Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | Jul. 08, 2020 | Aug. 30, 2019 | |
Document And Entity Information | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment Description | The sole purpose of this Amendment No. 1 to our Annual Report on Form 10-K for the fiscal year ended February 29, 2020, is to furnish Exhibit 101 to the Form 10-K in accordance with Rule 405 of Regulation S-t. No other changes have been made to the Form 10-K. This Amendment No. 1 to the Form 10-K speaks as of the original filing date of the Form 10-K, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-K. | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 29, 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Current Fiscal Year End Date | --02-29 | ||
Entity File Number | 20-0077155 | ||
Entity Registrant Name | FingerMotion, Inc. | ||
Entity Central Index Key | 0001602409 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 1460 Broadway | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10036 | ||
City Area Code | 347 | ||
Local Phone Number | 349-5339 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 33,508,919 | ||
Entity Common Stock, Shares Outstanding | 33,892,953 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 102,919 | $ 1,337,245 |
Accounts receivable | 2,661,983 | 493,808 |
Equipment (net of $9,618 and $2,844 depreciation) | 21,339 | 10,606 |
Licenses | ||
Prepayment and deposit | 2,483,411 | 2,570,724 |
Other receivables | 600,455 | 25,309 |
Right-of-use asset | 6,671 | |
Current Assets | 5,876,778 | 4,437,692 |
TOTAL ASSETS | 5,876,778 | 4,437,692 |
Current Liabilities | ||
Accounts payable | 2,703,754 | 1,239,280 |
Accrual and other payables | 1,043,681 | 296,007 |
Due to related parties | 1,351,107 | 1,880,373 |
Convertible notes payable | 1,000,000 | 370,000 |
Note payable | 66,000 | 66,000 |
Lease liability | 6,671 | |
Current Liabilities | 6,171,213 | 3,851,660 |
TOTAL LIABILITIES | 6,171,213 | 3,851,660 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $.0001 per share; Authorized 1,000,000 shares; issued and outstanding -0- shares. | ||
Common Stock, par value $.0001 per share; Authorized 200,000,000 shares; issued and outstanding 25,847,953 shares and 24,763,753 issued and outstanding at February 29, 2020 and February 28, 2019 respectively | 2,585 | 2,476 |
Common stock subscribed | ||
Additional paid-in capital | 7,521,587 | 5,414,897 |
Accumulated deficit | (7,826,754) | (4,822,389) |
Accumulated other comprehensive income | 3,964 | (8,952) |
Stockholders' deficit before non-controlling interests | (298,618) | 586,032 |
Non-controlling interests | 4,183 | |
TOTAL SHAREHOLDERS' EQUITY | (294,435) | 586,032 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,876,778 | $ 4,437,692 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Depreciation | $ 9,618 | $ 2,844 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 25,847,953 | 24,763,753 |
Common stock, shares outstanding (in shares) | 25,847,953 | 24,763,753 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 9,131,294 | $ 1,473,037 |
Cost of revenue | (8,165,535) | (1,130,021) |
Gross profit (loss) | 965,759 | 343,016 |
Amortization & depreciation | (6,918) | (87,159) |
General & administrative expenses | (2,663,609) | (2,820,584) |
Research & Development | (390,288) | |
Stock compensation expenses | (970,988) | |
Total operating expenses | (4,031,803) | (2,907,743) |
Net loss from operations | (3,066,044) | (2,564,727) |
Other income (expense): | ||
Interest income | 1,319 | 400 |
Interest expense | (24,260) | (32,540) |
Exchange rate gain (loss) | (1,158) | 6,117 |
Written off of goodwill | (8,749) | (322,973) |
Other income | 98,798 | 848 |
Total other income (expense) | 65,950 | (348,148) |
Net Loss | (3,000,094) | (2,912,875) |
Less: Net profit attributable to the non-controlling interest | 4,271 | |
Net loss attributable to the Company's shareholders | (3,004,365) | (2,912,875) |
Other comprehensive income: | ||
Foreign currency translation adjustments | 12,916 | (8,952) |
Comprehensive loss | (2,991,449) | (2,921,827) |
Less: comprehensive income (loss) attributable to non-controlling interest | 31 | |
Comprehensive loss attributable to the Company | $ (2,991,480) | $ (2,921,827) |
NET LOSS PER SHARE | ||
Loss Per Share - Basic (in dollars per share) | $ (0.12) | $ (0.12) |
Loss Per Share - Diluted (in dollars per share) | (0.12) | (0.16) |
NET LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY | ||
Loss Per Share - Basic | (0.12) | (0.12) |
Loss Per Share - Diluted | $ (0.12) | $ (0.16) |
Wgt Ave Common Shares Outstanding - Basic (in shares) | 25,847,953 | 24,763,753 |
Wgt Ave Common Shares Outstanding - Diluted (in shares) | 25,611,305 | 18,604,860 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Equity - USD ($) | Common Stock | Capital Paid in Excess Par Value | Shares To Be Issued | Deficit Accumulated | Accumulated Other Comprehensive Income | Stockholders Deficit | Noncontrolling Interest | Total |
Beginning Balance at Feb. 28, 2018 | $ 1,743 | $ 1,655,130 | $ 150,000 | $ (1,909,514) | $ (102,641) | $ (102,641) | ||
Beginning Balance (in Shares) at Feb. 28, 2018 | 17,432,753 | |||||||
Common stock issued for cash | $ 733 | 3,759,767 | (150,000) | 3,610,500 | 3,610,500 | |||
Common stock issued for cash (in Shares) | 7,331,000 | |||||||
Accumulated other comprehensive income | (8,952) | (8,952) | (8,952) | |||||
Net (Loss) | (2,912,875) | (2,912,875) | (2,912,875) | |||||
Ending Balance at Feb. 28, 2019 | $ 2,476 | 5,414,897 | (4,822,389) | (8,952) | 586,032 | 586,032 | ||
Ending Balance (in Shares) at Feb. 28, 2019 | 24,763,753 | |||||||
Common stock issued for cash | $ 60 | 1,364,895 | 1,364,955 | 1,364,955 | ||||
Common stock issued for cash (in Shares) | 598,200 | |||||||
Common stock issued for professional service | $ 20 | 334,824 | 334,844 | 334,844 | ||||
Common stock issued for professional service (in Shares) | 200,000 | |||||||
Execution of convertible notes | $ 29 | 406,971 | 407,000 | 407,000 | ||||
Execution of convertible notes (in Shares) | 286,000 | |||||||
Acquisition of Xunlian | (88) | (88) | ||||||
Stock subscribed | ||||||||
Accumulated other comprehensive income | 12,916 | 12,916 | 12,916 | |||||
Net (Loss) | (3,004,365) | (3,004,365) | 4,271 | (3,000,094) | ||||
Ending Balance at Feb. 29, 2020 | $ 2,585 | $ 7,521,587 | $ (7,826,754) | $ 3,964 | $ (298,618) | $ 4,183 | $ (294,435) | |
Ending Balance (in Shares) at Feb. 29, 2020 | 25,847,953 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net Loss | $ (3,000,094) | $ (2,912,875) |
Adjustments to reconcile decrease in net assets to net cash provided by operating activities: | ||
Share based compensation expenses | 869,147 | 1,608,853 |
Amortization and depreciation | 6,918 | 87,159 |
Written off of goodwill | 8,749 | 322,973 |
Forgiveness of debt | ||
Change in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (2,168,175) | (197,559) |
(Increase) decrease in prepayment and deposit | 87,313 | (2,530,190) |
(Increase) decrease in other receivable | (575,146) | (19,815) |
(Increase) decrease in right-of-use asset | (6,671) | |
Increase (decrease) in accounts payable | 1,464,474 | 1,132,198 |
