Cover
Cover - shares | 9 Months Ended | |
May 31, 2023 | Apr. 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 31, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --08-31 | |
Entity File Number | 000-55979 | |
Entity Registrant Name | AB International Group Corp. | |
Entity Central Index Key | 0001605331 | |
Entity Tax Identification Number | 37-1740351 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 48 Wall Street | |
Entity Address, Address Line Two | Suite 1009 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10005 | |
City Area Code | (212) | |
Local Phone Number | 918-4519 | |
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 Common Stock, Shares Outstanding | 1,174,544,496 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 134,845 | $ 84,223 |
Prepaid expenses | 2,370 | 13,035 |
Account receivable | 310,000 | |
Total Current Assets | 447,215 | 97,258 |
Property and equipment, net | 9,363 | 12,695 |
Right of use operating lease assets, net | 806,208 | 1,004,018 |
Intangible assets, net | 1,983,347 | 3,798,282 |
Purchase deposits for intangible assets, non-current | 881,724 | |
Security deposit | 45,240 | 45,240 |
TOTAL ASSETS | 3,291,373 | 5,839,217 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 120,763 | 293,786 |
Related party payable | 255,415 | 15,127 |
Current portion of obligations under operating leases | 251,884 | 229,813 |
Due to stockholders | 439,266 | 377,398 |
Deferred revenue | 36,775 | 38,000 |
Total Current Liabilities | 1,110,491 | 954,124 |
Obligations under operating leases, non-current | 669,015 | 863,145 |
Total Liabilities | 1,779,506 | 1,817,269 |
Stockholders’ Equity | ||
Common stock, $0.001 par value, 10,000,000,000 shares authorized; 1,174,283,385 and 384,512,583 shares issued and outstanding, as of May 31, 2023 and August 31, 2022, respectively | 1,174,283 | 384,512 |
Additional paid-in capital | 12,077,239 | 12,636,838 |
Accumulated deficit | (11,715,973) | (8,789,901) |
Unearned stock compensation | (23,986) | (209,957) |
Total Stockholders’ Equity | 1,511,867 | 4,021,948 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 3,291,373 | 5,839,217 |
Preferred Class A [Member] | ||
Stockholders’ Equity | ||
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized; | 100 | 100 |
Preferred Class B [Member] | ||
Stockholders’ Equity | ||
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized; | 20 | 20 |
Preferred Class C [Member] | ||
Stockholders’ Equity | ||
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized; | 184 | 336 |
Preferred Class D [Member] | ||
Stockholders’ Equity | ||
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized; |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | May 31, 2023 | Aug. 31, 2022 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 10,000,000,000 | 10,000,000,000 |
Common Stock, Shares, Issued | 1,174,283,385 | 384,512,583 |
Common Stock, Shares, Outstanding | 1,174,283,385 | 384,512,583 |
Preferred Class A [Member] | ||
Preferred Stock, Shares Issued | 100,000 | 100,000 |
Preferred Stock, Shares Outstanding | 100,000 | 100,000 |
Preferred Class B [Member] | ||
Preferred Stock, Shares Issued | 20,000 | 20,000 |
Preferred Stock, Shares Outstanding | 20,000 | 20,000 |
Preferred Class C [Member] | ||
Preferred Stock, Shares Issued | 183,711 | 335,850 |
Preferred Stock, Shares Outstanding | 183,711 | 335,850 |
Preferred Class D [Member] | ||
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 573,389 | $ 256,000 | $ 1,108,640 | $ 2,056,000 |
Cost of revenue | (812,051) | (862,400) | (2,670,002) | (2,235,534) |
Gross Loss | (238,662) | (606,400) | (1,561,362) | (179,534) |
OPERATING EXPENSES | ||||
General and administrative expenses | (361,002) | (350,567) | (1,165,160) | (1,047,621) |
Related party salary and wages | (44,500) | (70,750) | (185,500) | (400,667) |
Total Operating Expenses | (405,502) | (421,317) | (1,350,660) | (1,448,288) |
Loss From Operations | (644,164) | (1,027,717) | (2,912,022) | (1,627,822) |
OTHER INCOME (EXPENSES) | ||||
Interest income | 337 | 495 | ||
Penalty expenses | (141,945) | (141,945) | ||
Total Other Income (Expenses) | 337 | (141,945) | 495 | (141,945) |
Loss Before Income Tax Provision | (643,827) | (1,169,662) | (2,911,527) | (1,769,767) |
Income tax benefit | ||||
NET LOSS | (643,827) | (1,169,662) | (2,911,527) | (1,769,767) |
Preferred shares dividend | (3,916) | (14,504) | (14,545) | (17,343) |
Net loss available to common stockholders | $ (647,743) | $ (1,184,166) | $ (2,926,072) | $ (1,787,110) |
NET LOSS PER SHARE: BASIC | $ 0 | $ 0 | $ 0 | $ 0 |
NET LOSS PER SHARE: DILUTED | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC | 1,066,652,211 | 321,035,615 | 760,304,024 | 267,359,634 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED | 1,066,652,211 | 321,035,615 | 760,304,024 | 267,359,634 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance - August 31, 2022 at Aug. 31, 2021 | $ 226,590 | $ 120 | $ 11,009,517 | $ (6,578,978) | $ (7,473) | $ 4,649,776 |
Shares, Issued at Aug. 31, 2021 | 226,589,735 | 120,000 | ||||
Preferred shares Series C issuance | $ 518 | 440,067 | 440,585 | |||
[custom:SeriesCPreferredSharesIssuedShares] | 518,190 | |||||
Preferred shares series C converted into common shares | $ 29,045 | $ (234) | (28,811) | |||
Stock Issued During Period, Shares, Conversion of Units | 29,044,512 | (234,300) | ||||
Dividend in connection with Preferred shares series C | 156,003 | 156,003 | ||||
[custom:StockIssuedDuringPeriodPenaltyInConnectionSeriesCShares] | ||||||
Preferred shares series D and dividend shares converted into common shares | $ 12,307 | (12,307) | ||||
[custom:StockIssuedDuringPeriodSharesConversionOfUnitsSeriesD] | 12,307,672 | (187) | ||||
Stock based compensation - consultants | $ 45,000 | 576,000 | (297,277) | 323,723 | ||
Stock Issued During Period, Shares, Issued for Services | 45,000,000 | |||||
Net loss | (1,787,110) | (1,787,110) | ||||
Put Shares issued for cash | $ 14,900 | 268,282 | 283,182 | |||
[custom:StockIssuedDuringPeriodPutSharesForCashShares] | 14,900,000 | |||||
Preferred shares series D issuance | 187,000 | 187,000 | ||||
[custom:SeriesDPreferredSharesIssuedShares] | 187 | |||||
Balance -– May 31, 2023 at May. 31, 2022 | $ 327,842 | $ 404 | 12,595,751 | (8,366,088) | (304,750) | 4,253,159 |
Shares, Issued at May. 31, 2022 | 327,841,919 | 403,890 | ||||
Balance - August 31, 2022 at Feb. 28, 2022 | $ 295,158 | $ 542 | 12,398,694 | (7,181,922) | (401,351) | 5,111,121 |
Shares, Issued at Feb. 28, 2022 | 295,158,062 | 542,152 | ||||
Preferred shares Series C issuance | $ 96 | 73,504 | 73,600 | |||
[custom:SeriesCPreferredSharesIssuedShares] | 96,075 | |||||
Preferred shares series C converted into common shares | $ 29,045 | $ (234) | (28,811) | |||
Stock Issued During Period, Shares, Conversion of Units | 29,044,512 | (234,300) | ||||
Dividend in connection with Preferred shares series C | 156,003 | 156,003 | ||||
[custom:StockIssuedDuringPeriodPenaltyInConnectionSeriesCShares] | ||||||
Preferred shares series D and dividend shares converted into common shares | $ 3,639 | (3,639) | ||||
[custom:StockIssuedDuringPeriodSharesConversionOfUnitsSeriesD] | 3,639,345 | (37) | ||||
Stock based compensation - consultants | 96,601 | 96,601 | ||||
Stock Issued During Period, Shares, Issued for Services | ||||||
Net loss | (1,184,166) | (1,184,166) | ||||
