Cover
Cover - shares | 9 Months Ended | |
Nov. 30, 2021 | Jan. 11, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Nov. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --02-28 | |
Entity File Number | 001-41187 | |
Entity Registrant Name | FINGERMOTION, INC. | |
Entity Central Index Key | 0001602409 | |
Entity Tax Identification Number | 20-0077155 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1460 Broadway | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | (347) | |
Local Phone Number | 349-5339 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FNGR | |
Security Exchange Name | NASDAQ | |
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 | 42,567,260 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 1,116,448 | $ 850,717 |
Accounts receivable | 3,339,192 | 4,099,312 |
Inventories | 15,909 | 1,401 |
Prepayment and deposit | 3,145,675 | 646,377 |
Other receivables | 2,153,249 | 1,506,720 |
Current Assets | 9,770,473 | 7,104,527 |
Non-current Assets | ||
Equipment | 29,441 | 26,453 |
Intangible assets | 136,158 | 161,210 |
Right-of-use asset | 12,526 | 49,314 |
Non-current Assets | 178,125 | 236,977 |
TOTAL ASSETS | 9,948,598 | 7,341,504 |
Current Liabilities | ||
Accounts payable | 1,675,465 | 2,473,636 |
Accrual and other payables | 2,202,827 | 1,046,190 |
Stock subscription payables | 390,000 | |
Loan payable, current portion | 544,900 | |
Lease liability, current portion | 12,526 | 47,569 |
Current Liabilities | 4,280,818 | 4,112,295 |
Non-current Liabilities | ||
Loan payable, non-current portion | 1,109,307 | |
Lease liability, non-current portion | 4,936 | |
Non-current Liabilities | 1,114,243 | |
TOTAL LIABILITIES | 4,280,818 | 5,226,538 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, par value $.0001 per share; Authorized 1,000,000 shares; issued and outstanding -0- shares. | ||
Common Stock, par value $.0001 per share; Authorized 200,000,000 shares; issued and outstanding 42,482,260 shares and 38,903,494 issued and outstanding at November 30, 2021 and February 28, 2021 respectively | 4,248 | 3,890 |
Additional paid-in capital | 21,065,955 | 14,170,815 |
Accumulated deficit | (15,613,001) | (12,208,728) |
Accumulated other comprehensive income | 199,517 | 140,906 |
Stockholders’ equity before non-controlling interests | 5,656,719 | 2,106,883 |
Non-controlling interests | 11,061 | 8,083 |
TOTAL SHAREHOLDERS’ EQUITY | 5,667,780 | 2,114,966 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 9,948,598 | $ 7,341,504 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Nov. 30, 2021 | Feb. 28, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, par value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 42,482,260 | 38,903,494 |
Common Stock, Shares, Outstanding | 42,482,260 | 38,903,494 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 5,901,899 | $ 4,881,601 | $ 17,285,302 | $ 11,245,589 |
Cost of revenue | (4,934,824) | (4,261,058) | (15,001,674) | (10,072,216) |
Gross profit | 967,075 | 620,543 | 2,283,628 | 1,173,373 |
Amortization & depreciation | (14,721) | (45,734) | (43,544) | (53,351) |
General & administrative expenses | (1,521,114) | (793,550) | (4,145,775) | (2,378,566) |
Marketing Cost | (240,299) | (136,960) | (384,381) | (268,216) |
Research & Development | (158,055) | (124,723) | (438,033) | (351,867) |
Stock compensation expenses | (96,891) | (201,007) | (579,437) | (272,717) |
Total operating expenses | (2,031,080) | (1,301,974) | (5,591,170) | (3,324,717) |
Net loss from operations | (1,064,005) | (681,431) | (3,307,542) | (2,151,344) |
Other income (expense): | ||||
Interest income | 955 | 1,009 | 2,672 | 1,415 |
Interest expense | (90,864) | (172,813) | (184,413) | |
Exchange gain (loss) | (619) | 171 | (2,298) | 1,200 |
Other income | 26,497 | 65,469 | 78,686 | 88,729 |
Total other income (expense) | 26,833 | (24,215) | (93,753) | (93,069) |
Net loss before income tax | (1,037,172) | (705,646) | (3,401,295) | (2,244,413) |
Income tax expenses | ||||
Net Loss | (1,037,172) | (705,646) | (3,401,295) | (2,244,413) |
Less: Net profit attributable to the non-controlling interest | (553) | 2,507 | 2,978 | 2,840 |
Net loss attributable to the Companys shareholders | (1,036,619) | (708,153) | (3,404,273) | (2,247,253) |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 85,965 | 94,707 | 58,611 | 106,446 |
Comprehensive loss | (950,654) | (613,446) | (3,345,662) | (2,140,807) |
Less: comprehensive income (loss) attributable to non-controlling interest | 171 | 315 | 168 | 411 |
Comprehensive loss attributable to the Company | $ (950,825) | $ (613,761) | $ (3,345,830) | $ (2,141,218) |
NET LOSS PER SHARE | ||||
Loss Per Share - Basic | $ (0.02) | $ (0.02) | $ (0.08) | $ (0.07) |
Loss Per Share - Diluted | (0.02) | (0.02) | (0.08) | (0.07) |
NET LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY | ||||
Loss Per Share - Basic | (0.02) | (0.02) | (0.08) | (0.07) |
Loss Per Share - Diluted | $ (0.02) | $ (0.02) | $ (0.08) | $ (0.07) |
Weighted Average Common Shares Outstanding - Basic | 42,281,985 | 35,032,380 | 40,280,409 | 32,424,218 |
Weighted Average Common Shares Outstanding - Diluted | 42,281,985 | 35,032,380 | 40,280,409 | 32,424,218 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Capital Paid In Excess Par Value [Member] | Shares To Be Issued [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Feb. 29, 2020 | $ 2,585 | $ 7,521,587 | $ (7,826,754) | $ 3,964 | $ (298,618) | $ 4,183 | $ (294,435) | |
Beginning Balance, Shares at Feb. 29, 2020 | 25,847,953 | |||||||
Common stock issued for professional service | $ 804 | 282,771 | 283,575 | 283,575 | ||||
Common stock issued for professional service, Shares | 8,045,000 | |||||||
Accumulated other comprehensive income | (15,874) | (15,874) | (15,874) | |||||
Net (Loss) | (578,077) | (578,077) | 26 | (578,051) | ||||
Ending balance, value at May. 31, 2020 | $ 3,389 | 7,804,358 | (8,404,831) | (11,910) | (608,994) | 4,209 | (604,785) | |
Ending Balance, Shares at May. 31, 2020 | 33,892,953 | |||||||
Stock Redeemed or Called During Period, Shares | (15,000) | |||||||
Beginning balance, value at Feb. 29, 2020 | $ 2,585 | 7,521,587 | (7,826,754) | 3,964 | (298,618) | 4,183 | (294,435) | |
Beginning Balance, Shares at Feb. 29, 2020 | 25,847,953 | |||||||
Common stock issued for cash | (1,361,000) | |||||||
Net (Loss) | (2,244,413) | |||||||
Ending balance, value at Nov. 30, 2020 | $ 3,620 | 9,567,378 | (10,074,007) | 110,410 | (392,599) | 7,023 | (385,576) | |
Ending Balance, Shares at Nov. 30, 2020 | 36,200,557 | |||||||
Stock subscribed / (cancelled) | (15,000) | |||||||
Beginning balance, value at May. 31, 2020 | $ 3,389 | 7,804,358 | (8,404,831) | (11,910) | (608,994) | 4,209 | (604,785) | |
Beginning Balance, Shares at May. 31, 2020 | 33,892,953 | |||||||
Accumulated other comprehensive income | 27,613 | 27,613 | 27,613 | |||||
Net (Loss) | (961,023) | (961,023) | 307 | (960,716) | ||||
Ending balance, value at Aug. 31, 2020 | $ 3,374 | 7,789,373 | (9,365,854) | 15,703 | (1,557,404) | 4,516 | (1,552,888) | |
Ending Balance, Shares at Aug. 31, 2020 | 33,742,953 | |||||||
Stock subscribed / (cancelled) | $ (15) | (14,985) | (15,000) | (15,000) | ||||
Common stock issued for cash | $ 169 | 1,360,831 | 1,361,000 | 1,361,000 | ||||
Common stock issued for cash, Shares | 1,683,500 | |||||||
Common stock issued for professional service | $ 77 | 417,174 | 417,251 | 417,251 | ||||
Common stock issued for professional service, Shares | 774,104 | |||||||
Accumulated other comprehensive income | 94,707 | 94,707 | 94,707 | |||||
Net (Loss) | (708,153) | (708,153) | 2,507 | (705,646) | ||||
Ending balance, value at Nov. 30, 2020 | $ 3,620 | 9,567,378 | (10,074,007) | 110,410 | (392,599) | 7,023 | (385,576) | |
Ending Balance, Shares at Nov. 30, 2020 | 36,200,557 | |||||||
Beginning balance, value at Feb. 28, 2021 | $ 3,890 | 14,170,815 | (12,208,728) | 140,906 | 2,106,883 | 8,083 | 2,114,966 | |
Beginning Balance, Shares at Feb. 28, 2021 | 38,903,494 | |||||||
Common stock issued for cash | $ 9 | 179,990 | 179,999 | 179,999 | ||||
Common stock issued for cash, Shares | 86,666 | |||||||
Common stock issued for professional service | $ 1 | 9,999 | 10,000 | 10,000 | ||||
Common stock issued for professional service, Shares | 5,000 | |||||||
Accumulated other comprehensive income | 60,184 | 60,184 | 60,184 | |||||
Net (Loss) | (911,890) | (911,890) | 2,384 | (909,506) | ||||
Ending balance, value at May. 31, 2021 | $ 3,900 | 14,360,804 | (13,120,618) | 201,090 | 1,445,176 | 10,467 | 1,455,643 | |
Ending Balance, Shares at May. 31, 2021 | 38,995,160 | |||||||
Beginning balance, value at Feb. 28, 2021 | $ 3,890 | 14,170,815 | (12,208,728) | 140,906 | 2,106,883 | 8,083 | 2,114,966 | |
Beginning Balance, Shares at Feb. 28, 2021 | 38,903,494 | |||||||
Common stock issued for cash | (4,674,498) | |||||||
Net (Loss) | (3,401,295) | |||||||
Ending balance, value at Nov. 30, 2021 | $ 4,248 | 21,065,955 | (15,613,001) | 199,517 | 5,656,719 | 11,061 | 5,667,780 | |
Ending Balance, Shares at Nov. 30, 2021 | 42,482,260 | |||||||
Stock subscribed / (cancelled) | ||||||||
Beginning balance, value at May. 31, 2021 | $ 3,900 | 14,360,804 | (13,120,618) | 201,090 | 1,445,176 | 10,467 | 1,455,643 | |
Beginning Balance, Shares at May. 31, 2021 | 38,995,160 | |||||||
