Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended November 30, 2023
☐	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from __________ to__________
	Commission File Number: 000-55979

AB International Group Corp.

(Exact name of registrant as specified in its charter)

Nevada	37-1740351
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
144 Main Street, Mt. Kisco, NY 10549
(Address of principal executive offices)
(914) 202-3108
(Registrant’s telephone number)
_______________________________________________________
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[X] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such fi les). [X] Yes [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☐ Large accelerated filer	☐ Accelerated filer
☒ Non-accelerated Filer	☒ Smaller reporting company
	☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [X] No

State the number of shares outstanding for each of the issuer’s classes of common stock, as of the latest practicable date: 2,567,226,432 common shares as of January 11, 2024.

Table of Contents

TABLE OF CONTENTS
		Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements (Unaudited)	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	9
Item 4:	Controls and Procedures	9
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	11
Item 1A:	Risk Factors	11
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	11
Item 3:	Defaults Upon Senior Securities	11
Item 4:	Mine Safety Disclosures	11
Item 5:	Other Information	11
Item 6:	Exhibits	11

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our unaudited consolidated financial statements included in this Form 10-Q are as follows:

F-1	Consolidated Balance Sheets as of November 30, 2023 and August 31, 2023 (unaudited);
F-2	Consolidated Statements of Operations for the three months ended November 30, 2023 and 2022 (unaudited);
F-3	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended November 30, 2023 and 2022 (unaudited);
F-4	Consolidated Statements of Cash Flows for the three months ended November 30, 2023 and 2022 (unaudited); and
F-5	Notes to Consolidated Financial Statements (unaudited)

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AB INTERNATIONAL GROUP CORP.

Consolidated Balance Sheets

(Unaudited)

	November 30,			August 31,
	2023			2023

ASSETS
Current Assets
Cash and cash equivalents	$	261,087		$	117,096
Accounts receivable		57,000			—
Total Current Assets		318,087			117,096

Property and equipment, net		7,146			8,254
Right of use operating lease assets, net		646,034			696,380
Intangible assets, net		1,639,090			1,455,110
Purchase deposits for intangible assets, non-current		—			300,000
Security deposit		46,006			45,240
TOTAL ASSETS	$	2,656,363		$	2,622,080

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	335,348		$	156,763
Accounts payable and accrued liabilities - related party		6,388			6,388
Loan from related parties		543,266			748,285
Current portion of obligations under operating leases		230,712			211,507
Total Current Liabilities		1,115,714			1,122,943

Obligations under operating leases, non-current		547,182			608,149
Total Liabilities		1,662,896			1,731,092

Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized;
Series A preferred stock, 100,000 and 100,000 shares issued and outstanding, as of November 30, 2023 and August 31, 2023, respectively		100			100
Series B preferred stock, 20,000 and 20,000 shares issued and outstanding, as of November 30, 2023 and August 31, 2023, respectively		20			20
Series C preferred stock, 0 and 174,421 shares issued and outstanding, as of November 30, 2023 and August 31, 2023, respectively		—			175
Series D preferred stock, 0 and 0 shares issued and outstanding, as of November 30, 2023 and August 31, 2023, respectively		—			—
Common stock, $0.001 par value, 10,000,000,000 shares authorized; 2,566,965,321 and 1,285,283,385 shares issued and outstanding, as of November 30, 2023 and August 31, 2023, respectively		2,566,965			1,285,283
Additional paid-in capital		10,770,780			11,993,408
Accumulated deficit		(12,344,398	)		(12,387,998	)
Total Stockholders’ Equity		993,467			890,988
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,656,363		$	2,622,080

The accompanying notes are an integral part of these financial statements.

F-1

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AB INTERNATIONAL GROUP CORP.

Consolidated Statements of Operations

(Unaudited)


	Three months ended
	November 30,
	2023			2022

REVENUE
Copyrights and license	$	714,288		$	180,000
Theatre admissions and food and beverage sales		87,459			56,812
Total revenue		801,747			236,812

OPERATING COSTS AND EXPENSES
Amortization expenses		(511,809	)		(923,499	)
Theatre operating costs		(41,355	)		(22,404	)
General and administrative expenses		(261,692	)		(424,513	)
Related party salary and wages		(15,049	)		(70,500	)
Total Operating Costs And Expenses		(829,905	)		(1,440,916	)

Loss From Operations		(28,158	)		(1,204,104	)

OTHER INCOME
Interest income		637			79
Interest expense – related party		(13,879	)		—
Other income		85,000			—
Total Other Income		71,758			79

Income (Loss) Before Income Tax Benefit		43,600			(1,204,025	)

Income tax provision		—			—
NET INCOME (LOSS)	$	43,600		$	(1,204,025	)
Preferred shares dividend expense		—			(5,765	)

NET INCOME (LOSS) AVAILABLE TO COMMON STOCK HOLDERS	$	43,600		$	(1,209,790	)

NET INCOME (LOSS) PER SHARE: BASIC	$	0.00		$	(0.00	)
NET INCOME (LOSS) PER SHARE: DILUTED	$	0.00		$	(0.00	)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC		1,988,356,325			481,889,485
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED		2,008,456,325			481,889,485

The accompanying notes are an integral part of these financial statements.

F-2

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AB INTERNATIONAL GROUP CORP.

Consolidated Statements of Changes in Stockholders' Equity

(Unaudited)


	Common Stock				Preferred Stock
	Number of Shares		Amount		Number of Shares			Amount			Additional Paid-in Capital			Accumulated Deficit			Unearned Compensation			Total Equity

Balance - August 31, 2022		384,512,583	$	384,512		455,850		$	456		$	12,636,838		$	(8,789,901	)	$	(209,957	)	$	4,021,948
Issuance of common shares		200,000,000		200,000		—			—			(53,525	)		—			—			146,475
Preferred shares series C issuance		—		—		90,275			90			68,910			—			—			69,000
Preferred shares series C converted into common shares		75,037,786		75,038		(96,075	)		(96	)		(74,942	)		—			—			—
Dividend in connection with Preferred shares series C		—		—		—			—			5,764			—			—			5,764
Common shares issued to officers for services		—		—		—			—			—			—			82,800			82,800
Net loss		—		—		—			—			—			(1,209,790	)		—			(1,209,790	)
Balance - November 30, 2022		659,550,369	$	659,550		450,050		$	450		$	12,583,045		$	(9,999,691	)	$	(127,157	)	$	3,116,197

Balance - August 31, 2023		1,285,283,385	$	1,285,283		294,421		$	295		$	11,993,408		$	(12,387,998	)	$	—		$	890,988
Issuance of restricted common shares to officer for service		225,000,000		225,000		—			—			(180,000	)		—			—			45,000
Preferred shares series C converted into common shares		1,056,681,936		1,056,682		(174,421	)		(175	)		(1,056,507	)		—			—			—
Imputed Interest		—		—		—			—			13,879			—			—			13,879
Net income		—		—		—			—			—			43,600			—			43,600
Balance – November 30, 2023		2,566,965,321	$	2,566,965		120,000		$	120		$	10,770,780		$	(12,344,398	)	$	—		$	993,467

The accompanying notes are an integral part of these financial statements.

F-3

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AB INTERNATIONAL GROUP CORP.

Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended
	November 30,
	2023			2022

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	43,600		$	(1,209,790	)
Adjustments to reconcile net income (loss) to net cash generated from (used in) operating activities:
Executive salaries and consulting fees paid in stock		—			82,800
Depreciation of fixed asset		1,108			1,116
Amortization of intangible asset		511,809			923,499
Gain from sales of software in progress		(85,000	)
Imputed interest on officer loan		13,879			—
Non-cash dividend expense for preferred shares		—			5,764
Non-cash lease expense		8,584			8,584
Changes in operating assets and liabilities:
Accounts receivable		(57,000	)		(60,000	)
Prepaid expenses		—			3,555
Rent security & electricity deposit		(766	)		—
Purchase of movie and TV series broadcast right and copyright		(695,789	)		(243,276	)
Accounts payable and accrued liabilities		223,585			270,733
Accounts payable and accrued liabilities – related party		—			(5,127	)
Deferred revenue		—			—
Net cash used in operating activities		(35,990	)		(222,142	)

CASH FLOWS FROM FINANCING ACTIVITIES
Loan from related parties		179,981			1,184
Proceeds from common stock issuances		—			87,975
Proceeds from preferred share C issuances		—			69,000
Net cash provided by financing activities		179,981			158,159

Net increase (decrease) in cash and cash equivalents		143,991			(63,983	)
Cash and cash equivalents – beginning of period		117,096			84,223
Cash and cash equivalents – end of period	$	261,087		$	20,240

Supplemental Cash Flow Disclosures
Cash paid for interest	$	—		$	—
Cash paid for income taxes	$	—		$	—

Non-Cash Investing and Financing Activities:
Settlement of accrued CEO salaries with common stock	$	45,000		$	—
Net off purchase deposit with loan from related parties for sales of software	$	300,000			—
Transfer from purchase deposit to intangible assets	$	—		$	356,724
Subscription receivable for common stock issuance	$	—		$	58,500

The accompanying notes are an integral part of these consolidated financial statements.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 – BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of AB International Group Corp. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities Exchange Commission. Certain information and footnote disclosures normally included in consolidated financial statements have been omitted pursuant to such rules and regulations. The consolidated balance sheet as of August 31, 2023 derived from the audited consolidated financial statements at that date, but does not include all the information and footnotes required by GAAP. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2023.

The unaudited consolidated financial statements as of and for the three months ended November 30, 2023 and 2022, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition, results of operations and cash flows. The results of operations for the three months ended November 30, 2023 and 2022 are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The financial statements have been prepared on a consolidated basis, with the Company’s wholly owned subsidiary App Board Limited and AB Cinemas NY, Inc. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.

Accounts receivable

Accounts receivable is presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. No allowance was recorded for the three months ended November 30, 2023 and 2022.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Foreign Currency Transactions

The financial risk arises from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Gains and losses from translation of foreign currency into U.S. dollars are included in current results of operations.

Prepayments

Prepayments primarily consist of payments made to acquire the copyrights and distribution rights of movies, TV shows and music, etc. Prepayments are classified as either current or non-current based on the nature and the terms of the respective agreements. These prepayments are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. Prepayments are written off against the allowances only after exhaustive collection efforts. No allowance was recorded for the three months ended November 30, 2023 and 2022.

Property and Equipment, net

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvement is related to the enhancements paid by the Company to leased offices. Leasehold improvement represents capital expenditures for direct costs of renovation or acquisition and design fees incurred. The amortization of leasehold improvements commences once the renovation is completed and ready for the Company’s intended use.

The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

		Estimated Useful Life
Furniture		7 years
Appliances		5 years
Leasehold improvement		Lesser of useful life and lease term

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations in other income or expenses.

Intangible Assets

Intangible assets are recorded at the lower of cost or estimated fair value and amortized as follows:

	•	Movie copyrights and broadcast rights: straight-line method over the estimated life of the asset, which has been determined by management to be 2 years
	•	NFT MMM platform: straight-line method over the estimated life of the asset, which has been determined by management to be 2 years

Amortized costs of the intangible asset are recorded as amortization expenses in the consolidated statements of operations.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Lease property under operating lease

The Company adopted ASU No. 2016-02—Leases (Topic 842) since June 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact the Company’s consolidated net earnings and cash flows.

Impairment of Long-lived asset

The Company evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350. Such impairment test compares the fair values of assets with their carrying values with an impairment loss recognized when the carrying values exceed fair values. For long-lived assets and intangible assets with finite lives that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Impairment losses are included in the general and administrative expense. There was no impairment loss during the three months ended November 30, 2023 and 2022, respectively.

Revenue Recognition

The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company derives its revenues primarily from four sources: (1) selling copyrights of movies or TV shows; (2) licensing NFT MMM platform and providing technical service; (3) movie theater admissions and food and beverage sales; (4) embedded marketing service.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue Recognition (continued)

Revenue from selling copyrights of movies or TV shows:

The Company recognizes revenue when master copy of movie or TV show is delivered, the IP is authorized and transferred to customers. The Company’s contracts with customer are primarily on a fixed-price basis and do not contain cancelable and refund-type provisions.

