Selected
Financial Data
The
selected financial information presented below as of and for the periods indicated is derived from our consolidated financial
statements contained elsewhere in this report and should be read in conjunction with those consolidated financial statements.
The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results
could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such
differences include those discussed below and elsewhere in this annual report, particularly in the section entitled “Risk
Factors” found elsewhere in this report.
INCOME STATEMENT DATA
|
|
Year
Ended
30 June 2017
|
|
|
Year
Ended
30 June 2016
|
|
|
Year
Ended
30 June 2015
|
|
Revenue
|
|
$
|
50,000
|
|
|
$
|
Nil
|
|
|
$
|
Nil
|
|
Operating Expenses
|
|
$
|
(41,860
|
)
|
|
$
|
(148,178
|
)
|
|
$
|
(116,098
|
)
|
Net Income (Loss)
|
|
$
|
29,464
|
|
|
$
|
(148,178
|
)
|
|
$
|
(116,098
|
)
|
Net Income (Loss) Per Share
|
|
$
|
0.003
|
|
|
$
|
(0.015
|
)
|
|
$
|
(0.012
|
)
|
Weighted Average Number of Common Shares
Outstanding (basic and diluted)
|
|
|
9,928,890
|
|
|
|
9,909,959
|
|
|
|
9,877,247
|
|
BALANCE SHEET DATA
|
|
As
at 30 June 2017
|
|
|
As
at 30 June 2016
|
|
Working Capital (Deficiency)
|
|
$
|
34,213
|
|
|
$
|
(62,951
|
)
|
Total Assets
|
|
$
|
50,100
|
|
|
$
|
2,649
|
|
Accumulated Deficit
|
|
$
|
(1,061,987
|
)
|
|
$
|
(1,091,451
|
)
|
Shareholders’ Deficiency
|
|
$
|
34,213
|
|
|
$
|
(62,951
|
)
|
Historical
results of operations may differ materially from future results.
This
discussion and analysis should be read in conjunction with the accompanying consolidated financial statements and related notes.
The discussion and analysis of the financial condition and results of operations are based upon the consolidated financial statements,
which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of
financial statements in conformity with accounting principles generally accepted in the United States of America requires the
Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of any contingent
liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. On an on-going
basis the Company reviews its estimates and assumptions. The estimates were based on historical experience and other assumptions
that the Company believes to be reasonable under the circumstances. Actual results are likely to differ from those estimates under
different assumptions or conditions, but the Company does not believe such differences will materially affect our financial position
or results of operations. Critical accounting policies, the policies the Company believes are most important to the presentation
of its financial statements and require the most difficult, subjective and complex judgments are outlined below in ― “Critical
Accounting Policies”.
Explanatory
Note on Consolidated Financial Statements
The
audited consolidated financial statements included in this report have been prepared pursuant to the rules and regulations of
the Securities and Exchange Commission.
Plan
of Operations
On
May 11, 2017, the Company entered into a Memorandum of Understanding for Senior Holiday Service Cooperation with Shanghai Qiao
Garden International Travel Agency (“Travel Agent”), superseded by a Retirement Vacation Services Agreement executed
by the parties on August 25, 2017 (collectively referred to as the “Agreement”). The Company is engaged in the business
of providing hotel rooms at favorable rates to travelers to Los Angeles from China. The Company’s president is a principal
owner and CEO of a brand new hotel in Rosemead, California, and the Company is acting as its agent to procure business from Chinese
tourists and business travelers. Under the Agreement with the Travel Agent, the Travel Agent has agreed to provide no less than
300 retirement vacation clients per year for a minimum hotel stay of 3,000 nights. The Agreement also provides for payment of
a monthly service fee. The Agreement automatically renews on an annual basis unless otherwise terminated by either party in writing.
However, the Company intends to enter into a more permanent agreement in September, 2018. From June 1 through July 31, 2017, the
Company has received approximately $100,000 in revenues in connection with the Agreement. The Company is currently marketing its
hotel travel service to other travel agencies in China and it is also seeking other hotels in Southern California to sign up for
its services.
The
Company believes that with the execution of the Agreement on May 11, 2017 and the commencement of revenues from its travel service
business that it is no longer a “shell” corporation.
In
addition, the Company intends to provide management services to retirement homes, commercial properties and apartment buildings
in the following China cities: Shanghai, Jiangsu, Zhejiang, Hainan and Shenyang.
Limited
Operating History; Need for Additional Capital
In
the notes to the Company’s audited consolidated financial statements as of June 30, 2017, included elsewhere in this Form
10-K, the Company’s auditors included an explanatory paragraph stating that, because the Company had cash of $Nil and incurred
accumulated losses of $1,061,987 for the period from January 21, 2004 (inception) to June 30, 2017, there was substantial doubt
about its ability to continue as a going concern.
There
is limited historical financial information about the Company upon which to base an evaluation of its performance. The Company
shifted its focus to senior housing and retirement services and products in May 2017 and have been operating for a few months.
The Company cannot guarantee it will be successful in its business operations. The Company’s business is subject to risks
inherent in the establishment of a new resource exploration company
,
including limited capital resources, unanticipated
problems relating to exploration and additional costs and expenses that may exceed current estimates. To become profitable the
Company will attempt to implement its plan of operation as detailed above.
