Cover
Cover - shares | 6 Months Ended | |
Feb. 29, 2024 | Apr. 15, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Feb. 29, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
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 | 144 Main Street | |
Entity Address, City or Town | Mt. Kisco | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10549 | |
City Area Code | (914) | |
Local Phone Number | 202-3108 | |
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 | 2,332,226,432 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 29, 2024 | Aug. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 33,665 | $ 117,096 |
Prepaid expenses | 30,000 | |
Total Current Assets | 63,665 | 117,096 |
Property and equipment, net | 6,038 | 8,254 |
Right of use operating lease assets, net | 595,619 | 696,380 |
Intangible assets, net | 1,078,417 | 1,455,110 |
Purchase deposits for intangible assets, non-current | 300,000 | |
Security deposit | 46,006 | 45,240 |
TOTAL ASSETS | 1,789,745 | 2,622,080 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 145,973 | 156,763 |
Accounts payable and accrued liabilities - related party | 6,388 | 6,388 |
Loan from related parties | 319,551 | 748,285 |
Current portion of obligations under operating leases | 244,066 | 211,507 |
Deferred revenue | 82,600 | |
Total Current Liabilities | 798,578 | 1,122,943 |
Obligations under operating leases, non-current | 485,715 | 608,149 |
Total Liabilities | 1,284,293 | 1,731,092 |
Stockholders’ Equity | ||
Common stock, $0.001 par value, 10,000,000,000 shares authorized; 2,331,965,321 and 1,285,283,385 shares issued and outstanding, as of February 29, 2024 and August 31, 2023, respectively | 2,331,965 | 1,285,283 |
Additional paid-in capital | 11,012,704 | 11,993,408 |
Accumulated deficit | (12,839,317) | (12,387,998) |
Total Stockholders’ Equity | 505,452 | 890,988 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 1,789,745 | 2,622,080 |
Preferred Class A [Member] | ||
Stockholders’ Equity | ||
Preferred Stock, Value, Issued | 100 | 100 |
Preferred Class B [Member] | ||
Stockholders’ Equity | ||
Preferred Stock, Value, Issued | 20 | |
Preferred Class C [Member] | ||
Stockholders’ Equity | ||
Preferred Stock, Value, Issued | 175 | |
Preferred Class D [Member] | ||
Stockholders’ Equity | ||
Preferred Stock, Value, Issued |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 29, 2024 | Aug. 31, 2023 |
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 | 2,331,965,321 | 1,285,283,385 |
Common Stock, Shares, Outstanding | 2,331,965,321 | 1,285,283,385 |
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 | 0 | 20,000 |
Preferred Stock, Shares Outstanding | 0 | 20,000 |
Preferred Class C [Member] | ||
Preferred Stock, Shares Issued | 0 | 174,421 |
Preferred Stock, Shares Outstanding | 0 | 174,421 |
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 | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
REVENUE | ||||
Copyrights and license | $ 171,001 | $ 177,286 | $ 885,289 | $ 357,286 |
Theatre admissions and food and beverage sales | 111,905 | 121,153 | 199,364 | 177,965 |
Consulting services | 102,347 | 102,347 | ||
Total revenue | 385,253 | 298,439 | 1,187,000 | 535,251 |
OPERATING COSTS AND EXPENSES | ||||
Amortization expenses | (560,674) | (855,744) | (1,072,483) | (1,779,243) |
Theatre operating costs | (62,726) | (56,304) | (104,081) | (78,708) |
General and administrative expenses | (249,924) | (379,645) | (511,616) | (804,158) |
Related party salary and wages | (70,500) | (15,049) | (141,000) | |
Total Operating Costs And Expenses | (873,324) | (1,362,193) | (1,703,229) | (2,803,109) |
Loss From Operations | (488,071) | (1,063,754) | (516,229) | (2,267,858) |
Other income | ||||
Interest income | 57 | 79 | 694 | 158 |
Interest expense – related party | (6,905) | (20,784) | ||
Total Other Income | (6,848) | 79 | 64,910 | 158 |
Loss Before Income Tax Benefit | (494,919) | (1,063,675) | (451,319) | (2,267,700) |
Income tax benefit | ||||
NET LOSS | (494,919) | (1,063,675) | (451,319) | (2,267,700) |
Preferred shares dividend | (4,864) | (10,629) | ||
Net loss available to common stockholders | $ (494,919) | $ (1,068,539) | $ (451,319) | $ (2,278,329) |
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 | 2,502,404,882 | 728,656,133 | 2,245,380,603 | 604,591,133 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED | 2,502,404,882 | 728,656,133 | 2,245,380,603 | 604,591,133 |
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, 2023 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 converted into common shares | $ 296,393 | $ (177) | (296,216) | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 296,392,233 | (177,150) | ||||
Dividend in connection with Preferred shares series C | 10,629 | 10,629 | ||||
Stock Issued During Period, Shares, Other | ||||||
Common shares issued to officers for services | 158,371 | 158,371 | ||||
Stock Issued During Period, Shares, Issued for Services | ||||||
Net loss | (2,278,329) | (2,278,329) | ||||
Issuance of common shares | $ 200,000 | (53,525) | 146,475 | |||
Stock Issued During Period, Shares, New Issues | 200,000,000 | |||||
Series C Preferred Shares issued | $ 90 | 68,910 | 69,000 | |||
[custom:SeriesCPreferredSharesIssuedShares] | 90,275 | |||||
Imputed Interest | ||||||
Balance – February 29, 2024 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 | ||||
Balance – August 31, 2023 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 | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 75,037,786 | |||||
Balance – February 29, 2024 at Nov. 30, 2023 | $ 2,566,965 | $ 120 | 10,770,780 | (12,344,398) | 993,467 | |
Shares, Issued at Nov. 30, 2023 | 2,566,965,321 | 120,000 | ||||
Balance – August 31, 2023 at Nov. 30, 2022 | $ 659,550 | $ 450 | 12,583,045 | (9,999,691) | (127,157) | 3,116,197 |
Shares, Issued at Nov. 30, 2022 | 659,550,369 | 450,050 | ||||
Preferred shares series C converted into common shares | $ 221,355 | $ (81) | (221,274) | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 221,354,447 | (81,075) | ||||
Dividend in connection with Preferred shares series C | 4,865 | 4,865 | ||||
Stock Issued During Period, Shares, Other | ||||||
Common shares issued to officers for services | 75,571 | 75,571 | ||||
Stock Issued During Period, Shares, Issued for Services | ||||||
Net loss | (1,068,539) | (1,068,539) | ||||
Balance – February 29, 2024 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 | ||||
Balance – August 31, 2023 at Aug. 31, 2023 | $ 1,285,283 | $ 295 | 11,993,408 | (12,387,998) | 890,988 | |
Shares, Issued at Aug. 31, 2023 | 1,285,283,385 | 294,421 | ||||
Preferred shares series C converted into common shares | $ 1,056,682 | $ (175) | (1,056,507) | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,056,681,936 | (174,421) | ||||
Stock Issued During Period, Shares, Issued for Services | 225,000,000 | |||||
Net loss | (451,319) | (451,319) | ||||
Preferred shares series B cancellation | $ (20) | 20 | ||||
[custom:StockCancelledDuringPeriodSharesSeriesBPreferred] | (20,000) | |||||
Common shares cancellation | $ (235,000) | 235,000 | ||||
[custom:StockCancelledDuringPeriodSharesCommonShares] | (235,000,000) | |||||
Imputed Interest | 20,783 | 20,783 | ||||
[custom:ReceivableWithInputedInterestShares] | ||||||
Issuance of restricted common shares to officer for service | $ 225,000 | (180,000) | 45,000 | |||
Balance – February 29, 2024 at Feb. 29, 2024 | $ 2,331,965 | $ 100 | 11,012,704 | (12,839,317) | 505,452 | |
