Cover
Cover - shares | 3 Months Ended | |
Nov. 30, 2019 | Jan. 13, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --08-31 | |
Entity Registrant Name | AB INTERNATIONAL GROUP CORP. | |
Entity Central Index Key | 0001605331 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Common Stock, Shares Outstanding | 4,822,016 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Nov. 30, 2019 | Aug. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 1,284,821 | $ 1,564,750 |
Prepaid expenses | 12,775 | 21,971 |
Accounts receivable | 60,900 | 35,300 |
Related party receivable | 22,115 | 34,994 |
Note receivable | 2,096,640 | 1,047,040 |
Interest receivable | 34,965 | 8,725 |
Receivable on asset disposal | 1,280,000 | |
Total Current Assets | 3,512,216 | 3,992,779 |
Fixed assets, net | 19,195 | 20,124 |
Leasehold improvement, net | 122,294 | 134,523 |
Intangible assets, net | 376,894 | 413,793 |
Long-term prepayment | 428,800 | |
Other assets | 15,027 | 15,027 |
TOTAL ASSETS | 4,474,427 | 4,576,246 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 105,083 | 116,664 |
Convertible note and derivative liability | 86,831 | |
Due to shareholder | 2,037 | 2,037 |
Tax payable | 66,050 | 64,564 |
Other payable | 4,032 | 161,856 |
Total Current Liabilities | 264,033 | 345,122 |
Common stock, $0.001 par value, 1,000,000,000 shares authorized; 4,822,016 and 147,325,000 shares issued and outstanding, as of November 30, 2019 and November 30, 2018, respectively | 4,822 | 4,822 |
Additional paid-in capital | 6,520,980 | 6,520,980 |
Retained earnings (deficit) | (1,515,375) | (1,452,020) |
Unearned shareholders' compensation | (800,034) | (842,657) |
Total Stockholders’ Equity | 4,210,394 | 4,231,125 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,474,427 | $ 4,576,246 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Nov. 30, 2018 | Jun. 06, 2018 |
Consolidated Balance Sheets Parenthetical | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ .001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued | 4,822,016 | 4,822,016 | 177,100,000 | 147,325,000 | |
Common stock, shares outstanding | 4,822,016 | 4,822,016 | 177,100,000 | 147,325,000 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 156,405 | $ 74,240 |
Cost of revenue | 52,046 | 43,448 |
Gross Profit | 104,358 | 30,792 |
OPERATING EXPENSES | ||
General and administrative expenses | 155,743 | 101,846 |
Related party salary and wages | 46,373 | 37,500 |
Total Operating Expenses | 202,117 | 139,346 |
OTHER INCOME (EXPENSES) | ||
Gain on sale of intangible assets | (120,000) | |
Interest income | 52,488 | |
Loss on change in fair value | (18,084) | |
Total other income (expenses) | 34,404 | (120,000) |
Income Tax Provision | ||
Net loss from continuing operations | (63,354) | (228,554) |
NET INCOME (LOSS) | $ (63,354) | $ (228,554) |
NET INCOME (LOSS) FROM CONTINUED OPERATIONS PER SHARE: BASIC AND DILUTED | $ (0.01) | $ (0.11) |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS PER SHARE: BASIC AND DILUTED | (0.01) | (0.11) |
NET INCOME PER SHARE: BASIC AND DILUTED | $ (0.01) | $ (0.11) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 4,822,000 | 2,134,500 |
Condensed Shareholders Equity (
Condensed Shareholders Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Unearned Shareholders' Compensation | Total |
Beginning Balance, Shares at Aug. 31, 2018 | 147,325,000 | ||||
Beginning Balance, Amount at Aug. 31, 2018 | $ 147,325 | $ 2,866,868 | $ (1,047,386) | $ (918,100) | $ 1,048,707 |
Common shares issued to officers for services, Shares | |||||
Common shares issued to officers for services, Amount | 37,500 | 37,500 | |||
Common shares issued for services, Shares | (40,600,000) | ||||
Common shares issued for services, Amount | $ (40,600) | 30,600 | 10,000 | ||
Net Loss | (228,554) | (228,554) | |||
Ending Balance, Shares at Nov. 30, 2018 | 106,725,000 | ||||
Ending Balance, Amount at Nov. 30, 2018 | $ 106,725 | 2,866,868 | (1,275,940) | (850,000) | 847,653 |
Beginning Balance, Shares at Aug. 31, 2019 | 4,822,016 | ||||
Beginning Balance, Amount at Aug. 31, 2019 | $ 4,822 | 6,520,980 | (1,452,020) | (842,657) | 4,231,125 |
Common shares issued to officers for services, Shares | |||||
Common shares issued to officers for services, Amount | 42,623 | 42,623 | |||
Net Loss | (63,354) | (63,354) | |||
Ending Balance, Shares at Nov. 30, 2019 | 4,822,016 | ||||
Ending Balance, Amount at Nov. 30, 2019 | $ 4,822 | $ 6,520,980 | $ (1,515,375) | $ (800,034) | $ 4,210,394 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss from continuing operations | $ (63,354) | $ (228,554) |
Net income from discontinued operations, net of tax benefit | ||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Executive salaries and consulting fees paid in stock | 42,623 | 37,500 |
Depreciation of tangible asset | 13,158 | |
Amortization of intangible asset | 36,899 | 28,600 |
Loss/(gain) on sales of intangible assets | 120,000 | |
Impairment of investment in iCrowdU | ||
Changes in operating assets and liabilities: | ||
Accounts receivable | (25,600) | (100) |
Receivable on asset disposal | 1,280,000 | |
Interest receivable | (26,240) | |
Related party receivable | 12,878 | |
Prepaid expenses | 9,196 | (151,100) |
Rent security & electricity deposit | ||
Long-term prepayment | (428,800) | |
Accounts payable and accrued liabilities | (11,582) | (5,846) |
Accrued payroll | 86,831 | |
Convertible note and embedded derivative liability | ||
Tax payable | 1,486 | |
Other payable | (157,824) | |
Change in assets (liabilities) from discontinued operations | ||
Net cash used in operating activities | 769,671 | (199,500) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Sales of intangible asset | 80,000 | |
Note receivable | (1,049,600) | |
Investment in iCrowdU | ||
Renovation of an office and an offline display store | ||
Development of intangible asset | ||
Net cash used in / (provided by) investing activities | (1,049,600) | 80,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from shareholder | ||
Proceeds from common stock issuances | ||
Net cash provided by financing activities | ||
Net increase (decrease) in cash and cash equivalents | (279,929) | (199,500) |
Cash and cash equivalents - beginning of the quarter | 1,564,750 | 210,202 |
Cash and cash equivalents - end of the quarter | 1,284,821 | 90,702 |
Supplemental Cash Flow Disclosures | ||
Cash paid for interest | ||
Cash paid for income taxes | ||
Common shares returned for cancelled acquisition of iCrowdU | (10,000) | |
Prepaid expense reversed for cancelled acquisition of iCrowdU | $ 10,000 |
ORGANIZATION AND BUSINESS OPERA
ORGANIZATION AND BUSINESS OPERATIONS | 3 Months Ended |
Nov. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS OPERATIONS | AB International Group Corp. (the "Company", "we" or "us") was incorporated under the laws of the State of Nevada on July 29, 2013 and originally intended to purchase used cars in the United States and sell them in Krygyzstan. The Company's fiscal year end is August 31. On January 22, 2016, our former sole officer, who owned 83% of our outstanding common shares, sold all of his common shares to unrelated investor Jianli Deng. After the stock sale, we modified our business to focus on the creation of a mobile app marketing engine. The app was designed for movie trailer promotions and we planned to generate a subscriber base of smartphone users primarily through pre-installed app smartphone makers, online app stores, WeChat official accounts, Weibo and other social network media outlets and sell prepaid cards or coins to movie distributors or other video advertisers in China. We created the app “Amoney” for the Android smartphone platform to develop a WeChat micro-shop that was designed to display and deliver a variety of information and links for download or online watch prices in the China market. On June 1, 2017, we entered into a Patent License Agreement (the “Agreement”) pursuant to which Guangzhou Shengshituhua Film and Television Company Limited, a company incorporated in China (“Licensor”), granted to us a worldwide license to a video synthesis and release system for mobile communications equipment (the “Technology”). The Technology is the subject of a utility patent in the People’s Republic of China. Under the Agreement, we are able to utilize, improve upon, and sub-license the technology for an initial period of one year from October 1, 2017 to September 30, 2018, subject to a right to renew. We were obligated to pay the Licensor $500,000 within 30 days of the date of the Agreement and a royalty fee in the amount of 20% of any proceeds resulting from our utilization of the Technology, whether in the form of sub-licensing fees or sales of licensed products. Our Chief Executive Officer, Chiyuan Deng and former Chief Executive Officer, Jianli Deng, jointly own and control Licensor. On October 10, 2017, we completed the payment of $500,000 initial payment amount due under the Agreement. In October, 2018, the term of this sublicensing agreement was renewed and extended until October 31, 2019. Our