Revenue from licensing NFT MMM platform and providing technical service fee:

The Company derives revenue from NFTMM platform license fees, which includes accessing the NFTMM platform and platform data on both app and website. In accordance with ASC 606, a 'right to access' license is recognized over the license period. Initial technical service fee comprises of installation, implementation and necessary training required by the customer. These services fees are recognized as the services are delivered at a point in time.

Revenue from movie theater admissions and food and beverage sales:

The Company recognizes admissions and food and beverage revenues based on a gross transaction price which are recorded at a point in time when a film is exhibited to a customer and when a customer takes possession of food and beverage offerings. The Company defers 100% of the revenue associated with the sales of gift cards and exchange tickets until such time as the items are redeemed or estimated income from non-redemption is recorded.

Revenue from embedded marketing service:

The Company derives revenue from providing the services of embedded marketing through adding advertisement into movies and TV series. The Company recognizes revenue when the advertisement is added to the movies and TV series.

Contract Assets and Liabilities

Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs.

As of November 30, 2023 and August 31, 2023, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheets.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue Recognition (continued)

Disaggregation of revenue

The Company disaggregates its revenue from contracts by revenue streams, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors.

The following table presents sales by revenue streams for the three months ended November 30, 2023 and 2022, respectively:

	November 30, 2023		November 30, 2022
Copyrights sales	$	531,800	$	—
Embedded marketing service		125,488		—
NFT licenses		57,000		180,000
Theatre admissions		57,824		36,162
Food and beverage sales		29,635		20,650
Total revenue	$	801,747	$	236,812

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.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The carrying values of cash, accounts payable, and accrued liabilities approximate fair value due to their short-term nature. The fair values of warrant liabilities and derivative liabilities embedded in convertible notes are determined by level 3 inputs.

No liabilities measured at fair value on a recurring basis as of November 30, 2023 and August 31, 2023.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basic and Diluted Earnings (Loss) Per Share

The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of November 30, 2023, the total number of warrants outstanding was 50,000,000 (See Note 10). No warrants were included in the diluted earnings per share as they would be anti-dilutive. The Series A and B preferred stocks were included in the diluted earnings per share as they would be dilutive.

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation.

Warrants

Warrants are classified as equity and the proceeds from issuing warrants in conjunction with convertible notes are allocated based on the relative fair values of the base instrument of convertible notes and the warrants by following the guidance of ASC 470-20-25-2.

Proceeds from the sale of a debt instrument with stock purchase warrants (detachable call options) shall be allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portion of the proceeds so allocated to the warrants shall be accounted for as paid-in capital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction. This usually results in a discount (or, occasionally, a reduced premium), which shall be accounted for as interest expense under Topic 835 Interest.

Income Taxes

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred income taxes assets and liabilities are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Share-Based Compensation

The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee share-based awards. For employee share-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award.

Recent Accounting Pronouncements

In October 2021, the FASB issued ASU No. 2021-08, “‘Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements.

In June 2022, the FASB issued ASU No. 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions," which clarifies and amends the guidance of measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of the equity securities. The guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. The Company does not expect the adoption to have a material impact on the consolidated financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of operations and statements of cash flows.

NOTE 3 – GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

As of November 30, 2023, the Company had an accumulated deficit of approximately $12.3 million and a working capital deficit of approximately $0.8 million. For the three months ended November 30, 2023, the net cash used in operating activities was approximately $36,000. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

These factors, among others, raise the substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 4 – ACCOUNTS RECEIVABLE

Accounts receivable is cash not yet collected from the third party for the revenue generated from NFT MMM platform. As of November 30, 2023, the accounts receivable balance was $57,000. The amount was subsequently received in December 2023.

NOTE 5 – PROPERTY AND EQUIPMENT

The Company capitalized the renovation cost as leasehold improvement and the cost of furniture and appliances as fixed asset. Leasehold improvement relates to renovation and upgrade of the leased office.

The depreciation expense was $1,108 and $1,116 for the three months ended November 30, 2023 and 2022, respectively.

As of November 30, 2023 and August 31, 2023, the balance of property and equipment was as follows:

	November 30, 2023			August 31, 2023
Leasehold improvement	$	146,304		$	146,304
Appliances and furniture		25,974			25,974
Total cost		172,278			172,278
Accumulated depreciation		(165,132	)		(164,024	)
Property and equipment, net	$	7,146		$	8,254

NOTE 6 – INTANGIBLE ASSETS

As of November 30, 2023 and August 31, 2023, the balance of intangible assets was as follows:

	November 30, 2023			August 31, 2023
Movie copyrights - Love over the world	$	853,333		$	853,333
Sitcom copyrights - Chujian		640,000			640,000
Movie copyrights - A story as a picture		422,400			422,400
Movie copyrights - Our treasures		936,960			936,960
Movie broadcast right- On the way		256,000			256,000
Movie copyrights - Too simple		1,271,265			1,271,265
Movie copyrights - Confusion		1,024,000			1,024,000
Movie copyrights - Amazing Data		300,000			300,000
Movie copyrights - Nice to meet you		300,000			300,000
Movie copyrights 6 – movies		695,789			—
TV drama copyright - 20 episodes		295,000			295,000
Movie broadcast rights 59 – movies		2,439,840			2,439,840
NFT MMM platform		280,000			280,000
Total cost		9,714,587			9,018,798
Accumulated amortization		(8,075,497	)		(7,563,688	)
Intangible assets, net	$	1,639,090		$	1,455,110

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – INTANGIBLE ASSETS (continued)

The amortization expense for the three months ended November 30, 2023 and 2022 was $511,809 and $923,499, respectively. Estimated future amortization expense is as follows:

Twelve months ending November 30,	Amortization expense
2024	$	1,332,847
2025		306,243
Total	$	1,639,090

In March 2022, the Company signed a purchase agreement with All In One Media Ltd to acquire the copyrights and broadcast rights for five movies at a price of $1,500,000. These copyrights and broadcast rights allow the Company to broadcast these movies outside the mainland China. On November 29, 2022, both parties entered into an amended agreement to deliver the copyrights and broadcast rights of two movies (Amazing data and Nice to meet you) to the Company on November 30, 2022 for a total price of $600,000. As of August 31, 2022, $356,724 was paid and recorded as purchase deposit for intangible asset. On November 30, 2022, the company received the copies of two movies. The purchase deposit of $356,724 was transferred to intangible assets and the unpaid balance of $243,276 was recorded as accounts payable and was paid in December 2022. Per amended agreement, the remaining three movies will be delivered upon receiving the payment of minimum $300,000 per movie from the Company before December 31, 2022. The agreement was terminated on December 31, 2022 due to the fact that the Company did not make the payments for the remaining movies.

In March 2022, the Company signed a purchase agreement with Anyone Pictures Limited to acquire the copyright for broadcasting a 25-episode TV drama series outside of mainland China, at a price of $525,000. Five standalone episodes were delivered in December 2022. On February 21, 2023, both parties entered into a supplementary agreement to determine the delivery of the remaining 20 standalone episodes. As a result, Anyone Pictures Limited agreed to refund $420,000 to the Company and the Company had received the full amount as of August 31, 2023.

On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFT MMM platform and platform data on both app and website for one year starting from August 20, 2022 for a monthly license fee of $60,000. Subsequent to the license renewal on November 1, 2023, the Company would continue licensing the NFT MMM platform to the same third party from November 1, 2023 until October 31, 2025 for a monthly license fee of $57,000. The Company remains the ownership and copyright of the NFT MMM platform, including the APP “NFT MMM” on Google Play, and the website: starestnet.io. For the three months ended November 30, 2023 and 2022, the Company recognized license revenue of $57,000 and $180,000, respectively.

On September 10, 2023, the Company entered into an agreement with All In One Media Ltd to acquire the copyrights for 4 movies at a price of $104,714. These copyrights allow the Company to transfer these movies to other parties outside the mainland China. On November 27, 2023, the Company further acquired mainland China copyrights of there 4 movies from All In One Media Ltd. at price of $378,513.

On September 30, 2023, the Company entered into another agreement with All In One Media Ltd to acquire the copy rights and broadcast rights for 2 movies for a price of $212,562. These copyrights allow the Company to broadcast these movies globally.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – INTANGIBLE ASSETS (continued)

In November 2023, the Company entered into an agreement with Anyone Pictures Limited to sell the Mainland China copyrights of 1 movie for a price of $180,000 and the offline broadcast rights of another movie for a price of $211,800. The granted broadcast rights are globally exclusive, with the exception of Mainland China.

On November 21, 2023, the Company entered into an agreement with Capitalive Holdings Limited to sell offline broadcast rights of 1 movie for a price of $140,000. The granted broadcast rights are globally exclusive, with the exception of Mainland China.

NOTE 7 – LEASES

In September 2023, the Company entered into a one month lease with a third party for an office space in Hong Kong, incurring a monthly rent of $766. The lease was ceased as of November 30, 2023.

On October 21, 2021, the Company signed a lease agreement to lease “the Mt. Kisco Theatre”, a movie theater, for five years plus the free rent period which commences four months from the lease commencement date. The theatre consists of approximately 8,375 square feet, and the total monthly rent is $14,366 for the first two years, and $20,648 for the third year including real estate related taxes and landlord’s insurance.

Total lease expense for the three months ended November 30, 2023 and 2022 was $52,449 and $68,771, respectively. All leases are on a fixed payment basis. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following is a schedule of maturities of lease liabilities:

Twelve months ending November 30,
2024	$	235,208
2025		251,748
2026		256,642
2027		42,910
Total future minimum lease payments		786,508
Less: imputed interest		(8,614	)
Total	$	777,894

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 8 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

The balance of purchase deposits for intangible assets which relates to the acquisition of copyrights and broadcast rights for movies and TV dramas and software was as follows:

	November 30, 2023		August 31, 2023

Purchase deposit for software	$	—	$	300,000
Total purchase deposits for intangible assets	$	—	$	300,000

On June 8, 2023, the Group has entered into software development contract for the creation of the streaming software designed for use on both the website and mobile applications. Pursuant to the contract’s terms, the Developer is contractually obliged to deliver the software by September 8, 2024, which corresponds to the upcoming 15-month period. The costs of the software amounts to $1,500,000. As of August 31, 2023, the Group has remitted an initial payment of $300,000 to the Developer. On November 28, 2023, both parties entered into an amended agreement to sell the software-in-progress to the Developer for $385,000. The amount was received through Zestv Studios Limited as of November 30, 2023 and used to reduce the amount of loan from CEO (see Note 9). The Company recognized a gain on the sales of software of $85,000.

NOTE 9 – RELATED PARTY TRANSACTIONS

Loan from related parties

In support of the Company’s efforts and cash requirements, it may rely on advances from stockholders until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. On June 1, 2023, Chiyuan Deng, the Chief Executive Officer, as the Company stockholders, entered into a line of credit agreement with the Company. Chiyuan Deng agreed to provide a line of credit to the Company for a total amount of no more than $1,500,000, including the previous shareholder loan balance of $697,281. The amount under this line of credit is non-interest bearing and due on demand starting from June 1, 2023. As of November 30, 2023 and August 31, 2023, the Company has recognized an imputed interest at 5% per annum of the balances. As of November 30, 2023 and August 31, 2023, the Company had loan from Chiyuan Deng balance of $543,266 and $748,285.

Accounts payable and accrued liabilities - related party - Youall Perform Services Ltd.