Our
cash reserves are not sufficient to meet our obligations for the next twelve-month period. As a result, we will need to seek additional
funding in the near future. We currently do not have a specific plan of how we will obtain such funding. However, we anticipate
that additional funding will be in the form of equity financing from the sale of our common stock. As well, our management is
prepared to provide us with short-term loans.
We
cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock
or through a loan from our directors to meet our obligations over the next twelve months. We do not have any arrangements in place
for any future equity financing.
If
we are unable to arrange additional financing, our business plan will fail and operations will cease.
Results
of Operations for the Year Ending June 30, 2017
Pursuant
to the Agreement with the Travel Agent in May 2017, the Company recorded a revenue of $50,000 for the year ended June 30, 2017.
The $50,000 was received in July 2017.
The
Company’s net income for the year ended June 30, 2017 was $29,464 compared to a net loss of $148,178 for the year ended
June 30, 2016. Contributing to the period over period differences were bank charges and interest of $276 (2016 - $342), filing
and financing fees of $12,325 (2016 - $9,644), legal and accounting fees of $15,934 (2016 - $15,092), management fees of $45,000
(2016 - $60,000), rent of $2,700 (2016 - $3,600), consulting fees of $Nil (2016 - $1,568), mineral property exploration expenditure
of $3,741 (2016 - $Nil), regulatory fees of $12,258 (2016 - $7,500) and travel expenses of $426 (2016 - $Nil).
Also,
during the year ended June 30, 2017, the Company recognized a reversal of income tax penalties of $50,000 and wrote-off $21,324
in accounts payable mostly due to the former officer and a former director. If not for these non-recurring items, the Company
would have reported a loss of $41,860 from the operations. For these reasons our auditors believe that there is substantial doubt
that we will be able to continue as a going concern.
Liquidity
and Capital Resources
At
June 30, 2017, we had cash on hand of $Nil (2016 - $2,649) and liabilities of $15,887 (2016 - $65,600) consisting of accounts
payable and accrued liabilities. In 2016, the Company received an assessment for penalties from the Internal Revenue Service (“IRS”)
regarding failure to file certain supplementary forms for the tax years 2007 to 2011. In 2017, these penalties were reversed by
the IRS.
We
will require additional funding in order to cover all anticipated administration costs and to proceed with the Retirement Vacation
Services Agreement executed on August 25, 2017 and to seek out additional travel agents for similar contracts. The Company also
intends to provide management services to retirement homes, commercial properties and apartment buildings in China, which will
result in higher administrative costs in the future.
Capital
Expenditures
The
Company expended no amounts on capital expenditures for the period from inception to June 30, 2017. At present, there are no transactions
being contemplated by management or the board that would affect the financial condition, results of operations and cash flows
of any asset of the Company.
Off-balance
Sheet Arrangements
The
Company has no off-balance sheet arrangements that would require disclosure.
Critical
Accounting Policies
Our
consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States
of America. Preparing financial statements in accordance with generally accepted accounting principles requires management to
make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the balance sheet dates, and the recognition of revenues and expenses for the reporting periods. These estimates
and assumptions are affected by management’s application of accounting policies.
Basis
of presentation
The
consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted
in the United States of America applicable to exploration stage enterprises, and are expressed in U.S. dollars. The Company’s
fiscal year end is June 30.
Principles
of consolidation
These
consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Dynamic Gravel Holdings
Ltd. (“Dynamic Gravel”), a corporate incorporated in Alberta, Canada, from the date of its incorporation on 21 November
2007 to the date of its dissolution on 27 April 2017. All significant inter-company balances and transactions have been eliminated
upon consolidation.
Cash
and cash equivalents
Cash
and cash equivalents include highly liquid investments with original maturities of three months or less.
Mineral
property costs
The
Company was primarily engaged in the acquisition, exploration and development of mineral properties.
Mineral
property acquisition costs were initially capitalized as tangible assets when purchased. At the end of each fiscal quarter end,
the Company assessed the carrying costs for impairment. If proven and probable reserves were established for a property and it
has been determined that a mineral property can be economically developed, costs were to be amortized using the units-of-production
method over the estimated life of the probable reserve.
Mineral
property exploration costs were expensed as incurred.
Estimated
future removal and site restoration costs, when determinable were provided over the life of proven reserves on a units-of-production
basis. Costs, which include production equipment removal and environmental remediation, were estimated each period by management
based on current regulations, actual expenses incurred, and technology and industry standards. Any charge was included in exploration
expense or the provision for depletion and depreciation during the period and the actual restoration expenditures were charged
to the accumulated provision amounts as incurred.
To
date, the Company has not established any proven or probable reserves on its mineral properties and incurred only acquisition
and exploration costs.
Financial
instruments
The
carrying amounts of cash and accounts payable approximate fair value because of the short maturity of these items. These fair
value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot
be determined with precision. Changes in assumptions could significantly affect these estimates. The Company does not hold or
issue financial instruments for trading purposes, not does it utilize derivative instruments in the management of foreign exchange,
commodity price or interest rate market risks.