Balance -– May 31, 2023 at May. 31, 2022 | $ 327,842 | $ 404 | 12,595,751 | (8,366,088) | (304,750) | 4,253,159 |
Shares, Issued at May. 31, 2022 | 327,841,919 | 403,890 | ||||
Balance - August 31, 2022 at Aug. 31, 2022 | $ 384,512 | $ 456 | 12,636,838 | (8,789,901) | (209,957) | 4,021,948 |
Shares, Issued at Aug. 31, 2022 | 384,512,583 | 455,850 | ||||
Preferred shares Series C issuance | $ 90 | 68,910 | 69,000 | |||
[custom:SeriesCPreferredSharesIssuedShares] | 90,275 | |||||
Preferred shares series C converted into common shares | $ 589,771 | $ (242) | (589,529) | |||
Stock Issued During Period, Shares, Conversion of Units | 589,770,802 | (242,414) | ||||
Dividend in connection with Preferred shares series C | 14,545 | 14,545 | ||||
[custom:StockIssuedDuringPeriodPenaltyInConnectionSeriesCShares] | ||||||
Stock based compensation - consultants | 185,971 | 185,971 | ||||
Stock Issued During Period, Shares, Issued for Services | ||||||
Net loss | (2,926,072) | (2,926,072) | ||||
Issuance of common shares | $ 200,000 | (53,525) | 146,475 | |||
Stock Issued During Period, Shares, New Issues | 200,000,000 | |||||
Balance -– May 31, 2023 at May. 31, 2023 | $ 1,174,283 | $ 304 | 12,077,239 | (11,715,973) | (23,986) | 1,511,867 |
Shares, Issued at May. 31, 2023 | 1,174,283,385 | 303,711 | ||||
Balance - August 31, 2022 at Feb. 28, 2023 | $ 880,905 | $ 369 | 12,366,636 | (11,068,230) | (51,586) | 2,128,094 |
Shares, Issued at Feb. 28, 2023 | 880,904,816 | 368,975 | ||||
Preferred shares series C converted into common shares | $ 293,378 | $ (65) | (293,313) | |||
Stock Issued During Period, Shares, Conversion of Units | 293,378,569 | (65,264) | ||||
Dividend in connection with Preferred shares series C | 3,916 | 3,916 | ||||
[custom:StockIssuedDuringPeriodPenaltyInConnectionSeriesCShares] | ||||||
Stock based compensation - consultants | 27,600 | 27,600 | ||||
Stock Issued During Period, Shares, Issued for Services | ||||||
Net loss | (647,743) | (647,743) | ||||
Balance -– May 31, 2023 at May. 31, 2023 | $ 1,174,283 | $ 304 | $ 12,077,239 | $ (11,715,973) | $ (23,986) | $ 1,511,867 |
Shares, Issued at May. 31, 2023 | 1,174,283,385 | 303,711 |
Consoolidated Statements of Cas
Consoolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
May 31, 2023 | May 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,926,072) | $ (1,787,110) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Executive salaries and consulting fees paid in stock | 185,971 | 323,723 |
Depreciation of fixed asset | 3,332 | 39,902 |
Amortization of intangible asset | 2,519,934 | 2,235,533 |
Non-cash dividend expense for preferred shares | 14,545 | 17,343 |
Non-cash penalty expense | 141,945 | |
Non-cash lease expense | 25,752 | 79,957 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (310,000) | (8,120) |
Related party receivable | 1,439 | |
Prepaid expenses | 10,665 | 11,233 |
Rent security & electricity deposit | (28,733) | |
Purchase deposits refunded (paid) | 420,000 | (1,151,480) |
Purchase of movie and TV series broadcast right and copyright | (243,276) | (708,400) |
Accounts payable and accrued liabilities | (173,023) | 215,622 |
Accounts payable - related party | 6,388 | |
Deferred revenue | (1,225) | |
Net cash used in operating activities | (467,009) | (617,146) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of intangible assets | (280,000) | |
Net cash used in investing activities | (280,000) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Advances from related party | 255,415 | 318,596 |
Repayment to related party | (15,127) | (202,689) |
Advances from stockholders | 569,912 | 40,779 |
Repayment to stockholders | (508,044) | (18,038) |
Proceeds from common stock issuances | 146,475 | 370,422 |
Proceeds from preferred stock C issuances | 69,000 | 440,585 |
Proceeds from preferred stock D issuances | 187,000 | |
Net cash provided by financing activities | 517,631 | 1,136,655 |
Net increase in cash and cash equivalents | 50,622 | 239,509 |
Cash and cash equivalents – beginning of period | 84,223 | 132,253 |
Cash and cash equivalents – end of period | 134,845 | 371,762 |
Supplemental Cash Flow Disclosures | ||
Cash paid for interest | ||
Cash paid for income taxes | ||
Non-Cash Investing and Financing Activities: | ||
Transfer from other receivable to long term prepayment | 644,785 | |
Transfer from purchase deposits to intangible assets | 461,724 | 761,600 |
Additions to ROU assets from operating lease liabilities | $ 1,207,789 |
NOTE 1 _ BASIS OF PRESENTATION
NOTE 1 – BASIS OF PRESENTATION | 9 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
NOTE 1 – BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of AB International Group Corp. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities Exchange Commission. Certain information and footnote disclosures normally included in consolidated financial statements have been omitted pursuant to such rules and regulations. The consolidated balance sheet as of August 31, 2022 derived from the audited consolidated financial statements at that date, but does not include all the information and footnotes required by GAAP. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2022. The unaudited consolidated financial statements as of and for the three and nine months ended May 31, 2023 and 2022, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition, results of operations and cash flows. The results of operations for the three and nine months ended May 31, 2023 and 2022 are not necessarily indicative of the results to be expected for any other interim period or for the entire year. |
NOTE 2 _ SUMMARY OF SIGNIFICANT
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s fully owned subsidiary App Board Limited and AB Cinemas NY, Inc. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Accounts receivable Accounts receivable are presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. No . AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Impairment of Long-lived asset The Company evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350. Such impairment test compares the fair values of assets with their carrying values with an impairment loss recognized when the carrying values exceed fair values. For long-lived assets and intangible assets with finite lives that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Impairment losses are included in the general and administrative expense. There was no , respectively. Foreign Currency Transactions The financial risk arises from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Gains and losses from transactions of foreign currency into U.S. dollars are included in current results of operations. Revenue Recognition The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not The Company derives its revenues primarily from three sources: (1) selling copyrights of movies or TV shows; (2) licensing NFT MMM platform and providing technical service; (3) movie theater admissions and food and beverage sales. Revenue from selling copyrights of movies or TV shows: The Company recognizes revenue when master copy of movie or TV show is delivered, the IP is authorized and transferred to customers. The Company’s contracts with customer are primarily on a fixed-price basis and do not contain cancelable and refund-type provisions. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition (continued) Revenue from licensing NFT MMM platform and providing technical service fee: The Company derives revenue from NFTMM platform license fees, which includes accessing the NFTMM platform and platform data on both app and website. The Company's contract has one year term, and is non-cancelable and non-refundable. In accordance with ASC 606, a 'right to access' license is recognized over the license period. Initial technical service fee comprises of installation, implementation and necessary training required by the customer. These services fees are recognized as the services are delivered at a point in time. Revenue from movie theater admissions and food and beverage sales: The Company recognizes admission revenues based on a gross transaction price. Admissions and food and beverage revenues are recorded at a point in time when a film is exhibited to a customer and when a customer takes possession of food and beverage offerings. The Company defers 100% of the revenue associated with the sales of gift cards and exchange tickets until such time as the items are redeemed or estimated income from non-redemption is recorded. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of May 31, 2023 and August 31, 2022, other than accounts receivable and deferred revenue, the Company had no AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair Value of Financial Instruments ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 – Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 – Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The carrying values of cash, prepayments, accounts receivables, accounts payable and accrued liabilities, related party payable, deferred revenue, and due to stockholders approximate fair value due to their short-term nature. No , 2023 and August 31, 2022 . Basic and Diluted Earnings (Loss) Per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of May 31, 2023, the total number of warrants outstanding was 50,000,000 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements In October 2021, the FASB issued ASU No. 2021-08, “‘Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of operations and statements of cash flows. |
NOTE 3 _ GOING CONCERN
NOTE 3 – GOING CONCERN | 9 Months Ended |
May 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 3 – GOING CONCERN | NOTE 3 – GOING CONCERN The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of May 31 , 2023 , the Company had an accumulated deficit of approximately $11.7 $0.7 the Company incurred a net loss of approximately $2.9 $0.5 . Losses have principally occurred as a result of the substantial resources required for general and administrative expenses associated with our operations. These factors, among others, raise the substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 4 _ PROPERTY AND EQUIPMENT
NOTE 4 – PROPERTY AND EQUIPMENT | 9 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
NOTE 4 – PROPERTY AND EQUIPMENT | NOTE 4 – PROPERTY AND EQUIPMENT The Company capitalized the renovation cost as leasehold improvement and the cost of furniture and appliances as fixed asset. Leasehold improvement relates to renovation and upgrade of the leased office. The depreciation expense was $3,332 $39,902 , respectively. As of May 31 , the balance of property and equipment was as follows: May 31, 2023 August 31, 2022 Leasehold improvement $ 146,304 $ 146,304 Appliances and furniture 25,974 25,974 Total cost 172,278 172,278 Accumulated depreciation (162,915 ) (159,583 ) Property and equipment, net $ 9,363 $ 12,695 |
NOTE 5 _ INTANGIBLE ASSETS
NOTE 5 – INTANGIBLE ASSETS | 9 Months Ended |
May 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
NOTE 5 – INTANGIBLE ASSETS | NOTE 5 – INTANGIBLE ASSETS As of May 31 , the balance of intangible assets was as follows: May 31, 2023 August 31, 2022 Movie copyrights - Love over the world $ 853,333 $ 853,333 Sitcom copyrights - Chujian 640,000 640,000 Movie copyrights - A story as a picture 422,400 422,400 Movie copyrights - Our treasures 936,960 936,960 Movie broadcast right- On the way 256,000 256,000 Movie copyrights - Too simple 1,271,265 1,271,265 Movie copyrights - Confusion 1,024,000 1,024,000 Movie copyrights - Amazing Data 300,000 — Movie copyrights - Nice to meet you 300,000 — TV drama copyright - 20 episodes 295,000 190,000 Movie and TV series broadcast rights 2,439,840 2,439,840 NFT MMM platform 280,000 280,000 Total cost 9,018,798 8,313,798 Accumulated amortization (7,035,451 ) (4,515,516 ) Intangible assets, net $ 1,983,347 $ 3,798,282 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 5 – INTANGIBLE ASSETS (Continued) The amortization expense for the nine months ended was $2,519,934 $2,235,533 Twelve months ending May 31, 2023 Amortization expense 2024 $ 1,741,003 2025 242,344 Total $ 1,983,347 In March 2022, the Company signed a purchase agreement with All In One Media Ltd to acquire the copyrights and broadcast rights for five movies at a price of $1,500,000 $600,000 $356,724 $356,724 $243,276 Per amended agreement, the remaining three movies will be delivered upon receiving the payment of minimum $300,000 per movie from the Company before December 31, 2022. The agreement was terminated on December 31, 2022 In March 2022, the Company signed a purchase agreement with Anyone Pictures Limited to acquire the copyright for broadcasting a 25-episode TV drama series outside of mainland China, at a price of $525,000 the delivery of the remaining 20 standalone episodes. As a result, Anyone Pictures Limited agreed to refund $420,000 On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFTMM platform and platform data on both app and website for one year starting from August 20, 2022 for a monthly license fee of $60,000 $541,225 On May 31, 2023, the Company entered into an agreement with Capitalive Holdings Limited to sell the offline broadcast rights of total 59 movies for a price of $250,000 |
NOTE 6 _ LEASES
NOTE 6 – LEASES | 9 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
NOTE 6 – LEASES | NOTE 6 – LEASES The Company leased certain office space in Hong Kong from Zestv Studios Limited, a Hong Kong entity 100% owned by the Chief Executive Officer Chiyuan Deng, under operating lease for three years $66,048 $66,048 The Company also leased an office space in Singapore under operating lease from April 13, 2021 to March 31, 2022 with monthly rental of $716 one year $20,400 one year $22,440 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 6 – LEASES (Continued) On October 21, 2021, the Company signed a lease agreement to lease “the Mt. Kisco Theatre”, a movie theater, for five years $14,366 Total lease expense for the nine months ended May 31, 2023 and 2022 was $217,140 $215,604 May 31, 2023 August 31, 2022 Right-of-use assets, net $ 806,208 $ 1,004,018 Operating lease liabilities - current $ 251,884 $ 229,813 Operating lease liabilities - non-current 669,015 863,145 Total operating lease liabilities $ 920,899 $ 1,092,958 The weighted average remaining lease terms was 3.46 The following is a schedule of maturities of lease liabilities are as follows: Twelve months ending May 31, 2024 $ 258,064 2025 249,362 2026 254,183 2027 171,641 Total future minimum lease payments 933,250 Less: imputed interest ( 12,351 ) Total $ 920,899 |
NOTE 7 _ PURCHASE DEPOSITS FOR
NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS | 9 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS | NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS The balance of purchase deposits for intangible assets which relates to the acquisition of copyrights and broadcast rights for movies and TV drama was as follows: May 31, 2023 August 31, 2022 Purchase deposit for 25-episode TV drama $ — $ 525,000 Purchase deposit for movies — 356,724 Total purchase deposits for intangible assets $ — $ 881,724 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 8_ RELATED PARTY TRANSACTI
NOTE 8– RELATED PARTY TRANSACTIONS | 9 Months Ended |
May 31, 2023 | |
Related Party Transactions [Abstract] | |
NOTE 8– RELATED PARTY TRANSACTIONS | NOTE 8– RELATED PARTY TRANSACTIONS Due to stockholders In support of the Company’s efforts and cash requirements, it may rely on advances from stockholders 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 stockholders. Amounts due to stockholders 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. Chiyuan Deng, the Chief Executive Officer, and Jianli Deng, the former Chief Financial Officer, as the Company’s stockholders, make advances periodically to the Company for working capital purpose. As of May 31 and August 31, 2022 $439,266 $377,398 Due to related party - Youall Perform Services Ltd. Youall Perform Services Ltd is owned by Jianli Deng, the former Chief Financial Officer. In September 2019, the Company entered into an agreement with Youall Perform Services Ltd for two transactions. 1) The Company pays Youall Perform Services Ltd. 10% $128,000 $108,800 $108,800 $128,000 $108,800 $19,200 , the Company made payment of $12,812 $6,388 Due to related party - Zestv Studios Limited On December 1, 2020, the Company entered an agreement with Zestv Studios Limited, a Hong Kong entity 100% owned by the Chiyuan Deng, the Chief Executive Officer, to grant Zestv Studios Limited the distribution right for the movie “Love over the world” and charge Zestv Studios Limited movie royalties. The Company’s royalty revenue is stipulated to equal 43% of the after-tax movie box office revenue deducting movie issuance costs. The movie box office revenue is tracked by a movie distributor Huaxia Film Distribution Co. Ltd (hereafter “Hua Xia”) in China as it connects with all movie theaters in China and can track the total movie box office revenue online in real time. Although Zestv Studios Limited has paid royalty revenue to the Company, Zestv Studios Limited failed to collect cash from Hua Xia. As of August 31, 2021, the Company had refund payable of $916,922 On June 23, 2022, the Company sold the mainland China copyright and broadcast right of the movie “Too Simple” to Zestv Studios Limited for a price of $750,000 $151,795 $273,913 $15,127 The Company repaid $15,127 working capital needs. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 8– RELATED PARTY TRANSACTIONS (Continued) Due to related party - Zestv Studios Limited (continued) As of May 31, 2023, the Company had balance of $255,415 The Company also rented an office space from Zestv Studios Limited (See Note 6). For the nine months ended May 31, 2023 and 2022, the Company incurred related party office rent expense of $49,536 $49,536 Executives’ salaries On September 11, 2020 and May 24, 2022, the Company entered into two amended employment agreements with Chiyuan Deng, the Chief Executive Officer. Pursuant the amended agreements, the Company amended the compensation to Mr. Deng to include a salary of $180,000 100,000 $0.001 Deng returned 266,667 During the nine months ended the Company incurred total compensation of $153,000 $342,167 $32,500 $58,500 . |
NOTE 9 _ STOCKHOLDERS_ EQUITY
NOTE 9 – STOCKHOLDERS’ EQUITY | 9 Months Ended |
May 31, 2023 | |
Equity [Abstract] | |
NOTE 9 – STOCKHOLDERS’ EQUITY | NOTE 9 – STOCKHOLDERS’ EQUITY Common shares The Company had the following activities during the nine months ended : Increasing authorized number of common shares On October 11, 2022, the Company filed amendment to Articles of Incorporation to increase the authorized number of common shares from 1,000,000,000 10,000,000,000 Conversion of Series C preferred shares to common shares During the three months ended November 30, 2022, the Company issued total 75,037,786 96,075 During the three months ended February 28, 2023, the Company issued total 221,354,447 81,075 During the three months ended May 31, 2023, the Company issued total 293,378,569 65,264 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 9 – STOCKHOLDERS’ EQUITY (Continued) Common shares (continued) Subscription of Common shares On August 2, 2022, the Company entered into a common stock purchase agreement with Alumni Capital LP, a Delaware limited partnership. Pursuant to the agreement, Alumni Capital LP shall purchase $1.0 million The purchase price is number of common stocks in a Purchase Notice issued by the Company multiplied by 75% of the lowest traded price of the Common Stock five Business Days prior to the Closing, which is no later than five business days after the Purchase Notice Date The Company plans to use the proceeds from the sale of the common stocks for general corporate and working capital purposes and acquisitions or assets, businesses or operations or for other purposes that the Board of Directors, in good faith deem to be in the best interest of the Company. The registration of these securities was effective on September 13, 2022. Pursuant to this agreement , during the nine months ended May 31, 2023, Alumni Capital LP subscribed total of 200,000,000 $146,475 As of May 31 and August 31, 2022, the Company had 1,174,283,385 384,512,583 Preferred shares The Company had the following activities during the nine months ended : On September 6, 2022, the Company entered into a securities purchase agreement with an accredited investor, whereby investor purchased from the Company 90,275 $78,500 $69,000 The Company recorded dividend expenses of $14,545 $17,343 , respectively. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 10 _ INCOME TAXES
NOTE 10 – INCOME TAXES | 9 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
NOTE 10 – INCOME TAXES | NOTE 10 – INCOME TAXES The Company and its fully owned subsidiary, AB Cinemas NY, Inc, were incorporated in the United States and are subject to a statutory income tax rate at 21% a statutory income tax rate at 16.5% As of May 31 and August 31, 2022, the components of net deferred tax assets, including a valuation allowance, were as follows: May 31, 2023 August 31, 2022 Deferred tax asset attributable to: Net operating loss carry over $ 1,939,624 $ 1,328,204 Less: valuation allowance ( 1,939,624 ) ( 1,328,204 ) Net deferred tax asset $ — $ — The valuation allowance for deferred tax assets was $ 1,939,624 and $1,328,204 and August 31, 2022, respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of May 31 and August 31, 2022. Reconciliation between the statutory rate and the effective tax rate is as follows for the nine months ended and 2022: Nine months ended May 31, 2023 2022 Federal statutory tax rate 21 % 21 % Change in valuation allowance (21 %) (21 %) Effective tax rate 0 % 0 % During the nine months ended and 2022, the Company and its subsidiaries incurred net losses. As a result, the Company and its subsidiaries did not incur any income tax during the nine months ended and 2022. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited ) |
