10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	FOR THE QUARTERLY PERIOD ENDED: May 31, 2017
OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

AB INTERNATIONAL GROUP CORP.

(Exact name of registrant as specified in its charter)

Nevada	37-1740351	5521
(State or Other Jurisdiction of Incorporation or Organization)	IRS Employer Identification Number	Primary Standard Industrial Classification Code Number

2360 CORPORATE CIRCLE, STE. 400

HENDERSON NV 89074

Tel. 852-635-91332

(Address and telephone number of principal executive offices)

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 last 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes x 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	o		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	x
			Emerging growth company	o
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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 29,650,000 shares of common stock as of July 14, 2017.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
ITEM 1	FINANCIAL STATEMENTS	3
	CONDENSED BALANCE SHEETS (unaudited)	3
	CONDENSED STATEMENTS OF OPERATIONS (unaudited)	4
	CONDENSED STATEMENTS OF CASH FLOWS (unaudited)	5
	NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)	6
ITEM 2.	MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	9
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	11
ITEM 4.	CONTROLS AND PROCEDURES	11
PART II. OTHER INFORMATION
ITEM 1	LEGAL PROCEEDINGS	12
ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	12
ITEM 3	DEFAULTS UPON SENIOR SECURITIES	12
ITEM 4	MINE SAFETY DISCLOSURES	12
ITEM 5	OTHER INFORMATION	12
ITEM 6	EXHIBITS	13
	SIGNATURES	14

 

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AB INTERNATIONAL GROUP CORP.

CONDENSED BALANCE SHEETS

(Unaudited)

	May 31, 2017			August 31, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	404,426		$	166,826
Accounts receivable		17,024			28,200
Prepaid expenses		35,835			22,501
Net assets of discontinued operations		-			587
Total Current Assets		457,285			218,114
Intangible assets, net		219,624			96,384
TOTAL ASSETS	$	676,909		$	314,498
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	561		$	77,226
Accrued payroll		4,100			-
Due to shareholder		1,613			2,797
Tax payable		4,518			-
Total Current Liabilities		10,792			80,023
Stockholders’ Equity
Common stock, $0.001 par value, 75,000,000 shares authorized;
29,650,000 and 26,150,000 shares issued and outstanding		29,650			26,150
Additional paid-in capital		631,693			285,193
Deficit from discontinued operations		(40,189	)		(40,189	)
Retained Earnings (accumulated deficit)		44,963			(36,679	)
Total Stockholders’ Equity		666,117			234,475
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	676,909		$	314,498

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

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AB INTERNATIONAL GROUP CORP.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended
	May 31,						May 31,
	2017			2016			2017			2016
Revenue	$	67,968		$	-		$	195,221		$	-
Cost of revenue		5,000			-			15,000			-
Gross Profit		62,968			-			180,221			-
OPERATING EXPENSES
General and administrative expenses		24,872			21,520			71,561			32,080
Related party salary and wages		7,500			-			22,500			-
Total Operating Expenses		32,372			21,520			94,061			32,080
INCOME (LOSS) FROM CONTINUED OPERATIONS		30,596			(21,520	)		86,160			(32,080	)
Income Tax Provision		(3,980	)		-			(4,518	)		-
Net Income (loss) from continuing operations		26,616			(21,520	)		81,642			(32,080	)
LOSS FROM DISCONTINUED OPERATIONS		-			-			-			(627	)
NET INCOME (LOSS)	$	26,616		$	(21,520	)	$	81,642		$	(32,707	)
NET INCOME (LOSS) FROM CONTINUED OPERATIONS PER SHARE: BASIC AND DILUTED	$	0.00		$	(0.00	)	$	0.00		$	(0.01	)
LOSS FROM DISONTINUED OPERATIONS PER SHARE: BASIC AND DILUTED	$	-		$	-		$	-		$	(0.00	)
NET INCOME (LOSS) PER SHARE: BASIC AND DILUTED	$	0.00		$	(0.00	)	$	0.00		$	(0.01	)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED		27,194,022			11,191,739			26,501,832			5,996,277

