Cover
Cover - shares | 9 Months Ended | |
May 31, 2024 | Jul. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 31, 2024 | |
Document Fiscal Period Focus | Q3 | |
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 | 2,331,965,321 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | May 31, 2024 | Aug. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 165,428 | $ 117,096 |
Accounts receivable | 254,720 | |
Total Current Assets | 420,148 | 117,096 |
Property and equipment, net | 4,929 | 8,254 |
Right of use operating lease assets, net | 545,113 | 696,380 |
Intangible assets, net | 709,410 | 1,455,110 |
Purchase deposits for intangible assets, non-current | 30,000 | 300,000 |
Security deposit | 46,006 | 45,240 |
TOTAL ASSETS | 1,755,606 | 2,622,080 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 124,268 | 156,763 |
Accounts payable and accrued liabilities - related party | 6,388 | 6,388 |
Loan from related parties | 286,679 | 748,285 |
Current portion of obligations under operating leases | 245,665 | 211,507 |
Deferred revenue | 25,600 | |
Total Current Liabilities | 688,600 | 1,122,943 |
Obligations under operating leases, non-current | 423,350 | 608,149 |
Total Liabilities | 1,111,950 | 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 May 31, 2024 and August 31, 2023, respectively | 2,331,965 | 1,285,283 |
Additional paid-in capital | 11,017,874 | 11,993,408 |
Accumulated deficit | (12,706,283) | (12,387,998) |
Total Stockholders’ Equity | 643,656 | 890,988 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 1,755,606 | 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 (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | May 31, 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 | 9 Months Ended | ||
May 31, 2024 | May 31, 2023 | May 31, 2024 | May 31, 2023 | |
REVENUE | ||||
Copyrights and license | $ 553,019 | $ 433,939 | $ 1,438,308 | $ 791,225 |
Theatre admissions and food and beverage sales | 68,492 | 139,450 | 267,856 | 317,415 |
Consulting services | 76,800 | 179,147 | ||
Total revenue | 698,311 | 573,389 | 1,885,311 | 1,108,640 |
OPERATING COSTS AND EXPENSES | ||||
Amortization expenses | (369,006) | (751,192) | (1,441,489) | (2,530,435) |
Theatre operating costs | (32,316) | (60,859) | (136,397) | (139,567) |
General and administrative expenses | (161,566) | (361,002) | (673,182) | (1,165,160) |
Related party salary and wages | (44,500) | (15,049) | (185,500) | |
Total Operating Costs And Expenses | (562,888) | (1,217,553) | (2,266,117) | (4,020,662) |
Income (Loss) From Operations | 135,423 | (644,164) | (380,806) | (2,912,022) |
Other income | ||||
Interest income | 337 | 693 | 495 | |
Interest expense – related party | (5,170) | (25,953) | ||
Total Other Income (Expenses) | (2,389) | 337 | 62,521 | 495 |
Income (Loss) Before Income Tax Benefit | 133,034 | (643,827) | (318,285) | (2,911,527) |
Income tax benefit | ||||
NET INCOME (LOSS) | 133,034 | (643,827) | (318,285) | (2,911,527) |
Preferred shares dividend | (3,916) | (14,545) | ||
Net income (loss) available to common stockholders | $ 133,034 | $ (647,743) | $ (318,285) | $ (2,926,072) |
NET INCOME (LOSS) PER SHARE: BASIC | $ 0 | $ 0 | $ 0 | $ 0 |
NET INCOME (LOSS) PER SHARE: DILUTED | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC | 2,331,965,321 | 1,066,652,211 | 2,274,452,844 | 760,304,024 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED | 2,332,065,321 | 1,066,652,211 | 2,274,452,844 | 760,304,024 |
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 | $ 589,771 | $ (242) | (589,529) | |||
Stock Issued During Period, Shares, Conversion of Units | 589,770,802 | (242,414) | ||||
Dividend in connection with Preferred shares series C | 14,545 | 14,545 | ||||
Dividend in connection with Preferred Shares Series C, shares | ||||||
Stock based compensation - consultants | 185,971 | 185,971 | ||||
Stock based compensation - consultants, shares | ||||||
Net loss | (2,926,072) | (2,926,072) | ||||
Issuance of common shares | $ 200,000 | (53,525) | 146,475 | |||
Stock Issued During Period, Shares, New Issues | 200,000,000 | |||||
Preferred shares Series C issuance | $ 90 | 68,910 | 69,000 | |||
Preferred shares Series C issuance, shares | 90,275 | |||||
Imputed Interest | ||||||
Balance – May 31, 2024 at May. 31, 2023 | $ 1,174,283 | $ 304 | 12,077,239 | (11,715,973) | (23,986) | 1,511,867 |
Shares, Issued at May. 31, 2023 | 1,174,283,385 | 303,711 | ||||
Balance – August 31, 2023 at Feb. 28, 2023 | $ 880,905 | $ 369 | 12,366,636 | (11,068,230) | (51,586) | 2,128,094 |
Shares, Issued at Feb. 28, 2023 | 880,904,816 | 368,975 | ||||
Preferred shares series C converted into common shares | $ 293,378 | $ (65) | (293,313) | |||
Stock Issued During Period, Shares, Conversion of Units | 293,378,569 | (65,264) | ||||
Dividend in connection with Preferred shares series C | 3,916 | 3,916 | ||||
Dividend in connection with Preferred Shares Series C, shares | ||||||
Stock based compensation - consultants | 27,600 | 27,600 | ||||
Stock based compensation - consultants, shares | ||||||
Net loss | (647,743) | (647,743) | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 293,378,569 | |||||
Balance – May 31, 2024 at May. 31, 2023 | $ 1,174,283 | $ 304 | 12,077,239 | (11,715,973) | (23,986) | 1,511,867 |
Shares, Issued at May. 31, 2023 | 1,174,283,385 | 303,711 | ||||
Balance – August 31, 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 | ||||
Net loss | (318,285) | (318,285) | ||||
Imputed Interest | 25,953 | 25,953 | ||||
[custom:ReceivableWithInputedInterestShares] | ||||||
Issuance of restricted common shares to officer for service | $ 225,000 | (180,000) | 45,000 | |||