Youall Perform Services Ltd is owned by Jianli Deng, the former Chief Financial Officer. In September 2019, the Company entered into an agreement with Youall Perform Services Ltd for two transactions. 1) The Company pays Youall Perform Services Ltd. 10% of the revenue generated from the “Ai Bian Quan Qiu” platform every month to reimburse the valued-added tax, tax surcharges, and foreign transaction fee Youall Perform Services Ltd. has been paying on behalf of the Company. 2) 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 there has been no revenue from the “Ai Bian Quan Qiu” platform due to COVID-19 since mid-January, 2020, $108,800 prepayment was expensed as research and development expense in FY2020. In July 2020, the Company changed the service scope of this agreement and turned it into a two-year website maintenance contract to maintain the website ABQQ.TV which was launched on December 29, 2020. The website maintenance service began on January 1, 2021 and will end on December 31, 2022. The contract amount remains to be $128,000, out of which $108,800 was previously paid and $19,200 was scheduled to be due on the twenty first month of service term. During the year ended August 31, 2023, the Company made payment of $12,812 with the accounts payable – related party balance to Youall Perform Services Ltd of $6,388 as of August 31, 2023. As of November 30, 2023, the related party balance to Youall Perform Services Ltd was $6,388.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 9 – RELATED PARTY TRANSACTIONS (continued)

Accounts payable and accrued liabilities – related party - Zestv Studios Limited

On December 1, 2020, the Company entered an agreement with Zestv Studios Limited, a Hong Kong entity 100% owned by Chiyuan Deng, the Chief Executive Officer, to grant Zestv Studios Limited the distribution right for the movie “Love over the world” and charge Zestv Studios Limited movie royalties. The Company’s royalty revenue is stipulated to equal 43% of the after-tax movie box office revenue deducting movie issuance costs. The movie box office revenue is tracked by a movie distributor Huaxia Film Distribution Co. Ltd (hereafter “Hua Xia”) in China as it connects with all movie theaters in China and can track the total movie box office revenue online in real time. Although Zestv Studios Limited has paid royalty revenue to the Company, Zestv Studios Limited failed to collect cash from Hua Xia. As of August 31, 2021, the Company had refund payable of $916,922 for the movie royalty revenue net of the movie distribution commission fee to Zestv Studios Limited.

On June 23, 2022, the Company sold the mainland China copyright and broadcast right of the movie “Too Simple” to Zestv Studios Limited for a price of $750,000. The Company remains to have all copyright of outside of mainland China. The Company used this proceed to off-set the refund payable balance to Zestv Studios Limited with additional payment of $151,795 during the year ended August 31, 2022. The Company made payments of $5,127 during the 3 months ended November 30, 2022 and $10,000 during the 3 months ended February 28, 2023.

On November 28, 2023, the Company sold the software-in-progress to the Developer for $385,000. Zestv Studios Limited collected the payment on behalf of the Company. The payment of $385,000 reduced the loan from related parties as of November 30, 2023 (See Note 8).

The Company also rented an office space from Zestv Studios Limited. The lease was early terminated on August 31, 2023 (See Note 7). For the three months ended November 30, 2023 and 2022, the Company incurred related party office rent expense of $0 and $16,512, respectively.

As of November 30, 2023 and August 31, 2023, the Company had $0 payable to Zestv Studios Limited.

Executives’ salaries

On September 11, 2020 and May 24, 2022, the Company entered into two amended employment agreements with Chiyuan Deng, the Chief Executive Officer. Pursuant the amended agreements, the Company amended the compensation to Mr. Deng to include a salary of $180,000 annually, a reduction in common stock received under his initial employment agreement, a potential for a bonus in cash or shares, and the issuance of 100,000 shares of Series A Preferred Stock at par value $0.001. Mr. Deng returned 266,667 shares common stock to the Company received under his initial employment agreement. The Chief Executive Officer opted to forgo his salaries effective from October 2023.

During the three months ended November 30, 2023, the Company incurred total compensation of $15,049 for the Chief Executive Officer. During the three months ended November 30, 2022, the Company incurred total compensation of $51,000 for Chief Executive Officer and Chief Financial Officer. The Company also incurred total compensation of $0 and $19,500, respectively, for Chief Investment Officer during the three months ended November 30, 2023 and 2022.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 10 – STOCKHOLDERS’ EQUITY

Common shares

The Company had the following activities for the three months ended November 30, 2023:

Issuance of restricted common shares

On October 5, 2023, the Board of Directors resolved to issue 225,000,000 shares of the Company’s restricted common stock, par value $0.001 per share, to Chiyuan Deng, the Chief Executive Officer, to pay off his accrued executive salaries of $45,000.

Conversion of Series C preferred shares to common shares

During the three months ended November 30, 2023, the Company issued total 1,056,681,936 common shares as the result of the conversion of total 174,421 Series C preferred shares.

Reverse Stock split

As previously disclosed in the Company’s Form 10-Q for the quarter ended May 31, 2023, on June 12, 2023, the Board of Directors approved a reverse split for the Company’s issued and outstanding common stock, at a ratio of 1 share for every 10,000 shares, contingent upon receiving a market effectiveness date from FINRA.

On September 8, 2023, however, the Board of Directors decided to cancel the company's upcoming 10,000 to 1 reverse split. The Board of Directors decided it would not be in the best interest of the stockholders or the Company to execute a reverse split at this time. The Company plans to inform FINRA that it will not be moving forward with the reverse split and will withdraw its application.

The Company had the following activities for the three months ended November 30, 2022:

Increasing authorized number of common shares

On October 11, 2022, the Company filed amendment to Articles of Incorporation to increase the authorized number of common shares from 1,000,000,000 shares to 10,000,000,000 shares. This increasing of authorized number of common shares has been retroactively reflected in the consolidated financial statements and notes thereto.

Conversion of Series C preferred shares to common shares

During the three months ended November 30, 2022, the Company issued total 75,037,786 common shares as the result of the conversion of total 96,075 Series C preferred shares.

Subscription of Common shares

On August 2, 2022, the Company entered into a common stock purchase agreement with Alumni Capital LP, a Delaware limited partnership. Pursuant to the agreement, Alumni Capital LP shall purchase $1.0 million of common stocks as per the Company’s discretions after a Registration Statement is declared effective by the Securities and Exchange Commission. The purchase price is number of common stocks in a Purchase Notice issued by the Company multiplied by 75% of the lowest traded price of the Common Stock five Business Days prior to the Closing, which is no later than five business days after the Purchase Notice Date.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 10 – STOCKHOLDERS’ EQUITY (continued)

Common shares (continued)

Subscription of Common shares (continued)

The Company plans to use the proceeds from the sale of the common stocks for general corporate and working capital purposes and acquisitions or assets, businesses or operations or for other purposes that the Board of Directors, in good faith deem to be in the best interest of the Company. The registration of these securities was effective on September 13, 2022.

Pursuant to this agreement, during the three months ended November 30, 2022, Alumni Capital LP subscribed total of 200,000,000 common shares for total proceeds of $146,475, of which $87,975 was received in the three months ended November 30, 2022 and $58,500 was received by the Company in December 2022.

A summary of the status of the Company’s warrants as of November 30, 2023 and August 31, 2023 is presented below.

	Number of warrants
	Original shares issued		Anti-dilution Adjusted
Warrants as of August 31, 2022		50,000,000		—
Warrants granted during the year		—		—
Warrants as of August 31, 2023		50,000,000		—
Warrants granted during the three months		—		—
Exercisable as of November 30, 2023		50,000,000		—

Preferred shares

The Company had the following activities for the three months ended November 30, 2023:

During the three months ended November 30, 2023, the Company converted a total 174,421 Series C preferred shares into common shares.

On November 30, 2023, the Board of Directors of the Company resolved to withdraw and subsequently cancelled the Amended Certificate of Designation for the Company’s Series C and Series D Preferred shares (see Note 15).The Company had the following activities for the three months ended November 30, 2022:

On September 6, 2022, the Company entered into a securities purchase agreement with an accredited investor, whereby investor purchased from the Company 90,275 shares of Series C Convertible Preferred Stock of the Company for a gross proceed of $78,500. After deduction of transaction-related expenses, net proceed to the Company was $69,000. The Company intends to use the proceeds from the Preferred Stock for general working capital purposes.

The Company recorded dividend expenses of $5,765 on Series C and D Preferred shares for the three months ended November 30, 2022.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 11 – INCOME TAXES

The Company and its fully owned subsidiary, AB Cinemas NY, Inc, were incorporated in the United States and are subject to a statutory income tax rate at 21%. The Company’s fully owned subsidiary, App Board Limited, was registered in Hong Kong and is subject to a statutory income tax rate at 16.5%.

As of November 30, 2023 and August 31, 2023, the components of net deferred tax assets, including a valuation allowance, were as follows:

	November 30, 2023			August 31, 2023
Deferred tax asset attributable to:
Net operating loss carry over	$	2,068,057		$	2,077,213
Less: valuation allowance		(2,068,057	)		(2,077,213	)
Net deferred tax asset	$	—		$	—

The valuation allowance for deferred tax assets was $2,068,057 and $2,077,213 as of November 30, 2023 and August 31, 2023, respectively. 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, 2023 and August 31, 2023.

Reconciliation between the statutory rate and the effective tax rate is as follows for the three months ended November 30, 2023 and 2022:


	Three months ended
	November 30,
	2023			2022
Federal statutory tax rate		21	%		21	%
Change in valuation allowance		(21	%)		(21	%)
Effective tax rate		0	%		0	%

During the three months ended November 30, 2023, the Company and its subsidiaries generated net income. As a result, the Company and its subsidiaries utilized the tax losses for the three months ended November 30, 2023.

During the three months ended November 30, 2022, the Company and its subsidiaries incurred net losses. As a result, the Company and its subsidiaries did not incur any income tax for the three months ended November 30, 2022.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 12 – CONCENTRATION RISK

Concentration

For the three months ended November 30, 2023 and 2022, 49% and 76% of the total revenue was generated from one customer, respectively.

As of November 30, 2023, one customer accounted for 100% of the Company’s accounts receivable balance, respectively. There was no accounts receivable balance as of August 31, 2023.

Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of November 30, 2023 and August 31, 2023, cash balance of $236,819 and $92,972, respectively, were maintained at financial institutions in Hong Kong, and were subject to credit risk. In the US, the insurance coverage of each bank is $250,000. As of November 30, 2023 and August 31, 2023, cash balance of $24,268 and $24,124, respectively, were maintained at financial institutions in the US. While management believes that these financial institutions are of high credit quality, it also continually monitors their creditworthiness.

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Contingencies

From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. There is no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of its operations and there are no proceedings in which any of the Company’s directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Company’s interest.

Operating leases

The Company has several lease agreements to rent office spaces and movie theatre with its related party and third-party vendors. (See Note 7)

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 14 – SEGMENT INFORMATION

The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. As the result of business strategic changes, the Company has identified two reportable segments: Copyrights and license (“IP’) segment and cinema segment.

The following table presents summary information by segment for the three months ended November 30, 2023 and 2022, respectively.


	IP Segment						Cinema Segment					Total
	Three months ended						Three months ended					Three months ended
	November 30						November 30					November 30
	2023			2022			2023		2022			2023		2022
Revenue	$	714,288		$	180,000		$	87,459	$	56,812		$	801,747	$	236,812
Operating costs		—			—			41,355		22,404			41,355		22,404
Depreciation and Amortization		512,917			924,615			—		—			512,917		924,615
Interest expense (income)		13,242			(79	)		—		—			13,242		(79	)
Segment assets		2,632,394			5,126,491			23,969		16,612			2,656,363		5,143,103
Segment income (loss)	$	(16,144	)	$	(1,174,772	)	$	59,744	$	(35,018	)	$	43,600	$	(1,209,790	)

NOTE 15 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued.

Cancellation and Withdrawal of Series B, C, D Preferred Stock

On December 1, 2023, the Board of Directors of the Company has resolved to cancel and withdraw the Certificate of Designation for the Company’s Series B Preferred Stock. On December 1, 2023, the CEO cancelled the 20.000 shares of outstanding Series B Preferred shares issued to him. On December 1, 2023, the Company filed with the State of Nevada to withdraw the designation of the Company’s Series B, C, D Preferred Stock.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Overview

The Company was incorporated under the laws of the State of Nevada on July 29, 2013. The Company's fiscal year end is August 31.

