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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q/A

Amendment No.1

 

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF

 

1934 For the quarterly period ended: October 31, 2024

 

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ________ to ________

 

Commission File Number: 000-54439

 

HARTFORD CREATIVE GROUP, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Nevada

(State or other jurisdiction of incorporation or organization)

 

51-0675116

(I.R.S. Employer Identification Number)

 

8832 Glendon Way, Rosemead, California 91770

(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number including area code: (626)321-1915

 

HARTFORD GREAT HEALTH CORP.

 

Former name, former address, and former fiscal year, if changed since last report

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by checkmark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☒
Emerging growth company ☐  

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common stock, par value $0.001 par value   HFUS   OTC Markets Group

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 100,108,000 shares of common stock outstanding as of January 16, 2025.

 

 

 

 
 

 

EXPLANATORY NOTE

 

This Amendment No. 1 to our Quarterly Report on Form 10-Q for the period from August 1, 2024, to October 31, 2024, which was originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 16, 2024 (the “Original Filing”), is being submitted for the following purpose:

 

(a)To update Note 9, “Subsequent Events to Condensed Consolidated Financial Statements (unaudited),” in Part I of Form 10-Q, by adding the disposal of the non-operating entity, SHDZ, as a subsequent event.

 

Except as described above, this Amendment No. 1 does not amend, modify, or otherwise update any other information in the Original Filing and does not reflect other events occurring after the filing of the Original Filing.

 

 
 

 

Index

 

    Page
     
Part I - FINANCIAL INFORMATION  
     
Item 1. Unaudited Consolidated Financial Statements  
  Condensed Consolidated Balance Sheets as of October 31, 2024 (unaudited) and July 31, 2024 3
  Condensed Consolidated Statements of Operations for the Three months ended October 31, 2024 and 2023 (unaudited) 4
  Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three months ended October 31, 2024 and 2023 (unaudited) 5
  Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) (unaudited) 6
  Condensed Consolidated Statements of Cash Flows for the Three months ended October 31, 2024 and 2023(unaudited) 7
  Notes to Condensed Consolidated Financial Statements (unaudited) 8
     
Item 2. Management’s Discussion and Analysis or Plan of Operation 12
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 16
     
Item 4. Controls and Procedures 16
     
Part II - OTHER INFORMATION  
     
Item 1. Legal Proceedings 17
     
Item 1A. Risk Factors 17
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17
     
Item 3. Defaults Upon Senior Securities 17
     
Item 4. Mine Safety Disclosures 17
     
Item 5. Other Information 17
     
Item 6. Exhibits 17
   
SIGNATURES 18

 

2
 

 

HARTFORD CREATIVE GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   October 31, 2024   July 31, 2024 
   (Unaudited)     
ASSETS          
Current Assets          
Cash and cash equivalents  $52,895   $310,763 
Accounts receivable   -    573,530 
Advance to contractor   829,377    2,422,392 
Current loan receivable   814,847    138,577 
Related party receivable*   -    - 
Prepaid and Other current receivables   25,963    26,483 
Total Current Assets   1,723,082    3,471,745 
Non-current Assets          
Property and equipment, net   595    587 
ROU assets-operating lease   9,105    10,771 
Deferred tax assets   204,901    204,901 
Total Non-current Assets   214,601    216,259 
TOTAL ASSETS  $1,937,683   $3,688,004 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities          
Accounts payable  $169,292   $1,326,907 
Related party loan and payables*   748,653    648,643 
Contract liabilities   504,325    1,315,189 
Current operating Lease liabilities   5,533    3,491 
Other current payable   475,334    461,319 
Non-interest-bearing payable*   3,302,469    3,282,161 
Total Current Liabilities   5,205,606    7,037,710 
Lease liabilities, noncurrent   1,923    3,768 
TOTAL LIABILITIES   5,207,529    7,041,478 
           
Commitments and contingencies   -    - 
Stockholders’ Equity (Deficit)          
Preferred stock - $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding   -    - 
Common stock - $0.001 par value, 300,000,000 shares authorized, 100,108,000 shares outstanding at both of October 31, 2024 and July 31, 2024.   100,108    100,108 
Additional paid-in capital   2,173,521    2,173,521 
Accumulated deficit   (5,783,574)   (5,910,843)
Accumulated other comprehensive income   240,099    283,740 
Total Stockholders’ Deficit   (3,269,846)   (3,353,474)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $1,937,683   $3,688,004 

 

*Balances reclassified due to related party relationship changes. See Note 4.

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

3
 

 

HARTFORD CREATIVE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

         
   Three months ended 
   October 31, 
   2024   2023 
Revenue  $467,462   $- 
Operating cost and expenses:          
Cost of revenue   109,822    - 
Selling, general and administrative expenses   165,568    20,192 
Total operating cost and expenses   275,390    20,192 
Operating income (loss)   192,072    (20,192)
Other expense          
Interest expense, net   (1,402)   (5,264)
Other expense, net   (440)     
Other expense, net   (1,842)   (5,264)
Income (loss) before income taxes   190,230    (25,456)
Income Tax Expense   62,961    - 
Net income (loss)   127,269    (25,456)
           
Net income per common share:          
Basic and diluted   $

0.00

   $

0.00

 
Weighted average shares outstanding:          
Basic and diluted   100,108,000    100,108,000 

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

4
 

 

HARTFORD CREATIVE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

 

         
   Three months ended 
   October 31, 
   2024   2023 
Net income (loss)  $127,269   $(25,456)
Other Comprehensive (loss) income, net of income tax          
Foreign currency translation adjustments   (43,641)   97,167 
Total Other Comprehensive (loss) Income   (43,641)   97,167 
Total Comprehensive income  $83,628   $71,711 

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

5
 

 

HARTFORD CREATIVE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

 

                   Accumulated   Total 
          Additional       Other   Stockholders’ 
   Common Stock   Paid - in   Accumulated   Comprehensive   Equity 
   Shares   Amount   Capital   (Deficit)   Income (loss)   (Deficit) 
Balance, July 31, 2024   100,108,000    100,108    2,173,521    (5,910,843)   283,740    (3,353,474)
Net income   -    -    -    127,269    -    127,269 
Foreign currency translation adjustment   -    -    -    -    (43,641)   (43,641)
Balance, October 31, 2024 (unaudited)   100,108,000    100,108    2,173,521    (5,783,574)   240,099    (3,269,846)

 

                   Accumulated   Total 
           Additional       Other   Stockholders’ 
   Common Stock   Paid - in   Accumulated   Comprehensive   Equity 
   Shares   Amount   Capital   (Deficit)   income   (Deficit) 
Balance, July 31, 2023   100,108,000    100,108    2,173,521    (7,003,717)   240,382    (4,489,706)
Net loss   -    -    -    (25,456)   -    (25,456)
Foreign currency translation adjustment   -    -    -    -    97,167    97,167 
Balance, October 31, 2023 (unaudited)   100,108,000    100,108    2,173,521    (7,029,173)   337,549    (4,417,995)

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

6
 

 

HARTFORD CREATIVE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

         
   Three Months ended 
   October 31, 
   2024   2023 
Cash flows from operating activities:          
Net income  $127,269   $(25,456)
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Depreciation   -    79 
Changes in operating assets and liabilities:          
Accounts receivable, net   583,009    - 
Prepaid and Other current receivables   582    - 
Advance to contractor   1,631,243    - 
Related party receivables and payables   7,289    5,264 
Contract liabilities   (831,501)   - 
Accounts payable   (1,179,176)   - 
Other current payable   9,412    - 
Operating lease assets and liabilities   (78)   - 
Net cash provided by (used in) operating activities   348,049    (20,113)
           
Cash flows from investing activities:          
Current loan receivable   (675,826)   - 
Net cash used in investing activities   (675,826)   - 
           
Cash flows from financing activities:          
Proceeds of related party notes payable   126,700    28,000 
Repayment of related party notes payable   (35,000)   - 
Repayment of non-interest-bearing payable   (26,751)   - 
Net cash provided by financing activities   64,949    28,000 
Effect of exchange rate changes on cash   4,960    (53)
Net change in Cash, cash equivalents and restricted cash   (257,868)   7,834 
Cash, cash equivalents and restricted cash at beginning of period   310,763    5,793 
Cash, cash equivalents and restricted cash at end of period  $52,895   $13,627 
           
Supplemental Cash Flow Information          
Interest paid  $-   $- 
Income taxes paid  $237,982   $- 

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

7
 

 

HARTFORD CREATIVE GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. The financial statements and notes are the responsibility of the Company’s management. These accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied in the preparation of the financial statements. This disclosure should be read in conjunction with our audited financial statements for the year ended July 31, 2024, including footnotes, contained in our Annual Report on Form 10-K.

