a Share Exchange Agreement and a Debt Conversion and Share Purchase Agreement with the shareholders of Leaping Group Co., Ltd (“LGC”), to acquire 51.2% of the equity interest of LGC. LGC is primarily engaged in multi-channel advertising, event planning and execution, film and TV program production, and movie theater operations in the PRC. On April 22, 2020 (the “Closing Date”), the Company completed the acquisition of approximately 51.2% of the equity interest of LGC for a total consideration of approximately $22.92 million, including cash consideration of $1.85 million in the form of debt forgiveness and issuance of a total of 9,940,002 shares (1,988,000 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) of ATIF’s common stock with the fair value of approximately $21.07 million based on the closing price of the Company’s stock at the Closing Date. Under the terms of the Debt Conversion and Share Purchase Agreement, LGC issued 3,934,029 of its ordinary shares to the Company in exchange for (i) the satisfaction of the outstanding debt owed to the Company in the amount of US$1,851,000, and (ii) the issuance of 2,800,000 of the Company’s ordinary shares (560,000 of the Company’s ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) to LGC. Concurrent with the closing of the Debt Conversion and Share Purchase Agreement, and under the terms of the Share Exchange Agreement, LGC assigned an aggregate of 6,283,001 of its ordinary shares to the Company in exchange for an aggregate of the Company’s 7,140,002 ordinary shares (1,428,000 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). The transaction was accounted for as a business combination using the purchase method of accounting in accordance with ASC 805-10-20. The purchase price allocation of the transaction was determined by the Company with the assistance of an independent appraisal firm based on the fair value of the assets acquired and liabilities assumed as of the acquisition date. The following table presents the purchase price allocation to assets acquired and liabilities assumed for LGC as of the acquisition date. The non-controlling interest represents the fair value of the 48.8% equity interest not held by the Company: As of Cash and cash equivalents $ 1,060,435 Accounts receivable 2,613,970 Prepayment and other current assets 2,219,950 Property and equipment 2,728,000 Intangible assets (trade name and customer relationship) 8,000,000 Deferred film production cost 323,522 Deferred income tax assets 75,822 Taxes payable (3,255,935 ) Other current liabilities (2,701,495 ) Fair value of non-controlling interest (19,664,326 ) Goodwill 31,523,861 Total purchase consideration $ 22,923,804 The intangible assets mainly include LGC’s trade name of $1.3 million and customer relationship of $6.7 million, with definite lives of 9.6 years and 6.2 years, respectively. The goodwill is mainly attributable to the excess of the consideration paid over the fair value of the net assets acquired that cannot be recognized separately as identifiable assets under U.S. GAAP. Goodwill is not amortized and is not deductible for tax purposes. The fair value of the non-controlling interest in LGC was determined based on the purchase price allocation report prepared by an independent third-party appraiser by using discount cash flow model. The amounts of revenue and net loss of LGC included in the Company’s consolidated statement of operations and comprehensive income (loss) from the acquisition date to July 31, 2020 are as follows: From Net Revenue $ 40,872 Net loss $ (4,933,748 ) As discussed in Note 4, on January 29, 2021, the Company completed a disposition of 51.2% of the equity interest of LGC. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jul. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 7 – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets from the Company’s continuing operations consisted of the following: As of July 31, 2021 2020 Prepayment for advertising service fee (a) $ 600,000 $ 600,000 Prepaid service fees 20,000 64,189 Prepaid insurance service fee 58,150 - Advance to vendors 10,000 10,000 Others 300 22,340 Total $ 688,451 $ 696,529 (a) Prepayment for advertising services represent the advance payments made by the Company to a third party advertising company for producing advertising contents. These prepayments are typically expensed over the period when the services are performed. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 8 – PROPERTY, PLANT AND EQUIPMENT, NET Property and equipment, net, from the Company’s continuing operations, consisted of the following: As of July 31, 2021 2020 Furniture, fixtures and equipment $ 187,053 $ 141,065 Vehicles 574,606 575,831 Total 761,659 716,896 Less: accumulated depreciation (189,632 ) (110,656 ) Property and equipment, net $ 572,027 $ 606,240 Depreciation expense was $124,661, $85,183 and $20,615 for the years ended July 31, 2021, 2020, and 2019, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 9 – INTANGIBLE ASSETS Net intangible assets from the Company’s continuing operations consisted of the following: As of July 31, 2021 2020 Financial and news platform $ 56,250 $ 56,611 Software 320,000 339,569 Total 376,250 396,180 Less: accumulated amortization (142,919 ) (65,742 ) Intangible assets $ 233,331 $ 330,456 Amortization expense was $80,000, $35,545 and $29,707 for the years ended July 31, 2021, 2020, and 2019, respectively. |
Investment in Life Insurance Co
Investment in Life Insurance Contract | 12 Months Ended |
Jul. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
INVESTMENT IN LIFE INSURANCE CONTRACT | NOTE 10 – INVESTMENT IN LIFE INSURANCE CONTRACT On July 29, 2019, the Company invested $1,290,289 (HKD10 million) to purchase a long-term life insurance investment instrument with Manulife (International) Limited (“Manulife”) in order to earn interest income, with ATIF Limited as the insurance beneficiary. The Company originally expects to hold this investment for five years in order to avoid surrender charge. Early redemption fee applies to subscription less than five years. The insurance company Manulife will invest the funds in certain portfolio of financial instruments, including money market funds, private fund, bonds or mutual funds, with variable rates of return on the investment. Historically, the rates of return on similar investment products with Manulife ranged from 8.69% to 11.49%, with an average of 9.48% per annum. Interest income is to be paid to the Company on a monthly basis. The interest earned will be recognized in the consolidated statements of operations over the contractual term of this investment, unless the Company elects to early terminate the contract. The life insurance policy became effective on August 3, 2019. In order to support the Company’s working capital need, on September 22, 2020, the Company early terminated the life insurance investment instrument and received a refund of $1,225,105 (HKD 9.5 million). The Company was subject to a penalty of $65,001 (HKD 0.5 million) on early termination, which was recorded in the consolidated statements of operations and comprehensive income (loss). |
Investments in Trading Securiti
Investments in Trading Securities | 12 Months Ended |
Jul. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN TRADING SECURITIES | NOTE 11 – INVESTMENTS IN TRADING SECURITIES As of July 31, 2021 and 2020, the balance of investments in trading securities represented certain equity securities of listed companies purchased through various open market transactions by the Company during the relevant periods. The investments are initially recorded at cost, and subsequently measured at fair value with the changes in fair value recorded in other income (expenses), net in the consolidated statement of income and comprehensive income (loss). For the years ended July 31, 2021 and 2020, the Company recorded a decrease in fair value of $258,738 and an increase in fair value of $201,051 such investments. Investments in trading securities consisted of the following: As of July 31, 2021 2020 Trading securities invested by ATIF $ 871,809 $ 918,675 Trading securities invested by ATIF LP 155,700 - $ 1,027,509 $ 918,675 |
Operating Leases
Operating Leases | 12 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
OPERATING LEASES | NOTE 12 – OPERATING LEASES The Company leases offices space under non-cancelable operating leases, with lease terms ranging between 14 months to 36 months. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Rent expense associated with the Company’s continuing operations for the years ended July 31, 2021, 2020 and 2019 was $616,113, $537,262 and $515,010, respectively. Effective August 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method, which allows the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allows the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. The following table presents the operating lease related assets and liabilities recorded on the balance sheets of the Company’s continuing operations as of July 31, 2021 and 2020. As of July 31, 2021 2020 Right-of- use assets, net $ 745,125 $ 620,593 Operating lease liabilities, current 382,298 433,904 Operating lease liabilities, noncurrent 387,307 203,265 Total operating lease liabilities $ 769,605 $ 637,169 The weighted average remaining lease terms and discount rates for all of operating leases from the Company’s continuing operations were as follows as of July 31, 2021 and 2020: As of July 31, 2021 2020 Remaining lease term and discount rate Weighted average remaining lease term (years) 2.08 1.53 Weighted average discount rate 4.90 % 4.90 % The weighted average remaining lease terms and discount rates for all of operating leases for the discontinued operations were as follows as of July 31, 2020: 2020 Remaining lease term and discount rate Weighted average remaining lease term (years) 10.21 Weighted average discount rate 4.90 % The following is a schedule of maturities of lease liabilities as of July 31, 2021 and 2020: As of July 31, 2021 2022 $ 409,922 2023 252,969 2024 and thereafter 150,468 Total lease payments 813,360 Less: imputed interest (43,755 ) Present value of lease liabilities $ 769,605 As of 2021 $ 462,840 2022 198,374 2023 and thereafter - Total lease payments 661,214 Less: imputed interest (24,045 ) Present value of lease liabilities $ 637,169 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jul. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 – RELATED PARTY TRANSACTIONS During the year ended July 31, 2021 and 2019, the Company did not enter into transactions with related parties. During the year ended July 31, 2020, the Company leased office space in Hong Kong from Asia Time (HK) International Finance Service Limited (“Asia Time HK”), an entity controlled by the Company’s controlling shareholder. The Company paid office lease expense of $79,875 to Asia Time HK for the year ended July 31, 2020. |
Taxes
Taxes | 12 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 14 – TAXES (a) VAT, Business Tax and related surcharges Effective on September 1, 2012, a pilot program (the “Pilot Program”) for transition from the imposition of PRC business tax (“Business Tax”) to the imposition of VAT for revenues from certain industries and certain cities. On May 1, 2016, the transition from the imposition of Business Tax to the imposition of VAT, was expanded to all industries in China. Huaya qualifies as a Small and Low Profit Enterprise, and is subject to a preferential VAT of 3% and related surcharges on VAT payable at a rate of 12% since that date. (b) 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. British Virgin Islands Under the current laws of the British Virgin Islands, the Company is not subject to tax on income or capital gains in the British Virgin Islands. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong ATIF HK is subject to Hong Kong profits tax at a rate of 16.5%. However, ATIF HK did not generate any assessable profits arising in or derived from Hong Kong for the fiscal years ended July 31, 2021, 2020, and 2019, and accordingly no provision for Hong Kong profits tax has been made in these periods. PRC The PRC Corporate Income Tax (“CIT”) is calculated based on the taxable income determined under the applicable CIT Law and its implementation rules, which became effective on January 1, 2008. CIT Law imposes a unified income tax rate of 25% for all resident enterprises in China, including both domestic and foreign invested enterprises. Huaya qualifies as a Small and Low Profit Enterprise, and is subject to a preferential EIT of 10%. USA For the US jurisdiction, the Company is subject to federal and state income taxes on its business operations. The federal tax rate is 21% and state tax rate is 8.84%. The Company also evaluated the impact from the recent tax reforms in the United States, including the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and Health and Economic Recovery Omnibus Emergency Solutions Act (“HERO Act”), which both were passed in 2020, no material impact on the Company is expected based on the analysis. The Company will continue to monitor the potential impact going forward. The following table reconciles the statutory rate to the Company’s effective tax rate associated with the Company’s continuing operations: For the years ended July 31, 2021 2020 2019 % % % China income tax rate 25.0 25.0 25.0 Rate differential (24.7 ) (10.0 ) 15.8 Permanent difference on non-deductible expenses 0.0 0.0 0.1 Utilization of the Net Operating Loss (“NOL”) from prior years 1.3 0.0 (1.7 ) Change in valuation allowance (1.6 ) (15.0 ) 0.00 Effective tax rate 0.0 0.0 39.2 The income tax expenses associated with the Company’s continuing operations consist of the following: For the years ended July 31, 2021 2020 2019 Current income tax provision BVI $ - $ - $ - Hong Kong - - - China - - 276,823 Subtotal - - 276,823 Deferred income tax provision BVI - - - Hong Kong - - - China - - - Total income tax provision $ - $ - $ 276,823 Deferred tax assets The Company’s deferred tax assets associated with its continuing operations are comprised of the following: As of July 31, 2021 2020 Deferred tax assets: Allowance for doubtful account $ 105,059 $ 212,010 Net operating loss carry forwards 664,208 746,024 Deferred tax assets before valuation allowance 769,267 958,034 Less: valuation allowance (769,267 ) (958,034 ) Net deferred tax assets $ - $ - The Company follows ASC 740, “Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company’s deferred tax assets primarily derived from the net operating loss (“NOL”) and allowance for doubtful accounts. For the year ended July 31, 2021 and 2020, the Company suffered net operating losses due to reduced number of customers for ATIF’s consulting service. The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion or all of the deferred tax assets will not be realized. The Company considers many factors when assessing the likelihood of future realization of the deferred tax assets, including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes, and other relevant factors. As of July 31, 2021 and 2020, management believes that the realization of the deferred tax assets appears to be uncertain and may not be realizable in the near future. Therefore, a 100% valuation allowance has been provided against the deferred tax assets. (c) Taxes Payable The Company’s taxes payable from its continuing operations consists of the following: As of July 31, 2021 2020 Value added tax payable $ 18,104 $ 73,031 Income tax payable 39,253 584,503 Other taxes payable 660 2,582 Total taxes payable $ 58,017 $ 660,116 Uncertain tax positions The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. The Company is subject to income taxes in the PRC. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. There were no uncertain tax positions as of July 31, 2021 and 2020 and the Company does not believe that its unrecognized tax benefits will change over the next twelve months. |
