| Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
| Feb. 28, 2021 |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation These interim condensed consolidated financial statements
of the Company and its subsidiaries are unaudited. In the opinion of management, all adjustments (which are of a normal recurring nature)
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/A for the year
ended August 31, 2020, which was filed with the SEC on July 19, 2021. |
| Going Concern | 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 records an accumulated deficit of $17,534,982 as of February 28, 2021. 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 cash flows from operations, loans from existing directors and shareholders and placements of capital stock for additional funding.
In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations
as well as to achieve our strategic objectives, a shareholder 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. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations,
in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing. In March 2020 the World Health Organization declared
coronavirus COVID-19 a global pandemic. The COVID-19 pandemic has negatively impacted the global economy, workforces, customers, and created
significant volatility and disruption of financial markets. It has also disrupted the normal operations of many businesses, including
the Company’s businesses. This outbreak could decrease spending, adversely affect demand for the Company’s services and harm
its business and results of operations. It is not possible for the Company to predict the duration or magnitude of the adverse results
of the outbreak and its effects on its business or results of operations at this time. 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 | 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. The COVID-19 pandemic has created and may continue
to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand
for the Company’s business, and adversely impact its results of operations. The Company expects uncertainties around its key accounting
estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may
change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial
statements. 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. |
| Business Combination | Business combination The Company
accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification
(“ASC”) 805 “Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition
date fair values of the assets transferred and liabilities incurred by the Company to the sellers and equity instruments issued. Transaction
costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured
separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of
(i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held
equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the
cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in
the consolidated statements of comprehensive income. During the measurement period, which can be up to one year from the acquisition date,
the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the
conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first,
any subsequent adjustments are recorded to the consolidated statements of comprehensive income. When there
is a change in ownership interests that result in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the
date control is lost. Any retained non-controlling investment in the former subsidiary is measured at fair value and is included in the
calculation of the gain or loss upon deconsolidation of the subsidiary. |
| Goodwill and Impairment of Goodwill | Goodwill and impairment of goodwill Goodwill represents the excess of the purchase price
and related costs over the fair value of the net identified tangible and intangible assets and liabilities assumed and is not amortized.
The total amount of goodwill is deductible for tax purposes. In accordance with ASC Topic 350, “Intangibles-Goodwill
and Other,” goodwill is not amortized but is tested for impairment, annually or more frequently when circumstances indicate a possible
impairment may exist. Impairment testing is performed at a reporting unit level. An impairment loss generally would be recognized when
the carrying amount of the reporting unit exceeds its fair value. The Company estimates fair value of the applicable
reporting unit or units using a discounted cash flow methodology. This methodology represents a level 3 fair value measurement as defined
under ASC 820, Fair Value Measurements and Disclosures, since the inputs are not readily observable in the marketplace. The goodwill impairment
testing process involves the use of significant assumptions, estimates and judgments, including projected sales, gross margins, selling,
general and administrative expenses, and capital expenditures, and the selection of an appropriate discount rate, all of which are subject
to inherent uncertainties and subjectivity. When the Company performs goodwill impairment testing, its assumptions are based on annual
business plans and other forecasted results, which it believes represent those of a market participant. The Company selects a discount
rate, which is used to reflect market-based estimates of the risks associated with the projected cash flows based on the best information
available as of the date of the impairment assessment. Based on the annual impairment analysis, there is no impairment on the goodwill
recorded in the Company’s financial statements. Given the current macro-economic environment and
the uncertainties regarding its potential impact on the Company’s business, there can be no assurance that its estimates and assumptions
used in its impairment tests will prove to be accurate predictions of the future. If the Company’s assumptions regarding forecasted