 

Organization

 

Hartford Creative Group, Inc. (Formerly name Hartford Great Health Corp.) was originally incorporated in the State of Nevada on April 2, 2008 under the name PhotoAmigo, Inc. It changed its name to Hartford Great Health Corp. on August 22, 2018. On May 11, 2024, the Company further changed its name to Hartford Creative Group, Inc.

 

Through its wholly owned subsidiary - Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF) and HZHF’s 60 percent owned subsidiary - Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”), and through Shanghai Hartford Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), the Company engages in hospitality industry in China. Qiao Garden Int’l Travel was disposed on December 31, 2020.

 

The Company engaged in early childhood education industry at Hartford International Education Technology Co., Ltd (“HF Int’l Education”) and its subsidiaries setup or acquired.

 

Impacted by the government regulation implemented in education industry and the restrictions posted by the Chinese government to control the pandemic in China since 2021, to avoid further operation losses, on August 1, 2022, HFSH entered a contract with a related party, Shanghai Oversea Chinese Culture Media Ltd. (“SH Oversea”), to sell 90 percent ownership of HF Int’l Education and its subsidiaries for $900 (RMB 5,850). On August 1, 2022, HFUS entered a contract with SH Oversea and another individual, to sell 100 percent ownership of HZHF and its subsidiaries for $1,000 (RMB 6,500).

 

Beginning in January 2024, the Company embarked on the development of a new business within the Media and Marketing sector. As part of its rebranding strategy, on January 01, 2024, HFSH changed its legal name from Shanghai Hartford Health Management, Ltd. to Shanghai Hartford ZY Culture Media Ltd. (“HFZY”). HFZY mainly engages in social media advertising business on mainstream social media platforms such as Tik Tok, Toutiao, Kwai, RED, WeChat, and more. As an advertising partner of China’s major social media platforms, the Company relies on a high-quality and professional media strategy execution team and network to help customers use the massive media resources of different types of social media platforms and receive competitive prices due to large-scale media resource procurement to purchase media resources. It aims to become one of the total solution advertising providers for domestic social media industry in China and provide customers with vertical integration services from early-stage advertising video creativity, shooting, editing, to advertising operation and management on social media apps. Further expanding its business operations, HFUS reacquired full ownership of HZHF at no cost on April 1, 2024, and subsequently rebranded it as Hangzhou Hartford WP Culture Media Ltd. (“HZWP”). On April 11, 2024, HFUS continued its growth trajectory by establishing a new subsidiary named Shanghai DZ Culture Media Ltd. (“SHDZ”). On June 18, 2024, HFUS successfully completed the acquisition of ShangXing HuoMao Network Technology Ltd. (SXHM). The acquisition was executed at no cost, and there were no significant assets or liabilities exchanged during the transfer.

 

Basis of Presentation

 

The consolidated financial statements include the accounts of Hartford Creative Group, Inc., its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests of the consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in the consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

 

Reclassification

 

Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no impact on the Company’s net income, net cash flows, or stockholders’ equity.

 

8
 

 

Revenue Recognition

 

The Company follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy a performance obligation. Billings to customers for which services are not rendered are considered deferred revenue. The Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products or providing services to a customer. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms.

 

The Company is developing business plan and aim to provide customers with vertical integration services from early-stage advertising video creativity, shooting, editing, to advertising operation and management on social media apps. Most of the advertising revenue will be generated by placing ad products on Tik Tok, Toutiao, Kwai, RED, WeChat, and other third-party affiliated websites and mobile applications. Currently, the Company provides traffic acquisition service to place the advertisements produced by the advertisers. The advertisements are published on the targeted media platforms as determined by the customers. Besides, the Company provides advertisements account charging service to customers upon the request from customers. Revenue is recognized at a point in time when the distribution of advertisements and charging of advertisement accounts are completed upon the completion confirmation from customers and suppliers.

 

During the three months ended October 31, 2024, the Company has provided advertising placement services to 15 customers and received approximately RMB 34.4 million (USD 4.8 million) as advanced payment from these customers. The Company also acquired advertising placement services from 28 suppliers and prepaid RMB 29.4 million (USD 4.1 million). During the three months ended October 31, 2024, the Company recognized USD 0.5 million revenue from the advertisement placement services. The advertisements are published on the targeted media platforms as determined by the customers. The Company is not the principal in this arrangement as the Company does not control the specified service (i.e., the traffic) before that service is delivered to the customer, because (i) it is the targeted media platform, rather than the Company, who is primarily responsible for providing the media publishing service; (ii) the media platforms are identified and determined by the customers, rather than the Company, and the Company does not commit to acquire the traffic before transferring to the customers. Therefore, the Company is not the principal in executing these transactions. The Company reports the amount received from the customers and the amounts paid to the media suppliers related to these transactions on a net basis.

 

In the comparable period in prior year, impacted by the Covid-19 pandemic and Chinese regulation on education industry, both early childhood education services and hospitality services have been sold on August 1, 2022, and the advertising revenue has not started until January 2024. Thus, there was no revenue recognized for the three months ended October 31, 2023.

 

Segment Reporting

 

The Company uses the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining the Company’s reportable segments. During the reporting periods, the Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker regularly reviews consolidated assets and consolidated operating results prepared under U.S. GAAP for the enterprise as a whole when making decisions about allocating resources and assessing performance of the Company. Consequently, management has determined that the Company only has one operating segment as defined under ASC 280-10-50.

 

Recent Accounting Pronouncements.

 

Recently not yet adopted accounting pronouncements

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The new guidance requires enhanced disclosures about income tax expenses. The Company is required to adopt this guidance in the first quarter of the fiscal year 2026. Early adoption is permitted on a prospective basis. We are currently evaluating the impact of this ASU on our annual income tax disclosures.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The new guidance requires enhanced disclosures about significant segment expenses. The Company is required to adopt this guidance for its annual reporting in fiscal year 2025 and for interim period reporting beginning the first quarter of fiscal year 2026 on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this ASU on our segment disclosures.

 

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.

 

9
 

 

NOTE 2. GOING CONCERN

 

The accompanying financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. As of October 31, 2024, The Company had a working capital deficit of $3,482,524 and an accumulated deficit of $5,783,574. These conditions raise substantial doubt about the ability of Hartford Creative Group, Inc. to continue as a going concern.

 

In view of these matters, continuation as a going concern is dependent upon several factors, including the availability of debt or equity funding upon terms and conditions acceptable to the Company, and ultimately achieving profitable operations. Management believes that the Company’s business plan provides it with an opportunity to continue as a going concern. However, management cannot provide assurance that the Company will meet its objectives and be able to continue in operation.

 

The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

 

NOTE 3. CURRENT LOAN RECEIVABLE

 

During July and August 2024, the Company loaned $814,847 (RMB 5,800,000) to an unrelated party at a 3% interest rate, maturing within 12 months.

 

NOTE 4. RELATED PARTY BALANCEAND NON-INTEREST-BEARING PAYABLE

 

Related Party Balance and Non-Interest-Bearing Payable

 

HFUS had $964 related party receivable as of both October 31, 2024 and July 31, 2024, due from SH Oversea in relation to the disposal consideration.

 

As of October 31, 2024 and July 31, 2024, amounts of $440,084 and $460,189, respectively, are payable to SH Qiaohong. The balances were mainly funding support from SH Qiaohong for operation. The funding support bears no interest and due on demand.

 

HFSH had payable balances to Shanghai Oversea Chinese Culture Media Ltd. (“SH Oversea”), in the amounts of $2,863,349 and $2,822,936 as of October 31, 2024 and July 31, 2024, respectively. The payable is funding support from SH Oversea for operation, bears no interest and due on demand.

 

The Company’s related party relationship with SH Qiaohong and SH Oversea, previously due to shared management with HFSH, ended as of August 15, 2024. Consequently, outstanding balances with these parties are no longer classified as related party receivables or payables but are now recognized as “Non-interest-bearing payable”. For comparative purposes, the related balance as of July 31, 2024, has also been reclassified accordingly.

 

Related Party loans

 

HFUS borrowed in the form of a short-term loan at 5% per annum from a related party, Hartford Hotel Investment Inc., an entity managed by the same management team. $4,206 and $5,264 of interest expenses were recorded during the three months ended October 31, 2024 and 2023, respectively. As of October 31, 2024 and July 31, 2024, the unpaid principal and interest amount of $372,177 and $402,971, respectively, will be due on demand.

