| Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These interim condensed consolidated financial statements
of the Company and its subsidiaries are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals)
and disclosures necessary for a fair presentation of these interim condensed consolidated financial statements have been included. The
results reported in the unaudited condensed consolidated financial statements for any interim periods are not necessarily indicative of
the results that may be reported for the entire year. The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and United States
(“U.S.”) generally accepted accounting principles (“U.S. GAAP”), and include the accounts of the Company and its
subsidiaries. However, they do not include all information and footnotes necessary for a complete presentation of financial statements
in conformity with U.S. GAAP. Certain information and footnote disclosures normally present in annual financial statements prepared in
accordance with U.S. GAAP have been condensed or omitted. Intercompany accounts and transactions have been eliminated in consolidation. The Company has adopted August 31 as its fiscal year
end. These unaudited financial statements should be read in conjunction with the Company’s
audited consolidated financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year
ended August 31, 2019, which was filed with the SEC on November 29, 2019. Going Concern The accompanying interim condensed consolidated financial
statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities
and commitments in the normal course of business. The Company has suffered recurring losses from operations,
and recorded an accumulated deficit of $2,714,376 as of November 30, 2019. These conditions raise substantial doubt about the Company’s
ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s profit generating
operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal
business operations when they become due. The Company expects to finance its operations primarily
through loans from existing directors and stockholders, sales of capital stock and cash flow from operations. In the event that the Company
requires additional funding to finance the Company’s current and expected future operations, as well as to achieve its strategic
objectives, a stockholder has indicated the intent and ability to provide additional financing. No assurance can be given that any future
financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Any such additional
financing may contain undue restrictions on the Company’s operations and/or cause substantial dilution to its stockholders. These interim condensed consolidated financial statements
do not include any adjustments to the recoverability and classification of recorded asset amounts and the classification of liabilities
that might be necessary should the Company be unable to continue as going concern. Use of Estimates The preparation of these unaudited condensed consolidated
financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and judgments that affect
the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company
evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the
accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are
the most critical to fully understanding and evaluating its condensed consolidated financial statements. Cash and Cash Equivalents Cash and cash equivalents are carried at cost and
represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original
maturity of three months or less as of the purchase date of such investments. Software Development Costs The Company expenses software development costs, including
costs to develop software products or the software component of products to be marketed to external users, before technological feasibility
is reached. Technological feasibility is typically reached shortly before the release of such products and, as a result, development costs
that meet the criteria for capitalization were not material for the periods presented. The Company capitalizes development costs related
to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and
the software will be used to perform the function intended. On September 1, 2018, the Company engaged LOC Weibo
Co., Ltd (“LOC”), an unrelated company incorporated in Taiwan, to develop a mobile application in four stages for total consideration
of TWD20,000,000 ($651,466), payable in the form of shares of the Company’s restricted common stock. The first and second stages
of development for the basic functions of the mobile application have been completed, and the Company has issued an aggregate total of
908,678 shares of restricted common stock at a price per share of $0.50 for the work completed up to November 30, 2019. Of the shares of restricted common stock that have
been issued to LOC, nil and 390,375 shares of restricted common stock were issued during the three months ended November 30, 2019 and
2018, respectively, for the work completed during each period. The Company expensed $0 and $195,187 in development costs as general and
administrative expenses for the three months ended November 30, 2019 and 2018, respectively. As of November 30, 2019, the development
of the mobile application is still in progress and the Company has not capitalized any of the development costs. Revenue Recognition The Company adopted Accounting Standards Update (“ASU”)
No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which establishes principles for reporting
information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide
goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services
to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services
recognized as performance obligations are satisfied. The Company recognizes revenue following the five-step
model prescribed under ASU 2014-09: Step 1: Identify the contract Step 2: Identify the performance obligations Step 3: Determine the transaction price Step 4: Allocate the transaction price Step 5: Recognize revenue Revenue is recognized when control of the promised
goods or services is transferred to the Company’s customers, which may occur at a point in time or over time depending on the terms
and conditions of the agreement, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods
or services. Currently, the Company has an agreement with a third
party whereby the Company authorized the third party to use the Company’s investment platform and related applications from January
1, 2018 to December 31, 2020. Income from providing investment platform services with the use of a mobile application is recognized when
the service is performed. Revenue by
Recognition Over Time vs Point in Time
For the three months ended November 30,
2019 2018
Revenue by recognition over time $ 1,667 $ -
Revenue by recognition at a point in time - -
$ 1,667 $ - Other Income – Related Party Revenue from the subletting of leasehold land and
buildings is recognized on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken
possession or controls the physical use of the leased assets. The Company leased its commercial office in Taipei from April 1, 2018 to
February 28, 2019 under a non-cancelable operating lease with a term of 31 months to a related party, Greenpro LF Limited, which is owned
by Mr. Yi-Hsiu Lin, the Company’s Chief Executive Officer and a member of its board of directors (“Mr. Lin”), and Mr.