Increase (decrease) in accrual and other payables | 747,674 | (89,391) |
Increase (decrease) in due to related parties | (529,266) | 1,880,373 |
Increase (decrease) in due to lease liability | 6,671 | |
Cash used in operating activities | (3,088,406) | (718,274) |
Cash flows from investing activities | ||
Purchase of equipment | (17,507) | (11,711) |
Acquisition of a subsidiary (net of cash acquired) | 270 | |
(Increase) in licenses | ||
Net cash used in investing activities | (17,237) | (11,711) |
Cash flows from financing activities | ||
Proceed of notes payable | 1,000,000 | 386,000 |
Proceeds from issuance of shares | 830,652 | 1,678,674 |
Common stock issued in reverse merger | ||
Common stock issued for cash | ||
Net cash provided by financing activities | 1,830,652 | 2,064,674 |
Effect of exchange rates on cash and cash equivalents | 40,665 | (7,995) |
Net change in cash | (1,234,326) | 1,326,694 |
Cash at beginning of period | 1,337,245 | 10,551 |
Cash at end of period | 102,919 | 1,337,245 |
Supplemental disclosures of cash flow information: | ||
Interest paid | ||
Taxes paid |
Nature of Business and basis of
Nature of Business and basis of Presentation | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Nature of Business and basis of Presentation | Note 1 – Nature of Business and basis of Presentation FingerMotion, Inc. fka Property Management Corporation of America (the “Company”) was incorporated on January 23, 2014 under the laws of the State of Delaware. The Company then offered management and consulting services to residential and commercial real estate property owners who rent or lease their property to third party tenants. The Company changed its name to FingerMotion, Inc. on July 13, 2017 after a change in control. In July 2017 the Company acquired all of the outstanding shares of Finger Motion Company Limited (“FMCL”), a Hong Kong corporation that is an information technology company which specialize in operating and publishing mobile games. Pursuant to the Share Exchange Agreement with FMCL, effective July 13, 2017 (the “Share Exchange Agreement”, the Company agreed to exchange the outstanding equity stock of FMCL held by the FMCL Shareholders for shares of common stock of the Company. At the Closing Date, the Company issued 12,000,000 shares of common stock to the FMCL shareholders. In addition, the Company issued 600,000 shares to other consultants in connection with the transactions contemplated by the Share Exchange Agreement. The transaction was accounted for as a “reverse acquisition” since, immediately following completion of the transaction, the shareholders of FMCL effectuated control of the post-combination Company. For accounting purposes, FMCL was deemed to be the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of FMCL (i.e., a capital transaction involving the issuance of shares by the Company for the shares of FMCL). Accordingly, the consolidated assets, liabilities and results of operations of FMCL became the historical financial statements of FingerMotion, Inc. and its subsidiaries, and the Company’s assets, liabilities and results of operations were consolidated with FMCL beginning on the acquisition date. No step-up in basis or intangible assets or goodwill were recorded in this transaction. As a result of the Share Exchange Agreement and the other transactions contemplated thereunder, FMCL became a wholly owned subsidiary of the Company. FMCL, a Hong Kong corporation, was formed in April 6, 2016. On October 16, 2018, the Company through its indirect wholly-owned subsidiary, Shanghai JiuGe Business Management Co., Ltd. (“JiuGe Management”), entered into a series of agreements known as variable interest agreements (the “VIE Agreements”) pursuant to which Shanghai JiuGe Information Technology Co., Ltd. (“JiuGe Technology”) became JiuGe Management’s contractually controlled affiliate. The use of VIE agreements is a common structure used to acquire PRC corporations, particularly in certain industries in which foreign investment is restricted or forbidden by the PRC government. The VIE Agreements include a Consulting Services Agreement, a Loan Agreement, a Power of Attorney Agreement, a Call Option Agreement, and a Share Pledge Agreement in order to secure the connection and commitments of the JiuGe Technology. On March 7, 2019, JiuGe Technology also acquired 99% of equity interest of Beijing XunLian (“BX”), a subsidiary that provides bulk distribution of SMS messages for JiuGe customers at discounted rates. |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 - Summary of Principal Accounting Policies Principles of Consolidation and Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, and its wholly-owned subsidiaries. All intercompany accounts, transactions, and profits have been eliminated upon consolidation. Variable interest entity Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (“VIEs”). ASC 810 requires a VIE to be consolidated if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entity’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. JiuGe Technology’s actual stockholders do not hold any kick-out rights that affect the consolidation determination. The following assets and liabilities of the VIE & VIE Subsidiary are included in the accompanying consolidated financial statements of the Company as of February 29, 2020 and February 28, 2019: Assets and liabilities of the VIE February 29, 2020 February 28, 2019 Current assets $ 1,966,067 $ 2,674,890 Non-current assets 143,362 — Total assets $ 2,109,439 $ 2,674,890 Current liabilities $ 3,138,721 $ 3,023,805 Non-current liabilities — — Total liabilities $ 3,138,721 $ 3,023,805 Assets and liabilities of the VIE Subsidiary February 29, 2020 February 28, 2019 Current assets $ 3,068,108 $ — Non-current assets — — Total assets $ 3,068,108 $ — Current liabilities $ 2,652,928 $ — Non-current liabilities — — Total liabilities $ 2,652,928 $ — Operating Result of VIE For the Year Ended February 29, 2020 Revenue $ 1,822,081 Cost of revenue (1,651,855 ) Gross profit (loss) $ 170,226 Amortization and depreciation (5,504 ) General and administrative expenses (1,282,549 ) Research & Development (114,558 ) Share compensation expenses — Total operating expenses $ (1,402,611 ) Profit (loss) from operations $ (1,232,385 ) Interest income 1,058 Interest expense — Other income 8,795 Total other income (expense) $ 9,853 Tax expense — Net profit (loss) $ (1,222,532 ) Operating Result of VIE Subsidiary results from March 7, 2019 through February 29, 2020 For the Year Ended February 29, 2020 Revenue $ 7,309,213 Cost of revenue (6,513,680 ) Gross profit (loss) $ 795,533 Amortization and depreciation — General and administrative expenses (233,072 ) Research & Development (22,193 ) Share compensation expenses — Total operating expenses $ (255,265 ) Profit (loss) from operations $ 540,268 Interest income 224 Other income 9,824 Total other income (expense) $ 10,048 Tax expense (40,880 ) Net profit (loss) $ 509,436 Use of Estimates The preparation of the Company’s financial statements in conformity with generally accepted accounting principles of the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Actual results could differ from those estimates. Certain Risks and Uncertainties The Company relies on cloud-based hosting through a global accredited hosting provider. Management believes that alternate sources are available; however, disruption or termination of this relationship could adversely affect our operating results in the near-term. Identifiable Intangible Assets Identifiable intangible assets are recorded at cost and are amortized over 3-10 years. Similar to tangible property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment of Long-Lived Assets The Company classifies its long-lived assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – lived intangible assets. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary. The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Company’s business strategy and its forecasts for specific market expansion. Accounts Receivable and Concentration of Risk Accounts receivable, net is stated at the amount the Company expects to collect, or the net realizable value. The Company provides a provision for allowances that includes returns, allowances and doubtful accounts equal to the estimated uncollectible amounts. The Company estimates its provision for allowances based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the provision for allowances will change. Lease Operating and finance lease right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. When the rate implicit to the lease cannot be readily determined, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is derived from information available at the lease commencement date and represents the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The right-of-use asset includes any lease payments made and lease incentives received prior to the commencement date. Operating lease right-of-use assets also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The right-of-use assets and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided using the straight-line method for financial reporting purposes at rates based on the estimated useful lives of the assets. Estimated useful lives range from three to seven years. Land is classified as held for sale when management has the ability and intent to sell, in accordance with ASC Topic 360-45. Earnings Per Share Basic (loss) earnings per share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per share. FASB Accounting Standard Codification Topic 260 (“ASC 260”), “Earnings Per Share,” requires that employee equity share options, non-vested shares and similar equity instruments granted to employees be treated as potential common shares in computing diluted earnings per share. Diluted earnings per share should be based on the actual number of options or shares granted and not yet forfeited, unless doing so would be anti-dilutive. The Company uses the “treasury stock” method for equity instruments granted in share-based payment transactions provided in ASC 260 to determine diluted earnings per share. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted earnings or loss per share as their impact was antidilutive. Revenue Recognition The Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”) beginning on January 1, 2018 using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to the Company's consolidated financial statements upon adoption of ASC 606. The Company recognizes revenue from providing hosting and integration services and licensing the use of its technology platform to its customers. The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer (for licensing, revenue is recognized when the Company’s technology is used to provide hosting and integration services); (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of fees is probable. We account for our multi-element arrangements, such as instances where we design a custom website and separately offer other services such as hosting, which are recognized over the period for when services are performed. Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with Accounting Standards Codification (“ASC”) 740, “Income Taxes” (“ASC 740”). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. Non-controlling interest Non-controlling interests held 1% shares of one of subsidiary is recorded as a component of our equity, separate from the Company’s equity. Purchase or sales of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. Recently Issued Accounting Pronouncements The Company does not believe 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. |
Going Concern
Going Concern | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Going Concern | Note 3 - Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company had an accumulated deficit of $7,826,754 and $4,822,389 as at February 29, 2020 and February 28, 2019 respectively, and had a net loss of $3,000,094 and $2,912,875 for the years ended February 29, 2020 and February 28, 2019, respectively. The Company’s continuation as a going concern is dependent on its ability to obtain additional financing to fund operations, implement its business model, and ultimately, attain profitable operations. The Company will need to secure additional funds through various means, including equity and debt financing or any similar financing. There can be no assurance that the Company will be able to obtain additional equity or debt financing, if and when needed, on terms acceptable to the Company, or at all. Any additional equity or debt financing may involve substantial dilution to the Company’s stockholders, restrictive covenants or high interest costs. The Company’s long-term liquidity also depends upon its ability to generate revenues and achieve profitability. |
Revenue
Revenue | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Revenue | Note 4 - Revenue We recorded $9,131,294 and $1,473,037 in revenue, respectively, for the years ended February 29, 2020 and February 28, 2019. The increase of $7,658,257 resulted from the consolidation of the VIE entities & its subsidiary and the new business model. February 29,2020 February 28, 2019 Gaming $ — $ 331,233 Mobile Recharge 1,822,081 1,141,804 SMS 7,309,213 — $ 9,131,294 $ 1,473,037 |
Equipment