 

Since February 2024, HFUS borrowed in form of a short-term loan at an annual rate of 5% from its former primary shareholder, one of its current main shareholders’ relative, a total of $327,400. On April 22, 2024, an amount of $29,022 from the principal was used to offset the profits Mr. Song allegedly earned in violation of Section 16(b) of the Securities Exchange Act. This action was based on the requirement that any profits from such a violation be returned to the Company. During the three months ended October 31, 2024, interest expense amounting to $3,084 was recorded. As of October 31, 2024 and July 31, 2024, the outstanding balance of principal and interest, totaling $304,093 and $174,309, respectively, is payable upon demand.

 

The Company also had related party payable of $72,383 and $71,363 as of October 31, 2024 and July 31, 2024, respectively, represents the unpaid portion of operating advances from its former primary shareholder, one of its current main shareholders’ relative. These advances do not bear interest and are considered due on demand.

 

Other Related Party Transactions

 

The Company has leased approximately 543 square feet (50.4 square meters) of office space in Shanghai from SH Dubian, a company managed by a relative of a major shareholder. The lease term is from February 18, 2024, to February 17, 2026, at a fixed monthly rent of USD638 (RMB 4,600).

 

The Company’s office space in Rosemead, CA, is provided rent-free by a related party, a former primary shareholder and relative of a current major shareholder. The value of this benefit is immaterial and has not been recognized in these financial statements.

 

10
 

 

NOTE 5. ADVANCE TO CONTRACTOR AND CONTRACT LIABILITIES

 

In the advertisement placement services, the Company makes prepayments to the downstream agents or the media platforms (“contractor”) and receives advance payments from the customers. As of October 31, 2024 and July 31, 2024, the Company’s balance sheets reflect $829,377 and $2,422,392, respectively, in prepayments to contractors, categorized as “Advance to contractor” and $504,325 and $1,315,189, respectively, in customer advance payments, recorded under “Contract Liabilities”.

 

NOTE 6. OTHER CURRENT LIABILITIES

 

Other current payable consist as follows:

 SCHEDULE OF OTHER CURRENT PAYABLE  

   October 31, 2024   July 31, 2024 
Taxes payable  $36,944   $275,193 
Payable to service providers   109,583    - 
Accrued payroll   35,748    16,930 
Payable to former owners   285,525    125,729 
Other payables   7,534    43,467 
Other Current Liabilities  $475,334   $461,319 

 

NOTE 7. CONCENTRATION RISK

 

For the three months ended October 31, 2024, four customers accounted for 75% of the Company’s total gross billing. As of October 31, 2024, Nil amount of receivable was outstanding. As of July 31, 2024, the Company had $573,530 outstanding receivables due from two customers. Prepayments received from two customers, which are recorded as contract liabilities, comprised 88% and 73% of total contract liabilities as of October 31, 2024 and July 31, 2024, respectively.

 

For the three months ended October 31, 2024, two contractors accounted for 42% of the Company’s total services acquisition. As of October 31, 2024 and July 31, 2024, the Company had $169,292 and $1,326,907 outstanding payables to two contractors, respectively. As of October 31, 2024 and July 31, 2024, advances made to one contractor amount of 90% and two contractors amount of 70% of the Company’s total advanced payments.

 

In the corresponding three-month period of the prior year, the Company did not participate in advertisement placement services, and no significant customer or vendor concentration risks were identified.

 

NOTE 8. COMMITMENTS AND CONTINGENCIES

 

There has been no material contractual obligations and commitments as of October 31, 2024.

 

NOTE 9. SUBSEQUENT EVENTS

 

In accordance with ASC 855, “Subsequent Events”, the Company has evaluated subsequent events through the date of issuance of these unaudited financial statements and no material subsequent events were noted except the events as disclosed below:

 

Given the prolonged inactivity of both HZWP and SHDZ, the Company entered into agreements, on December 9, 2024, and January 1, 2025, respectively, to transfer 70% ownership of each entity to SH Oversea, with the remaining 30% transfer to an individual. These transfers were executed at no cost, with no significant assets or liabilities exchanged between the parties.

 

11
 

 

Forward-Looking Statements

 

This Form 10-Q contains or incorporates by reference “forward-looking statements,” as that term is used in federal securities laws, about our financial condition, results of operations and business. These statements include, among others:

 

- statements concerning the benefits that we expect will result from our business activities and results of business development that we contemplate or have completed, such as increased revenues; and statements of our expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts. These statements may be made expressly in this document or may be incorporated by reference to other documents that we will file with the SEC. You can find many of these statements by looking for words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions used in this report or incorporated by reference in this report.

 

These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause our actual results to be materially different from any future results expressed or implied in those statements. Because the statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied. We caution you not to put undue reliance on these statements, which speak only as of the date of this report. Further, the information contained in this document or incorporated herein by reference is a statement of our present intention and is based on present facts and assumptions, and may change at any time and without notice, based on changes in such facts or assumptions.

 

Item 2. Management’s Discussion and Analysis or Plan of Operation Overview

 

This discussion updates our business plan for the three-month period ending October 31, 2024. It also analyzes our financial condition on October 31, 2024 and compares it to our financial condition at July 31, 2024. This discussion and analysis should be read in conjunction with our audited financial statements for the year ended July 31, 2024, including footnotes, contained in our Annual Report on Form 10-K, and with the unaudited financial statements for the interim period ended October 31, 2024, including footnotes, which are included in this quarterly report.

 

Overview of the Business

 

Hartford Creative Group, Inc. (Former name Hartford Great Health Corp.) was originally incorporated in the State of Nevada on April 2, 2008 under the name PhotoAmigo, Inc. It changed its name to Hartford Great Health Corp. on August 22, 2018. On May 11, 2024, the Company further changed its name to Hartford Creative Group, Inc.

 

Ability to continue as a “going concern”.

 

The independent registered public accounting firms’ reports on our financial statements as of July 31, 2024, includes a “going concern” explanatory paragraph that describes substantial doubt about the Company’s ability to continue as a going concern. Management’s plans regarding the factors prompting the explanatory paragraph are discussed in the financial statements, including footnotes thereto.

 

12
 

 

Plan of Operation

 

After years of experience in education and hospitality, the Company shifted its focus in January 2024 to social media advertising. On January 10, 2024, HFSH changed its legal name from Shanghai Hartford Health Management, Ltd. to Hartford ZY Culture Media (Shanghai) Co., Ltd., hereon refer to as “HFZY”. On June 18, 2024, the Company successfully completed the acquisition of ShangXing HuoMao Network Technology Ltd. (SXHM). HFZY and SXHM started to deliver media and advertisement services. The pent-up demand from social media influencers’ marketing needs on social media apps lead the Company to seize the opportunity in providing advertisement services. the Company begins to engage in social media advertising business on mainstream social media platforms such as Tik Tok, Toutiao, Kwai, RED, WeChat, and more. As an advertising partner of China’s major social media platforms, it aims to provide customers with vertical integration services from early-stage advertising video creativity, photograph shooting, editing, to advertising operation and management on social media apps. The Company will also gradually launch overseas TikTok advertising campaign, providing social media advertising solutions for domestic Chinese customers to engage in international markets in the United States.

 

During the three months ended October 31, 2024, the Company recognized USD 0.5 million net revenue from the advertisement placement services. The Company provides service to place advertisements. The advertisements are published on the targeted media platforms as determined by the customers. Revenue is recognized at a point in time when the placement of advertisements is completed. As disclosed in Note 1 under category “Revenue Recognition”, the Company is not the principal in executing these transactions. The Company reports the amount received from the customers and the amounts paid to the media platforms or upside agent related to these transactions on a net basis. The Company expects the number of customers to grow and the advertising service revenue will significantly increase in the next few months due to the vast demand in social media advertising services.

 

Based on market research and discussions among the Board and third-party suppliers and experts, the Company has further developed a plan of mini-drama business. The Company is strategically positioned to capture considerable market interest and enhance revenue streams from our innovative mini-drama business. While initial steps toward this ambitious goal have been initiated, it is important to note that the commencement and future success of the mini-drama venture are not yet guaranteed.

 

13
 

 

Results of Operations – Three months ended October 31, 2024 Compared to Three months ended October 31, 2023.

 

The following table presents certain consolidated statement-of-operations information and presentation of that data as a percentage of change from year to year.