Chong Kuang Lee. Practical Expedients and Exemption The Company has not incurred any costs to obtain contracts,
and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Plant and Equipment Plant and equipment are stated at cost less accumulated
depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected
useful lives from the date on which they become fully operational:
Expected useful life
Furniture and fixture 3
Office equipment 3
Leasehold improvement 3 Impairment of Long-Lived Assets The Company reviews the carrying values of long-lived
assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted
net cash flows expected to be generated by the asset. If the assets are considered to be impaired, the impairment recognized is measured
by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment has been recorded by the
Company for the three months ended November 30, 2019 and 2018. Income Taxes Income taxes are determined in accordance with the
provisions of Accounting Standards Codification (“ASC”) Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies
should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on
a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the
position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as
the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority
assuming full knowledge of the position and relevant facts. The Company recorded a liability for an uncertain
income tax position, tax penalties and any imputed interest thereon of $20,000 and $0 at November 30, 2019 and August 31, 2019, respectively,
included in accrued payables and accrued liabilities due to the potential of incurring a tax penalty for filing tax returns with the Internal
Revenue Service late and, if recognized, such penalty will affect the Company’s effective tax rate. The Company conducts business in Hong Kong and is
subject to tax in the jurisdiction of Hong Kong. As a result of its business activities, the Company will file tax returns that are subject
to examination by the Hong Kong tax authority. Net Income/(Loss) Per Share The Company calculates net income/(loss) per share
in accordance with ASC Topic 260, “Earnings per Share.”
For the three months ended November 30,
2019 2018
Net loss $ (1,249,630 ) $ (399,313 )
Weighted average number of shares of common stock outstanding - Basic and diluted* 113,684,073 104,665,770
Net loss per share - Basic and diluted $ (0.01 ) $ - * Including 8,500,000
and nil shares that were granted and vested but not yet issued for the three months ended November 30, 2019 and 2018, respectively. Stock-based compensation Stock-based compensation
is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718 (“ASC 718”), which requires recognition
in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over
the vesting period or immediately if fully vested and non-forfeitable. The Financial Accounting Standards Board (“FASB”) also
requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value
of the award. Additionally, ASU No. 2016-09,
Improvements to Employee Share-Based Payment Accounting, permits the election of an accounting policy for forfeitures of share-based payment
awards, either to recognize forfeitures as they occur or estimate forfeitures over the vesting period of the award. The Company has elected
to recognize forfeitures as they occur. In June 2018, the FASB issued ASU No. 2018-07, “Compensation—Stock
Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”), which simplifies
several aspects of the accounting for nonemployee share-based payment transactions by expanding the scope of the stock-based compensation
guidance in ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 is effective
for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted,
but entities may not adopt prior to adopting the new revenue recognition guidance in ASC Topic 606, Revenue from Contracts with Customers.
The Company adopted ASU 2018-07 on September 1, 2019 and there was no cumulative effect of adoption. Foreign Currencies Translation Transactions denominated in currencies other than
the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions.
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency
using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. The reporting currency of the Company is United States
Dollars (“US$”). The Company’s subsidiaries in Seychelles and Hong Kong maintain their books and records in US$ and
Hong Kong Dollars (“HK$”), respectively. HK$ is the functional currency and the primary currency of the economic environment
in which the Company operates. In general, for consolidation purposes, the assets
and liabilities of the Company’s subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC
Topic 830-30, “ Translation of Financial Statement Related Parties Parties, which can be a corporation or an individual,
are considered to be related if the Company has the ability to, directly or indirectly, control the other party or exercise significant
influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject
to common control or common significant influence. Fair Value of Financial Instruments: The carrying value of the Company’s financial
instruments, such as cash and cash equivalents, deposits, notes receivable, accounts payable and accrued liabilities, balances due to
a director and bonds payable, approximate at their fair values because of the short-term nature of these financial instruments or the
rate of interest of these instruments approximate the market rate of interest. The Company also follows the guidance of the ASC Topic
820, “ Fair Value Measurements and Disclosures Level 1 Level 2 Level 3: Leasing Under ASC Topic 842, “ Leases The Company’s only lease meets the definition
of a short-term lease because the initial lease term is 12 months or less. Consequently, the Company does not recognize the ROU asset
and the lease liability arising from this lease. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02,
“Leases (Topic 842)” and issued certain transitional guidance and subsequent amendments between January 2018 and March 2019
within ASU No. 2018-01, ASU No. 2018-10, ASU No. 2018-11, ASU No. 2018-20 and ASU No. 2019-01 (collectively, including ASU No. 2016-02,
“ASC 842”), which amends ASC Topic 840, the existing accounting standards for lease accounting. ASC 842 generally requires
lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide
enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted ASC 824
on September 1, 2019 using the modified retrospective transition approach by applying the new standard to all leases existing at the date
of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease
liabilities for operating leases. The adoption of ASC 842 did not have a material impact on net assets and the consolidated statement
of comprehensive income. In June 2018, the FASB issued ASU 2018-07, which expands
the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. The new standard
became effective for the Company on September 1, 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s
condensed consolidated financial statements. |