Unless
otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit
risk arising from these financial instruments.
Derivative
financial instruments
The
Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact
of foreign currency fluctuations.
Environmental
expenditures
The
operations of the Company have been, and may in the future, be affected from time to time, in varying degrees, by changes in environmental
regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their
overall effect upon the Company vary greatly and are not predictable. The Company’s policy is to meet or, if possible, surpass
standards set by relevant legislation, by application of technically proven and economically feasible measures.
Environmental
expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized
and amortized depending on their future economic benefits. Estimated future reclamation and site restoration costs, when the ultimate
liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation,
net of expected recoveries.
Income
taxes
Deferred
income taxes are reported for timing difference between items of income or expense reported in the consolidated financial statements
and those reported for income tax purposes in accordance with ASC 740, “
Income Taxes
”, which requires the use
of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future
tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases, and for tax loss and credit carry-forwards. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered
or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences
and carry-forwards when realization is more likely than not.
Basic
and diluted loss per share
The
Company computes net loss per share in accordance with ASC 260, “
Earnings per Share
”. ASC 260 requires presentation
of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by
dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator)
during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period using the
treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock
price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or
warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.
Comprehensive
loss
ASC
220, “
Comprehensive Income
”, establishes standards for the reporting and display of comprehensive loss and
its components in the consolidated financial statements. As at June 30, 2016, the Company has no items that represent a comprehensive
loss and, therefore, has not included a schedule of comprehensive loss in the consolidated financial statements.
Segments
of an enterprise and related information
ASC
280, “
Segment Reporting
”, establishes guidance for the way that public companies report information about operating
segments in annual consolidated financial statements and requires reporting of selected information about operating segments in
interim consolidated financial statements issued to the public. It also establishes standards for disclosures regarding products
and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which
separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how
to allocate resources and in assessing performance. The Company has evaluated this Codification and does not believe it is applicable
at this time.
Start-up
expenses
The
Company has adopted ASC 720-15, “
Start-Up Costs
”, which requires that costs associated with start-up activities
be expensed as incurred. Accordingly, start-up costs associated with the Company’s formation have been included in the Company’s
expenses for the period from the date of inception on January 21, 2004 to June 30, 2016.
Foreign
currency translation
The
Company’s functional and reporting currency is in U.S. dollars. The consolidated financial statements of the Company are
translated to U.S. dollars in accordance with ASC 830, “
Foreign Currency Matters
”. Monetary assets and liabilities
denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses
arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination
of income. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to
offset the impact of foreign currency fluctuations.
Use
of estimates
The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues
and expenditures during the reporting period. Actual results could differ from these estimates.
Concentration
of credit risk
The
Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and accounts
receivable. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times,
its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The
Company’s management also routinely assesses the financial strength and credit worthiness of its customers and any parties
to which it extends funds and as such, it believes that any associated credit risk exposures are limited.
Risks
and uncertainties
The
Company operates in the resource exploration industry that is subject to significant risks and uncertainties, including financial,
operational, technological, and other risks associated with operating a resource exploration business, including the potential
risk of business failure.
Comparative
figures
Certain
comparative figures have been adjusted to conform to the current year’s presentation.
Recent
Accounting Pronouncements
In
May 2015, Accounting Standards Update (“ASU”) guidance was issued related to revenue from contracts with customers.
The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures
about revenue recognition. The ASU is effective for annual reporting periods beginning after 15 December 2016, including interim
periods and is to be retrospectively applied. Early adoption is not permitted. The Company is currently evaluating this guidance
and the impact it will have on its Consolidated Financial Statements.
ITEM
7 – CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
As
used herein, the terms “Company,” “our,”, “we,” and “us” refer to Hartford Retirement
Network Corp. (formerly Dynamic Gold Corp.), a Nevada corporation, unless otherwise indicated. In the opinion of management, the
accompanying audited consolidated financial statements included in the Form 10-K reflect all adjustment (consisting only of normal
recurring accruals) necessary for a fair presentation of the results of operations for the period presented. The results of operation
for the years presented are not necessarily indicative of the results to be expected for the future years.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Consolidated
Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Stockholders and Board of Directors of Hartford Retirement Network corp. (formerly Dynamic Gold Corp.):
We
have audited the accompanying consolidated balance sheets of Hartford Retirement Network Corp. (the “Company”) as
at June 30, 2017 and 2016 and the related consolidated statements of operations and deficit, and cash flows, and changes in stockholders’
equity for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of
material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provides a reasonable basis for our opinion.
In
our opinion, based on our audits, these financial statements present fairly, in all material respects, the financial position
of the Company as at June 30, 2017 and 2016 and the results of its operations and its cash flows for the years then ended, in
conformity with accounting principles generally accepted in the United States of America.
The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.