Equity
Equity | 12 Months Ended |
Jul. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 15 – EQUITY Ordinary Shares The Company was incorporated under the laws of the British Virgin Islands on January 5, 2015. Prior to the Reorganization, the Company was authorized to issue up to 100,000,000 ordinary shares with par value of $0.0004 per share and 50,000,000 shares were issued at par value. On August 21, 2018, the Company amended its Memorandum of Association and passed corporate authorizations to redeem and cancel the 50,000,000 issued shares and simultaneously increased the number of the authorized shares to 100,000,000,000 and increased the par value of each share to $0.001. In connection with the cancellation of the 50,000,000 shares, the Company issued 50,000 shares to the controlling shareholders at $0.001 per share. On November 2, 2018, the Company issued additional 49,950,000 ordinary shares, at par value of $0.001 per share, to its beneficial owners, in private transactions, for a total consideration of $49,950. On February 27, 2019, the Company’s pre-IPO shareholders surrendered an aggregated 15,000,000 ordinary shares, which were subsequently cancelled, for no consideration, and resulted in a reduction in outstanding issued shares from 50,000,000 ordinary shares to 35,000,000 ordinary shares with a par value of $0.001 per share (the “Surrender”). On August 23, 2021, we completed a five (5) for one (1) reverse stock split (the “Reverse Split”) of our issued and outstanding ordinary shares, par value $0.001 per share. From a BVI legal perspective, the Reverse Split applied to the issued shares of the Company on the date of the Reverse Split and does not have any retroactive effect on the Company's shares prior that date. However, for accounting purposes only (with no BVI legal effect), references to our ordinary shares in this annual report are stated as having been retroactively adjusted and restated to give effect to the Reverse Split, as if the Reverse Split had occurred by the relevant earlier date. Initial Public Offering On April 29, 2019, the Company completed its IPO of 2,074,672 ordinary shares (414,935 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at a public offering price of $5.00 per share ($25.00 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). The gross proceeds were approximately $10.4 million before deducting the underwriter’s commissions and other offering expenses, resulting in net proceeds of approximately $8.8 million to the Company. In connection with the offering, the Company’s ordinary shares began trading on the NASDAQ Capital Market on May 3, 2019, under the symbol “ATIF.” Shares issued for acquisition of LGC As disclosed in Note 4 above, on April 22, 2020, the Company completed an acquisition of approximately 51.2% of the equity interest of LGC. In connection with the acquisition, the Company issued a total of 9,940,002 shares of its ordinary shares to LGC’s shareholders with fair value of approximately $21.07 million based on the closing price of the Company’s stocks at the Closing Date. Shares cancelled in disposition of LGC On January 29, 2021, the Company completed a disposition of 51.2% of the equity interest of LGC. The Company sold all of its shares of LGC to Jiang Bo, Jiang Tao and Wang Di (collectively, the “Buyers”) in exchange for (i) 5,555,548 ordinary shares of the Company owned by the Buyers and (ii) payment by the Buyers in the amount of $2,300,000 (Note 3). The Company bought back and subsequently cancelled those 5,555,548 ordinary shares. Shares issued in one registered direct offering On November 3, 2020, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional accredited investors (the “Purchasers”), pursuant to which the Company agreed to sell (i) in a registered direct offering, an aggregate of 4,347,826 of the Company’s ordinary shares (869,565 of its ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), $0.001 par value, at a purchase price per share of $0.92 ($4.60 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), for aggregate gross proceeds to the Company of approximately $4.0 million, before deducting placement agent fees and offering expenses payable by the Company, and (ii) in a concurrent private placement, warrants to purchase an aggregate of 4,347,826 Ordinary Shares (869,565 Ordinary Shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). FT Global acted exclusive placement agent for the registered direct offering and the private placement. As compensation, the Company paid FT Global a cash fee of equal to 7.5% of the gross proceeds of the registered direct offering, up to $30,000 in reimbursable expenses, and warrants to purchase 391,304 of its ordinary shares (78,260 of its ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at an exercise price of $1.10 per share ($5.5 per share retrospectively restated for effect of reverse stock split on August 30, 2021). The exercise price of each Warrant is $2.74 per share (as adjusted in connection with the reverse stock split on August 30, 2021 and pursuant to the terms and conditions of the warrants), and each Warrant is exercisable immediately and will expire five years from the date of issuance. After one-year, the exercise price may reset to the closing bid price if it is lower than the exercise price then in effect. In addition, the warrant exercise price may be subject to adjustment in the event that the Company issues certain securities at prices below the then exercise price. Further, the exercise price and the number of Warrant Shares issuable upon exercise of the Warrants are subject to adjustment upon the occurrence of specified events, including stock dividends, stock splits, combinations and reclassifications of the Ordinary Shares, as described in the Warrants. On August 23, 2021, we completed a five (5) for one (1) reverse stock split (the “Reverse Split”) of our issued and outstanding ordinary shares, par value $0.001 per share. From a BVI legal perspective, the Reverse Split applied to the issued shares of the Company on the date of the Reverse Split and does not have any retroactive effect on the Company's shares prior that date. However, for accounting purposes only (with no BVI legal effect), references to our ordinary shares in this annual report are stated as having been retroactively adjusted and restated to give effect to the Reverse Split, as if the Reverse Split had occurred by the relevant earlier date. As of July 31, 2021 and 2020, the Company had a total of 9,161,390 and 9,402,935 ordinary shares issued and outstanding, respectively. Statutory reserve and restricted net assets Huaya, the Company’s subsidiary incorporated the PRC, 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 discretionary surplus reserve are made at the discretion of the Board of Directors. The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production or increase in registered capital, but are not distributable as cash dividends. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S GAAP may differ from those in the statutory financial statements of the WFOEs and VIEs. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. In light of the foregoing restrictions, Huaya is restricted in its ability to transfer their net assets to the Company. Foreign exchange and other regulations in the PRC may further restrict its subsidiary in the PRC from transferring funds to the Company in the form of dividends, loans and advances. As of July 31, 2021 and 2020, the restricted amounts as determined pursuant to PRC statutory laws totaled $355,912 and $355,912, respectively, and total restricted net assets from the Company’s continuing operations amounted to $962,374 and $962,374, respectively. |
Contigencies
Contigencies | 12 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTIGENCIES | NOTE 16 – CONTIGENCIES From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. (a) Arbitration with Huale Group Co., Limited (“Huale”) On November 4, 2019, the Company received an arbitration notice from Shenzhen Court of International Arbitration (the “Court”), pursuant to which, the Company’s former customer Huale Group Co., Limited (“Huale”) filed the arbitration with the Court against the Company and requested a refund of $300,000 consulting service fee that Huale paid to the Company in 2017. Huale suspended its original plan after the Company already provided certain consulting services outlined in their consulting agreement. Both parties were in dispute over whether or not the initial payment of $300,000 should be refunded. On September 25, 2020, the Court issued a final judgment ruling in favor of Huale and required the Company to return a deposit of $250,000 to Huale and pay arbitration fee and counterclaim fee of $11,724 (RMB 81,844). Based on the Court ruling, the Company accrued legal liabilities of $261,724 for the year ended July 31, 2020, which was still outstanding by the date of this report. (b) Pending Legal Proceeding with Boustead Securities, LLC (“Boustead”) On May 14, 2020, Boustead filed a lawsuit against the Company and LGC for breaching the underwriting agreement Boustead had with each of the Company and LGC, in which Boustead was separately engaged as the exclusive financial advisor to provide financial advisory services to the Company and LGC. In April 2020, the Company acquired 51.2% equity interest in LGC after LGC terminated its efforts to launch an IPO on its own. Boustead alleged that the acquisition transaction between the Company and LGC was entered into during the lockup period of the exclusive agreement between Boustead and LGC, and therefore deprived Boustead of compensation that Boustead would otherwise have been entitled to receive under its exclusive agreement with LGC. Therefore, Boustead is attempting to recover from the Company an amount equal to a percentage of the value of the transaction it conducted with LGC. Boustead’s Complaint alleges four causes of action against the Company, including breach of contract; breach of the implied covenant of good faith and fair dealing; tortious interference with business relationships and quantum meruit. On October 6, 2020, ATIF filed a motion to dismiss Boustead’s Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) and 12(b)(5). On October 9, 2020, the United States District Court for the Southern District of New York directed Boustead to respond to the motion or amend its Complaint by November 10, 2020. Boustead opted to amend its complaint and filed the amended complaint on November 10, 2020. Boustead’s amended complaint asserts the same four causes of action against ATIF and LGC as its original complaint. The Company filed another motion to dismiss Boustead’s amended complaint on December 8, 2020. On August 25, 2021, the United States District Court for the Southern District of New York granted ATIF’s motion to dismiss Boustead’s first amended complaint. In its order and opinion, the United States District Court for the Southern District of New York allowed Boustead to move for leave to amend its causes of action against ATIF as to breach of contract and tortious interference with business relationships, but not breach of the implied covenant of good faith and fair dealing and quantum meruit. On November 4, 2021, Boustead filed a motion seeking leave to file a second amended complaint to amend its cause of action for Breach of Contract. ATIF is currently evaluating how it will respond to Boustead’s motion for leave. As such, the Boustead litigation is currently in the pleadings stage. ATIF’s management believes it is premature to assess and predict the outcome of this pending litigation. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS (a) Reverse stock split On August 12, 2021, the Board of Directors of the Company approved a reverse stock split (the “Reverse Split”) of the Company’s issued and outstanding ordinary shares, par value $0.001 per share, at a ratio of 5-for-1 so that every five (5) shares of US$0.001 par value each in issue on the date of the Reverse Split was combined into one (1) share of US$0.005 par value. Shareholders otherwise entitled to receive a fractional share as a result of the reverse stock split will receive a whole share in lieu of such factional share, as relevant. In connection with the Reverse Split, a vote of the shareholders of the Company was not required and as such, no shareholder vote or meeting of shareholders was held. The Reverse Split was effected by filing amendments to the Company’s Memorandum and Articles of Association with the Registrar of Corporate Affairs of the British Virgin Islands. The Company filed the amendments with the Registrar of Corporate Affairs of the British Virgin Islands on August 23, 2021 and the ordinary shares began trading on a split-adjusted basis on the Nasdaq Capital Market when the market opens on August 30, 2021. (b) Pending NASDAQ Compliance Issue On July 26, 2021, the received a written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) indicating that the Company is not in compliance with the minimum bid price requirement of US$1.00 per share under the Nasdaq Listing Rules (the “Listing Rules”). Based on the closing bid price of the Company’s listed securities for the last 30 consecutive business days from June 11, 2021 to July 23, 2021, the Company did not meet the minimum bid price requirement set forth in Listing Rule 5550(a)(2). On September 14, Nasdaq provided confirmation to the Company that for at least 10 consecutive business days, from August 30 to September 13, 2021, the closing bid price of the Company’s ordinary shares has been at $1.00 per share or greater. Accordingly, the Company has regained compliance with Listing Rule 5550(a)(2) and this matter is now closed. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jul. 31, 2021 | |