Common stock issued for cash | $ 67 | 3,114,432 | 3,114,499 | 3,114,499 | ||||
Common stock issued for cash, Shares | 673,900 | |||||||
Common stock issued for professional service | $ 5 | 259,995 | 260,000 | 260,000 | ||||
Common stock issued for professional service, Shares | 55,000 | |||||||
Accumulated other comprehensive income | (87,538) | (87,538) | (87,538) | |||||
Net (Loss) | (1,455,764) | (1,455,764) | 1,147 | (1,454,617) | ||||
Ending balance, value at Aug. 31, 2021 | $ 4,220 | 19,675,983 | (14,576,382) | 113,552 | 5,217,373 | 11,614 | 5,228,987 | |
Ending Balance, Shares at Aug. 31, 2021 | 42,201,260 | |||||||
Execution of convertible notes | $ 248 | 1,940,752 | 1,941,000 | 1,941,000 | ||||
Execution of convertible notes, Shares | 2,477,200 | |||||||
Common stock issued for cash | $ 28 | 1,379,972 | 1,380,000 | 1,380,000 | ||||
Common stock issued for cash, Shares | 276,000 | |||||||
Common stock issued for professional service | 10,000 | 10,000 | 10,000 | |||||
Common stock issued for professional service, Shares | 5,000 | |||||||
Accumulated other comprehensive income | 85,965 | 85,965 | 85,965 | |||||
Net (Loss) | (1,036,619) | (1,036,619) | (553) | (1,037,172) | ||||
Ending balance, value at Nov. 30, 2021 | $ 4,248 | $ 21,065,955 | $ (15,613,001) | $ 199,517 | $ 5,656,719 | $ 11,061 | $ 5,667,780 | |
Ending Balance, Shares at Nov. 30, 2021 | 42,482,260 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net (loss) | $ (3,401,295) | $ (2,244,413) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Share based compensation expenses | 579,437 | 272,717 |
Amortization and depreciation | 43,544 | 53,351 |
Amortization of right of use assets | 18,470 | |
Change in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | 760,120 | (1,382,141) |
(Increase) decrease in prepayment and deposit | (2,798,735) | 814,310 |
(Increase) decrease in others receivable | (646,529) | (1,278,777) |
(Increase) decrease in inventories | (14,508) | (1,380) |
Increase (decrease) in accounts payable | (798,171) | 386,507 |
Increase (decrease) in accrual and other payables | 1,156,637 | (66,702) |
Increase (decrease) in due to related parties | (687,515) | |
Increase (decrease) in due to lease liability | (3,191) | (17,797) |
Net Cash provided by (used in) operating activities | (5,122,691) | (4,133,370) |
Cash flows from investing activities | ||
Purchase of equipment | (13,776) | (102,559) |
Purchase of intangible assets | (218,070) | |
Net cash provided by (used in) investing activities | (13,776) | (320,629) |
Cash flows from financing activities | ||
Proceed from loan payable | 299,695 | 1,654,207 |
Advances from stock subscription payables | 390,000 | 2,226,000 |
Common stock issued for cash | 4,674,498 | 1,361,000 |
Cancellation of shares | (15,000) | |
Net cash provided by (used in) financing activities | 5,364,193 | 5,226,207 |
Effect of exchange rates on cash and cash equivalents | 38,005 | 113,976 |
Net change in cash | 265,731 | 886,184 |
Cash at beginning of period | 850,717 | 102,919 |
Cash at end of period | 1,116,448 | 989,103 |
Major non-cash transactions: | ||
Conversion of loan payables to shares | 1,941,000 | |
Supplemental disclosures of cash flow information: | ||
Interest paid | ||
Taxes paid |
Nature of Business and basis of
Nature of Business and basis of Presentation | 9 Months Ended |
Nov. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and basis of Presentation | Note 1 – Nature of Business and basis of Presentation FingerMotion, Inc. fka Property Management Corporation of America (the Company) was incorporated on January 23, 2014 under the laws of the State of Delaware. The Company then offered management and consulting services to residential and commercial real estate property owners who rent or lease their property to third party tenants. The Company changed its name to FingerMotion, Inc. on July 13, 2017 after a change in control. In July 2017 the Company acquired all of the outstanding shares of Finger Motion Company Limited (FMCL), a Hong Kong corporation that is an information technology company which specialize in operating and publishing mobile games. Pursuant to the Share Exchange Agreement with FMCL, effective July 13, 2017 (the Share Exchange Agreement, the Company agreed to exchange the outstanding equity stock of FMCL held by the FMCL Shareholders for shares of common stock of the Company. At the Closing Date, the Company issued 12,000,000 shares of common stock to the FMCL shareholders. In addition, the Company issued 600,000 shares to other consultants in connection with the transactions contemplated by the Share Exchange Agreement. The transaction was accounted for as a reverse acquisition since, immediately following completion of the transaction, the shareholders of FMCL effectuated control of the post-combination Company. For accounting purposes, FMCL was deemed to be the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of FMCL (i.e., a capital transaction involving the issuance of shares by the Company for the shares of FMCL). Accordingly, the consolidated assets, liabilities and results of operations of FMCL became the historical financial statements of FingerMotion, Inc. and its subsidiaries, and the Companys assets, liabilities and results of operations were consolidated with FMCL beginning on the acquisition date. No step-up in basis or intangible assets or goodwill were recorded in this transaction. As a result of the Share Exchange Agreement and the other transactions contemplated thereunder, FMCL became a wholly owned subsidiary of the Company. FMCL, a Hong Kong corporation, was formed in April 6, 2016. On October 16, 2018, the Company through its indirect wholly-owned subsidiary, Shanghai JiuGe Business Management Co., Ltd. (JiuGe Management), entered into a series of agreements known as variable interest agreements (the VIE Agreements) pursuant to which Shanghai JiuGe Information Technology Co., Ltd. (JiuGe Technology) became JiuGe Managements contractually controlled affiliate. The use of VIE agreements is a common structure used to acquire PRC corporations, particularly in certain industries in which foreign investment is restricted or forbidden by the PRC government. The VIE Agreements include a Consulting Services Agreement, a Loan Agreement, a Power of Attorney Agreement, a Call Option Agreement, and a Share Pledge Agreement in order to secure the connection and commitments of the JiuGe Technology. On March 7, 2019, JiuGe Technology also acquired 99% of equity interest of Beijing XunLian (BX), a subsidiary that provides bulk distribution of SMS messages for JiuGe customers at discounted rates. Finger Motion Financial Company Limited was incorporated on January 24, 2020 and is 100% owned by FingerMotion, Inc. The company has been activated for the insurtech business during the last quarter of the fiscal year where the Big Data division secured its first contract and recorded revenue. Shanghai TengLian JiuJiu Information Communication Technology Co., Ltd. was incorporated on December 23, 2020 for the purpose of venturing into the mobile phone sales in China. It is 99% owned by JiuGe Technology. On February 5, 2021, JiuGe Technology has disposed of its 99% owned subsidiary, Suzhou BuGuNiao Digital Technology Co., Ltd which was established to venture into R&D projects. |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 9 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Principal Accounting Policies | Note 2 – Summary of Principal Accounting Policies Principles of Consolidation and Presentation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The consolidated financial statements include the financial statements of the Company, and its wholly-owned subsidiaries. All intercompany accounts, transactions, and profits have been eliminated upon consolidation. Variable interest entity Pursuant to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section 810, Consolidation (ASC 810), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (VIEs). ASC 810 requires a VIE to be consolidated if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIEs residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIEs economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entitys determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. JiuGe Technologys actual stockholders do not hold any kick-out rights that affect the consolidation determination. Through the VIE agreements disclosed in Note 1, the Company is deemed the primary beneficiary of JiuGe Technology. Accordingly, the results of JiuGe Technology have been included in the accompanying consolidated financial statements. JiuGe Technology has no assets that are collateral for or restricted solely to settle their obligations. The creditors of JiuGe Technology do not have recourse to the Companys general credit. The following assets and liabilities of the VIE and VIEs subsidiaries are included in the accompanying condensed consolidated financial statements of the Company as of November 30, 2021 and February 28, 2021: Schedule of Variable Interest Entities Assets and liabilities of the VIE November 30, 2021 February 28, 2021 (unaudited) Current assets $ 5,181,655 $ 2,251,100 Non-current assets 30,118 45,503 Total assets $ 5,211,773 $ 2,296,603 