We are an intellectual property (IP) and movie investment and licensing firm, focused on acquisitions and development of various intellectual property, including the acquisition and distribution of movies. On June 1, 2017 we have a patent license to a video synthesis and release system for mobile communications equipment, in which the technology is the subject of a utility model patent in the People's Republic of China. Our License to the Technology generates revenue through sub-license monthly fees from a smartphone app on Android devices. This smartphone app was already existing and licensed at the time we acquired the Technology of video synthesis. In January, 2021, our sublicensing agreement with Licensee to generate revenues was terminated. As such, there has been no revenues generated from sub-licensing the Technology since the end of December, 2020. On February 2019, we launched a business application (Ai Bian Quan Qiu) through smartphones and official social media accounts utilizing Artificial Intelligence. It is a matching platform for performers, advertiser merchants, and owners for more efficient services. We previously generated revenues through an agency service fee from each matched performance. Due to the quarantine and continuous control imposed by the state and local governments in areas affected by COVID-19, merchant advertising events have been suspended for 7 months. The Company decided to suspend the Ai Bian Quan Qiu platform, which, at the time, created an adverse impact on the business and financial condition and hampered its ability to generate revenue and access sources of liquidity on reasonable terms. As a result, we decide to focus mainly the IP transactions and online video streaming.

On April 22, 2020, the Company announced the first phase development of its video streaming service. The online service will be marketed and distributed in the world under the brand name ABQQ.tv. The Company's professional team are sourcing such dramas and films to provide video streaming service on the ABQQ.tv. The video streaming website www.ABQQ.tv was officially launched on December 29, 2020. As of November 30, 2023, the Company acquired 73 movie copyrights and broadcast rights and 75 episodes of TV drama series. The Company will continue marketing and promoting the ABQQ.tv website through Google Ads and acquire additional broadcast rights for movies and TV series, and plan to charge subscription fees once the Company has obtained at least 200 broadcast rights of movie and TV series.

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On October 21, 2021, the Company entered into a Lease Agreement (the “Lease”) with Martabano Realty Corp. (the “Landlord”), pursuant to which the Company agreed to lease approximately 8,375 square feet of in what is known as the Mt. Kisco Theatre at 144 Main Street, Mount Kisco, New York. The term of the Lease is five years plus free rent period. Commencing in month four, the Company's monthly base rent obligation will be approximately $6,979, which amount will increase in year three to $13,260, year four at $13,658 and the final year at $14,067 in accordance with the terms of the Lease. The Lease contains customary provisions for real property leases of this type, including provisions allowing the Landlord to terminate the Lease upon a default by the Company.

The space was formerly used as a theatre with a total of 5 screens and 466 sets for screening films. The former theatre opened on December 21, 1962 with Hayley Millsin “In Search of the Castaways.” It was a replacement for the town’s other movie theatre that burned down. It was later twinned and further divided into 5 screens. It was operated for years by Lesser Theaters, then bought by Clearview Cinemas. In June, 2013 it was taken over by Bow-Tie Cinemas when they took most Clearview locations. It lasted until March, 2020 when it was closed by the Covid-19 pandemic. It was announced in September 2020 that the closure would be permanent.

On May 5, 2022, the Company incorporated AB Cinemas NY, Inc. in New York, NY, for the purpose of operating Mt. Kisco Theatre located in Mount Kisco, NY. The theatre has started operations in October 2022. After a rough two years for movie theatres due to the pandemic, movie theaters are starting to show signs of life again. The Company is intending to shift the business strategy from online only to the combination of online and offline business. The Company expects to generate considerable revenue from its movie theater business line in the following years.

On April 27, 2022, the Company purchased a unique Non-Fungible Token (“NFT”) movie and music marketplace, named as the NFT MMM from Stareastnet Portal Limited, an unrelated party, which including an APP “NFTMMM” on Google Play, and full right to the website: stareastnet.io. NFTs are digital assets with a unique identifier that is stored on a blockchain, and NFTs are tradable rights of digital assets (pictures, music, films, and virtual creations) where ownership is recorded in blockchain smart contracts. On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFTMM platform and platform data on both app and website for one year starting from August 20, 2022 to August 19, 2023 for a monthly license fee of $60,000. Pursuant to the agreement, the Company also charged one time implementation service and consulting fee of $100,000. Subsequent to the license renewal on November 1, 2023, the Company would continue licensing the NFT MM platform to the same third party from November 1, 2023 until October 31, 2025 for a monthly license fee of $57,000. The Company retained the ownership and copyright of the NFT MMM platform, including the APP “NFT MMM” on Google Play, and the website: stareastnet.io.

On May 31, 2023, the Company entered into an agreement with Capitalive Holdings Limited to sell the offline broadcast rights of total 59 movies for a price of $250,000. The granted broadcast rights are globally exclusive, with the exception of Mainland China.

On September 10, 2023, the Company entered into an agreement with All In One Media Ltd to acquire the copyrights for 4 movies at a price of $104,714. These copyrights allow the Company to transfer these movies to other parties outside the mainland China. On November 27, 2023, the Company further acquired mainland China copyrights of these 4 movies from All In One Media Ltd. at a price of $378,513.

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COVID-19

The full extent of the impact of the COVID-19 pandemic on our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict at the present time. In an effort to contain COVID-19 or slow its spread, governments around the world have enacted various measures, including orders to close all businesses not deemed “essential,” isolate residents to their homes or places of residence, and practice social distancing when engaging in essential activities. We anticipate that these actions and the global health crisis caused by COVID-19 will negatively impact business activity across the globe. The movie industry in general has changed dramatically as a result of the pandemic restrictions. While movie theaters struggle to stay alive, online streaming programming has increased. We have endeavored to stay with the trend for streaming services to remain competitive. We have experienced the negative impact in our results of operations and in our financial condition for the year ended August, 2020, especially with respect to the movie distribution end of our business. These impacts concern delays in delivering our movies and IP because of health restrictions imposed on certain public events that concern our business, including, among other things, theaters, indoor and outdoor performances, filming restrictions, music festivals, concerts and other such events, Some of these restrictions include pandemic government mandated shutdowns and others restrictions on capacity gathered at these events, with some jurisdictions imposing fines or revocation of business licensing, and other restrictions. As a result of these factors, our revenue was reduced from March to May of 2020. With immediate closures, the resultant industry and business specific delays have negatively affected our company.

During the COVID-19 pandemic, movie theatres have been subject to various governmental orders requiring theatres to take or refrain from certain activities including, but not limited to, suspending operations, reduction in seating capacities, enforcement of social distancing, establishment of enhanced cleaning protocols, restrictions on food and beverage sales, tracking the identity of guests, employee protection protocols, and limitation on operating hours. Although the orders have been modified frequently, we believe our theatre has maintained material compliance with such orders. We currently cannot predict when or if COVID-19 related governmental orders will be fully terminated and whether similar orders will be utilized more frequently during future public health outbreaks.

Specific to our company operations, during the pandemic period, we have enacted precautionary measures to protect the health and safety of our employees and partners. These measures include closing our office, having employees work from home, and eliminating all travel. While having employees work from home may have a negative impact on efficiency and may result in negligible increases in costs, it does have an impact on our ability to execute on our agreements to deliver our core products.

We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, local or foreign authorities, or that we determine are in the best interests of our employees, customers, partners and stockholders. Itis not clear what the potential effects any such alterations or modifications may have on our business, including the effects on our customers, partners, or vendors, or on our financial results.

Results of Operations

Revenues

Our total revenue reported for the three months ended November 30, 2023 and 2022 was $801,747 and $236,812, respectively.

The revenue for the three months ended November 30, 2023, was mainly attributable to the license fee received in connection with the licensing of our NFT MMM platform, movie copyrights sales to two third parties, fees charged for embedded marketing service as well as the revenue generated from movie tickets and food and beverage sales from our newly operated movie theatre. On the other hand, for the three months ended November 30, 2022, the Company had the same sources of revenue as the current period, except the movie copyrights sales and the fees charged for embedded marketing service. The increase in revenue was mainly due to the increase in sales of copyrights and broadcast rights during the three months ended November 30, 2023 as compared to the three months ended November 30, 2022.

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We have started the operation of our movie theatre since October 2022. We expect to have continued growth in our cinema segment with the recovery of movie industry from the impact of the pandemic. For the three months ended November 30, 2023, we generated total revenue of $87,459, including $57,824 from ticket sales, and $29,635 from food and beverage sales. For the three months ended November 30, 2022, we generated total revenue of $56,812, including $36,162 from ticket sales, and $20,650 from food and beverage sales.

We anticipate an increase in revenue in the future by selling movie and TV drama copyrights and broadcast rights, achieving enough customers to start subscriptions for ABQQ.tv and generating movie tickets and related revenues from our Mt. Kisco movie theatre in New York. We also hope to generate more license revenue from our NFT MMM platform.

Operating Costs and Expenses

Operating costs and expenses were $829,905 for the three months ended November 30, 2023, as compared to $1,440,916 for the three months ended November 30, 2022. Our operating costs and expenses for the three months ended November 30, 2023 consisted of theatre operating costs of $41,355, amortization expenses of $511,809, general and administrative expenses of $261,692 and related party salary and wages of $15,049. In contrast, our operating costs and expenses for the three months ended November 30, 2022 consisted of theatre operating costs of $22,404, amortization expenses of $923,499, general and administrative expenses of $424,513 and related party salary and wages of $70,500.

We experienced an increase in theatre operating costs for the three months ended November 30, 2023 as compared to the three months ended November 30, 2022, mainly due to the commencement of our move theatre operation since October 2022. The theatre operating costs for the three months ended November 30, 2023 encompass an additional month of operating costs in contrast to the corresponding period in 2022.

We experienced a decrease in amortization expenses for the three months ended November 30, 2023 as compared to the corresponding period in 2022, mainly due to more fully amortized intangible assets for the three months ended November 30, 2023.

We experienced a decrease in general and administrative expenses for the three months ended 2023 as compared to the corresponding period in 2022, mainly as a result of decreased non-related party salaries and contractors, professional fees, office expenses and repair and maintenance expenses for the three months ended 2023 in contrast to the corresponding period in 2022.

We experienced a decrease in related party salary and wages for the three months ended 2023 as compared to corresponding period in 2022, mainly due to the resignation of the Chief Financial Officer and Chief Investment Officer as well as the opt out of salary by the Chief Executive Officer effective since October 2023. During the three months ended November 30, 2023, the Company incurred total compensation of $15,049 for the Chief Executive Officer. During the three months ended November 30, 2022, the Company incurred total compensation of $51,000 for Chief Executive Officer and Chief Financial Officer. The Company also incurred total compensation of $nil and $19,500, respectively, for Chief Investment Officer during the three months ended November 30, 2023 and 2022.

We anticipate our operating expenses will increase as we undertake our plan of operations, including the streamline of costs associated with marketing, personnel, and other general and administrative expenses, along with increased professional fees associated with SEC and COVID compliance as our business grows more complex and more expensive to maintain. On the COVID front, we expect that restrictions will ease moving forward, but there may still be setbacks as variants to the virus emerge and governments take lockdown measures in response. These and other costs for COVID expenditures may increase our operational costs in fiscal 2024 at various levels of operation.

Other Income

We had other income of $71,758 for the three months ended November 30, 2023, as compared with other income of $79 for the corresponding period in 2022. Our other income for the three months ended November 30, 2023 was the net amount of the other income generated from the sales of software in progress, bank interest income, and the interest expense – related party. Our other expenses for the corresponding period in 2022 was the bank interest income.

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Net Income/Net Loss

We incurred a net income in the amount of $43,600 for the three months ended November 30, 2023, as compared with a net loss of $1,204,025 for corresponding period in 2022.

Liquidity and Capital Resources

As of November 30, 2023, we had $318,087 in current assets consisting of cash and accounts receivable. Our total current liabilities as of November 30, 2023 were $1,115,714. As a result, we have a working capital deficit of $797,627 as of November 30, 2023 as compared with $1,005,847 as of August 31, 2023.

Operating activities used $35,990 in cash for the three months ended November 30, 2023, as compared with $222,142 used in cash for the three months ended November 30, 2022.

