XT Energy Group, Inc.

CIK:0001472468|SEC Filings

Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Income Statement [Abstract]
Revenue-products	$ 230,459	$ 1,275,268	$ 3,156,482	$ 31,609,400
Revenue-installation of power systems				392,267
Total revenue	230,459	1,275,268	3,156,482	32,001,667
Cost of sales-products	3,362,283	1,157,883	7,744,978	26,961,012
Cost of sales-installation of power systems				360,265
Total cost of sales	3,362,283	1,157,883	7,744,978	27,321,277
Gross (loss) profit	(3,131,824)	117,385	(4,588,496)	4,680,390
Operating expenses:
Selling expenses	6,862	96,272	223,921	826,482
General and administrative expenses	520,677	1,002,250	2,692,847	3,571,431
(Recovery of) provision for doubtful accounts		(1,421)	654,502	(200,057)
Change in estimated contingent liabilities		(177,182)		(21,438)
Impairment of advances to suppliers			538,809
Impairment loss of long-lived assets			4,999,504
Total operating expenses	527,539	919,919	9,109,583	4,176,418
(Loss) income from operations	(3,659,363)	(802,534)	(13,698,079)	503,972
Other income (expenses)
Other expenses, net	(80,284)	(437,338)	(176,669)	(337,089)
Interest income	8,749	5,867	20,164	25,946
Interest expense		(131,888)	(35,853)	(721,216)
Total other expenses, net	(71,535)	(563,359)	(192,358)	(1,032,359)
Loss before income taxes	(3,730,898)	(1,365,893)	(13,890,437)	(528,387)
Income tax benefit (expense)	16,482	36,060	4,498	(473,471)
Loss from continuing operations	(3,714,416)	(1,329,833)	(13,885,939)	(1,001,858)
Discontinued operations:
Income (loss) from discontinued operations, net of applicable income taxes	58,454	1,479,358	(1,950,581)	4,459,636
Loss on sale of discontinued operations, net of applicable income taxes			(454,067)
Income (loss) from discontinued operations, net of applicable income taxes	58,454	1,479,358	(2,404,648)	4,459,636
Net (loss) income	(3,655,962)	149,525	(16,290,587)	3,457,778
Foreign currency translation adjustment	(610,642)	(229,348)	(859,811)	436,071
Total comprehensive (loss) income	(4,266,604)	(79,823)	(17,150,398)	3,893,849
Less: Comprehensive (loss) income attributable to noncontrolling interests	(162,171)	49,325	(1,449,656)	424,769
Comprehensive (loss) income attributable to XT Energy Group, Inc.	$ (4,104,433)	$ (129,148)	$ (15,700,742)	$ 3,469,080
(Loss) earnings per common share - basic and diluted
Continuing operations (in Dollars per share)	$ (0.01)	$ 0.00	$ (0.02)	$ 0.00
Discontinued operations (in Dollars per share)	$ 0.00	$ 0.00	$ 0.00	$ 0.01
Weighted average number of common shares outstanding - basic and diluted (in Shares)	531,042,000	579,808,200	531,042,000	589,497,882
Less: Net (loss) income attributable to noncontrolling interests from continuing operations	$ (162,315)	$ (18,384)	$ (1,377,393)	$ 269,522
Less: Net income (loss) attributable to noncontrolling interests from discontinued operations		76,121	(51,848)	103,202
Net (loss) income attributable to XT Energy Group, Inc.	$ (3,493,647)	$ 91,788	$ (14,861,346)	$ 3,085,054