Current liabilities $ 8,647,515 $ 4,906,955 Non-current liabilities — — Total liabilities $ 8,647,515 $ 4,906,955 Assets and liabilities of the VIEs Subsidiaries November 30, 2021 February 28, 2021 (unaudited) Current assets $ 3,941,377 $ 4,177,156 Non-current assets 9,314 — Total assets $ 3,950,691 $ 4,177,156 Current liabilities $ 2,774,236 $ 3,318,450 Non-current liabilities — — Total liabilities $ 2,774,236 $ 3,318,450 Operating Result of VIE For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 2,412,523 $ 1,583,461 Cost of revenue (727,879 ) (928,451 ) Gross profit (loss) $ 1,684,644 $ 655,010 Amortization and depreciation (5,961 ) (5,216 ) General and administrative expenses (2,024,130 ) (1,393,511 ) Research & Development (438,033 ) (100,083 ) Total operating expenses $ (2,468,124 ) $ (1,498,810 ) Profit (loss) from operations $ (783,480 ) $ (843,800 ) Interest income 2,569 1,344 Other income 13,996 14,263 Total other income (expense) $ 16,565 $ 15,607 Tax expense — — Net profit (loss) $ (766,915 ) $ (828,193 ) Operating Result of VIEs Subsidiaries For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 14,741,361 $ 9,662,128 Cost of revenue (14,003,795 ) (9,143,765 ) Gross profit (loss) $ 737,566 $ 518,363 Amortization and depreciation (719 ) (491 ) General and administrative expenses (503,737 ) (244,731 ) Research & Development — (44,984 ) Total operating expenses $ (504,456 ) $ (290,206 ) Profit (loss) from operations $ 233,110 $ 228,157 Interest income 41 38 Other income 64,690 56,370 Total other income (expense) $ 64,731 $ 56,408 Tax expense — (579 ) Net profit (loss) $ 297,841 $ 283,986 Use of Estimates The preparation of the Companys financial statements in conformity with generally accepted accounting principles of the United States of America 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 of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Actual results could differ from those estimates. Certain Risks and Uncertainties The Company relies on cloud-based hosting through a global accredited hosting provider. Management believes that alternate sources are available; however, disruption or termination of this relationship could adversely affect our operating results in the near-term. Identifiable Intangible Assets Identifiable intangible assets are recorded at cost and are amortized over 3 10 Impairment of Long-Lived Assets The Company classifies its long-lived assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – lived intangible assets. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary. The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Companys business strategy and its forecasts for specific market expansion. Accounts Receivable and Concentration of Risk Accounts receivable, net is stated at the amount the Company expects to collect, or the net realizable value. The Company provides a provision for allowances that includes returns, allowances and doubtful accounts equal to the estimated uncollectible amounts. The Company estimates its provision for allowances based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Companys estimate of the provision for allowances will change. Lease Operating and finance lease right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. When the rate implicit to the lease cannot be readily determined, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is derived from information available at the lease commencement date and represents the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The right-of-use asset includes any lease payments made and lease incentives received prior to the commencement date. Operating lease right-of-use assets also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The right-of-use assets and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided using the straight-line method for financial reporting purposes at rates based on the estimated useful lives of the assets. Estimated useful lives range from three seven Earnings Per Share Basic (loss) earnings per share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per share. FASB Accounting Standard Codification Topic 260 (ASC 260), Earnings Per Share, requires that employee equity share options, non-vested shares and similar equity instruments granted to employees be treated as potential common shares in computing diluted earnings per share. Diluted earnings per share should be based on the actual number of options or shares granted and not yet forfeited, unless doing so would be anti-dilutive. The Company uses the treasury stock method for equity instruments granted in share-based payment transactions provided in ASC 260 to determine diluted earnings per share. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted earnings or loss per share as their impact was antidilutive. Revenue Recognition The Company adopted ASC 606, Revenue from Contracts with Customers (ASC 606) beginning on January 1, 2018 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 entitys 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 has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to the Companys consolidated financial statements upon adoption of ASC 606. The Company recognizes revenue from providing hosting and integration services and licensing the use of its technology platform to its customers. The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer (for licensing, revenue is recognized when the Companys technology is used to provide hosting and integration services); (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of fees is probable. We account for our multi-element arrangements, such as instances where we design a custom website and separately offer other services such as hosting, which are recognized over the period for when services are performed. Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with Accounting Standards Codification (ASC) 740, Income Taxes (ASC 740). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years 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 results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. Non-controlling interest Non-controlling interests held 1% of the shares of two of our subsidiaries are recorded as a component of our equity, separate from the Companys equity. Purchase or sales of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. Recently Issued Accounting Pronouncements The Company does not believe recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Going Concern
Going Concern | 9 Months Ended |
Nov. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 3 – Going Concern The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company had an accumulated deficit of $ 15,613,001 12,208,728 3,401,295 2,244,413 The Companys continuation as a going concern is dependent on its ability to obtain additional financing to fund operations, implement its business model, and ultimately, attain profitable operations. The Company will need to secure additional funds through various means, including equity and debt financing or any similar financing. There can be no assurance that the Company will be able to obtain additional equity or debt financing, if and when needed, on terms acceptable to the Company, or at all. Any additional equity or debt financing may involve substantial dilution to the Companys stockholders, restrictive covenants or high interest costs. The Companys long-term liquidity also depends upon its ability to generate revenues and achieve profitability. |
Revenue
Revenue | 9 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 4 – Revenue We recorded $17,285,302 and $11,245,589 in revenue, respectively, for the nine months ended November 30, 2021 and 2020. Schedule of Revenue For the nine months ended November 30, 2021 November 30, 2020 (unaudited) (unaudited) Telecommunication Products & Services $ 6,730,108 $ 1,583,461 SMS & MMS Business 10,423,776 9,662,128 Big Data 131,418 — Revenues $ 17,285,302 $ 11,245,589 |
Equipment
Equipment | 9 Months Ended |
Nov. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Equipment | Note 5 – Equipment At November 30, 2021 and February 28, 2021, the company has the following amounts related to tangible assets November 30, 2021 February 28, 2021 (unaudited) Equipment $ 61,729 $ 47,953 Less: accumulated depreciation (32,288 ) (21,500 ) Net equipment $ 29,441 $ 26,453 No significant residual value is estimated for the equipment. Depreciation expense for the nine months ended November 30, 2021 and 2020 totaled $ 10,618 7,524 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Nov. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6 – Intangible Assets At November 30, 2021 and February 28, 2021, the company has the following amounts related to intangible assets November 30, 2021 February 28, 2021 (unaudited) Licenses $ 200,000 $ 200,000 Mobile applications 231,166 221,489 Gross Intangible Assets 431,166 421,489 Less: accumulated amortization (253,963 ) (219,234 ) Impairment of intangible assets (41,045 ) (41,045 ) Net intangible assets $ 136,158 $ 161,210 No significant residual value is estimated for these intangible assets. Amortization expense for the nine months ended November 30, 2021 and 2020 totaled $32,926 and $45,827, respectively. |
Prepayment and Deposit