Our negative operating cash flow for the three months ended November 30, 2023 was mainly the result of cash used in the purchase of movie broadcast right and copyright, offset by our net income combined with the amortization of intangible assets, and the increase in accounts payable.

Our negative operating cashflow for the three months ended November 30, 2022 was mainly the result of our net loss for the quarter combined with operating changes in receivables, offset by the amortization of intangible assets and stock-based compensation paid to consultants.

Investing activities was $Nil for the three months ended November 30, 2023 and 2022.

Financing activities provided $179,981 for the three months ended November 30, 2023, as compared with $158,159 provided by financing activities for the three months ended November 30, 2022. Our positive financing cash flow for the three months ended November 30, 2023 was due to the loans from related party. Our positive financing cash flow for the three months ended November 30, 2022 was mainly the result of proceeds from issuance of our common shares, preferred shares, and the loans from related parties.

Going Concern

Our consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of November 30, 2023, the Company had an accumulated deficit of approximately $12.3 million and a working capital deficit of approximately $0.8 million. For the three months ended November 30, 2023, the net cash used in operating activities was approximately $36,000.

The future operations of the Company depend on its ability to realize forecasted revenues, achieve profitable operations, and depend on whether or not the Company could obtain the continued financial support from its stockholders or external financing. Management believes the existing stockholders will continue to provide the additional cash to meet the Company’s obligations as they become due. The Company also intends to fund operations through cash flow generated from the operations, including the expected ticket sales from Mt. Kisco movie theatre, equity financing, debt borrowings, and additional equity financing from outside investors, to ensure sufficient working capital. However, no assurance can be given that additional financing, if required, would be available on favorable terms or at all. If we are not able to secure additional funding, the implementation of our business plan will be impaired.

These factors, among others, raise the substantial doubt regarding the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

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Off Balance Sheet Arrangements

As of November 30, 2023, there were no off-balance sheet arrangements.

Critical Accounting Policies

In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

Our critical accounting policies are set forth in Note 2 to the financial statements.

Recently Issued Accounting Pronouncements

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company and are not required to provide the information under this item pursuant to Regulation S-K.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of November 30, 2023. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of November 30, 2023, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of November 30, 2023, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting

Our company plans to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending August 31, 2023: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

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Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended November 30, 2023, that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any material pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A: Risk Factors

See Risk Factors contained in our Form 10-K filed with the SEC on November 29, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company had the following equity activities during the three months ended November 30, 2023:

During the three months ended November 30, 2023, the Company issued total 1,056,681,936 common shares as the result of the conversion of total 174,421 Series C preferred shares.

These securities were issued pursuant to Section 3(a)(9), Section 4(2) of the Securities Act and/or Rule 506 promulgated thereunder. The holders represented their intention to acquire the securities for investment only and not with a view towards distribution. The investors were given adequate information about us to make an informed investment decision. We did not engage in any general solicitation or advertising. We directed our transfer agent to issue the stock certificates with the appropriate restrictive legend affixed to the restricted stock.

Item 3. Defaults upon Senior Securities

None

Item 4. Mine Safety Disclosures

N/A

Item 5. Other Information

None

Item 6. Exhibits
Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended November 30, 2023 formatted in Extensible Business Reporting Language (XBRL).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on the dates below on its behalf by the undersigned thereunto duly authorized.

AB INTERNATIONAL GROUP CORP.

By:	/s/ Chiyuan Deng
	Chief Executive Officer, Chief Financial Officer, Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer and Director
	January 16, 2024

CERTIFICATIONS

I, Chiyuan Deng, certify that;

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended November 30, 2023 of AB International Group Corp. (the “registrant”);

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 16, 2024

/s/ Chiyuan Deng

By: Chiyuan Deng

Title: Chief Executive Officer, Principal Executive Officer

CERTIFICATIONS

I, Chiyuan Deng, certify that;

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended November 30, 2023 of AB International Group Corp. (the “registrant”);

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 16, 2024

/s/ Chiyuan Deng

By: Chiyuan Deng

Title: Chief Financial Officer

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AB Intetnational Group Corp. (the “Company”) on Form 10-Q for the quarter ended November 30, 2023 filed with the Securities and Exchange Commission (the “Report”), I, Chiyuan Deng, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.

By:	/s/ Chiyuan Deng
Name:	Chiyuan Deng
Title:	Chief Executive Officer, Chief Financial Officer, Principal Executive Officer
Date:	January 16, 2024

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Cover - shares	3 Months Ended
Cover - shares	Nov. 30, 2023	Jan. 11, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Nov. 30, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--08-31
Entity File Number	000-55979
Entity Registrant Name	AB International Group Corp.
Entity Central Index Key	0001605331
Entity Tax Identification Number	37-1740351
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	144 Main Street
Entity Address, City or Town	Mt. Kisco
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10549
City Area Code	914
Local Phone Number	202-3108
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,567,226,432

Consolidated Balance Sheets - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Current Assets
Cash and cash equivalents	$ 261,087	$ 117,096
Accounts receivable	57,000
Total Current Assets	318,087	117,096
Property and equipment, net	7,146	8,254
Right of use operating lease assets, net	646,034	696,380
Intangible assets, net	1,639,090	1,455,110
Purchase deposits for intangible assets, non-current		300,000
Security deposit	46,006	45,240
TOTAL ASSETS	2,656,363	2,622,080
Current Liabilities
Accounts payable and accrued liabilities	335,348	156,763
Accounts payable and accrued liabilities - related party	6,388	6,388
Loan from related parties	543,266	748,285
Current portion of obligations under operating leases	230,712	211,507
Total Current Liabilities	1,115,714	1,122,943
Obligations under operating leases, non-current	547,182	608,149
Total Liabilities	1,662,896	1,731,092
Stockholders’ Equity
Preferred Stock, Value, Issued	10,000,000	10,000,000
Common stock, $0.001 par value, 10,000,000,000 shares authorized; 2,566,965,321 and 1,285,283,385 shares issued and outstanding, as of November 30, 2023 and August 31, 2023, respectively	2,566,965	1,285,283
Additional paid-in capital	10,770,780	11,993,408
Accumulated deficit	(12,344,398)	(12,387,998)
Total Stockholders’ Equity	993,467	890,988
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	2,656,363	2,622,080
Preferred Class A [Member]
Stockholders’ Equity
Preferred Stock, Value, Issued	100	100
Preferred Class B [Member]
Stockholders’ Equity
Preferred Stock, Value, Issued	20	20
Preferred Class C [Member]
Stockholders’ Equity
Preferred Stock, Value, Issued		175
Preferred Class D [Member]
Stockholders’ Equity
Preferred Stock, Value, Issued

Consolidated Balance Sheets (Parenthetical) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Value, Issued	$ 10,000,000	$ 10,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	10,000,000,000	10,000,000,000
Common Stock, Shares, Issued	2,566,965,321	1,285,283,385
Common Stock, Shares, Outstanding	2,566,965,321	1,285,283,385
Preferred Class A [Member]
Preferred Stock, Value, Issued	$ 100	$ 100
Preferred Stock, Shares Issued	100,000	100,000
Preferred Stock, Shares Outstanding	100,000	100,000
Preferred Class B [Member]
Preferred Stock, Value, Issued	$ 20	$ 20
Preferred Stock, Shares Issued	20,000	20,000
Preferred Stock, Shares Outstanding	20,000	20,000
Preferred Class C [Member]
Preferred Stock, Value, Issued		$ 175
Preferred Stock, Shares Issued	0	174,421
Preferred Stock, Shares Outstanding	0	174,421
Preferred Class D [Member]
Preferred Stock, Value, Issued
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
REVENUE
Copyrights and license	$ 714,288	$ 180,000
Theatre admissions and food and beverage sales	87,459	56,812
Total revenue	801,747	236,812
OPERATING COSTS AND EXPENSES
Amortization expenses	(511,809)	(923,499)
Theatre operating costs	(41,355)	(22,404)
General and administrative expenses	(261,692)	(424,513)
Related party salary and wages	(15,049)	(70,500)
Total Operating Costs And Expenses	(829,905)	(1,440,916)
Loss From Operations	(28,158)	(1,204,104)
OTHER INCOME
Interest income	637	79
Interest expense – related party	(13,879)
Other income	85,000
Total Other Income	71,758	79
Income (Loss) Before Income Tax Benefit	43,600	(1,204,025)
Income tax provision
NET INCOME (LOSS)	43,600	(1,204,025)
Preferred shares dividend expense		(5,765)
NET INCOME (LOSS) AVAILABLE TO COMMON STOCK HOLDERS	$ 43,600	$ (1,209,790)
NET INCOME (LOSS) PER SHARE: BASIC	$ 0.00	$ (0.00)
NET INCOME (LOSS) PER SHARE: DILUTED	$ 0.00	$ (0.00)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC	1,988,356,325	481,889,485
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED	2,008,456,325	481,889,485

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance - August 31, 2023 at Aug. 31, 2022	$ 384,512	$ 456	$ 12,636,838	$ (8,789,901)	$ (209,957)	$ 4,021,948
Shares, Issued at Aug. 31, 2022	384,512,583	455,850
Issuance of common shares	$ 200,000		(53,525)			146,475
Stock Issued During Period, Shares, New Issues	200,000,000
Preferred shares series C issuance		$ 90	68,910			69,000
[custom:SeriesCPreferredSharesIssuedShares]		90,275
Preferred shares series C converted into common shares	$ 75,038	$ (96)	(74,942)
Stock Issued During Period, Shares, Conversion of Convertible Securities	75,037,786	(96,075)
Dividend in connection with Preferred shares series C			5,764			5,764
Stock Issued During Period, Shares, Other
Issuance of restricted common shares to officer for service					82,800	82,800
Stock Issued During Period, Shares, Issued for Services
Net income				(1,209,790)		(1,209,790)
Imputed Interest
Balance – November 30, 2023 at Nov. 30, 2022	$ 659,550	$ 450	12,583,045	(9,999,691)	(127,157)	3,116,197
Shares, Issued at Nov. 30, 2022	659,550,369	450,050
Balance - August 31, 2023 at Aug. 31, 2023	$ 1,285,283	$ 295	11,993,408	(12,387,998)		890,988
Shares, Issued at Aug. 31, 2023	1,285,283,385	294,421
Preferred shares series C converted into common shares	$ 1,056,682	$ (175)	(1,056,507)
Stock Issued During Period, Shares, Conversion of Convertible Securities	1,056,681,936	(174,421)
Issuance of restricted common shares to officer for service	$ 225,000		(180,000)			45,000
Stock Issued During Period, Shares, Issued for Services	225,000,000
Net income				43,600		43,600
Imputed Interest			13,879			13,879
[custom:ReceivableWithInputedInterestShares]
Balance – November 30, 2023 at Nov. 30, 2023	$ 2,566,965	$ 120	$ 10,770,780	$ (12,344,398)		$ 993,467
Shares, Issued at Nov. 30, 2023	2,566,965,321	120,000

Consoolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 43,600	$ (1,209,790)
Adjustments to reconcile net income (loss) to net cash generated from (used in) operating activities:
Executive salaries and consulting fees paid in stock		82,800
Depreciation of fixed asset	1,108	1,116
Amortization of intangible asset	511,809	923,499
Gain from sales of software in progress	(85,000)
Imputed interest on officer loan	13,879
Non-cash dividend expense for preferred shares		5,764
Non-cash lease expense	8,584	8,584
Changes in operating assets and liabilities:
Accounts receivable	(57,000)	(60,000)
Prepaid expenses		3,555
Rent security & electricity deposit	(766)
Purchase of movie and TV series broadcast right and copyright	(695,789)	(243,276)
Accounts payable and accrued liabilities	223,585	270,733
Accounts payable and accrued liabilities – related party		(5,127)
Deferred revenue
Net cash used in operating activities	(35,990)	(222,142)
CASH FLOWS FROM FINANCING ACTIVITIES
Loan from related parties	179,981	1,184
Proceeds from common stock issuances		87,975
Proceeds from preferred share C issuances		69,000
Net cash provided by financing activities	179,981	158,159
Net increase (decrease) in cash and cash equivalents	143,991	(63,983)
Cash and cash equivalents – beginning of period	117,096	84,223
Cash and cash equivalents – end of period	261,087	20,240
Supplemental Cash Flow Disclosures
Cash paid for interest
Cash paid for income taxes
Non-Cash Investing and Financing Activities:
Settlement of accrued CEO salaries with common stock	45,000
Net off purchase deposit with loan from related parties for sales of software	300,000
Transfer from purchase deposit to intangible assets		356,724
Subscription receivable for common stock issuance		$ 58,500

NOTE 1 – BASIS OF PRESENTATION

3 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

NOTE 1 – BASIS OF PRESENTATION

NOTE 1 – BASIS OF PRESENTATION

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.