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”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The consolidated financial statements of the Company include the accounts of the Company and its subsidiaries. The consolidated financial statements of the Company also include the accounts of ATIF LP, for which the Company is an investment manager and has primary beneficiary over the ATIF LP. All intercompany balances and transactions have been eliminated upon consolidation. As of July 31, 2021, the Company’s consolidated financial statements reflect the operating results of the following entities: Name of Entity Date of Place of % of Principal Activities Parent company: ATIF Holdings Limited (“ATIF”) January 5, 2015 British Virgin Islands Parent Investment holding Wholly owned subsidiaries of ATIF ATIF Limited (“ATIF HK”) January 6, 2015 Hong Kong 100% Investment holding ATIF Inc. (“ATIF USA”) October 26, 2020 USA 100% Consultancy and information technology support Huaya Consultant (Shenzhen) Co., Ltd. (“Huaya”) May 20, 2015 PRC 100% WFOE, Consultancy and information technology support ATIF-1 GP, LLC (“ATIF GP”) January 21, 2021 USA 100% Fund management ATIF-1 LP, LLC (“ATIF LP”) February 16, 2021 USA 31.25% Investment The VIE contractual arrangements Foreign investments in domestic Chinese companies that engage in private equity investment business and media business are both restricted in China under current PRC laws and regulations. For the year ended July 31, 2020 and 2019 and before the termination of the Qianhai VIE agreements on February 3, 2021 (see Note 5) and disposition of LGC on January 31, 2021 (see Note 4), the Company was still operating under the VIE structure and the Company’s main operating entities Qianhai and LMG are controlled through contractual arrangements in lieu of direct equity ownership by the Company or any of its subsidiaries. Risks associated with the VIE structure The Company believes that the contractual arrangements with its VIEs and respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIEs; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds from the IPO to finance the Company’s business and operations in China. The Company’s ability to conduct its consulting services business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its respective shareholders and it may lose the ability to receive economic benefits from its VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary, or its VIEs. The Company has not provided any financial support to the VIEs for the years ended July 31, 2021, 2020, and 2019. The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of July 31, 2021 2020 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Current assets $ - $ - $ - $ 2,469,829 $ 1,554,585 $ 4,024,414 Non-current assets - - - 184,740 5,493,284 5,678,024 Total assets - - - 2,654,569 7,047,869 9,702,438 Current liabilities - - - 1,441,148 5,736,358 7,177,506 Non-current liabilities - - - 65,574 3,179,625 3,245,199 Total liabilities - - - 1,506,722 8,915,983 10,422,705 Shareholders’ equity (deficit) $ - $ - $ - $ 1,147,847 $ (1,868,114 ) $ (720,267 ) The summarized operating results of the VIEs are as follows: For the For the For the years ended July 31, 2021 2021 2020 2019 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Qianhai VIE Operating revenue $ 380,954 $ 2,117,551 $ 2,498,505 $ 645,127 $ 40,872 $ 685,999 $ 2,777,618 Income (loss) from operations $ (60,242 ) $ (1,154,067 ) $ (1,214,309 ) $ (1,471,095 ) $ (4,781,593 ) $ (6,252,688 ) $ 884,789 Income (loss) before income taxes $ (63,765 ) $ (1,166,287 ) $ (1,230,052 ) $ (1,562,037 ) $ (4,857,484 ) $ (6,419,521 ) $ 930,361 Net income (loss) $ (63,765 ) $ (1,142,160 ) $ (1,205,925 ) $ (1,562,037 ) $ (4,933,748 ) $ (6,495,785 ) $ 697,631 The summarized cash flow information of the VIEs are as follows: For the For the For the years ended July 31, 2021 2021 2020 2019 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Qianhai VIE Net cash provided by (used in) operating activities $ (286,657 ) $ (119,612 ) $ (406,269 ) $ 175,530 $ (662,795 ) $ (487,265 ) $ (3,380,071 ) Net cash provided by (used in) investing activities $ - $ 118,541 $ 118,541 $ 36,412 $ 1,415,579 $ 1,451,991 $ 2,700,687 Net cash provided by (used in) financing activities $ - $ - $ - $ - $ (734,347 ) $ (734,347 ) $ (14,626 ) |
Business Combination | Business Combination In April 2020, the Company acquired 51.2% ownership interest in LGC (see Note 6). Business combination is accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. |
Noncontrolling Interests | Noncontrolling Interests As of July 31, 2020, the non-controlling interests represent minority shareholders’ 48.8% ownership interest in LGC not acquired by the Company in connection with the Company’s acquisition of LGC. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the stockholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statements of operations and comprehensive income (loss) as an allocation of the total loss for the year between non-controlling interest holders and the stockholders of the Company. In January 2021, the Company disposed of LGC and did not have noncontrolling interest due to noncontrolling shareholders of LGC. As of July 31, 2021, the non-controlling interest represent minority shareholders’ 68.75% ownership interest in ATIF LP, over which the Company had 31.25% ownership interest and acted as an investment manager through ATIF GP, its wholly owned subsidiary. The Company had non-controlling interest of $120,809 as of July 31, 2021. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, revenue recognition, provision necessary for contingent liabilities and realization of deferred tax assets. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes cash on hand and demand deposits in accounts maintained with commercial banks. 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. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in the PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Accounts Receivable, net | Accounts Receivable, net nil |
Investment in Trading Securities | Investment in Trading Securities Equity securities not accounted for using the equity method are carried at fair value with changes in fair value recorded in the consolidated statements of operations and comprehensive income (loss), according to ASC 321 “Investments — Equity Securities”. During the years ended July 31, 2021 and 2020, the Company purchased certain publicly-listed equity securities through various open market transactions and accounted for such investments as “investment in trading securities” and subsequently measure the investments at fair value. The Company made a loss of $258,738 and a gain of $201,051 from investment in trading securities for the years ended July 31, 2021 and 2020. There was no such transaction for the year ended July 31, 2019. |
Property and Equipment, net | Property and Equipment, net Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Useful life Furniture, fixtures and equipment 3-5 years Transportation vehicles 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations and comprehensive income (loss) as other income or expenses. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets, including plant and equipment and intangible with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the years ended July 31, 2021, 2020 and 2019, the Company recorded impairment against long-lived assets of $ nil nil |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets 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 to the valuation methodology are unobservable. Fair value of investment in trading securities are based on quoted prices in active markets. The carrying amounts of the Company’s other financial instruments including cash and cash equivalents, deposits, investment in life insurance contract, due from buyers of LGC and other current assets, accounts payable, and accrued expenses and other current liabilities approximate their fair values because of the short-term nature of these assets and liabilities. For lease liabilities, fair value approximates their carrying value at the year end as the interest rates used to discount the host contracts approximate market rates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606 Revenue from Contracts with Customers (“ASC 606”). To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company currently generates its revenue from the following main sources: (1) Revenue from customer’s initial registration fee In order to engage with the Company for various consulting services, a new customer is required to pay an initial non-refundable registration fee to the Company and the Company will then post the customer’s information and profiles on its website, at which point, the Company’s performance obligations are satisfied and such registration fee is recognized as revenue. The Company does not charge additional customer profile maintenance fee after the initial posting is completed as limited effort is required for the Company to maintain such information on an on-going basis. No revenues were generated from customer’s initial registration for the years ended July 31, 2021, and 2020 and 2019. (2) Revenue from consulting services The Company provides various consulting services to its members, especially to those who have the intention to be publicly listed in the stock exchanges in the United States and other countries. The Company categorizes its consulting services into three Phases: Phase I consulting services primarily include due diligence review, market research and feasibility study, business plan drafting, accounting record review, and business analysis and recommendations. Management estimates that Phase I normally takes about three months to complete based on its past experience. Phase II consulting services primarily include reorganization, pre-listing education and tutoring, talent search, legal and audit firm recommendation and coordination, VIE contracts and other public-listing related documents review, merger and acquisition planning, investor referral and pre-listing equity financing source identification and recommendations, and independent directors and audit committee candidate’s recommendation. Management estimates that Phase II normally takes about eight months to complete based on its past experience. Phase III consulting services primarily include shell company identification and recommendation for customers expecting to become publicly listed through reverse merger transaction; assistance in preparation of customers’ public filings for IPO or reverse merger transactions; and assistance in answering comments and questions received from regulatory agencies. Management believes it is very difficult to estimate the timing of this phase of service as the completion of Phase III services is not within the Company’s control. Each phase of consulting services is stand-alone and fees associated with each phase are clearly identified in service agreements. Revenue from providing Phase I and Phase II consulting services to customers is recognized ratably over the estimated completion period of each phase as the Company’s performance obligations related to these services are carried out over the whole duration of each Phase. Revenue from providing Phase III consulting services to customers is recognized upon completion of the reverse merger transaction or IPO transaction when the Company’s promised services are rendered and the Company’s performance obligations are satisfied. Revenue that has been billed and not yet recognized is reflected as deferred revenue on the balance sheet. Depending on the complexity of the underlying service arrangement and related terms and conditions, significant judgments, assumptions, and estimates may be required to determine when substantial delivery of contract elements has occurred, whether any significant ongoing obligations exist subsequent to contract execution, whether amounts due are collectible and the appropriate period or periods in which, or during which, the completion of the earnings process occurs. Depending on the magnitude of specific revenue arrangements, adjustment may be made to the judgments, assumptions, and estimates regarding contracts executed in any specific period. Revenue from LGC Before the disposal of 51.2% equity