Prepayment and Deposit | 9 Months Ended |
Nov. 30, 2021 | |
Prepayment And Deposit | |
Prepayment and Deposit | Note 7 – Prepayment and Deposit Prepaid expenses consist of the deposit pledge to the vendor for stocks credits for resale. Our current vendors are China Unicom and China Mobile for our Telecommunication Products & Services business and our SMS & MMS business. Deposits also includes payments placed into the e-commerce platforms where we offer our products and services. The platforms are PinDuoDuo, Tmall and JD.com. Schedule of Prepayment and Deposit November 30, 2021 February 28, 2021 (unaudited) Telecommunication Products & Services Deposit Paid / Prepayment $ 2,555,334 $ 333,646 Deposit received — — Net Prepaid expenses for Telecommunication Products & Services $ 2,555,334 $ 333,646 Others prepayment 123,460 143,288 Prepayment and deposit $ 2,678,794 $ 476,934 November 30, 2021 February 28, 2021 (unaudited) SMS & MMS Business Deposit Paid / Prepayment $ 466,881 $ 169,443 Deposit received — Net Prepaid expenses for SMS $ 466,881 $ 169,443 Others prepayment — — Prepayment and deposit $ 466,881 $ 169,443 |
Right-of-use Asset and Lease Li
Right-of-use Asset and Lease Liability | 9 Months Ended |
Nov. 30, 2021 | |
Right-of-use Asset And Lease Liability | |
Right-of-use Asset and Lease Liability | Note 8 – Right-of-use Asset and Lease Liability The Company has entered into lease agreements with various third parties. The terms of operating leases are one to two years. These operating leases are included in Right-of-use Asset on the Companys Consolidated Balance Sheet and represent the Companys right to use the underlying asset for the lease term. The Companys obligation to make lease payments are included in Lease liability on the Companys Consolidated Balance Sheet. Additionally, the Company has entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on the Companys balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term in the nine months ended November 30, 2021. I nformation related to the Companys right-of-use assets and related lease liabilities November 30, 2021 February 28, 2021 (unaudited) Right-of-use asset Right-of-use asset, net $ 12,526 $ 49,314 Lease liability Current lease liability $ 12,526 $ 47,569 Non-current lease liability — 4,936 Total lease liability $ 12,526 $ 52,505 February 28, 2021 (unaudited) Remaining lease term and discount rate Weighted-average remaining lease term 1.4 years Weighted-average discount rate 2.48 % Commitments The following table summarizes the future minimum lease payments due under the Companys operating leases 2021 $ 12,604 Thereafter — Less: imputed interest (78 ) Total lease liability $ 12,526 |
Loan Payable
Loan Payable | 9 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Loan Payable | Note 9 – Loan Payable The following table summarizes loan principal due by the Company Lender Term November 30, 2021 February 28, 2021 Liew Yow Ming From April 8, 2020 April 7, 2022 $ — $ 758,063 Liew Yow Ming From April 16, 2020 April 15, 2022 — 351,244 Liew Yow Ming From July 29, 2020 July 28, 2021 — 544,900 Liew Yow Ming From August 1, 2021 January 31, 2022 — — Due to Related Parties $ — $ 1,654,207 Due to Related Parties, Current Current portion $ — $ 544,900 Due to Related Parties, Non-Current Non-current portion $ — $ 1,109,307 Liew Yow Ming is a non-controlling stockholder of the Company. Loans from Mr. Liew Yow Ming were fixed at rate of 20% per annum. Interest expenses incurred on loans payable for nine months ended November 30, 2021 and 2020 was $ 172,813 153,577 On July 28, 2021, the Company has received a conversion notice from Liew Yow Ming for the conversion of the note to convert all US$ 545,000 218,000 On July 29, 2021, the Company has received a conversion notice from Liew Yow Ming for the conversion of the note to convert all US$ 350,000 700,000 On August 27, 2021, the Company has received a conversion notice from Liew Yow Ming for the conversion of the note to convert all US$ 750,000 1,500,000 On August 27, 2021, the Company has received a conversion notice from Liew Yow Ming for the conversion of the note to convert all US$ 296,000 59,200 |
Common Stock
Common Stock | 9 Months Ended |
Nov. 30, 2021 | |
Equity [Abstract] | |
Common Stock | Note 10 – Common Stock The Company issued 798,200 shares of common stock for the year ended February 29, 2020 for consideration of $1,699,799, including 200,000 shares of common stock to consultants. The Company issued 242,000 shares of common stock at a deemed price of $1.00 per share during the fiscal year ended February 29, 2020 pursuant to the conversion of promissory notes in the aggregate amount of $220,000 plus interest of $22,000. The Company issued an aggregate of 44,000 shares of common stock at a deemed price of $2.50 per share during the fiscal year ended February 29, 2020 pursuant to the conversion of promissory notes in the aggregate amount of $100,000 plus interest of $4,000. The Company issued approximately 8,045,000 shares of common stock to consultants for the three months ended May 31, 2020 for consideration of $283,575. 7,645,000 of 8,045,000 shares of common stock at a deemed price of $0.20 per share to 24 individuals and two entities pursuant to consulting agreements, management agreements and to employees. 150,000 shares of common stock at a deemed price of $0.40 per share to three individuals pursuant to a financial advisory services agreement and 250,000 shares of common stock at a deemed price of $0.25 per share to one entity pursuant to a management consulting agreement. On July 22, 2020, the Company cancelled 150,000 shares of our common stock which issued to three individuals pursuant to a financial advisory services agreement. On September 14, 2020, the Company issued 40,000 shares of our common stock to a consultant for consideration of $34,000 pursuant to settlement and release agreement. 34,103 shares of our common stock were issued to a consultant for consideration of $33,251 pursuant to marketing services agreement on September 25, 2020. On October 2, 2020, the Company issued 700,000 shares of our common stock for consideration of $350,000 to four individuals and one entity pursuant to consulting agreements and management agreements. On October 19, 2020, the Company issued (i) 830,000 shares of our common stock at a price of $0.50 per share to five individuals, (ii) 100,000 shares of our common stock at a price of $1.00 per share to one individual, (iii) 438,500 shares of our common stock at a price of $1.00 per share to twelve individuals and three entities, whereby each unit is comprised of one share of our common stock and one common stock purchase warrant with each warrant entitling the holder to purchase one additional share of common stock at an exercise price of $2.00 per share and having an expiry date of two years from the date of issuance, (iv) 265,000 shares of our common stock at a price of $1.50 per share to four individuals and (v) 50,000 shares of our common stock at a price of $1.50 per share to one individual, whereby each unit is comprised of one share of our common stock and one common stock purchase warrant with each warrant entitling the holder to purchase one additional share of common stock at an exercise price of $3.00 per share and having an expiry date of two years from the date of issuance. On January 13, 2021, the Company issued (i) 1,604,334 shares of our common stock at price of $1.50 per share to 28 individuals and 4 entities, whereby each unit is comprised of one share of our common stock and one common stock purchase warrant with each warrant entitling the holder to purchase one additional share of common stock at an exercise price of $3.00 per share and having an expiry date of two years from the date of issuance, (ii) 534,500 shares of our common stock at a price of $2.00 per share to 15 individuals, (iii) 500,000 shares of our common stock at price of $2.00 to one individual pursuant to the conversion of promissory note, (iv) 34,103 shares of our common stock at a deemed price of $3.90 per share to one entity pursuant to a marketing services agreement, and (v) 5,000 shares of our common stock at price of $2.00 per share to one individual pursuant to a consulting agreement. On January 21, 2021, the Company issued 25,000 shares of our common stock at $2.00 per share to one individual pursuant to the exercise of warrants. On March 29, 2021, the Company issued 10,000 shares of our common stock at $2.00 per share to one individual pursuant to the exercise of warrants. On April 14, 2021, the Company issued 5,000 shares of our common stock at price of $2.00 per share to one individual pursuant to a consulting agreement. On May 7, 2021, the Company issued (i) 70,000 shares of our common stock at $2.00 per share to 2 individuals and one entity pursuant to the exercise of warrants, and (ii) 6,666 shares of our common stock at $3.00 to one entity pursuant to the exercise of warrants. On June 1, 2021, the Company issued 25,000 shares of our common stock at a deemed price of $5.00 per shares to one individual pursuant to a consulting agreement. On July 13, 2021, the Company issued (i) 568,900 shares of our common stock at price of $5.00 per share to 17 individuals and 2 entities (ii) 45,000 shares of our