Shares, Issued at Feb. 29, 2024 | 2,331,965,321 | 100,000 | ||||
Balance – August 31, 2023 at Nov. 30, 2023 | $ 2,566,965 | $ 120 | 10,770,780 | (12,344,398) | 993,467 | |
Shares, Issued at Nov. 30, 2023 | 2,566,965,321 | 120,000 | ||||
Net loss | (494,919) | (494,919) | ||||
Preferred shares series B cancellation | $ (20) | 20 | ||||
[custom:StockCancelledDuringPeriodSharesSeriesBPreferred] | (20,000) | |||||
Common shares cancellation | $ (235,000) | 235,000 | ||||
[custom:StockCancelledDuringPeriodSharesCommonShares] | (235,000,000) | |||||
Imputed Interest | 6,904 | 6,904 | ||||
[custom:ReceivableWithInputedInterestShares] | ||||||
Balance – February 29, 2024 at Feb. 29, 2024 | $ 2,331,965 | $ 100 | $ 11,012,704 | $ (12,839,317) | $ 505,452 | |
Shares, Issued at Feb. 29, 2024 | 2,331,965,321 | 100,000 |
Consoolidated Statements of Cas
Consoolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (451,319) | $ (2,278,329) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Executive salaries and consulting fees paid in stock | 158,371 | |
Depreciation of fixed asset | 2,216 | 2,224 |
Amortization of intangible asset | 1,072,482 | 1,779,243 |
Gain from sales of software in progress | (85,000) | |
Imputed interest on officer loan | 20,783 | |
Non-cash dividend expense for preferred shares | 10,629 | |
Non-cash lease expense | 10,886 | 17,167 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (60,000) | |
Prepaid expenses | (30,000) | 3,555 |
Rent security & electricity deposit | (766) | |
Other receivable | 120,000 | |
Purchase of movie and TV series broadcast right and copyright | (695,789) | (243,276) |
Accounts payable and accrued liabilities | 34,210 | (161,909) |
Deferred revenue | 82,600 | 2,715 |
Net cash used in operating activities | (39,697) | (664,737) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Loan proceeds from (repayment to) related parties | (43,734) | 530,923 |
Proceeds from common stock issuances | 146,475 | |
Proceeds from preferred share C issuances | 69,000 | |
Net cash provided by financing activities | (43,734) | 746,398 |
Net increase (decrease) in cash and cash equivalents | (83,431) | 81,661 |
Cash and cash equivalents – beginning of period | 117,096 | 84,223 |
Cash and cash equivalents – end of period | 33,665 | 165,884 |
Supplemental Cash Flow Disclosures | ||
Cash paid for interest | ||
Cash paid for income taxes | ||
Non-Cash Investing and Financing Activities: | ||
Settlement of accrued CEO salaries with common stock | 45,000 | |
Net off purchase deposit with loan from related parties for sales of software | 300,000 | |
Transfer from purchase deposit to intangible assets | 461,724 | |
Transfer from purchase deposit to other receivable | $ 420,000 |
NOTE 1 _ BASIS OF PRESENTATION
NOTE 1 – BASIS OF PRESENTATION | 6 Months Ended |
Feb. 29, 2024 | |
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, 2023 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, 2023. The unaudited consolidated financial statements as of and for the three and six months ended February 29, 2024 and February 28, 2023, 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 six months ended February 29, 2024 and February 28, 2023 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 | 6 Months Ended |
Feb. 29, 2024 | |
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 wholly 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. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Accounts receivable Accounts receivable is 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) 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 translation of foreign currency into U.S. dollars are included in current results of operations. Prepayments Prepayments primarily consist of payments made to acquire the copyrights and distribution rights of movies, TV shows and music, etc. Prepayments are classified as either current or non-current based on the nature and the terms of the respective agreements. These prepayments are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. Prepayments are written off against the allowances only after exhaustive collection efforts. No for the three and six months ended February 29, 2024 and February 28, 2023. Property and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvement is related to the enhancements paid by the Company to leased offices. Leasehold improvement represents capital expenditures for direct costs of renovation or acquisition and design fees incurred. The amortization of leasehold improvements commences once the renovation is completed and ready for the Company’s intended use. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Estimated Useful Life Furniture 7 Appliances 5 Leasehold improvement Lesser of useful life and lease term Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations in other income or expenses. Intangible Assets Intangible assets are recorded at the lower of cost or estimated fair value and amortized as follows: • Movie copyrights and broadcast rights: straight-line method 2 years • NFT MMM platform: straight-line method 2 years Amortized costs of the intangible asset are recorded as amortization expenses in the consolidated statements of operations. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Lease property under operating lease The Company adopted ASU No. 2016-02—Leases (Topic 842) since June 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact the Company’s consolidated net earnings and cash flows. 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 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 five 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; (4) embedded marketing service; (5) consulting services. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition 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. 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 a two-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 admissions and food and beverage revenues based on a gross transaction price which 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. Revenue from embedded marketing service: The Company derives revenue from providing the services of embedded marketing through adding advertisement into movies and TV series. The Company recognizes revenue when the advertisement is added to the movies and TV series. Revenue from consulting services: The Company derives revenue from providing consulting services in connection with the sales of the software-in-progress and the restructuring of a Company and bring it to IPO. The consulting service fees are recognized when the services are delivered. 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 February 29, 2024 and August 31, 2023, other than deferred revenue, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheets. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition Disaggregation of revenue The Company disaggregates its revenue from contracts by revenue streams, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The following table presents sales by revenue streams for the three and six months ended February 29, 2024 and February 28, 2023, respectively: Three months ended February 29, 2024 February 28, 2023 Consulting services $ 102,347 $ — NFT licenses 171,001 177,286 Theatre admissions 77,518 79,756 Food and beverage sales 34,387 41,397 Total revenue $ 385,253 $ 298,439 Six months ended February 29, 2024 February 28, 2023 Copyrights sales $ 531,800 $ — Embedded marketing service 125,489 — Consulting services 102,347 — NFT licenses 228,000 357,286 Theatre admissions 135,342 115,918 Food and beverage sales 64,022 62,047 Total revenue $ 1,187,000 $ 535,251 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. 