AB International (ABQQ) 10-Q 22 Jan 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Nov. 30, 2017	Jan. 21, 2018
Document and Entity Information:
Entity Registrant Name	AB INTERNATIONAL GROUP CORP.
Entity Central Index Key	1,605,331
Document Type	10-Q
Document Period End Date	Nov. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		29,650,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Nov. 30, 2017	Aug. 31, 2017
Current Assets
Cash and cash equivalents	$ 341,968	$ 147,164
Accounts receivable	71,552	88,320
Prepaid expenses	30,835	35,835
Total Current Assets	444,355	271,319
Intangible assets, net	450,000	682,712
TOTAL ASSETS	894,355	954,031
Current Liabilities
Accounts payable and accrued liabilities	46,298	168,664
Accrued payroll		2,500
Due to shareholder	1,687	1,613
Tax payable	82,358	55,347
Total Current Liabilities	130,343	228,124
Stockholders’ Equity
Common stock, $0.001 par value, 75,000,000 shares authorized; 29,650,000 shares issued and outstanding	29,650	29,650
Additional paid-in capital	631,693	631,693
Retained Earnings	102,669	64,564
Total Stockholders’ Equity	764,012	725,907
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 894,355	$ 954,031

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Nov. 30, 2017	Aug. 31, 2017
Condensed Consolidated Balance Sheets Parenthetical
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	29,650,000	29,650,000
Common stock, shares outstanding	29,650,000	29,650,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Condensed Consolidated Statements Of Operations
Revenue	$ 40,832
Cost of revenue	33,166
Gross Profit	7,666
OPERATING EXPENSES
General and administrative expenses	31,458	24,846
Related party salary and wages	6,300	7,500
Total Operating Expenses	37,758	32,346
LOSS FROM CONTINUED OPERATIONS	(30,092)	(32,346)
Loss before income taxes	(30,092)	(32,346)
Income Tax Provision
Net loss from continuing operations	(30,092)	(32,346)
Discontinued operations, net of tax benefits
Income from discontinued operations	10,997	37,829
Gain on sale of intangible assets	57,200
INCOME FROM DISCONTINUED OPERATIONS	68,197	37,829
NET INCOME	$ 38,105	$ 5,483
NET INCOME (LOSS) FROM CONTINUED OPERATIONS PER SHARE: BASIC AND DILUTED	$ 0	$ 0
LOSS FROM DISONTINUED OPERATIONS PER SHARE: BASIC AND DILUTED	0	0
NET INCOME PER SHARE: BASIC AND DILUTED	$ 0	$ 0
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED	29,650,000	26,150,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 38,105	$ 5,483
Adjustments to reconcile net income (loss) to net cash from operating activities:
Amortization of intangible asset	36,912	5,000
Gain on sales of intangible assets	(57,200)
Changes in operating assets and liabilities:
Accounts receivable	16,768	(14,629)
Prepaid expenses	5,000	15,833
Accounts payable and accrued liabilities	(122,366)	(71,608)
Accrued payroll	(2,500)
Income taxes payable	27,011
Change in Assets (Liabilities) from discontinued operations		587
Net cash used in operating activities	(58,270)	(59,334)
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of intangible asset	253,000
Net cash provided by investing activities	253,000
CASH FLOWS FROM FINANCING ACTIVITIES
Due to shareholder	74	1,816
Net cash provided by financing activities	74	1,816
Net increase (decrease) in cash and cash equivalents	194,804	(57,518)
Cash and cash equivalents - beginning of period	147,164	166,826
Cash and cash equivalents - end of period	341,968	109,308
Supplemental Cash Flow Disclosures
Cash paid for interest
Cash paid for income taxes