interest in LGC, the Company generated revenue from Multi-Channel advertising, Event planning and execution, Movie Theater Operating and others. The revenues from these revenue streams were classified as a component of “net loss from discontinued operations” upon the close of the disposition. See Note 4. (1) Multi-Channel advertising The Company’s multi-channel advertising services include pre-movie advertisements display, elevator and supermarket advertising, and brand promotion. Most of the Company’s client contracts are individually negotiated and, accordingly, the service period and prices vary significantly. Service periods typically range from one day to one year. The Company provides advertising services over the contract period. Revenues from advertising services are recognized on straight-line basis over the contract period, which approximates the pattern of when the underlying services are performed. Prepayments for advertising services are deferred and recognized as revenue when the advertising services are rendered and the Company’s performance obligations are satisfied. The Company also provides advertising services through its regional distributors. Pursuant to advertising services distribution agreements, the Company grants the regional distributors the exclusive rights to provide local pre-movie advertising. The advertising services distribution agreements with these regional distributors typically have terms ranging from 11 to 24 months without automatic renewal provisions. Under the advertising services distribution agreements, the Company has the right to set the minimum local pre-movie advertisement prices in the movie theaters, regulate the content and quality of local pre-movie advertisements according to related laws and movie theater rules, and examine the source of local pre-movie advertisements and refuse to display advertisements from any competitors. The receipt of distribution fee is initially recorded as deferred revenue and is recognized as revenue ratably as services are rendered and the Company’s performance obligations are satisfied. (2) Event planning and execution The Company’s event planning and execution business includes planning and arrangement of events, and production of related advertising materials. From the preparation of the events to executing it typically takes no more than one week. Revenue is realized when the service is performed in accordance with the client arrangement and upon the completion of the earnings process. (3) Movie Theater Operating The Company’s movie theater operating revenues are generated primarily from box office admissions and theater food and beverage sales. Revenues of this business line are recognized when admissions and food and beverage sales are rendered at the theaters and are reported net of sales tax. The Company defers 100% of the revenue associated with the sales of gift cards and packaged tickets until such time as the items are redeemed. For the years ended July 31, 2021, 2020 and 2019, the disaggregation of revenues from continuing operations and discontinued operations was as below: For the years ended July 31, 2021 2020 2019 Consulting service revenue from continuing operations* $ 936,935 $ 645,127 $ 3,078,758 Revenue from discontinued operations (multi-channel advertising, event planning and execution and movie theater operation business under LGC) $ 2,117,551 $ 40,872 $ - * Qianhai transferred all of its China-based consulting service business and employees to Huaya before termination of the VIE agreement. The termination of the VIE agreement did not cause material impairment of our long-lived assets (primarily including fixed assets such as office furniture and equipment and automobile) because all of the fixed assets have been transferred to our PRC subsidiary Huaya upon termination of the VIE agreements and there was no assets held for sale or disposal. The management believed the termination of Qianhai VIE agreements does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The termination is not accounted as discontinued operations in accordance with ASC 205-20 (see Note 5). |
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. An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The Company did not have unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of July 31, 2021. As of July 31, 2021, all of the Company’s income tax returns for the tax years ended December 31, 2016 through December 31, 2020 remain open for statutory examination by relevant tax authorities. |
Value Added Tax (“VAT”) | Value Added Tax (“VAT”) Sales revenue derived from advertising service revenues is subject to VAT. The applicable VAT rate for the Company is 3% for Huaya. 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. |
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 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. For the years ended July 31, 2021, 2020 and 2019, there were no dilutive shares. |
Foreign Currency Translation | Foreign Currency Translation The functional currency for ATIF is the U.S Dollar (“US$”). ATIF HK uses Hong Kong dollar as its functional currency. However, ATIF currently only serve as the holding company and did not have active material operations as of the date of this report. The Company operates its business through ATIF HK and Huaya as of July 31, 2021. The functional currency of the Huaya is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are 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 results of operations. The 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 US$ at the rates used in translation. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: July 31, 2021 July 31, 2020 July 31, 2019 Foreign currency Period-end Average rate Period-end Average rate Period-end Average rate RMB: 1USD 0.1547 0.1521 0.1432 0.1420 0.1453 0.1463 HKD: 1USD 0.1282 0.1282 0.1290 0.1284 0.1278 0.1276 |
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 US$ is reported in other comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss). |
Operating Leases | Operating Leases The Company adopted ASU No. 2016-02—Leases (Topic 842) since August 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The standard did not materially impact the consolidated net earnings and cash flows. Upon adoption of ASC 842, the lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. The right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. As the rates implicit in the lease cannot be readily determined, the incremental borrowing rates at the lease commencement date are used in determining the imputed interest and present value of lease payments. The incremental borrowing rates were determined using a portfolio approach based on the rates of interest that the Company would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company recognizes the single lease cost on a straight-line basis over the remaining lease term for operating leases. The Company has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less; expenses for these leases are recognized on a straight-line basis over the lease term. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Discontinued operation | Discontinued operation In accordance with ASC 205-20, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. The Company had four operating business lines, including Business Advisory and Consulting Services, Multi-channel Advertising Services, Event Planning and Execution Services and Movie Theater Operation Services. However, due to changes in our organizational structure associated with the LGC, which engaged in Multi-channel Advertising Services, Event Planning and Execution Services and Movie Theater Operation Services, as a discontinued operation (Note 4 – Discontinued operation), management has determined that the Company now operates in one operating segment with one reporting segment as of July 31, 2021, which is the consulting service business. |
Reclassification | Reclassification Certain items in the financial statements of comparative period have been reclassified to conform to the financial statements for the current period, primarily for the effects of discontinued operations of LGC (see Note 4 for detail) and reverse split of the Company’s ordinary shares (see Note 15 for detail). |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
Risks and Uncertainty | Risks and Uncertainty The Company’s major operations are conducted in the PRC. Accordingly, the political, economic, and legal environments in the PRC, as well as the general state of the PRC’s economy may influence the Company’s business, financial condition, and results of operations. The Company’s major 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 others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. In light of the PRC providing new guidance to and restrictions on China-based companies raising capital offshore, including PRC government-led cybersecurity reviews, the Chairman of the SEC has requested his staff to review disclosures from offshore issuers associated with China-based operating companies in connection with the filing of registration statements in the United States. In particular, the SEC Chairman was concerned about an investor’s understanding of a VIE contract structure. We previously conducted our consulting service business through Qianhai utilizing a VIE contract structure which relationship was terminated in February 2021. In connection with our internal reorganization in January and February 2021, we disclosed that Huaya, a wholly owned subsidiary of ATIF, will serve as our business center in PRC for clients located in the PRC and ATIF Inc., a newly established subsidiary in the United States, will serve our clients located in the United States. However, if we conduct business in the PRC in the future with a PRC entity using a VIE contract structure, that business structure may subject us to further review by the SEC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. (a) Credit risk Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. As of July 31, 2021, $69,358 of the Company’s cash were on deposit at financial institutions in Mainland China, and each bank accounts is insured by the government authority with the maximum limit of RMB 500,000 (equivalent to approximately $77,400). As of July 31, 2021, the Company held cash and cash equivalents of $441,772 deposited in the banks located in Hong Kong and British Virgin Islands, which are not insured by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance, and held cash and cash equivalents of $132,760 deposited in the banks located in the U.S. which are insured by FDIC up to $250,000, and held cash and cash equivalents of $4,952,850 deposited in the investment bank accounts located in the U.S. which are not insured by FDIC. (b) Concentration risk 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. The Company’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenues and receivables with specific customers. For the year ended July 31, 2021, three customers accounted for 41%, 41% and 11% of the Company’s consolidated revenue, respectively. For the year ended July 31, 2020, one customer accounted for 97% of the Company’s consolidated revenue, respectively. For the year ended July 31, 2019, three customers accounted for approximately 44%, 29%, and 19% of the Company’s total revenue. For the years ended July 31, 2021 and 2020, substantially all of the Company’s revenues was generated from providing going public related consulting services to customers. The risk is mitigated by the Company’s plan to transition its consulting services from the PRC based customers to more international customers. (c) Other risks and uncertainties The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations. The Company’s operations have been affected by the outbreak and spread of the coronavirus disease 2019 (COVID-19), which in March 2020, was declared a pandemic by the World Health Organization. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Company’s businesses have been negatively impacted by the COVID-19 coronavirus outbreak to a certain extent. Due to the outbreak of COVID-19, in early February 2020, the Chinese government required the nationwide closure of many business activities in the PRC to prevent the spread of COVID-19 and protect public health. As a result, the Company temporarily suspended its consulting services for the period from February to March 2020. Furthermore, some of the Company’s existing customers have experienced financial distress and disruption of business, which resulted in delay or default on their payments. As of the date of this filing, the spread of COVID-19 in China have slowed down and most provinces and cities have resumed business activities under the guidance and support of the local government. Nevertheless, the continued uncertainties associated with COVID 19 may cause the Company’s revenue and cash flows to underperform in the next 12 months. A resurgence could negatively affect the execution of the going public consulting service agreements and the collection of the payments from customers. The extent of the future impact of COVID-19 is still highly uncertain and cannot be predicted as of the financial statement reporting date. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Targeted Transition Relief. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” (“ASU 2019-10”). ASU 2019-10 (i) provides a framework to stagger effective dates for future major accounting standards and (ii) amends the effective dates for certain major new accounting standards to give implementation relief to certain types of entities. Specifically, ASU 2019-10 changes some effective dates for certain new standards on the following topics in the FASB Accounting Standards Codification (ASC): (a) Derivatives and Hedging (ASC 815) – now effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021; (b) Leases (ASC 842) – now effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021; (c) Financial Instruments — Credit Losses (ASC 326) – now effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years; and (d) Intangibles — Goodwill and Other (ASC 350) – now effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company does not expect the cumulative effect resulting from the adoption of this guidance will have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, which is 2022 fiscal year for us, with early adoption permitted. The Company does not expect adoption of the new guidance to have a significant impact on its consolidated financial statements. Recently issued ASUs by the FASB, except for the ones mentioned above, have no material impact on the Company’s consolidated results of operations or financial position. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of subsidiaries and variable interest entities | Name of Entity Date of Place of % of Principal Activities Parent company: ATIF Holdings Limited (“ATIF”) January 5, 2015 British Virgin Islands Parent Investment holding Wholly owned subsidiaries of ATIF ATIF Limited (“ATIF HK”) January 6, 2015 Hong Kong 100% Investment holding ATIF Inc. (“ATIF USA”) October 26, 2020 USA 100% Consultancy and information technology support Huaya Consultant (Shenzhen) Co., Ltd. (“Huaya”) May 20, 2015 PRC 100% WFOE, Consultancy and information technology support ATIF-1 GP, LLC (“ATIF GP”) January 21, 2021 USA 100% Fund management ATIF-1 LP, LLC (“ATIF LP”) February 16, 2021 USA 31.25% Investment |