Issuance of restricted common shares to officer for service, shares | 225,000,000 | |||||
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) | ||||
Preferred shares series B cancellation | $ (20) | 20 | ||||
Preferred shares series B cancellation, shares | (20,000) | |||||
Common shares cancellation | $ (235,000) | 235,000 | ||||
Common shares cancellation, shares | (235,000,000) | |||||
Balance – May 31, 2024 at May. 31, 2024 | $ 2,331,965 | $ 100 | 11,017,874 | (12,706,283) | 643,656 | |
Shares, Issued at May. 31, 2024 | 2,331,965,321 | 100,000 | ||||
Balance – August 31, 2023 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 | ||||
Net loss | 133,034 | 133,034 | ||||
Imputed Interest | 5,170 | 5,170 | ||||
[custom:ReceivableWithInputedInterestShares] | ||||||
Balance – May 31, 2024 at May. 31, 2024 | $ 2,331,965 | $ 100 | $ 11,017,874 | $ (12,706,283) | $ 643,656 | |
Shares, Issued at May. 31, 2024 | 2,331,965,321 | 100,000 |
Consoolidated Statements of Cas
Consoolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
May 31, 2024 | May 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (318,285) | $ (2,926,072) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Executive salaries and consulting fees paid in stock | 185,971 | |
Depreciation of fixed asset | 3,325 | 3,332 |
Amortization of intangible asset | 1,441,489 | 2,519,934 |
Gain from sales of software in progress | (85,000) | |
Imputed interest on officer loan | 25,953 | |
Non-cash dividend expense for preferred shares | 14,545 | |
Non-cash lease expense | 626 | 25,752 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (254,720) | (310,000) |
Prepaid expenses | 10,665 | |
Rent security & electricity deposit | (766) | |
Purchase deposits (paid) refunded | (30,000) | 420,000 |
Purchase of movie and TV series broadcast right and copyright | (695,789) | (243,276) |
Accounts payable and accrued liabilities | 12,505 | (173,023) |
Accounts payable and accrued liabilities – related party | 6,388 | |
Deferred revenue | 25,600 | (1,225) |
Net cash provided by (used in) operating activities | 124,938 | (467,009) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Loan (repayment to) proceeds from related parties | (76,606) | 302,156 |
Proceeds from common stock issuances | 146,475 | |
Proceeds from preferred share C issuances | 69,000 | |
Net cash (used in) provided by financing activities | (76,606) | 517,631 |
Net increase in cash and cash equivalents | 48,332 | 50,622 |
Cash and cash equivalents – beginning of period | 117,096 | 84,223 |
Cash and cash equivalents – end of period | 165,428 | 134,845 |
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 |
NOTE 1 _ BASIS OF PRESENTATION
NOTE 1 – BASIS OF PRESENTATION | 9 Months Ended |
May 31, 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 nine months ended May 31, 2024 and 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 nine months ended May 31, 2024 and 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 | 9 Months Ended |
May 31, 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 allowance was recorded for the three and nine months ended May 31, 2024 and 2023, respectively. 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 allowance was recorded 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 over the estimated life of the asset 2 years • NFT MMM platform: straight-line method over the estimated life of the asset 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 impairment loss during the three and nine months ended May 31, 2024 and 2023, respectively. Revenue Recognition The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. 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 a master copy of a movie or TV show is delivered, the IP is authorized and transferred to customers. The Company’s contracts with customers 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. 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 May 31, 2024, other than deferred revenue and accounts receivable, the Company had no As of August 31, 2023, the Company had no 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 nine months ended May 31, 2024 and 2023, respectively: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales by Revenue Stream (Details) Three months ended May 31, 2024 May 31, 2023 Copyrights sales $ — $ 250,000 Embedded marketing service 382,019 — Consulting services 76,800 — NFT licenses 171,000 183,939 Theatre admissions 47,011 90,385 Food and beverage sales 21,481 49,065 Total revenue $ 698,311 $ 573,389 Nine months ended May 31, 2024 May 31, 2023 Copyrights sales $ 531,800 $ 250,000 Embedded marketing service 507,508 — Consulting services 179,147 — NFT licenses 399,000 541,225 Theatre admissions 182,353 206,303 Food and beverage sales 85,503 111,112 Total revenue $ 1,885,311 $ 1,108,640 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) 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 May 31, 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. 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. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 | 9 Months Ended |
May 31, 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 May 31, 2024, the Company had an accumulated deficit of approximately $12.7 $0.3 $0.3 These factors, among others, raise 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 provide the opportunity for the Company to continue as a going concern. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 4 _ PROPERTY AND EQUIPMENT
NOTE 4 – PROPERTY AND EQUIPMENT | 9 Months Ended |