As discussed in Note 1 to the financial statements, to date, the Company has reported losses since inception from operations and
requires additional funds to meet its obligations and fund the costs of its operations. These factors raise substantial doubt
about the Company’s ability to continue as a going concern. Management’s plans in this regard are described in Note
1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
|
DALE
MATHESON CARR-HILTON LABONTE LLP
|
|
CHARTERED
PROFESSIONAL ACCOUNTANTS
|
|
|
Vancouver,
Canada
|
|
September
27, 2017
|
|
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Consolidated
Balance Sheets
(Expressed
in U.S. Dollars)
|
|
As
at
30 June 2017
|
|
|
As
at
30 June 2016
|
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
Cash
|
|
|
-
|
|
|
|
2,649
|
|
Receivable (Note 7)
|
|
|
50,000
|
|
|
|
-
|
|
Prepaid expenses
|
|
|
100
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,100
|
|
|
|
2,649
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
(Notes 4 and 6)
|
|
|
15,887
|
|
|
|
15,600
|
|
Taxes payable
(Note 8)
|
|
|
-
|
|
|
|
50,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,887
|
|
|
|
65,600
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
deficiency
|
|
|
|
|
|
|
|
|
Capital stock (Note
5)
|
|
|
|
|
|
|
|
|
Authorized:
|
|
|
|
|
|
|
|
|
200,000,000 common shares, $0.001 par value
|
|
|
|
|
|
|
|
|
10,000,000 preferred shares, $0.001 par value
|
|
|
|
|
|
|
|
|
Issued and outstanding:
|
|
|
|
|
|
|
|
|
30 June 2017 – 9,945,000 common shares
|
|
|
|
|
|
|
|
|
30 June 2016 – 9,925,000 common shares
|
|
|
9,945
|
|
|
|
9,925
|
|
Additional paid-in
capital
|
|
|
1,086,255
|
|
|
|
1,018,575
|
|
Deficit
|
|
|
(1,061,987
|
)
|
|
|
(1,091,451
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
34,213
|
|
|
|
(62,951
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
50,100
|
|
|
|
2,649
|
|
Nature
and Continuance of Operations
(Note 1), and
Subsequent Events
(Note 11)
On
behalf of the Board:
/s/
Lianyue Song
|
Director
|
|
/s/
Jimmy Zhou
|
Director
|
The
accompanying notes are an integral part of these consolidated financial statements.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Consolidated
Statements of Operations
(Expressed
in U.S. Dollars)
|
|
For
the
year ended
30 June 2017
$
|
|
|
For
the
year ended
30 June 2016
$
|
|
|
For
the
year
ended
30
June 2015
$
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
(Note 7)
|
|
|
50,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank charges and interest
|
|
|
276
|
|
|
|
342
|
|
|
|
305
|
|
Consulting fees
|
|
|
-
|
|
|
|
1,568
|
|
|
|
9,551
|
|
Filing and financing fees
|
|
|
12,325
|
|
|
|
9,644
|
|
|
|
15,494
|
|
Foreign exchange (gain) loss
|
|
|
(1,050
|
)
|
|
|
211
|
|
|
|
(1,353
|
)
|
Income tax penalties (Note 8)
|
|
|
-
|
|
|
|
50,000
|
|
|
|
-
|
|
Legal and accounting
|
|
|
15,934
|
|
|
|
15,092
|
|
|
|
13,600
|
|
Management fees (Notes 6 and 9)
|
|
|
45,000
|
|
|
|
60,000
|
|
|
|
60,000
|
|
Mineral property exploration expenditure
(Note 3)
|
|
|
3,741
|
|
|
|
-
|
|
|
|
-
|
|
Office and miscellaneous
|
|
|
250
|
|
|
|
221
|
|
|
|
100
|
|
Regulatory fees
|
|
|
12,258
|
|
|
|
7,500
|
|
|
|
7,500
|
|
Rent (Notes 6 and 9)
|
|
|
2,700
|
|
|
|
3,600
|
|
|
|
3,600
|
|
Travel
|
|
|
426
|
|
|
|
-
|
|
|
|
7,301
|
|
|
|
|
(91,860
|
)
|
|
|
(148,178
|
)
|
|
|
(116,098
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before other
items
|
|
|
(41,860
|
)
|
|
|
(148,178
|
)
|
|
|
(116,098
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of income tax penalties (Note
8)
|
|
|
50,000
|
|
|
|
-
|
|
|
|
-
|
|
Write-off of
accounts payable (Note 4)
|
|
|
21,324
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) for the year
|
|
|
29,464
|
|
|
|
(148,178
|
)
|
|
|
(116,098
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted income (loss) per common share
|
|
|
0.003
|
|
|
|
(0.015
|
)
|
|
|
(0.012
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
9,928,890
|
|
|
|
9,909,959
|
|
|
|
9,877,247
|
|
The
accompanying notes are an integral part of these consolidated financial statements.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Consolidated
Statements of Cash Flows
(Expressed
in U.S. Dollars)
|
|
For
the
year ended
30 June 2017
$
|
|
|
For
the
year ended
30 June 2016
$
|
|
|
For
the
year ended
30 June 2015
$
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the
year
|
|
|
29,464
|
|
|
|
(148,178
|
)
|
|
|
(116,098
|
)
|
Non-cash items
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions to
capital by related party – expenses
|
|
|
47,700
|
|
|
|
63,600
|
|
|
|
63,600
|
|
Reversal of income