License to the Technology generates revenue through sub-license monthly fees from a smartphone app on Android devices. This app was already existing and licensed at the time we acquired the Technology. On March 10, 2018, we acquired intellectual property for $200,000 from All In One Media Ltd, previously named as Aura Blocks Ltd. On March 19, 2018, we entered into consulting agreements (the “Consulting Agreements”) with four consultants (the “Consultants”). The Consulting Agreements have terms or either two or three years. Under the Consulting Agreements the Consultants will provide services to us in Hong Kong and China related to blockchain technology and krypto kiosks. In consideration for the services provided by the Consultants, we have issued the Consultants a total of 1,100,000 shares of our common stock. On November 10, 2018, the Company sold this intellectual property to China IPTV Industry Park Holdings Ltd. for $80,000. On March 21, 2018, we acquired the intellectual assets of KryptoKiosk Limited, a crypto currencies kiosk company which has licenses and patent in Australia, which enable the operation of cryptocurrency ATMs that allow buying and selling of Bitcoin, Litecoin, and Ethererum all in one terminal. The Company plans to generate revenue through sub-licensing fees for the operation of cryptocurrency ATMs. Through the foregoing the Company proposes to bring a physical aspect to something that is otherwise very abstract to people. We also issued to JPC Fintech Limited 2,400,000 common shares with a market value of $72,000 exchange of KryptoKiosk Limited’s assets consist mostly of intellectual property, including, but not limited to, certain domain names, copyrights, trademarks, and patents pending, but also include contract rights and personal property. We planned to generate revenue through sub-licensing fees for the operation of cryptocurrency ATMs. Through the foregoing, we proposed to bring a physical aspect to something that is otherwise very abstract to people. We planned to invest in machines and sell sub-licenses in the Asia Pacific region with future world-wide expansion. We had promoted and marketed the ATM business for 6 months or until around August 2018, because the BTC and cryptocurrencies price went down. The IP, however, was never transferred to us. We have repeatedly requested from Messrs. Grounds, Vickery and Shakespare access to the domains and websites and other information concerning the IP assets. As of the date of this annual report, no such information has been provided. In addition, the IP including domain names were transferred to others while Messrs. Vickery and Shakespare were officers of our company. As a result, we ceased promotions and marketing on the ATM business and relations cryptocurrencies business in September 2018. On November 21, 2018, we had sent the final notice that JPC Fintech has materially breached the agreement. We requested that JPC Fintech Ltd. return its stock certificate received in the transaction to our transfer agent for immediate cancellation. We have not yet received the certificate for termination. On May 9, 2018, we entered into an investor agreement with iCrowdU Inc. We agreed to purchase 228,013 shares of iCrowdU Inc. at a share price of $1.228 for total consideration of $280,000. iCrowdU Inc. offers an online platform and mobile app for crowd funding services targeting the global crowd funding market. Furthermore, it was agreed to exchange 2,000,000 shares of our common stock for 2,000,000 shares of common stock in iCrowdU Inc. This share exchange was made as collateral in advance of an investment of $1,935,000 by us into iCrowdU Inc., which never occurred. On or about May 9, 2018, we entered into consultancy agreements with Alexander Holtermann, Ian Wright and Luis Hadic. Each of Messrs. Holtermann, Wright and Hadic received 200,000 shares of our common stock under the consultancy agreements. On or about July 26, 2018, we entered into an investment agreement with iCrowdU Inc. for the purchase of 40% of iCrowdU in exchange for 8,000,000 shares of our common stock that would be split between Messrs. Holtermann and Wright at 70% and 30%, respectively, and an investment of $10,000,000. The 8,000,000 shares were cut but not delivered to Messrs. Holtermann and Wright and no part of the $10,000,000 was invested by us into iCrowdU Inc. On or about July 31, 2018, we entered into employment agreements with Messrs. Holtermann and Wright for the consideration provided for under the agreements. On October 25, 2018, the above parties entered into an Agreement for Termination and Release that terminated all outstanding agreements among the parties and released each party from the other. We agreed to settle outstanding expenses and costs incurred by iCrowdU Inc., in the sum of $6,444.90. In addition, all parties agreed to return any shares received from the above agreements, save we shall be permitted to retain the 228,013 shares purchased in iCrowdU Inc. Finally, we agreed to amend our Current Report on Form 8-K concerning certain disclosures made therein. We amended the report as per the agreement. On September 5, 2018, the Company entered into an agreement to acquire a movie copyright for $768,000 from All In One Media Ltd, which holds 200,000 common shares of the Company as of August 31, 2019 and is previously named as Aura Blocks Limited. The remaining balance to Aura Blocks Limited is $153,600 as of August 31, 2019. The Company has obtained the exclusive permanent broadcasting right outside the mainland China and is expected to generate revenues from showing the movie online, in theaters, and on TV outside the mainland China once this movie is completed in June, 2019. In August of 2019, the Company sold this movie copyright to China IPTV Industry Park Holding Ltd for $857,600 with a gain of $89,538. In December of 2018, we engaged StarEastnet, a software developer that holds 171,000 common shares of the Company as of August 31, 2019, to start developing a performance matching platform (Ai Bian Quan Qiu) and a WeChat official account to advertise the platform. The matching platform is to arrange performance events for celebrities and performers. Performers can set their schedules and quotes on the platform. The platform will maximize their profits from performance events by optimizing their schedules based upon quotes and event locations and save time from commuting among different events. “Ai Bian Quan Qiu” utilizes the artificial intelligence (AI) matching technology to instantly and accurately match performers and advertisers or merchants. The company charges agency service fees for each successful event matched through the platform. In June, 2019, the Company completed the development of a video mix APP for social video sharing via iOS and Android smartphones. This app was originally planned to take advantage of the core design philosophy of “My film anyone, anywhere, anytime be together” as similar and competitive innovative video and community apps have been activated on over 2 million unique devices in China as of December 31, 2017 and precipitated the duet video synthesis phenomenon in China. However, the Company decided to focus on the “Ai Bian Quan Qiu” platform as its main business and thus sold the video mix APP to Anyone Pictures Limited, which holds 242,980 common shares of the Company, for $422,400 with a gain of $59,792 in August of 2019. In August of 2019, the Company entered into a one-year loan agreement to lend $1,047,040 at an annual interest rate of 10% to All In One Media Ltd, previously named as Aura Blocks Limited, for producing films and digital videos in Hong Kong. The term of note receivable is from August 1, 2019 to July 31, 2020. On September 4, 2019, the Company entered into another loan agreement to lend $1,049,600 at an annual interest rate of 10% to All In One Media Ltd, previously named as Aura Blocks Limited. The term of note receivable is from September 4, 2019 to March 3, 2020. The Company expects to have similar short term note receivables for the next few years. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company’s year-end is August 31. The financial statements have been prepared on a consolidated basis, with their fully owned subsidiary App Board Limited. Basis of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s fully owned subsidiary App Board Limited registered and located in Hong Kong. No intercompany balances or transactions exist during the period ended November 30, 2019 and 2018. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Foreign Currency Transactions The Company’s planned operations are outside of the United States, which results in exposure to market risks from changes in foreign currency rates. The financial risk arise from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Non-monetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the year. Revenues and expenses are translated at average rates for the year. Gains and losses from translation of foreign currency financial statements into U.S. dollars are included in current results of operations. Accounts Receivable Accounts receivable consist of amounts due from Anyone Pictures Limited for the sub-licensing fee revenue. Amounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. No amount for bad debt expense has been recorded by the Company during the three months ended November 30, 2019 and 2018, and no write-off for bad debt were recorded for the three months ended November 30, 2019 and 2018. Prepaid Expenses Prepaid expenses primarily consist of consulting fees that have been paid in advance and prepayments of OTC market annual fee and website domain fee. The prepaid balances are amortized when the related expense is incurred. Note Receivable Note receivable is a one-year note bearing annual interest of 10% with the principal payable annually at the end of the term. Interest is due and payable, at the election of the Company, in cash on the Maturity Date, as applicable, or if the note receivable is prepaid earlier, on such prepayment date. Therefore, interest income is recorded along with interest receivable throughout the note period. Fixed Asset Fixed asset consists of furniture and appliances acquired for the office. The balance is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives listed below: Estimated Useful Life Furniture 5 years Appliances 7 years Leasehold Improvement Leasehold improvement is related to the enhancements paid by the Company to leased office and store. Leasehold improvement represents capital expenditures for direct costs of renovation or acquisition and design fees incurred. The amortization of leasehold improvements commences once the renovation is completed and ready for the Company’s intended use. Leasehold improvement is amortized over the lease term of 3 years. Intangible Assets Intangible assets are stated at cost and depreciated as follows: ● Mobile application product: straight-line method over the estimated life of the asset, which has been determined by management to be 3 years ● Movie copyrights: income forecast method for a period not to exceed 10 years ● Patent: straight-line method over the term of 5 years based on the patent license agreement Amortized costs of the intangible asset are recorded as cost of sales, as the intangible asset is directly related to generation of revenues in the Company. Revenue Recognition The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, applying the modified retrospective method. In accordance with ASC Topic 606, revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied. The Company does not believe that significant management judgements are involved in revenue recognition, but the amount and timing of the Company’s revenues could be different for any period if management made different judgments or utilized different estimates. Generally, the Company recognizes revenue under ASC Topic 606 for its performance obligation. The Company generates revenue from sub-licensing a patent and charging a service fee from the “Ai Bian Quan Qiu” platform for actors and commercial events matching. The sub-licensing revenue is recognized monthly based upon the number of users who download the APP that utilizes the Company’s patent. The monthly royalty the Company charges Anyone Pictures Limited is $12.8 per 1000 APP users. During the year of 2019, both parties agreed to charge the sublicensing fee based upon a fixed number 2,000,000 users. The “Ai Bian Quan Qiu” platform service revenue is derived principally from providing matching service to merchants who are looking for actors to perform at their advertising events. The Company recognizes revenue upon a matching event is accepted by actors with a service fee of 10% of the actors’ quote for performing at the events. For the service fee revenue from the “Ai Bian Quan Qiu” platform, the Company does not control the specified goods or services before that is transferred to the customers and thus the Company is an agent. Therefore, this service revenue is recognized at a net basis. Leasing The Company has operating leases for an office and a store for display with expiration dates through 2022. The Company determines whether an arrangement is or includes an embedded lease at contract inception. Lease expense is recognized on a straight-line basis over the lease term. Fair Value of Financial Instruments ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 - Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 - Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of cash, accounts payable, and accrued liabilities approximate fair value. Pursuant to ASC 820 and 825, the fair value of cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. Accounting for Derivative Instruments The Company accounts for derivative instruments in accordance with ASC Topic 815, “Derivatives and Hedging” (ASC 815) and all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet. The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for the Company's liabilities), relying first on observable data from active markets. Additional adjustments may be made for factors including liquidity, credit, bid/offer spreads, etc., depending on current market conditions. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. Changes in fair value are recognized in the period incurred as either gains or losses. Income Taxes The Company accounts for income taxes pursuant to FASB ASC 740 “ Income Taxes ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. Under ASC 740, the impact of an uncertain tax position on the income tax return may only be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. At November 30, 2019, there was unrecognized tax benefits. Please see Notes 12 for details. Value-Added Taxes The Company generates revenue in People's Republic of China (PRC) via the “Ai Bian Quan Qiu” platform and is subject to a value-added tax at an effective rate of 6%. In accordance with PRC law, the Company is also subject to surcharges, which includes urban maintenance and construction taxes and additional education fees on VAT payable. For the three months ended November 30, 2019, the Company’s revenue generated from the “Ai Bian Quan Qiu” platform is subject to VAT at a rate of 6% and subject to surcharges at a rate of 12% of the VAT payable. The Company did not incur any VAT tax for the three months ended November 30, 2018 as the “Ai Bian Quan Qiu” platform did not start generating revenue until February, 2019. Basic and Diluted Income (Loss) Per Share The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. No potentially dilutive debt or equity instruments were issued or outstanding as of November 30, 2019 and August 31, 2019. The earnings per share after the reverse stock split is presented retrospectively as if the reverse split had occurred at the very beginning of the business. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The guidance in ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. In September 2017, the FASB has issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02. In February 2018, the FASB issued guidance to address the income tax accounting treatment of the tax effects within other comprehensive income due to the enactment of the Tax Cuts and Jobs Act (the “Act”). This guidance allows entities to elect to reclassify the tax effects of the change in the income tax rates from other comprehensive income to retained earnings. The guidance is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company has evaluated and concluded that there was no impact on its consolidated financial position and results of operations. In March 2018, the FASB issued ASU 2018-05: “Income Taxes (Topic 740)-Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”. The amendments in this ASU add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 – the date on which the Tax Cuts and Jobs Act was signed into law. The Company has evaluated and concluded that there was no impact on its consolidated financial position and results of operations. In June 2018, the FASB issued ASU 2018-07: “Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting”. This ASU expands the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity—Equity-Based Payments to Nonemployees. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other companies, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than a company’s adoption date of Topic 606, Revenue from Contracts with Customers. The Company does not currently expect the adoption of the amendment to have a material impact on its consolidated financial position and results of operations. In July 2018, the FSAB issued ASU 2018-10 ASC Topic 842: “Codification Improvements to Leases” The amendments are to address stakeholders’ questions about how to apply certain aspects of the new guidance in Accounting Standards Codification (ASC) 842, Leases. The clarifications address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The amendments in ASC Topic 842 are effective for EGC for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842). This update provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. Entities that elect this optional transition method must provide the disclosures that were previously required. The Company is evaluating the effect this new guidance will have on our consolidated financial statements and related disclosures. |