ORGANIZATION AND BUSINESS OPERA

ORGANIZATION AND BUSINESS OPERATIONS	3 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
NOTE 1 – ORGANIZATION AND BUSINESS OPERATIONS	AB INTERNATIONAL GROUP CORP. (the “Company”, “we” or “us”) was incorporated under the laws of the State of Nevada on July 29, 2013 (“Inception”) and originally intended to purchase used cars in the United States and sell them in Kyrgyzstan. The Company’s fiscal year end is August 31. On January 22, 2016, the Company’s former sole officer, who owned 83% of the Company’s outstanding common shares, sold all his common shares to un-related investors. Subsequently, the Company modified its business plan and is currently focusing on the creation of a mobile app marketing engine to be used for movie trailer promotion through a mobile smartphone app in China. On November 16, 2017, the Company sold the copyright and all other rights in a film named “Gong Fu Nv Pai” copyright and the mobile application (Amoney). Currently, the Company is focused on the acquisition and development of intellectual property.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the company’s management, the accompanying unaudited interim financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the company as of November 30, 2017 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended November 30, 2017 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited financial statements should be read in conjunction with the financial statements and related notes thereto included in the company’s Annual Report on Form 10-K for the year ended August 31, 2017 filed with the SEC on January 12, 2018. Basis of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s fully owned subsidiary App Board Limited registered and located in Hong Kong. No intercompany balances or transactions exist during the period ended August 31, 2017. Accounts Receivable Accounts receivable consist of amounts due from promotional services provided. Amounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. No amount for bad debt expense has been recorded by the Company during the three months ended November 30, 2017 and 2016, and no write-off for bad debt were recorded for the three months ended November 30, 2017, and 2016. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” (“ASC-605”), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company has recognized the revenues associated with and license fees from its patent once the criteria has been met, the product has been delivered, and the Company has received payment from the vendor. Basic and Diluted Income (Loss) Per Share The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. No potentially dilutive debt or equity instruments were issued or outstanding during the three months ended November 30, 2017 and 2016.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
NOTE 3 - DISCONTINUED OPERATIONS	On November 16, 2017, the Company sold the copyright and all other rights in a film named “Gong Fu Nv Pai” copyright and the mobile application (Amoney) assets to an unrelated party for $253,000 cash. The sales of intangible assets qualified as a discontinued operation of the Company and accordingly, the Company has excluded results of the operations from its Consolidated Statements of Operations to present this revenue and expenses from these intangible assets in discontinued operations. The following table shows the results of operations of mobile application and copyright for three months ended November 30, 2017 and 2016 which are included in the gain from discontinued operations: Three months Ended November 30, 2017 2016 Revenue $ 49,920 $ 42,829 Cost of revenue 11,912 5,000 Income Tax Provision 27,011 - Gain from discontinued operations $ 10,997 $ 37,829

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
NOTE 4 – INTANGIBLE ASSETS	As of November 30, 2017, and August 31, 2017, the balance of intangible assets are as follows; November 30, August 31, 2017 2017 Mobile app $ - $ 100,000 Patent 500,000 500,000 Copyright - 138,240 500,000 738,240 Accumulated amortization (50,000 ) (55,528 ) Intangible asset, net $ 450,000 $ 682,712 Amortization expenses for three months ended November 30, 2017, and 2016, was $36,912 and $5,000, respectively. During the three months ended November 30, 2017, the Company sold the copyright and all other rights and the mobile application (Amoney) assets to an unrelated party for $253,000. The Company recorded gain on sales of assets of $57,200 as discontinued operations during the three months ended November 30 ,2017.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
NOTE 5 – RELATED PARTY TRANSACTIONS	In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note. During the three months ended November 30, 2017, a shareholder paid a invoice of $74 on behalf of the Company. As at November 30, 2017 and August 31, 2017, the Company owed $1,687 and $1,613 to this shareholder, respectively. The amounts are due on demand, unsecured, and non-interest bearing. During the three months ended November 30, 2017 and 2016, $6,300 and $7,500 was paid to two related parties as salaries and wages.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
NOTE 6 – SUBSEQUENT EVENTS	In December 2017 the Company entered into an agreement with All In One Media Ltd. to provide consulting services to the Company regarding blockchain technology and services in China, and the acquisition of blockchain businesses. In January 2018 the Company entered into an agreement with PacificShore Ventures Inc. to provide M&A consulting services to the Company. In accordance with ASC 855-10, the Company has analyzed its operations subsequent to November 30, 2017 to the date these financial statements were issued and has determined that it does not have any additional material subsequent events to disclose in these financial statements.