tax penalties
|
|
|
(50,000
|
)
|
|
|
-
|
|
|
|
-
|
|
Write-off of accounts
payable
|
|
|
(21,324
|
)
|
|
|
-
|
|
|
|
-
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
(50,000
|
)
|
|
|
-
|
|
|
|
-
|
|
Prepaid expenses
|
|
|
(100
|
)
|
|
|
-
|
|
|
|
-
|
|
Accounts payable
and accrued liabilities
|
|
|
21,611
|
|
|
|
6,855
|
|
|
|
(226
|
)
|
Increase
in taxes payable
|
|
|
-
|
|
|
|
50,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(22,649
|
)
|
|
|
(27,723
|
)
|
|
|
(52,724
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common
shares for cash
|
|
|
20,000
|
|
|
|
30,000
|
|
|
|
45,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,000
|
|
|
|
30,000
|
|
|
|
45,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash
|
|
|
(2,649
|
)
|
|
|
2,277
|
|
|
|
(7,724
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash,
beginning of year
|
|
|
2,649
|
|
|
|
372
|
|
|
|
8,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash,
end of year
|
|
|
-
|
|
|
|
2,649
|
|
|
|
372
|
|
Supplemental
Disclosures with Respect to Cash Flows
(Note 9)
The
accompanying notes are an integral part of these consolidated financial statements.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Consolidated
Statements of Changes in Stockholders’ Equity
(Expressed
in U.S. Dollars)
|
|
Number
of shares issued
|
|
|
Capital
stock
$
|
|
|
Additional
paid-in capital
$
|
|
|
Deficit,
accumulated during the exploration stage
$
|
|
|
Total
stockholders’ deficiency
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2014
|
|
|
9,850,000
|
|
|
|
9,850
|
|
|
|
816,450
|
|
|
|
(827,175
|
)
|
|
|
(875
|
)
|
Contributions to
capital by related party (Notes 6 and 9)
|
|
|
-
|
|
|
|
-
|
|
|
|
63,600
|
|
|
|
-
|
|
|
|
63,600
|
|
Common shares issued
for cash (Note 5)
|
|
|
45,000
|
|
|
|
45
|
|
|
|
44,955
|
|
|
|
-
|
|
|
|
45,000
|
|
Net
loss for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(116,098
|
)
|
|
|
(116,098
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2015
|
|
|
9,895,000
|
|
|
|
9,895
|
|
|
|
925,005
|
|
|
|
(943,273
|
)
|
|
|
(8,373
|
)
|
Contributions to
capital by related party (Notes 6 and 9)
|
|
|
-
|
|
|
|
-
|
|
|
|
63,600
|
|
|
|
-
|
|
|
|
63,600
|
|
Common shares issued
for cash (Note 5)
|
|
|
30,000
|
|
|
|
30
|
|
|
|
29,970
|
|
|
|
-
|
|
|
|
30,000
|
|
Net
loss for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(148,178
|
)
|
|
|
(148,178
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2016
|
|
|
9,925,000
|
|
|
|
9,925
|
|
|
|
1,018,575
|
|
|
|
(1,091,451
|
)
|
|
|
(62,951
|
)
|
Contributions to
capital by related party (Notes 6 and 9)
|
|
|
-
|
|
|
|
-
|
|
|
|
47,700
|
|
|
|
-
|
|
|
|
47,700
|
|
Common shares issued
for cash (Note 5)
|
|
|
20,000
|
|
|
|
20
|
|
|
|
19,980
|
|
|
|
-
|
|
|
|
20,000
|
|
Net
income for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29,464
|
|
|
|
29,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30
June 2017
|
|
|
9,945,000
|
|
|
|
9,945
|
|
|
|
1,086,255
|
|
|
|
(1,061,987
|
)
|
|
|
34,213
|
|
The
accompanying notes are an integral part of these consolidated financial statements.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Notes
to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
1.
|
NATURE
AND CONTINUANCE OF OPERATIONS
|
Hartford
Retirement Network Corp. (formerly Dynamic Gold Corp.) (the “Company”) was incorporated under the laws of the State
of Nevada on 21 January 2004.
Effective
26 June 2017, the Company changed its name to Hartford Retirement Network Corp. and increased its authorized shares of common
stock, par value $0.001 per share from 75,000,000 to 200,000,000 and authorized 10,000,000 preferred stock, par value $0.001 per
share, with such rights, preferences and limitations as may be set from time to time by resolution of the Board of Directors (Note
5).
These
consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted
in the United States of America (“GAAP”). The Company was in the business of acquiring and exploring mineral properties.
In May 2017, the Company shifted its focus to senior housing and retirement services and products. The Company is devoting all
of its present efforts in establishing a new business.
The
Company’s consolidated financial statements as at 30 June 2017 and for the year then ended have been prepared on a going
concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course
of business. The Company reported an income of $29,464 for the year ended 30 June 2017 (30 June 2016 – loss of $148,178,
30 June 2015 – loss of $116,098) and has a working capital of $34,213 at 30 June 2017 (30 June 2016 – deficit of $62,951).
