7. Discontinued Operations (Tables)

9 Months Ended

Apr. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Schedule of discontinued operations financial information

In accordance with the provisions of ASC 205-20, the results of operations for these entities have been reflected as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss for the nine months ended April 30, 2019 and 2018, and consist of the following:

	For the Nine Months Ended
	April 30, 2019		April 30, 2018
REVENUES OF DISCONTINUED OPERATIONS	$	–	$	9,030,465

OPERATING EXPENSES OF DISCONTINUED OPERATIONS:
Cost of sales		–		1,853,034
Depreciation and amortization expense		–		21,338
Advertising expense		–		104,969
Rent Expense		–		316,624
Salaries and wages expense		–		2,496,382
Other general and administrative expenses		–		2,170,802
		–		6,963,149
OPERATING INCOME OF DISCONTINUED OPERATIONS		–		2,067,316

OTHER (INCOME) EXPENSE OF DISCONTINUED OPERATIONS
Other (income) expense		–		33
Gain on foreign exchange		–		(11,440	)
Interest income		–		(4,836	)
Interest expense		–		653,576
		–		637,333

INCOME BEFORE INCOME TAXES OF DISCONTINUED OPERATIONS		–		1,429,983
Provision for income taxes of discontinued operations		–		402,159
NET INCOME OF DISCONTINUED OPERATIONS	$	–	$	1,027,824

In accordance with the provisions of ASC 205-20, the cash flow activity from discontinued operations have been reflected as discontinued operations in the Consolidated Statements of Cash Flows for the nine months ended April 30, 2019 and 2018, and consist of the following:

	For the Nine Months Ended
	April 30, 2019		April 30, 2018
DISCONTINUED OPERATING ACTIVITIES
Net income	$	–	$	1,027,824
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		–		21,338
Bad debt expense		–		11,303
Amortization of debt discount		–		16,515
Changes in operating assets and liabilities:
Accounts receivable		–		(653,183	)
Accounts receivable - related party		–		27,300
Prepaid expenses and other current assets		–		(4,913	)
Other assets		–		(5,951	)
Accounts payable and accrued expenses		–		(104,689	)
Accounts payable to related party		–		46,924
Deferred revenue		–		60,169
Taxes payable		–		591,037
Net cash provided by operating activities of discontinued operations	$	–	$	1,033,674

INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS
Purchase of property and equipment	$	–	$	(4,259	)
Proceeds from collection of notes receivables		–		457,910
Payments for notes receivable lending		–		(296,819	)
Net cash provided by investing activities of discontinued operations	$	–	$	156,832

FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS
Proceeds from notes payable	$	–	$	182,000
Payments on note payable		–		(982,800	)
Payments on notes payable - related parties		–		(176,540	)
Proceeds from notes payable - related parties		–		91,000
Net cash used in financing activities of discontinued operations	$	–	$	(886,340	)

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721665-107760

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109226691&loc=d3e2941-110230

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Grand Perfecta, Inc. 10-Q