Equipment | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Equipment | Note 5 – Equipment At February 29, 2020 and February 28, 2019, the company has the following amounts related to tangible assets: February 29, 2020 February 28, 2019 Equipment $ 30,957 $ 13,450 Less: accumulated depreciation (9,618 ) (2,844 ) Net equipment $ 21,339 $ 10,606 No significant residual value is estimated for the equipment. Depreciation expense for the years ended February 29, 2020 and February 28, 2019 totaled $6,918 and $2,844, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Intangible Assets | Note 6 – Intangible Assets At February 29, 2020 and February 28, 2019, the company has the following amounts related to intangible assets: February 29, 2020 February 28, 2019 Licenses $ 200,000 $ 200,000 Less: accumulated amortization (200,000 ) (200,000 ) Net intangible assets $ -0- $ -0- No significant residual value is estimated for these intangible assets. The remaining amortization period of the Company’s amortizable intangible assets have been totally amortized as of February 28, 2019. |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Prepaid expenses | Note 7 – Prepaid expenses Prepaid expenses consist of the deposit pledge to the vendor for stocks credits for resale. The significant movement was mainly due to inception of Finger Motion (CN) Limited and its China entities on October 16, 2018. Our current vendors are China Unicom and China Mobile for Mobile Recharge and China Mobile for SMS. February 29, 2020 February 28, 2019 Deposit Paid / Prepayment $ 997,864 $ 44,570,540 Deposit received (11,783 ) (43,237,936 ) Net Prepaid expenses for Mobile recharge $ 986,081 $ 1,332,604 Other deposit 916,242 1,238,120 Prepayment and deposit $ 1,902,323 $ 2,570,724 February 29, 2020 February 28, 2019 Deposit Paid / Prepayment $ 581,088 $ — Deposit received — Net Prepaid expenses for SMS $ 581,088 $ — Other deposit — — Prepayment and deposit $ 581,088 $ — |
Right-of-use Asset and Lease Li
Right-of-use Asset and Lease Liability | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Right-of-use Asset and Lease Liability | Note 8 – Right-of-use Asset and Lease Liability The Company has entered into lease agreements with various third parties. The terms of operating leases are one to two years. These operating leases are included in "Right-of-use Asset" on the Company's Consolidated Balance Sheet and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in "Lease liability" on the Company's Consolidated Balance Sheet. Additionally, the Company has entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on the Company's balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term in the year ended February 29, 2020. Information related to the Company's right-of-use assets and related lease liabilities were as follows: February 29, 2020 Right-of-use asset Right-of-use asset $ 6,671 Lease liability Current lease liability $ 6,671 Non-current lease liability — Total lease liability $ 6,671 February 29, 2020 Remaining lease term and discount rate Weighted-average remaining lease term 2 years Weighted-average discount rate 2.48 % Commitments The following table summarizes the future minimum lease payments due under the Company's operating leases as of February 29, 2020: 2020 $ 6,692 Thereafter — Less: imputed interest (21 ) Present value of lease liability $ 6,671 |
Convertible Notes Payables
Convertible Notes Payables | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Convertible Notes Payables | Note 9 - Convertible notes payables A Note Payable having a Face Value of $1,000,000 at February 29, 2020 and accruing interest at 5% is due Oct 9, 2020. The note is convertible anytime from the date of issuance into $0.0001 par value Common Stock at $2.00 per share. We estimate that the fair value of these convertible debt approximates the face value, so no value has been assigned to the beneficial conversion feature. Any gain or loss will be recognized at conversion. |
Note Payable
Note Payable | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Note Payable | Note 10 - Note payable A Note Payable having a Face Value of $66,000 at February 29, 2020 and accruing interest at 0% is due May 21, 2021. |
Common Stock
Common Stock | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Common Stock | Note 11 - Common Stock On June 21, 2017, the Company filed Articles of Amendment to its Amended Articles of Incorporation with the Secretary of State of the State of Delaware effecting a 1 for 4 reverse stock split of the Company's common stock and increase in the authorized shares of common stock to 200,000,000 and a name change of the Company from Property Management Corporation of America to FingerMotion, Inc. (the "Corporate Actions"). The Corporate Actions and the Amended Articles became effective on June 21, 2017. Effective July 13, 2017 (the “Closing Date”), the Company entered into that certain Share Exchange Agreement (the “Share Exchange Agreement”) by and among the Company, Finger Motion Company Limited, a Hong Kong corporation (“FMCL”) and certain shareholders of FMCL (the “FMCL Shareholders”). Pursuant to the Share Exchange Agreement, the Company agreed to exchange the outstanding equity stock of FMCL held by the FMCL Shareholders for shares of common stock of the Company. At the Closing Date, the Company issued 12,000,000 shares of common stock to the FMCL shareholders. In addition, the Company issued 600,000 shares to consultants in connection with the transactions contemplated by the Share Exchange Agreement, and up to 2,562,500 additional shares to accredited investors pursuant to a concurrent financing in conjunction with the Share Exchange Agreement. The Company issued 2,856,000 shares of common stock during the fiscal year ended February 28, 2018, of which 1,350,000 were issued to consultants at $0.035 per share. 400,000, 470,000 and 636,000 shares were issued to investors at a per share purchase price of $0.50, $1.00 and $1.50, respectively. The Company issued 7,331,000 shares of common stock during the year ended February 28, 2019 for cash of $3,760,500. The Company issued 798,200 shares of common stock for the year ended February 29, 2020 for consideration of $1,699,799, including 200,000 shares of common stock to consultants. The Company issued 242,000 shares of common stock at a deemed price of $1.00 per share during the fiscal year ended February 29, 2020 pursuant to the conversion of promissory notes in the aggregate amount of $220,000 plus interest of $22,000. The Company issued an aggregate of 44,000 shares of common stock at a deemed price of $2.50 per share during the fiscal year ended February 29, 2020 pursuant to the conversion of promissory notes in the aggregate amount of $100,000 plus interest of $4,000. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Earnings Per Share | Note 12 - Earnings Per Share The following table sets forth the computation of basic and diluted earnings per common share: For the years ended February 29, 2020 February 28, 2019 Numerator - basic and diluted Net Loss $ (3,000,094 ) $ (2,912,875 ) Denominator Weighted average number of common shares outstanding —basic 25,847,953 24,763,753 Weighted average number of common shares outstanding —diluted 25,611,305 18,604,860 Loss per common share — basic $ (0.12 ) $ (0.12 ) Loss per common share — diluted $ (0.12 ) $ (0.16 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Income Taxes | Note 13 - Income Taxes The Company and its subsidiaries file separate income tax returns. The United States of America FingerMotion, Inc. is incorporated in the State of Delaware in the U.S. and is subject to a U.S. federal corporate income tax of 21%. The Company generated a taxable loss for the years ended February 29, 2020 and February 28, 2019. Hong Kong Finger Motion Company Limited is incorporated in Hong Kong and Hong Kong’s profits tax rate is 16.5%. Finger Motion Company Limited did not earn any income that was derived in Hong Kong for the years ended February 29, 2020 and February 28, 2019. The People’s Republic of China (PRC) JiuGe Management, JiuGe Technology and Beijing XunLian were incorporated in the People’s Republic of China and subject to PRC income tax at 25%. Income tax mainly consists of foreign income tax at statutory rates and the effects of permanent and temporary differences. The Company’s effective income tax rates for the years ended February 29, 2020 and February 28, 2019 are as follows: February 29, 2020 February 28, 2019 U.S. statutory tax rate 21.0 % 21.0 % Foreign income not registered in the U.S. (21.0 %) (21.0 %) PRC profit tax rate 25.0 % 25.0 % Changes in valuation allowance and others (25.0 %) (25.0 %) Effective tax rate 0.0 % 0.0 % At February 29, 2020 and February 28, 2019, the Company has a deferred tax asset of $750,024 and $236,331, resulting from certain net operating losses in U.S., respectively. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those net operating losses are available. The Company considers projected future taxable income and tax planning strategies in making its assessment. At present, the Company concludes that it is more-likely-than-not that the Company will be able to realize all of its tax benefits in the near future and therefore a valuation allowance has been provided for the full value of the deferred tax asset. A valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of any portion or all of the valuation allowance. At February 29, 2020 and February 28, 2019, the valuation allowance was $750,024 and $236,331, respectively. February 29, 2020 February 28, 2019 Deferred tax asset from operating losses carry-forwards $ 750,024 $ 236,331 Valuation allowance (750,024 ) (236,331 ) Deferred tax asset, net $ — $ — |
Acquisition
Acquisition | 12 Months Ended |
Feb. 29, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Note 14 – Acquisition Acquisition of Beijing XunLian On March 7, 2019, JiuGe Technology also acquired 99% of equity interest of Beijing XunLian, a subsidiary that provides bulk distribution of SMS messages for JiuGe customers at discounted rates. The following table summarizes the consideration paid for Beijing XunLian and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. Consideration $ -0- Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 270 Deposits, prepayments and other receivables 863 Other payables (9,882 ) Net liabilities $ (8,749 ) Goodwill $ 8,749 Goodwill arising on the acquisition was written off as expenses for the year ended February 29, 2020 |
Related Parties Transaction
Related Parties Transaction | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Related Parties Transaction | Note 15 - Related Parties Transaction a) Related parties: Name of related parties Relationship with the Company Ms. Li Li Non-controlling Stockholder, Director of Shanghai JiuGe Information Technology Co., Ltd. b) The Company had the following related party balances at February 29, 2020 and February 28, 2019: February 29, 2020 February 28, 2019 Due to related parties: Ms. Li Li $ (1,351,107 ) $ (1,880,373 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Commitments and Contingencies | Note 16 - Commitments and Contingencies Legal proceedings The Company is not aware of any material outstanding claim and litigation against them. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 29, 2020 | |
Notes To Financial Statements [Abstract] | |
Subsequent Events | Note 17 - Subsequent Events On May 1, 2020, we issued an aggregate of 7,645,000 shares of our common stock at a deemed price of $0.20 per share to 24 individuals and two entities pursuant to consulting agreements, management agreements and to employees. We relied on the exemption from registration under the Securities Act provided by Rule 903 of Regulation S promulgated under the Securities Act for the issuance of such shares as the securities were issued to the individuals and the entities through offshore transactions which were negotiated and consummated outside of the United States. On May 8, 2020, we issued an aggregate of 150,000 shares of our common stock at a deemed price of $0.40 per share to three individuals pursuant to a financial advisory services agreement. We relied on the exemption from registration under the Securities Act provided by Section 4(a)(2) for the issuance to the individuals who are U.S. persons. On May 15, 2020, we issued 250,000 shares of our common stock at a deemed price of $0.25 per share to one entity pursuant to a management consulting agreement. We relied on the exemption from registration under the Securities Act provided by Section 4(a)(2) for the issuance to the individuals who are U.S. persons. The Company has received $305,000 from subscriptions for shares of our common stock at a price of $0.50 per share subsequent to the year ended February 29, 2020, which shares have not been issued yet. The impact of C oronavirus (COVID-19) In December 2019, a novel strain of coronavirus was reported in Wuhan, China. On March 11, 2020, the World Health Organization categorized it as a pandemic. The COVID-19 outbreak is causing lockdowns, quarantines, travel restrictions, and closures of businesses and schools. The potential impact which may be caused by the outbreak is uncertain; However the Company’s financial position, operations and cash flows for fiscal year 2020 has not been materially affected by this pandemic. Based on the Company’s operating results from March 1, 2020 through the date of this report, it has shown the impact have been minimal. As the Country have been slowly reopening with more businesses and the enforcing on strict controls by the Government on the containment of the spread of this virus since March, the Company business will likely be seen to be continually improves for the fiscal year 2020. However, there will be a possibility that the outbreak may worsen at a later point in time where it may impact the growth of the business, all of which are uncertain and cannot be predicted at this point. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Feb. 29, 2020 | |
Summary Of Principal Accounting Policies | |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, and its wholly-owned subsidiaries. All intercompany accounts, transactions, and profits have been eliminated upon consolidation. |