Schedule of financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances | As of July 31, 2021 2020 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Current assets $ - $ - $ - $ 2,469,829 $ 1,554,585 $ 4,024,414 Non-current assets - - - 184,740 5,493,284 5,678,024 Total assets - - - 2,654,569 7,047,869 9,702,438 Current liabilities - - - 1,441,148 5,736,358 7,177,506 Non-current liabilities - - - 65,574 3,179,625 3,245,199 Total liabilities - - - 1,506,722 8,915,983 10,422,705 Shareholders’ equity (deficit) $ - $ - $ - $ 1,147,847 $ (1,868,114 ) $ (720,267 ) |
Schedule of summarized operating results of the VIEs | For the For the For the years ended July 31, 2021 2021 2020 2019 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Qianhai VIE Operating revenue $ 380,954 $ 2,117,551 $ 2,498,505 $ 645,127 $ 40,872 $ 685,999 $ 2,777,618 Income (loss) from operations $ (60,242 ) $ (1,154,067 ) $ (1,214,309 ) $ (1,471,095 ) $ (4,781,593 ) $ (6,252,688 ) $ 884,789 Income (loss) before income taxes $ (63,765 ) $ (1,166,287 ) $ (1,230,052 ) $ (1,562,037 ) $ (4,857,484 ) $ (6,419,521 ) $ 930,361 Net income (loss) $ (63,765 ) $ (1,142,160 ) $ (1,205,925 ) $ (1,562,037 ) $ (4,933,748 ) $ (6,495,785 ) $ 697,631 |
Schedule of summarized cash flow information of the VIEs | For the For the For the years ended July 31, 2021 2021 2020 2019 Qianhai VIE LMG VIE Total Qianhai VIE LMG VIE Total Qianhai VIE Net cash provided by (used in) operating activities $ (286,657 ) $ (119,612 ) $ (406,269 ) $ 175,530 $ (662,795 ) $ (487,265 ) $ (3,380,071 ) Net cash provided by (used in) investing activities $ - $ 118,541 $ 118,541 $ 36,412 $ 1,415,579 $ 1,451,991 $ 2,700,687 Net cash provided by (used in) financing activities $ - $ - $ - $ - $ (734,347 ) $ (734,347 ) $ (14,626 ) |
Schedule of estimated useful lives of assets | Useful life Furniture, fixtures and equipment 3-5 years Transportation vehicles 5 years |
Schedule of the disaggregation of revenues from continuing operations and discontinued operations | For the years ended July 31, 2021 2020 2019 Consulting service revenue from continuing operations* $ 936,935 $ 645,127 $ 3,078,758 Revenue from discontinued operations (multi-channel advertising, event planning and execution and movie theater operation business under LGC) $ 2,117,551 $ 40,872 $ - |
Schedule of currency exchange rates | July 31, 2021 July 31, 2020 July 31, 2019 Foreign currency Period-end Average rate Period-end Average rate Period-end Average rate RMB: 1USD 0.1547 0.1521 0.1432 0.1420 0.1453 0.1463 HKD: 1USD 0.1282 0.1282 0.1290 0.1284 0.1278 0.1276 |
Discontinued Operation of LGC (
Discontinued Operation of LGC (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of consolidated statements of operations and comprehensive loss | As of Share consideration of 5,555,548 ordinary shares (1,111,110 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), at $1.08 per share ($5.40 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) on January 29, 2021 $ 5,999,992 Cash consideration 2,300,000 Consideration in exchange for the disposal 8,299,992 Noncontrolling interest of LGC 16,516,711 Less: Net liabilities (comprised of assets of $7,804,412 and liabilities of $11,001,011) 3,196,599 28,013,302 Impairment of goodwill relating to discontinued operations (25,902,394 ) Impairment of intangible assets relating to discontinue operations (6,986,615 ) Amortization of intangible assets arising from acquisition of LGC (608,031 ) Net loss from disposal of discontinued operations $ (5,483,738 ) |
Schedule of reconciliation of the carrying amounts | January 29, July 31, Carrying amounts of major classes of assets held for sale: Cash $ 6,297 $ 18,601 Accounts receivable 1,241,178 939,392 Other current assets 992,333 596,591 Goodwill 25,902,394 Intangible assets 7,594,646 Property and equipment, net 2,125,388 2,017,151 Right of use assets 3,422,985 3,147,825 Other noncurrent assets 16,231 328,308 Total assets of disposal group $ 7,804,412 $ 40,544,908 Carrying amounts of major classes of liabilities held for sale: Short-term borrowings $ 154,842 $ 143,248 Taxes payable 3,618,661 3,344,048 Other current liabilities 3,502,209 1,932,614 Lease liabilities 3,725,299 3,496,070 Total liabilities of disposal group $ 11,001,011 $ 8,915,980 |
Schedule of major classes of operations | For the years ended July 31, 2021 2020 2019 Discontinued Operations Revenues $ 2,117,551 $ 40,872 $ - Cost of revenues (1,557,277 ) (227,410 ) - Total operating expenses (1,714,341 ) (5,000,409 ) - Loss from operations (1,154,067 ) (5,186,947 ) - Impairment of goodwill and property and equipment - (5,673,234 ) Total other income (expense), net 12,220 (75,891 ) - Income tax expenses (313 ) (76,264 ) - Net loss from discontinued operations, net of tax (1,142,160 ) (11,012,336 ) - Net loss from disposal of discontinued operations (5,483,738 ) - - Net Loss from Discontinued Operations $ (6,625,898 ) $ (11,012,336 ) $ - |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation to assets acquired and liabilities assumed in a business combination | As of Cash and cash equivalents $ 1,060,435 Accounts receivable 2,613,970 Prepayment and other current assets 2,219,950 Property and equipment 2,728,000 Intangible assets (trade name and customer relationship) 8,000,000 Deferred film production cost 323,522 Deferred income tax assets 75,822 Taxes payable (3,255,935 ) Other current liabilities (2,701,495 ) Fair value of non-controlling interest (19,664,326 ) Goodwill 31,523,861 Total purchase consideration $ 22,923,804 |
Schedule of the amounts of revenue and net loss of LGC included in the Company's consolidated statement of operations and the Company's unaudited pro forma results | From Net Revenue $ 40,872 Net loss $ (4,933,748 ) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Summary of prepaid expenses and other current assets | As of July 31, 2021 2020 Prepayment for advertising service fee (a) $ 600,000 $ 600,000 Prepaid service fees 20,000 64,189 Prepaid insurance service fee 58,150 - Advance to vendors 10,000 10,000 Others 300 22,340 Total $ 688,451 $ 696,529 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment stated at cost less accumulated depreciation | As of July 31, 2021 2020 Furniture, fixtures and equipment $ 187,053 $ 141,065 Vehicles 574,606 575,831 Total 761,659 716,896 Less: accumulated depreciation (189,632 ) (110,656 ) Property and equipment, net $ 572,027 $ 606,240 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of net intangible assets | As of July 31, 2021 2020 Financial and news platform $ 56,250 $ 56,611 Software 320,000 339,569 Total 376,250 396,180 Less: accumulated amortization (142,919 ) (65,742 ) Intangible assets $ 233,331 $ 330,456 |
Investments in Trading Securi_2
Investments in Trading Securities (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investments in trading securities | As of July 31, 2021 2020 Trading securities invested by ATIF $ 871,809 $ 918,675 Trading securities invested by ATIF LP 155,700 - $ 1,027,509 $ 918,675 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Schedule of operating lease related assets and liabilities recorded on the balance sheets | As of July 31, 2021 2020 Right-of- use assets, net $ 745,125 $ 620,593 Operating lease liabilities, current 382,298 433,904 Operating lease liabilities, noncurrent 387,307 203,265 Total operating lease liabilities $ 769,605 $ 637,169 |
Schedule of weighted average remaining lease terms and discount rates for all of operating leases for continuing operations | As of July 31, 2021 2020 Remaining lease term and discount rate Weighted average remaining lease term (years) 2.08 1.53 Weighted average discount rate 4.90 % 4.90 % |
Schedule of weighted average remaining lease terms and discount rates for all of operating leases for discontinued operations | 2020 Remaining lease term and discount rate Weighted average remaining lease term (years) 10.21 Weighted average discount rate 4.90 % |
Schedule of maturities of lease liabilities | As of July 31, 2021 2022 $ 409,922 2023 252,969 2024 and thereafter 150,468 Total lease payments 813,360 Less: imputed interest (43,755 ) Present value of lease liabilities $ 769,605 As of 2021 $ 462,840 2022 198,374 2023 and thereafter - Total lease payments 661,214 Less: imputed interest (24,045 ) Present value of lease liabilities $ 637,169 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of statutory rate to effective tax rate | For the years ended July 31, 2021 2020 2019 % % % China income tax rate 25.0 25.0 25.0 Rate differential (24.7 ) (10.0 ) 15.8 Permanent difference on non-deductible expenses 0.0 0.0 0.1 Utilization of the Net Operating Loss (“NOL”) from prior years 1.3 0.0 (1.7 ) Change in valuation allowance (1.6 ) (15.0 ) 0.00 Effective tax rate 0.0 0.0 39.2 |
Schedule of income tax expenses | For the years ended July 31, 2021 2020 2019 Current income tax provision BVI $ - $ - $ - Hong Kong - - - China - - 276,823 Subtotal - - 276,823 Deferred income tax provision BVI - - - Hong Kong - - - China - - - Total income tax provision $ - $ - $ 276,823 |
Schedule of components of company's deferred tax assets | As of July 31, 2021 2020 Deferred tax assets: Allowance for doubtful account $ 105,059 $ 212,010 Net operating loss carry forwards 664,208 746,024 Deferred tax assets before valuation allowance 769,267 958,034 Less: valuation allowance (769,267 ) (958,034 ) Net deferred tax assets $ - $ - |
Schedule of taxes payable | As of July 31, 2021 2020 Value added tax payable $ 18,104 $ 73,031 Income tax payable 39,253 584,503 Other taxes payable 660 2,582 Total taxes payable $ 58,017 $ 660,116 |
Organization and Description _2
Organization and Description of Business (Details) $ / shares in Units, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||
Aug. 30, 2021$ / sharesshares | Jan. 29, 2021USD ($)shares | Apr. 22, 2020USD ($)shares | Apr. 29, 2019USD ($)$ / sharesshares | Jul. 31, 2021USD ($) | Jul. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Feb. 16, 2021USD ($) | Nov. 03, 2020$ / shares | Aug. 21, 2018shares | Nov. 03, 2015USD ($) | Nov. 03, 2015CNY (¥) | Jan. 05, 2015shares | |
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Ordinary shares (in Shares) | shares | 50,000,000 | ||||||||||||
Public offering price, per share (in Dollars per share) | $ / shares | $ 0.001 | ||||||||||||
Gross proceeds | $ 3,535,000 | $ 8,772,754 | |||||||||||
Reverse stock split (in Shares) | shares | 1,988,000 | ||||||||||||
Number of shares issued (in Shares) | shares | 50,000 | ||||||||||||
Ordinary shares, reverse stock split (in Shares) | shares | 1,428,000 | ||||||||||||
Private equity fund | $ 4,800,000 | ||||||||||||
ATIF HK [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Equity interest held, percentage | 100.00% | ||||||||||||
Asia Era Fund [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Equity interest held, percentage | 100.00% | ||||||||||||
LGC [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Total consideration | $ 22,920,000 | ||||||||||||
Cash consideration | $ 1,850,000 | ||||||||||||
Number of shares issued (in Shares) | shares | 5,555,548 | ||||||||||||
Ordinary shares, reverse stock split (in Shares) | shares | 1,111,110 | ||||||||||||
Payment of principal amount | $ 2,300,000 | ||||||||||||
Interest rate | 10.00% | ||||||||||||
Amount of unpaid principal amount | $ 2,300,000 | ||||||||||||
Business Combination [Member] | ATIF HK [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Equity interest held, percentage | 51.20% | ||||||||||||
Business Combination [Member] | LGC [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Equity interest held, percentage | 51.20% | 51.20% | |||||||||||
Total consideration | $ 22,920,000 | ||||||||||||
Shares issued as consideration (in Shares) | shares | 9,940,002 | ||||||||||||
Fair value of stock issued | $ 21,070,000 | ||||||||||||
Equity interest | 51.20% | ||||||||||||
ATIF-1, LP [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Equity interest | 31.25% | ||||||||||||
Qianhai [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Registered Capital | $ 750,000 | ¥ 5 | |||||||||||
Initial Public Offering [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Ordinary shares (in Shares) | shares | 414,935 | 2,074,672 | |||||||||||
Public offering price, per share (in Dollars per share) | $ / shares | $ 25 | $ 5 | |||||||||||
Gross proceeds | $ 10,400,000 | ||||||||||||
Gross proceeds | $ 8,800,000 | ||||||||||||
Initial Public Offering [Member] | Business Combination [Member] | LGC [Member] | |||||||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||||||