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 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, accounts payable, and accrued liabilities approximate fair value due to their short-term nature. The fair values of warrant liabilities and derivative liabilities embedded in convertible notes are determined by level 3 inputs. No . 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 February 29, 2024, the total number of warrants outstanding was 50,000,000 Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Warrants Warrants are classified as equity and the proceeds from issuing warrants in conjunction with convertible notes are allocated based on the relative fair values of the base instrument of convertible notes and the warrants by following the guidance of ASC 470-20-25-2 . Proceeds from the sale of a debt instrument with stock purchase warrants (detachable call options) shall be allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portion of the proceeds so allocated to the warrants shall be accounted for as paid-in capital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction. This usually results in a discount (or, occasionally, a reduced premium), which shall be accounted for as interest expense under Topic 835 Interest. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Income Taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred income taxes assets and liabilities are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Share-Based Compensation The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee share-based awards. For employee share-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. 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 fiscal year 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. In June 2022, the FASB issued ASU No. 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions," which clarifies and amends the guidance of measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of the equity securities. The guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. The Company does not expect the adoption to have a material impact 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 | 6 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 3 – GOING CONCERN | NOTE 3 – GOING CONCERN The accompanying 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 February 29, 2024, the Company had an accumulated deficit of approximately $12.8 million $0.7 million the Company incurred a net loss of approximately $0.5 million $40,000 These factors, among others, raise the substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated 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. 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. |
NOTE 4 _ PROPERTY AND EQUIPMENT
NOTE 4 – PROPERTY AND EQUIPMENT | 6 Months Ended |
Feb. 29, 2024 | |
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 $2,216 and $2,224 for the six months ended February 29, 2024 and , respectively. As of February 29, 2024 , the balance of property and equipment was as follows: February 29, 2024 August 31, 2023 Leasehold improvement $ 146,304 $ 146,304 Appliances and furniture 25,974 25,974 Total cost 172,278 172,278 Accumulated depreciation ( 166,240 ) ( 164,024 ) Property and equipment, net $ 6,038 $ 8,254 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 5 _ INTANGIBLE ASSETS
NOTE 5 – INTANGIBLE ASSETS | 6 Months Ended |
Feb. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
NOTE 5 – INTANGIBLE ASSETS | NOTE 5 – INTANGIBLE ASSETS As of February 29, 2024 and August 31 , the balance of intangible assets was as follows: February 29, 2024 August 31, 2023 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 300,000 300,000 Movie copyrights - Nice to meet you 300,000 300,000 Movie copyrights – 6 movies 695,789 — TV drama copyright - 20 episodes 295,000 295,000 Movie broadcast rights – 59 movies 2,439,840 2,439,840 NFT MMM platform 280,000 280,000 Total cost 9,714,587 9,018,798 Accumulated amortization (8,636,170 ) (7,563,688 ) Intangible assets, net $ 1,078,417 $ 1,455,110 The amortization expense for the six months ended February 29, 2024 was $1,072,482 and $ , respectively. Twelve months ending February 28, Amortization expense 2024 $ 872,272 2025 206,145 Total $ 1,078,417 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 $420,000 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 5 – INTANGIBLE ASSETS (continued) On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFT MMM 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 $57,000 $228,000 $357,286 On September 10, 2023, the Company entered into an agreement with All In One Media Ltd to acquire the copyrights for 4 movies at a price of $104,714 $378,513 On September 30, 2023, the Company entered into another agreement with All In One Media Ltd to acquire the copy rights and broadcast rights for 2 movies for a price of $212,562 In November 2023, the Company entered into an agreement with Anyone Pictures Limited to sell the Mainland China copyrights of 1 movie for a price of $180,000 211,800 On November 21, 2023, the Company entered into an agreement with Capitalive Holdings Limited to sell offline broadcast rights of 1 movie for a price of $140,000 |
NOTE 6 _ LEASES
NOTE 6 – LEASES | 6 Months Ended |
Feb. 29, 2024 | |
Leases [Abstract] | |
NOTE 6 – LEASES | NOTE 6 – LEASES In September 2023, the Company entered into a one month $766 On October 21, 2021, the Company signed a lease agreement to lease “the Mt. Kisco Theatre”, a movie theater, for five years $14,366 $20,648 Total lease expense for the six months ended February 29, 2024 and February 28, 2023 was $104,132 $142,936 The following is a schedule of maturities of lease liabilities: Twelve months ending February 28, 2025 $ 248,168 2026 252,954 2027 236,006 Total future minimum lease payments 737,128 Less: imputed interest ( 7,347 ) Total $ 729,781 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 7 _ PURCHASE DEPOSITS FOR
NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS | 6 Months Ended |
Feb. 29, 2024 | |
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 dramas and software was as follows: February 29, 2024 August 31, 2023 Purchase deposit for software $ — $ 300,000 Total purchase deposits for intangible assets $ — $ 300,000 On June 8, 2023, the Group has entered into software development contract for the creation of the streaming software designed for use on both the website and mobile applications. Pursuant to the contract’s terms, the Developer is contractually obliged to deliver the software by September 8, 2024, which corresponds to the upcoming 15-month period $1,500,000 $300,000 $385,000 $85,000 $25,600 |
NOTE 8 _ RELATED PARTY TRANSACT
NOTE 8 – RELATED PARTY TRANSACTIONS | 6 Months Ended |
Feb. 29, 2024 | |
Related Party Transactions [Abstract] | |