May 31, 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 assets. Leasehold improvement relates to renovation and upgrade of the leased office. The depreciation expense was $3,325 $3,332 As of May 31, 2024 and August 31, 2023, the balance of property and equipment was as follows: May 31, 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 ( 167,349 ) ( 164,024 ) Property and equipment, net $ 4,929 $ 8,254 |
NOTE 5 _ INTANGIBLE ASSETS
NOTE 5 – INTANGIBLE ASSETS | 9 Months Ended |
May 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
NOTE 5 – INTANGIBLE ASSETS | NOTE 5 – INTANGIBLE ASSETS As of May 31, 2024 and August 31, 2023, the balance of intangible assets was as follows: May 31, 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 (9,005,177 ) (7,563,688 ) Intangible assets, net $ 709,410 $ 1,455,110 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 5 – INTANGIBLE ASSETS (continued) The amortization expense for the nine months ended May 31, 2024 and 2023 was $1,441,489 and $2,519,934, respectively. Estimated future amortization expense is as follows: Twelve months ending May 31, Amortization expense 2024 $ 590,239 2025 119,171 Total $ 709,410 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 due to the fact that the Company did not make the payments for the remaining movies 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 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 $399,000 $541,225 On May 31, 2023, the Company entered into an agreement with Capitalive Holdings Limited to sell the offline broadcast rights of total 59 movies for a price of $250,000 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 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 5 – INTANGIBLE ASSETS (continued) 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 and the offline broadcast rights of another movie for a price of $211,800 . The granted broadcast rights are globally exclusive, with the exception of Mainland China. 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 | 9 Months Ended |
May 31, 2024 | |
Leases [Abstract] | |
NOTE 6 – LEASES | NOTE 6 – LEASES The Company leased certain office space in Hong Kong from Zestv Studios Limited, a Hong Kong entity 100% owned by the Chief Executive Officer Chiyuan Deng, under operating lease for three years $66,048 two years $66,048 August 31, 2023 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 nine months ended May 31, 2024 and 2023 was $155,815 $217,140 The following is a schedule of maturities of lease liabilities: Twelve months ending May 31, 2025 $ 249,362 2026 254,183 2027 171,640 Total future minimum lease payments 675,185 Less: imputed interest ( 6,170 ) Total $ 669,015 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 7 _ PURCHASE DEPOSITS FOR
NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS | 9 Months Ended |
May 31, 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: May 31, 2024 August 31, 2023 Purchase deposit for software $ — $ 300,000 Purchase deposit for copyright and broadcast right for a movie 30,000 — Total purchase deposits for intangible assets $ 30,000 $ 300,000 On June 8, 2023, the Company 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 On February 23, 2024, the Company entered into an agreement to acquire the copyright and broadcast right of a movie. As of May 31, 2024, the Company has paid a purchase deposit of $30,000 |
NOTE 8 _ RELATED PARTY TRANSACT
NOTE 8 – RELATED PARTY TRANSACTIONS | 9 Months Ended |
May 31, 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% $286,679 $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 As there has been no revenue from the “Ai Bian Quan Qiu” platform due to COVID-19 since mid-January, 2020, $108,800 prepayment was expensed as research and development expense in FY2020. In July 2020, the Company changed the service scope of this agreement and turned it into a two-year website maintenance contract to maintain the website ABQQ.TV which was launched on December 29, 2020. The website maintenance service began on January 1, 2021 and ended on December 31, 2022. The contract amount remains at $128,000 $108,800 $19,200 $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 a 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 $15,127 On November 28, 2023, the Company sold the software-in-progress to the Developer for $385,000 $385,000 The Company also rented office space from Zestv Studios Limited. The lease was early terminated on August 31, 2023 . For the nine months ended May 31, 2024 and 2023, the Company incurred related party office rent expense of $0 and $49,536 , respectively. During the three months ended May 31, 2024, Zestv Studios Limited further loaned a total amount of $78,289 The loan is non-interest bearing and due on demand As of May 31, 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 $0.001 266,667 During the nine months ended May 31, 2024, the Company incurred total compensation of $15,049 $153,000 $0 $32,500 |
NOTE 9 _ STOCKHOLDERS_ EQUITY
NOTE 9 – STOCKHOLDERS’ EQUITY | 9 Months Ended |
May 31, 2024 | |
Equity [Abstract] | |