Shares issued as consideration (in Shares) | shares | 9,940,002 |
Liquidity and Going Concern (De
Liquidity and Going Concern (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 05, 2020 | Nov. 03, 2020 | Jan. 05, 2015 | Aug. 30, 2021 | Apr. 29, 2021 | Jan. 29, 2021 | Apr. 22, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 |
Going Concern Disclosure [Abstract] | ||||||||||
Revenues | $ 2.4 | $ 6.3 | $ 0.4 | |||||||
Operating cash outflows from continuing operations | (2.5) | $ 5.2 | $ 3 | |||||||
cash and short-term investment | 5.6 | |||||||||
Accounts Receivable, after Allowance for Credit Loss, Current | 1 | |||||||||
Current Liabilities | 1.3 | |||||||||
Cash | $ 5.6 | |||||||||
Reverse stock split Description | FT Global acted exclusive placement agent for the registered direct offering and the private placement. As compensation, the Company paid FT Global a cash fee of equal to 7.5% of the gross proceeds of the registered direct offering, up to $30,000 in reimbursable expenses, and warrants to purchase 391,304 of its ordinary shares (78,260 of its ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at an exercise price of $1.10 per share ($5.5 per share retrospectively restated for effect of reverse stock split on August 30, 2021). | On August 21, 2018, the Company amended its Memorandum of Association and passed corporate authorizations to redeem and cancel the 50,000,000 issued shares and simultaneously increased the number of the authorized shares to 100,000,000,000 and increased the par value of each share to $0.001. In connection with the cancellation of the 50,000,000 shares, the Company issued 50,000 shares to the controlling shareholders at $0.001 per share.On November 2, 2018, the Company issued additional 49,950,000 ordinary shares, at par value of $0.001 per share, to its beneficial owners, in private transactions, for a total consideration of $49,950. On February 27, 2019, the Company’s pre-IPO shareholders surrendered an aggregated 15,000,000 ordinary shares, which were subsequently cancelled, for no consideration, and resulted in a reduction in outstanding issued shares from 50,000,000 ordinary shares to 35,000,000 ordinary shares with a par value of $0.001 per share (the “Surrender”). On August 23, 2021, we completed a five (5) for one (1) reverse stock split (the “Reverse Split”) of our issued and outstanding ordinary shares, par value $0.001 per share. From a BVI legal perspective, the Reverse Split applied to the issued shares of the Company on the date of the Reverse Split and does not have any retroactive effect on the Company's shares prior that date. However, for accounting purposes only (with no BVI legal effect), references to our ordinary shares in this annual report are stated as having been retroactively adjusted and restated to give effect to the Reverse Split, as if the Reverse Split had occurred by the relevant earlier date. Initial Public Offering On April 29, 2019, the Company completed its IPO of 2,074,672 ordinary shares (414,935 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at a public offering price of $5.00 per share ($25.00 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). The gross proceeds were approximately $10.4 million before deducting the underwriter’s commissions and other offering expenses, resulting in net proceeds of approximately $8.8 million to the Company. In connection with the offering, the Company’s ordinary shares began trading on the NASDAQ Capital Market on May 3, 2019, under the symbol “ATIF.” Shares issued for acquisition of LGC As disclosed in Note 4 above, on April 22, 2020, the Company completed an acquisition of approximately 51.2% of the equity interest of LGC. In connection with the acquisition, the Company issued a total of 9,940,002 shares of its ordinary shares to LGC’s shareholders with fair value of approximately $21.07 million based on the closing price of the Company’s stocks at the Closing Date. Shares cancelled in disposition of LGC On January 29, 2021, the Company completed a disposition of 51.2% of the equity interest of LGC. The Company sold all of its shares of LGC to Jiang Bo, Jiang Tao and Wang Di (collectively, the “Buyers”) in exchange for (i) 5,555,548 ordinary shares of the Company owned by the Buyers and (ii) payment by the Buyers in the amount of $2,300,000 (Note 3). The Company bought back and subsequently cancelled those 5,555,548 ordinary shares. Shares issued in one registered direct offering On November 3, 2020, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional accredited investors (the “Purchasers”), pursuant to which the Company agreed to sell (i) in a registered direct offering, an aggregate of 4,347,826 of the Company’s ordinary shares (869,565 of its ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), $0.001 par value, at a purchase price per share of $0.92 ($4.60 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), for aggregate gross proceeds to the Company of approximately $4.0 million, before deducting placement agent fees and offering expenses payable by the Company, and (ii) in a concurrent private placement, warrants to purchase an aggregate of 4,347,826 Ordinary Shares (869,565 Ordinary Shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). | On November 5, 2020, the Company closed a registered direct offering of 4,347,826 of its ordinary shares (869,565 of its ordinary shares retrospectively restated for effect of reverse stock split on August 30, 2021) at a purchase price of $0.92 per share ($4.60 per share retrospectively restated for effect of reverse stock split on August 30, 2021), for a net proceed of $3.5 million after deducting issuance costs. | On April 29, 2019, the Company completed its IPO of 2,074,672 ordinary shares (414,935 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at a public offering price of $5.00 per share ($25.00 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). | The Company sold all of its shares of LGC to Jiang Bo, Jiang Tao and Wang Di (collectively, the “Buyers”) in exchange for (i) 5,555,548 ordinary shares of the Company owned by the Buyers and (ii) payment by the Buyers in the amount of $2,300,000 (Note 3). | In connection with the acquisition, the Company issued a total of 9,940,002 shares of its ordinary shares to LGC’s shareholders with fair value of approximately $21.07 million based on the closing price of the Company’s stocks at the Closing Date. | ||||
Direct offering shares (in Shares) | 4,347,826 | |||||||||
Purchase price per share (in Dollars per share) | $ 0.92 | |||||||||
Reverse stock split per share (in Dollars per share) | $ 4.6 | |||||||||
Net proceeds | $ 3.5 | |||||||||
Purchase of warrants (in Shares) | 391,304 | 4,347,826 | ||||||||
Reverse stock split shares (in Shares) | 869,565 | |||||||||
Exercise Price Per Share (in Dollars per share) | $ 2.74 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||||
Jul. 31, 2021USD ($) | Jul. 31, 2021CNY (¥) | Jul. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Jan. 29, 2021 | Apr. 30, 2020 | Apr. 22, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Non-controlling interest | $ 120,809 | ||||||
Allowance for uncollectible balance | $ 425,106 | ||||||
Allowance for uncollectible balances | 955,055 | ||||||
Investment in trading securities | 258,738 | 201,051 | |||||
Impairment of long-lived assets | 505,453 | ||||||
Comprised of impairment long-lived assets | 505,453 | ||||||
Impairment of property and equipment | 120,961 | ||||||
Impairment of intangible assets | 384,492 | ||||||
Impairment charges | 51,767 | ||||||
Percentage of gift cards and packaged tickets are redeemed | 100.00% | 100.00% | |||||
Percentage of VAT | 3.00% | 3.00% | |||||
Cash on deposit at financial institutions | $ 69,358 | ||||||
Maximum limit of financial institutions | 77,400 | ¥ 500,000 | |||||
Cash and cash equivalents | 5,596,740 | $ 409,657 | |||||
FDIC amount insured | 250,000 | ||||||
FDIC amount uninsured | $ 4,952,850 | ||||||
LGC [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Percentage of non-controlling interests | 48.80% | ||||||
LGC [Member] | Business Combination [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Percentage of ownership interest | 51.20% | 51.20% | 51.20% | ||||
Percentage of equity interest | 51.20% | ||||||
ATIF LP [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Percentage of non-controlling interests | 68.75% | ||||||
ATIF GP [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Percentage of non-controlling interests | 31.25% | ||||||
Hong Kong and British Virgin Islands [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash and cash equivalents | $ 441,772 | ||||||
U.S [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash and cash equivalents | $ 132,760 | ||||||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Number of customers | 3 | 3 | 1 | 3 | |||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer One [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk, percentage | 41.00% | 41.00% | 97.00% | 44.00% | |||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Two [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk, percentage | 41.00% | 41.00% | 29.00% | ||||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Three [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk, percentage | 11.00% | 11.00% | 19.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of subsidiaries and variable interest entities | 12 Months Ended |
Jul. 31, 2021 | |
ATIF Holdings Limited (“ATIF”) [Member] | |
Parent company: | |
Date of Incorporation | Jan. 5, 2015 |
Place of Incorporation | British Virgin Islands |
% of Ownership | Parent |
Principal Activities | Investment holding |
ATIF Limited (“ATIF HK”) [Member] | |
Parent company: | |
Date of Incorporation | Jan. 6, 2015 |
Place of Incorporation | Hong Kong |
% of Ownership | 100% |
Principal Activities | Investment holding |
ATIF Inc. (“ATIF USA”) [Member] | |
Parent company: | |
Date of Incorporation | Oct. 26, 2020 |
Place of Incorporation | USA |
% of Ownership | 100% |
Principal Activities | Consultancy and information technology support |
Huaya Consultant (Shenzhen) Co., Ltd. (“Huaya”) [Member] | |
Parent company: | |
Date of Incorporation | May 20, 2015 |
Place of Incorporation | PRC |
% of Ownership | 100% |
Principal Activities | WFOE, Consultancy and information technology support |
ATIF-1 GP, LLC (“ATIF GP”) [Member] | |
Parent company: | |
Date of Incorporation | Jan. 21, 2021 |
Place of Incorporation | USA |
% of Ownership | 100% |
Principal Activities | Fund management |
ATIF-1 LP, LLC (“ATIF LP”) [Member] | |
Parent company: | |
Date of Incorporation | Feb. 16, 2021 |
Place of Incorporation | USA |
% of Ownership | 31.25% |
Principal Activities | Investment |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | $ 4,024,414 | |
Non-current assets | 5,678,024 | |
Total assets | 9,702,438 | |
Current liabilities | 7,177,506 | |
Non-current liabilities | 3,245,199 | |
Total liabilities | 10,422,705 | |
Shareholders’ equity (deficit) | (720,267) | |
Qianhai VIE [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | 2,469,829 | |
Non-current assets | 184,740 | |
Total assets | 2,654,569 | |
Current liabilities | 1,441,148 | |
Non-current liabilities | 65,574 | |
Total liabilities | 1,506,722 | |
Shareholders’ equity (deficit) | 1,147,847 | |
LMG VIE [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | 1,554,585 | |
Non-current assets | 5,493,284 | |
Total assets | 7,047,869 | |
Current liabilities | 5,736,358 | |
Non-current liabilities | 3,179,625 | |
Total liabilities | 8,915,983 | |
Shareholders’ equity (deficit) | $ (1,868,114) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of summarized operating results of the VIEs - USD ($) | 6 Months Ended | 12 Months Ended | |||
Feb. 03, 2021 | Jan. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||||
Operating revenue | $ 2,498,505 | $ 685,999 | |||
Income (loss) from operations | (1,214,309) | (6,252,688) | |||
Income (loss) before income taxes | (1,230,052) | (6,419,521) | |||
Net income (loss) | $ (1,205,925) | (6,495,785) | |||
Qianhai VIE [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Operating revenue | $ 380,954 | 645,127 | $ 2,777,618 | ||
Income (loss) from operations | (60,242) | (1,471,095) | 884,789 | ||
Income (loss) before income taxes | (63,765) | (1,562,037) | 930,361 | ||
Net income (loss) | $ (63,765) | (1,562,037) | $ 697,631 | ||
LMG VIE [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Operating revenue | $ 2,117,551 | 40,872 | |||
Income (loss) from operations | (1,154,067) | (4,781,593) | |||
Income (loss) before income taxes | (1,166,287) | (4,857,484) | |||
Net income (loss) | $ (1,142,160) | $ (4,933,748) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of summarized cash flow information of the VIEs - USD ($) | 6 Months Ended | 12 Months Ended | |||
Feb. 03, 2021 | Jan. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | $ (406,269) | $ (487,265) | |||
Net cash provided by (used in) investing activities | 118,541 | 1,451,991 | |||
Net cash provided by (used in) financing activities | (734,347) | ||||
Qianhai VIE [Member] | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | $ (286,657) | 175,530 | (3,380,071) | ||
Net cash provided by (used in) investing activities | 36,412 | 2,700,687 | |||
Net cash provided by (used in) financing activities | $ (14,626) | ||||
LMG VIE [Member] | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | $ (119,612) | (662,795) | |||
Net cash provided by (used in) investing activities | 118,541 | 1,415,579 | |||
Net cash provided by (used in) financing activities | $ (734,347) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets | 12 Months Ended |
Jul. 31, 2021 | |
Transportation vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | |
Estimated useful life | 5 years |
Minimum [Member] | Furniture, fixtures and equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | |
Estimated useful life | 3 years |