 

   For the Three Months ended October 31, 
   2024   2023   Variance 
Revenues  $467,462   $-    100%
Operating cost and expenses:               
Cost of revenue   109,822    -    100%
Selling, general and administrative   165,568    20,192    720%
Total operating cost and expenses   275,390    20,192    1264%
Operating income (loss)   192,072    (20,192)   -1051%
Other income (expenses)   (1,842)   (5,264)   -65%
Income (loss) before income taxes   190,230    (25,456)   -847%
Income tax expense   62,961    -    100%
Net income (loss)   127,269    (25,456)   -600%

 

Revenue: During the three months ended October 31, 2024, we generated $467,462 in revenue primarily from advertising placement services, which we launched in January 2024. No revenue was recognized in the same period of 2023 as we had divested our early childhood education and hospitality services in August 2022

 

Operating Cost and Expenses: Cost of revenue increased to $109,822 in the three months ended October 31, 2024, primarily due to expenses related to designing and channel services. No costs were incurred in the same period of 2023. During the three months ended October 31, 2024, the selling, general and administrative expenses increased to $165,568 compared to $20,192 during the comparable period of 2023. The increase was due to the increase of professional expenses as a result of the expansion of business operation.

 

Other Income (Expense): Other expense, net amount of $1,842 for the three months ended October 31, 2024, compared to Other expense, net amount of $5,264 for the corresponding period of 2023. Other expenses for the three months ended October 31, 2024, primarily consisted of net interest expense, resulting from interest payments on loans from related parties, offset by interest income from current loan receivables. In the same period of 2023, other expenses were primarily due to interest expense.

 

Income tax expense: The income tax recognized for the three months ended October 31, 2024, resulted from the income tax from the operating income in China.

 

Net Income (Loss): We recorded a net income of $127,269 or $0.00 per share for the three months ended October 31, 2024, compared to a net loss of $25,456 or $0.00 per share for the same period of 2023, due to the factors discussed above.

 

14
 

 

Liquidity and Capital Resources

 

As of October 31, 2024, we had a working capital deficit of $3,482,524 comprised of current assets of $1,723,082 and current liabilities of $5,205,606. This represents a decrease of $83,441 in the working capital deficit from the July 31, 2024 amount of $3,565,965 . We had an accumulated deficit of $5,783,574 compared to $5,910,843 at the previous year end. To date, we have funded our operations through short-term debt and equity financing.

 

As of October 31, 2024, the Company has issued a total of 100,108,000 shares of common stock. On December 11, 2018, 96,090,000 shares of common stock were issued at the price of $0.02 per share to raise an additional $1,921,800 in capital. On November 24, 2020, the Company issued additional 1,000,000 shares of common stock to a significant shareholder of the Company at $0.02 per share.

 

We will seek additional financing in the form of debt or equity. There is no assurance that we will be able to obtain any needed financing on favorable terms, or at all, or that we will find qualified purchasers for the sale of our stock. If we are unable to raise sufficient capital, we will be required to delay or forego some of our business plan, which would have a material adverse effect on our anticipated results from operations and financial condition. Any sales of our securities would dilute the ownership of our existing investors.

 

Future Capital Expenditures

 

We believe that our funding requirements for the next twelve months will be in excess of $2,000,000. We are currently seeking further funding through related parties’ loan and finance.

 

We are currently engaging consultants to evaluate and facilitate the potential uplisting of the Company’s stock from the OTC market to the Nasdaq exchange. If all conditions align favorably, the Company intends to secure financing through either debt or equity. The funds raised will be allocated to cover the expenses associated with the uplisting process.

 

Cash Flows – Three months ended October 31, 2024 Compared to Three months ended October 31, 2023

 

Operating Activities

 

Cash provided by operating activities was $348,049 for the three months ended October 31, 2024 as compared to $20,113 cash used in the operations for the same period in 2023. During the three months ended October 31, 2024, we recorded net income of $127,269 , a $1,631,243 decrease of advance to contract, a $583,009 decrease of accounts receivable and $582 decrease of prepaid and other current receivable, offset by a $1,179,176 decrease of accounts payable and a $831,501decrease of contract liabilities.

 

During the three months ended October 31, 2023, we recorded net loss of $25,456 offset by a $5,264 increase of related party payables.

 

Investing activities

 

The cash used in investing activities was $675,826 for the three months ended October 31, 2024 as a result of short term loan receivables with 3% interest rate, matured in July and August, 2025. Nil of investing activities occurred during the three months ended October 31, 2023

 

Financing activities

 

Cash provided by financing activities was $64,949 for the three months ended October 31, 2024, primarily due to the proceeds of notes payable of $126,700 and offset by the repayment of notes payable $35,000 and repayment of non-interest-bearing payable of $26,751. In the same period of 2023, cash provided by financing activities was $28,000, primarily from proceeds of notes payable and funding support from related parties. The notes payable was borrowed from related parties with 5% annual interest rate. See Note 4 Related Party Transactions.

 

15
 

 

Off-Balance Sheet Arrangements

 

As of and subsequent to October 31, 2024, we have no off-balance sheet arrangements.

 

Contractual Commitments

 

As of October 31, 2024, we don’t have material contractual commitments.

 

Critical Accounting Policies

 

There have been no other changes in our critical accounting policies since our most recent audit dated July 31, 2024.

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

An evaluation was performed under the supervision of our management, including our Chief Executive Officer and Interim Chief Financial Officer (principal financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report. Based on that evaluation, our management, including our Chief Executive Officer and Interim Chief Financial Officer, concluded that, as of October 31, 2024, our disclosure controls and procedures were not effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms due to material weaknesses in our internal controls described below.

 

Management’s Report on Internal Control over Financial Reporting

 

Management’s assessment identified several material weaknesses in our internal control over financial reporting. These material weaknesses include the following:

 

● Lack of proper authorization and approval procedures on significant business transactions.
   
● Lack of competence accounting personnel at entity level and proper segregation of duties implemented.

 

Changes in Internal Control

 

During the three months ended October 31, 2024, there has been no change in internal control within the Company.

 

16
 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings .

 

We were not subject to any other legal proceedings during the three months ended October 31, 2024, and are not currently subject to any legal proceedings, and to the best of our knowledge, no such proceeding is threatened, the results of which would have a material impact on our results of operation or financial condition. Nor, to the best of our knowledge, are any of our officers or directors involved in any legal proceedings in which we are an adverse party.

 

Item 1A. Risk Factors.

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

None

 

Item 3. Defaults Upon Senior Securities.

 

None

 

Item 4. Mine Safety Disclosures

 

Not applicable to our Company.

 

Item 5. Other Information

 

Not applicable to our Company.

 

Item 6. Exhibits.

 

The following exhibits are filed with or incorporated by referenced in this report:

 

Exhibit Index

 

Exhibit No.   Description
3.1   Certificate of Amendment to Articles of Incorporation filed with the Nevada Secretary of State on May 11, 2024
31.1*   Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Sheng-Yih Chang.
31.2*   Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Lili Dai
32.1*   Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Sheng-Yih Chang and Lili Dai
101   Interactive Data Files
101.INS   Inline XBRL Instance Document
101.SCH   Inline XBRL Taxonomy Extension Schema Document
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

17
 

 

SIGNATURES

 

In accordance with Section 13 or 15(d) of the Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  HARTFORD CREATIVE GROUP, INC.
     
Date: January 16, 2025 By: /s/ Sheng-Yih Chang
    Sheng-Yih Chang
    Chief Executive Officer

 

18

 

 

Exhibit 31.1

 

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934

 

I, Sheng-Yih Chang, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q/A of HARTFORD CREATIVE GROUP, INC.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  (b) Designed such internal control over financing reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: January 16, 2025

 

  /s/ Sheng-Yih Chang
  Sheng-Yih Chang
  Chief Executive Officer

 

 

 

 

Exhibit 31.2

 

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934

 

I, Lili Dai, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q/A of Hartford Creative Group, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)Designed such internal control over financing reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: January 16, 2025

 

  /s/ Lili Dai
  Lili Dai
  Interim Chief Financial Officer

 

 

 

 

Exhibit 32.1

 

Certification of Periodic Financial Report by the Chief Executive Officer and

Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

Solely for the purposes of complying with 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, we, the undersigned Chief Executive Officer and Chief Financial Officer of Hartford Creative Group, Inc. (the “Company”), hereby certify, based on our knowledge, that the Quarterly Report on Form 10-Q/A of the Company for the quarter ended October 31, 2024 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: January 16, 2025 /s/ SHENG-YIH CHANG
  Sheng-Yih Chang
  Chief Executive Officer
   
Date: January 16, 2025 /s/ Lili Dai
  Lili Dai
  Interim Chief Financial Officer

 

 

 