common stock at $2.00 per share to 2 individuals pursuant to the exercise of warrants, (iii) 60,000 shares of our common stock at $3.00 per share to one individual pursuant to the exercise of warrants, (iv) 5,000 shares of our common stock at deemed price of $2.00 per share to one individual pursuant to a consulting agreement, and (v) 25,000 shares of our common stock at a deemed price of $5.00 per share to one individual pursuant to a consulting agreement. On August 16, 2021, the Company issued 218,000 shares of common stock at $2.50 per share and 700,000 shares of common stock at $0.50 per share to one individual pursuant to the conversion of promissory notes. On August 27, 2021, the Company issued 1,500,000 shares of common stock at $0.50 per share and 59,200 shares of common stock at $5.00 per share to one individual pursuant to the conversion of promissory notes. On October 28, 2021, the Company issued 5,000 shares of our common stock at price of $2.00 per share to one individual pursuant to a consulting agreement. On November 5, 2021, the Company issued 276,000 shares of our common stock at price of $5.00 per share to 4 individuals. During the quarter ended November 30, 2021, the Company received $90,000 from exercise of warrants for the purchase of 30,000 shares of common stock of the Company at a price of $3.00 per shares from 2 individuals, which securities have not been issued as of November 30, 2021. In addition, during the quarter ended November 30, 2021, the Company received $300,000 from subscriptions for the purchase of 60,000 shares of common stock of the Company at a price of $5.00 per share from 3 individuals, which securities have not been issued as of November 30, 2021. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Nov. 30, 2021 | |
NET LOSS PER SHARE | |
Earnings Per Share | Note 11 – Earnings Per Share The following table sets forth the computation of basic and diluted earnings per common share For the nine months ended November 30, 2021 November 30, 2020 Numerator - basic and diluted Net Loss $ (3,401,295 ) $ (2,244,413 ) Denominator Weighted average number of common shares outstanding — basic 40,280,409 32,424,218 Weighted average number of common shares outstanding — diluted 40,280,409 32,424,218 Loss per common share — basic $ (0.08 ) $ (0.07 ) Loss per common share — diluted $ (0.08 ) $ (0.07 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 – Income Taxes The Company and its subsidiaries file separate income tax returns. The United States of America FingerMotion, Inc. is incorporated in the State of Delaware in the U.S. and is subject to a U.S. federal corporate income tax of 21% Hong Kong Finger Motion Company Limited is incorporated in Hong Kong and Hong Kongs profits tax rate is 16.5% The Peoples Republic of China (PRC) JiuGe Management, JiuGe Technology, Beijing XunLian and Shanghai TengLian JiuJiu were incorporated in the Peoples Republic of China and subject to PRC income tax at 25% Income tax mainly consists of foreign income tax at statutory rates and the effects of permanent and temporary differences. The Companys effective income tax rates for the nine months ended November 30, 2021 and 2020 are as follows: For the nine months ended November 30, 2021 November 30, 2020 (unaudited) (unaudited) U.S. statutory tax rate 21.0% 21.0% Foreign income not registered in the U.S. -21.0% -21.0% PRC profit tax rate 25.0% 25.0% Changes in valuation allowance and others -25.0% -25.0% Effective tax rate 0.0% 0.0% At November 30, 2021 and February 28, 2021, the Company has a deferred tax asset of $851,068 and $1,095,494, resulting from certain net operating losses in U.S., respectively. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those net operating losses are available. The Company considers projected future taxable income and tax planning strategies in making its assessment. At present, the Company concludes that it is more-likely-than-not that the Company will be able to realize all of its tax benefits in the near future and therefore a valuation allowance has been provided for the full value of the deferred tax asset. A valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of any portion or all of the valuation allowance. At November 30, 2021 and February 28, 2021, the valuation allowance was $851,068 and $1,095,494, respectively. Schedule of Deferred Tax Assets and Liabilities November 30, 2021 February 28, 2021 (unaudited) Deferred tax asset from operating losses carry-forwards $ 851,068 $ 1,095,494 Valuation allowance (851,068 ) (1,095,494 ) Deferred tax asset, net $ — $ — |
Disposal of a subsidiary
Disposal of a subsidiary | 9 Months Ended |
Nov. 30, 2021 | |
Disposal Of Subsidiary | |
Disposal of a subsidiary | Note 13 – Disposal of a subsidiary Disposal of Suzhou BuGuNiao On January 28, 2021, JiuGe Technology disposed its 99% owned subsidiary, Suzhou BuGuNiao Digital Technology Co., Ltd which was set up to venture into R&D projects. The following table summarizes the gain on disposal for Suzhou BuGuNiao at the disposal date Consideration $ — Net Asset 8,382 NCI (84 ) Gain on Disposal $ 8,298 |
Related Parties Transaction
Related Parties Transaction | 9 Months Ended |
Nov. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties Transaction | Note 14 – Related Parties Transaction a) Related parties: Name of related parties Relationship with the Company Mr Liew Yow Ming Non-controlling Stockholder b) The Company had the following related party balances at November 30, 2021 and February 28, 2021: The amount due to related party November 30, 2021 February 28, 2021 Loan payables Mr. Liew Yow Ming $ — $ 1,654,207 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies Legal proceedings The Company is not aware of any material outstanding claim and litigation against them. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Nov. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 – Subsequent Events Except for the above and the following, the Company has determined that it does not have any other material subsequent events to disclose in these unaudited condensed consolidated interim financial statements. On December 28, 2021, the Companys board of directors approved and granted in aggregate 4,545,500 stock options, of which 1,169,500 stock options were granted to certain directors and officers of the Company, having an exercise price of $8.00 per share and an expiry date of five years from the date of grant. The stock options have vesting provisions of 20% on the date of grant and 20% on each of the first, second, third and fourth anniversary of the date of grant. On December 28, 2021, the Company shares of common stock were listed for trading on the Nasdaq Capital Market under the current trading symbol of FNGR. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 9 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The consolidated financial statements include the financial statements of the Company, and its wholly-owned subsidiaries. All intercompany accounts, transactions, and profits have been eliminated upon consolidation. |
Variable interest entity | Variable interest entity Pursuant to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section 810, Consolidation (ASC 810), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (VIEs). ASC 810 requires a VIE to be consolidated if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIEs residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIEs economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entitys determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. JiuGe Technologys actual stockholders do not hold any kick-out rights that affect the consolidation determination. Through the VIE agreements disclosed in Note 1, the Company is deemed the primary beneficiary of JiuGe Technology. Accordingly, the results of JiuGe Technology have been included in the accompanying consolidated financial statements. JiuGe Technology has no assets that are collateral for or restricted solely to settle their obligations. The creditors of JiuGe Technology do not have recourse to the Companys general credit. The following assets and liabilities of the VIE and VIEs subsidiaries are included in the accompanying condensed consolidated financial statements of the Company as of November 30, 2021 and February 28, 2021: Schedule of Variable Interest Entities Assets and liabilities of the VIE November 30, 2021 February 28, 2021 (unaudited) Current assets $ 5,181,655 $ 2,251,100 Non-current assets 30,118 45,503 Total assets $ 5,211,773 $ 2,296,603 Current liabilities $ 8,647,515 $ 4,906,955 Non-current liabilities — — Total liabilities $ 8,647,515 $ 4,906,955 Assets and liabilities of the VIEs Subsidiaries November 30, 2021 February 28, 2021 (unaudited) Current assets $ 3,941,377 $ 4,177,156 Non-current assets 9,314 — Total assets $ 3,950,691 $ 4,177,156 Current liabilities $ 2,774,236 $ 3,318,450 Non-current liabilities — — Total liabilities $ 2,774,236 $ 3,318,450 Operating Result of VIE For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 2,412,523 $ 1,583,461 Cost of revenue (727,879 ) (928,451 ) Gross profit (loss) $ 1,684,644 $ 655,010 Amortization and depreciation (5,961 ) (5,216 ) General and administrative expenses (2,024,130 ) (1,393,511 ) Research & Development (438,033 ) (100,083 ) Total operating expenses $ (2,468,124 ) $ (1,498,810 ) Profit (loss) from operations $ (783,480 ) $ (843,800 ) Interest income 2,569 1,344 Other income 13,996 14,263 Total other income (expense) $ 16,565 $ 15,607 Tax expense — — Net profit (loss) $ (766,915 ) $ (828,193 ) Operating Result of VIEs Subsidiaries For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 14,741,361 $ 9,662,128 Cost of revenue (14,003,795 ) (9,143,765 ) Gross profit (loss) $ 737,566 $ 518,363 Amortization and depreciation (719 ) (491 ) General and administrative expenses (503,737 ) (244,731 ) Research & Development — (44,984 ) Total operating expenses $ (504,456 ) $ (290,206 ) Profit (loss) from operations $ 233,110 $ 228,157 Interest income 41 38 Other income 64,690 56,370 Total other income (expense) $ 64,731 $ 56,408 Tax expense — (579 ) Net profit (loss) $ 297,841 $ 283,986 |