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

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AB INTERNATIONAL GROUP CORP.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended
	May 31,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) from continuing operations	$	81,642		$	(32,080	)
Net loss from discontinued operations, net of tax benefit		-			(627	)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Consulting fees paid in stock		35,000
Amortization of intangible asset		15,000			-
Changes in operating assets and liabilities:
Accounts receivable		11,176			-
Prepaid expenses		(13,334	)		-
Accounts payable and accrued liabilities		(76,665	)		-
Accrued payroll		4,100			-
Tax payable		4,518			-
Change in Assets (Liabilities) from discontinued operations		587			7,540
Net cash provided by (used in) operating activities		62,024			(25,167	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of intangible asset		(138,240	)		-
Net cash used in investing activities		(138,240	)		-
CASH FLOWS FROM FINANCING ACTIVITIES
Due to shareholder		(1,184	)		300
Proceeds from sale of common stock		315,000			92,000
Net cash provided by financing activities		313,816			92,300
Net increase in cash and cash equivalents		237,600			67,133
Cash and cash equivalents - beginning of period		166,826			5,857
Cash and cash equivalents - end of period	$	404,426		$	72,990
Supplemental Cash Flow Disclosures
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-
Non-Cash Investing and Financing Activity:
Computer equipment transferred to previous shareholder	$	-		$	563
Loans forgiven by previous shareholder	$	-		$	22,143
Issuance of common stock for services	$	35,000		$	-

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

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

May 31, 2017

NOTE 1 – ORGANIZATION AND BUSINESS OPERATIONS

AB INTERNATIONAL GROUP CORP. (the “Company”, “we” or “us”) was incorporated under the laws of the State of Nevada on July 29, 2013 (“Inception”). The Company’s fiscal year end is August 31.

On January 22, 2016, the Company's former sole officer, who owned 83% of the Company's outstanding common shares, sold all his common shares to un-related investors. Subsequently, the Company modified its business plan. Currently, the Company is focused on the acquisition and development of intellectual property. The Company has licensed certain intellectual property and is in the process of using the underlying technology to create a smartphone app marketing engine to be used for movie trailer promotion in China. To date, all revenues have been transacted in Hong Kong Dollars.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

The accompanying condensed financial statements of the Company have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the periods presented. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Form 10-K for the year ended August 31, 2016. The results of operations for the period ended May 31, 2017, are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2017.

The preparation of the financial statements in conformity with generally accepted accounting principles, in the United States of America, require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Intangible Assets

Intangible assets are stated at cost and depreciated as follows:

- Mobile application product: straight-line method over the estimated life of the asset, which has been determined by management to be 5 years

- Movie copyrights: income forecast method for a period not to exceed 10 years

The intangible assets were acquired from a third-party provider. Amortized costs of the intangible asset are recorded as cost of sales, as the intangible asset is directly related to generation of revenues in the Company.

 

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Impairment of Intangible Assets

We account for goodwill and intangible assets in accordance with ASC 350 "Intangibles-Goodwill and Other" ("ASC 350"). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. In addition, ASC 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including the identification of reporting units; assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates and could also affect the determination of fair value and/or goodwill impairment at future reporting dates.

No impairment losses have been incurred by the Company.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” ("ASC-605"), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company has recognized the revenues associated with mobile app sales once the criteria has been met, the product has been delivered, and collectability is reasonably assured from the individual customer. To date, the Company’s sales primarily involved transactions whereby the customers utilized the Company’s mobile applications to interact with potential moviegoers, and direct the users of the applications to movie trailer websites and applications.

Accounts Receivable

Accounts receivable consist of amounts due from promotional services provided through app sales. Amounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. No amount for bad debt expense has been recorded by the Company.

Foreign Currency Translation 

The Company’s functional currency is the US dollar. Certain balances and transactions included in the financial statements are in Hong Kong dollars and are translated into US dollar using current exchange rates or the spot rate, if applicable. Gains and losses from foreign currency translations are immaterial for separate classification for the period ending May 31, 2017.

Basic and Diluted Income (Loss) Per Share

The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

No potentially dilutive debt or equity instruments were issued or outstanding during the nine month periods ended May 31, 2017 and 2016.

Recent accounting pronouncements

Management has reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company other than those relating to the revised requirements related to revenue recognition, which are required for annual periods beginning subsequent to December 15, 2016.