NOTE 11 _ CONCENTRATION RISK
NOTE 11 – CONCENTRATION RISK | 9 Months Ended |
May 31, 2023 | |
Risks and Uncertainties [Abstract] | |
NOTE 11 – CONCENTRATION RISK | NOTE 11 – CONCENTRATION RISK Concentration For the nine months ended , 49% 23% , 100% For the three months ended , 44% 32% , 100% As of May 31 , two customers accounted for 81% 19% Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000 $121,291 $70,602 $250,000 |
NOTE 12 _ COMMITMENTS AND CONTI
NOTE 12 – COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
NOTE 12 – COMMITMENTS AND CONTINGENCIES | NOTE 12 – COMMITMENTS AND CONTINGENCIES Contingencies From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. There is no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of its operations and there are no proceedings in which any of the Company’s directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Company’s interest. Operating leases The Company has several lease agreements to rent office spaces and movie theatre with its related party and third-party vendors. (See Note 6) AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 13 _ SEGMENT INFORMATION
NOTE 13 – SEGMENT INFORMATION | 9 Months Ended |
May 31, 2023 | |
Segment Reporting [Abstract] | |
NOTE 13 – SEGMENT INFORMATION | NOTE 13 – SEGMENT INFORMATION The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. As the result of business strategic changes, the Company has identified two reportable segments: Copyrights and license (“IP’) segment and cinema segment. The following table presents summary information by segment for the nine months ended May 31, 2023 and 2022, respectively. NOTE 13 - SEGMENT INFORMATION - Summary of Information by Segment j IP Segment Cinema Segment Total Nine months ended Nine months ended Nine months ended May 31 May 31 May 31 2023 2022 2023 2022 2023 2022 Revenue $ 791,225 $ 2,056,000 $ 317,415 $ — $ 1,108,640 $ 2,056,000 Cost of revenue 2,530,435 2,235,534 139,567 — 2,670,002 2,235,534 Gross income (loss) (1,739,210 ) (179,534 ) 177,848 — (1,561,362 ) (179,534 ) Interest income 495 — — — 495 — Depreciation 3,332 39,902 — — 3,332 39,902 Capital expenditure — — — — — — Segment assets 3,276,524 6,820,353 14,849 — 3,291,373 6,820,353 Segment income (loss) $ (3,054,265 ) $ (1,769,767 ) $ 142,738 $ — $ (2,911,527 ) $ (1,769,767 ) The following table presents summary information by segment for the three months ended May 31, 2023 and 2022, respectively. h IP Segment Cinema Segment Total Three months ended Three months ended Three months ended May 31 May 31 May 31 2023 2022 2023 2022 2023 2022 Revenue $ 433,939 $ 256,000 $ 139,450 $ — $ 573,389 $ 256,000 Cost of revenue 751,192 862,400 60,859 — 812,051 862,400 Gross income (loss) (317,253 ) 606,400 78,591 — (238,662 ) 606,400 Interest income 337 — — — 337 — Depreciation 1,108 13,300 — — 1,108 13,300 Capital expenditure — — — — — — Segment assets 3,276,524 6,820,353 14,849 — 3,291,373 6,820,353 Segment income (loss) $ (724,768 ) $ (1,169,662 ) $ 80,941 $ — $ (643,827 ) $ (1,169,662 ) AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 14 _ SUBSEQUENT EVENTS
NOTE 14 – SUBSEQUENT EVENTS | 9 Months Ended |
May 31, 2023 | |
Subsequent Events [Abstract] | |
NOTE 14 – SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued. Software Development Service Agreement On June 8, 2023, the Company signed a software development service agreement a third-party vendor, entrusting the vendor to develop a multimodal AI assistant for the film and television industry. This AI assistant consists of a website and an APP, which are designed to create a digital toll powered by AI that aims to digitize and improve the efficiency and quality of film production. According to the agreement, the vendor shall complete the development within 15 months. The total development fee is $1.5 million. As of the reporting date, the Company has paid $300,000 in accordance with the terms of the agreement. Reverse Stock split On June 12, 2023, the Board of Directors approved a reverse split for the Corporation’s issued and outstanding common stock, which has a par value $0.001 per share. The reserve split ratio has been determined at 1 for 10,000. The effectiveness of this reverse split is contingent upon receiving approval from the Financial Industry Regulatory Authorization (FINRA). |
NOTE 2 _ SUMMARY OF SIGNIFICA_2
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s fully owned subsidiary App Board Limited and AB Cinemas NY, Inc. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Accounts receivable | Accounts receivable Accounts receivable are presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. No . AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Impairment of Long-lived asset | Impairment of Long-lived asset The Company evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350. Such impairment test compares the fair values of assets with their carrying values with an impairment loss recognized when the carrying values exceed fair values. For long-lived assets and intangible assets with finite lives that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Impairment losses are included in the general and administrative expense. There was no , respectively. |
Foreign Currency Transactions | Foreign Currency Transactions The financial risk arises from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Gains and losses from transactions of foreign currency into U.S. dollars are included in current results of operations. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not The Company derives its revenues primarily from three sources: (1) selling copyrights of movies or TV shows; (2) licensing NFT MMM platform and providing technical service; (3) movie theater admissions and food and beverage sales. Revenue from selling copyrights of movies or TV shows: The Company recognizes revenue when master copy of movie or TV show is delivered, the IP is authorized and transferred to customers. The Company’s contracts with customer are primarily on a fixed-price basis and do not contain cancelable and refund-type provisions. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition (continued) Revenue from licensing NFT MMM platform and providing technical service fee: The Company derives revenue from NFTMM platform license fees, which includes accessing the NFTMM platform and platform data on both app and website. The Company's contract has one year term, and is non-cancelable and non-refundable. In accordance with ASC 606, a 'right to access' license is recognized over the license period. Initial technical service fee comprises of installation, implementation and necessary training required by the customer. These services fees are recognized as the services are delivered at a point in time. Revenue from movie theater admissions and food and beverage sales: The Company recognizes admission revenues based on a gross transaction price. Admissions and food and beverage revenues are recorded at a point in time when a film is exhibited to a customer and when a customer takes possession of food and beverage offerings. The Company defers 100% of the revenue associated with the sales of gift cards and exchange tickets until such time as the items are redeemed or estimated income from non-redemption is recorded. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of May 31, 2023 and August 31, 2022, other than accounts receivable and deferred revenue, the Company had no AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 – Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 – Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The carrying values of cash, prepayments, accounts receivables, accounts payable and accrued liabilities, related party payable, deferred revenue, and due to stockholders approximate fair value due to their short-term nature. No , 2023 and August 31, 2022 . |