cash flows are not achieved, it is possible that an impairment review may be triggered and goodwill may be impaired. |
| Cash and Cash Equivalents | 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 | 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 (before the acquisition of NPI
(Note 1)), JFB appointed LOC 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. As of August 31, 2019, the first and second stages of development
for the basic functions of the mobile application have been completed, and the Company has issued a total of 908,678 of restricted common
shares in aggregate at $0.50 per share for the work completed up to August 31, 2019. The Company has expensed $454,339 development costs
for the first and second development stage in general and administrative expenses for the year ended August 31, 2019. In August 2020,
the development of the mobile application has been completed, and the Company expensed $0.2 million development costs in general and administrative
expenses for the year ended August 31, 2020. Further $600,000 was incurred for additional functions developed and $200,000 was incurred
for the acquisition of the ownership of the intellectual property in the year ended August 31, 2020. No development costs were expensed as general and
administrative expenses for the six and three months ended February 28, 2021 and February 29, 2020. |
| Revenue Recognition | 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 Revenues are 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. |
| Provision of Investment Platform Services | Provision of investment platform services The Company signed an agreement with a third party
whereby the Company authorized the third party to use the Company’s JFB platform and related applications for a period until December
31, 2020. Income from provision of investment platform services with the use of the Company’s mobile applications is recognized
when the service is performed. From September, 2020, the Company generated additional
revenue from a new, more comprehensive mobile application, which refer to as the FinMaster mobile application (the “FinMaster App”
and together with the JFB platform, the “Apps”), with similar functions as the JFB platform. Income from providing investment
platform services with the use of a mobile application is recognized when the service is performed. The Company offers a self-managed points program,
which can be used in the FinMaster App to redeem merchandise or services. The Company determines the value of each point based on estimated
incremental cost. Customers and advocates have a variety of ways to obtain the points. The major accounting policy for its points program
is described as follows: The Company concludes the bonus points offered linked
to the purchase transaction of the points is a material right and accordingly a separate performance obligation according to ASC 606,
and should be taken into consideration when allocating the transaction price of the point sales. The Company also estimates the probability
of points redemption when performing the allocation. The amount allocated to the bonus points as separate performance obligation is recorded
as contract liability (deferred revenue) and revenue should be recognized when future goods or services are transferred. The Company will
continue to monitor when and if forfeiture rate data becomes available and will apply and update the estimated forfeiture rate at each
reporting period. Since historical information is limited for the Company
to determine any potential points forfeitures and most merchandise can be redeemed without requiring a significant amount of points compared
with the amount of points provided to users, the Company has used an estimated forfeiture rate of zero. |
| Provision of Software Development Service and Maintenance Service | Provision
of software development service and maintenance service The Company
entered into several agreements with third party customers to assist the customers in the development of their mobile communications
software and mobile e-commerce software. Income from provision of software development service and maintenance service are recognized
when the service is performed. |
| Revenue by Major Product Line | Revenue by
major product line
For the six months ended For the three months ended
February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020
Provision of investment platform services $ 10,408 $ 3,333 $ 6,788 $ 1,666
Provision of software development service and maintenance service 44,844 - 25,601 -
$ 55,252 $ 3,333 $ 32,389 $ 1,666 |
| Revenue by Recognition Over Time Vs Point in Time | Revenue by
Recognition Over Time vs Point in Time
For the six months ended For the three months ended
February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020
Revenue by recognition over time $ 55,252 $ 3,333 $ 32,389 $ 1,666
Revenue by recognition at a point in time - - - -
$ 55,252 $ 3,333 $ 32,389 $ 1,666 Remaining performance obligations represent contracted
revenues that had not yet been recognized, and include deferred revenues; invoices that have been issued to customers but were uncollected
and have not been recognized as revenues; and amounts that will be invoiced and recognized as revenues in future periods. As of February
28, 2021, the Company’s remaining performance obligations were $9,962, which it expects to recognize as revenues over the next twelve
months and the remainder thereafter. The Company had not occurred any costs to obtain contracts. The Company does not have amounts of contract assets
since revenue is recognized as control of goods or services is transferred. The contract liabilities consist of advance payments from
customers. The contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period.
