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Note 1 - Nature of Business and Basis of Presentation
9 Months Ended
Nov. 30, 2018
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]
Note
1
– Nature of Business and basis of Presentation
 
FingerMotion, Inc. fka Property Management Corporation of America (the “Company”) was incorporated on
January 23, 2014
under the laws of the State of Delaware. The Company offers management and consulting services to residential and commercial real estate property owners who rent or lease their property to
third
party tenants.
 
The Company changed its name to FingerMotion, Inc. on
July 13, 2017
after a change in control. In
July 2017
the Company acquired all of the outstanding shares of Finger Motion Company Limited (FMCL), a Hong Kong corporation that is an information technology company which specialize in operating and publishing mobile games.
 
Pursuant to the Share Exchange Agreement, the Company agreed to exchange the outstanding equity stock of FMCL held by the FMCL Shareholders for shares of common stock of the Company. At the Closing Date, the Company issued
12,000,000
shares of common stock to the FMCL shareholders. In addition, the Company issued
600,000
shares to other consultants in connection with the transactions contemplated by the Share Exchange Agreement.
 
The transaction was accounted for as a “reverse acquisition” since, immediately following completion of the transaction, the shareholders of FMCL effectuated control of the post-combination Company. For accounting purposes, FMCL was deemed to be the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of FMCL (i.e., a capital transaction involving the issuance of shares by the Company for the shares of FMCL). Accordingly, the consolidated assets, liabilities and results of operations of FMCL became the historical financial statements of FingerMotion, Inc. and its subsidiaries, and the Company’s assets, liabilities and results of operations were consolidated with FMCL beginning on the acquisition date.
No
step-up in basis or intangible assets or goodwill were recorded in this transaction.
 
Effective
July 13, 2017,
the Company agreed to exchange the outstanding equity stock of FMCL held by the FMCL Shareholders for shares of common stock of the Company. At the Closing Date, the Company issued approximately
12,000,000
shares of common stock to the FMCL shareholders. In addition, the Company issued
600,000
shares to consultants in connection with the transactions contemplated by the Share Exchange Agreement, and up to
2,562,500
additional shares to accredited investors.
 
As a result of the Share Exchange Agreement and the other transactions contemplated thereunder, FMCL became a wholly owned subsidiary of the Company. FMCL, a Hong Kong corporation, was formed in
April 6, 2016.
 
On
16
October, 2018,
the Company through its indirect wholly-owned subsidiary, Shanghai JiuGe Management Co., Ltd. (“JiuGe Management”), entered into a series of agreements known as variable interest agreements (the “VIE Agreements”) pursuant to which Shanghai JiuGe Technology Co., Ltd. (“JiuGe Technology”) became “JiuGe Management’s contractually controlled affiliate. The use of VIE agreements is a common structure used to acquire PRC corporations, particularly in certain industries in which foreign investment is restricted or forbidden by the PRC government. The VIE Agreements include a Consulting Services Agreement, a Loan Agreement, a Power of Attorney Agreement, a Call Option Agreement, and a Share Pledge Agreement in order to secure the connection and commitments of the JiuGe Technology.