Basic and Diluted Earnings (Loss) Per Share | Basic and Diluted Earnings (Loss) Per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of May 31, 2023, the total number of warrants outstanding was 50,000,000 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2021, the FASB issued ASU No. 2021-08, “‘Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of operations and statements of cash flows. |
NOTE 4 _ PROPERTY AND EQUIPME_2
NOTE 4 – PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
NOTE 4 - PROPERTY AND EQUIPMENT - Leasehold Improvement | May 31, 2023 August 31, 2022 Leasehold improvement $ 146,304 $ 146,304 Appliances and furniture 25,974 25,974 Total cost 172,278 172,278 Accumulated depreciation (162,915 ) (159,583 ) Property and equipment, net $ 9,363 $ 12,695 |
NOTE 5 _ INTANGIBLE ASSETS (Tab
NOTE 5 – INTANGIBLE ASSETS (Tables) | 9 Months Ended |
May 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
NOTE 5 - INTANGIBLE ASSETS | May 31, 2023 August 31, 2022 Movie copyrights - Love over the world $ 853,333 $ 853,333 Sitcom copyrights - Chujian 640,000 640,000 Movie copyrights - A story as a picture 422,400 422,400 Movie copyrights - Our treasures 936,960 936,960 Movie broadcast right- On the way 256,000 256,000 Movie copyrights - Too simple 1,271,265 1,271,265 Movie copyrights - Confusion 1,024,000 1,024,000 Movie copyrights - Amazing Data 300,000 — Movie copyrights - Nice to meet you 300,000 — TV drama copyright - 20 episodes 295,000 190,000 Movie and TV series broadcast rights 2,439,840 2,439,840 NFT MMM platform 280,000 280,000 Total cost 9,018,798 8,313,798 Accumulated amortization (7,035,451 ) (4,515,516 ) Intangible assets, net $ 1,983,347 $ 3,798,282 |
NOTE 5 - INTANGIBLE ASSETS - Estimated Amortization Expense | Twelve months ending May 31, 2023 Amortization expense 2024 $ 1,741,003 2025 242,344 Total $ 1,983,347 |
NOTE 6 _ LEASES (Tables)
NOTE 6 – LEASES (Tables) | 9 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
NOTE 6 - LEASES - Rights-to-use Lease Assets | May 31, 2023 August 31, 2022 Right-of-use assets, net $ 806,208 $ 1,004,018 Operating lease liabilities - current $ 251,884 $ 229,813 Operating lease liabilities - non-current 669,015 863,145 Total operating lease liabilities $ 920,899 $ 1,092,958 |
NOTE 6 - LEASES - Future Lease Payments | Twelve months ending May 31, 2024 $ 258,064 2025 249,362 2026 254,183 2027 171,641 Total future minimum lease payments 933,250 Less: imputed interest ( 12,351 ) Total $ 920,899 |
NOTE 7 _ PURCHASE DEPOSITS FO_2
NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS (Tables) | 9 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
NOTE 7 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments | May 31, 2023 August 31, 2022 Purchase deposit for 25-episode TV drama $ — $ 525,000 Purchase deposit for movies — 356,724 Total purchase deposits for intangible assets $ — $ 881,724 |
NOTE 10 _ INCOME TAXES (Tables)
NOTE 10 – INCOME TAXES (Tables) | 9 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
NOTE 11 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities | May 31, 2023 August 31, 2022 Deferred tax asset attributable to: Net operating loss carry over $ 1,939,624 $ 1,328,204 Less: valuation allowance ( 1,939,624 ) ( 1,328,204 ) Net deferred tax asset $ — $ — |
NOTE 10 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation | Nine months ended May 31, 2023 2022 Federal statutory tax rate 21 % 21 % Change in valuation allowance (21 %) (21 %) Effective tax rate 0 % 0 % |
NOTE 13 _ SEGMENT INFORMATION (
NOTE 13 – SEGMENT INFORMATION (Tables) | 9 Months Ended |
May 31, 2023 | |
Segment Reporting [Abstract] | |
NOTE 13 - SEGMENT INFORMATION - Summary of Information by Segment | The following table presents summary information by segment for the nine months ended May 31, 2023 and 2022, respectively. NOTE 13 - SEGMENT INFORMATION - Summary of Information by Segment j IP Segment Cinema Segment Total Nine months ended Nine months ended Nine months ended May 31 May 31 May 31 2023 2022 2023 2022 2023 2022 Revenue $ 791,225 $ 2,056,000 $ 317,415 $ — $ 1,108,640 $ 2,056,000 Cost of revenue 2,530,435 2,235,534 139,567 — 2,670,002 2,235,534 Gross income (loss) (1,739,210 ) (179,534 ) 177,848 — (1,561,362 ) (179,534 ) Interest income 495 — — — 495 — Depreciation 3,332 39,902 — — 3,332 39,902 Capital expenditure — — — — — — Segment assets 3,276,524 6,820,353 14,849 — 3,291,373 6,820,353 Segment income (loss) $ (3,054,265 ) $ (1,769,767 ) $ 142,738 $ — $ (2,911,527 ) $ (1,769,767 ) The following table presents summary information by segment for the three months ended May 31, 2023 and 2022, respectively. h IP Segment Cinema Segment Total Three months ended Three months ended Three months ended May 31 May 31 May 31 2023 2022 2023 2022 2023 2022 Revenue $ 433,939 $ 256,000 $ 139,450 $ — $ 573,389 $ 256,000 Cost of revenue 751,192 862,400 60,859 — 812,051 862,400 Gross income (loss) (317,253 ) 606,400 78,591 — (238,662 ) 606,400 Interest income 337 — — — 337 — Depreciation 1,108 13,300 — — 1,108 13,300 Capital expenditure — — — — — — Segment assets 3,276,524 6,820,353 14,849 — 3,291,373 6,820,353 Segment income (loss) $ (724,768 ) $ (1,169,662 ) $ 80,941 $ — $ (643,827 ) $ (1,169,662 ) |
NOTE 2 _ SUMMARY OF SIGNIFICA_3
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Feb. 28, 2023 | Aug. 31, 2022 | |
Accounting Policies [Abstract] | ||||||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 0 | $ 0 | $ 0 | $ 0 | ||
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill) | 0 | $ 0 | 0 | $ 0 | ||
Contract with Customer, Asset, after Allowance for Credit Loss | 0 | 0 | $ 0 | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ 0 | $ 0 | $ 0 | |||
Warrants and Rights Outstanding | $ 50,000,000 |
NOTE 3 _ GOING CONCERN (Details
NOTE 3 – GOING CONCERN (Details Narrative) | 9 Months Ended |
May 31, 2023 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
[custom:RetainedEarningsAccumulatedDeficitEstimated-0] | $ 11,700,000 |
Banking Regulation, Total Capital, Actual | 700,000 |
[custom:NetIncomeLossEstimated] | 2,900,000 |
[custom:NetCashUsedInOperationsApproximate] | $ 500,000 |
NOTE 4 - PROPERTY AND EQUIPMENT
NOTE 4 - PROPERTY AND EQUIPMENT - Leasehold Improvement (Details) - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvement | $ 146,304 | $ 146,304 |
Appliances and furniture | 25,974 | 25,974 |
Total cost | 172,278 | 172,278 |
Accumulated depreciation | (162,915) | (159,583) |
Property and equipment, net | $ 9,363 | $ 12,695 |
NOTE 4 _ PROPERTY AND EQUIPME_3
NOTE 4 – PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 1,108 | $ 13,300 | $ 3,332 | $ 39,902 |
NOTE 5 - INTANGIBLE ASSETS (Det
NOTE 5 - INTANGIBLE ASSETS (Details) - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total cost | $ 9,018,798 | $ 8,313,798 |