Accounts receivable

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Foreign Currency Transactions

Prepayments

Property and Equipment, net

The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

		Estimated Useful Life
Furniture		7 years
Appliances		5 years
Leasehold improvement		Lesser of useful life and lease term

Intangible Assets

Intangible assets are recorded at the lower of cost or estimated fair value and amortized as follows:

	•	Movie copyrights and broadcast rights: straight-line method over the estimated life of the asset, which has been determined by management to be 2 years
	•	NFT MMM platform: straight-line method over the estimated life of the asset, which has been determined by management to be 2 years

Amortized costs of the intangible asset are recorded as amortization expenses in the consolidated statements of operations.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Lease property under operating lease

Impairment of Long-lived asset

Revenue Recognition

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue Recognition (continued)

Revenue from selling copyrights of movies or TV shows:

Revenue from licensing NFT MMM platform and providing technical service fee:

Revenue from movie theater admissions and food and beverage sales:

Revenue from embedded marketing service:

Contract Assets and Liabilities

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue Recognition (continued)

Disaggregation of revenue

The following table presents sales by revenue streams for the three months ended November 30, 2023 and 2022, respectively:

	November 30, 2023		November 30, 2022
Copyrights sales	$	531,800	$	—
Embedded marketing service		125,488		—
NFT licenses		57,000		180,000
Theatre admissions		57,824		36,162
Food and beverage sales		29,635		20,650
Total revenue	$	801,747	$	236,812

Fair Value of Financial Instruments

Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

No liabilities measured at fair value on a recurring basis as of November 30, 2023 and August 31, 2023.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basic and Diluted Earnings (Loss) Per Share

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation.

Warrants

Income Taxes

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Share-Based Compensation

Recent Accounting Pronouncements

NOTE 3 – GOING CONCERN

3 Months Ended

Nov. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 3 – GOING CONCERN

NOTE 3 – GOING CONCERN

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 4 – ACCOUNTS RECEIVABLE

3 Months Ended

Nov. 30, 2023

Credit Loss [Abstract]

NOTE 4 – ACCOUNTS RECEIVABLE

NOTE 4 – ACCOUNTS RECEIVABLE

NOTE 5 – PROPERTY AND EQUIPMENT

3 Months Ended

Nov. 30, 2023

Property, Plant and Equipment [Abstract]

NOTE 5 – PROPERTY AND EQUIPMENT

NOTE 5 – PROPERTY AND EQUIPMENT

The depreciation expense was $1,108 and $1,116 for the three months ended November 30, 2023 and 2022, respectively.

As of November 30, 2023 and August 31, 2023, the balance of property and equipment was as follows:

	November 30, 2023			August 31, 2023
Leasehold improvement	$	146,304		$	146,304
Appliances and furniture		25,974			25,974
Total cost		172,278			172,278
Accumulated depreciation		(165,132	)		(164,024	)
Property and equipment, net	$	7,146		$	8,254

NOTE 6 – INTANGIBLE ASSETS

3 Months Ended

Nov. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 – INTANGIBLE ASSETS

NOTE 6 – INTANGIBLE ASSETS

As of November 30, 2023 and August 31, 2023, the balance of intangible assets was as follows:

	November 30, 2023			August 31, 2023
Movie copyrights - Love over the world	$	853,333		$	853,333
Sitcom copyrights - Chujian		640,000			640,000
Movie copyrights - A story as a picture		422,400			422,400
Movie copyrights - Our treasures		936,960			936,960
Movie broadcast right- On the way		256,000			256,000
Movie copyrights - Too simple		1,271,265			1,271,265
Movie copyrights - Confusion		1,024,000			1,024,000
Movie copyrights - Amazing Data		300,000			300,000
Movie copyrights - Nice to meet you		300,000			300,000
Movie copyrights 6 – movies		695,789			—
TV drama copyright - 20 episodes		295,000			295,000
Movie broadcast rights 59 – movies		2,439,840			2,439,840
NFT MMM platform		280,000			280,000
Total cost		9,714,587			9,018,798
Accumulated amortization		(8,075,497	)		(7,563,688	)
Intangible assets, net	$	1,639,090		$	1,455,110

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – INTANGIBLE ASSETS (continued)

The amortization expense for the three months ended November 30, 2023 and 2022 was $511,809 and $923,499, respectively. Estimated future amortization expense is as follows:

Twelve months ending November 30,	Amortization expense
2024	$	1,332,847
2025		306,243
Total	$	1,639,090

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – INTANGIBLE ASSETS (continued)

NOTE 7 – LEASES

3 Months Ended

Nov. 30, 2023

Leases [Abstract]

NOTE 7 – LEASES

NOTE 7 – LEASES

In September 2023, the Company entered into a one month lease with a third party for an office space in Hong Kong, incurring a monthly rent of $766. The lease was ceased as of November 30, 2023.

The following is a schedule of maturities of lease liabilities:

Twelve months ending November 30,
2024	$	235,208
2025		251,748
2026		256,642
2027		42,910
Total future minimum lease payments		786,508
Less: imputed interest		(8,614	)
Total	$	777,894

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 8 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

3 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

NOTE 8 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

NOTE 8 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

The balance of purchase deposits for intangible assets which relates to the acquisition of copyrights and broadcast rights for movies and TV dramas and software was as follows:

	November 30, 2023		August 31, 2023

Purchase deposit for software	$	—	$	300,000
Total purchase deposits for intangible assets	$	—	$	300,000

NOTE 9 – RELATED PARTY TRANSACTIONS

3 Months Ended

Nov. 30, 2023

NOTE 9 – RELATED PARTY TRANSACTIONS

NOTE 9 – RELATED PARTY TRANSACTIONS

Loan from related parties

Accounts payable and accrued liabilities - related party - Youall Perform Services Ltd.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 9 – RELATED PARTY TRANSACTIONS (continued)

Accounts payable and accrued liabilities – related party - Zestv Studios Limited

As of November 30, 2023 and August 31, 2023, the Company had $0 payable to Zestv Studios Limited.

Executives’ salaries

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 10 – STOCKHOLDERS’ EQUITY

3 Months Ended

Nov. 30, 2023

Equity [Abstract]

NOTE 10 – STOCKHOLDERS’ EQUITY

NOTE 10 – STOCKHOLDERS’ EQUITY

Common shares

The Company had the following activities for the three months ended November 30, 2023:

Issuance of restricted common shares

Conversion of Series C preferred shares to common shares

During the three months ended November 30, 2023, the Company issued total 1,056,681,936 common shares as the result of the conversion of total 174,421 Series C preferred shares.

Reverse Stock split

The Company had the following activities for the three months ended November 30, 2022:

Increasing authorized number of common shares

Conversion of Series C preferred shares to common shares

During the three months ended November 30, 2022, the Company issued total 75,037,786 common shares as the result of the conversion of total 96,075 Series C preferred shares.

Subscription of Common shares

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 10 – STOCKHOLDERS’ EQUITY (continued)

Common shares (continued)

Subscription of Common shares (continued)

A summary of the status of the Company’s warrants as of November 30, 2023 and August 31, 2023 is presented below.

	Number of warrants
	Original shares issued		Anti-dilution Adjusted
Warrants as of August 31, 2022		50,000,000		—
Warrants granted during the year		—		—
Warrants as of August 31, 2023		50,000,000		—
Warrants granted during the three months		—		—
Exercisable as of November 30, 2023		50,000,000		—

Preferred shares

The Company had the following activities for the three months ended November 30, 2023:

During the three months ended November 30, 2023, the Company converted a total 174,421 Series C preferred shares into common shares.

The Company recorded dividend expenses of $5,765 on Series C and D Preferred shares for the three months ended November 30, 2022.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 11 – INCOME TAXES

3 Months Ended

Nov. 30, 2023

Income Tax Disclosure [Abstract]

NOTE 11 – INCOME TAXES

NOTE 11 – INCOME TAXES

As of November 30, 2023 and August 31, 2023, the components of net deferred tax assets, including a valuation allowance, were as follows:

	November 30, 2023			August 31, 2023
Deferred tax asset attributable to:
Net operating loss carry over	$	2,068,057		$	2,077,213
Less: valuation allowance		(2,068,057	)		(2,077,213	)
Net deferred tax asset	$	—		$	—

Reconciliation between the statutory rate and the effective tax rate is as follows for the three months ended November 30, 2023 and 2022:


	Three months ended
	November 30,
	2023			2022
Federal statutory tax rate		21	%		21	%
Change in valuation allowance		(21	%)		(21	%)
Effective tax rate		0	%		0	%

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 12 – CONCENTRATION RISK

3 Months Ended

Nov. 30, 2023

Risks and Uncertainties [Abstract]

NOTE 12 – CONCENTRATION RISK

NOTE 12 – CONCENTRATION RISK

Concentration

For the three months ended November 30, 2023 and 2022, 49% and 76% of the total revenue was generated from one customer, respectively.

As of November 30, 2023, one customer accounted for 100% of the Company’s accounts receivable balance, respectively. There was no accounts receivable balance as of August 31, 2023.

Credit risk

NOTE 13 – COMMITMENTS AND CONTINGENCIES

3 Months Ended

Nov. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

NOTE 13 – COMMITMENTS AND CONTINGENCIES

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Contingencies

Operating leases

The Company has several lease agreements to rent office spaces and movie theatre with its related party and third-party vendors. (See Note 7)

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 14 – SEGMENT INFORMATION

3 Months Ended

Nov. 30, 2023

Segment Reporting [Abstract]

NOTE 14 – SEGMENT INFORMATION

NOTE 14 – SEGMENT INFORMATION

The following table presents summary information by segment for the three months ended November 30, 2023 and 2022, respectively.


	IP Segment						Cinema Segment					Total
	Three months ended						Three months ended					Three months ended
	November 30						November 30					November 30
	2023			2022			2023		2022			2023		2022
Revenue	$	714,288		$	180,000		$	87,459	$	56,812		$	801,747	$	236,812
Operating costs		—			—			41,355		22,404			41,355		22,404
Depreciation and Amortization		512,917			924,615			—		—			512,917		924,615
Interest expense (income)		13,242			(79	)		—		—			13,242		(79	)
Segment assets		2,632,394			5,126,491			23,969		16,612			2,656,363		5,143,103
Segment income (loss)	$	(16,144	)	$	(1,174,772	)	$	59,744	$	(35,018	)	$	43,600	$	(1,209,790	)

NOTE 15 – SUBSEQUENT EVENTS

3 Months Ended

Nov. 30, 2023

Subsequent Events [Abstract]

NOTE 15 – SUBSEQUENT EVENTS

NOTE 15 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued.

Cancellation and Withdrawal of Series B, C, D Preferred Stock

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.