NOTE 9 – STOCKHOLDERS’ EQUITY | NOTE 9 – STOCKHOLDERS’ EQUITY Common shares The Company had the following activities for the nine months ended May 31, 2024: Issuance of restricted common shares On October 5, 2023, the Board of Directors resolved to issue 225,000,000 $0.001 $45,000 Conversion of Series C preferred shares to common shares During the nine months ended May 31, 2024, the Company issued a total of 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 April 22, 2024, the Board of Directors approved a reverse split of the Corporation’s issued and outstanding common stock, which has a par value $0.001 per share. The reverse split ratio has been determined at 1 for 2,000 shares. The effectiveness of this reverse split is contingent upon receiving a market effective date from the Financial Industry Regulatory Authorization (FINRA). Cancellation of Common shares On February 5, 2024, our majority shareholder, officer and director, Chiyuan Deng, cancelled 235,000,000 The Company had the following activities for the nine months ended May 31, 2023: 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 a total of 75,037,786 96,075 During the three months ended February 28, 2023, the Company issued a total of 221,354,447 81,075 During the three months ended May 31, 2023, the Company issued a total of 293,378,569 65,264 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 nine months ended May 31, 2023, Alumni Capital LP subscribed for a total of 200,000,000 $146,475 As of May 31, 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 May 31, 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 nine months — — Exercisable as of May 31, 2024 50,000,000 — Preferred shares The Company had the following activities for the nine months ended May 31, 2024: During the nine months ended May 31, 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. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 9 – STOCKHOLDERS’ EQUITY (continued) Preferred shares (continued) On December 1, 2023, the Board of Directors of the Company resolved to withdraw the Certificate of Designation for the Company’s Series B Preferred Stock. The Company’s Series B Preferred Stock was cancelled during the three months ended February 29, 2024. The Company had the following activities for the nine months ended May 31, 2023: On September 6, 2022, the Company entered into a securities purchase agreement with an accredited investor, whereby investor purchased from the Company 90,275 $78,500 $69,000 The Company recorded dividend expenses of $14,545 |
NOTE 10 _ INCOME TAXES
NOTE 10 – INCOME TAXES | 9 Months Ended |
May 31, 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% 16.5% As of May 31, 2024 and August 31, 2023, the components of net deferred tax assets, including a valuation allowance, were as follows: May 31, 2024 August 31, 2023 Deferred tax asset attributable to: Net operating loss carry over $ 2,144,053 $ 2,077,213 Less: valuation allowance ( 2,144,053 ) ( 2,077,213 ) Net deferred tax asset $ — $ — The valuation allowance for deferred tax assets was $2,144,053 $2,077,213 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 10 – INCOME TAXES (continued) Reconciliation between the statutory rate and the effective tax rate is as follows for the nine months ended May 31, 2024 and 2023, respectively: Nine months ended May 31, 2024 2023 Federal statutory tax rate 21 % 21 % Change in valuation allowance (21 %) (21 %) Effective tax rate 0 % 0 % During the nine months ended May 31, 2024 and 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 nine months ended May 31, 2024 and 2023, respectively. |
NOTE 11 _ CONCENTRATION RISK
NOTE 11 – CONCENTRATION RISK | 9 Months Ended |
May 31, 2024 | |
Risks and Uncertainties [Abstract] | |
NOTE 11 – CONCENTRATION RISK | NOTE 11 – CONCENTRATION RISK Concentration For the nine months ended May 31, 2024, 43% 35% 49% 23% For the three months ended May 31, 2024, 66% 24% , 44% 32% As of May 31, 2024, 100% no 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 $165,410 $24,124 |
NOTE 12 _ COMMITMENTS AND CONTI
NOTE 12 – COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May 31, 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
NOTE 13 – SEGMENT INFORMATION | 9 Months Ended |
May 31, 2024 | |
Segment Reporting [Abstract] | |
NOTE 13 – SEGMENT INFORMATION | NOTE 13 – SEGMENT INFORMATION The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. As the result of business strategic changes, the Company has identified two reportable segments: Copyrights and license (“IP’) segment and cinema segment. The following table presents summary information by segment for the nine months ended May 31, 2024 and 2023, respectively. NOTE 13 – SEGMENT INFORMATION - Summary of Information by Segment IP Segment Cinema Segment Total Nine months ended Nine months ended Nine months ended May 31, May 31, May 31, 2024 2023 2024 2023 2024 2023 Revenue $ 1,617,455 $ 791,225 $ 267,856 $ 317,415 $ 1,885,311 $ 1,108,640 Operating costs — — 136,397 139,567 136,397 139,567 Depreciation and Amortization 1,444,814 2,533,767 — — 1,444,814 2,533,767 Interest expense (income) 25,260 (495) — — 25,260 (495) Segment assets 1,590,495 3,276,524 165,111 14,849 1,755,606 3,291,373 Segment income (loss) $ (491,131) $ (3,054,265) $ 172,846 $ 142,738 $ (318,285) $ (2,911,527) The following table presents summary information by segment for the three months ended May 31, 2024 and 2023, respectively. IP Segment Cinema Segment Total Three months ended Three months ended Three months ended May 31, May 31, May 31, 2024 2023 2024 2023 2024 2023 Revenue $ 629,819 $ 433,939 $ 68,492 $ 139,450 $ 698,311 $ 573,389 Operating costs — — 32,316 60,859 32,316 60,859 Depreciation and Amortization 370,114 752,300 — — 370,114 752,300 Interest expense (income) 5,170 (337) — — 5,170 (337) Segment assets 1,590,495 3,276,524 165,111 14,849 1,755,606 3,291,373 Segment income (loss) $ 106,188 $ (724,768) $ 26,846 $ 80,941 $ 133,034 $ (643,827) AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE 14 _ SUBSEQUENT EVENTS
NOTE 14 – SUBSEQUENT EVENTS | 9 Months Ended |
May 31, 2024 | |
Subsequent Events [Abstract] | |