Accumulated amortization | 7,035,451 | 4,515,516 |
Intangible assets, net | 1,983,347 | 3,798,282 |
Movie Copyright Love Over World [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 853,333 | 853,333 |
Movie Copyright Chujian [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 640,000 | 640,000 |
Movie Copyright A Story Of A Picture [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 422,400 | 422,400 |
Movie Copyright Our Treasures [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 936,960 | 936,960 |
Movie Copyright On The Way [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 256,000 | 256,000 |
Movie Copyright Too Simple [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,271,265 | 1,271,265 |
Movie Copyright Confusion [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,024,000 | 1,024,000 |
Movie Copyright Amazing Data [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 300,000 | |
Movie Copyright Amazing Data Membe [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ||
Movie Copyright Nice To Meet You [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 300,000 | |
Movie Copyright T V Drama [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 295,000 | 190,000 |
Movie And T V Broadcast [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,439,840 | 2,439,840 |
N F T Platform [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 280,000 | $ 280,000 |
NOTE 5 - INTANGIBLE ASSETS - Es
NOTE 5 - INTANGIBLE ASSETS - Estimated Amortization Expense (Details) | May 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling 12 Months | $ 1,741,003 |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 242,344 |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three | $ 1,983,347 |
NOTE 5 _ INTANGIBLE ASSETS (Det
NOTE 5 – INTANGIBLE ASSETS (Details Narrative) - USD ($) | 4 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 | May 31, 2023 | May 31, 2022 | Dec. 31, 2022 | Aug. 31, 2022 | Nov. 30, 2022 | Aug. 20, 2022 | Mar. 31, 2022 | |
Indefinite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of Intangible Assets | $ 2,519,934 | $ 2,235,533 | ||||||
Accounts Payable, Other, Current | 439,266 | $ 377,398 | ||||||
N F T M M M M Monthly [Member] | ||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||
Sales-type Lease, Lease Receivable | $ 60,000 | |||||||
N F T M M M Platform [Member] | ||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||
Proceeds from License Fees Received | 541,225 | |||||||
Fifty Nine Movies Capitalive Holdings [Member] | ||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||
Sales-type Lease, Lease Receivable | 250,000 | |||||||
Five Movies Copyright [Member] | ||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||
Asset Acquisition, Contingent Consideration, Liability | $ 1,500,000 | |||||||
Amazing Data And Nice To Meet You [Member] | ||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||
Asset Acquisition, Contingent Consideration, Liability | $ 600,000 | |||||||
Asset Acquisition, Consideration Transferred | $ 356,724 | |||||||
Finite-Lived Intangible Assets Acquired | $ 356,724 | |||||||
Accounts Payable, Other, Current | $ 243,276 | $ 243,276 | ||||||
Loss Contingency, Settlement Agreement, Terms | Per amended agreement, the remaining three movies will be delivered upon receiving the payment of minimum $300,000 per movie from the Company before December 31, 2022. The agreement was terminated on December 31, 2022 | |||||||
T V Drama Series [Member] | ||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||
Asset Acquisition, Contingent Consideration, Liability | $ 525,000 | |||||||
Customer Refundable Fees, Refund Payments | $ 420,000 |
NOTE 6 - LEASES - Rights-to-use
NOTE 6 - LEASES - Rights-to-use Lease Assets (Details) - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Leases [Abstract] | ||
Right-of-use assets, net | $ 806,208 | $ 1,004,018 |
Operating lease liabilities - current | 251,884 | 229,813 |
Operating lease liabilities - non-current | 669,015 | 863,145 |
Total operating lease liabilities | $ 920,899 | $ 1,092,958 |
NOTE 6 - LEASES - Future Lease
NOTE 6 - LEASES - Future Lease Payments (Details) - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Leases [Abstract] | ||
Operating Leases, Future Minimum Payments, Due in Rolling Year Two | $ 258,064 | |
Operating Leases, Future Minimum Payments, Due in Rolling Year Three | 249,362 | |
Operating Leases, Future Minimum Payments, Due in Rolling Year Four | 254,183 | |
Operating Leases, Future Minimum Payments, Due in Rolling Year Five | 171,641 | |
Lessee, Operating Lease, Liability, to be Paid | 933,250 | |
Receivable with Imputed Interest, Discount | 12,351 | |
Operating Lease, Liability | $ 920,899 | $ 1,092,958 |
NOTE 6 _ LEASES (Details Narrat
NOTE 6 – LEASES (Details Narrative) - USD ($) | 9 Months Ended | ||||||||
May 31, 2023 | May 31, 2022 | Sep. 01, 2022 | Aug. 31, 2022 | May 01, 2022 | Oct. 21, 2021 | Sep. 01, 2021 | Apr. 13, 2021 | May 01, 2019 | |
Other Commitments [Line Items] | |||||||||
Accrued Rent, Current | $ 251,884 | $ 229,813 | |||||||
Operating Leases, Rent Expense, Net | $ 217,140 | $ 215,604 | |||||||
Operating Lease, Weighted Average Remaining Lease Term | 3 years 5 months 15 days | ||||||||
Hong Kong Lease [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Lessee, Operating Lease, Term of Contract | 3 years | ||||||||
Operating Leases, Future Minimum Payments Due, Next 12 Months | $ 66,048 | $ 66,048 | |||||||
Operating Leases, Rent Expense, Net | $ 49,536 | $ 49,536 | |||||||
Singapore Office [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Accrued Rent, Current | $ 716 | ||||||||
New York Lease [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Lessee, Operating Lease, Term of Contract | 1 year | ||||||||
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 20,400 | ||||||||
New York Lease Renewal [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Lessee, Operating Lease, Term of Contract | 1 year | ||||||||
Operating Leases, Future Minimum Payments Due, Next 12 Months | $ 22,440 | ||||||||
Kisco Theatre [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Lessee, Operating Lease, Term of Contract | 5 years | ||||||||
Accrued Rent, Current | $ 14,366 |
NOTE 7 - PURCHASE DEPOSITS FOR
NOTE 7 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments (Details) - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Prepaid Expense and Other Assets | $ 881,724 | |
T V Drama Series Copyright [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Prepaid Expense and Other Assets | 525,000 | |
Five Movies Copyright [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Prepaid Expense and Other Assets | 356,724 | |
Total Copyright Prepayment [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Prepaid Expense and Other Assets | $ 881,724 |
NOTE 8_ RELATED PARTY TRANSAC_2
NOTE 8– RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 11, 2020 | Sep. 11, 2020 | Jul. 01, 2020 | Jun. 23, 2022 | Sep. 30, 2019 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2020 | Jun. 30, 2022 | Aug. 31, 2021 | Jan. 01, 2021 | |
Related Party Transaction [Line Items] | ||||||||||||
Accounts Payable, Other, Current | $ 439,266 | $ 377,398 | ||||||||||
Accounts Payable and Accrued Liabilities, Current | 120,763 | $ 293,786 | ||||||||||