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Cover - shares
 3 Months Ended
Oct. 31, 2024
Jan. 16, 2025
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Amendment Description This Amendment No. 1 to our Quarterly Report on Form 10-Q for the period from August 1, 2024, to October 31, 2024, which was originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 16, 2024 (the “Original Filing”), is being submitted for the following purpose:  (a)To update Note 9, “Subsequent Events to Condensed Consolidated Financial Statements (unaudited),” in Part I of Form 10-Q, by adding the disposal of the non-operating entity, SHDZ, as a subsequent event.   Except as described above, this Amendment No. 1 does not amend, modify, or otherwise update any other information in the Original Filing and does not reflect other events occurring after the filing of the Original Filing.    
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Document Period End Date Oct. 31, 2024  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2024  
Current Fiscal Year End Date --07-31  
Entity File Number 000-54439  
Entity Registrant Name HARTFORD CREATIVE GROUP, INC.  
Entity Central Index Key 0001482554  
Entity Tax Identification Number 51-0675116  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 8832 Glendon Way  
Entity Address, City or Town Rosemead  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 91770  
City Area Code (626)  
Local Phone Number 321-1915  
Title of 12(b) Security Common stock, par value $0.001 par value  
Trading Symbol HFUS  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
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Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   100,108,000
Entity Information, Former Legal or Registered Name HARTFORD GREAT HEALTH CORP.  
v3.24.4
Condensed Consolidated Balance Sheets - USD ($)
Oct. 31, 2024
Jul. 31, 2024
Current Assets    
Cash and cash equivalents $ 52,895 $ 310,763
Accounts receivable 573,530
Advance to contractor 829,377 2,422,392
Current loan receivable 814,847 138,577
Prepaid and Other current receivables 25,963 26,483
Total Current Assets 1,723,082 3,471,745
Non-current Assets    
Property and equipment, net 595 587
ROU assets-operating lease 9,105 10,771
Deferred tax assets 204,901 204,901
Total Non-current Assets 214,601 216,259
TOTAL ASSETS 1,937,683 3,688,004
Current Liabilities    
Accounts payable 169,292 1,326,907
Contract liabilities 504,325 1,315,189
Current operating Lease liabilities 5,533 3,491
Other current payable 475,334 461,319
Non-interest-bearing payable [1] 3,302,469 3,282,161
Total Current Liabilities 5,205,606 7,037,710
Lease liabilities, noncurrent 1,923 3,768
TOTAL LIABILITIES 5,207,529 7,041,478
Commitments and contingencies
Stockholders’ Equity (Deficit)    
Preferred stock - $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding
Common stock - $0.001 par value, 300,000,000 shares authorized, 100,108,000 shares outstanding at both of October 31, 2024 and July 31, 2024. 100,108 100,108
Additional paid-in capital 2,173,521 2,173,521
Accumulated deficit (5,783,574) (5,910,843)
Accumulated other comprehensive income 240,099 283,740
Total Stockholders’ Deficit (3,269,846) (3,353,474)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT 1,937,683 3,688,004
Related Party [Member]    
Current Assets    
Related party receivable [1]
Current Liabilities    
Related party loan and payables [1] $ 748,653 $ 648,643
[1] Balances reclassified due to related party relationship changes. See Note 4.
v3.24.4
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Oct. 31, 2024
Jul. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 300,000,000 300,000,000
Common stock, shares outstanding 100,108,000 100,108,000
v3.24.4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
 3 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Income Statement [Abstract]    
Revenue $ 467,462
Operating cost and expenses:    
Cost of revenue 109,822
Selling, general and administrative expenses 165,568 20,192
Total operating cost and expenses 275,390 20,192
Operating income (loss) 192,072 (20,192)
Other expense    
Interest expense, net (1,402) (5,264)
Other expense, net (440)  
Other expense, net (1,842) (5,264)
Income (loss) before income taxes 190,230 (25,456)
Income Tax Expense 62,961
Net income (loss) $ 127,269 $ (25,456)
Net income per common share:    
Basic $ 0.00 $ 0.00
Diluted $ 0.00 $ 0.00
Weighted average shares outstanding:    
Basic 100,108,000 100,108,000
Diluted 100,108,000 100,108,000
v3.24.4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
 3 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Income Statement [Abstract]    
Net income (loss) $ 127,269 $ (25,456)
Other Comprehensive (loss) income, net of income tax    
Foreign currency translation adjustments (43,641) 97,167
Total Other Comprehensive (loss) Income (43,641) 97,167
Total Comprehensive income $ 83,628 $ 71,711
v3.24.4
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Total
Balance at Jul. 31, 2023 $ 100,108 $ 2,173,521 $ (7,003,717) $ 240,382 $ (4,489,706)
Balance, shares at Jul. 31, 2023 100,108,000        
Net income (loss) (25,456) (25,456)
Foreign currency translation adjustment 97,167 97,167
Balance at Oct. 31, 2023 $ 100,108 2,173,521 (7,029,173) 337,549 (4,417,995)
Balance, shares at Oct. 31, 2023 100,108,000        
Balance at Jul. 31, 2024 $ 100,108 2,173,521 (5,910,843) 283,740 (3,353,474)
Balance, shares at Jul. 31, 2024 100,108,000        
Net income (loss) 127,269 127,269
Foreign currency translation adjustment (43,641) (43,641)
Balance at Oct. 31, 2024 $ 100,108 $ 2,173,521 $ (5,783,574) $ 240,099 $ (3,269,846)
Balance, shares at Oct. 31, 2024 100,108,000        
v3.24.4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 3 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Cash flows from operating activities:    
Net income $ 127,269 $ (25,456)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation 79
Changes in operating assets and liabilities:    
Accounts receivable, net 583,009
Prepaid and Other current receivables 582
Advance to contractor 1,631,243
Related party receivables and payables 7,289 5,264
Contract liabilities (831,501)
Accounts payable (1,179,176)
Other current payable 9,412
Operating lease assets and liabilities (78)
Net cash provided by (used in) operating activities 348,049 (20,113)
Cash flows from investing activities:    
Current loan receivable (675,826)
Net cash used in investing activities (675,826)
Cash flows from financing activities:    
Proceeds of related party notes payable 126,700 28,000
Repayment of related party notes payable (35,000)
Repayment of non-interest-bearing payable (26,751)
Net cash provided by financing activities 64,949 28,000
Effect of exchange rate changes on cash 4,960 (53)
Net change in Cash, cash equivalents and restricted cash (257,868) 7,834
Cash, cash equivalents and restricted cash at beginning of period 310,763 5,793
Cash, cash equivalents and restricted cash at end of period 52,895 13,627
Supplemental Cash Flow Information    
Interest paid
Income taxes paid $ 237,982
v3.24.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Oct. 31, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. The financial statements and notes are the responsibility of the Company’s management. These accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied in the preparation of the financial statements. This disclosure should be read in conjunction with our audited financial statements for the year ended July 31, 2024, including footnotes, contained in our Annual Report on Form 10-K.

 

Organization

 

Hartford Creative Group, Inc. (Formerly name Hartford Great Health Corp.) was originally incorporated in the State of Nevada on April 2, 2008 under the name PhotoAmigo, Inc. It changed its name to Hartford Great Health Corp. on August 22, 2018. On May 11, 2024, the Company further changed its name to Hartford Creative Group, Inc.

 

Through its wholly owned subsidiary - Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF) and HZHF’s 60 percent owned subsidiary - Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”), and through Shanghai Hartford Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), the Company engages in hospitality industry in China. Qiao Garden Int’l Travel was disposed on December 31, 2020.

 

The Company engaged in early childhood education industry at Hartford International Education Technology Co., Ltd (“HF Int’l Education”) and its subsidiaries setup or acquired.

 

Impacted by the government regulation implemented in education industry and the restrictions posted by the Chinese government to control the pandemic in China since 2021, to avoid further operation losses, on August 1, 2022, HFSH entered a contract with a related party, Shanghai Oversea Chinese Culture Media Ltd. (“SH Oversea”), to sell 90 percent ownership of HF Int’l Education and its subsidiaries for $900 (RMB 5,850). On August 1, 2022, HFUS entered a contract with SH Oversea and another individual, to sell 100 percent ownership of HZHF and its subsidiaries for $1,000 (RMB 6,500).