NOTE 14 – SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS Stock Purchase Agreement On June 13, 2024, the Company entered into a Common Stock Purchase Agreement with Alumni Capital LP (“Alumni Capital”), a Delaware limited partnership. Pursuant to the Purchase Agreement, the Company has the right, but not the obligation to cause Alumni Capital to purchase up to $5 million of our common stock at the Investment Amount during the period beginning on the execution date of the Purchase Agreement and ending on the earlier of (i) the date on which Alumni Capital has purchased $5 million of our common stock shares pursuant to the Purchase Agreement or (ii) June 30, 2025. Pursuant to the Purchase Agreement, the Investment Amount means seventy percent (70%) of the lowest daily Volume Weighted Average Price (“VWAP”) of the Common Stock five business days prior to the Closing of a Purchase Notice. No Purchase Notice will be made without an effective registration statement and no Purchase Notice will be in an amount greater than (i) $250,000 or (ii) three hundred percent (300%) of the Average Daily Trading Volume during the five business days prior to a Purchase Notice. In consideration for Alumni Capital’s execution and performance under the Purchase Agreement, the Company issued to Alumni Capital a Common Stock Purchase Warrant dated June 13, 2024 to purchase shares of Common Stock representing (50%) of the commitment amount of $5 million. The number of shares under the Common Stock Purchase Warrant is subject to adjustment based on the following formula: (i) fifty percent (50%) of the Commitment Amount, less the exercise value of all partial exercises prior to the Exercise Date, divided by (ii) the Exercise Price on the Exercise Date. |
NOTE 2 _ SUMMARY OF SIGNIFICA_2
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
May 31, 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 allowance was recorded for the three and nine months ended May 31, 2024 and 2023, respectively. 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 allowance was recorded |
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 over the estimated life of the asset 2 years • NFT MMM platform: straight-line method over the estimated life of the asset 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 impairment loss during the three and nine months ended May 31, 2024 and 2023, respectively. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. 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 a master copy of a movie or TV show is delivered, the IP is authorized and transferred to customers. The Company’s contracts with customers 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. 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 May 31, 2024, other than deferred revenue and accounts receivable, the Company had no As of August 31, 2023, the Company had no 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 nine months ended May 31, 2024 and 2023, respectively: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales by Revenue Stream (Details) Three months ended May 31, 2024 May 31, 2023 Copyrights sales $ — $ 250,000 Embedded marketing service 382,019 — Consulting services 76,800 — NFT licenses 171,000 183,939 Theatre admissions 47,011 90,385 Food and beverage sales 21,481 49,065 Total revenue $ 698,311 $ 573,389 Nine months ended May 31, 2024 May 31, 2023 Copyrights sales $ 531,800 $ 250,000 Embedded marketing service 507,508 — Consulting services 179,147 — NFT licenses 399,000 541,225 Theatre admissions 182,353 206,303 Food and beverage sales 85,503 111,112 Total revenue $ 1,885,311 $ 1,108,640 |
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) 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 May 31, 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. |
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. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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) | 9 Months Ended |
May 31, 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 |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales by Revenue Stream | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales by Revenue Stream (Details) Three months ended May 31, 2024 May 31, 2023 Copyrights sales $ — $ 250,000 Embedded marketing service 382,019 — Consulting services 76,800 — NFT licenses 171,000 183,939 Theatre admissions 47,011 90,385 Food and beverage sales 21,481 49,065 Total revenue $ 698,311 $ 573,389 Nine months ended May 31, 2024 May 31, 2023 Copyrights sales $ 531,800 $ 250,000 Embedded marketing service 507,508 — Consulting services 179,147 — NFT licenses 399,000 541,225 Theatre admissions 182,353 206,303 Food and beverage sales 85,503 111,112 Total revenue $ 1,885,311 $ 1,108,640 |
NOTE 4 _ PROPERTY AND EQUIPME_2
NOTE 4 – PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
May 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
NOTE 4 - PROPERTY AND EQUIPMENT - Leasehold Improvement | May 31, 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 ( 167,349 ) ( 164,024 ) Property and equipment, net $ 4,929 $ 8,254 |
NOTE 5 _ INTANGIBLE ASSETS (Tab
NOTE 5 – INTANGIBLE ASSETS (Tables) | 9 Months Ended |
May 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
NOTE 5 - INTANGIBLE ASSETS | May 31, 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 (9,005,177 ) (7,563,688 ) Intangible assets, net $ 709,410 $ 1,455,110 |
NOTE 5 - INTANGIBLE ASSETS - Estimated Amortization Expense | Twelve months ending May 31, Amortization expense 2024 $ 590,239 2025 119,171 Total $ 709,410 |
NOTE 6 _ LEASES (Tables)
NOTE 6 – LEASES (Tables) | 9 Months Ended |
May 31, 2024 | |
Leases [Abstract] | |
NOTE 6 - LEASES - Future Lease Payments | Twelve months ending May 31, 2025 $ 249,362 2026 254,183 2027 171,640 Total future minimum lease payments 675,185 Less: imputed interest ( 6,170 ) Total $ 669,015 |
NOTE 7 _ PURCHASE DEPOSITS FO_2
NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS (Tables) | 9 Months Ended |