Use of Estimates | Use of Estimates The preparation of the Companys financial statements in conformity with generally accepted accounting principles of the United States of America 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 of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Actual results could differ from those estimates. |
Certain Risks and Uncertainties | Certain Risks and Uncertainties The Company relies on cloud-based hosting through a global accredited hosting provider. Management believes that alternate sources are available; however, disruption or termination of this relationship could adversely affect our operating results in the near-term. |
Identifiable Intangible Assets | Identifiable Intangible Assets Identifiable intangible assets are recorded at cost and are amortized over 3 10 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company classifies its long-lived assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – lived intangible assets. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary. The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Companys business strategy and its forecasts for specific market expansion. |
Accounts Receivable and Concentration of Risk | Accounts Receivable and Concentration of Risk Accounts receivable, net is stated at the amount the Company expects to collect, or the net realizable value. The Company provides a provision for allowances that includes returns, allowances and doubtful accounts equal to the estimated uncollectible amounts. The Company estimates its provision for allowances based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Companys estimate of the provision for allowances will change. |
Lease | Lease Operating and finance lease right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. When the rate implicit to the lease cannot be readily determined, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is derived from information available at the lease commencement date and represents the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The right-of-use asset includes any lease payments made and lease incentives received prior to the commencement date. Operating lease right-of-use assets also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The right-of-use assets and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided using the straight-line method for financial reporting purposes at rates based on the estimated useful lives of the assets. Estimated useful lives range from three seven |
Earnings Per Share | Earnings Per Share Basic (loss) earnings per share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per share. FASB Accounting Standard Codification Topic 260 (ASC 260), Earnings Per Share, requires that employee equity share options, non-vested shares and similar equity instruments granted to employees be treated as potential common shares in computing diluted earnings per share. Diluted earnings per share should be based on the actual number of options or shares granted and not yet forfeited, unless doing so would be anti-dilutive. The Company uses the treasury stock method for equity instruments granted in share-based payment transactions provided in ASC 260 to determine diluted earnings per share. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted earnings or loss per share as their impact was antidilutive. |
Revenue Recognition | Revenue Recognition The Company adopted ASC 606, Revenue from Contracts with Customers (ASC 606) beginning on January 1, 2018 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 entitys 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 has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to the Companys consolidated financial statements upon adoption of ASC 606. The Company recognizes revenue from providing hosting and integration services and licensing the use of its technology platform to its customers. The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer (for licensing, revenue is recognized when the Companys technology is used to provide hosting and integration services); (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of fees is probable. We account for our multi-element arrangements, such as instances where we design a custom website and separately offer other services such as hosting, which are recognized over the period for when services are performed. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with Accounting Standards Codification (ASC) 740, Income Taxes (ASC 740). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years 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 results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Non-controlling interest | Non-controlling interest Non-controlling interests held 1% of the shares of two of our subsidiaries are recorded as a component of our equity, separate from the Companys equity. Purchase or sales of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company does not believe recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | The following assets and liabilities of the VIE and VIEs subsidiaries are included in the accompanying condensed consolidated financial statements of the Company as of November 30, 2021 and February 28, 2021: Schedule of Variable Interest Entities Assets and liabilities of the VIE November 30, 2021 February 28, 2021 (unaudited) Current assets $ 5,181,655 $ 2,251,100 Non-current assets 30,118 45,503 Total assets $ 5,211,773 $ 2,296,603 Current liabilities $ 8,647,515 $ 4,906,955 Non-current liabilities — — Total liabilities $ 8,647,515 $ 4,906,955 Assets and liabilities of the VIEs Subsidiaries November 30, 2021 February 28, 2021 (unaudited) Current assets $ 3,941,377 $ 4,177,156 Non-current assets 9,314 — Total assets $ 3,950,691 $ 4,177,156 Current liabilities $ 2,774,236 $ 3,318,450 Non-current liabilities — — Total liabilities $ 2,774,236 $ 3,318,450 Operating Result of VIE For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 2,412,523 $ 1,583,461 Cost of revenue (727,879 ) (928,451 ) Gross profit (loss) $ 1,684,644 $ 655,010 Amortization and depreciation (5,961 ) (5,216 ) General and administrative expenses (2,024,130 ) (1,393,511 ) Research & Development (438,033 ) (100,083 ) Total operating expenses $ (2,468,124 ) $ (1,498,810 ) Profit (loss) from operations $ (783,480 ) $ (843,800 ) Interest income 2,569 1,344 Other income 13,996 14,263 Total other income (expense) $ 16,565 $ 15,607 Tax expense — — Net profit (loss) $ (766,915 ) $ (828,193 ) Operating Result of VIEs Subsidiaries For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 14,741,361 $ 9,662,128 Cost of revenue (14,003,795 ) (9,143,765 ) Gross profit (loss) $ 737,566 $ 518,363 Amortization and depreciation (719 ) (491 ) General and administrative expenses (503,737 ) (244,731 ) Research & Development — (44,984 ) Total operating expenses $ (504,456 ) $ (290,206 ) Profit (loss) from operations $ 233,110 $ 228,157 Interest income 41 38 Other income 64,690 56,370 Total other income (expense) $ 64,731 $ 56,408 Tax expense — (579 ) Net profit (loss) $ 297,841 $ 283,986 |
[custom:DisclosureSummaryOfPrincipalAccountingPoliciesAbstract] | November 30, 2021 February 28, 2021 (unaudited) Current assets $ 5,181,655 $ 2,251,100 Non-current assets 30,118 45,503 Total assets $ 5,211,773 $ 2,296,603 Current liabilities $ 8,647,515 $ 4,906,955 Non-current liabilities — — Total liabilities $ 8,647,515 $ 4,906,955 Assets and liabilities of the VIEs Subsidiaries November 30, 2021 February 28, 2021 (unaudited) Current assets $ 3,941,377 $ 4,177,156 Non-current assets 9,314 — Total assets $ 3,950,691 $ 4,177,156 Current liabilities $ 2,774,236 $ 3,318,450 Non-current liabilities — — Total liabilities $ 2,774,236 $ 3,318,450 Operating Result of VIE For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 2,412,523 $ 1,583,461 Cost of revenue (727,879 ) (928,451 ) Gross profit (loss) $ 1,684,644 $ 655,010 Amortization and depreciation (5,961 ) (5,216 ) General and administrative expenses (2,024,130 ) (1,393,511 ) Research & Development (438,033 ) (100,083 ) Total operating expenses $ (2,468,124 ) $ (1,498,810 ) Profit (loss) from operations $ (783,480 ) $ (843,800 ) Interest income 2,569 1,344 Other income 13,996 14,263 Total other income (expense) $ 16,565 $ 15,607 Tax expense — — Net profit (loss) $ (766,915 ) $ (828,193 ) Operating Result of VIEs Subsidiaries For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 14,741,361 $ 9,662,128 Cost of revenue (14,003,795 ) (9,143,765 ) Gross profit (loss) $ 737,566 $ 518,363 Amortization and depreciation (719 ) (491 ) General and administrative expenses (503,737 ) (244,731 ) Research & Development — (44,984 ) Total operating expenses $ (504,456 ) $ (290,206 ) Profit (loss) from operations $ 233,110 $ 228,157 Interest income 41 38 Other income 64,690 56,370 Total other income (expense) $ 64,731 $ 56,408 Tax expense — (579 ) Net profit (loss) $ 297,841 $ 283,986 |
