Note

- Summary of Principal Accounting Policies

Basis of Presentation of Unaudited Condensed Financial Information

The unaudited condensed financial statements of the Company for the

nine

months ended

Nov 30, 2018

and

2017

have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form

-Q and Regulation S-K. Accordingly, they do

not

include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are

not

necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of

February 28, 2018

was derived from the audited financial statements included in the Company's financial statements as of and for the year ended

February 28, 2018

included in the

August 7, 2018.

These financial statements should be read in conjunction with that report.

Variable interest entity

Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section

810,

“Consolidation” (“ASC

810”

), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (“VIEs”). ASC

810

requires a VIE to be consolidated if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity.

Under ASC

810,

a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entity’s determination of whether it has this power is

not

affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. JiuGe Technology’s actual stockholders do

not

hold any kick-out rights that affect the consolidation determination.

Through the VIE agreements disclosed in Note

the Company is deemed the primary beneficiary of JiuGe Technology. Accordingly, the results of JiuGe Technology have been included in the accompanying consolidated financial statements. JiuGe Technology has

assets that are collateral for or restricted solely to settle their obligations. The creditors of JiuGe Technology do

not

have recourse to the Company’s general credit.

The following assets and liabilities of the VIE are included in the accompanying consolidated financial statements of the Company as of

November 30, 2018:

	November 30 ,
	201 8
Current assets	$	2,366,337
Non-current assets		-
Total assets	$	2,366,337

Current liabilities	$	2,790,689
Non-current liabilities		-
Total liabilities	$	2,790,689

Recently Issued Accounting Pronouncements (continued)

October 2, 2017,

The FASB has issued Accounting Standards Update (ASU)

No.

2017

13,

“Revenue Recognition (Topic

605

), Revenue from Contracts with Customers (Topic

606

), Leases (Topic

840

), and Leases (Topic

842

): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the

July 20, 2017

EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The ASU adds SEC paragraphs to the new revenue and leases sections of the Codification on the announcement the SEC Observer made at the

July 2017

Emerging Issues Task Force (EITF) meeting. The SEC Observer said that the SEC staff would

not

object if entities that are considered public business entities only because their financial statements or financial information is required to be included in another entity’s SEC filing use the effective dates for private companies when they adopt ASC

606,

Revenue from Contracts with Customers, and ASC

842,

Leases. This would include entities whose financial statements are included in another entity’s SEC filing because they are significant acquirees under Rule

of Regulation S-

significant equity method investees under Rule

of Regulation S-

and equity method investees whose summarized financial information is included in a registrant’s financial statement notes under Rule

(g) of Regulation S-

The ASU also supersedes certain SEC paragraphs in the Codification related to previous SEC staff announcements and moves other paragraphs, upon adoption of ASC

606

or ASC

842.

The Company does

not

expect that the adoption of this guidance will have a material impact on its unaudited condensed consolidated financial statements.

November 22, 2017,

the FASB ASU

No.

2017

14,

“Income Statement—Reporting Comprehensive Income (Topic

220

), Revenue Recognition (Topic

605

), and Revenue from Contracts with Customers (Topic

606

): Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin

No.

116

and SEC Release

10403.”

The ASU amends various paragraphs in ASC

220,

Income Statement — Reporting Comprehensive Income; ASC

605,

Revenue Recognition; and ASC

606,

Revenue From Contracts With Customers, that contain SEC guidance. The amendments include superseding ASC

605

S25

(SAB Topic

) as a result of SEC Staff Accounting Bulletin

No.

116

and adding ASC

606

S25

as a result of SEC Release

No.

10403.

The Company does

not

expect that the adoption of this guidance will have a material impact on its unaudited condensed consolidated financial statements.

February 2018,

the FASB issued ASU

No.

2018

02,

“Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income.” The ASU amends ASC

220,

Income Statement — Reporting Comprehensive Income, to “allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.” In addition, under the ASU, an entity will be required to provide certain disclosures regarding stranded tax effects. The ASU is effective for all entities for fiscal years beginning after

December 15, 2018,

and interim periods within those fiscal years. The Company does

not

expect that the adoption of this guidance will have a material impact on its unaudited condensed consolidated financial statements.

March 2018,

the FASB issued ASU

2018

— Income Taxes (Topic

740

): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

No.

118

(“ASU

2018

05”

), which amends the FASB Accounting Standards Codification and XBRL Taxonomy based on the Tax Cuts and Jobs Act (the “Act”) that was signed into law on

December 22, 2017

and Staff Accounting Bulletin

No.

118

(“SAB

118”

) that was released by the Securities and Exchange Commission. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and

may

additionally have international tax consequences for many companies that operate internationally. The Company does

not

believe this guidance will have a material impact on its unaudited condensed consolidated financial statements.