 

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NOTE 3 – INTANGIBLE ASSETS

As of May 31, 2017, and August 31, 2017, the balance of intangible assets are as follows;

	May 31,			August 31,
	2017			2016
Mobile app	$	100,000		$	100,000
Copyright		138,240			-
		238,240			100,000
Accumulated amortization		(18,616	)		(3,616	)
Intangible asset, net	$	219,624		$	96,384

Amortization expenses for nine months ended May 31, 2017, and 2016, was $$15,000 and $0, respectively.

During the nine months ended May 31, 2017, the Company purchased the copyright and all other rights in a film named “Gong Fu Nv Pai” for $134,280 cash from a non-related party.

NOTE 4 – RELATED PARTY TRANSACTIONS

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

During the nine-month period ended May 31, 2017, a shareholder was repaid $1,184 for operating expenses. As at May 31, 2017 and August 31, 2016, the Company owed $1,613 and $2,797 to this shareholder, respectively. The amounts are due on demand, unsecured, and non-interest bearing.

NOTE 5 – EQUITY

The Company has 75,000,000 shares of common stock authorized with a par value of $ 0.001 per share.

During the nine months ended May 31, 2017, the company issued common stock, as follows;

· 3,000,000 common shares, for proceeds of $300,000 to a related party who is a major shareholder.

· 150,000 common shares, for proceeds of $15,000 to an unrelated party.

· 350,000 common shares, for services of $35,000 to two unrelated parties.

As at May 31, 2017 and August 31, 2016, 29,650,000 and 26,150,000 issued and outstanding shares of common stock were held by approximately 13 shareholders of record.

NOTE 6 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to May 31, 2017 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements except below;

On June 1, 2017, the Company entered into patent license agreement. The agreement shall be for a term of 5 years commencing on the effective date and the Company shall pay the licensor a non-refundable, up-from payment of $500,000 and a royalty of 20% of the gross revenue realized from it sale of licensed products and sub-licensing of others under the agreement.

 

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the "Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

GENERAL

We were incorporated in the State of Nevada on July 29, 2013. We initially planned to be in the business of purchasing used cars in the United States and selling them to customers in Kyrgyzstan.

On January 22, 2016, the Company's former sole officer, who owned 83% of the Company's outstanding common shares, sold all his common shares to un-related investor Jianli Deng, the Company's current Chief Executive Officer and sole Director. After the stock sale, the Company modified its business plan and presently focuses on revenues generated from a mobile app marketing engine, mobile communications, and patent acquisitions.

We may borrow funds from our officers and shareholders for working capital, however, they have no formal commitment, arrangement or legal obligation to advance or loan funds to the Company.

RESULTS OF OPERATION

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

THREE MONTH PERIOD ENDED MAY 31, 2017 COMPARED TO THE THREE MONTH PERIOD ENDED MAY 31, 2016

REVENUE. During the three month periods ended May 31, 2017 and May 31, 2016 we generated $67,968 and $0 of revenue, respectively.

COST OF SALES. During the three month periods ended May 31, 2017 and May 31, 2016 we incurred $5,000 and $0 of cost of sales, respectively.

OPERATING EXPENSES. During the three month periods ended May 31, 2017 and May 31, 2016, we incurred general and administrative expenses of $24,872 and $21,520, respectively, and related party wages of $7,500 and $0, respectively. General and administrative expenses incurred were generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses.

 

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NET INCOME. Our net income for the three month period ended May 31, 2017 was $26,616 compared to a net loss of $21,520 from continuing operations during the three month period ended May 31, 2016.

NINE MONTH PERIOD ENDED MAY 31, 2017 COMPARED TO THE NINE MONTH PERIOD ENDED MAY 31, 2016

REVENUE. During the nine month periods ended May 31, 2017 and May 31, 2016 we generated $195,221 and $0 of revenue, respectively.

COST OF SALES. During the nine month periods ended May 31, 2017 and May 31, 2016 we incurred $15,000 and $0 of cost of revenue, respectively.

OPERATING EXPENSES. During the nine month periods ended May 31, 2017 and May 31, 2016, we incurred general and administrative expenses of $71,561 and $32,080, respectively, and related party wages of $22,500 and $0, respectively. General and administrative expenses incurred were generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses.