PREPAID EXPENSES
PREPAID EXPENSES | 3 Months Ended |
Nov. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES | Prepaid expense as of November 30, 2019 includes $4,167 prepaid consulting fees, $8,000 prepayment of OTC market annual fee, and $608 prepaid website and domain fee. |
NOTE RECEIVABLE
NOTE RECEIVABLE | 3 Months Ended |
Nov. 30, 2019 | |
Receivables [Abstract] | |
NOTE RECEIVABLE | Note receivable relates to two loan agreements entered with All In One Media, previously named as Aura Blocks Limited, in August and September of 2019, respectively. The note receivable entered in August, 2019 is a one-year loan of $1,047,040 the Company lent to All In One Media Ltd at an annual interest rate of 10%. The loan principal is due on July 31, 2020. The note receivable entered in September, 2019 lent $1,049,600 at an annual interest rate of 10% to All In One Media Ltd with a term from September 4, 2019 to March 3, 2020. As of November 30, 2019 and August 31, 2019, the Note receivable balance is $2,096,640 and $1,047,040, respectively and the interest receivable balance is $34,965 and $8,725, respectively. For the three months ended November 30, 2019, the Company has generated interest income of $52,416 for these two note receivables. |
LEASEHOLD IMPROVEMENT
LEASEHOLD IMPROVEMENT | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
LEASEHOLD IMPROVEMENT | Leasehold improvement relates to renovation and upgrade of an office and an offline display store. There is a total cost of $165,760 due to the construction company, including $146,752 for renovation of the office and the store and $19,008 related to office furniture and appliances the construction company purchased on behalf of the Company. As of November 30, 2019, the Company has paid $165,312 to the construction company with a remaining unpaid balance of $448 recorded in other payable. As the renovation is completed as of November 30, 2019, the Company capitalized the renovation cost as leasehold improvement and the cost of furniture and appliances as fixed asset. The leasehold improvement is depreciated over 3 years which equal the terms of the operating lease for renting an office. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
INTANGIBLE ASSETS | As of November 30, 2019, and August 31, 2019, the balance of intangible assets are as follows; November 30, 2019 August 31, 2019 Patent $ 500,000 $ 500,000 Intellectual property: Aura — — Intellectual property: Kryptokiosk 72,000 72,000 Wechat official account 99,584 99,584 Total cost 671,584 671,584 Accumulated amortization (294,690 ) (257,791) Intangible asset, net $ 376,894 $ 413,793 Amortization expenses for three months ended November 30, 2019 and 2018 was $36,899 and $28,600 respectively. |
LONG-TERM PREPAYMENT
LONG-TERM PREPAYMENT | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
LONG-TERM PREPAYMENT | In September 2019, the company entered into an agreement with its related party Youall Perform Services Ltd. for upgrading software of the “Ai Bian Quan Qiu” platform at a cost of $128,000. $108,800 has been paid as of November 30, 2019 and booked as long-term prepayment. In November 2019, the company acquired two movie copyrights at a price of $256,000 for “Lushang” and $115,200 for “Qi Qing Kuai Che.” $256,000 is fully paid for the movie Lushang and $64,000 is paid for the movie Qi Qing Kuai Che. The estimated earliest release date of these two movies will be in the third quarter of FY2021. |
CONVERTIBLE NOTE
CONVERTIBLE NOTE | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
CONVERTIBLE NOTE | On November 18, 2019, the Company closed a private financing with EMA Financial, LLC (“EMA Financial” or the “Holder”) by issuing a convertible note (the “Note”). The Note has an original principal amount of $250,000, and upon issuance, the Company is expected to receive net proceeds of $228,333 after subtracting an original issue discount of $21,667 per the Note agreement. This Note carries a prorated original issue discount of up to $21,667 (the “OID”), to cover the Holder’s monitoring costs associated with the purchase and sale of the Note, which is included in the principal balance of this Note. As part of initial closing the outstanding principal amount shall be $75,000 and the Holder shall pay $68,500 of the consideration (the “First Tranche”). Out of $68,500 consideration, the Company has received $64,737 cash from EMA Financial with the remaining $3,763 spent as legal expense for note issuance and due diligence fees. The term of the convertible note is 9 months with the maturity date on August 18, 2020. The interest rate of 10.0% per annum. Upon an event of default, the interest rate will be equal to the 24.0% per annum from the due date thereof until the same is paid. The convertible note has prepayment and conversion features. The conversion price shall equal the lower of: (i) the lowest closing price during the preceding 20 trading day period ending on the latest complete trading day prior to the Issue Date of this Note (the “Closing Price”) or (ii) 55.0% of the lowest traded price for the common stock on the principal market during the 20 consecutive trading Days on which at least 100 shares of common stock were traded including and immediately preceding the Conversion Date. The following table summarizes the convertible note and derivative liability in the balance sheet at November 30, 2019: Balance, August 31, 2019 $ — Principal $ 75,000 Discount on Note issuance $ (6,500) Accrued interest expense $ 247 Derivative liability $ 18,084 Balance, November 30, 2019 $ 86,831 The Company valued its derivatives liability using Monte Carlo simulation. Assumptions used during the three months ended November 30, 2019 include (1) risk-free interest rates of 1.62%, (2) expected equity volatility of 72.4%, (3) zero dividends, (4) remaining term 0.72 years, (5) discount for lack of marketability of 35% (6) conversion prices as set forth in the convertible note agreement, and (7) the common stock price of the underlying share on the valuation dates. The Company recognizes day one loss due to convertible feature of $18,084 in the income statement for the three months ended November 30, 2019. |
OTHER PAYABLE
OTHER PAYABLE | 3 Months Ended |
Nov. 30, 2019 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLE | Other payable primarily consists of $3,584 payable for a cloud hosting service, and $448 remaining payment for the office renovation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note. During the three months ended November 30, 2019 and 2018, there are no such related party transactions. The Company has entered into a patent license agreement with a related party Guangzhou Shengshituhua Film and Television Company Limited (“Licensor”). The agreement is for a term of 5 years commencing on the effective date on June 1, 2017. The Company has already paid the licensor a non-refundable, up-from payment of $500,000 and shall pay a royalty of 20% of the gross revenue realized from the sale of licensed products and sub-licensing of this patent every year. The royalty expenses during the three months ended November 30, 2019 and 2018 are $15,360 and $14,848, respectively. In December, 2018, the Company appointed Brandy Gao as Chief Financial Officer and issued 100,000 shares as compensation. In February 2019, the Company appointed Linqing Yeas Chief Operational Officer and Lijun Yu as Chief Marketing Officer, and issued 10,000,000 shares to each of them as compensation. During the three month ended November 30, 2019, $42,623 was paid to six executives in the form of stock-based compensation and $3,750 cash salary was paid to the Chief Financial Officer. As of November 30, 2019, the company has $22,115 related party receivable from Youall Perform Services Ltd, owned by the Company’s Board of Director Jianli Deng. Youall Perform Services Ltd collected revenue from the performance matching platform (Ai Bian Quan Qiu) on behalf of the Company. In September 2019, the company entered into an agreement with Youall Perform Services Ltd for two transactions. 1) Youall Perform Services Ltd. will provide IT consulting service for “Ai Bian Quan Qiu” platform upgrade and maintenance at a total cost of $128,000, out of which $108,800 has been paid as of November 30, 2019. 2) The Company will pay Youall Perform Services Ltd. 10% of the revenue generated from the “Ai Bian Quan Qiu” platform every month to reimburse the valued-added tax and tax surcharge and foreign transaction fee Youall Perform Services Ltd. has been paying on behalf of the Company. The Company rented an office from Zestv Studios Ltd., owned by the Chief Executive Officer Chiyuan Deng, and incurred a total related party payable of $5,504 as there is a one-month lag in payment of the office rent. |