Variable Interest Entity | Variable interest entity Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (“VIEs”). ASC 810 requires a VIE to be consolidated if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entity’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. JiuGe Technology’s actual stockholders do not hold any kick-out rights that affect the consolidation determination. The following assets and liabilities of the VIE & VIE Subsidiary are included in the accompanying consolidated financial statements of the Company as of February 29, 2020 and February 28, 2019: Assets and liabilities of the VIE February 29, 2020 February 28, 2019 Current assets $ 1,966,067 $ 2,674,890 Non-current assets 143,362 — Total assets $ 2,109,439 $ 2,674,890 Current liabilities $ 3,138,721 $ 3,023,805 Non-current liabilities — — Total liabilities $ 3,138,721 $ 3,023,805 Assets and liabilities of the VIE Subsidiary February 29, 2020 February 28, 2019 Current assets $ 3,068,108 $ — Non-current assets — — Total assets $ 3,068,108 $ — Current liabilities $ 2,652,928 $ — Non-current liabilities — — Total liabilities $ 2,652,928 $ — Operating Result of VIE For the Year Ended February 29, 2020 Revenue $ 1,822,081 Cost of revenue (1,651,855 ) Gross profit (loss) $ 170,226 Amortization and depreciation (5,504 ) General and administrative expenses (1,282,549 ) Research & Development (114,558 ) Share compensation expenses — Total operating expenses $ (1,402,611 ) Profit (loss) from operations $ (1,232,385 ) Interest income 1,058 Interest expense — Other income 8,795 Total other income (expense) $ 9,853 Tax expense — Net profit (loss) $ (1,222,532 ) Operating Result of VIE Subsidiary results from March 7, 2019 through February 29, 2020 For the Year Ended February 29, 2020 Revenue $ 7,309,213 Cost of revenue (6,513,680 ) Gross profit (loss) $ 795,533 Amortization and depreciation — General and administrative expenses (233,072 ) Research & Development (22,193 ) Share compensation expenses — Total operating expenses $ (255,265 ) Profit (loss) from operations $ 540,268 Interest income 224 Other income 9,824 Total other income (expense) $ 10,048 Tax expense (40,880 ) Net profit (loss) $ 509,436 |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements in conformity with generally accepted accounting principles of the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Actual results could differ from those estimates. |
Certain Risks and Uncertainties | Certain Risks and Uncertainties The Company relies on cloud-based hosting through a global accredited hosting provider. Management believes that alternate sources are available; however, disruption or termination of this relationship could adversely affect our operating results in the near-term. |
Identifiable Intangible Assets | Identifiable Intangible Assets Identifiable intangible assets are recorded at cost and are amortized over 3-10 years. Similar to tangible property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company classifies its long-lived assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – lived intangible assets. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary. The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Company’s business strategy and its forecasts for specific market expansion. |
Accounts Receivable and Concentration of Risk | Accounts Receivable and Concentration of Risk Accounts receivable, net is stated at the amount the Company expects to collect, or the net realizable value. The Company provides a provision for allowances that includes returns, allowances and doubtful accounts equal to the estimated uncollectible amounts. The Company estimates its provision for allowances based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the provision for allowances will change. |
Lease | Lease Operating and finance lease right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. When the rate implicit to the lease cannot be readily determined, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is derived from information available at the lease commencement date and represents the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The right-of-use asset includes any lease payments made and lease incentives received prior to the commencement date. Operating lease right-of-use assets also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The right-of-use assets and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided using the straight-line method for financial reporting purposes at rates based on the estimated useful lives of the assets. Estimated useful lives range from three to seven years. Land is classified as held for sale when management has the ability and intent to sell, in accordance with ASC Topic 360-45. |
Earnings Per Share | Earnings Per Share Basic (loss) earnings per share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per share. FASB Accounting Standard Codification Topic 260 (“ASC 260”), “Earnings Per Share,” requires that employee equity share options, non-vested shares and similar equity instruments granted to employees be treated as potential common shares in computing diluted earnings per share. Diluted earnings per share should be based on the actual number of options or shares granted and not yet forfeited, unless doing so would be anti-dilutive. The Company uses the “treasury stock” method for equity instruments granted in share-based payment transactions provided in ASC 260 to determine diluted earnings per share. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted earnings or loss per share as their impact was antidilutive. |
Revenue Recognition | Revenue Recognition The Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”) beginning on January 1, 2018 using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to the Company's consolidated financial statements upon adoption of ASC 606. The Company recognizes revenue from providing hosting and integration services and licensing the use of its technology platform to its customers. The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer (for licensing, revenue is recognized when the Company’s technology is used to provide hosting and integration services); (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of fees is probable. We account for our multi-element arrangements, such as instances where we design a custom website and separately offer other services such as hosting, which are recognized over the period for when services are performed. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with Accounting Standards Codification (“ASC”) 740, “Income Taxes” (“ASC 740”). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Non-controlling interest | Non-controlling interest Non-controlling interests held 1% shares of one of subsidiary is recorded as a component of our equity, separate from the Company’s equity. Purchase or sales of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company does not believe 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. |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Disclosure Summary Of Principal Accounting Policies Tables Abstract | |
Schedule of Variable Interest Entities | The following assets and liabilities of the VIE & VIE Subsidiary are included in the accompanying consolidated financial statements of the Company as of February 29, 2020 and February 28, 2019: Assets and liabilities of the VIE February 29, 2020 February 28, 2019 Current assets $ 1,966,067 $ 2,674,890 Non-current assets 143,362 — Total assets $ 2,109,439 $ 2,674,890 Current liabilities $ 3,138,721 $ 3,023,805 Non-current liabilities — — Total liabilities $ 3,138,721 $ 3,023,805 Assets and liabilities of the VIE Subsidiary February 29, 2020 February 28, 2019 Current assets $ 3,068,108 $ — Non-current assets — — Total assets $ 3,068,108 $ — Current liabilities $ 2,652,928 $ — Non-current liabilities — — Total liabilities $ 2,652,928 $ — Operating Result of VIE For the Year Ended February 29, 2020 Revenue $ 1,822,081 Cost of revenue (1,651,855 ) Gross profit (loss) $ 170,226 Amortization and depreciation (5,504 ) General and administrative expenses (1,282,549 ) Research & Development (114,558 ) Share compensation expenses — Total operating expenses $ (1,402,611 ) Profit (loss) from operations $ (1,232,385 ) Interest income 1,058 Interest expense — Other income 8,795 Total other income (expense) $ 9,853 Tax expense — Net profit (loss) $ (1,222,532 ) Operating Result of VIE Subsidiary results from March 7, 2019 through February 29, 2020 For the Year Ended February 29, 2020 Revenue $ 7,309,213 Cost of revenue (6,513,680 ) Gross profit (loss) $ 795,533 Amortization and depreciation — General and administrative expenses (233,072 ) Research & Development (22,193 ) Share compensation expenses — Total operating expenses $ (255,265 ) Profit (loss) from operations $ 540,268 Interest income 224 Other income 9,824 Total other income (expense) $ 10,048 Tax expense (40,880 ) Net profit (loss) $ 509,436 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Disclosure Revenue Tables Abstract | |