Maximum [Member] | Furniture, fixtures and equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of assets [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of the disaggregation of revenues from continuing operations and discontinued operations - USD ($) | 12 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | ||
Schedule of the disaggregation of revenues from continuing operations and discontinued operations [Abstract] | ||||
Consulting service revenue from continuing operations | [1] | $ 936,935 | $ 645,127 | $ 3,078,758 |
Revenue from discontinued operations (multi-channel advertising, event planning and execution and movie theater operation business under LGC) | $ 2,117,551 | $ 40,872 | ||
[1] | Qianhai transferred all of its China-based consulting service business and employees to Huaya before termination of the VIE agreement. The termination of the VIE agreement did not cause material impairment of our long-lived assets (primarily including fixed assets such as office furniture and equipment and automobile) because all of the fixed assets have been transferred to our PRC subsidiary Huaya upon termination of the VIE agreements and there was no assets held for sale or disposal. The management believed the termination of Qianhai VIE agreements does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The termination is not accounted as discontinued operations in accordance with ASC 205-20 (see Note 5). |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 |
RMB: 1USD [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates [Line Items] | |||
Period-end spot rate | 0.1547 | 0.1432 | 0.1453 |
Average rate | 0.1521 | 0.142 | 0.1463 |
HKD: 1USD [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates [Line Items] | |||
Period-end spot rate | 0.1282 | 0.129 | 0.1278 |
Average rate | 0.1282 | 0.1284 | 0.1276 |
Discontinued Operation of LGC_2
Discontinued Operation of LGC (Details) - USD ($) | Jan. 29, 2021 | Aug. 30, 2021 |
Discontinued Operation of LGC (Details) [Line Items] | ||
Reverse stock split shares (in Shares) | 1,428,000 | |
Reconciliation of net loss | $ 5,500,000 | |
LGC [Member] | ||
Discontinued Operation of LGC (Details) [Line Items] | ||
Equity interest | 51.20% | |
Reverse stock split shares (in Shares) | 1,111,110 | |
Jiang Bo, Jiang Tao and Wang Di [Member] | ||
Discontinued Operation of LGC (Details) [Line Items] | ||
Purchase of shares (in Shares) | 5,555,548 | |
Amount payable by buyers | $ 2,300,000 | |
Interest rate | 10.00% | |
Principal amount | $ 2,300,000 |
Discontinued Operation of LGC_3
Discontinued Operation of LGC (Details) - Schedule of consolidated statements of operations and comprehensive loss | 12 Months Ended |
Jan. 29, 2021USD ($) | |
Schedule of consolidated statements of operations and comprehensive loss [Abstract] | |
Share consideration of 5,555,548 ordinary shares (1,111,110 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), at $1.08 per share ($5.40 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) on January 29, 2021 | $ 5,999,992 |
Cash consideration | 2,300,000 |
Consideration in exchange for the disposal | 8,299,992 |
Noncontrolling interest of LGC | 16,516,711 |
Less: Net liabilities (comprised of assets of $7,804,412 and liabilities of $11,001,011) | 3,196,599 |
Gross loss from disposal of discontinued operations | 28,013,302 |
Impairment of goodwill relating to discontinued operations | (25,902,394) |
Impairment of intangible assets relating to discontinue operations | (6,986,615) |
Amortization of intangible assets arising from acquisition of LGC | (608,031) |
Net loss from disposal of discontinued operations | $ (5,483,738) |
Discontinued Operation of LGC_4
Discontinued Operation of LGC (Details) - Schedule of consolidated statements of operations and comprehensive loss (Parentheticals) | 12 Months Ended |
Jan. 29, 2021USD ($)$ / sharesshares | |
Schedule of consolidated statements of operations and comprehensive loss [Abstract] | |
Share consideration ordinary shares | shares | 5,555,548 |
Ordinary shares, price per share | $ / shares | $ 1.08 |
Reverse stock split, ordinary shares | shares | 1,111,110 |
Reverse stock split ordinary shares, price per share | $ / shares | $ 5.4 |
Comprised of assets | $ | $ 7,804,412 |
Comprised of liabilities | $ | $ 11,001,011 |
Discontinued Operation of LGC_5
Discontinued Operation of LGC (Details) - Schedule of major classes of assets and liabilities - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jan. 29, 2021 | |
Carrying amounts of major classes of assets held for sale: | ||
Cash | $ 18,601 | $ 6,297 |
Accounts receivable | 939,392 | 1,241,178 |
Other current assets | 596,591 | 992,333 |
Goodwill | 25,902,394 | |
Intangible assets | 7,594,646 | |
Property and equipment, net | 2,017,151 | 2,125,388 |
Right of use assets | 3,147,825 | 3,422,985 |
Other noncurrent assets | 328,308 | 16,231 |
Total assets of disposal group | 40,544,908 | 7,804,412 |
Carrying amounts of major classes of liabilities held for sale: | ||
Short-term borrowings | 143,248 | 154,842 |
Taxes payable | 3,344,048 | 3,618,661 |
Other current liabilities | 1,932,614 | 3,502,209 |
Lease liabilities | 3,496,070 | 3,725,299 |
Total liabilities of disposal group | $ 8,915,980 | $ 11,001,011 |
Discontinued Operation of LGC_6
Discontinued Operation of LGC (Details) - Schedule of major classes of operations - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Discontinued Operations | |||
Revenues | $ 2,117,551 | $ 40,872 | |
Cost of revenues | (1,557,277) | (227,410) | |
Total operating expenses | (1,714,341) | (5,000,409) | |
Loss from operations | (1,154,067) | (5,186,947) | |
Impairment of goodwill and property and equipment | (5,673,234) | ||
Total other income (expense), net | 12,220 | (75,891) | |
Income tax expenses | (313) | (76,264) | |
Net loss from discontinued operations, net of tax | (1,142,160) | (11,012,336) | |
Net loss from disposal of discontinued operations | (5,483,738) | ||
Net Loss from Discontinued Operations | $ (6,625,898) | $ (11,012,336) |
Termination of Vie Agreements_2
Termination of Vie Agreements with Qianhai (Details) - VIE [Member] - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Termination of Vie Agreements with Qianhai (Details) [Line Items] | ||
Operating revenue | $ 645,127 | |
Net loss | 1,562,037 | |
Net assets | $ 400,000 | $ 1,147,847 |
Total assets | 266,235 | |
Total liabilities | $ 656,417 | |
Net assets, percentage | 4.00% | |
Net income | $ 400,000 | |
Net loss, percentage | 5.00% | |
Other income expenses, net | $ 390,183 |
Business Combination (Details)
Business Combination (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Aug. 30, 2021 | Apr. 22, 2020 | Jul. 31, 2021 | Jan. 29, 2021 | Apr. 30, 2020 | Apr. 08, 2020 | |
Business Combination (Details) [Line Items] | ||||||
Reverse stock split | 1,428,000 | |||||
LGC [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Total purchase consideration (in Dollars) | $ 22,920,000 | |||||
Cash consideration (in Dollars) | $ 1,850,000 | |||||
Reverse stock split | 1,111,110 | |||||
Ordinary shares issued | 3,934,029 | 2,800,000 | ||||
Outstanding debt owed to the company (in Dollars) | $ 1,851,000 | |||||
Reverse stock split | 560,000 | |||||
Number of shares assigned by the acquiree | 6,283,001 | |||||
Number of shares exchanged | 7,140,002 | |||||
Equity interest held by noncontrolling interest, percentage | 48.80% | |||||
ATIF [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Reverse stock split | 1,988,000 | |||||
Business Combination [Member] | LGC [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Equity interest to be acquired, percentage | 51.20% | |||||
Equity interest acquired, percentage | 51.20% | 51.20% | 51.20% | |||
Total purchase consideration (in Dollars) | $ 22,920,000 | |||||
Shares issued as consideration | 9,940,002 | |||||
Fair value of shares issued (in Dollars) | $ 21,070,000 | |||||
Trade Names [Member] | LGC [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Intangible assets (trade name and customer relationship) (in Dollars) | $ 1,300,000 | |||||
Definite lives (in years) | 9 years 7 months 6 days | |||||
Customer Relationships [Member] | LGC [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Intangible assets (trade name and customer relationship) (in Dollars) | $ 6,700,000 | |||||
Definite lives (in years) | 6 years 2 months 12 days |
Business Combination (Details)
Business Combination (Details) - Schedule of purchase price allocation to assets acquired and liabilities assumed in a business combination - LGC | Apr. 22, 2020USD ($) |
Business Combination (Details) - Schedule of purchase price allocation to assets acquired and liabilities assumed in a business combination [Line Items] | |
Cash and cash equivalents | $ 1,060,435 |
Accounts receivable | 2,613,970 |
Prepayment and other current assets | 2,219,950 |
Property and equipment | 2,728,000 |
Intangible assets (trade name and customer relationship) | 8,000,000 |
Deferred film production cost | 323,522 |
Deferred income tax assets | 75,822 |
Taxes payable | (3,255,935) |
Other current liabilities | (2,701,495) |
Fair value of non-controlling interest | (19,664,326) |
Goodwill | 31,523,861 |
Total purchase consideration | $ 22,923,804 |
Business Combination (Details_2
Business Combination (Details) - Schedule of the amounts of revenue and net loss of LGC included in the Company's consolidated statement of operations and the Company's unaudited pro forma results - LGC | 12 Months Ended |
Jul. 31, 2020USD ($) | |
Business Combination (Details) - Schedule of the amounts of revenue and net loss of LGC included in the Company's consolidated statement of operations and the Company's unaudited pro forma results [Line Items] | |
Net Revenue | $ 40,872 |
Net loss | $ (4,933,748) |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 | |
Schedule of prepaid expenses and other current assets [Abstract] | |||
Prepayment for advertising service fee | [1] | $ 600,000 | $ 600,000 |
Prepaid service fees | 20,000 | 64,189 | |
Prepaid insurance service fee | 58,150 | ||
Advance to vendors | 10,000 | 10,000 | |
Others | 300 | 22,340 | |
Total | $ 688,451 | $ 696,529 | |
[1] | Prepayment for advertising services represent the advance payments made by the Company to a third party advertising company for producing advertising contents. These prepayments are typically expensed over the period when the services are performed. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 124,661 | $ 85,183 | $ 20,615 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property and equipment stated at cost less accumulated depreciation - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 761,659 | $ 716,896 |
Less: accumulated depreciation | (189,632) | (110,656) |
Property and equipment, net | 572,027 | 606,240 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 187,053 | 141,065 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 574,606 | $ 575,831 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 80,000 | $ 35,545 | $ 29,707 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of net intangible assets - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 376,250 | $ 396,180 |
Less: accumulated amortization | (142,919) | (65,742) |
Intangible assets, net | 233,331 | 330,456 |
Financial and news platform [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 56,250 | 56,611 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 320,000 | $ 339,569 |
Investment in Life Insurance _2
Investment in Life Insurance Contract (Details) $ in Millions | 1 Months Ended | |||
Sep. 22, 2020USD ($) | Sep. 22, 2020HKD ($) | Jul. 29, 2019USD ($) | Sep. 22, 2020HKD ($) | |
Investment in Life Insurance Contract (Details) [Line Items] | ||||
Investment deposit | $ 1,225,105 | $ 9.5 | ||
Subject to a penalty | $ 65,001 | $ 0.5 | ||
Manulife International Limited [Member] | ||||
Investment in Life Insurance Contract (Details) [Line Items] | ||||
Investment deposit | $ 1,290,289 | |||
Rates of return (as a percent) | 9.48% | |||
Minimum [Member] | Manulife International Limited [Member] | ||||
Investment in Life Insurance Contract (Details) [Line Items] | ||||
Rates of return (as a percent) | 8.69% | |||
Maximum [Member] | Manulife International Limited [Member] | ||||
Investment in Life Insurance Contract (Details) [Line Items] | ||||
Rates of return (as a percent) | 11.49% |
Investments in Trading Securi_3
Investments in Trading Securities (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Decrease in fair value | $ 258,738 | |
Increase in fair value | $ 201,051 |
Investments in Trading Securi_4
Investments in Trading Securities (Details) - Schedule of investments in trading securities - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Debt Instrument [Line Items] | ||
Trading securities invested | $ 1,027,509 | $ 918,675 |
ATIF [Member] | ||
Debt Instrument [Line Items] | ||
Trading securities invested | 871,809 | 918,675 |
ATIF LP [Member] | ||
Debt Instrument [Line Items] | ||
Trading securities invested | $ 155,700 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Disclosure Text Block [Abstract] | |||
Rent expense | $ 616,113 | $ 537,262 | $ 515,010 |
Operating Leases (Details) - Sc
Operating Leases (Details) - Schedule of operating lease related assets and liabilities recorded on the balance sheets - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Schedule of operating lease related assets and liabilities recorded on the balance sheets [Abstract] | ||
Right-of- use assets, net | $ 745,125 | $ 620,593 |
Operating lease liabilities, current | 382,298 | 433,904 |
Operating lease liabilities, noncurrent | 387,307 | 203,265 |
Total operating lease liabilities | $ 769,605 | $ 637,169 |
Operating Leases (Details) - _2
Operating Leases (Details) - Schedule of weighted average remaining lease terms and discount rates for all of operating leases for continuing operations | Jul. 31, 2021 | Jul. 31, 2020 |
Remaining lease term and discount rate | ||
Weighted average remaining lease term (years) | 2 years 29 days | 1 year 6 months 10 days |
Weighted average discount rate | 4.90% | 4.90% |
Operating Leases (Details) - _3