All contract liabilities are expected to be recognized as revenue within one year and are included in other payables and accrued liabilities
in the consolidated balance sheet. |
| Contract Balances | Contract balances The Company’s contract liabilities consist of
receipts in advance for software development and FinMaster App. Below is the summary presenting the movement of the Company’s contract
liabilities for the six months ended February 28, 2021:
Receipt in advance
Balance as of September 1, 2020 $ 2,896
Advances received from customers related to unsatisfied performance obligations 9,760
Revenue recognized from beginning contract liability balance (2,990 )
Exchange difference 296
Balance as of February 28, 2021 $ 9,962 |
| Practical Expedients and Exemption | 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. |
| Research and Development Expenses | Research and development expenses Research and development (“R&D”) expenses
are primary comprised of charges for R&D and consulting work performed by third parties; salaries and benefits for those employees
engaged in research, design and development activities; costs related to design tools; and allocated costs. For the six months ended February 28, 2021 and February
29, 2020, the total R&D expenses were $304,565 and $nil, respectively. For the three months ended February 28, 2021 and
February 29, 2020, the total R&D expenses were $157,594 and $nil, respectively. |
| Sales and Marketing Expenses | Sales and marketing expenses Sales and marketing expenses consist primarily of
marketing and promotional expenses, salaries and other compensation-related expenses to sales and marketing personnel. Advertising expenses
consist primarily of costs for the promotion of corporate image and product marketing. The Company expenses all advertising costs as incurred
and classifies these costs under sales and marketing expenses. For the six months ended February 28, 2021 and February 29, 2020, advertising
costs totaled $143,828 and $nil, respectively. For the three months ended February 28, 2021 and February 29, 2020, advertising costs totaled
$46,467 and $nil, respectively. From September 2019, customers or users of the FinMaster
App can obtain points through any other ways such as account registration referral to the FinMaster App, frequent sign-ins to the application
and sharing articles from the application to users’ own social media, etc. The Company believes these points are to encourage user
engagement and generate market awareness. As a result, the Company accounts for such points as sales and marketing expenses with a corresponding
liability recorded under other current liabilities of its condensed consolidated balance sheets upon the points offering. The Company
estimates liabilities under the customer loyalty program based on cost of the merchandise that can be redeemed, and its estimate of probability
of redemption. At the time of redemption, the Company records a reduction of inventory and other current liabilities. Since historical information is limited for the Company
to determine any potential points forfeiture and most merchandise can be redeemed without requiring a significant amount of points compared
with the amount of points provided to users, the Company has used an estimated forfeiture rate of zero. For the six months ended February 28, 2021 and February
29, 2020, redeemable point liability charged as sales and marketing expenses were $26,902 and $nil, respectively. For the three months ended February 28, 2021 and February
29, 2020, redeemable point liability charged as sales and marketing expenses were $14,561 and $nil, respectively. As of February 28, 2021 and August 31, 2020, liabilities
recorded related to unredeemed points were $67,301 and $40,003, respectively, which were included in other payables (note 8). |
| General and Administrative Expenses | General and administrative expenses General and administrative expenses consist primarily
of salaries, bonuses and benefits for employees involved in general corporate functions, depreciation and amortization of fixed assets,
legal and other professional services fees, rental and other general corporate related expenses. |
| Inventory | Inventory Inventories are stated at the lower of cost or net
realizable value. Cost is calculated on the average basis and includes all costs to acquire and other costs to bring the inventories to
their present location and condition. The Company records inventory write-downs for excess or obsolete inventories based upon assumptions
on current and future demand forecasts. If the inventory on hand is in excess of future demand forecast, the excess amounts are written
off. The Company also reviews inventory to determine whether its carrying value exceeds the net amount realizable upon the ultimate sale
of the inventory. This requires the determination of the estimated selling price of the vehicles less the estimated cost to convert inventory
on hand into a finished product. Once inventory is written-down, a new, lower-cost basis for that inventory is established and subsequent
changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inventory as of February 28, 2021 represents merchandise
inventory which can be redeemed by deducting membership rewards points of customer loyalty program. |
| Leases | Leases The Company determines if an arrangement is a lease
or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments,
discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable
for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date
to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the
Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement
of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical
expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating
leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance
sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. The operating lease is included in operating lease
right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the Company’s consolidated
balance sheets. |
| Plant and Equipment | 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 |
| Intangible Asset | Intangible asset The Company recorded intangible assets with definite
lives, including investment platform and technical know-hows. Intangible assets are recorded at cost less accumulated amortization with
no residual value. Amortization of intangible assets is computed using the straight-line method over their estimated useful lives. The estimated useful lives of the Company’s
intangible assets are listed below:
Investment platform 5 years
Technical know-hows 8 years
Trademarks 10 years |
| Impairment of Long-Lived Assets (Including Amortizable Intangible Assets) | Impairment of Long-Lived Assets (including amortizable
intangible 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 six and three months ended February 28, 2021 and February 29, 2020. |
| Income Taxes | 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. As of February 28, 2021, the Company has no accrued interest or penalties
related to uncertain tax positions. The Company conducts business in the PRC, Taiwan
and Hong Kong and is subject to tax in these jurisdictions. As a result of its business activities, the Company will file tax returns
that are subject to examination by the respective tax authorities. |
| Net Loss Per Share | Net Loss Per Share The Company calculates net loss per share in accordance
with ASC Topic 260, “Earnings per Share.”