EQUITY
EQUITY | 3 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
EQUITY | Effective as of June 6, 2018, AB International Group Corporation amended its Articles of Incorporation to increase its authorized common stock to One Billion (1,000,000,000) shares, par value $0.001 per share. During the year ended August 31, 2019, the following 40,600,000 common shares were returned to the Company due to the termination of the Investor Agreement to acquire 51% ownership of iCrowdU Inc: ● 2,000,000 shares for acquisition of shares of iCrowdU as collateral and 8,000,000 shares as consideration. ● 20,200,000 issued to Alexander Holtermann for employment as Chief Executive Officer, 10,200,000 to Ian Wright for employment as Chief Operational Officer, and 200,000 to Eichbaum Financial Reporting Services Inc. for consulting fees. In June, 2019, the Company incurred a 50:1 common reverse stock split. Prior to approval of the reverse split the Company had a total of 177,100,000 issued and outstanding shares of common stock, par value $0.001. On the effective date of the reverse split, the Company has a total of 3,602,016 issued and outstanding shares of common stock, par value $0.001. Upon the Reverse Split becoming effective, the par value per share of common stock will remain unchanged at $0.001 per share. As a result, on the effective date of the Reverse Split, the stated capital on the Company’s balance sheet attributable to our common stock will be reduced proportionally, based on the exchange ratio of the Reverse Split, from its present amount, and the additional paid-in capital account will be credited with the amount by which the stated capital is reduced. The net income or loss and net book value per share of common stock will be increased, because there will be fewer shares of common stock outstanding. The Company issued the following common shares during year ended August 31, 2019: ● 1,975,000 shares issued for consulting services of $59,250 to two third-party consultants during Q1, 2019 and 3,300,000 common shares for consulting services of $99,000 to nine third-party consultants during Q3, 2019 ● 20,100,000 shares for services from officers: 10,000,000 issued to Linqing Ye for employment as Chief Operational Officer, 10,000,000 issued to Lijun Yu for employment as Chief Marketing Officer, 100,000 to Brandy Gao for employment as Chief Financial Officer. ● 18,000,000 common shares issued at $0.02 per share to five unrelated parties for proceeds of $360,000 during Q2, 2019. The five unrelated parties include Anyone Pictures Limited, Kangdi Liu, Lijun Yu, Zestv Features Limited, and All In One Media Limited. ● 13,000,000 common shares issued at $0.02 per share to three unrelated parties, including 3,000,000 to Kangdi Liu and 10,000,000 Bonus Media Investment Limited during Q3, 2019 for total proceeds of $260,000 during Q3, 2019. ● 3,000,000 common shares issued at $0.02 per share to an unrelated third party Zestv Features Limited in Q4, 2019 before the 50:1 reverse stock split for a total proceed of $60,000. ● 20,000,000 common shares to the Chief Executive Officer Chiyuan Deng with 14,000,000 issued at $0.02 per share in Q3, 2019 and 600,000 shares issued at $2 per share in Q4, 2019 after the 50:1 reverse stock split for total cash proceeds of $1,480,000. ● 620,000 common shares issued at $2 per share after the reverse stock split to five unrelated party, including 100,000 to All In One Media Limited, 60,000 to KangDi Liu, 130,000 to Anyone Pictures Limited, 165,000 to StarEastNet, and 165,000 to Baoyu Chen, for total proceeds of $1,240,000 There are no common shares issued during the three months ended November 30, 2019. The Company has 4,822,016 issued and outstanding shares of common stock as of November 30, 2019 and August 31, 2019. These common shares were held by approximately 513 shareholders of record at November 30, 2019 and August 31, 2019. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
INCOME TAXES | On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law. The Company has completed the accounting for the effects of the Act. The Company’s financial statements for the year ended August 31, 2019 reflect certain effects of the Act which includes a reduction in the corporate tax rate from 35% to 21% as well as other changes. Components of net deferred tax assets, including a valuation allowance, are as follows as of November 30, 2019 and August 31, 2019: November 30, 2019 August 31, 2019 Deferred tax asset attributable to: Net operating loss carry over $ 203,848 $ 201,056 Less: valuation allowance (203,848 ) (201,056) Net deferred tax asset $ — $ — The valuation allowance for deferred tax assets was $203,848 as of November 30, 2019 and $201,056 as of August 31, 2019. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of November 30, 2019 and August 31, 2019. Reconciliation between the statutory rate and the effective tax rate is as follows for the three months ended November 30, 2019 and 2018: Three months ended November 30, 2019 2018 Federal statutory tax rate 21 % 21% Change in valuation allowance (21 %) (21%) Effective tax rate 0 % 0% The Company’s fully owned subsidiary App Board Limited registered and located in Hong Kong. It is governed by the income tax law of the Hong Kong and is subject to a tax rate of 16.5%. During the three months ended November 30, 2019 and 2018, the Company and its subsidiary have incurred a loss of ($63,354) and ($228,554), respectively. As a result, the Company and its subsidiary did not incur any income tax during the three months ended November 30, 2019 and 2018. |
CONCENTRATION RISK
CONCENTRATION RISK | 3 Months Ended |
Nov. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION RISK | 49% and 100% of revenue was generated from one customer during the three months ended November 30, 2019 and 2018, respectively. 100% of account receivables was due from one customer as of November 30, 2019 and November 30, 2018. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Operating lease The Company leases office premises and a display store under non-cancelable operating lease agreements with an option to renew the lease. The rental expense for the three months ended November 30, 2019 and 2018 was $20,045 and $0 respectively. All leases are on a fixed payment basis. None of the leases include contingent rentals. The Company had lease commitment of $229,120 as of August 31, 2019, of which $87,245 was within one year. Future lease commitments FY 2020 $ 87,245 FY 2021 $ 87,245 FY 2022 $ 54,630 Total $ 229,120 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
SUBSEQUENT EVENTS | In accordance with ASC 855-10, the Company has analyzed its operations subsequent to August 31, 2019 to the date these financial statements were issued. On December 13, 2019, the Company entered into a Securities Purchase Agreement with Peak One Opportunity Fund, L.P., a Delaware limited partnership (“Peak One”), pursuant to which we issued and sold to the Peak One a convertible promissory note, dated December 9 2019 in the principal amount of $85,000 (the “Note”). On December 18, 2019, the Company received $65,312 less fees and commissions. In connection with the issuance of the Note, the Company granted Peak One a five-year cashless warrant (the “Warrant”) to purchase 10,000 shares of common stock at an exercise price of $10 per share. On December 19, 2019, the Company paid off the balance of $51,200 to All In One Media Limited for acquiring the movie copyright of “Qi Qing Kuai Che”. On January 2, 2020, the Company entered into a Securities Purchase Agreement with Auctus Fund, LLC (“Auctus”) pursuant to which the Company issued and sold to the Auctus a convertible promissory note, dated December 31, 2019, in the principal amount of $75,000. The Company received $59,250 less fees and commissions. On January 9, 2020, the Company entered into a Securities Purchase Agreement with Crown Bridge Partners, LLC., a New York limited company (“Crown”), pursuant to which the Company issued and sold to Crown a convertible promissory note, dated January 8, 2020, in the principal amount of $121,500. The Company received $35,000 as the first tranche less fees and commissions. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Nov. 30, 2019 | |
Summary Of Significant Accounting Policies Policies | |
Basis of Presentation | The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company’s year-end is August 31. The financial statements have been prepared on a consolidated basis, with their fully owned subsidiary App Board Limited. |
Basis of Consolidation | The financial statements have been prepared on a consolidated basis, with the Company’s fully owned subsidiary App Board Limited registered and located in Hong Kong. No intercompany balances or transactions exist during the period ended November 30, 2019 and 2018. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. |