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Cash flows from operating activities:
Net (loss) income	$ (16,290,587)	$ 3,457,778
Net (loss) income from discontinued operations	(2,404,648)	4,459,636
Net loss from continuing operations	(13,885,939)	(1,001,858)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation expense	179,584	251,346
Amortization expense	42,907	206,948
Amortization of operating lease right-of-use assets	12,887
Amortization of operating lease right-of-use assets - related party	15,747
Allowance for (recovery of) doubtful accounts	654,502	(200,057)
Impairment of inventories	4,747,539
Gain from sales of equipment	(819)	(51,457)
Amortization of debt discount	35,848	378,632
Change in estimated contingent liabilities		(21,438)
Impairment of advances to suppliers	538,809
Impairment loss of long-lived assets	4,999,504
Changes in operating assets and liabilities
Notes receivable	1,113,189	805,684
Accounts receivable	545,805	533,148
Inventories	268,692	(826,757)
Advances to suppliers	1,354,224	(2,021,789)
Contract assets		2,880,832
Prepaid expenses	204,600	(329,918)
Other receivables	303,396	45,325
Accounts payable	(33,449)	(1,977,930)
Accounts payable - related party	(8,530)
Advance from customers	(230,406)	(3,526,654)
Operating lease liabilities	1,958
Operating lease liabilities - related party	(10,683)
Other payables and accrued liabilities	(519,354)	739,873
Income taxes payable	(20,866)	(73,768)
Net cash provided by (used in) operating activities from continuing operations	309,145	(4,189,838)
Net cash (used in) provided by operating activities from discontinued operations	(1,347,934)	9,590,640
Net cash (used in) provided by operating activities	(1,038,789)	5,400,802
Cash flows from investing activities:
Payment to former shareholders on businesses acquired	(399,388)	(9,446,738)
Purchases of property, plant and equipment	(4,773)	(156,674)
Proceeds from disposal of equipment	926
Purchase of short-term investment		(445,448)
Refund of long-term investment		118,655
Refund of short-term investment	427,168
Purchase of intangible assets		(2,083)
Collection of loan receivable		1,757,855
Loan to related party	(640,752)
Net cash used in investing activities from continuing operations	(616,819)	(8,174,433)
Net cash used in investing activities from discontinued operations	(1,962,850)	(2,682,438)
Net cash used in investing activities	(2,579,669)	(10,856,871)
Cash flows from financing activities:
Borrowings from related parties	616,861	1,848,179
Capital contribution from stockholders		30,820,127
Payments of from third party loan		(1,933,641)
Proceeds from related party loans		15,234,747
Payments of related party loans		(35,362,191)
Net cash provided by financing activities from continuing operations	616,861	10,607,221
Net cash provided by (used in) financing activities from discontinued operations	431,440	(4,749,636)
Net cash provided by financing activities	1,048,301	5,857,585
Effect of exchange rate change on cash and restricted cash	(106,051)	20,799
Net change in cash and restricted cash	(2,676,208)	422,315
Cash and restricted cash - beginning of period	5,466,380	14,245,783
Cash and restricted cash - end of period	2,790,172	14,668,098
Less: Cash and restricted cash from discontinued operations	(1,272,220)	(2,016,997)
Cash and restricted cash from continuing operations, end of period	1,517,952	12,651,101
Supplemental disclosure of cash flow information:
Interest paid		299,699
Income tax paid	16,368	1,166,544
Supplemental non-cash information:
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	2,635,069
Operating lease right-of-use assets obtained in exchange for operating lease liabilities of related party	33,823
Unpaid other receivables balance resulted from sale of discontinued operations	9,611,277
Recognition of other payables to former subsidiary upon sale of discontinued operations	479,909
Reclassification of accounts receivable to related party upon change of related party status	17,279
Reclassification of accounts payable to related party upon change of related party status	102,532
Other receivables - related party offset with other payables - related party upon execution of offset agreement	566,805
Loan to third party offset with investment payable		522,998
Other receivables outstanding from sales of equipment		$ 301,205

Unaudited Condensed Consolidated Balance Sheets - USD ($)	Apr. 30, 2020	Jul. 31, 2019
Current assets
Cash	$ 1,517,952	$ 2,279,173
Short-term investment		435,787
Notes receivable	235,224	1,376,785
Accounts receivable, net	145,674	1,391,403
Accounts receivable - related party	17,196
Inventories, net	679,357	5,813,871
Advances to suppliers	1,769,242	3,744,863
Prepaid expenses	625,911	791,813
Other receivables, net	16,644	335,636
Other receivables from sale of discontinued operations	9,564,835
Other receivables - related parties	656,630	6,537
Current assets of discontinued operations	6,689,439	11,861,434
Total current assets	21,918,104	28,037,302
Other assets
Property, plant and equipment, net	133,310	4,755,524
Right-of-use assets	61,754
Right-of-use assets - related party	17,989
Intangible assets, net	756	703,390
Prepaid expenses - non-current	77,748	158,014
Other assets of discontinued operations	23,553,550	30,722,558
Total other assets	23,845,107	36,339,486
Total assets	45,763,211	64,376,788
Current liabilities
Accounts payable	2,378,572	2,577,069
Accounts payable - related parties	102,868	9,554
Advance from customers	2,804,646	3,110,181
Other payables and accrued liabilities	1,867,587	1,946,578
Other payables - related parties and director	6,971,614	6,372,163
Lease liabilities - current	18,115
Lease liabilities - current - related party	23,028
Income taxes payable	523,567	558,011
Current maturities of investment payable	132,972	136,314
Current maturities of investment payable - related parties	110,754	204,648
Current liabilities of discontinued operations	14,379,337	15,051,046
Total current liabilities	29,313,060	29,965,564
Other liabilities
Investment payable - related parties		279,764
Lease liabilities - noncurrent	39,140
Other liabilities of discontinued operations	579,857
Total other liabilities	618,997	279,764
Total liabilities	29,932,057	30,245,328
Commitments and contingencies
Equity
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued and outstanding
Common stock: $0.001 par value, 1,000,000,000 shares authorized, 531,042,000 shares issued and outstanding as of April 30, 2020 and July 31, 2019	531,042	531,042
Additional paid-in capital	40,680,195	40,680,195
Subscription receivable	(250,000)	(250,000)
Statutory reserves	594,321	572,642
Accumulated deficit	(23,175,872)	(8,292,847)
Accumulated other comprehensive loss	(2,265,013)	(1,425,617)
Total XT Energy Group, Inc. common stockholders’ equity	16,114,673	31,815,415
Noncontrolling interests	(283,519)	2,316,045
Total equity	15,831,154	34,131,460
Total liabilities and equity	$ 45,763,211	$ 64,376,788