NOTE 8 – RELATED PARTY TRANSACTIONS | NOTE 8 – RELATED PARTY TRANSACTIONS Loan from related parties 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. On June 1, 2023, Chiyuan Deng, the Chief Executive Officer, as the Company stockholders, entered into a line of credit agreement with the Company. Chiyuan Deng agreed to provide a line of credit to the Company for a total amount of no more than $1,500,000 $697,281 5% $319,551 $748,285 Accounts payable and accrued liabilities - 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 $128,000 $108,800 $19,200 , the Company made payment of $12,812 $6,388 $6,388 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 8 – RELATED PARTY TRANSACTIONS (continued) Accounts payable and accrued liabilities – 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 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 $5,127 $10,000 On November 28, 2023, the Company sold the software-in-progress to the Developer for $385,000 $385,000 The Company also rented an office space from Zestv Studios Limited. The lease was early terminated on August 31, 2023 $0 $33,024 As of February 29, 2024 and August 31, 2023, the Company had $0 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 The Chief Executive Officer opted to forgo his salaries effective from October 2023. During the six months ended February 29 the Company incurred total compensation of $15,049 $102,000 $0 $39,000 . AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 9 _ STOCKHOLDERS_ EQUITY
NOTE 9 – STOCKHOLDERS’ EQUITY | 6 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
NOTE 9 – STOCKHOLDERS’ EQUITY | NOTE 9 – STOCKHOLDERS’ EQUITY Common shares The Company had the following activities for the six months ended February 29, 2024: Issuance of restricted common shares On October 5, 2023, the Board of Directors resolved to issue 225,000,000 $0.001 the Chief Executive Officer, to pay off his accrued executive salaries of $45,000 Conversion of Series C preferred shares to common shares During the six months ended February 29, 2024, the Company issued total 1,056,681,936 174,421 Reverse Stock split As previously disclosed in the Company’s Form 10-Q for the quarter ended May 31, 2023, on June 12, 2023, the Board of Directors approved a reverse split for the Company’s issued and outstanding common stock, at a ratio of 1 share for every 10,000 shares, contingent upon receiving a market effectiveness date from FINRA On September 8, 2023, however, the Board of Directors decided to cancel the company's upcoming 10,000 to 1 reverse split. The Board of Directors decided it would not be in the best interest of the stockholders or the Company to execute a reverse split at this time. The Company plans to inform FINRA that it will not be moving forward with the reverse split and will withdraw its application Cancellation of Common shares On February 5, 2024, the Company’s cancelled 235,000,000 The Company had the following activities for the six 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 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 9 – STOCKHOLDERS’ EQUITY (continued) Common shares Subscription of Common shares $1.0 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 Pursuant to this agreement, during the six months ended February 28, 2023, Alumni Capital LP subscribed total of 200,000,000 $146,475 As of February 29, 2024 and August 31, 2023, the Company had 2,331,965,321 1,285,283,385 A summary of the status of the Company’s warrants as of February 29, 2024 and August 31, 2023 is presented below. Number of warrants Original shares issued Anti-dilution Adjusted Warrants as of August 31, 2022 50,000,000 — Warrants granted during the year — — Warrants as of August 31, 2023 50,000,000 — Warrants granted during the six months — — Exercisable as of February 29, 2024 50,000,000 — Preferred shares The Company had the following activities for the six months ended February 29, 2024: During the six months ended February 29, 2024, the Company converted a total 174,421 On November 30, 2023, the Board of Directors of the Company resolved to withdraw the Amended Certificate of Designation for the Company’s Series C and Series D Preferred shares. On December 1, 2023, the Company’s CEO and director, Mr. Chiyuan Deng, cancelled his 20,000 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 9 – STOCKHOLDERS’ EQUITY (continued) Preferred shares On December 1, 2023, the Board of Directors of the Company resolved to The Company had the following activities for the six 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 $10,629 |
NOTE 10 _ INCOME TAXES
NOTE 10 – INCOME TAXES | 6 Months Ended |
Feb. 29, 2024 | |
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 As of February 29, 2024 and August 31 , the components of net deferred tax assets, including a valuation allowance, were as follows: February 29, 2024 August 31, 2023 Deferred tax asset attributable to: Net operating loss carry over $ 2,171,990 $ 2,077,213 Less: valuation allowance ( 2,171,990 ) ( 2,077,213 ) Net deferred tax asset $ — $ — The valuation allowance for deferred tax assets was $ 2,171,990 and $ 2,077,213 as of February 29, 2024 and August 31 , 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 February 29, 2024 and August 31 . Reconciliation between the statutory rate and the effective tax rate is as follows for the six months ended February 29, 2024 and February 28, 2023: Six months ended February 29, February 28, 2024 2023 Federal statutory tax rate 21 % 21 % Change in valuation allowance (21 %) (21 %) Effective tax rate 0 % 0 % During the six months ended February 29, 2024 and February 28, 2023, the Company and its subsidiaries generated net losses. As a result, the Company and its subsidiaries did not incur any income tax for the six months ended . AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 11 _ CONCENTRATION RISK
NOTE 11 – CONCENTRATION RISK | 6 Months Ended |
Feb. 29, 2024 | |
Risks and Uncertainties [Abstract] | |
NOTE 11 – CONCENTRATION RISK | NOTE 11 – CONCENTRATION RISK Concentration For the six months ended February 29, 2024 and February 28, 2023, 35% 67% 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 $18 $92,972 $250,000 $33,647 $24,124 |
NOTE 12 _ COMMITMENTS AND CONTI
NOTE 12 – COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Feb. 29, 2024 | |
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 third-party vendors. (See Note 6) AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 six months ended February 29, 2024 and February 28, 2023, respectively. NOTE 14 – SEGMENT INFORMATION - Summary of Information by Segment (Details) IP Segment Cinema Segment Total Six months ended Six months ended Six months ended February 29, February 28, February 29, February 28, February 29, February 28, 2024 2023 2024 2023 2024 2023 Revenue $ 987,636 $ 357,286 $ 199,364 $ 177,965 $ 1,187,000 $ 535,251 Operating costs — — 104,081 78,708 104,081 78,708 Depreciation and Amortization 1,074,698 1,781,467 — — 1,074,698 1,781,467 Interest expense (income) 20,090 (158 ) — — 20,090 (158 ) Segment assets 1,756,397 4,161,840 33,348 25,619 1,789,745 4,187,459 Segment income (loss) $ (597,319 ) $ (2,340,126 ) $ 146,000 $ 61,797 $ (451,319 ) $ (2,278,329 ) The following table presents summary information by segment for the three months ended February 29, 2024 and February 28, 2023, respectively. IP Segment Cinema Segment Total Three months ended Three months ended Three months ended February 29, February 28, February 29, February 28, February 29, February 28, 2024 2023 2024 2023 2024 2023 Revenue $ 273,348 $ 177,286 $ 111,905 $ 121,153 $ 385,253 $ 298,439 Operating costs — — 62,726 56,304 62,726 56,304 Depreciation and Amortization 561,781 856,852 — — 561,781 856,852 Interest expense (income) 6,848 (79 ) — — 6,848 (79 ) Segment assets 1,756,397 4,161,840 33,348 25,619 1,789,745 4,187,459 Segment income (loss) $ (581,175 ) $ (1,165,354 ) $ 86,256 $ 96,815 $ (494,919 ) $ (1,068,539 ) |
NOTE 14 _ SUBSEQUENT EVENTS
NOTE 14 – SUBSEQUENT EVENTS | 6 Months Ended |
Feb. 29, 2024 | |