Foreign Currency Translations | The Company’s planned operations are outside of the United States, which results in exposure to market risks from changes in foreign currency rates. The financial risk arise from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Non-monetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the year. Revenues and expenses are translated at average rates for the year. Gains and losses from translation of foreign currency financial statements into U.S. dollars are included in current results of operations. |
Accounts receivable | Accounts receivable consist of amounts due from Anyone Pictures Limited for the sub-licensing fee revenue. Amounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. No amount for bad debt expense has been recorded by the Company during the three months ended November 30, 2019 and 2018, and no write-off for bad debt were recorded for the three months ended November 30, 2019 and 2018. |
Prepaid Expenses | Prepaid expenses primarily consist of consulting fees that have been paid in advance and prepayments of OTC market annual fee and website domain fee. The prepaid balances are amortized when the related expense is incurred. |
Note Receivable | Note receivable is a one-year note bearing annual interest of 10% with the principal payable annually at the end of the term. Interest is due and payable, at the election of the Company, in cash on the Maturity Date, as applicable, or if the note receivable is prepaid earlier, on such prepayment date. Therefore, interest income is recorded along with interest receivable throughout the note period. |
Fixed asset | Fixed asset consists of furniture and appliances acquired for the office. The balance is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives listed below: Estimated Useful Life Furniture 5 years Appliances 7 years |
Leasehold Improvement | Leasehold improvement is related to the enhancements paid by the Company to leased office and store. Leasehold improvement represents capital expenditures for direct costs of renovation or acquisition and design fees incurred. The amortization of leasehold improvements commences once the renovation is completed and ready for the Company’s intended use. Leasehold improvement is amortized over the lease term of 3 years. |
Income Taxes | The Company accounts for income taxes pursuant to FASB ASC 740 “ Income Taxes ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. Under ASC 740, the impact of an uncertain tax position on the income tax return may only be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. At November 30, 2019, there was unrecognized tax benefits. Please see Notes 12 for details. |
Revenue Recognition | The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, applying the modified retrospective method. In accordance with ASC Topic 606, revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied. The Company does not believe that significant management judgements are involved in revenue recognition, but the amount and timing of the Company’s revenues could be different for any period if management made different judgments or utilized different estimates. Generally, the Company recognizes revenue under ASC Topic 606 for its performance obligation. The Company generates revenue from sub-licensing a patent and charging a service fee from the “Ai Bian Quan Qiu” platform for actors and commercial events matching. The sub-licensing revenue is recognized monthly based upon the number of users who download the APP that utilizes the Company’s patent. The monthly royalty the Company charges Anyone Pictures Limited is $12.8 per 1000 APP users. During the year of 2019, both parties agreed to charge the sublicensing fee based upon a fixed number 2,000,000 users. The “Ai Bian Quan Qiu” platform service revenue is derived principally from providing matching service to merchants who are looking for actors to perform at their advertising events. The Company recognizes revenue upon a matching event is accepted by actors with a service fee of 10% of the actors’ quote for performing at the events. For the service fee revenue from the “Ai Bian Quan Qiu” platform, the Company does not control the specified goods or services before that is transferred to the customers and thus the Company is an agent. Therefore, this service revenue is recognized at a net basis. |
Leasing | The Company has operating leases for an office and a store for display with expiration dates through 2022. The Company determines whether an arrangement is or includes an embedded lease at contract inception. Lease expense is recognized on a straight-line basis over the lease term. |
Fair value of financial instruments | ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 - Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 - Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of cash, accounts payable, and accrued liabilities approximate fair value. Pursuant to ASC 820 and 825, the fair value of cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. |
Accounting for derivative instruments | The Company accounts for derivative instruments in accordance with ASC Topic 815, “Derivatives and Hedging” (ASC 815) and all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet. The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for the Company's liabilities), relying first on observable data from active markets. Additional adjustments may be made for factors including liquidity, credit, bid/offer spreads, etc., depending on current market conditions. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. Changes in fair value are recognized in the period incurred as either gains or losses. |
Value-Added Taxes | The Company generates revenue in People's Republic of China (PRC) via the “Ai Bian Quan Qiu” platform and is subject to a value-added tax at an effective rate of 6%. In accordance with PRC law, the Company is also subject to surcharges, which includes urban maintenance and construction taxes and additional education fees on VAT payable. For the three months ended November 30, 2019, the Company’s revenue generated from the “Ai Bian Quan Qiu” platform is subject to VAT at a rate of 6% and subject to surcharges at a rate of 12% of the VAT payable. The Company did not incur any VAT tax for the three months ended November 30, 2018 as the “Ai Bian Quan Qiu” platform did not start generating revenue until February, 2019. |
Basic and Diluted Income (Loss) Per Share | The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. No potentially dilutive debt or equity instruments were issued or outstanding as of November 30, 2019 and August 31, 2019. The earnings per share after the reverse stock split is presented retrospectively as if the reverse split had occurred at the very beginning of the business. |
Intangible Assets | Intangible assets are stated at cost and depreciated as follows: ● Mobile application product: straight-line method over the estimated life of the asset, which has been determined by management to be 3 years ● Movie copyrights: income forecast method for a period not to exceed 10 years ● Patent: straight-line method over the term of 5 years based on the patent license agreement Amortized costs of the intangible asset are recorded as cost of sales, as the intangible asset is directly related to generation of revenues in the Company. |
Recent accounting pronouncements | In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The guidance in ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. In September 2017, the FASB has issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02. In February 2018, the FASB issued guidance to address the income tax accounting treatment of the tax effects within other comprehensive income due to the enactment of the Tax Cuts and Jobs Act (the “Act”). This guidance allows entities to elect to reclassify the tax effects of the change in the income tax rates from other comprehensive income to retained earnings. The guidance is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company has evaluated and concluded that there was no impact on its consolidated financial position and results of operations. In March 2018, the FASB issued ASU 2018-05: “Income Taxes (Topic 740)-Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”. The amendments in this ASU add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 – the date on which the Tax Cuts and Jobs Act was signed into law. The Company has evaluated and concluded that there was no impact on its consolidated financial position and results of operations. In June 2018, the FASB issued ASU 2018-07: “Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting”. This ASU expands the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity—Equity-Based Payments to Nonemployees. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other companies, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than a company’s adoption date of Topic 606, Revenue from Contracts with Customers. The Company does not currently expect the adoption of the amendment to have a material impact on its consolidated financial position and results of operations. In July 2018, the FSAB issued ASU 2018-10 ASC Topic 842: “Codification Improvements to Leases” The amendments are to address stakeholders’ questions about how to apply certain aspects of the new guidance in Accounting Standards Codification (ASC) 842, Leases. The clarifications address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The amendments in ASC Topic 842 are effective for EGC for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842). This update provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. Entities that elect this optional transition method must provide the disclosures that were previously required. The Company is evaluating the effect this new guidance will have on our consolidated financial statements and related disclosures. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Intangible Assets Tables | |