Schedule of Revenue | February 29,2020 February 28, 2019 Gaming $ — $ 331,233 Mobile Recharge 1,822,081 1,141,804 SMS 7,309,213 — $ 9,131,294 $ 1,473,037 |
Equipment (Tables)
Equipment (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Disclosure Equipment Tables Abstract | |
Schedule of Equipment | At February 29, 2020 and February 28, 2019, the company has the following amounts related to tangible assets: February 29, 2020 February 28, 2019 Equipment $ 30,957 $ 13,450 Less: accumulated depreciation (9,618 ) (2,844 ) Net equipment $ 21,339 $ 10,606 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Prepaid Expenses [Text Block] | |
Schedule of Intangible Assets | At February 29, 2020 and February 28, 2019, the company has the following amounts related to intangible assets: February 29, 2020 February 28, 2019 Licenses $ 200,000 $ 200,000 Less: accumulated amortization (200,000 ) (200,000 ) Net intangible assets $ -0- $ -0- |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Disclosure Prepaid Expenses Tables Abstract | |
Schedule of Prepaid Expense | February 29, 2020 February 28, 2019 Deposit Paid / Prepayment $ 997,864 $ 44,570,540 Deposit received (11,783 ) (43,237,936 ) Net Prepaid expenses for Mobile recharge $ 986,081 $ 1,332,604 Other deposit 916,242 1,238,120 Prepayment and deposit $ 1,902,323 $ 2,570,724 February 29, 2020 February 28, 2019 Deposit Paid / Prepayment $ 581,088 $ — Deposit received — Net Prepaid expenses for SMS $ 581,088 $ — Other deposit — — Prepayment and deposit $ 581,088 $ — |
Right-of-use Asset and Lease _2
Right-of-use Asset and Lease Liability (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Right-of-use Asset And Lease Liability | |
Lessee, Operating Leases, Assets and Liabilities [Table Text Block] | Information related to the Company's right-of-use assets and related lease liabilities were as follows: February 29, 2020 Right-of-use asset Right-of-use asset $ 6,671 Lease liability Current lease liability $ 6,671 Non-current lease liability — Total lease liability $ 6,671 February 29, 2020 Remaining lease term and discount rate Weighted-average remaining lease term 2 years Weighted-average discount rate 2.48 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table summarizes the future minimum lease payments due under the Company's operating leases as of February 29, 2020: 2020 $ 6,692 Thereafter — Less: imputed interest (21 ) Present value of lease liability $ 6,671 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Thereafter | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per common share: For the years ended February 29, 2020 February 28, 2019 Numerator - basic and diluted Net Loss $ (3,000,094 ) $ (2,912,875 ) Denominator Weighted average number of common shares outstanding —basic 25,847,953 24,763,753 Weighted average number of common shares outstanding —diluted 25,611,305 18,604,860 Loss per common share — basic $ (0.12 ) $ (0.12 ) Loss per common share — diluted $ (0.12 ) $ (0.16 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
fngr_OperatingLeaseRightOfUseAssetAccumulatedDepreciation | |
Schedule of Effective Income Tax Rate Reconciliation | Income tax mainly consists of foreign income tax at statutory rates and the effects of permanent and temporary differences. The Company’s effective income tax rates for the years ended February 29, 2020 and February 28, 2019 are as follows: February 29, 2020 February 28, 2019 U.S. statutory tax rate 21.0 % 21.0 % Foreign income not registered in the U.S. (21.0 %) (21.0 %) PRC profit tax rate 25.0 % 25.0 % Changes in valuation allowance and others (25.0 %) (25.0 %) Effective tax rate 0.0 % 0.0 % |
Schedule of Deferred Tax Assets and Liabilities | February 29, 2020 February 28, 2019 Deferred tax asset from operating losses carry-forwards $ 750,024 $ 236,331 Valuation allowance (750,024 ) (236,331 ) Deferred tax asset, net $ — $ — |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed Recognized at the Acquisition date | The following table summarizes the consideration paid for Beijing XunLian and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. Consideration $ -0- Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 270 Deposits, prepayments and other receivables 863 Other payables (9,882 ) Net liabilities $ (8,749 ) Goodwill $ 8,749 |
Related Parties Transaction (Ta
Related Parties Transaction (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Disclosure Related Parties Transaction Tables Abstract | |
Schedule of Related Party Transactions | The Company had the following related party balances at February 29, 2020 and February 28, 2019: February 29, 2020 February 28, 2019 Due to related parties: Ms. Li Li $ (1,351,107 ) $ (1,880,373 ) |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Details Narrative) | Jul. 13, 2017shares |
Consultant [Member] | |
Stock Issued During Period, Shares, New Issues | 600,000 |
Finger Motion Company Limited (FMCL) [Member] | |
Stock Issued During Period, Shares, New Issues | 12,000,000 |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Current assets | $ 5,876,778 | $ 4,437,692 |
Total assets | 5,876,778 | 4,437,692 |
Current liabilities | 6,171,213 | 3,851,660 |
Total liabilities | 6,171,213 | 3,851,660 |
Variable Interest Entity [Member] | ||
Current assets | 1,966,067 | 2,674,890 |
Non-current assets | 143,362 | |
Total assets | 2,109,439 | 2,674,890 |
Current liabilities | 3,138,721 | 3,023,805 |
Non-current liabilities | ||
Total liabilities | 3,138,721 | $ 3,023,805 |
Variable Interest Entity Subsidiary [Member] | ||
Current assets | 3,068,108 | |
Non-current assets | ||
Total assets | 3,068,108 | |
Current liabilities | 2,652,928 | |
Non-current liabilities | ||
Total liabilities | $ 2,652,928 |
Summary of Principal Accounti_5
Summary of Principal Accounting Policies (Details 2) - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 29, 2020 | Feb. 28, 2019 | |
Cost of revenue | $ (8,165,535) | $ (1,130,021) | |
Gross Profit | 965,759 | 343,016 | |
Amortization & depreciation | (6,918) | (87,159) | |
General & administrative expenses | (2,663,609) | (2,820,584) | |
Research & Development | (390,288) | ||
Stock compensation expenses | (970,988) | ||