NET INCOME. Our net income for the nine month period ended May 31, 2017 was $81,642 compared to a net loss of $32,080 from continuing operations and a net loss from discontinued operations of $627 during the nine month period ended May 31, 2016.

LIQUIDITY AND CAPITAL RESOURCES

As of May 31, 2017, our total assets were $676,909 compared to $314,498 in total assets at August 31, 2016. Total assets as of May 31, 2017 comprised cash of $404,426, accounts receivable of $17,024, prepaid expenses of $35,835 and $219,624 in intangible assets while as at August 31, 2016 total assets comprised cash of $166,826, accounts receivable of $28,200, prepaid expenses of $22,501 and $96,384 in intangible assets. As of May 31, 2017 and August 31, 2016, our current liabilities were $10,254 and $80,023 respectively.

Stockholders' equity was $666,117 as of May 31, 2017 compared to $234,475 as of August 31, 2016.

CASH FLOWS FROM OPERATING ACTIVITIES

We have just begun generating positive cash flows from operating activities. For the nine month period ended May 31, 2017, net cash flows from operating activities were $62,024 compared to net cash flows used in operating activities was $25,167 for the nine month period ended May 31, 2016.

CASH FLOWS FROM INVESTING ACTIVITIES

We used $138,240 in investment activities in the three months ended May 31, 2017, and we neither generated, nor used, funds in investing activities during the three months ended May 31, 2016.

CASH FLOWS FROM FINANCING ACTIVITIES

We generated $313,816 in net cash from financing activities during the nine months ended May 31, 2017, compared to generating $92,300 in net cash from financing activities during the nine months ended May 31, 2016.

PLAN OF OPERATION AND FUNDING

We expect that working capital requirements will continue to be funded through a combination of cash flow from operations, our existing funds, further issuances of securities and loans from our principal shareholder. Our working capital requirements are expected to increase in line with the growth of our business.

 

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Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next 12 months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds from business operations and the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to developmental expenses associated with a start-up business. We intend to finance these expenses with further issuances equity and/or debt securities. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

MATERIAL COMMITMENTS

As of May 31, 2017, we had no material commitments.

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not intend to purchase any significant equipment during the next twelve months.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

GOING CONCERN

The independent auditors' audit report accompanying our August 31, 2016 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable for smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and with the participation of our principal executive officer and principal financial officer of the effectiveness of the design and operation of our disclosure controls and procedures as of May 31, 2017. Based on that evaluation, our management concluded that our disclosure controls and procedures were effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the three-month period ended May 31, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On May 5, 2017, the Company sold 3,000,000 shares of its common stock to a related party (main shareholder of the Company) at $0.01 per share for total proceeds of $300,000. The shares were sold pursuant to the exemption from registration set forth in Rule 506 of Regulation D as promulgated under the Securities Act of 1933, as amended, constitute "restricted securities" as that term is defined in Rule 144 promulgated under the Act, and contains a standard restrictive legend.

On May 5, 2017, the Company sold 150,000 shares of its common stock to a unrelated party at $0.01 per share for total proceeds of $15,000. The shares were sold pursuant to the exemption from registration set forth in Rule 506 of Regulation D as promulgated under the Securities Act of 1933, as amended, constitute "restricted securities" as that term is defined in Rule 144 promulgated under the Act, and contains a standard restrictive legend.

On May 18, 2017, the Company issued 350,000 shares of its common stock to two unrelated parties in consideration for services valued at $35,000. The shares were issued pursuant to the exemption from registration set forth in Rule 506 of Regulation D as promulgated under the Securities Act of 1933, as amended, constitute "restricted securities" as that term is defined in Rule 144 promulgated under the Act, and contains a standard restrictive legend.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

There has not been any material default in any Company indebtedness. The Company has not issued any preferred stock or other senior securities.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to our Company.

ITEM 5. OTHER INFORMATION

None.

 

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ITEM 6. EXHIBITS

Exhibits:

31.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
32.1	Certifications pursuant to Exchange Act Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
101	Interactive data files pursuant to Rule 405 of Regulation S-T.