 

Beginning in January 2024, the Company embarked on the development of a new business within the Media and Marketing sector. As part of its rebranding strategy, on January 01, 2024, HFSH changed its legal name from Shanghai Hartford Health Management, Ltd. to Shanghai Hartford ZY Culture Media Ltd. (“HFZY”). HFZY mainly engages in social media advertising business on mainstream social media platforms such as Tik Tok, Toutiao, Kwai, RED, WeChat, and more. As an advertising partner of China’s major social media platforms, the Company relies on a high-quality and professional media strategy execution team and network to help customers use the massive media resources of different types of social media platforms and receive competitive prices due to large-scale media resource procurement to purchase media resources. It aims to become one of the total solution advertising providers for domestic social media industry in China and provide customers with vertical integration services from early-stage advertising video creativity, shooting, editing, to advertising operation and management on social media apps. Further expanding its business operations, HFUS reacquired full ownership of HZHF at no cost on April 1, 2024, and subsequently rebranded it as Hangzhou Hartford WP Culture Media Ltd. (“HZWP”). On April 11, 2024, HFUS continued its growth trajectory by establishing a new subsidiary named Shanghai DZ Culture Media Ltd. (“SHDZ”). On June 18, 2024, HFUS successfully completed the acquisition of ShangXing HuoMao Network Technology Ltd. (SXHM). The acquisition was executed at no cost, and there were no significant assets or liabilities exchanged during the transfer.

 

Basis of Presentation

 

The consolidated financial statements include the accounts of Hartford Creative Group, Inc., its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests of the consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in the consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

 

Reclassification

 

Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no impact on the Company’s net income, net cash flows, or stockholders’ equity.

 

 

Revenue Recognition

 

The Company follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy a performance obligation. Billings to customers for which services are not rendered are considered deferred revenue. The Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products or providing services to a customer. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms.

 

The Company is developing business plan and aim to provide customers with vertical integration services from early-stage advertising video creativity, shooting, editing, to advertising operation and management on social media apps. Most of the advertising revenue will be generated by placing ad products on Tik Tok, Toutiao, Kwai, RED, WeChat, and other third-party affiliated websites and mobile applications. Currently, the Company provides traffic acquisition service to place the advertisements produced by the advertisers. The advertisements are published on the targeted media platforms as determined by the customers. Besides, the Company provides advertisements account charging service to customers upon the request from customers. Revenue is recognized at a point in time when the distribution of advertisements and charging of advertisement accounts are completed upon the completion confirmation from customers and suppliers.

 

During the three months ended October 31, 2024, the Company has provided advertising placement services to 15 customers and received approximately RMB 34.4 million (USD 4.8 million) as advanced payment from these customers. The Company also acquired advertising placement services from 28 suppliers and prepaid RMB 29.4 million (USD 4.1 million). During the three months ended October 31, 2024, the Company recognized USD 0.5 million revenue from the advertisement placement services. The advertisements are published on the targeted media platforms as determined by the customers. The Company is not the principal in this arrangement as the Company does not control the specified service (i.e., the traffic) before that service is delivered to the customer, because (i) it is the targeted media platform, rather than the Company, who is primarily responsible for providing the media publishing service; (ii) the media platforms are identified and determined by the customers, rather than the Company, and the Company does not commit to acquire the traffic before transferring to the customers. Therefore, the Company is not the principal in executing these transactions. The Company reports the amount received from the customers and the amounts paid to the media suppliers related to these transactions on a net basis.

 

In the comparable period in prior year, impacted by the Covid-19 pandemic and Chinese regulation on education industry, both early childhood education services and hospitality services have been sold on August 1, 2022, and the advertising revenue has not started until January 2024. Thus, there was no revenue recognized for the three months ended October 31, 2023.

 

Segment Reporting

 

The Company uses the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining the Company’s reportable segments. During the reporting periods, the Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker regularly reviews consolidated assets and consolidated operating results prepared under U.S. GAAP for the enterprise as a whole when making decisions about allocating resources and assessing performance of the Company. Consequently, management has determined that the Company only has one operating segment as defined under ASC 280-10-50.

 

Recent Accounting Pronouncements.

 

Recently not yet adopted accounting pronouncements

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The new guidance requires enhanced disclosures about income tax expenses. The Company is required to adopt this guidance in the first quarter of the fiscal year 2026. Early adoption is permitted on a prospective basis. We are currently evaluating the impact of this ASU on our annual income tax disclosures.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The new guidance requires enhanced disclosures about significant segment expenses. The Company is required to adopt this guidance for its annual reporting in fiscal year 2025 and for interim period reporting beginning the first quarter of fiscal year 2026 on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this ASU on our segment disclosures.

 

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.

 

 
v3.24.4
GOING CONCERN
 3 Months Ended
Oct. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

NOTE 2. GOING CONCERN

 

The accompanying financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. As of October 31, 2024, The Company had a working capital deficit of $3,482,524 and an accumulated deficit of $5,783,574. These conditions raise substantial doubt about the ability of Hartford Creative Group, Inc. to continue as a going concern.

 

In view of these matters, continuation as a going concern is dependent upon several factors, including the availability of debt or equity funding upon terms and conditions acceptable to the Company, and ultimately achieving profitable operations. Management believes that the Company’s business plan provides it with an opportunity to continue as a going concern. However, management cannot provide assurance that the Company will meet its objectives and be able to continue in operation.

 

The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

 
v3.24.4
CURRENT LOAN RECEIVABLE
 3 Months Ended
Oct. 31, 2024
Receivables [Abstract]  
CURRENT LOAN RECEIVABLE

NOTE 3. CURRENT LOAN RECEIVABLE

 

During July and August 2024, the Company loaned $814,847 (RMB 5,800,000) to an unrelated party at a 3% interest rate, maturing within 12 months.

 
v3.24.4
RELATED PARTY BALANCEAND NON-INTEREST-BEARING PAYABLE
 3 Months Ended
Oct. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY BALANCEAND NON-INTEREST-BEARING PAYABLE

NOTE 4. RELATED PARTY BALANCEAND NON-INTEREST-BEARING PAYABLE

 

Related Party Balance and Non-Interest-Bearing Payable

 

HFUS had $964 related party receivable as of both October 31, 2024 and July 31, 2024, due from SH Oversea in relation to the disposal consideration.

 

As of October 31, 2024 and July 31, 2024, amounts of $440,084 and $460,189, respectively, are payable to SH Qiaohong. The balances were mainly funding support from SH Qiaohong for operation. The funding support bears no interest and due on demand.

 

HFSH had payable balances to Shanghai Oversea Chinese Culture Media Ltd. (“SH Oversea”), in the amounts of $2,863,349 and $2,822,936 as of October 31, 2024 and July 31, 2024, respectively. The payable is funding support from SH Oversea for operation, bears no interest and due on demand.

 

The Company’s related party relationship with SH Qiaohong and SH Oversea, previously due to shared management with HFSH, ended as of August 15, 2024. Consequently, outstanding balances with these parties are no longer classified as related party receivables or payables but are now recognized as “Non-interest-bearing payable”. For comparative purposes, the related balance as of July 31, 2024, has also been reclassified accordingly.

 

Related Party loans

 

HFUS borrowed in the form of a short-term loan at 5% per annum from a related party, Hartford Hotel Investment Inc., an entity managed by the same management team. $4,206 and $5,264 of interest expenses were recorded during the three months ended October 31, 2024 and 2023, respectively. As of October 31, 2024 and July 31, 2024, the unpaid principal and interest amount of $372,177 and $402,971, respectively, will be due on demand.

 

Since February 2024, HFUS borrowed in form of a short-term loan at an annual rate of 5% from its former primary shareholder, one of its current main shareholders’ relative, a total of $327,400. On April 22, 2024, an amount of $29,022 from the principal was used to offset the profits Mr. Song allegedly earned in violation of Section 16(b) of the Securities Exchange Act. This action was based on the requirement that any profits from such a violation be returned to the Company. During the three months ended October 31, 2024, interest expense amounting to $3,084 was recorded. As of October 31, 2024 and July 31, 2024, the outstanding balance of principal and interest, totaling $304,093 and $174,309, respectively, is payable upon demand.

 

The Company also had related party payable of $72,383 and $71,363 as of October 31, 2024 and July 31, 2024, respectively, represents the unpaid portion of operating advances from its former primary shareholder, one of its current main shareholders’ relative. These advances do not bear interest and are considered due on demand.

 

Other Related Party Transactions

 

The Company has leased approximately 543 square feet (50.4 square meters) of office space in Shanghai from SH Dubian, a company managed by a relative of a major shareholder. The lease term is from February 18, 2024, to February 17, 2026, at a fixed monthly rent of USD638 (RMB 4,600).

 

The Company’s office space in Rosemead, CA, is provided rent-free by a related party, a former primary shareholder and relative of a current major shareholder. The value of this benefit is immaterial and has not been recognized in these financial statements.