Management
cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise
additional debt and/or equity capital. Management believes that the Company’s capital resources will not be adequate to
continue operating and maintaining its business strategy for the next 12 months. If the Company is unable to raise additional
capital in the near future, management expects that the Company will need to curtail operations, seek additional capital on less
favorable terms and/or pursue other remedial measures. These consolidated financial statements do not include any adjustments
related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary
should the Company be unable to continue as a going concern.
At
30 June 2017, the Company had an accumulated deficit of $1,061,987 and cash of $Nil. Although management is currently attempting
to implement its new business plan, and is seeking additional sources of equity or debt financing, there is no assurance these
activities will be successful. These factors raise substantial doubt about the ability of the Company to continue as a going concern.
The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Notes
to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
2.
|
SIGNIFICANT
ACCOUNTING POLICIES
|
The
following is a summary of significant accounting policies used in the preparation of these consolidated financial statements.
Basis
of presentation
The
consolidated financial statements of the Company have been prepared in accordance with GAAP and are expressed in U.S. dollars.
The Company’s fiscal year end is 30 June.
Principles
of consolidation
These
consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Dynamic Gravel Holdings
Ltd. (“Dynamic Gravel”), a company incorporated in Alberta, Canada, from the date of its incorporation on 21 November
2007 to the date of its dissolution on 27 April 2017. All inter-company balances and transactions have been eliminated upon consolidation.
Cash
and cash equivalents
Cash
and cash equivalents include highly liquid investments with original maturities of three months or less.
Derivative
financial instruments
The
Company has not, to the date of these consolidated financial statements, entered into derivative instruments.
Mineral
property costs
The
Company was primarily engaged in the acquisition, exploration and development of mineral properties.
Mineral
property acquisition costs were initially capitalized as tangible assets when purchased. At the end of each fiscal quarter end,
the Company assessed the carrying costs for impairment. If proven and probable reserves were established for a property and it
has been determined that a mineral property can be economically developed, costs were to be amortized using the units-of-production
method over the estimated life of the probable reserve.
Mineral
property exploration costs were expensed as incurred.
To
date, the Company has not established any proven or probable reserves on its mineral properties and incurred only acquisition
and exploration costs (Note 3).
Estimated
future removal and site restoration costs, when determinable were provided over the life of proven reserves on a units-of-production
basis. Costs, which include production equipment removal and environmental remediation, were estimated each period by management
based on current regulations, actual expenses incurred, and technology and industry standards. Any charge was included in exploration
expense or the provision for depletion and depreciation during the period and the actual restoration expenditures were charged
to the accumulated provision amounts as incurred.
Environmental
expenditures
The
operations of the Company have been, and may in the future, be affected from time to time, in varying degrees, by changes in environmental
regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their
overall effect upon the Company vary greatly and are not predictable. The Company’s policy is to meet or, if possible, surpass
standards set by relevant legislation, by application of technically proven and economically feasible measures.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Notes
to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
Environmental
expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized
and amortized depending on their future economic benefits. Estimated future reclamation and site restoration costs, when the ultimate
liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation,
net of expected recoveries.
Revenue
recognition
Revenue
includes service and management fees associated with the operation of senior holiday services. Revenue is recognized when the
services are rendered.
Income
taxes
Deferred
income taxes are reported for timing differences between items of income or expense reported in the consolidated financial statements
and those reported for income tax purposes in accordance with Accounting Standards Codification (“ASC”) 740,
“Income
Taxes”
, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and
tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying
amounts of assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects
attributable to temporary differences and carry-forwards when realization is more likely than not.
Basic
and diluted net loss per share
The
Company computes net income (loss) per share in accordance with ASC 260,
“Earnings per Share”
. ASC 260 requires
presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is
computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding
(denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period
using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average
stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options
or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.
Segments
of an enterprise and related information
ASC
280,
“Segment Reporting”
establishes guidance for the way that public companies report information about operating
segments in annual consolidated financial statements and requires reporting of selected information about operating segments in
interim consolidated financial statements issued to the public. It also establishes standards for disclosures regarding products
and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which
separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how
to allocate resources and in assessing performance. The Company has evaluated this Codification and does not believe it is applicable
at this time.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Notes
to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
Start-up
expenses
The
Company has adopted ASC 720-15,
“Start-Up Costs”
, which requires that costs associated with start-up activities
be expensed as incurred. Accordingly, start-up costs associated with the Company’s formation have been included in the Company’s
expenses for the period from the date of inception on 21 January 2004 to 30 June 2017.
Comprehensive
loss
ASC
220,
“Comprehensive Income”
, establishes standards for the reporting and display of comprehensive loss and
its components in the consolidated financial statements. As at 30 June 2017, the Company has no items that represent a comprehensive
loss and, therefore, has not included a schedule of comprehensive loss in the consolidated financial statements.
Foreign
currency translation
The
Company’s functional and reporting currency is U.S. dollars. The consolidated financial statements of the Company are translated
to U.S. dollars in accordance with ASC 830, “
Foreign Currency Matters
”. Monetary assets and liabilities denominated
in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on
translation or settlement of foreign currency denominated transactions or balances are included in the determination of income.
The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the
impact of foreign currency fluctuations.
Use
of estimates and assumptions
The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions
that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ
from these estimates.