[custom:DisclosureSummaryOfPrincipalAccountingPolicies2Abstract] | For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 2,412,523 $ 1,583,461 Cost of revenue (727,879 ) (928,451 ) Gross profit (loss) $ 1,684,644 $ 655,010 Amortization and depreciation (5,961 ) (5,216 ) General and administrative expenses (2,024,130 ) (1,393,511 ) Research & Development (438,033 ) (100,083 ) Total operating expenses $ (2,468,124 ) $ (1,498,810 ) Profit (loss) from operations $ (783,480 ) $ (843,800 ) Interest income 2,569 1,344 Other income 13,996 14,263 Total other income (expense) $ 16,565 $ 15,607 Tax expense — — Net profit (loss) $ (766,915 ) $ (828,193 ) Operating Result of VIEs Subsidiaries For the nine months ended For the nine months ended (unaudited) (unaudited) Revenue $ 14,741,361 $ 9,662,128 Cost of revenue (14,003,795 ) (9,143,765 ) Gross profit (loss) $ 737,566 $ 518,363 Amortization and depreciation (719 ) (491 ) General and administrative expenses (503,737 ) (244,731 ) Research & Development — (44,984 ) Total operating expenses $ (504,456 ) $ (290,206 ) Profit (loss) from operations $ 233,110 $ 228,157 Interest income 41 38 Other income 64,690 56,370 Total other income (expense) $ 64,731 $ 56,408 Tax expense — (579 ) Net profit (loss) $ 297,841 $ 283,986 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue | We recorded $17,285,302 and $11,245,589 in revenue, respectively, for the nine months ended November 30, 2021 and 2020. Schedule of Revenue |
Revenue | For the nine months ended November 30, 2021 November 30, 2020 (unaudited) (unaudited) Telecommunication Products & Services $ 6,730,108 $ 1,583,461 SMS & MMS Business 10,423,776 9,662,128 Big Data 131,418 — Revenues $ 17,285,302 $ 11,245,589 |
Equipment (Tables)
Equipment (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
company has the following amounts related to tangible assets | At November 30, 2021 and February 28, 2021, the company has the following amounts related to tangible assets |
Equipment | November 30, 2021 February 28, 2021 (unaudited) Equipment $ 61,729 $ 47,953 Less: accumulated depreciation (32,288 ) (21,500 ) Net equipment $ 29,441 $ 26,453 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
company has the following amounts related to intangible assets | At November 30, 2021 and February 28, 2021, the company has the following amounts related to intangible assets November 30, 2021 February 28, 2021 (unaudited) Licenses $ 200,000 $ 200,000 Mobile applications 231,166 221,489 Gross Intangible Assets 431,166 421,489 Less: accumulated amortization (253,963 ) (219,234 ) Impairment of intangible assets (41,045 ) (41,045 ) Net intangible assets $ 136,158 $ 161,210 |
Prepayment and Deposit (Tables)
Prepayment and Deposit (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Prepayment And Deposit | |
Schedule of Prepayment and Deposit | Schedule of Prepayment and Deposit |
Prepayment and Deposit | November 30, 2021 February 28, 2021 (unaudited) Telecommunication Products & Services Deposit Paid / Prepayment $ 2,555,334 $ 333,646 Deposit received — — Net Prepaid expenses for Telecommunication Products & Services $ 2,555,334 $ 333,646 Others prepayment 123,460 143,288 Prepayment and deposit $ 2,678,794 $ 476,934 November 30, 2021 February 28, 2021 (unaudited) SMS & MMS Business Deposit Paid / Prepayment $ 466,881 $ 169,443 Deposit received — Net Prepaid expenses for SMS $ 466,881 $ 169,443 Others prepayment — — Prepayment and deposit $ 466,881 $ 169,443 |
Right-of-use Asset and Lease _2
Right-of-use Asset and Lease Liability (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Right-of-use Asset And Lease Liability | |
nformation related to the Company’s right-of-use assets and related lease liabilities | I nformation related to the Companys right-of-use assets and related lease liabilities |
Right-of-use Asset and Lease Liability | November 30, 2021 February 28, 2021 (unaudited) Right-of-use asset Right-of-use asset, net $ 12,526 $ 49,314 Lease liability Current lease liability $ 12,526 $ 47,569 Non-current lease liability — 4,936 Total lease liability $ 12,526 $ 52,505 February 28, 2021 (unaudited) Remaining lease term and discount rate Weighted-average remaining lease term 1.4 years Weighted-average discount rate 2.48 % |
summarizes the future minimum lease payments due under the Company’s operating leases | The following table summarizes the future minimum lease payments due under the Companys operating leases |
Right-of-use Asset and Lease Liability (Details 2) | 2021 $ 12,604 Thereafter — Less: imputed interest (78 ) Total lease liability $ 12,526 |
Loan Payable (Tables)
Loan Payable (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
The following table summarizes loan principal due by the Company | The following table summarizes loan principal due by the Company |
Loan Payable | Lender Term November 30, 2021 February 28, 2021 Liew Yow Ming From April 8, 2020 April 7, 2022 $ — $ 758,063 Liew Yow Ming From April 16, 2020 April 15, 2022 — 351,244 Liew Yow Ming From July 29, 2020 July 28, 2021 — 544,900 Liew Yow Ming From August 1, 2021 January 31, 2022 — — Due to Related Parties $ — $ 1,654,207 Due to Related Parties, Current Current portion $ — $ 544,900 Due to Related Parties, Non-Current Non-current portion $ — $ 1,109,307 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
NET LOSS PER SHARE | |
The following table sets forth the computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share |
Earnings Per Share | For the nine months ended November 30, 2021 November 30, 2020 Numerator - basic and diluted Net Loss $ (3,401,295 ) $ (2,244,413 ) Denominator Weighted average number of common shares outstanding — basic 40,280,409 32,424,218 Weighted average number of common shares outstanding — diluted 40,280,409 32,424,218 Loss per common share — basic $ (0.08 ) $ (0.07 ) Loss per common share — diluted $ (0.08 ) $ (0.07 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
The Company’s effective income tax rates for the nine months ended November 30, 2021 and 2020 are as follows: | Income tax mainly consists of foreign income tax at statutory rates and the effects of permanent and temporary differences. The Companys effective income tax rates for the nine months ended November 30, 2021 and 2020 are as follows: |
Income Taxes | For the nine months ended November 30, 2021 November 30, 2020 (unaudited) (unaudited) U.S. statutory tax rate 21.0% 21.0% Foreign income not registered in the U.S. -21.0% -21.0% PRC profit tax rate 25.0% 25.0% Changes in valuation allowance and others -25.0% -25.0% Effective tax rate 0.0% 0.0% |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Liabilities |
Income Taxes (Details 2) | November 30, 2021 February 28, 2021 (unaudited) Deferred tax asset from operating losses carry-forwards $ 851,068 $ 1,095,494 Valuation allowance (851,068 ) (1,095,494 ) Deferred tax asset, net $ — $ — |
Disposal of a subsidiary (Table
Disposal of a subsidiary (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Disposal Of Subsidiary | |
table summarizes the gain on disposal for Suzhou BuGuNiao at the disposal date | The following table summarizes the gain on disposal for Suzhou BuGuNiao at the disposal date |
Disposal of a Subsidiary | Consideration $ — Net Asset 8,382 NCI (84 ) Gain on Disposal $ 8,298 |
Related Parties Transaction (Ta
Related Parties Transaction (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Related Party Transactions [Abstract] | |
amount due to related party | The amount due to related party |
Related Parties Transaction | November 30, 2021 February 28, 2021 Loan payables Mr. Liew Yow Ming $ — $ 1,654,207 |
Nature of Business and basis _2
Nature of Business and basis of Presentation (Details Narrative) | Jul. 13, 2017shares |
Share Distribution [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Stock Issued During Period, Shares, New Issues | 600,000 |
Finger Motion Company Limited [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Stock Issued During Period, Shares, New Issues | 12,000,000 |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies (Details) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Current assets | $ 9,770,473 | $ 7,104,527 |
Non-current assets | 178,125 | 236,977 |
Total assets | 9,948,598 | 7,341,504 |
Current liabilities | 4,280,818 | 4,112,295 |
Non-current liabilities | 1,114,243 | |
Total liabilities | 4,280,818 | 5,226,538 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets | 5,181,655 | 2,251,100 |
Non-current assets | 30,118 | 45,503 |
Total assets | 5,211,773 | 2,296,603 |
Current liabilities | 8,647,515 | 4,906,955 |
Non-current liabilities | ||