For the three months ended For the three months ended
February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020
Net loss $ (6,227,407 ) $ (2,491,740 ) $ (2,570,347 ) $ (1,242,110 )
Weighted average number of shares of common stock outstanding - Basic and diluted* 139,224,402 113,684,073 141,553,018 113,684,073
Net loss per share - Basic and diluted $ (0.05 ) $ (0.02 ) $ (0.02 ) $ (0.01 ) * Including 58,333
shares that were granted and vested but not yet issued for the period ended February 28, 2021 (note 13); and including nil shares that
were granted and vested but not yet issued for the period ended February 29, 2020. As of February 28, 2021 and August 31, 2020, the
Company’s convertible notes payable were excluded from the diluted loss per share calculation as they were anti-dilutive. |
| Stock-based Compensation | 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 | 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$”). The Company’s subsidiary in Seychelles, the PRC, Taiwan and Hong Kong maintains its books and record
in United States Dollars (“US$”), Renminbi (“RMB”), New Taiwanese Dollars (“NT$”) and Hong Kong Dollars
(“HK$”) respectively, which are the primary currencies of the economic environment in which the entities operate (the functional
currencies). In general, for consolidation purposes, the assets
and liabilities of the Company’s subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC
Topic 830-30, “ Translation of Financial Statement Translation of amounts from foreign currencies into
US$ has been made at the following exchange rates for the respective periods:
As of As of
Period-end HK$ : US$ 1 exchange rate 7.80 7.80
Period-end NT$ : US$ 1 exchange rate 27.87 29.37
Period-end RMB : US$ 1 exchange rate 6.47 6.85
For the six months ended,
February 28, 2021 February 29, 2020
Period average HK$ : US$ 1 exchange rate 7.80 7.80
Period average NT$ : US$ 1 exchange rate 28.45 N/A
Period average RMB : US$ 1 exchange rate 6.61 N/A |
| Related Parties | 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. |
| Convertible Instruments | Convertible instruments The Company accounts for hybrid contracts that feature
conversion options in accordance with U.S. GAAP. ASC 815 “Derivatives and Hedging Activities,” (“ASC 815”) requires
companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments
according to certain criteria. The criteria includes circumstances in which (a) the economic characteristics and risks of the embedded
derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid
instrument that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under otherwise
applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument
with the same terms as the embedded derivative instrument would be considered a derivative instrument. Conversion options that contain variable settlement
features such as provisions to adjust the conversion price upon subsequent issuances of equity or equity linked securities at exercise
prices more favorable than that featured in the hybrid contract generally result in their bifurcation from the host instrument. The Company accounts for convertible instruments,
when the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, in accordance
with ASC 470-20 “Debt with Conversion and Other Options” (“ASC 470-20”). Under ASC 470-20 the Company records,
when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon
the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective
conversion price embedded in the note. The Company accounts for convertible instruments (when the Company has determined that the embedded
conversion options should be bifurcated from their host instruments) in accordance with ASC 815. Under ASC 815, a portion of the proceeds
received upon the issuance of the hybrid contract are allocated to the fair value of the derivative. The derivative is subsequently marked
to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations. |
| Fair Value of Financial Instruments | Fair Value of Financial Instruments: The carrying value of the Company’s financial
instruments: cash and cash equivalents, deposits, accounts payable and accrued liabilities, balances due with directors and shareholders,
convertible notes payable 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: The following table sets forth by level within the
fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis:
Carrying Value at Fair Value Measurement at
August 31, 2020 August 31, 2020
Level 1 Level 2 Level 3
Convertible notes measured at fair value $ 104,000 $ - $ - $ 104,000
Carrying Value at Fair Value Measurement at
February 28, 2021 February 28, 2021
Level 1 Level 2 Level 3
Convertible notes measured at fair value $ 1,237,000 $ - $ - $ 1,237,000
A summary of changes in financial liabilities for
the three months ended February 28, 2021 was as follows:
Balance at September 1, 2020 $ 104,000
Issuance of convertible notes 800,000
Fair value loss on issuance of convertible notes 526,838
Interest expenses on convertible notes 2,712
Change in fair value of convertible notes (196,550 )
Balance at February 28, 2021 $ 1,237,000 Fair value of the convertible notes is determined
using the binomial model using the following assumptions at inception and on subsequent valuation dates:
Convertible notes holders Teh-Ling Chen Li-Ching Yang Jui-Chin Chen Teh-Ling Chen Chin-Ping Wang Chin-Nan Wang Chin-Chiang Wang Teh-Ling Chen
Appraisal Date (Inception Date) February 24, 2020 February 27, 2020 March 18, 2020 November 2, 2020 November 25, 2020 January 15, 2021
Risk-free Rate 1.25 % 1.06 % 0.54 % 0.16 % 0.16 % 0.1 %