Comparative
figures
Certain
comparative figures have been adjusted to conform to the current year’s presentation.
Recently
issued accounting pronouncements
In
May 2014, Accounting Standards Update (“ASU”) guidance was issued related to revenue from contracts with customers.
The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures
about revenue recognition. The ASU is effective for annual reporting periods beginning after 15 December 2016, including interim
periods and is to be retrospectively applied. Early adoption is not permitted. The Company is currently evaluating this guidance
and the impact it will have on its Consolidated Financial Statements.
During
the year ended 30 June 2008, the Company acquired, through its wholly owned subsidiary, a 100% undivided rights, title and interest
in and to two gravel claims called the Northern Gravel Claims and Super Mammoth Gravel Claims situated along the Homfray Channel
at Lloyd Point on the south coast of British Columbia, Canada for $25,000. The acquisition cost of $25,000 was initially capitalized
as a tangible asset. During the year ended 30 June 2008, the Company recorded a write-down of mineral property acquisition costs
of $25,000 related to the Super Mammoth Gravel Project.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Notes
to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
During
the year ended 30 June 2017, the Company renewed its Northern Gravel Claims and Super Mammoth Gravel Claims for another year by
paying $3,741 (CAD$4,965) (2016: $Nil) (2015: $Nil).
On
18 May 2017, the Company sold its Northern Gravel Claims and Super Mammoth Gravel Claims for $1 to the Company’s former
officer and a former director to focus its efforts on new business venture in senior retirement services and products in China.
4.
|
ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES
|
Accounts
payable and accrued liabilities are non-interest bearing, unsecured and have settlement dates within one year.
During
the year ended 30 June 2017, the Company wrote off accounts payable balance in the amount of $2,072 (2016 - $Nil, 2015 - $Nil)
related to finance charges that were forgiven by the vendor.
During
the year ended 30 June 2017, the Company wrote off accounts payable balance in the amount of $19,252 (2016 - $Nil, 2015 - $Nil)
related to amounts due to a former officer and former director.
Included
in accounts payable and accrued liabilities was $3,034 (30 June 2016: $Nil) owing to a director of the Company (Note 6).
Authorized
The
total authorized capital is 200,000,000 common shares with a par value of $0.001 and 10,000,000 preferred shares with a par value
of $0.001.
On
26 June 2017, the Company increased the authorized shares of common stock of the Company from 75,000,000 shares to 200,000,000
shares and authorized the issuance of up to 10,000,000 shares of preferred stock, with such rights, preferences and limitations
as may be set from time to time by resolution of the Board of Directors (Note 1).
Issued
and outstanding
At
30 June 2017, the total issued and outstanding capital stock is 9,945,000 common shares with a par value of $0.001 per common
share (30 June 2016 - 9,925,000).
On
20 April 2017, the Company completed a private placement of 20,000 common shares at a price of $1.00 per share for total proceeds
of $20,000.
On
31 March 2016, the Company completed a private placement of 15,000 common shares at a price of $1.00 per share for total proceeds
of $15,000.
On
30 September 2015, the Company completed a private placement of 15,000 common shares at a price of $1.00 per share for total proceeds
of $15,000.
On
5 June 2015, the Company completed a private placement of 10,000 common shares at a price of $1.00 per share for total proceeds
of $10,000.
On
13 December 2014, the Company completed a private placement of 10,000 common shares at a price of $1.00 per share for total proceeds
of $10,000.
On
25 August 2014, the Company completed a private placement of 25,000 common shares at a price of $1.00 per share for total proceeds
of $25,000.
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Notes
to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
6.
|
RELATED
PARTY TRANSACTIONS
|
During
the year ended 30 June 2017, a former officer and a former director of the Company made contributions to capital for management
fees in the amount of $45,000 (2016 – $60,000, 2015 – $60,000) and for rent in the amount of $2,700 (2016 –
$3,600, 2015 – $3,600) (Note 9).
As
at 30 June 2017, the Company owed $3,034 (30 June 2016: $Nil) to a director of the Company. The amount is non-interest bearing,
unsecured and due on demand (Note 4).
On
11 May 2017, the Company entered into a memorandum of understanding (“MOU”) with Shanghai Qiao Garden International
Travel Agency (“Shanghai Travel”), whereby the Company is to provide favorable pricing on hotel rooms in California,
USA from 15 May 2017 to 31 May 2018. Shanghai Travel will provide no less than 35 senior tourists per month, 15 days of stay per
tourist. The Company will charge Shanghai Travel $80 per tourist per stay as booking fees. Further, the Company will receive a
monthly management fees of $2,000. During the year ended 30 June 2017, $50,000 (2016: $Nil, 2015: $Nil) was recorded as revenue
from reservation and management fees in the statements of operation and the amount was received subsequent to June 30, 2017. On
25 August, 2017, the Company entered into a Retirement Vacation Service Agreement, which superseded the MOU (Note 11).
The
Company has losses carried forward for income tax purposes to 30 June 2017. There are no current or deferred tax expenses for
the year ended 30 June 2017 due to the Company’s loss position. The Company has fully reserved for any benefits of these
losses. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes
are recognized, as appropriate. Realization of the future tax benefits related to the deferred tax assets is dependent on many
factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period. Management
has considered these factors in reaching its conclusion as to the valuation allowance for financial reporting purposes.