Note 14 Subsequent Events | |
NOTE 14 – SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS In accordance with ASC 855-10, we have analyzed events and transactions that occurred subsequent to February 29, 2024 through the date these financial statements were issued and have determined that we do not have any other material subsequent events to disclose or recognize in these financial statements. |
NOTE 2 _ SUMMARY OF SIGNIFICA_2
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s wholly 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts receivable | Accounts receivable Accounts receivable is 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) |
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 translation of foreign currency into U.S. dollars are included in current results of operations. |
Prepayments | Prepayments Prepayments primarily consist of payments made to acquire the copyrights and distribution rights of movies, TV shows and music, etc. Prepayments are classified as either current or non-current based on the nature and the terms of the respective agreements. These prepayments are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. Prepayments are written off against the allowances only after exhaustive collection efforts. No for the three and six months ended February 29, 2024 and February 28, 2023. |
Property and Equipment, net | Property and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvement is related to the enhancements paid by the Company to leased offices. Leasehold improvement represents capital expenditures for direct costs of renovation or acquisition and design fees incurred. The amortization of leasehold improvements commences once the renovation is completed and ready for the Company’s intended use. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Estimated Useful Life Furniture 7 Appliances 5 Leasehold improvement Lesser of useful life and lease term Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations in other income or expenses. |
Intangible Assets | Intangible Assets Intangible assets are recorded at the lower of cost or estimated fair value and amortized as follows: • Movie copyrights and broadcast rights: straight-line method 2 years • NFT MMM platform: straight-line method 2 years Amortized costs of the intangible asset are recorded as amortization expenses in the consolidated statements of operations. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Lease property under operating lease | Lease property under operating lease The Company adopted ASU No. 2016-02—Leases (Topic 842) since June 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact the Company’s consolidated net earnings and cash flows. |
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 |
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 five 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; (4) embedded marketing service; (5) consulting services. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition 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. 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 a two-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 admissions and food and beverage revenues based on a gross transaction price which 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. Revenue from embedded marketing service: The Company derives revenue from providing the services of embedded marketing through adding advertisement into movies and TV series. The Company recognizes revenue when the advertisement is added to the movies and TV series. Revenue from consulting services: The Company derives revenue from providing consulting services in connection with the sales of the software-in-progress and the restructuring of a Company and bring it to IPO. The consulting service fees are recognized when the services are delivered. 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 February 29, 2024 and August 31, 2023, other than deferred revenue, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheets. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition Disaggregation of revenue The Company disaggregates its revenue from contracts by revenue streams, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The following table presents sales by revenue streams for the three and six months ended February 29, 2024 and February 28, 2023, respectively: Three months ended February 29, 2024 February 28, 2023 Consulting services $ 102,347 $ — NFT licenses 171,001 177,286 Theatre admissions 77,518 79,756 Food and beverage sales 34,387 41,397 Total revenue $ 385,253 $ 298,439 Six months ended February 29, 2024 February 28, 2023 Copyrights sales $ 531,800 $ — Embedded marketing service 125,489 — Consulting services 102,347 — NFT licenses 228,000 357,286 Theatre admissions 135,342 115,918 Food and beverage sales 64,022 62,047 Total revenue $ 1,187,000 $ 535,251 |
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. 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 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, accounts payable, and accrued liabilities approximate fair value due to their short-term nature. The fair values of warrant liabilities and derivative liabilities embedded in convertible notes are determined by level 3 inputs. No . |
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 February 29, 2024, the total number of warrants outstanding was 50,000,000 |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. |
Warrants | Warrants Warrants are classified as equity and the proceeds from issuing warrants in conjunction with convertible notes are allocated based on the relative fair values of the base instrument of convertible notes and the warrants by following the guidance of ASC 470-20-25-2 . Proceeds from the sale of a debt instrument with stock purchase warrants (detachable call options) shall be allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portion of the proceeds so allocated to the warrants shall be accounted for as paid-in capital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction. This usually results in a discount (or, occasionally, a reduced premium), which shall be accounted for as interest expense under Topic 835 Interest. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Income Taxes | Income Taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred income taxes assets and liabilities are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Share-Based Compensation | Share-Based Compensation The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee share-based awards. For employee share-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. |
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 fiscal year 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. In June 2022, the FASB issued ASU No. 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions," which clarifies and amends the guidance of measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of the equity securities. The guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. The Company does not expect the adoption to have a material impact 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 2 _ SUMMARY OF SIGNIFICA_3
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lifeus-Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life | Estimated Useful Life Furniture 7 Appliances 5 Leasehold improvement Lesser of useful life and lease term |