 

 
v3.24.4
ADVANCE TO CONTRACTOR AND CONTRACT LIABILITIES
 3 Months Ended
Oct. 31, 2024
Advance To Contractor And Contract Liabilities  
ADVANCE TO CONTRACTOR AND CONTRACT LIABILITIES

NOTE 5. ADVANCE TO CONTRACTOR AND CONTRACT LIABILITIES

 

In the advertisement placement services, the Company makes prepayments to the downstream agents or the media platforms (“contractor”) and receives advance payments from the customers. As of October 31, 2024 and July 31, 2024, the Company’s balance sheets reflect $829,377 and $2,422,392, respectively, in prepayments to contractors, categorized as “Advance to contractor” and $504,325 and $1,315,189, respectively, in customer advance payments, recorded under “Contract Liabilities”.

 
v3.24.4
OTHER CURRENT LIABILITIES
 3 Months Ended
Oct. 31, 2024
Other Liabilities Disclosure [Abstract]  
OTHER CURRENT LIABILITIES

NOTE 6. OTHER CURRENT LIABILITIES

 

Other current payable consist as follows:

 SCHEDULE OF OTHER CURRENT PAYABLE  

   October 31, 2024   July 31, 2024 
Taxes payable  $36,944   $275,193 
Payable to service providers   109,583    - 
Accrued payroll   35,748    16,930 
Payable to former owners   285,525    125,729 
Other payables   7,534    43,467 
Other Current Liabilities  $475,334   $461,319 

 
v3.24.4
CONCENTRATION RISK
 3 Months Ended
Oct. 31, 2024
Risks and Uncertainties [Abstract]  
CONCENTRATION RISK

NOTE 7. CONCENTRATION RISK

 

For the three months ended October 31, 2024, four customers accounted for 75% of the Company’s total gross billing. As of October 31, 2024, Nil amount of receivable was outstanding. As of July 31, 2024, the Company had $573,530 outstanding receivables due from two customers. Prepayments received from two customers, which are recorded as contract liabilities, comprised 88% and 73% of total contract liabilities as of October 31, 2024 and July 31, 2024, respectively.

 

For the three months ended October 31, 2024, two contractors accounted for 42% of the Company’s total services acquisition. As of October 31, 2024 and July 31, 2024, the Company had $169,292 and $1,326,907 outstanding payables to two contractors, respectively. As of October 31, 2024 and July 31, 2024, advances made to one contractor amount of 90% and two contractors amount of 70% of the Company’s total advanced payments.

 

In the corresponding three-month period of the prior year, the Company did not participate in advertisement placement services, and no significant customer or vendor concentration risks were identified.

 
v3.24.4
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Oct. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 8. COMMITMENTS AND CONTINGENCIES

 

There has been no material contractual obligations and commitments as of October 31, 2024.

 
v3.24.4
SUBSEQUENT EVENTS
 3 Months Ended
Oct. 31, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 9. SUBSEQUENT EVENTS

 

In accordance with ASC 855, “Subsequent Events”, the Company has evaluated subsequent events through the date of issuance of these unaudited financial statements and no material subsequent events were noted except the events as disclosed below:

 

Given the prolonged inactivity of both HZWP and SHDZ, the Company entered into agreements, on December 9, 2024, and January 1, 2025, respectively, to transfer 70% ownership of each entity to SH Oversea, with the remaining 30% transfer to an individual. These transfers were executed at no cost, with no significant assets or liabilities exchanged between the parties.
v3.24.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Oct. 31, 2024
Accounting Policies [Abstract]  
Organization

Organization

 

Hartford Creative Group, Inc. (Formerly name Hartford Great Health Corp.) was originally incorporated in the State of Nevada on April 2, 2008 under the name PhotoAmigo, Inc. It changed its name to Hartford Great Health Corp. on August 22, 2018. On May 11, 2024, the Company further changed its name to Hartford Creative Group, Inc.

 

Through its wholly owned subsidiary - Hangzhou Hartford Comprehensive Health Management, Ltd (“HZHF) and HZHF’s 60 percent owned subsidiary - Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. (“HZLJ”), and through Shanghai Hartford Health Management, Ltd. (“HFSH”) and its 90 percent owned subsidiary - Shanghai Qiao Garden International Travel Agency (“Qiao Garden Int’l Travel”), the Company engages in hospitality industry in China. Qiao Garden Int’l Travel was disposed on December 31, 2020.

 

The Company engaged in early childhood education industry at Hartford International Education Technology Co., Ltd (“HF Int’l Education”) and its subsidiaries setup or acquired.

 

Impacted by the government regulation implemented in education industry and the restrictions posted by the Chinese government to control the pandemic in China since 2021, to avoid further operation losses, on August 1, 2022, HFSH entered a contract with a related party, Shanghai Oversea Chinese Culture Media Ltd. (“SH Oversea”), to sell 90 percent ownership of HF Int’l Education and its subsidiaries for $900 (RMB 5,850). On August 1, 2022, HFUS entered a contract with SH Oversea and another individual, to sell 100 percent ownership of HZHF and its subsidiaries for $1,000 (RMB 6,500).

 

Beginning in January 2024, the Company embarked on the development of a new business within the Media and Marketing sector. As part of its rebranding strategy, on January 01, 2024, HFSH changed its legal name from Shanghai Hartford Health Management, Ltd. to Shanghai Hartford ZY Culture Media Ltd. (“HFZY”). HFZY mainly engages in social media advertising business on mainstream social media platforms such as Tik Tok, Toutiao, Kwai, RED, WeChat, and more. As an advertising partner of China’s major social media platforms, the Company relies on a high-quality and professional media strategy execution team and network to help customers use the massive media resources of different types of social media platforms and receive competitive prices due to large-scale media resource procurement to purchase media resources. It aims to become one of the total solution advertising providers for domestic social media industry in China and provide customers with vertical integration services from early-stage advertising video creativity, shooting, editing, to advertising operation and management on social media apps. Further expanding its business operations, HFUS reacquired full ownership of HZHF at no cost on April 1, 2024, and subsequently rebranded it as Hangzhou Hartford WP Culture Media Ltd. (“HZWP”). On April 11, 2024, HFUS continued its growth trajectory by establishing a new subsidiary named Shanghai DZ Culture Media Ltd. (“SHDZ”). On June 18, 2024, HFUS successfully completed the acquisition of ShangXing HuoMao Network Technology Ltd. (SXHM). The acquisition was executed at no cost, and there were no significant assets or liabilities exchanged during the transfer.

 
Basis of Presentation

Basis of Presentation

 

The consolidated financial statements include the accounts of Hartford Creative Group, Inc., its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests of the consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in the consolidation.

 
Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

 
Reclassification

Reclassification

 

Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no impact on the Company’s net income, net cash flows, or stockholders’ equity.

 

 
Revenue Recognition

Revenue Recognition

 

The Company follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy a performance obligation. Billings to customers for which services are not rendered are considered deferred revenue. The Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products or providing services to a customer. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms.

 

The Company is developing business plan and aim to provide customers with vertical integration services from early-stage advertising video creativity, shooting, editing, to advertising operation and management on social media apps. Most of the advertising revenue will be generated by placing ad products on Tik Tok, Toutiao, Kwai, RED, WeChat, and other third-party affiliated websites and mobile applications. Currently, the Company provides traffic acquisition service to place the advertisements produced by the advertisers. The advertisements are published on the targeted media platforms as determined by the customers. Besides, the Company provides advertisements account charging service to customers upon the request from customers. Revenue is recognized at a point in time when the distribution of advertisements and charging of advertisement accounts are completed upon the completion confirmation from customers and suppliers.

 

During the three months ended October 31, 2024, the Company has provided advertising placement services to 15 customers and received approximately RMB 34.4 million (USD 4.8 million) as advanced payment from these customers. The Company also acquired advertising placement services from 28 suppliers and prepaid RMB 29.4 million (USD 4.1 million). During the three months ended October 31, 2024, the Company recognized USD 0.5 million revenue from the advertisement placement services. The advertisements are published on the targeted media platforms as determined by the customers. The Company is not the principal in this arrangement as the Company does not control the specified service (i.e., the traffic) before that service is delivered to the customer, because (i) it is the targeted media platform, rather than the Company, who is primarily responsible for providing the media publishing service; (ii) the media platforms are identified and determined by the customers, rather than the Company, and the Company does not commit to acquire the traffic before transferring to the customers. Therefore, the Company is not the principal in executing these transactions. The Company reports the amount received from the customers and the amounts paid to the media suppliers related to these transactions on a net basis.