Total liabilities | 8,647,515 | 4,906,955 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Current assets | 3,941,377 | 4,177,156 |
Non-current assets | 9,314 | |
Total assets | 3,950,691 | 4,177,156 |
Current liabilities | 2,774,236 | 3,318,450 |
Non-current liabilities | ||
Total liabilities | $ 2,774,236 | $ 3,318,450 |
Summary of Principal Accounti_5
Summary of Principal Accounting Policies (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Cost of revenue | $ (4,934,824) | $ (4,261,058) | $ (15,001,674) | $ (10,072,216) |
Gross profit (loss) | 967,075 | 620,543 | 2,283,628 | 1,173,373 |
Amortization and depreciation | (14,721) | (45,734) | (43,544) | (53,351) |
General and administrative expenses | (1,521,114) | (793,550) | (4,145,775) | (2,378,566) |
Research & Development | (158,055) | (124,723) | (438,033) | (351,867) |
Total operating expenses | 2,031,080 | 1,301,974 | 5,591,170 | 3,324,717 |
Profit (loss) from operations | (1,064,005) | (681,431) | (3,307,542) | (2,151,344) |
Interest income | 955 | 1,009 | 2,672 | 1,415 |
Other income | 26,497 | 65,469 | 78,686 | 88,729 |
Tax expense | ||||
Net profit (loss) | $ (1,036,619) | $ (708,153) | (3,404,273) | (2,247,253) |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Revenue | 2,412,523 | 1,583,461 | ||
Cost of revenue | (727,879) | (928,451) | ||
Gross profit (loss) | 1,684,644 | 655,010 | ||
Amortization and depreciation | (5,961) | (5,216) | ||
General and administrative expenses | (2,024,130) | (1,393,511) | ||
Research & Development | (438,033) | (100,083) | ||
Total operating expenses | (2,468,124) | (1,498,810) | ||
Profit (loss) from operations | (783,480) | (843,800) | ||
Interest income | 2,569 | 1,344 | ||
Other income | 13,996 | 14,263 | ||
Total other income (expense) | 16,565 | 15,607 | ||
Tax expense | ||||
Net profit (loss) | (766,915) | (828,193) | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Revenue | 14,741,361 | 9,662,128 | ||
Cost of revenue | (14,003,795) | (9,143,765) | ||
Gross profit (loss) | 737,566 | 518,363 | ||
Amortization and depreciation | (719) | (491) | ||
General and administrative expenses | (503,737) | (244,731) | ||
Research & Development | (44,984) | |||
Total operating expenses | (504,456) | (290,206) | ||
Profit (loss) from operations | 233,110 | 228,157 | ||
Interest income | 41 | 38 | ||
Other income | 64,690 | 56,370 | ||
Total other income (expense) | 64,731 | 56,408 | ||
Tax expense | (579) | |||
Net profit (loss) | $ 297,841 | $ 283,986 |
Summary of Principal Accounti_6
Summary of Principal Accounting Policies (Details Narrative) | 9 Months Ended |
Nov. 30, 2021 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Property, Plant and Equipment, Useful Life | 7 years |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | Feb. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Retained Earnings (Accumulated Deficit) | $ 15,613,001 | $ 15,613,001 | $ 12,208,728 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 1,037,172 | $ 1,454,617 | $ 909,506 | $ 705,646 | $ 960,716 | $ 578,051 | $ 3,401,295 | $ 2,244,413 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5,901,899 | $ 4,881,601 | $ 17,285,302 | $ 11,245,589 |
Mobile Recharge [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,730,108 | 1,583,461 | ||
Sms [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,423,776 | 9,662,128 | ||
Big Data [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 131,418 |
Equipment (Details)
Equipment (Details) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Property, Plant and Equipment [Abstract] | ||
Equipment | $ 61,729 | $ 47,953 |
Less: accumulated depreciation | (32,288) | (21,500) |
Net equipment | $ 29,441 | $ 26,453 |
Equipment (Details Narrative)
Equipment (Details Narrative) - USD ($) | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 10,618 | $ 7,524 |
company has the following amoun
company has the following amounts related to intangible assets (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2021 | Feb. 28, 2021 | |
Gross Intangible Assets | $ 431,166 | $ 421,489 |
Less: accumulated amortization | (253,963) | (219,234) |
Amortization of Intangible Assets | (41,045) | |
Net intangible assets | 136,158 | 161,210 |
License [Member] | ||
Gross Intangible Assets | 200,000 | 200,000 |
Mobile Application [Member] | ||
Gross Intangible Assets | $ 231,166 | $ 221,489 |
Prepayment and Deposit (Details
Prepayment and Deposit (Details) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Prepayment and deposit | $ 3,145,675 | $ 646,377 |
Mobile Recharge [Member] | ||
Deposit Paid / Prepayment | 2,555,334 | 333,646 |
Deposit received | ||
Net Prepaid expenses for SMS | 2,555,334 | 333,646 |
Others prepayment | 123,460 | 143,288 |
Prepayment and deposit | 2,678,794 | 476,934 |
Sms [Member] | ||
Deposit Paid / Prepayment | 466,881 | 169,443 |
Deposit received | ||
Net Prepaid expenses for SMS | 466,881 | 169,443 |
Others prepayment | ||
Prepayment and deposit | $ 466,881 | $ 169,443 |
Right-of-use Asset and Lease _3
Right-of-use Asset and Lease Liability (Details) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Right-of-use Asset And Lease Liability | ||
Right-of-use asset, net | $ 12,526 | $ 49,314 |
Current lease liability | 12,526 | 47,569 |
Non-current lease liability | 4,936 | |
Total lease liability | $ 12,526 | $ 52,505 |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 4 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 2.48% |
Right-of-use Asset and Lease _4
Right-of-use Asset and Lease Liability (Details 2) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Right-of-use Asset And Lease Liability | ||
2021 | $ 12,604 | |
Thereafter | ||
Less: imputed interest | (78) | |
Total lease liability | $ 12,526 | $ 52,505 |
Loan Payable (Details)
Loan Payable (Details) - USD ($) | Apr. 08, 2020 | Nov. 30, 2021 | Feb. 28, 2021 |
Guarantor Obligations [Line Items] | |||
Due to Related Parties | $ 1,654,207 | ||
Due to Related Parties, Current | 544,900 | ||
Due to Related Parties, Non-Current | 1,109,307 | ||
Liew Yow Ming | |||
Guarantor Obligations [Line Items] | |||
Debt Instrument, Issuance Date | Apr. 8, 2020 | ||
Debt Instrument, Maturity Date | Apr. 7, 2022 | ||
Due to Related Parties | 758,063 | ||
Liew Yow Ming | |||
Guarantor Obligations [Line Items] | |||
Debt Instrument, Issuance Date | Apr. 16, 2020 | ||
Debt Instrument, Maturity Date | Apr. 15, 2022 | ||
Due to Related Parties | 351,244 | ||
Liew Yow Ming [Member] | |||
Guarantor Obligations [Line Items] | |||
Debt Instrument, Issuance Date | Jul. 29, 2020 | ||
Debt Instrument, Maturity Date | Jul. 28, 2021 | ||
Due to Related Parties | 544,900 | ||
Liew Yow Ming [Member] | |||
Guarantor Obligations [Line Items] | |||
Debt Instrument, Issuance Date | Aug. 1, 2021 | ||
Debt Instrument, Maturity Date | Jan. 31, 2022 | ||
Due to Related Parties |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - USD ($) | Aug. 27, 2021 | Aug. 27, 2021 | Aug. 16, 2021 | Aug. 16, 2021 | Nov. 30, 2021 | Nov. 30, 2020 |
Debt Conversion [Line Items] | ||||||
Interest Expense, Debt | $ 172,813 | $ 153,577 | ||||
Liew Yow Ming [Member] | ||||||
Debt Conversion [Line Items] | ||||||
Debt Conversion, Converted Instrument, Amount | $ 296,000 | $ 750,000 | $ 350,000 | $ 545,000 | ||
Debt Conversion, Converted Instrument, Shares Issued | 59,200 | 1,500,000 | 700,000 | 218,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
NET LOSS PER SHARE | ||||||||
Net Loss | $ (1,037,172) | $ (1,454,617) | $ (909,506) | $ (705,646) | $ (960,716) | $ (578,051) | $ (3,401,295) | $ (2,244,413) |
Weighted average number of common shares outstanding — basic | 42,281,985 | 35,032,380 | 40,280,409 | 32,424,218 | ||||
Weighted average number of common shares outstanding — diluted | 42,281,985 | 35,032,380 | 40,280,409 | 32,424,218 | ||||
Loss per common share — basic | $ (0.02) | $ (0.02) | $ (0.08) | $ (0.07) | ||||
Loss per common share — diluted | $ (0.02) | $ (0.02) | $ (0.08) | $ (0.07) |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. statutory tax rate | 21.00% | 21.00% |
Foreign income not registered in the U.S. | (21.00%) | (21.00%) |
PRC profit tax rate | 25.00% | 25.00% |
Changes in valuation allowance and others | (25.00%) | (25.00%) |
Effective tax rate | 0.00% | 0.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset from operating losses carry-forwards | $ 851,068 | $ 1,095,494 |
Valuation allowance | (851,068) | (1,095,494) |
Deferred tax asset, net |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 0.00% | 0.00% |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 21.00% | 21.00% |
Foreign Tax Authority [Member] | Inland Revenue, Hong Kong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 16.50% | 16.50% |
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 25.00% | 25.00% |
Disposal of a Subsidiary (Detai
Disposal of a Subsidiary (Details) - Subsidiary of Common Parent [Member] | Jan. 28, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Consideration | |
Net Asset | 8,382 |
NCI | (84) |
Gain on Disposal | $ 8,298 |
Related Parties Transaction (De
Related Parties Transaction (Details) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Related Party Transaction [Line Items] | ||
Mr. Liew Yow Ming | $ 1,654,207 | |
Liew Yow Ming [Member] | ||
Related Party Transaction [Line Items] | ||
Mr. Liew Yow Ming | $ 1,654,207 |