Total operating expenses | (4,031,803) | (2,907,743) | |
Net loss from operations | (3,066,044) | (2,564,727) | |
Other income (expense): | |||
Interest income | 1,319 | 400 | |
Other income | 98,798 | 848 | |
Interest expense | (24,260) | (32,540) | |
Total other income | 65,950 | (348,148) | |
Net Loss | (3,004,365) | $ (2,912,875) | |
Variable Interest Entity [Member] | |||
Revenue | 1,822,081 | ||
Cost of revenue | (1,651,855) | ||
Gross Profit | 170,226 | ||
Amortization & depreciation | (5,504) | ||
General & administrative expenses | (1,282,549) | ||
Research & Development | (114,558) | ||
Stock compensation expenses | |||
Total operating expenses | (1,402,611) | ||
Net loss from operations | (1,232,385) | ||
Other income (expense): | |||
Interest income | 1,058 | ||
Other income | 8,795 | ||
Interest expense | 9,853 | ||
Total other income | |||
Net Loss | $ (1,222,532) | ||
Variable Interest Entity Subsidiary [Member] | |||
Revenue | $ 7,309,213 | ||
Cost of revenue | (6,513,680) | ||
Gross Profit | 795,533 | ||
Amortization & depreciation | |||
General & administrative expenses | (233,072) | ||
Research & Development | (22,193) | ||
Stock compensation expenses | |||
Total operating expenses | (255,265) | ||
Net loss from operations | 540,268 | ||
Other income (expense): | |||
Interest income | 224 | ||
Other income | 9,824 | ||
Interest expense | 10,048 | ||
Total other income | (40,880) | ||
Net Loss | $ 509,436 |
Summary of Principal Accounti_6
Summary of Principal Accounting Policies (Details Narrative) | 12 Months Ended |
Feb. 29, 2020 | |
Minimum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Property, Plant and Equipment, Useful Life | 7 years |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Disclosure Going Concern Details Narrative Abstract | ||
Accumulated Deficit | $ 7,826,754 | $ 4,822,389 |
Net Loss | $ 3,000,094 | $ 2,912,875 |
Revenue (Details)
Revenue (Details) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Revenues | $ 9,131,294 | $ 1,473,037 |
Gaming [Member] | ||
Revenues | 331,233 | |
Mobile Recharge [Member] | ||
Revenues | 1,822,081 | 1,141,804 |
SMS [Member] | ||
Revenues | $ 7,309,213 |
Revenue (Details Narrative)
Revenue (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 9,131,294 | $ 1,473,037 |
Variable Interest Entity [Member] | ||
Increase (Decrease) in Revenue | $ 7,658,257 |
Equipment (Details)
Equipment (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Disclosure Equipment Equipment Details Abstract | ||
Equipment | $ 30,957 | $ 13,450 |
Less: accumulated depreciation | (9,618) | (2,844) |
Net equipment | $ 21,339 | $ 10,606 |
Equipment (Details Narrative)
Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2018 | |
Disclosure Equipment Details Narrative Abstract | ||
Depreciation, Total | $ 6,918 | $ 2,844 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Less: accumulated amortization | $ (200,000) | $ (200,000) |
Net intangible assets | ||
Licensing Agreements [Member] | ||
Gross intangible assets | $ 200,000 | $ 200,000 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Prepayment and deposit | $ 2,483,411 | $ 2,570,724 |
Prepaid Expenses | ||
Deposit Paid / Prepayment | 997,864 | 44,570,540 |
Deposit received | (11,783) | (43,237,936) |
Net Prepaid expenses | 986,081 | 1,332,604 |
Other deposit | 916,242 | 1,238,120 |
Prepayment and deposit | 1,902,323 | 2,570,724 |
Mobile Recharge and SMS | ||
Deposit Paid / Prepayment | 581,088 | |
Deposit received | ||
Net Prepaid expenses | 581,088 | |
Other deposit | ||
Prepayment and deposit | $ 581,088 |
Right-of-use Asset and Lease _3
Right-of-use Asset and Lease Liability (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Disclosure Rightofuse Asset And Lease Liability Details Abstract | ||
Right-of-use assets in exchange for operating lease obligations | $ 6,671 | |
Less: accumulated depreciation | ||
Right-of-use assets, net | 6,671 | |
Operating Lease, Liability, Total | $ 6,671 | |
Weighted-average remaining lease term (in years) (Year) | 2 years | |
Weighted-average discount rate | 2.48% |
Right-of-use Asset and Lease _4
Right-of-use Asset and Lease Liability (Details 2) | Feb. 29, 2020USD ($) |
Disclosure Rightofuse Asset And Lease Liability Details 2Abstract | |
2020 | $ 6,692 |
Thereafter | |
Less: imputed interest | (21) |
Total lease liability | $ 6,671 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - Note Payable [Member | Feb. 29, 2020USD ($) |
Debt Instrument, Face Amount | $ 66,000 |
Debt Instrument, Interest Rate, Stated Percentage | 0.00% |
Common Stock (Details Narrative
Common Stock (Details Narrative) | Jul. 13, 2017shares | Jun. 21, 2017shares | Feb. 29, 2020shares | Feb. 28, 2019shares |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 | |
Consultant [Member] | ||||
Stock Issued During Period, Shares, New Issues | 600,000 | |||
Accredited Investors [Member] | ||||
Stock Issued During Period, Shares, New Issues | 2,562,500 | |||
Finger Motion Company Limited (FMCL) [Member] | ||||
Stock Issued During Period, Shares, New Issues | 12,000,000 | |||
Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
fngr_IncreaseDecreaseInRevenue | ||
Net Loss | $ (3,000,094) | $ (2,912,875) |
Weighted average number of common shares outstanding - basic (in shares) | 25,847,953 | 24,763,753 |
Weighted average number of common shares outstanding - diluted (in shares) | 25,611,305 | 18,604,860 |
Loss per common share - basic (in dollars per share) | $ (0.12) | $ (0.12) |
Loss per common share - diluted (in dollars per share) | $ (0.12) | $ (0.16) |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Notes Payable [Text Block] | ||
U.S. statutory tax rate | 21.00% | 21.00% |
Foreign income not registered in the U.S. | (21.00%) | (21.00%) |
PRC profit tax rate | 25.00% | 25.00% |
Changes in valuation allowance and others | (25.00%) | (25.00%) |
Effective tax rate | 0.00% | 0.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Disclosure Income Taxes Details 2Abstract | ||
Deferred tax asset from operating losses carry-forwards | $ 750,024 | $ 236,331 |
Valuation allowance | (750,024) | (236,331) |
Deferred tax asset, net |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Foreign Profit Tax Rate, Percent | 25.00% | 25.00% |
Domestic Tax Authority [Member] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 21.00% | 21.00% |
Foreign Tax Authority [Member] | Inland Revenue, Hong Kong [Member] | ||
Effective Income Tax Rate Reconciliation, Foreign Profit Tax Rate, Percent | 16.50% | 16.50% |
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member] | ||
Effective Income Tax Rate Reconciliation, Foreign Profit Tax Rate, Percent | 25.00% | 25.00% |
Acquisition (Details)
Acquisition (Details) - Beijing XunLian [Member] | Mar. 08, 2019USD ($) |
Consideration | $ 0 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |
Cash and cash equivalents | 270 |
Deposits, prepayments and other receivables | 863 |
Other payables | (9,882) |
Net liabilities | (8,749) |
Goodwill | $ 8,749 |
Related Parties Transaction (De
Related Parties Transaction (Details) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Li Li [Member] | ||
Ms. Li Li | $ (1,351,107) | $ (1,880,373) |