Disaggregation of Revenue [Table Text Block] | Three months ended February 29, 2024 February 28, 2023 Consulting services $ 102,347 $ — NFT licenses 171,001 177,286 Theatre admissions 77,518 79,756 Food and beverage sales 34,387 41,397 Total revenue $ 385,253 $ 298,439 Six months ended February 29, 2024 February 28, 2023 Copyrights sales $ 531,800 $ — Embedded marketing service 125,489 — Consulting services 102,347 — NFT licenses 228,000 357,286 Theatre admissions 135,342 115,918 Food and beverage sales 64,022 62,047 Total revenue $ 1,187,000 $ 535,251 |
NOTE 4 _ PROPERTY AND EQUIPME_2
NOTE 4 – PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Property, Plant and Equipment [Abstract] | |
NOTE 5 - PROPERTY AND EQUIPMENT - Leasehold Improvement | February 29, 2024 August 31, 2023 Leasehold improvement $ 146,304 $ 146,304 Appliances and furniture 25,974 25,974 Total cost 172,278 172,278 Accumulated depreciation ( 166,240 ) ( 164,024 ) Property and equipment, net $ 6,038 $ 8,254 |
NOTE 5 _ INTANGIBLE ASSETS (Tab
NOTE 5 – INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
NOTE 6 - INTANGIBLE ASSETS | February 29, 2024 August 31, 2023 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 300,000 300,000 Movie copyrights - Nice to meet you 300,000 300,000 Movie copyrights – 6 movies 695,789 — TV drama copyright - 20 episodes 295,000 295,000 Movie broadcast rights – 59 movies 2,439,840 2,439,840 NFT MMM platform 280,000 280,000 Total cost 9,714,587 9,018,798 Accumulated amortization (8,636,170 ) (7,563,688 ) Intangible assets, net $ 1,078,417 $ 1,455,110 |
NOTE 6 - INTANGIBLE ASSETS - Estimated Amortization Expense | Twelve months ending February 28, Amortization expense 2024 $ 872,272 2025 206,145 Total $ 1,078,417 |
NOTE 6 _ LEASES (Tables)
NOTE 6 – LEASES (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Leases [Abstract] | |
NOTE 7 - LEASES - Future Lease Payments | Twelve months ending February 28, 2025 $ 248,168 2026 252,954 2027 236,006 Total future minimum lease payments 737,128 Less: imputed interest ( 7,347 ) Total $ 729,781 |
NOTE 9 _ STOCKHOLDERS_ EQUITY (
NOTE 9 – STOCKHOLDERS’ EQUITY (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
NOTE 10 - STOCKHOLDERS' EQUITY - A Summary of Warrant Activity | Number of warrants Original shares issued Anti-dilution Adjusted Warrants as of August 31, 2022 50,000,000 — Warrants granted during the year — — Warrants as of August 31, 2023 50,000,000 — Warrants granted during the six months — — Exercisable as of February 29, 2024 50,000,000 — |
NOTE 10 _ INCOME TAXES (Tables)
NOTE 10 – INCOME TAXES (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
NOTE 11 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities | February 29, 2024 August 31, 2023 Deferred tax asset attributable to: Net operating loss carry over $ 2,171,990 $ 2,077,213 Less: valuation allowance ( 2,171,990 ) ( 2,077,213 ) Net deferred tax asset $ — $ — |
NOTE 11 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation | Six months ended February 29, February 28, 2024 2023 Federal statutory tax rate 21 % 21 % Change in valuation allowance (21 %) (21 %) Effective tax rate 0 % 0 % |
NOTE 12 _ COMMITMENTS AND CON_2
NOTE 12 – COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
NOTE 14 – SEGMENT INFORMATION - Summary of Information by Segment | NOTE 14 – SEGMENT INFORMATION - Summary of Information by Segment (Details) IP Segment Cinema Segment Total Six months ended Six months ended Six months ended February 29, February 28, February 29, February 28, February 29, February 28, 2024 2023 2024 2023 2024 2023 Revenue $ 987,636 $ 357,286 $ 199,364 $ 177,965 $ 1,187,000 $ 535,251 Operating costs — — 104,081 78,708 104,081 78,708 Depreciation and Amortization 1,074,698 1,781,467 — — 1,074,698 1,781,467 Interest expense (income) 20,090 (158 ) — — 20,090 (158 ) Segment assets 1,756,397 4,161,840 33,348 25,619 1,789,745 4,187,459 Segment income (loss) $ (597,319 ) $ (2,340,126 ) $ 146,000 $ 61,797 $ (451,319 ) $ (2,278,329 ) The following table presents summary information by segment for the three months ended February 29, 2024 and February 28, 2023, respectively. IP Segment Cinema Segment Total Three months ended Three months ended Three months ended February 29, February 28, February 29, February 28, February 29, February 28, 2024 2023 2024 2023 2024 2023 Revenue $ 273,348 $ 177,286 $ 111,905 $ 121,153 $ 385,253 $ 298,439 Operating costs — — 62,726 56,304 62,726 56,304 Depreciation and Amortization 561,781 856,852 — — 561,781 856,852 Interest expense (income) 6,848 (79 ) — — 6,848 (79 ) Segment assets 1,756,397 4,161,840 33,348 25,619 1,789,745 4,187,459 Segment income (loss) $ (581,175 ) $ (1,165,354 ) $ 86,256 $ 96,815 $ (494,919 ) $ (1,068,539 ) |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life (Details)us-Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life (Details) | 6 Months Ended |
Feb. 29, 2024 | |
Total Cost | |
Finite-Lived Intangible Assets [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Appliances [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Copyrights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | straight-line method |
Finite-Lived Intangible Asset, Useful Life | 2 years |
N F T Platform [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | straight-line method |
Finite-Lived Intangible Asset, Useful Life | 2 years |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Dissaggregation of Revenues (Details - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 171,001 | $ 177,286 | $ 885,289 | $ 357,286 |
Revenue Not from Contract with Customer | 111,905 | 121,153 | 199,364 | 177,965 |
Total revenue | 385,253 | 298,439 | 1,187,000 | 535,251 |
Consulting Services [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 102,347 | 102,347 | ||
N F T Licenses [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 171,001 | 177,286 | 228,000 | 357,286 |
Theatre Admissions [Member] | ||||
Revenue Not from Contract with Customer | 77,518 | 79,756 | 135,342 | 115,918 |
Food And Beverage Sales [Member] | ||||
Revenue Not from Contract with Customer | $ 34,387 | $ 41,397 | 64,022 | 62,047 |
Copyright Sales [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 531,800 | |||
Embedded Marketing Service [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 125,489 |
NOTE 2 _ SUMMARY OF SIGNIFICA_4
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | Aug. 31, 2023 | |
Accounting Policies [Abstract] | |||||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 0 | $ 0 | $ 0 | $ 0 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | 0 | 0 | |
Impairment of Intangible Assets, Finite-Lived | 0 | $ 0 | 0 | $ 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 0 | 0 | $ 0 | ||
Warrants and Rights Outstanding | $ 50,000,000 | $ 50,000,000 |
NOTE 3 _ GOING CONCERN (Details
NOTE 3 – GOING CONCERN (Details Narrative) | 6 Months Ended |
Feb. 29, 2024 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
[custom:RetainedEarningsAccumulatedDeficitEstimated-0] | $ 12,800,000 |
Banking Regulation, Total Capital, Actual | 700,000 |
[custom:NetIncomeLossEstimated] | 500,000 |
[custom:NetCashUsedInOperationsApproximate] | $ 40,000 |
NOTE 5 - PROPERTY AND EQUIPMENT
NOTE 5 - PROPERTY AND EQUIPMENT - Leasehold Improvement (Details) - USD ($) | Feb. 29, 2024 | Aug. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Net | $ 6,038 | $ 8,254 |
Renovation Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold Improvements, Gross | 146,304 | 146,304 |
Furniture and Fixtures, Gross | 25,974 | 25,974 |
Property, Plant, and Equipment, Owned, Gross | 172,278 | 172,278 |