May 31, 2024 | |
Accounting Policies [Abstract] | |
NOTE 7 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments | May 31, 2024 August 31, 2023 Purchase deposit for software $ — $ 300,000 Purchase deposit for copyright and broadcast right for a movie 30,000 — Total purchase deposits for intangible assets $ 30,000 $ 300,000 |
NOTE 9 _ STOCKHOLDERS_ EQUITY (
NOTE 9 – STOCKHOLDERS’ EQUITY (Tables) | 9 Months Ended |
May 31, 2024 | |
Equity [Abstract] | |
NOTE 9 - 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 nine months — — Exercisable as of May 31, 2024 50,000,000 — |
NOTE 10 _ INCOME TAXES (Tables)
NOTE 10 – INCOME TAXES (Tables) | 9 Months Ended |
May 31, 2024 | |
Income Tax Disclosure [Abstract] | |
NOTE 10 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities | May 31, 2024 August 31, 2023 Deferred tax asset attributable to: Net operating loss carry over $ 2,144,053 $ 2,077,213 Less: valuation allowance ( 2,144,053 ) ( 2,077,213 ) Net deferred tax asset $ — $ — |
NOTE 11 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation | Nine months ended May 31, 2024 2023 Federal statutory tax rate 21 % 21 % Change in valuation allowance (21 %) (21 %) Effective tax rate 0 % 0 % |
NOTE 13 _ SEGMENT INFORMATION (
NOTE 13 – SEGMENT INFORMATION (Tables) | 9 Months Ended |
May 31, 2024 | |
Segment Reporting [Abstract] | |
NOTE 13 – SEGMENT INFORMATION - Summary of Information by Segment | NOTE 13 – SEGMENT INFORMATION - Summary of Information by Segment IP Segment Cinema Segment Total Nine months ended Nine months ended Nine months ended May 31, May 31, May 31, 2024 2023 2024 2023 2024 2023 Revenue $ 1,617,455 $ 791,225 $ 267,856 $ 317,415 $ 1,885,311 $ 1,108,640 Operating costs — — 136,397 139,567 136,397 139,567 Depreciation and Amortization 1,444,814 2,533,767 — — 1,444,814 2,533,767 Interest expense (income) 25,260 (495) — — 25,260 (495) Segment assets 1,590,495 3,276,524 165,111 14,849 1,755,606 3,291,373 Segment income (loss) $ (491,131) $ (3,054,265) $ 172,846 $ 142,738 $ (318,285) $ (2,911,527) The following table presents summary information by segment for the three months ended May 31, 2024 and 2023, respectively. IP Segment Cinema Segment Total Three months ended Three months ended Three months ended May 31, May 31, May 31, 2024 2023 2024 2023 2024 2023 Revenue $ 629,819 $ 433,939 $ 68,492 $ 139,450 $ 698,311 $ 573,389 Operating costs — — 32,316 60,859 32,316 60,859 Depreciation and Amortization 370,114 752,300 — — 370,114 752,300 Interest expense (income) 5,170 (337) — — 5,170 (337) Segment assets 1,590,495 3,276,524 165,111 14,849 1,755,606 3,291,373 Segment income (loss) $ 106,188 $ (724,768) $ 26,846 $ 80,941 $ 133,034 $ (643,827) |
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) | 9 Months Ended |
May 31, 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 over the estimated life of the asset |
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 over the estimated life of the asset |
Finite-Lived Intangible Asset, Useful Life | 2 years |
NOTE 2 _ SUMMARY OF SIGNIFICA_4
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales by Revenue Stream (Details) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2024 | May 31, 2023 | May 31, 2024 | May 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 553,019 | $ 433,939 | $ 1,438,308 | $ 791,225 |
Revenue Not from Contract with Customer | 68,492 | 139,450 | 267,856 | 317,415 |
Total revenue | 698,311 | 573,389 | 1,885,311 | 1,108,640 |
Copyright Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 250,000 | 531,800 | 250,000 | |
Embedded Marketing Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 382,019 | |||
Consulting Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 76,800 | 179,147 | ||
N F T Licenses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 171,000 | 183,939 | 399,000 | 541,225 |
Theatre Admissions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue Not from Contract with Customer | 47,011 | 90,385 | 182,353 | 206,303 |
Food And Beverage Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue Not from Contract with Customer | $ 21,481 | $ 49,065 | 85,503 | 111,112 |
Embedded Marketing Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 507,508 |
NOTE 2 _ SUMMARY OF SIGNIFICA_5
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | May 31, 2024 | Aug. 31, 2023 |
Accounting Policies [Abstract] | ||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 0 | $ 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 0 | $ 0 |
Warrants and Rights Outstanding | $ 50,000,000 |
NOTE 3 _ GOING CONCERN (Details
NOTE 3 – GOING CONCERN (Details Narrative) | 9 Months Ended |
May 31, 2024 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
[custom:RetainedEarningsAccumulatedDeficitEstimated-0] | $ 12,700,000 |
Banking Regulation, Total Capital, Actual | 300,000 |
[custom:NetIncomeLossEstimated] | $ 300,000 |
NOTE 4 - PROPERTY AND EQUIPMENT
NOTE 4 - PROPERTY AND EQUIPMENT - Leasehold Improvement (Details) - USD ($) | May 31, 2024 | Aug. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Net | $ 4,929 | $ 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 | 167,349 | 164,024 |
Property, Plant and Equipment, Net | $ 4,929 | $ 8,254 |
NOTE 4 _ PROPERTY AND EQUIPME_3
NOTE 4 – PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 9 Months Ended | |
May 31, 2024 | May 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 3,325 | $ 3,332 |
NOTE 5 - INTANGIBLE ASSETS (Det
NOTE 5 - INTANGIBLE ASSETS (Details) - USD ($) | May 31, 2024 | Aug. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total cost | $ 9,714,587 | $ 9,018,798 |
Accumulated amortization | 9,005,177 | 7,563,688 |