Schedule of intangible assets | November 30, 2019 August 31, 2019 Patent $ 500,000 $ 500,000 Intellectual property: Aura — — Intellectual property: Kryptokiosk 72,000 72,000 Wechat official account 99,584 99,584 Total cost 671,584 671,584 Accumulated amortization (294,690 ) (257,791) Intangible asset, net $ 376,894 $ 413,793 |
CONVERTIBLE NOTE (Tables)
CONVERTIBLE NOTE (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Convertible note and derivative liability | Balance, August 31, 2019 $ — Principal $ 75,000 Discount on Note issuance $ (6,500) Accrued interest expense $ 247 Derivative liability $ 18,084 Balance, November 30, 2019 $ 86,831 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Income Taxes Tables | |
Schedule of Deferred Tax Assets and Liabilities | November 30, 2019 August 31, 2019 Deferred tax asset attributable to: Net operating loss carry over $ 203,848 $ 201,056 Less: valuation allowance (203,848 ) (201,056) Net deferred tax asset $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | Three months ended November 30, 2019 2018 Federal statutory tax rate 21 % 21% Change in valuation allowance (21 %) (21%) Effective tax rate 0 % 0% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Future lease commitments | FY 2020 $ 87,245 FY 2021 $ 87,245 FY 2022 $ 54,630 Total $ 229,120 |
ORGANIZATION AND BUSINESS OPE_2
ORGANIZATION AND BUSINESS OPERATIONS (Details Narrative) - USD ($) | Sep. 05, 2018 | May 09, 2018 | Oct. 10, 2017 | Aug. 31, 2019 | Oct. 25, 2018 | Jul. 26, 2018 | Jun. 01, 2017 | Nov. 30, 2019 | Aug. 31, 2018 | Aug. 31, 2016 | Sep. 04, 2019 | Aug. 01, 2019 | Dec. 01, 2018 | Mar. 21, 2018 | Mar. 19, 2018 | Mar. 10, 2018 | Jan. 22, 2016 |
Organization And Business Operations [Line Items] | |||||||||||||||||
Entity incorporation, date of incorporation | Jul. 29, 2013 | ||||||||||||||||
Ownership interest sold by former officer | 83.00% | ||||||||||||||||
Revenues | $ 2,820,000 | ||||||||||||||||
Payments made to patent agreements | $ 50,000,000 | ||||||||||||||||
Cash payment for intellectual property in Aura Blocks LTD | $ 20,000,000 | ||||||||||||||||
Shares issued to consultants | 1,100,000 | ||||||||||||||||
Common Shares issued to JPC Fintech Mimited | 2,400,000 | ||||||||||||||||
Market Value of Shares Issued to JPC Fintech Limited | $ 7,200,000 | ||||||||||||||||
All In One Media Ltd [Member] | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Common shares held | 200,000 | ||||||||||||||||
Obligation to pay Licensor | $ 76,800,000 | ||||||||||||||||
Remaining balance due on agreement | $ 15,360,000 | ||||||||||||||||
Sale of investment | $ 85,760,000 | ||||||||||||||||
Proceeds on sale of investment | $ 8,953,800 | ||||||||||||||||
Patent License Agreement [Member] | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Term of Agreement | 5 years | ||||||||||||||||
Obligation to pay Licensor | $ 50,000,000 | ||||||||||||||||
Royaly Fee on proceeds | $ 0.20 | ||||||||||||||||
Payment due within days of agreement | 30 days | ||||||||||||||||
Anyone Pictures Limited [Member] | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Common shares held | 242,980 | ||||||||||||||||
Sale of investment | $ 422,400 | ||||||||||||||||
Proceeds on sale of investment | $ 5,979,200 | ||||||||||||||||
Loan Agreement [Member] | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Loan amount | $ 104,704,000 | ||||||||||||||||
Loan, interest rate | 10.00% | ||||||||||||||||
Term of loan | 1 year | ||||||||||||||||
Loan Agreement 2 [Member] | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Loan amount | $ 104,960,000 | ||||||||||||||||
Loan, interest rate | 10.00% | ||||||||||||||||
Term of loan | 6 months | ||||||||||||||||
StarEastnet | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Common shares held | 171,000 | ||||||||||||||||
Investment Agreement Step 1 [Member] | iCrowdU [Member] | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Shares of iCrowdU purchased | 228,013 | ||||||||||||||||
Price Per Share of iCrowdU purchased | $ 1.228 | ||||||||||||||||
Total Consideration to iCrowdU | $ 28,000,000 | ||||||||||||||||
Shares of Common Stock given in exchange with iCrowdU | 2,000,000 | ||||||||||||||||
Shares of Common Stock received in exchange with iCrowdU | 2,000,000 | ||||||||||||||||
iCrowdU Investment Total | $ 193,500,000 | ||||||||||||||||
Percent of iCrowdU Proposed to Purchase | 40.00% | ||||||||||||||||
Common Shares proposed to be issued in exchange | 8,000,000 | ||||||||||||||||
Value of proposed investment in iCrowdU | $ 1,000,000,000 | ||||||||||||||||
Shares cut not delivered | 8,000,000 | ||||||||||||||||
Consultancy Agreement [Member] | Holtermann Wright Hadic [Member] | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Shares of Common Stock Issued to each consultant | 200,000 | ||||||||||||||||
Termination and Release Agreementt [Member] | iCrowdU [Member] | |||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||
Settlement of outstanding expenses and costs incurred by iCrowdU | 644490.00% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Narrative) | 3 Months Ended |
Nov. 30, 2019 | |
Mobile application product [Member] | |
Estimated useful life of intangible asset | 3 years |
Finite-lived intangible assets, amortization method | Straight-line method |
Patent [Member] | |
Estimated useful life of intangible asset | 5 years |
Finite-lived intangible assets, amortization method | Straight-line method |
Copyrights [Member] | |
Finite-lived intangible assets, amortization method | Income forecast method |
Copyrights [Member] | Maximum [Member] | |
Estimated useful life of intangible asset | 10 years |
Furniture [Member] | |
Estimated useful life of fixed asset | 5 years |
Appliances [Member] | |
Estimated useful life of fixed asset | 7 years |
PREPAID EXPENSES (Details Narra
PREPAID EXPENSES (Details Narrative) - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Prepaid expenses to third parties | $ (9,196) | $ 151,100 |
Consulting Fees [Member] | ||
Prepaid expenses to third parties | 4,167 | |
OTC Markets Annual Fee [Member] | ||
Prepaid expenses to third parties | 8,000 | |
Website and Domain Fee [Member] | ||
Prepaid expenses to third parties | $ 608 |
NOTE RECEIVABLE (Details Narrat
NOTE RECEIVABLE (Details Narrative) - USD ($) | 3 Months Ended | |||
Nov. 30, 2019 | Sep. 04, 2019 | Aug. 31, 2019 | Aug. 01, 2019 | |
Note receivable balance | $ 2,096,640 | $ 1,047,040 | ||
Interest income and receivable | 34,965 | $ 8,725 | ||
Interest income | $ 52,416 | |||
Loan Agreement [Member] | ||||
Loan amount | $ 104,704,000 | |||
Loan, interest rate | 10.00% | |||
Term of loan | 1 year | |||
Loan Agreement 2 [Member] | ||||
Loan amount | $ 104,960,000 | |||
Loan, interest rate | 10.00% | |||
Term of loan | 6 months |
LEASEHOLD IMPROVEMENT (Details
LEASEHOLD IMPROVEMENT (Details Narrative) | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Leases [Abstract] | |
Leashold improvement cost to construction company | $ 165,760 |
Paid for construction | 165,312 |
Unpaid balance of construction | $ 448 |
Depreciation term of improvements | 3 years |
Office renovation cost | $ 146,752 |
Furniture and appliances | $ 19,008 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | Nov. 30, 2019 | Aug. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total Cost | $ 671,584 | $ 671,584 |
Accumulated amortization | (294,690) | (257,791) |
Intangible asset, net | 376,894 | 413,793 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 500,000 | 500,000 |
Aura Blocks Ltd [Member] | Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | ||
Kryptokiosk Limited [Member] | Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 72,000 | 72,000 |
Wechat Official Account [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 99,584 | $ 99,584 |
INTANGIBLE ASSETS (Detail Narra
INTANGIBLE ASSETS (Detail Narrative) - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expenses | $ 36,899 | $ 28,600 |
LONG-TERM PREPAYMENT (Details N
LONG-TERM PREPAYMENT (Details Narrative) - USD ($) | 1 Months Ended | |
Nov. 30, 2019 | Sep. 30, 2019 | |
Youall Perform Services Ltd | ||
Software upgrade agreement | $ 128,000 | |
Long-term prepayment for upgrade | $ 108,800 | |
Lushang Copyright | ||
Movie copyright acquisition cost | $ 256,000 | |
Payments made for movie copyrights | 256,000 | |