July 2018,

the FASB issued ASU

2018

10,

“Codification Improvements to Topic

842,

Leases.” The ASU addresses

separate issues which include, for example, a correction to a cross reference regarding residual value guarantees, a clarification regarding rates implicit in lease contracts, and a consolidation of the requirements about lease classification reassessments. The guidance also addresses lessor reassessments of lease terms and purchase options, variable lease payments that depend on an index or a rate, investment tax credits, lease terms and purchase options, transition guidance for amounts previously recognized in business combinations, and certain transition adjustments, among others. For entities that early adopted Topic

842,

the amendments are effective upon issuance of this Update, and the transition requirements are the same as those in Topic

842.

For entities that have

not

adopted Topic

842,

the effective date and transition requirements will be the same as the effective date and transition requirements in Topic

842.

The Company does

not

believe this guidance will have a material impact on its unaudited condensed consolidated financial statements.

July 2018,

the FASB issued ASU

2018

- Leases (Topic

842

): Targeted Improvements. The ASU simplifies transition requirements and, for lessors, provides a practical expedient for the separation of nonlease components from lease components. Specifically, the ASU provides: (

) an optional transition method that entities can use when adopting ASC

842

and (

) a practical expedient that permits lessors to

not

separate nonlease components from the associated lease component if certain conditions are met. For entities that have

not

adopted Topic

842

before the issuance of this Update, the effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Update

2016

02.

For entities that have adopted Topic

842

before the issuance of this Update, the transition and effective date of the amendments in this Update are as follows:

) The practical expedient

may

be elected either in the

first

reporting period following the issuance of this Update or at the original effective date of Topic

842

for that entity.

) The practical expedient

may

be applied either retrospectively or prospectively. All entities, including early adopters, that elect the practical expedient related to separating components of a contract in this Update must apply the expedient, by class of underlying asset, to all existing lease transactions that qualify for the expedient at the date elected. The Company does

not

believe this guidance will have a material impact on its unaudited condensed 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 unaudited condensed consolidated financial position, statements of operations and cash flows.

Use Of Estimates

The preparation of the Company’s financial statements in conformity with generally accepted accounting principles of the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Actual results could differ from those estimates.

Certain Risks And Uncertainties

The Company relies on cloud based hosting through a global accredited hosting provider. Management believes that alternate sources are available; however, disruption or termination of this relationship could adversely affect our operating results in the near-term.

Identifiable Intangible Assets

Identifiable intangible assets are recorded at cost and are amortized over

years. Similar to tangible property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount

may

not

be recoverable.

Impairment Of Long-Lived Assets

The Company classifies its long-lived assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – lived intangible assets.

Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets

may

not

be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company

first

compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is

not

recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and

third

-party independent appraisals, as considered necessary.

The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Company’s business strategy and its forecasts for specific market expansion.

Accounts Receivable And Concentration Of Risk

Accounts receivable, net is stated at the amount the Company expects to collect, or the net realizable value. The Company provides a provision for allowances that includes returns, allowances and doubtful accounts equal to the estimated uncollectible amounts. The Company estimates its provision for allowances based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the provision for allowances will change.

Cash And Cash Equivalents

Cash and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of

three

months or less and are readily convertible to known amounts of cash.

Property and Equipment

Property and equipment are stated at cost. Depreciation of property and equipment is provided using the straight-line method for financial reporting purposes at rates based on the estimated useful lives of the assets. Estimated useful lives range from

three

seven

years. Land is classified as held for sale when management has the ability and intent to sell, in accordance with ASC Topic

360

45.

Earnings Per Share

Basic (loss) earnings per share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per share.

FASB Accounting Standard Codification Topic

260

(“ASC

260”

), “Earnings Per Share,” requires that employee equity share options, non-vested shares and similar equity instruments granted to employees be treated as potential common shares in computing diluted earnings per share. Diluted earnings per share should be based on the actual number of options or shares granted and

not

yet forfeited, unless doing so would be anti-dilutive. The Company uses the “treasury stock” method for equity instruments granted in share-based payment transactions provided in ASC

260

to determine diluted earnings per share. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted earnings or loss per share as their impact was antidilutive.

Revenue Recognition

The Company recognizes revenue from providing hosting and integration services and licensing the use of its technology platform to its customers. The Company recognizes revenue when all of the following conditions are satisfied: (

) there is persuasive evidence of an arrangement; (

) the service has been provided to the customer (for licensing, revenue is recognized when the Company’s technology is used to provide hosting and integration services); (

) the amount of fees to be paid by the customer is fixed or determinable; and (

) the collection of fees is probable. We account for our multi-element arrangements, such as instances where we design a custom website and separately offer other services such as hosting, which are recognized over the period for when services are performed.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes in accordance with Accounting Standards Codification (“ASC”)

740,

“Income Taxes” (“ASC

740”

). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than

not

that some portion or all of the deferred tax assets will

not

be realized.