SUMMARY OF SIGNIFICANT ACCOUN12

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Nov. 30, 2017
Summary Of Significant Accounting Policies Policies
Basis of Presentation	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the company’s management, the accompanying unaudited interim financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the company as of November 30, 2017 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended November 30, 2017 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited financial statements should be read in conjunction with the financial statements and related notes thereto included in the company’s Annual Report on Form 10-K for the year ended August 31, 2017 filed with the SEC on January 12, 2018.
Basis of Consolidation	The financial statements have been prepared on a consolidated basis, with the Company’s fully owned subsidiary App Board Limited registered and located in Hong Kong. No intercompany balances or transactions exist during the period ended August 31, 2017.
Accounts receivable	Accounts receivable consist of amounts due from promotional services provided. Amounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. No amount for bad debt expense has been recorded by the Company during the three months ended November 30, 2017 and 2016, and no write-off for bad debt were recorded for the three months ended November 30, 2017, and 2016.
Revenue Recognition	The Company recognizes revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” (“ASC-605”), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company has recognized the revenues associated with and license fees from its patent once the criteria has been met, the product has been delivered, and the Company has received payment from the vendor.
Basic and Diluted Income (Loss) Per Share	The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. No potentially dilutive debt or equity instruments were issued or outstanding during the three months ended November 30, 2017 and 2016.

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Nov. 30, 2017
Discontinued Operations Tables
Schedule Of discontinued operations	Three months Ended November 30, 2017 2016 Revenue $ 49,920 $ 42,829 Cost of revenue 11,912 5,000 Income Tax Provision 27,011 - Gain from discontinued operations $ 10,997 $ 37,829

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Nov. 30, 2017
Intangible Assets Tables
Schedule of intangible assets	November 30, August 31, 2017 2017 Mobile app $ - $ 100,000 Patent 500,000 500,000 Copyright - 138,240 500,000 738,240 Accumulated amortization (50,000 ) (55,528 ) Intangible asset, net $ 450,000 $ 682,712

ORGANIZATION AND BUSINESS OPE15

ORGANIZATION AND BUSINESS OPERATIONS (Detail Narrative)	3 Months Ended
	Nov. 30, 2017	Jan. 22, 2016
Organization And Business Operations Detail Narrative
State Country Name	State of Nevada
Entity Incorporation, Date of Incorporation	Jul. 29, 2013
Ownership interest sold by former officer		83.00%

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Revenue	$ 40,832
Cost of revenue	33,166
Income Tax Provision
Gain from discontinued operations	68,197	37,829
Discontinued Operations [Member]
Revenue	49,920	42,829
Cost of revenue	11,912	5,000
Income Tax Provision	27,011
Gain from discontinued operations	$ 10,997	$ 37,829

DISCONTINUED OPERATIONS (Deta17

DISCONTINUED OPERATIONS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 16, 2017	Nov. 30, 2017
Sales of intangible asset		$ 253,000
Unrelated Party [Member]
Sales of intangible asset	$ 253,000	$ 253,000

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Nov. 30, 2017	Aug. 31, 2017
Intangible assets, Gross	$ 500,000	$ 738,240
Accumulated amortization	(50,000)	(55,528)
Intangible asset, net	450,000	682,712
Mobile app [Member]
Intangible assets, Gross		100,000
Patents [Member]
Intangible assets, Gross	500,000	500,000
Copyrights [Member]
Intangible assets, Gross		$ 138,240

INTANGIBLE ASSETS (Detail Narra

INTANGIBLE ASSETS (Detail Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 16, 2017	Nov. 30, 2017	Nov. 30, 2016
Amortization of intangible asset		$ 36,912	$ 5,000
Gain on sale of intangible assets		57,200
Sales of intangible asset		253,000
Unrelated Party [Member]
Sales of intangible asset	$ 253,000	$ 253,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Detail Narrative) - USD ($)	3 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Aug. 31, 2017
Related Party Transactions [Abstract]
Shareholder repaid for operating expenses	$ 74	$ 1,816
Due to shareholder	1,687		$ 1,613
Related party salary and wages	$ 6,300	$ 7,500