Applicable Closing Stock Price $ 1.25 $ 1.25 $ 1.20 $ 0.12 $ 3.00 $ 2.00
Conversion Price $ 1.00 (i) $ 1.00 (i) $ 1.00 (i) $ 0.40 $ 0.40 $ 0.40
$ 1.50 (ii) $ 1.50 (ii) $ 1.50 (ii)
Volatility 27.82 % 27.94 % 34.20 % 41.51 % 42.00 % 43.50 %
Dividend Yield 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
Credit Spread 2.71 % 2.96 % 6.88 % 7.52 % 6.93 % 6.76 %
Liquidity Risk Premium 42.09 % 36.26 % 51.08 % 77.62 % 78.14 % 75.73 %
Appraisal Date August 31, 2020
Risk-free Rate N/A N/A 0.13 % N/A N/A N/A
Applicable Closing Stock Price N/A N/A $ 1.00 N/A N/A N/A
Conversion Price N/A N/A $ 0.40 N/A N/A N/A
Volatility N/A N/A 43.71 % N/A N/A N/A
Dividend Yield N/A N/A 0.00 % N/A N/A N/A
Credit Spread N/A N/A 3.80 % N/A N/A N/A
Liquidity Risk Premium N/A N/A 76.69 % N/A N/A N/A
Appraisal Date February 28, 2021 February 28, 2021 February 28, 2021 February 28, 2021
Risk-free Rate N/A N/A 0.07 % 0.11 % 0.11 % 0.12 %
Applicable Closing Stock Price N/A N/A $ 2.01 $ 2.01 $ 2.01 $ 2.01
Conversion Price N/A N/A $ 0.40 $ 0.40 $ 0.40 $ 0.40
Volatility N/A N/A 47.51 % 44.53 % 44.13 % 45.25 %
Dividend Yield N/A N/A 0.00 % 0.00 % 0.00 % 0.00 %
Credit Spread N/A N/A 6.66 % 6.70 % 6.70 % 6.71 %
Liquidity Risk Premium N/A N/A 77.11 % 70.65 % 74.28 % 70.11 % (i) USD1.00 per share if converted on or before the
one-year anniversary of the issuance date (ii) USD1.50 per share if converted at any time after
the one-year anniversary of the issuance date |
| Segment Reporting | Segment reporting ASC Topic 280, “Segment Reporting,” requires
use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s
chief operating decision maker organizes segments within the company for making operating decisions assessing performance and allocating
resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner
in which management disaggregates a company. Management determined that the Company’s operations
constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business and industry segment:
the provision of investment platform services through mobile application. |
| Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In August 2018, the FASB issued ASU 2018-13, Fair
Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies
the disclosure requirements for Level 1, Level 2 and Level 3 instruments in the fair value hierarchy. The guidance is effective for fiscal
years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated
or modified disclosures. The Company applied the new standard beginning September 1, 2020. Recently issued accounting pronouncements not
yet adopted In January 2017, the FASB issued ASU No. 2017-04,
Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical
purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair
value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company,
the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early
adoption permitted. The Company is currently evaluating the impact of adopting this standard on its condensed consolidated financial statements. In May 2019, the Financial Accounting Standards Board
(“FASB”) issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic
326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement
of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments
in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification.
Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses
when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale
Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the
fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition
relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar
financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments
in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for “smaller
reporting companies” for fiscal year beginning after December 15, 2022. The Company is currently evaluating the impact of this new
standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12: Simplifying
the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent
application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for
fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, with early adoption permitted. The Company
is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company’s
consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference
Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities
that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference
rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply the elections as applicable as
changes in the market occur. In August 2020, the FASB issued ASU 2020-06, Debt
- Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies
the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting
for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion
and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately
from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding
financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’
equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share,
to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition,
entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies,
ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early
adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective
for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance
as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently
evaluating the impact that ASU 2020-06 may have on its consolidated financial statements and related disclosures. Except for the above-mentioned pronouncements, there
are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations
and cash flows. |