Operating Leases (Details) - Schedule of weighted average remaining lease terms and discount rates for all of operating leases for discontinued operations | Jul. 31, 2020 |
Remaining lease term and discount rate | |
Weighted average remaining lease term (years) | 10 years 2 months 15 days |
Weighted average discount rate | 4.90% |
Operating Leases (Details) - _4
Operating Leases (Details) - Schedule of maturities of lease liabilities - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Schedule of maturities of lease liabilities [Abstract] | ||
2022 and 2021 | $ 409,922 | $ 462,840 |
2023 and 2022 | 252,969 | 198,374 |
2024 and 2023 thereafter | 150,468 | |
Total lease payments | 813,360 | 661,214 |
Less: imputed interest | (43,755) | (24,045) |
Present value of lease liabilities | $ 769,605 | $ 637,169 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Jul. 31, 2021USD ($) | |
Related Party Transactions [Abstract] | |
Office lease expense for lease arrangement with Asia Time HK | $ 79,875 |
Taxes (Details)
Taxes (Details) | May 01, 2016 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 |
Taxes (Details) [Line Items] | ||||
VAT rate | 3.00% | |||
Surcharges on VAT payable | 12.00% | |||
Statutory income tax rate | 21.00% | |||
Income tax rate | 25.00% | |||
Subject to preferential | 10.00% | |||
State tax rate | 8.84% | |||
Percentage of valuation allowance provided | 100.00% | |||
Tax benefit, description | The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. | |||
Limitation of tax, description | The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. There were no uncertain tax positions as of July 31, 2021 and 2020 and the Company does not believe that its unrecognized tax benefits will change over the next twelve months | |||
Hong Kong [Member] | ||||
Taxes (Details) [Line Items] | ||||
Statutory income tax rate | 16.50% | 16.50% | 16.50% |
Taxes (Details) - Schedule of r
Taxes (Details) - Schedule of reconciliation of statutory rate to effective tax rate | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Schedule of reconciliation of statutory rate to effective tax rate [Abstract] | |||
China income tax rate | 25.00% | 25.00% | 25.00% |
Rate differential | (24.70%) | (10.00%) | 15.80% |
Permanent difference on non-deductible expenses | 0.00% | 0.00% | 0.10% |
Utilization of the Net Operating Loss (“NOL”) from prior years | 1.30% | 0.00% | (1.70%) |
Change in valuation allowance | (1.60%) | (15.00%) | 0.00% |
Effective tax rate | 0.00% | 0.00% | 39.20% |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax expenses - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Current income tax provision | |||
Subtotal | $ 276,823 | ||
Deferred income tax provision | |||
Total income tax provision | 276,823 | ||
BVI [Member] | |||
Current income tax provision | |||
Subtotal | |||
Deferred income tax provision | |||
Total income tax provision | |||
Hong Kong [Member] | |||
Current income tax provision | |||
Subtotal | |||
Deferred income tax provision | |||
Total income tax provision | |||
China [Member] | |||
Current income tax provision | |||
Subtotal | 276,823 | ||
Deferred income tax provision | |||
Total income tax provision |
Taxes (Details) - Schedule of c
Taxes (Details) - Schedule of components of company's deferred tax assets - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Schedule of components of company's deferred tax assets [Abstract] | ||
Allowance for doubtful account | $ 105,059 | $ 212,010 |
Net operating loss carry forwards | 664,208 | 746,024 |
Deferred tax assets before valuation allowance | 769,267 | 958,034 |
Less: valuation allowance | (769,267) | (958,034) |
Net deferred tax assets |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes payable - USD ($) | Jul. 31, 2021 | Jul. 31, 2020 |
Schedule of taxes payable [Abstract] | ||
Value added tax payable | $ 18,104 | $ 73,031 |
Income tax payable | 39,253 | 584,503 |
Other taxes payable | 660 | 2,582 |
Total taxes payable | $ 58,017 | $ 660,116 |
Equity (Details)
Equity (Details) - USD ($) | Nov. 03, 2020 | Feb. 02, 2018 | Jan. 05, 2015 | Aug. 30, 2021 | Apr. 29, 2021 | Feb. 27, 2021 | Jan. 29, 2021 | Apr. 22, 2020 | Apr. 29, 2019 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | Aug. 21, 2018 |
Equity (Details) [Line Items] | ||||||||||||||
Authorized capital | 100,000,000 | |||||||||||||
Per share (in Dollars per share) | $ 0.0004 | |||||||||||||
Reverse stock split, description | FT Global acted exclusive placement agent for the registered direct offering and the private placement. As compensation, the Company paid FT Global a cash fee of equal to 7.5% of the gross proceeds of the registered direct offering, up to $30,000 in reimbursable expenses, and warrants to purchase 391,304 of its ordinary shares (78,260 of its ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at an exercise price of $1.10 per share ($5.5 per share retrospectively restated for effect of reverse stock split on August 30, 2021). | On August 21, 2018, the Company amended its Memorandum of Association and passed corporate authorizations to redeem and cancel the 50,000,000 issued shares and simultaneously increased the number of the authorized shares to 100,000,000,000 and increased the par value of each share to $0.001. In connection with the cancellation of the 50,000,000 shares, the Company issued 50,000 shares to the controlling shareholders at $0.001 per share.On November 2, 2018, the Company issued additional 49,950,000 ordinary shares, at par value of $0.001 per share, to its beneficial owners, in private transactions, for a total consideration of $49,950. On February 27, 2019, the Company’s pre-IPO shareholders surrendered an aggregated 15,000,000 ordinary shares, which were subsequently cancelled, for no consideration, and resulted in a reduction in outstanding issued shares from 50,000,000 ordinary shares to 35,000,000 ordinary shares with a par value of $0.001 per share (the “Surrender”). On August 23, 2021, we completed a five (5) for one (1) reverse stock split (the “Reverse Split”) of our issued and outstanding ordinary shares, par value $0.001 per share. From a BVI legal perspective, the Reverse Split applied to the issued shares of the Company on the date of the Reverse Split and does not have any retroactive effect on the Company's shares prior that date. However, for accounting purposes only (with no BVI legal effect), references to our ordinary shares in this annual report are stated as having been retroactively adjusted and restated to give effect to the Reverse Split, as if the Reverse Split had occurred by the relevant earlier date. Initial Public Offering On April 29, 2019, the Company completed its IPO of 2,074,672 ordinary shares (414,935 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at a public offering price of $5.00 per share ($25.00 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). The gross proceeds were approximately $10.4 million before deducting the underwriter’s commissions and other offering expenses, resulting in net proceeds of approximately $8.8 million to the Company. In connection with the offering, the Company’s ordinary shares began trading on the NASDAQ Capital Market on May 3, 2019, under the symbol “ATIF.” Shares issued for acquisition of LGC As disclosed in Note 4 above, on April 22, 2020, the Company completed an acquisition of approximately 51.2% of the equity interest of LGC. In connection with the acquisition, the Company issued a total of 9,940,002 shares of its ordinary shares to LGC’s shareholders with fair value of approximately $21.07 million based on the closing price of the Company’s stocks at the Closing Date. Shares cancelled in disposition of LGC On January 29, 2021, the Company completed a disposition of 51.2% of the equity interest of LGC. The Company sold all of its shares of LGC to Jiang Bo, Jiang Tao and Wang Di (collectively, the “Buyers”) in exchange for (i) 5,555,548 ordinary shares of the Company owned by the Buyers and (ii) payment by the Buyers in the amount of $2,300,000 (Note 3). The Company bought back and subsequently cancelled those 5,555,548 ordinary shares. Shares issued in one registered direct offering On November 3, 2020, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional accredited investors (the “Purchasers”), pursuant to which the Company agreed to sell (i) in a registered direct offering, an aggregate of 4,347,826 of the Company’s ordinary shares (869,565 of its ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), $0.001 par value, at a purchase price per share of $0.92 ($4.60 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021), for aggregate gross proceeds to the Company of approximately $4.0 million, before deducting placement agent fees and offering expenses payable by the Company, and (ii) in a concurrent private placement, warrants to purchase an aggregate of 4,347,826 Ordinary Shares (869,565 Ordinary Shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). | On November 5, 2020, the Company closed a registered direct offering of 4,347,826 of its ordinary shares (869,565 of its ordinary shares retrospectively restated for effect of reverse stock split on August 30, 2021) at a purchase price of $0.92 per share ($4.60 per share retrospectively restated for effect of reverse stock split on August 30, 2021), for a net proceed of $3.5 million after deducting issuance costs. | On April 29, 2019, the Company completed its IPO of 2,074,672 ordinary shares (414,935 ordinary shares retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021) at a public offering price of $5.00 per share ($25.00 per share retrospectively restated for accounting purposes for effect of reverse stock split on August 30, 2021). | The Company sold all of its shares of LGC to Jiang Bo, Jiang Tao and Wang Di (collectively, the “Buyers”) in exchange for (i) 5,555,548 ordinary shares of the Company owned by the Buyers and (ii) payment by the Buyers in the amount of $2,300,000 (Note 3). | In connection with the acquisition, the Company issued a total of 9,940,002 shares of its ordinary shares to LGC’s shareholders with fair value of approximately $21.07 million based on the closing price of the Company’s stocks at the Closing Date. | ||||||||
Shares issued | 50,000,000 | |||||||||||||
Authorized shares | 100,000,000,000 | |||||||||||||
Par value (per share) (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||
Number of shares to be cancelled | 50,000,000 | |||||||||||||
Issued new shares | 50,000 | |||||||||||||
Per share (in Dollars per share) | $ 0.001 | |||||||||||||
Additional ordinary shares | 49,950,000 | |||||||||||||
Total consideration (in Dollars) | $ 49,950 | |||||||||||||
Aggregate ordinary shares | 4,347,826 | 15,000,000 | ||||||||||||
Ordinary shares issued | 50,000,000 | |||||||||||||
Ordinary shares owned | 5,555,548 | |||||||||||||
Net proceeds from initial public offering (in Dollars) | $ 3,535,000 | $ 8,772,754 | ||||||||||||
Disposition of equity interest percentage | 51.20% | |||||||||||||
Payment by the Buyers (in Dollars) | $ 2,300,000 | |||||||||||||
Ordinary shares | 5,555,548 | |||||||||||||
Aggregate direct offering shares | 4,347,826 | |||||||||||||
Per share (in Dollars per share) | $ 0.001 | |||||||||||||
Purchase price (in Dollars per share) | $ 0.92 | |||||||||||||
Gross proceeds (in Dollars) | $ 4,000,000 | |||||||||||||
Percentage of cash fee | 7.50% | |||||||||||||
Reimbursement expenses (in Dollars) | $ 30,000 | |||||||||||||
Purchase of warrants | 391,304 | 4,347,826 | ||||||||||||
Exercise price per share (in Dollars per share) | $ 1.1 | |||||||||||||
Warrant term | 5 years | |||||||||||||
Ordinary shares, Issued | 9,161,390 | 9,402,935 | ||||||||||||
After tax net income, percenatge | 10.00% | |||||||||||||
Reserve, percenatge | 50.00% | |||||||||||||
Restricted amounts as determined pursuant to PRC statutory laws (in Dollars) | $ 355,912 | $ 355,912 | ||||||||||||
Total restricted net assets (in Dollars) | $ 962,374 | $ 962,374 | ||||||||||||
Leaping Group Co. Ltd [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Issued new shares | 5,555,548 | |||||||||||||
Business Combination [Member] | Leaping Group Co. Ltd [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Equity interest acquired | 51.20% | 51.20% | 51.20% | |||||||||||
Shares issued as consideration | 9,940,002 | |||||||||||||
Fair value of shares issued (in Dollars) | $ 21,070,000 | |||||||||||||
Warrant [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Exercise price per share (in Dollars per share) | $ 2.74 | |||||||||||||
IPO [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Shares issued | 414,935 | 2,074,672 | ||||||||||||
Ordinary shares owned | 2,074,672 | |||||||||||||
Gross proceeds (in Dollars) | $ 10,400,000 | |||||||||||||
Net proceeds from initial public offering (in Dollars) | $ 8,800,000 | |||||||||||||
Per share (in Dollars per share) | $ 25 | $ 5 | ||||||||||||
IPO [Member] | Business Combination [Member] | Leaping Group Co. Ltd [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Shares issued as consideration | 9,940,002 |
Contigencies (Details)
Contigencies (Details) | Nov. 11, 2019USD ($) | Sep. 25, 2020USD ($) | Sep. 25, 2020CNY (¥) | Jan. 29, 2021 | Jul. 31, 2020USD ($) | Apr. 30, 2020 | Apr. 22, 2020 |
Contigencies (Details) [Line Items] | |||||||
Consulting service fee | $ 300,000 | ||||||
Deposit | $ 250,000 | ||||||
Arbitration fee and counterclaim fee | $ 11,724 | ¥ 81,844 | |||||
Accrued legal liabilities | $ 261,724 | ||||||
Business Combination [Member] | LGC [Member] | |||||||
Contigencies (Details) [Line Items] | |||||||
Equity interest acquired | 51.20% | 51.20% | 51.20% |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Sep. 14, 2021 | Aug. 12, 2021 | Jul. 26, 2021 |
Subsequent Events (Details) [Line Items] | |||
Per share | $ 1 | ||
Subsequent Event [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Per share | $ 1 | $ 0.001 | |
Per share value | 0.001 | ||
Reverse Split [Member] | Subsequent Event [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Per share value | $ 0.005 |