Operating Leases, Rent Expense, Net | $ 217,140 | $ 215,604 | ||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||||||
Chief Executive Officer [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Accrued Salaries, Current | $ 180,000 | $ 180,000 | ||||||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 100,000 | |||||||||||
Chief Executive Officer [Member] | Series A Preferred Stock [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||||||
C E O And C F O [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payments to Employees | $ 153,000 | 342,167 | ||||||||||
Chief Investment Officer [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payments to Employees | 32,500 | 58,500 | ||||||||||
Hong Kong Lease [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Operating Leases, Rent Expense, Net | 49,536 | $ 49,536 | ||||||||||
Zestv Studios [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt Instrument, Periodic Payment | 15,127 | $ 151,795 | ||||||||||
Proceeds from Sale of Intangible Assets | $ 750,000 | |||||||||||
Zestv Studios Second Loan [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 273,913 | |||||||||||
Other Loans Payable | $ 15,127 | |||||||||||
Zestv Studios Second Total [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Other Loans Payable | 255,415 | |||||||||||
C E O [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
[custom:SharesReturnedToCompany] | 266,667 | |||||||||||
Guangzhou Yuezhi Computer [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 10% | |||||||||||
Capitalized Computer Software, Additions | $ 128,000 | |||||||||||
Payments to Develop Software | 108,800 | |||||||||||
Research and Development Expense | $ 108,800 | |||||||||||
Debt Instrument, Periodic Payment | 12,812 | |||||||||||
Youall Perform Services L T D [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Capitalized Computer Software, Additions | $ 128,000 | |||||||||||
Payments to Develop Software | $ 108,800 | |||||||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Outstanding Balance | $ 19,200 | |||||||||||
Accounts Payable and Accrued Liabilities, Current | $ 6,388 | |||||||||||
Zestv Studios [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Customer Refund Liability, Current | $ 916,922 |
NOTE 9 _ STOCKHOLDERS_ EQUITY (
NOTE 9 – STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 06, 2022 | Aug. 02, 2022 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Oct. 11, 2022 | Oct. 10, 2022 | Aug. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Common Stock, Shares Authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 1,000,000,000 | 10,000,000,000 | ||||||
Proceeds from Issuance of Common Stock | $ 146,475 | $ 370,422 | |||||||||
Common Stock, Shares, Issued | 1,174,283,385 | 1,174,283,385 | 384,512,583 | ||||||||
Common Stock, Shares, Outstanding | 1,174,283,385 | 1,174,283,385 | 384,512,583 | ||||||||
[custom:SeriesCPreferredSharesIssuedAmount] | $ 73,600 | $ 69,000 | 440,585 | ||||||||
Dividend, Share-Based Payment Arrangement | $ 14,545 | $ 17,343 | |||||||||
Preferred Class C [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Conversion of Stock, Shares Converted | 65,264 | 81,075 | 96,075 | ||||||||
Series C Preferred Stock [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
[custom:SeriesCPreferredSharesIssuedShares] | 90,275 | ||||||||||
[custom:SeriesCPreferredSharesIssuedAmount] | $ 78,500 | ||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 69,000 | ||||||||||
Common Stock [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 293,378,569 | 221,354,447 | 75,037,786 | ||||||||
[custom:SeriesCPreferredSharesIssuedShares] | |||||||||||
[custom:SeriesCPreferredSharesIssuedAmount] | |||||||||||
Alumni Capital [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned | $ 1,000,000 | ||||||||||
Debt Instrument, Convertible, Associated Derivative Transactions, Description | The purchase price is number of common stocks in a Purchase Notice issued by the Company multiplied by 75% of the lowest traded price of the Common Stock five Business Days prior to the Closing, which is no later than five business days after the Purchase Notice Date | ||||||||||
Common Stock, Shares Subscribed but Unissued | 200,000,000 | ||||||||||
Proceeds from Issuance of Common Stock | $ 146,475 |
NOTE 11 - INCOME TAXES - Schedu
NOTE 11 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | May 31, 2023 | Aug. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 1,939,624 | $ 1,328,204 |
Deferred Tax Assets, Valuation Allowance | 1,939,624 | 1,328,204 |
Deferred Tax Assets, Net of Valuation Allowance |
NOTE 10 - INCOME TAXES - Schedu
NOTE 10 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 9 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | 21% | 21% |
Change in valuation allowance | (21.00%) | (21.00%) |
Effective tax rate | 0% | 0% |
NOTE 10 _ INCOME TAXES (Details
NOTE 10 – INCOME TAXES (Details Narrative) - USD ($) | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | |
Deferred Tax Assets, Valuation Allowance | $ 1,939,624 | $ 1,328,204 | |
Hong Kong Tax Rate [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% |
NOTE 11 _ CONCENTRATION RISK (D
NOTE 11 – CONCENTRATION RISK (Details Narrative) - USD ($) | 9 Months Ended | 15 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | |
Concentration Risk [Line Items] | |||||
[custom:HongKongDepositProtection-0] | $ 64,000 | $ 64,000 | |||
Cash Equivalents, at Carrying Value | 121,291 | 121,291 | $ 70,602 | ||
Cash, FDIC Insured Amount | $ 250,000 | $ 250,000 | |||
Revenue Customer One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 49% | 100% | 44% | 100% | |
Revenue Customer Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 23% | 32% | |||
Accounts Receivable One Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 81% | ||||
Accounts Receivable Two Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 19% |
NOTE 13 - SEGMENT INFORMATION -
NOTE 13 - SEGMENT INFORMATION - Summary of Information by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 573,389 | $ 256,000 | $ 1,108,640 | $ 2,056,000 |
Cost of revenue | 812,051 | 862,400 | 2,670,002 | 2,235,534 |
Gross income (loss) | (238,662) | (606,400) | (1,561,362) | (179,534) |
Interest income | 337 | 495 | ||
Depreciation | 1,108 | 13,300 | 3,332 | 39,902 |
Capital expenditure | ||||
Segment assets | 3,291,373 | 6,820,353 | 3,291,373 | 6,820,353 |
Segment income (loss) | (643,827) | (1,169,662) | (2,911,527) | (1,769,767) |
Gross income (loss) | (238,662) | 606,400 | ||
I P Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 433,939 | 256,000 | 791,225 | 2,056,000 |
Cost of revenue | 751,192 | 862,400 | 2,530,435 | 2,235,534 |
Gross income (loss) | (1,739,210) | (179,534) | ||
Interest income | 337 | 495 | ||
Depreciation | 1,108 | 13,300 | 3,332 | 39,902 |
Capital expenditure | ||||
Segment assets | 3,276,524 | 6,820,353 | 3,276,524 | 6,820,353 |
Segment income (loss) | (724,768) | (1,169,662) | (3,054,265) | (1,769,767) |
Gross income (loss) | (317,253) | 606,400 | ||
Cinema Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 139,450 | 317,415 | ||
Cost of revenue | 60,859 | 139,567 | ||
Gross income (loss) | 177,848 | |||
Interest income | ||||
Depreciation | ||||
Capital expenditure | ||||
Segment assets | 14,849 | 14,849 | ||
Segment income (loss) | 80,941 | $ 142,738 | ||
Gross income (loss) | $ 78,591 |