Intangible assets, net | 709,410 | 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 5 - INTANGIBLE ASSETS - Es
NOTE 5 - INTANGIBLE ASSETS - Estimated Amortization Expense (Details) | May 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling 12 Months | $ 590,239 |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 119,171 |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three | $ 709,410 |
NOTE 5 _ INTANGIBLE ASSETS (Det
NOTE 5 – INTANGIBLE ASSETS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 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 | May 31, 2024 | May 31, 2023 | Dec. 31, 2022 | May 31, 2024 | May 31, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | Feb. 28, 2023 | Aug. 20, 2022 | |
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 553,019 | $ 433,939 | $ 1,438,308 | $ 791,225 | ||||||||||||
N F T Licenses [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 171,000 | 183,939 | 399,000 | 541,225 | ||||||||||||
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 | |||||||||||||||
Fifty Nine Movies Capitalive Holdings [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Sales-type Lease, Lease Receivable | $ 250,000 | $ 250,000 | ||||||||||||||
Five Movies Copyright [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Asset Acquisition, Contingent Consideration, Liability | $ 1,500,000 | |||||||||||||||
Amazing Data And Nice To Meet You [Member] | ||||||||||||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||||||||||||
Asset Acquisition, Contingent Consideration, Liability | $ 600,000 | |||||||||||||||
Asset Acquisition, Consideration Transferred | $ 356,724 | |||||||||||||||
Finite-Lived Intangible Assets Acquired | $ 356,724 | |||||||||||||||
Accounts Payable, Other, Current | $ 243,276 | $ 243,276 | ||||||||||||||
Loss Contingency, Settlement Agreement, Terms | Per amended agreement, the remaining three movies will be delivered upon receiving the payment of minimum $300,000 per movie from the Company before December 31, 2022. The agreement was terminated on December 31, 2022 due to the fact that the Company did not make the payments for the remaining movies | |||||||||||||||
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 Additional Movies [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 6 - LEASES - Future Lease
NOTE 6 - LEASES - Future Lease Payments (Details) | May 31, 2024 USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments, Due in Rolling Year Two | $ 249,362 |
Operating Leases, Future Minimum Payments, Due in Rolling Year Three | 254,183 |
Operating Leases, Future Minimum Payments, Due in Rolling Year Four | 171,640 |
Lessee, Operating Lease, Liability, to be Paid | 675,185 |
Receivable with Imputed Interest, Discount | 6,170 |
Operating Lease, Liability | $ 669,015 |
NOTE 6 _ LEASES (Details Narrat
NOTE 6 – LEASES (Details Narrative) - USD ($) | 9 Months Ended | ||||||
Aug. 31, 2023 | May 31, 2024 | May 31, 2023 | Sep. 01, 2023 | May 01, 2022 | Oct. 21, 2021 | May 01, 2019 | |
Other Commitments [Line Items] | |||||||
Operating Leases, Rent Expense, Net | $ 155,815 | $ 217,140 | |||||
Hong Kong Lease [Member] | |||||||
Other Commitments [Line Items] | |||||||
Lessee, Operating Lease, Term of Contract | 1 month | 3 years | |||||
Operating Leases, Future Minimum Payments Due, Next 12 Months | $ 766 | $ 66,048 | $ 66,048 | ||||
Operating Leases, Rent Expense, Net | $ 0 | $ 49,536 | |||||
Hong Kong Lease Current [Member] | |||||||
Other Commitments [Line Items] | |||||||
Lessee, Operating Lease, Renewal Term | 2 years | ||||||
Lease Expiration Date | Aug. 31, 2023 | ||||||
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 FOR
NOTE 7 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments (Details) - USD ($) | May 31, 2024 | Aug. 31, 2023 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Prepaid Expense and Other Assets | $ 30,000 | $ 300,000 |
T V Drama Series Copyright [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Prepaid Expense and Other Assets | 300,000 | |
Five Movies Copyright [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Prepaid Expense and Other Assets | 30,000 | |
Total Copyright Prepayment [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Prepaid Expense and Other Assets | $ 30,000 | $ 300,000 |
NOTE 7 _ PURCHASE DEPOSITS FO_3
NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS (Details Narrative) - USD ($) | 9 Months Ended | |||
Nov. 28, 2023 | Jun. 08, 2023 | May 31, 2024 | May 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Gain (Loss) on Disposition of Other Assets | $ (85,000) | |||
New Movie [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Earnest Money Deposits | 30,000 | |||
Streaming Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Research, Development and Computer Software, Activity Description | On June 8, 2023, the Company 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 | 9 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 | May 31, 2024 | May 31, 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 | $ 124,268 | |||||||||||
Gain (Loss) on Disposition of Other Assets | (85,000) | ||||||||||||
Operating Leases, Rent Expense, Net | $ 155,815 | 217,140 | |||||||||||
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 | 153,000 | ||||||||||||
Chief Investment Officer [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Payments to Employees | 0 | 32,500 | |||||||||||
Hong Kong Lease [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Operating Leases, Rent Expense, Net | 0 | $ 49,536 | |||||||||||
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 | 15,127 | $ 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 | ||||||||||||