Property, Plant, and Equipment, Lessor Asset under Operating Lease, Accumulated Depreciation | 166,240 | 164,024 |
Property, Plant and Equipment, Net | $ 6,038 | $ 8,254 |
NOTE 6 - INTANGIBLE ASSETS (Det
NOTE 6 - INTANGIBLE ASSETS (Details) - USD ($) | Feb. 29, 2024 | Aug. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total cost | $ 9,714,587 | $ 9,018,798 |
Accumulated amortization | 8,636,170 | 7,563,688 |
Intangible assets, net | 1,078,417 | 1,455,110 |
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 | 300,000 |
Movie Copyright Nice To Meet You [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 300,000 | 300,000 |
Movie Copyright Six Movies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 695,789 | |
Movie Copyright T V Drama [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 295,000 | 295,000 |
Broadcast 59 Movies [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 6 - INTANGIBLE ASSETS - Es
NOTE 6 - INTANGIBLE ASSETS - Estimated Amortization Expense (Details) | Feb. 29, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling 12 Months | $ 872,272 |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 206,145 |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three | $ 1,078,417 |
NOTE 5 _ INTANGIBLE ASSETS (Det
NOTE 5 – INTANGIBLE ASSETS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Nov. 27, 2023 | Nov. 21, 2023 | Nov. 01, 2023 | Sep. 30, 2023 | Sep. 10, 2023 | Mar. 31, 2022 | Nov. 30, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | Dec. 31, 2022 | Feb. 29, 2024 | Feb. 28, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | Nov. 30, 2022 | Aug. 20, 2022 | |
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 171,001 | $ 177,286 | $ 885,289 | $ 357,286 | ||||||||||||
N F T Licenses [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 171,001 | $ 177,286 | 228,000 | $ 357,286 | ||||||||||||
N F T M M M M Monthly Renewed Terms [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
[custom:TermsOfNFTPlatformAccess] | On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFT MMM 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. Subsequent to the license renewal on November 1, 2023, the Company would continue licensing the NFT MMM platform to the same third party from November 1, 2023 until October 31, 2025 for a monthly license fee of $57,000 | |||||||||||||||
[custom:NFTPlatformMonthlyLicenseFee-0] | $ 57,000 | |||||||||||||||
N F T M M M M Monthly [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
[custom:NFTPlatformMonthlyLicenseFee-0] | $ 60,000 | |||||||||||||||
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, Consideration Transferred | $ 525,000 | |||||||||||||||
Customer Refundable Fees, Refund Payments | $ 420,000 | |||||||||||||||
All In One Media 4 Movies [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Asset Acquisition, Consideration Transferred | $ 104,714 | |||||||||||||||
All In One Media 4 Movies Mainland China [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Asset Acquisition, Consideration Transferred | $ 378,513 | |||||||||||||||
All In One Media 2 Movies [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Asset Acquisition, Consideration Transferred | $ 212,562 | |||||||||||||||
Anyone Pictures 1 Movie [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Asset Acquisition, Consideration Transferred | $ 180,000 | |||||||||||||||
Anyone Pictures Second Movie [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Asset Acquisition, Consideration Transferred | $ 211,800 | |||||||||||||||
Capitalive Holdings Limited Movie [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Asset Acquisition, Consideration Transferred | $ 140,000 |
NOTE 7 - LEASES - Future Lease
NOTE 7 - LEASES - Future Lease Payments (Details) | Feb. 29, 2024 USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments, Due in Rolling Year Two | $ 248,168 |
Operating Leases, Future Minimum Payments, Due in Rolling Year Three | 252,954 |
Operating Leases, Future Minimum Payments, Due in Rolling Year Four | 236,006 |
Lessee, Operating Lease, Liability, to be Paid | 737,128 |
Receivable with Imputed Interest, Discount | 7,347 |
Operating Lease, Liability | $ 729,781 |
NOTE 6 _ LEASES (Details Narrat
NOTE 6 – LEASES (Details Narrative) - USD ($) | 6 Months Ended | ||||
Feb. 29, 2024 | Feb. 28, 2023 | Sep. 01, 2023 | Oct. 21, 2021 | May 01, 2019 | |
Other Commitments [Line Items] | |||||
Operating Leases, Rent Expense, Net | $ 104,132 | $ 142,936 | |||
Hong Kong Lease [Member] | |||||
Other Commitments [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 1 month | ||||
Operating Leases, Future Minimum Payments Due, Next 12 Months | $ 766 | ||||
Operating Leases, Rent Expense, Net | $ 0 | $ 33,024 | |||
Kisco Theatre [Member] | |||||
Other Commitments [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 5 years | ||||
Operating Leases, Future Minimum Payments, Due in Two Years | $ 14,366 | ||||
Operating Leases, Future Minimum Payments, Due in Three Years | $ 20,648 |
NOTE 7 _ PURCHASE DEPOSITS FO_2
NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS (Details Narrative) - USD ($) | 6 Months Ended | |||
Nov. 28, 2023 | Jun. 08, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Gain (Loss) on Disposition of Other Assets | $ (85,000) | |||
Streaming Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Research, Development and Computer Software, Activity Description | On June 8, 2023, the Group has entered into software development contract for the creation of the streaming software designed for use on both the website and mobile applications. Pursuant to the contract’s terms, the Developer is contractually obliged to deliver the software by September 8, 2024, which corresponds to the upcoming 15-month period | |||
Research and Development Expense, Software (Excluding Acquired in Process Cost) | $ 1,500,000 | |||
Payments to Develop Software | $ 300,000 | |||
Gain (Loss) on Disposition of Other Assets | $ 385,000 | |||
Streaming Software Amended [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Research and Development Expense, Software (Excluding Acquired in Process Cost) | 385,000 | |||
Gain (Loss) on Disposition of Other Assets | 85,000 | |||
[custom:MonthlyIncomeFromConsultingServices] | $ 25,600 |
NOTE 8 _ RELATED PARTY TRANSA_2
NOTE 8 – RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Nov. 28, 2023 | Aug. 31, 2023 | Sep. 11, 2020 | Sep. 11, 2020 | Jul. 01, 2020 | Jun. 23, 2022 | Sep. 30, 2019 | Feb. 29, 2024 | Feb. 28, 2023 | Aug. 31, 2022 | Jun. 01, 2023 | Aug. 31, 2021 | Jan. 01, 2021 | |
Related Party Transaction [Line Items] | |||||||||||||
Accounts Payable and Accrued Liabilities, Current | $ 156,763 | $ 145,973 | |||||||||||
Gain (Loss) on Disposition of Other Assets | (85,000) | ||||||||||||
Operating Leases, Rent Expense, Net | $ 104,132 | 142,936 | |||||||||||
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 [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Payments to Employees | $ 15,049 | ||||||||||||
C E O And C F O [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Payments to Employees | 102,000 | ||||||||||||
Chief Investment Officer [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Payments to Employees | 0 | 39,000 | |||||||||||
Hong Kong Lease [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Operating Leases, Rent Expense, Net | 0 | 33,024 | |||||||||||
Streaming Software [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Payments to Develop Software | 300,000 | ||||||||||||