Qi Qing Kuai Che Copyright | ||
Movie copyright acquisition cost | 115,200 | |
Payments made for movie copyrights | $ 64,000 |
CONVERTIBLE NOTE - (Details)
CONVERTIBLE NOTE - (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Aug. 31, 2019 | |
Accounting Policies [Abstract] | ||
Balance | $ 86,831 | |
Principal | 75,000 | |
Discount on Note issuance | (6,500) | |
Accrued interest expense | 247 | |
Derivative liability | $ 18,084 |
CONVERTIBLE NOTE (Details Narra
CONVERTIBLE NOTE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2019 | Nov. 18, 2019 | Aug. 31, 2019 | |
Original issue discount | $ 229,120 | |||
Risk-free interest rate | 1.62% | |||
Expected volatility | 72.40% | |||
Dividends | $ 0 | |||
Remaining term of note | 8 months 19 days | |||
Marketability discount | 35.00% | |||
EMA Financial, LLC | ||||
Convertible note, principal amount | $ 250,000 | |||
Convertible note, interest rate | 10.00% | |||
Term of note | 9 months | |||
Net proceeds from note | $ 228,333 | |||
Original issue discount | 21,667 | |||
Outstanding principal amount | $ 75,000 | |||
Holder consideration | 68,500 | |||
Cash received from note | 64,737 | |||
Legal expenses and due diligence fees | $ 3,763 | |||
Interest rate, upon default | 24.00% | |||
Conversion terms | The conversion price shall equal the lower of: (i) the lowest closing price during the preceding 20 trading day period ending on the latest complete trading day prior to the Issue Date of this Note (the ?Closing Price?) or (ii) 55.0% of the lowest traded price for the common stock on the principal market during the 20 consecutive trading Days on which at least 100 shares of common stock were traded including and immediately preceding the Conversion Date. | |||
One day loss due to convertible feature | $ 18,084 |
OTHER PAYABLE (Details Narrativ
OTHER PAYABLE (Details Narrative) | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Payables and Accruals [Abstract] | |
Cloud hosting services due | $ 3,584 |
Unpaid balance of office renovation | $ 448 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Sep. 30, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Related party receivables | $ 22,115 | ||||
Total related party payable | $ 5,504 | ||||
Guangzhou Shengshituhua Film [Member] | |||||
Effective date of agreement | Jun. 1, 2017 | ||||
Term of agreement | 5 years | ||||
Patent license payment | $ 500,000 | ||||
Royalty percentage rate due | 20.00% | ||||
Royalty expenses | $ 15,360 | $ 14,848 | |||
Six Executives [Member] | |||||
Stock compensation paid | $ 42,623 | ||||
Chief Financial Officer [Member] | |||||
Stock compensation paid | $ 3,750 | ||||
Shares issued to officers as compensation | 100,000 | ||||
Chief Marketing Officer [Member] | |||||
Shares issued to officers as compensation | 10,000,000 | ||||
Chief Operational Officerr Member | |||||
Shares issued to officers as compensation | 10,000,000 | ||||
Youall Perform Services Ltd | |||||
Software upgrade agreement | $ 128,000 | ||||
Long-term prepayment for upgrade | $ 108,800 | ||||
Monthly premium paid to cosultant | 10.00% |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||
Jun. 30, 2019 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Jun. 17, 2019 | Jun. 01, 2019 | Jun. 06, 2018 | |
Stockholders Equity [Line Items] | |||||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ .001 | $ 0.001 | ||||
Common stock, shares issued for services value | $ 10,000 | ||||||||
Common stock, shares issued | 4,822,016 | 4,822,016 | 177,100,000 | 147,325,000 | |||||
Common stock, shares outstanding | 4,822,016 | 4,822,016 | 177,100,000 | 147,325,000 | |||||
Shareholders | 513 | 513 | |||||||
Reverse stock split | 50:1 | ||||||||
Chief Executive Officer [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Number of shares returned and cancelled | 20,200,000 | ||||||||
Chief Operational Officer [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Number of shares returned and cancelled | 10,200,000 | ||||||||
Consultant [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Number of shares returned and cancelled | 200,000 | ||||||||
Two Consultants [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 1,975,000 | ||||||||
Common stock, shares issued for services value | $ 59,250 | ||||||||
Nine Third-Party Consultants [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 3,300,000 | ||||||||
Common stock, shares issued for services value | $ 99,000 | ||||||||
Officers [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 20,100,000 | ||||||||
ChiefOperationalOfficerMember | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 10,000,000 | ||||||||
ChiefMarketingOfficerMember | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 10,000,000 | ||||||||
Chief Financial Officer [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 100,000 | ||||||||
Five Unrelated Parties [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 620,000 | 18,000,000 | |||||||
Common stock, shares issued for services value | $ 1,240,000 | $ 360,000 | |||||||
Common stock, shares issued, price per share | $ 2 | ||||||||
Three Unrelated Parties [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 13,000,000 | ||||||||
Common stock, shares issued for services value | $ 260,000 | ||||||||
Common stock, shares issued, price per share | $ 0.02 | ||||||||
Kangdi Liu [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 60,000 | 3,000,000 | |||||||
Bonus Media Investment [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 10,000,000 | ||||||||
Zesty Features Limited [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 3,000,000 | ||||||||
Common stock, shares issued for services value | $ 60,000 | ||||||||
Common stock, shares issued, price per share | $ 0.02 | ||||||||
Chiyuan Deng [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 20,000,000 | 600,000 | 14,000,000 | ||||||
Common stock, shares issued for services value | $ 1,480,000 | ||||||||
Common stock, shares issued, price per share | $ 2 | $ 0.02 | |||||||
All In One Media [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 100,000 | ||||||||
Anyone Pictures Limited [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 130,000 | ||||||||
StarEastNet [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 165,000 | ||||||||
Baoyu Chen | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, shares issued for services | 165,000 | ||||||||
Icrowdu Inc [Member] | |||||||||
Stockholders Equity [Line Items] | |||||||||
Number of shares returned for acquisition | 2,000,000 | ||||||||
Number of shares returned as consideration | 8,000,000 | ||||||||
Number of shares returned and cancelled | 40,600,000 | ||||||||
Reverse Split Effective Date | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||
Common stock, shares issued | 3,602,016 | ||||||||
Common stock, shares outstanding | 3,602,016 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Nov. 30, 2019 | Aug. 31, 2019 |
Deferred tax asset attributable to: | ||
Net operating loss carry over | $ 203,848 | $ 201,056 |
Less: valuation allowance | (203,848) | (201,056) |
Net deferred tax asset |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2019 | Aug. 31, 2018 | |
Income Taxes Details 1 | ||
Federal statutory tax rate | 21.00% | 21.00% |
Change in valuation allowance | (21.00%) | (21.00%) |
Effective tax rate | 0.00% | 0.00% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Income Taxes Details Narrative | |||
Valuation allowance for deferred tax assets | $ (203,848) | $ (201,056) | |
Hong Kong income tax rate | 16.50% | ||
NET INCOME (LOSS) | $ (63,354) | $ (228,554) |
CONCENTRATION RISK (Details Nar
CONCENTRATION RISK (Details Narrative) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Risks and Uncertainties [Abstract] | ||
Percent revenue from major customer | 49.00% | 100.00% |
Percent receivable from major customer | 100.00% | 100.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2019 |
Accounting Policies [Abstract] | ||||
Future lease commitments | $ 54,630 | $ 87,245 | $ 87,245 | |
Total future lease commitments | $ 229,120 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Accounting Policies [Abstract] | |||
Rental expense | $ 20,045 | $ 0 | |
Total future lease commitments | $ 229,120 | ||
Lease commitment due within one year | $ 87,245 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Jan. 08, 2020 | Dec. 31, 2019 | Dec. 19, 2019 | Dec. 18, 2019 | Dec. 09, 2019 |
Aura Blocks Limited [Member] | |||||
Payment on movie copyright acquisition | $ 51,200 | ||||
Peak One Opportunity Fund, L.P. | |||||
Convertible promissory note, principal amount | $ 85,000 | ||||
Proceeds on sale of investment | $ 65,312 | ||||
Cashless warrant, term | 5 years | ||||
Warrant, shares | 10,000 | ||||
Warrant, exercise price | $ 0.10 | ||||
Auctus Fund, LLC | |||||
Convertible promissory note, principal amount | $ 75,000 | ||||
Proceeds on sale of investment | $ 59,250 | ||||
Crown Bridge Partners, LLC | |||||
Convertible promissory note, principal amount | $ 121,500 | ||||
Proceeds on sale of investment | $ 35,000 |