Zestv Studios Loan Two [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Proceeds from Loans | $ 78,289 | ||||||||||||
Debt Instrument, Interest Rate Terms | The loan is non-interest bearing and due on demand | ||||||||||||
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 | $ 286,679 | $ 697,281 |
NOTE 9 - STOCKHOLDERS' EQUITY
NOTE 9 - STOCKHOLDERS' EQUITY - A Summary of Warrant Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2024 | Aug. 31, 2023 | Aug. 31, 2022 | |
Original Shares Issued [Member] | |||
Short-Term Debt [Line Items] | |||
Class of Warrant or Right, Outstanding | 50,000,000 | 50,000,000 | 50,000,000 |
Adjustment of Warrants Granted for Services | |||
Anti Dilution Adjusted [Member] | |||
Short-Term Debt [Line Items] | |||
Class of Warrant or Right, Outstanding | |||
Adjustment of Warrants Granted for Services |
NOTE 9 _ STOCKHOLDERS_ EQUITY_2
NOTE 9 – STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||||||
Feb. 05, 2024 | Oct. 05, 2023 | Sep. 08, 2023 | Jun. 12, 2023 | Sep. 06, 2022 | Aug. 02, 2022 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | May 31, 2024 | May 31, 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 | ||||||||||||
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 April 22, 2024, the Board of Directors approved a reverse split of the Corporation’s issued and outstanding common stock, which has a par value $0.001 per share. The reverse split ratio has been determined at 1 for 2,000 shares. The effectiveness of this reverse split is contingent upon receiving a market effective date from the Financial Industry Regulatory Authorization (FINRA). | |||||||||||||
Common Stock, Shares Authorized | 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 | 1,285,283,385 | ||||||||||||
Common Stock, Shares, Outstanding | 2,331,965,321 | 1,285,283,385 | ||||||||||||
Dividend, Share-Based Payment Arrangement | $ 14,545 | |||||||||||||
Preferred Class C [Member] | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||
Conversion of Stock, Shares Converted | 65,264 | 81,075 | 96,075 | 174,421 | ||||||||||
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 | 293,378,569 | 221,354,447 | 75,037,786 | 1,056,681,936 | ||||||||||
[custom:StockCancelledDuringPeriodSharesCommonShares] | 235,000,000 | (235,000,000) | ||||||||||||
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 | (174,421) | |||||||||||||
[custom:StockCancelledDuringPeriodSharesCommonShares] | ||||||||||||||
Preferred Stock [Member] | Preferred Class C [Member] | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||
Conversion of Stock, Shares Converted | 174,421 |
NOTE 10 - INCOME TAXES - Schedu
NOTE 10 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | May 31, 2024 | Aug. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 2,144,053 | $ 2,077,213 |
Deferred Tax Assets, Valuation Allowance | 2,144,053 | 2,077,213 |
Deferred Tax Assets, Net of Valuation Allowance |
NOTE 11 - INCOME TAXES - Schedu
NOTE 11 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 9 Months Ended | |
May 31, 2024 | May 31, 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 ($) | 9 Months Ended | ||
May 31, 2024 | May 31, 2023 | Aug. 31, 2023 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | |
Deferred Tax Assets, Valuation Allowance | $ 2,144,053 | $ 2,077,213 | |
Hong Kong Tax Rate [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% |
NOTE 11 _ CONCENTRATION RISK (D
NOTE 11 – CONCENTRATION RISK (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
May 31, 2024 | Aug. 31, 2023 | May 31, 2024 | May 31, 2023 | May 31, 2024 | May 31, 2023 | |
Concentration Risk [Line Items] | ||||||
[custom:HongKongDepositProtection-0] | $ 64,000 | $ 64,000 | $ 64,000 | |||
Cash Equivalents, at Carrying Value | 18 | $ 92,972 | 18 | 18 | ||
Cash, FDIC Insured Amount | 250,000 | 250,000 | 250,000 | |||
Fair Value, Concentration of Risk, Cash and Cash Equivalents | $ 165,410 | $ 24,124 | $ 165,410 | $ 165,410 | ||
Revenue Customer One [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration Risk, Percentage | 66% | 44% | 43% | 49% | ||
Revenue Customer Two [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration Risk, Percentage | 24% | 32% | 35% | 23% | ||
Accounts Receivable One Customer [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration Risk, Percentage | 100% | 0% |
NOTE 13 _ SEGMENT INFORMATION -
NOTE 13 – SEGMENT INFORMATION - Summary of Information by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2024 | May 31, 2023 | May 31, 2024 | May 31, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 698,311 | $ 573,389 | $ 1,885,311 | $ 1,108,640 |
Operating costs | 32,316 | 60,859 | 136,397 | 139,567 |
Depreciation and Amortization | 370,114 | 752,300 | 1,444,814 | 2,533,767 |
Interest expense (income) | 5,170 | (337) | 25,260 | (495) |
Segment assets | 1,755,606 | 3,291,373 | 1,755,606 | 3,291,373 |
Segment income (loss) | 133,034 | (643,827) | (318,285) | (2,911,527) |
I P Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 629,819 | 433,939 | 1,617,455 | 791,225 |
Operating costs | ||||
Depreciation and Amortization | 370,114 | 752,300 | 1,444,814 | 2,533,767 |
Interest expense (income) | 5,170 | (337) | 25,260 | (495) |
Segment assets | 1,590,495 | 3,276,524 | 1,590,495 | 3,276,524 |
Segment income (loss) | 106,188 | (724,768) | (491,131) | (3,054,265) |
Cinema Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 68,492 | 139,450 | 267,856 | 317,415 |
Operating costs | 32,316 | 60,859 | 136,397 | 139,567 |
Depreciation and Amortization | ||||
Interest expense (income) | ||||
Segment assets | 165,111 | 14,849 | 165,111 | 14,849 |
Segment income (loss) | $ 26,846 | $ 80,941 | $ 172,846 | $ 142,738 |