Accounts receivable

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Foreign Currency Transactions

Prepayments

Property and Equipment, net

The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

		Estimated Useful Life
Furniture		7 years
Appliances		5 years
Leasehold improvement		Lesser of useful life and lease term

Intangible Assets

Intangible assets are recorded at the lower of cost or estimated fair value and amortized as follows:

	•	Movie copyrights and broadcast rights: straight-line method over the estimated life of the asset, which has been determined by management to be 2 years
	•	NFT MMM platform: straight-line method over the estimated life of the asset, which has been determined by management to be 2 years

Amortized costs of the intangible asset are recorded as amortization expenses in the consolidated statements of operations.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Lease property under operating lease

Impairment of Long-lived asset

Revenue Recognition

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue Recognition (continued)

Revenue from selling copyrights of movies or TV shows:

Revenue from licensing NFT MMM platform and providing technical service fee:

Revenue from movie theater admissions and food and beverage sales:

Revenue from embedded marketing service:

Contract Assets and Liabilities

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue Recognition (continued)

Disaggregation of revenue

The following table presents sales by revenue streams for the three months ended November 30, 2023 and 2022, respectively:

	November 30, 2023		November 30, 2022
Copyrights sales	$	531,800	$	—
Embedded marketing service		125,488		—
NFT licenses		57,000		180,000
Theatre admissions		57,824		36,162
Food and beverage sales		29,635		20,650
Total revenue	$	801,747	$	236,812

Fair Value of Financial Instruments

Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

No liabilities measured at fair value on a recurring basis as of November 30, 2023 and August 31, 2023.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basic and Diluted Earnings (Loss) Per Share

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation.

Warrants

Income Taxes

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Share-Based Compensation

Recent Accounting Pronouncements

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life

		Estimated Useful Life
Furniture		7 years
Appliances		5 years
Leasehold improvement		Lesser of useful life and lease term

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Dissaggregation of Revenues (Details

	November 30, 2023		November 30, 2022
Copyrights sales	$	531,800	$	—
Embedded marketing service		125,488		—
NFT licenses		57,000		180,000
Theatre admissions		57,824		36,162
Food and beverage sales		29,635		20,650
Total revenue	$	801,747	$	236,812

NOTE 5 – PROPERTY AND EQUIPMENT (Tables)

3 Months Ended

Nov. 30, 2023

Property, Plant and Equipment [Abstract]

NOTE 5 - PROPERTY AND EQUIPMENT - Leasehold Improvement

	November 30, 2023			August 31, 2023
Leasehold improvement	$	146,304		$	146,304
Appliances and furniture		25,974			25,974
Total cost		172,278			172,278
Accumulated depreciation		(165,132	)		(164,024	)
Property and equipment, net	$	7,146		$	8,254

NOTE 6 – INTANGIBLE ASSETS (Tables)

3 Months Ended

Nov. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 - INTANGIBLE ASSETS

	November 30, 2023			August 31, 2023
Movie copyrights - Love over the world	$	853,333		$	853,333
Sitcom copyrights - Chujian		640,000			640,000
Movie copyrights - A story as a picture		422,400			422,400
Movie copyrights - Our treasures		936,960			936,960
Movie broadcast right- On the way		256,000			256,000
Movie copyrights - Too simple		1,271,265			1,271,265
Movie copyrights - Confusion		1,024,000			1,024,000
Movie copyrights - Amazing Data		300,000			300,000
Movie copyrights - Nice to meet you		300,000			300,000
Movie copyrights 6 – movies		695,789			—
TV drama copyright - 20 episodes		295,000			295,000
Movie broadcast rights 59 – movies		2,439,840			2,439,840
NFT MMM platform		280,000			280,000
Total cost		9,714,587			9,018,798
Accumulated amortization		(8,075,497	)		(7,563,688	)
Intangible assets, net	$	1,639,090		$	1,455,110

NOTE 6 - INTANGIBLE ASSETS - Estimated Amortization Expense

Twelve months ending November 30,	Amortization expense
2024	$	1,332,847
2025		306,243
Total	$	1,639,090

NOTE 7 – LEASES (Tables)

3 Months Ended

Nov. 30, 2023

Leases [Abstract]

NOTE 7 - LEASES - Future Lease Payments

Twelve months ending November 30,
2024	$	235,208
2025		251,748
2026		256,642
2027		42,910
Total future minimum lease payments		786,508
Less: imputed interest		(8,614	)
Total	$	777,894

NOTE 8 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS (Tables)

3 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

NOTE 8 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments

	November 30, 2023		August 31, 2023

Purchase deposit for software	$	—	$	300,000
Total purchase deposits for intangible assets	$	—	$	300,000

NOTE 10 – STOCKHOLDERS’ EQUITY (Tables)

3 Months Ended

Nov. 30, 2023

Equity [Abstract]

NOTE 10 - STOCKHOLDERS' EQUITY - A Summary of Warrant Activity

	Number of warrants
	Original shares issued		Anti-dilution Adjusted
Warrants as of August 31, 2022		50,000,000		—
Warrants granted during the year		—		—
Warrants as of August 31, 2023		50,000,000		—
Warrants granted during the three months		—		—
Exercisable as of November 30, 2023		50,000,000		—

NOTE 11 – INCOME TAXES (Tables)

3 Months Ended

Nov. 30, 2023

Income Tax Disclosure [Abstract]

NOTE 11 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities

	November 30, 2023			August 31, 2023
Deferred tax asset attributable to:
Net operating loss carry over	$	2,068,057		$	2,077,213
Less: valuation allowance		(2,068,057	)		(2,077,213	)
Net deferred tax asset	$	—		$	—

NOTE 11 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation


	Three months ended
	November 30,
	2023			2022
Federal statutory tax rate		21	%		21	%
Change in valuation allowance		(21	%)		(21	%)
Effective tax rate		0	%		0	%

NOTE 14 – SEGMENT INFORMATION (Tables)

3 Months Ended

Nov. 30, 2023

Segment Reporting [Abstract]

NOTE 14 - SEGMENT INFORMATION - Summary of Segment Information

The following table presents summary information by segment for the three months ended November 30, 2023 and 2022, respectively.


	IP Segment						Cinema Segment					Total
	Three months ended						Three months ended					Three months ended
	November 30						November 30					November 30
	2023			2022			2023		2022			2023		2022
Revenue	$	714,288		$	180,000		$	87,459	$	56,812		$	801,747	$	236,812
Operating costs		—			—			41,355		22,404			41,355		22,404
Depreciation and Amortization		512,917			924,615			—		—			512,917		924,615
Interest expense (income)		13,242			(79	)		—		—			13,242		(79	)
Segment assets		2,632,394			5,126,491			23,969		16,612			2,656,363		5,143,103
Segment income (loss)	$	(16,144	)	$	(1,174,772	)	$	59,744	$	(35,018	)	$	43,600	$	(1,209,790	)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life (Details)	3 Months Ended
	Nov. 30, 2023
Total Cost
Finite-Lived Intangible Assets [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Appliances [Member]
Finite-Lived Intangible Assets [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Copyrights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Method	straight-line method over the estimated life of the asset, which has been determined by management to be 2 years
Finite-Lived Intangible Asset, Useful Life	2 years
N F T Platform [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Method	straight-line method over the estimated life of the asset, which has been determined by management to be 2 years
Finite-Lived Intangible Asset, Useful Life	2 years

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Dissaggregation of Revenues (Details - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 714,288	$ 180,000
Revenue Not from Contract with Customer	87,459	56,812
Total revenue	801,747	236,812
Copyright Sales [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	531,800
Embedded Marketing Service [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	125,488
N F T Licenses [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	57,000	180,000
Theatre Admissions [Member]
Disaggregation of Revenue [Line Items]
Revenue Not from Contract with Customer	57,824	36,162
Food And Beverage Sales [Member]
Disaggregation of Revenue [Line Items]
Revenue Not from Contract with Customer	$ 29,635	$ 20,650

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Accounting Policies [Abstract]
Accounts Receivable, Allowance for Credit Loss, Writeoff	$ 0	$ 0
Impairment of Intangible Assets, Finite-Lived	0	$ 0
Warrants and Rights Outstanding	$ 50,000,000

NOTE 3 – GOING CONCERN (Details Narrative)	3 Months Ended
NOTE 3 – GOING CONCERN (Details Narrative)	Nov. 30, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
[custom:RetainedEarningsAccumulatedDeficitEstimated-0]	$ 12.3
Banking Regulation, Total Capital, Actual	0.8
[custom:NetCashUsedInOperationsApproximate]	$ 36,000

NOTE 4 – ACCOUNTS RECEIVABLE (Details Narrative) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Credit Loss [Abstract]
Accounts Receivable, after Allowance for Credit Loss, Current	$ 57,000

NOTE 5 - PROPERTY AND EQUIPMENT - Leasehold Improvement (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Net	$ 7,146	$ 8,254
Renovation Costs [Member]
Property, Plant and Equipment [Line Items]
Leasehold Improvements, Gross	146,304	146,304
Furniture and Fixtures, Gross	25,974	25,974
Property, Plant, and Equipment, Owned, Gross	172,278	172,278
Property, Plant, and Equipment, Lessor Asset under Operating Lease, Accumulated Depreciation	165,132	164,024
Property, Plant and Equipment, Net	$ 7,146	$ 8,254

NOTE 5 – PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,108	$ 1,116

NOTE 6 - INTANGIBLE ASSETS (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total cost	$ 9,714,587	$ 9,018,798
Accumulated amortization	8,075,497	7,563,688
Intangible assets, net	1,639,090	1,455,110
Movie Copyright Love Over World [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	853,333	853,333
Movie Copyright Chujian [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	640,000	640,000
Movie Copyright A Story Of A Picture [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	422,400	422,400
Movie Copyright Our Treasures [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	936,960	936,960
Movie Copyright On The Way [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	256,000	256,000
Movie Copyright Too Simple [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,271,265	1,271,265
Movie Copyright Confusion [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,024,000	1,024,000
Movie Copyright Amazing Data [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	300,000	300,000
Movie Copyright Nice To Meet You [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	300,000	300,000
Movie Copyright Six Movies [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	695,789
Movie Copyright T V Drama [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	295,000	295,000
Broadcast 59 Movies [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	2,439,840	2,439,840
N F T Platform [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 280,000	$ 280,000

NOTE 6 - INTANGIBLE ASSETS - Estimated Amortization Expense (Details)	Nov. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling 12 Months	$ 1,332,847
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two	306,243
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three	$ 1,639,090

NOTE 6 – INTANGIBLE ASSETS (Details Narrative) - USD ($)								1 Months Ended	3 Months Ended		4 Months Ended	12 Months Ended
	Nov. 27, 2023	Nov. 21, 2023	Nov. 01, 2023	Sep. 30, 2023	Sep. 10, 2023	Aug. 06, 2022	Mar. 31, 2022	Nov. 30, 2023	Nov. 30, 2023	Nov. 30, 2022	Dec. 31, 2022	Dec. 31, 2022	Aug. 31, 2022	Aug. 20, 2022
Indefinite-Lived Intangible Assets [Line Items]
Revenue from Contract with Customer, Including Assessed Tax									$ 714,288	$ 180,000
N F T Licenses [Member]
Indefinite-Lived Intangible Assets [Line Items]
Revenue from Contract with Customer, Including Assessed Tax									57,000	180,000
N F T M M M M Monthly [Member]
Indefinite-Lived Intangible Assets [Line Items]
[custom:TermsOfNFTPlatformAccess]						On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFT MMM platform and platform data on both app and website for one year starting from August 20, 2022 for a monthly license fee of $60,000
[custom:NFTPlatformMonthlyLicenseFee-0]														$ 60,000
N F T M M M M Monthly Renewed Terms [Member]
Indefinite-Lived Intangible Assets [Line Items]
[custom:TermsOfNFTPlatformAccess]			on November 1, 2023, the Company would continue licensing the NFT MMM platform to the same third party from November 1, 2023 until October 31, 2025 for a monthly license fee of $57,000. The Company remains the ownership and copyright of the NFT MMM platform, including the APP “NFT MMM” on Google Play, and the website: starestnet.io
[custom:NFTPlatformMonthlyLicenseFee-0]			$ 57,000
Five Movies Copyright [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Contingent Consideration, Liability							$ 1,500,000
Amazing Data And Nice To Meet You [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Contingent Consideration, Liability										$ 600,000
Asset Acquisition, Consideration Transferred													$ 356,724
Finite-Lived Intangible Assets Acquired											$ 356,724
Accounts Payable, Other, Current											$ 243,276	$ 243,276
Loss Contingency, Settlement Agreement, Terms												Per amended agreement, the remaining three movies will be delivered upon receiving the payment of minimum $300,000 per movie from the Company before December 31, 2022. The agreement was terminated on December 31, 2022
T V Drama Series [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Consideration Transferred							$ 525,000
Customer Refundable Fees, Refund Payments									$ 420,000
All In One Media 4 Movies [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Consideration Transferred					$ 104,714
All In One Media 4 Movies Mainland China [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Consideration Transferred	$ 378,513
All In One Media 2 Movies [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Consideration Transferred				$ 212,562
Anyone Pictures 1 Movie [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Consideration Transferred								$ 180,000
Anyone Pictures Second Movie [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Consideration Transferred								$ 211,800
Capitalive Holdings Limited Movie [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Consideration Transferred		$ 140,000