Gain (Loss) on Disposition of Other Assets | $ 385,000 | ||||||||||||
Proceeds from Collection of (Payments to Fund) Long-Term Loans to Related Parties | $ 385,000 | ||||||||||||
Zestv Studios [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Debt Instrument, Periodic Payment | 5,127 | $ 10,000 | $ 151,795 | ||||||||||
Proceeds from Sale of Intangible Assets | $ 750,000 | ||||||||||||
Zestv Studios Second Total [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Lease Expiration Date | Aug. 31, 2023 | ||||||||||||
Other Loans Payable | $ 0 | 0 | |||||||||||
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 | ||||||||||||
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 | 6,388 | |||||||||||
Zestv Studios [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Customer Refund Liability, Current | $ 916,922 | ||||||||||||
Chiyuan Deng Line Of Credit [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Long-Term Line of Credit | $ 1,500,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | ||||||||||||
Shareholder Loan [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Accounts Payable, Other, Current | $ 748,285 | $ 319,551 | $ 697,281 |
NOTE 10 - STOCKHOLDERS' EQUITY
NOTE 10 - STOCKHOLDERS' EQUITY - A Summary of Warrant Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Feb. 29, 2024 | Aug. 31, 2023 | Aug. 31, 2022 | |
Original Shares Issued [Member] | |||
Short-Term Debt [Line Items] | |||
Class of Warrant or Right, Outstanding | 50,000,000 | 50,000,000 | 50,000,000 |
Adjustment of Warrants Granted for Services | |||
Anti Dilution Adjusted [Member] | |||
Short-Term Debt [Line Items] | |||
Class of Warrant or Right, Outstanding | |||
Adjustment of Warrants Granted for Services |
NOTE 9 _ STOCKHOLDERS_ EQUITY_2
NOTE 9 – STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 15 Months Ended | |||||||||||||
Feb. 05, 2024 | Dec. 01, 2023 | Oct. 05, 2023 | Sep. 08, 2023 | Jun. 12, 2023 | Sep. 06, 2022 | Aug. 02, 2022 | Feb. 29, 2024 | Feb. 28, 2023 | Nov. 30, 2022 | Feb. 29, 2024 | Feb. 28, 2023 | Nov. 30, 2023 | Aug. 31, 2023 | Oct. 11, 2022 | Oct. 10, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||
Stockholders' Equity, Reverse Stock Split | on June 12, 2023, the Board of Directors approved a reverse split for the Company’s issued and outstanding common stock, at a ratio of 1 share for every 10,000 shares, contingent upon receiving a market effectiveness date from FINRA | |||||||||||||||
[custom:StockholdersEquityReverseStockSplitCancellation] | On September 8, 2023, however, the Board of Directors decided to cancel the company's upcoming 10,000 to 1 reverse split. The Board of Directors decided it would not be in the best interest of the stockholders or the Company to execute a reverse split at this time. The Company plans to inform FINRA that it will not be moving forward with the reverse split and will withdraw its application | |||||||||||||||
Common Stock, Shares Authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 1,000,000,000 | |||||||||||
Proceeds from Issuance of Common Stock | $ 146,475 | |||||||||||||||
Common Stock, Shares, Issued | 2,331,965,321 | 2,331,965,321 | 1,285,283,385 | |||||||||||||
Common Stock, Shares, Outstanding | 2,331,965,321 | 2,331,965,321 | 1,285,283,385 | |||||||||||||
[custom:SeriesCPreferredSharesIssuedAmount] | 69,000 | |||||||||||||||
Dividend, Share-Based Payment Arrangement | $ 10,629 | |||||||||||||||
Preferred Class C [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Conversion of Stock, Shares Converted | 81,075 | 96,075 | 174,421 | |||||||||||||
Preferred Class B [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
[custom:StockCancelledDuringPeriodSharesSeriesBPreferred] | 20,000 | |||||||||||||||
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 | |||||||||||||||
C E O [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Accrued Salaries, Current | $ 45,000 | |||||||||||||||
C E O [Member] | Restricted Stock [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture | 225,000,000 | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 221,354,447 | 1,056,681,936 | 296,392,233 | 75,037,786 | ||||||||||||
[custom:StockCancelledDuringPeriodSharesCommonShares] | 235,000,000 | (235,000,000) | (235,000,000) | |||||||||||||
[custom:StockCancelledDuringPeriodSharesSeriesBPreferred] | ||||||||||||||||
[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 | 200,000,000 | ||||||||||||||
Alumni Capital Total Proceeds [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Proceeds from Issuance of Common Stock | $ 146,475 | |||||||||||||||
Preferred Stock [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (81,075) | (174,421) | (177,150) | |||||||||||||
[custom:StockCancelledDuringPeriodSharesCommonShares] | ||||||||||||||||
[custom:StockCancelledDuringPeriodSharesSeriesBPreferred] | (20,000) | (20,000) | ||||||||||||||
[custom:SeriesCPreferredSharesIssuedShares] | 90,275 | |||||||||||||||
[custom:SeriesCPreferredSharesIssuedAmount] | $ 90 | |||||||||||||||
Preferred Stock [Member] | Preferred Class C [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Conversion of Stock, Shares Converted | 174,421 |
NOTE 11 - INCOME TAXES - Schedu
NOTE 11 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Feb. 29, 2024 | Aug. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 2,171,990 | $ 2,077,213 |
Deferred Tax Assets, Valuation Allowance | 2,171,990 | 2,077,213 |
Deferred Tax Assets, Net of Valuation Allowance |
NOTE 11 - INCOME TAXES - Sche_2
NOTE 11 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 6 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
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 ($) | Feb. 29, 2024 | Aug. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 2,171,990 | $ 2,077,213 |
NOTE 11 _ CONCENTRATION RISK (D
NOTE 11 – CONCENTRATION RISK (Details Narrative) - USD ($) | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Aug. 31, 2023 | |
Concentration Risk [Line Items] | |||
[custom:HongKongDepositProtection-0] | $ 64,000 | ||
Cash Equivalents, at Carrying Value | 18 | $ 92,972 | |
Cash, FDIC Insured Amount | 250,000 | ||
Fair Value, Concentration of Risk, Cash and Cash Equivalents | $ 33,647 | $ 24,124 | |
Revenue Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 35% | 67% |
NOTE 14 _ SEGMENT INFORMATION -
NOTE 14 – SEGMENT INFORMATION - Summary of Information by Segment (Details) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Revenue | $ 385,253 | $ 298,439 | $ 1,187,000 | $ 535,251 |
Operating costs | 62,726 | 56,304 | 104,081 | 78,708 |
Depreciation and Amortization | 561,781 | 856,852 | 1,074,698 | 1,781,467 |
Interest expense (income) | 6,848 | (79) | 20,090 | (158) |
Segment assets | 1,789,745 | 4,187,459 | 1,789,745 | 4,187,459 |
Segment income (loss) | (494,919) | (1,068,539) | (451,319) | (2,278,329) |
I P Segment [Member] | ||||
Revenue | 273,348 | 177,286 | 987,636 | 357,286 |
Operating costs | ||||
Depreciation and Amortization | 561,781 | 856,852 | 1,074,698 | 1,781,467 |
Interest expense (income) | 6,848 | (79) | 20,090 | (158) |
Segment assets | 1,756,397 | 4,161,840 | 1,756,397 | 4,161,840 |
Segment income (loss) | (581,175) | (1,165,354) | (597,319) | (2,340,126) |
Cinema Segment [Member] | ||||
Revenue | 111,905 | 121,153 | 199,364 | 177,965 |
Operating costs | 62,726 | 56,304 | 104,081 | 78,708 |
Depreciation and Amortization | ||||
Interest expense (income) | ||||
Segment assets | 33,348 | 25,619 | 33,348 | 25,619 |
Segment income (loss) | $ 86,256 | $ 96,815 | $ 146,000 | $ 61,797 |