 

In the comparable period in prior year, impacted by the Covid-19 pandemic and Chinese regulation on education industry, both early childhood education services and hospitality services have been sold on August 1, 2022, and the advertising revenue has not started until January 2024. Thus, there was no revenue recognized for the three months ended October 31, 2023.

 
Segment Reporting

Segment Reporting

 

The Company uses the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining the Company’s reportable segments. During the reporting periods, the Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker regularly reviews consolidated assets and consolidated operating results prepared under U.S. GAAP for the enterprise as a whole when making decisions about allocating resources and assessing performance of the Company. Consequently, management has determined that the Company only has one operating segment as defined under ASC 280-10-50.

 
Recent Accounting Pronouncements

Recent Accounting Pronouncements.

 

Recently not yet adopted accounting pronouncements

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The new guidance requires enhanced disclosures about income tax expenses. The Company is required to adopt this guidance in the first quarter of the fiscal year 2026. Early adoption is permitted on a prospective basis. We are currently evaluating the impact of this ASU on our annual income tax disclosures.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The new guidance requires enhanced disclosures about significant segment expenses. The Company is required to adopt this guidance for its annual reporting in fiscal year 2025 and for interim period reporting beginning the first quarter of fiscal year 2026 on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this ASU on our segment disclosures.

 

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.
v3.24.4
OTHER CURRENT LIABILITIES (Tables)
 3 Months Ended
Oct. 31, 2024
Other Liabilities Disclosure [Abstract]  
SCHEDULE OF OTHER CURRENT PAYABLE

Other current payable consist as follows:

 SCHEDULE OF OTHER CURRENT PAYABLE  

   October 31, 2024   July 31, 2024 
Taxes payable  $36,944   $275,193 
Payable to service providers   109,583    - 
Accrued payroll   35,748    16,930 
Payable to former owners   285,525    125,729 
Other payables   7,534    43,467 
Other Current Liabilities  $475,334   $461,319 
v3.24.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)
 3 Months Ended
Oct. 31, 2024
USD ($)
Oct. 31, 2024
CNY (¥)
Oct. 31, 2023
USD ($)
Oct. 31, 2024
CNY (¥)
Aug. 01, 2022
USD ($)
Aug. 01, 2022
CNY (¥)
Dec. 31, 2020
Product Information [Line Items]              
Advanced payment from contract customers $ 4,800,000 ¥ 34,400,000          
Prepaid advertising 4,100,000     ¥ 29,400,000      
Revenue from advertisement placement services 467,462          
Advertisement Placement Services [Member]              
Product Information [Line Items]              
Revenue from advertisement placement services $ 500,000            
Shanghai Oversea Chinese Culture Media Ltd [Member] | Discontinued Operations, Disposed of by Sale [Member] | Hartford International Education Technology Co., Ltd [Member]              
Product Information [Line Items]              
Percentage of voting interests sold         90.00% 90.00%  
Sale of business unit, consideration         $ 900 ¥ 5,850  
Shanghai Oversea Chinese Culture Media Ltd [Member] | Discontinued Operations, Disposed of by Sale [Member] | Hangzhou Hartford Comprehensive Health Management Ltd [Member]              
Product Information [Line Items]              
Sale of business unit, consideration         $ 1,000 ¥ 6,500  
Hangzhou Longjing Qiao Fu Vacation Hotel Co., Ltd. [Member]              
Product Information [Line Items]              
Equity ownership percentage             60.00%
Shanghai Qiao Garden International Travel Agency [Member]              
Product Information [Line Items]              
Equity ownership percentage             90.00%
v3.24.4
GOING CONCERN (Details Narrative) - USD ($)
Oct. 31, 2024
Jul. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Working capital deficit $ 3,482,524  
Accumulated deficit $ 5,783,574 $ 5,910,843
v3.24.4
CURRENT LOAN RECEIVABLE (Details Narrative)
 1 Months Ended
Aug. 31, 2024
USD ($)
Jul. 31, 2024
USD ($)
Oct. 31, 2024
USD ($)
Aug. 31, 2024
CNY (¥)
Jul. 31, 2024
CNY (¥)
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Loans   $ 138,577 $ 814,847    
Interest rate 3.00% 3.00%   3.00% 3.00%
Maturity date maturing within 12 months maturing within 12 months      
Loans Receivable [Member]          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Loans $ 814,847 $ 814,847   ¥ 5,800,000 ¥ 5,800,000
v3.24.4
RELATED PARTY BALANCEAND NON-INTEREST-BEARING PAYABLE (Details Narrative)
 3 Months Ended
Feb. 18, 2024
USD ($)
ft²
Feb. 18, 2024
CNY (¥)
ft²
Oct. 31, 2024
USD ($)
Oct. 31, 2023
USD ($)
Aug. 31, 2024
Jul. 31, 2024
USD ($)
Apr. 22, 2024
USD ($)
Feb. 18, 2024
m²
Related Party Transaction [Line Items]                
Related party payables and loans     $ 169,292     $ 1,326,907    
Interest rate         3.00% 3.00%    
Proceeds from related party debt     126,700 $ 28,000        
Lease area 543 543           50.4
Lease term description The lease term is from February 18, 2024, to February 17, 2026 The lease term is from February 18, 2024, to February 17, 2026            
Fixed monthly rent $ 638 ¥ 4,600            
Shanghai Oversea Chinese Culture Media Ltd [Member]                
Related Party Transaction [Line Items]                
Related party receivable     964     $ 964    
Related party payables and loans     2,863,349     2,822,936    
SH Qiahong [Member]                
Related Party Transaction [Line Items]                
Related party payables and loans     $ 440,084     460,189    
Hartford Hotel Investment Inc [Member]                
Related Party Transaction [Line Items]                
Interest rate     5.00%          
Interest expense, related party     $ 4,206 $ 5,264        
Unpaid principal and interest     372,177     402,971    
Mr. Lianyu Song [Member]                
Related Party Transaction [Line Items]                
Related party payables and loans     72,383     71,363    
Interest expense, related party     3,084          
Unpaid principal and interest     $ 304,093     $ 174,309    
Interest rate     5.00%          
Proceeds from related party debt     $ 327,400          
Principal amount to offset profits             $ 29,022  
v3.24.4
ADVANCE TO CONTRACTOR AND CONTRACT LIABILITIES (Details Narrative) - USD ($)
Oct. 31, 2024
Jul. 31, 2024
Advance To Contractor And Contract Liabilities    
Prepayments to contractor $ 829,377 $ 2,422,392
Contract liabilities $ 504,325 $ 1,315,189
v3.24.4
SCHEDULE OF OTHER CURRENT PAYABLE (Details) - USD ($)
Oct. 31, 2024
Jul. 31, 2024
Other Liabilities Disclosure [Abstract]    
Taxes payable $ 36,944 $ 275,193
Payable to service providers 109,583
Accrued payroll 35,748 16,930
Payable to former owners 285,525 125,729
Other payables 7,534 43,467
Other Current Liabilities $ 475,334 $ 461,319
v3.24.4
CONCENTRATION RISK (Details Narrative) - USD ($)
 3 Months Ended 12 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Concentration Risk [Line Items]    
Outstanding receivables $ 573,530
Outstanding payables 169,292 1,326,907
Customer Concentration Risk [Member] | Revenue Benchmark [Member]    
Concentration Risk [Line Items]    
Outstanding receivables  
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Four Customers [Member]    
Concentration Risk [Line Items]    
Concentration risk percentage 75.00%  
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member]    
Concentration Risk [Line Items]    
Outstanding receivables   573,530
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Contractors [Member]    
Concentration Risk [Line Items]    
Concentration risk percentage 42.00%  
Outstanding payables $ 169,292 $ 1,326,907
Customer Concentration Risk [Member] | Contract Liabilities [Member] | Two Customers [Member]    
Concentration Risk [Line Items]    
Concentration risk percentage 88.00% 73.00%
Customer Concentration Risk [Member] | Advanced Payments [Member] | Two Contractors [Member]    
Concentration Risk [Line Items]    
Concentration risk percentage 90.00% 70.00%
v3.24.4
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member]
Jan. 01, 2025
Dec. 09, 2024
Hangzhou Hartford WP Culture Media Ltd [Member]    
Subsequent Event [Line Items]    
Equity ownership percentage   70.00%
Shanghai DZ Culture Media Ltd [Member]    
Subsequent Event [Line Items]    
Equity ownership percentage 70.00%  
Shanghai Oversea Chinese Culture Media Ltd [Member]    
Subsequent Event [Line Items]    
Equity ownership percentage 30.00% 30.00%
Hartford Great Health (PK) (USOTC:HFUS)
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