NOTE 7 - LEASES - Future Lease Payments (Details)	Nov. 30, 2023 USD ($)
Leases [Abstract]
Operating Leases, Future Minimum Payments, Due in Rolling Year Two	$ 235,208
Operating Leases, Future Minimum Payments, Due in Rolling Year Three	251,748
Operating Leases, Future Minimum Payments, Due in Rolling Year Four	256,642
Operating Leases, Future Minimum Payments, Due in Rolling Year Five	42,910
Lessee, Operating Lease, Liability, to be Paid	786,508
Receivable with Imputed Interest, Discount	8,614
Operating Lease, Liability	$ 777,894

NOTE 7 – LEASES (Details Narrative) - USD ($)	3 Months Ended
NOTE 7 – LEASES (Details Narrative) - USD ($)	Nov. 30, 2023	Nov. 30, 2022	Sep. 01, 2023	Oct. 21, 2021	May 01, 2019
Other Commitments [Line Items]
Operating Leases, Rent Expense, Net	$ 52,449	$ 68,771
Hong Kong Lease [Member]
Other Commitments [Line Items]
Lessee, Operating Lease, Term of Contract					1 month
Operating Leases, Future Minimum Payments Due, Next 12 Months			$ 766
Operating Leases, Rent Expense, Net	$ 0	$ 16,512
Kisco Theatre [Member]
Other Commitments [Line Items]
Lessee, Operating Lease, Term of Contract				5 years
Operating Leases, Future Minimum Payments, Due in Two Years				$ 14,366
Operating Leases, Future Minimum Payments, Due in Three Years				$ 20,648

NOTE 8 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Prepaid Expense and Other Assets		$ 300,000
Five Movies Copyright [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Prepaid Expense and Other Assets		300,000
Total Copyright Prepayment [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Prepaid Expense and Other Assets		$ 300,000

NOTE 8 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS (Details Narrative) - USD ($)			3 Months Ended
	Nov. 28, 2023	Jun. 08, 2023	Nov. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Gain (Loss) on Disposition of Other Assets			$ (85,000)
Streaming Software [Member]
Finite-Lived Intangible Assets [Line Items]
Research, Development and Computer Software, Activity Description		On June 8, 2023, the Group has entered into software development contract for the creation of the streaming software designed for use on both the website and mobile applications. Pursuant to the contract’s terms, the Developer is contractually obliged to deliver the software by September 8, 2024, which corresponds to the upcoming 15-month period
Research and Development Expense, Software (Excluding Acquired in Process Cost)		$ 1,500,000
Payments to Develop Software			$ 300,000
Gain (Loss) on Disposition of Other Assets	$ 385,000
Streaming Software Amended [Member]
Finite-Lived Intangible Assets [Line Items]
Research and Development Expense, Software (Excluding Acquired in Process Cost)	385,000
Gain (Loss) on Disposition of Other Assets	$ 85,000

NOTE 9 – RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)						1 Months Ended		3 Months Ended			12 Months Ended
	Nov. 28, 2023	Aug. 31, 2023	Sep. 11, 2020	Sep. 11, 2020	Jul. 01, 2020	Jun. 23, 2022	Sep. 30, 2019	Nov. 30, 2023	Feb. 28, 2023	Nov. 30, 2022	Aug. 31, 2022	Jun. 01, 2023	Aug. 31, 2021	Jan. 01, 2021
Related Party Transaction [Line Items]
Accounts Payable and Accrued Liabilities, Current		$ 156,763						$ 335,348
Gain (Loss) on Disposition of Other Assets								(85,000)
Operating Leases, Rent Expense, Net								$ 52,449		$ 68,771
Preferred Stock, Par or Stated Value Per Share		$ 0.001						$ 0.001
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Accrued Salaries, Current			$ 180,000	$ 180,000
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture			100,000
Chief Executive Officer [Member] \| Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Preferred Stock, Par or Stated Value Per Share			$ 0.001	$ 0.001
C E O [Member]
Related Party Transaction [Line Items]
Payments to Employees								$ 15,049
C E O And C F O [Member]
Related Party Transaction [Line Items]
Payments to Employees										51,000
Chief Investment Officer [Member]
Related Party Transaction [Line Items]
Payments to Employees								0		19,500
Hong Kong Lease [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense, Net								0		$ 16,512
Streaming Software [Member]
Related Party Transaction [Line Items]
Payments to Develop Software								300,000
Gain (Loss) on Disposition of Other Assets	$ 385,000
Proceeds from Collection of (Payments to Fund) Long-Term Loans to Related Parties	$ 385,000
Zestv Studios [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment								5,127	$ 10,000		$ 151,795
Proceeds from Sale of Intangible Assets						$ 750,000
Zestv Studios Second Total [Member]
Related Party Transaction [Line Items]
Lease Expiration Date		Aug. 31, 2023
Other Loans Payable		$ 0						0
C E O [Member]
Related Party Transaction [Line Items]
[custom:SharesReturnedToCompany]				266,667
Guangzhou Yuezhi Computer [Member]
Related Party Transaction [Line Items]
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net							10.00%
Capitalized Computer Software, Additions							$ 128,000
Payments to Develop Software							108,800
Debt Instrument, Periodic Payment								12,812
Youall Perform Services L T D [Member]
Related Party Transaction [Line Items]
Capitalized Computer Software, Additions					$ 128,000
Payments to Develop Software							$ 108,800
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Outstanding Balance														$ 19,200
Accounts Payable and Accrued Liabilities, Current		6,388						6,388
Zestv Studios [Member]
Related Party Transaction [Line Items]
Customer Refund Liability, Current													$ 916,922
Chiyuan Deng Line Of Credit [Member]
Related Party Transaction [Line Items]
Long-Term Line of Credit												$ 1,500,000
Debt Instrument, Interest Rate, Stated Percentage												5.00%
Shareholder Loan [Member]
Related Party Transaction [Line Items]
Accounts Payable, Other, Current		$ 748,285						$ 543,266				$ 697,281

NOTE 10 - STOCKHOLDERS' EQUITY - A Summary of Warrant Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Nov. 30, 2023	Aug. 31, 2023	Aug. 31, 2022
Original Shares Issued [Member]
Short-Term Debt [Line Items]
Class of Warrant or Right, Outstanding	50,000,000	50,000,000	50,000,000
Adjustment of Warrants Granted for Services
Anti Dilution Adjusted [Member]
Short-Term Debt [Line Items]
Class of Warrant or Right, Outstanding
Adjustment of Warrants Granted for Services

NOTE 10 – STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)						1 Months Ended	3 Months Ended
	Oct. 05, 2023	Sep. 08, 2023	Jun. 12, 2023	Sep. 06, 2022	Aug. 02, 2022	Dec. 31, 2022	Nov. 30, 2023	Nov. 30, 2022	Aug. 31, 2023	Oct. 11, 2022	Oct. 10, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common Stock, Par or Stated Value Per Share							$ 0.001		$ 0.001
Stockholders' Equity, Reverse Stock Split			on June 12, 2023, the Board of Directors approved a reverse split for the Company’s issued and outstanding common stock, at a ratio of 1 share for every 10,000 shares, contingent upon receiving a market effectiveness date from FINRA.
[custom:StockholdersEquityReverseStockSplitCancellation]		On September 8, 2023, however, the Board of Directors decided to cancel the company's upcoming 10,000 to 1 reverse split
Common Stock, Shares Authorized							10,000,000,000		10,000,000,000	10,000,000,000	1,000,000,000
Proceeds from Issuance of Common Stock								$ 87,975
[custom:SeriesCPreferredSharesIssuedAmount]								69,000
Dividend, Share-Based Payment Arrangement								$ 5,765
Alumni Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common Stock, Shares Subscribed but Unissued								200,000,000
Preferred Class C [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Conversion of Stock, Shares Converted							174,421	96,075
Series C Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
[custom:SeriesCPreferredSharesIssuedShares]				90,275
[custom:SeriesCPreferredSharesIssuedAmount]				$ 78,500
Proceeds from Issuance of Convertible Preferred Stock				$ 69,000
C E O [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accrued Salaries, Current	$ 45,000
C E O [Member] \| Restricted Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture	225,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities							1,056,681,936	75,037,786
[custom:SeriesCPreferredSharesIssuedShares]
[custom:SeriesCPreferredSharesIssuedAmount]
Alumni Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned					$ 1,000,000.0
Debt Instrument, Convertible, Associated Derivative Transactions, Description					The purchase price is number of common stocks in a Purchase Notice issued by the Company multiplied by 75% of the lowest traded price of the Common Stock five Business Days prior to the Closing, which is no later than five business days after the Purchase Notice Date.
Proceeds from Issuance of Common Stock						$ 58,500		87,975
Alumni Capital Total Proceeds [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Proceeds from Issuance of Common Stock								$ 146,475
Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities							(174,421)	(96,075)
[custom:SeriesCPreferredSharesIssuedShares]								90,275
[custom:SeriesCPreferredSharesIssuedAmount]								$ 90
Preferred Stock [Member] \| Preferred Class C [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Conversion of Stock, Shares Converted							174,421

NOTE 11 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards	$ 2,068,057	$ 2,077,213
Deferred Tax Assets, Valuation Allowance	2,068,057	2,077,213
Deferred Tax Assets, Net of Valuation Allowance

NOTE 11 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Income Tax Disclosure [Abstract]
Federal statutory tax rate	21.00%	21.00%
Change in valuation allowance	(21.00%)	(21.00%)
Effective tax rate	0.00%	0.00%

NOTE 11 – INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
NOTE 11 – INCOME TAXES (Details Narrative) - USD ($)	Nov. 30, 2023	Nov. 30, 2022	Aug. 31, 2023
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Deferred Tax Assets, Valuation Allowance	$ 2,068,057		$ 2,077,213
Hong Kong Tax Rate [Member]
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	16.50%

NOTE 12 – CONCENTRATION RISK (Details Narrative) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Aug. 31, 2023
Concentration Risk [Line Items]
Accounts Receivable, after Allowance for Credit Loss			$ 0
[custom:HongKongDepositProtection-0]	$ 64,000
Cash Equivalents, at Carrying Value	236,819		92,972
Cash, FDIC Insured Amount	250,000
Fair Value, Concentration of Risk, Cash and Cash Equivalents	$ 24,268		$ 24,124
Revenue Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	49.00%	76.00%

NOTE 14 - SEGMENT INFORMATION - Summary of Segment Information (Details) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Segment Reporting Information [Line Items]
Revenue	$ 801,747	$ 236,812
Operating costs	41,355	22,404
Depreciation and Amortization	512,917	924,615
Interest expense (income)	13,242	(79)
Segment assets	2,656,363	5,143,103
Segment income (loss)	43,600	(1,209,790)
I P Segment [Member]
Segment Reporting Information [Line Items]
Revenue	714,288	180,000
Operating costs
Depreciation and Amortization	512,917	924,615
Interest expense (income)	13,242	(79)
Segment assets	2,632,394	5,126,491
Segment income (loss)	(16,144)	(1,174,772)
Cinema Segment [Member]
Segment Reporting Information [Line Items]
Revenue	87,459	56,812
Operating costs	41,355	22,404
Depreciation and Amortization
Interest expense (income)
Segment assets	23,969	16,612
Segment income (loss)	$ 59,744	$ (35,018)