The
provision for refundable federal income tax consists of the following:
|
|
For
the
year ended 30 June 2017
$
|
|
|
For
the
year
ended
30
June
2016
$
|
|
|
For
the
year
ended
30
June
2015
$
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current operations
|
|
|
(10,017
|
)
|
|
|
50,380
|
|
|
|
39,473
|
|
Contributions to capital by related
parties
|
|
|
(16,218
|
)
|
|
|
(21,624
|
)
|
|
|
(21,624
|
)
|
Less: Change
in valuation allowance
|
|
|
26,235
|
|
|
|
(28,756
|
)
|
|
|
(17,849
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net refundable
amount
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Notes
to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
The
composition of the Company’s deferred tax assets as at 30 June 2017 and 30 June 2016 are as follows:
|
|
As
at
30 June 2017
$
|
|
|
As
at
30 June
2016
$
|
|
|
|
|
|
|
|
|
Net
income tax operating loss carryforward
|
|
|
1,061,987
|
|
|
|
1,091,450
|
|
|
|
|
|
|
|
|
|
|
Statutory federal income tax rate
|
|
|
34.00
|
%
|
|
|
34.00
|
%
|
Contributed rent and services
|
|
|
-20,35
|
%
|
|
|
-18.32
|
%
|
Effective income tax rate
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
Deferred tax assets
|
|
|
144,938
|
|
|
|
171,173
|
|
Less: Valuation
allowance
|
|
|
(144,938
|
)
|
|
|
(171,173
|
)
|
|
|
|
|
|
|
|
|
|
Net deferred
tax asset
|
|
|
-
|
|
|
|
-
|
|
The
potential income tax benefit of these losses has been offset by a full valuation allowance.
As
at 30 June 2017, the Company has an unused net operating loss carry-forward balance of approximately $426,287 that is available
to offset future taxable income. This unused net operating loss carry-forward balance expires between 2024 and 2037.
During
the year ended 30 June 2016, the Company received an assessment for penalties of $50,000 from the Internal Revenue Service regarding
failure to file certain supplementary forms for the tax years 2007 to 2011. During the year ended 30 June 2017, the penalties
were reversed.
9.
|
SUPPLEMENTAL
DISCLOSURES WITH RESPECT TO CASH FLOWS
|
|
|
|
For
the
year
ended
30
June 2016
$
|
|
|
|
For
the
year
ended
30
June
2015
$
|
|
|
|
For
the
year
ended
30
June 2014
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period
for interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Cash paid during the period for income
taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
During
the year ended 30 June 2017, an officer and director of the Company made contributions to capital for management fees in the amount
of $45,000 (2016 – $60,000, 2015 – $60,000) and for rent in the amount of $2,700 (2016 – $3,600, 2015 –
$3,600) (Note 6).
Hartford
Retirement Network Corp.
(formerly
Dynamic Gold Corp.)
Notes
to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
30
June 2017
10.
|
FINANCIAL
INSTRUMENTS
|
The
carrying value of cash, receivable and accounts payable approximates fair value due to the short-term maturity of these financial
instruments.
Credit
Risk
Financial
instruments that potentially subject the Company to credit risk consist of cash and accounts receivable. The Company deposits
cash with high credit quality financial institutions as determined by rating agencies. The Company is subject to medium risk with
respect to its accounts receivable due to potential non repayments from customers.
Currency
Risk
The
Company’s functional and reporting currency is the U.S. dollar. Foreign currency transactions are primarily undertaken in
Canadian dollars. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments
to offset the impact of foreign currency fluctuations.
If
the Canadian dollar had weakened (strengthened) against the U.S. dollar, with all other variables held constant, by 100 basis
points (1%) at year end, the impact on net loss and other comprehensive loss would have been insignificant.
Interest
Rate Risk
The
Company has cash balances and no interest-bearing debt. It is management’s opinion that the Company is not exposed to significant
interest risk arising from these financial instruments.
Liquidity
Risk
Liquidity
risk is the risk that an entity will encounter difficulty in meeting obligations associated with its financial liabilities. The
Company is reliant upon a related party and private placements as its sources of cash. The Company has received financing from
a related party and private placements in the past; however, there is no assurance that it will be able to do so in the future.
|
1)
|
Between
1 July 2017 and 28 August 2017, the Company issued 27,610,000 shares of its common stock for gross proceeds of $1,380,500.
As at audit report date, $50,000 has been received by the Company.
|
|
|
|
|
2)
|
On
25 August 2017, the Company entered into a Retirement Vacation Services Agreement with Shanghai Travel. The Company will provide
retirement vacation services to Shanghai Travel from 15 may 2017 to 31 May 2018. The agreement can be renewed automatically
on an annual basis. Shanghai Travel will provide at least 300 retirement vacation clients annually, for a minimum total hotel
stay of 3,000 nights. The Company will be charging Shanghai Travel $80 per client per hotel stay and $2,000 monthly management
fees (Note 7).
|