 

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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AB INTERNATIONAL GROUP CORP.
Dated: July 14, 2017	By:	/s/ Jianli Deng
		Jianli Deng
		President and Chief Executive Officer
		and Chief Financial Officer

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Jianli Deng, certify that:

1.	I have reviewed this Form 10-Q quarterly report for the three month period ended May 31, 2017, of AB International Group Corp.;
2.	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;
3.	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;
4.	I am 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:

(a)	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;
(b)	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;
(c)	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
(d)	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

5. I have disclosed, based on my 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):

(a)	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
(b)	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.

Dated: July 14, 2017	By:	/s/ Jianli Deng
		Jianli Deng
		President and Chief Executive Officer and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

In connection with the Quarterly Report of AB International Group Corp. (the "Company") on Form 10-Q for the three month period ended May 31, 2017, filed with the Securities and Exchange Commission (the "Report"), the undersigned hereby certifies, in his capacity as an officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Company.

Dated: July 14, 2017	By:	/s/ Jianli Deng
		Jianli Deng
		President and Chief Executive Officer and Chief Financial Officer

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Document and Entity Information - shares	9 Months Ended
	May 31, 2017	Jul. 14, 2017
Document and Entity Information:
Entity Registrant Name	AB INTERNATIONAL GROUP CORP.
Entity Central Index Key	0001605331
Trading Symbol	abqq
Current Fiscal Year End Date	--08-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		29,650,000
Document Type	10-Q
Document Period End Date	May 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

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CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	May 31, 2017	Aug. 31, 2016
Current Assets
Cash and cash equivalents	$ 404,426	$ 166,826
Accounts receivable	17,024	28,200
Prepaid expenses	35,835	22,501
Net assets of discontinued operations		587
Total Current Assets	457,285	218,114
Intangible assets, net	219,624	96,384
TOTAL ASSETS	676,909	314,498
Current Liabilities
Accounts payable and accrued liabilities	561	77,226
Accrued payroll	4,100
Due to shareholder	1,613	2,797
Tax payable	4,518
Total Current Liabilities	10,792	80,023
Stockholders' Equity
Common stock, $0.001 par value, 75,000,000 shares authorized; 29,650,000 and 26,150,000 shares issued and outstanding	29,650	26,150
Additional paid-in capital	631,693	285,193
Deficit from discontinued operations	(40,189)	(40,189)
Retained Earnings (accumulated deficit)	44,963	(36,679)
Total Stockholders' Equity	666,117	234,475
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 676,909	$ 314,498

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CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	May 31, 2017	Aug. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	29,650,000	29,650,000
Common stock, shares outstanding	26,150,000	26,150,000

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CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Income Statement [Abstract]
Revenue	$ 67,968		$ 195,221
Cost of revenue	5,000		15,000
Gross Profit	62,968		180,221
OPERATING EXPENSES
General and administrative expenses	24,872	$ 21,520	71,561	$ 32,080
Related party salary and wages	7,500		22,500
Total Operating Expenses	32,372	21,520	94,061	32,080
INCOME (LOSS) FROM CONTINUED OPERATIONS	30,596	(21,520)	86,160	(32,080)
Income Tax Provision	(3,980)		(4,518)
Net Income (loss) from continuing operations	26,616	(21,520)	81,642	(32,080)
LOSS FROM DISCONTINUED OPERATIONS				(627)
NET INCOME (LOSS)	$ 26,616	$ (21,520)	$ 81,642	$ (32,707)
NET INCOME (LOSS) FROM CONTINUED OPERATIONS PER SHARE: BASIC AND DILUTED (in dollars per share)	$ 0.00	$ (0.00)	$ 0.00	$ (0.01)
LOSS FROM DISONTINUED OPERATIONS PER SHARE: BASIC AND DILUTED (in dollars per share)				(0.00)
NET INCOME (LOSS) PER SHARE: BASIC AND DILUTED (in dollars per share)	$ 0.00	$ (0.00)	$ 0.00	$ (0.01)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED (in shares)	27,194,022	11,191,739	26,501,832	5,996,277

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CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	May 31, 2017	May 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) from continuing operations	$ 81,642	$ (32,080)
Net loss from discontinued operations, net of tax benefit		(627)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Consulting fees paid in stock	35,000
Amortization of intangible asset	15,000
Changes in operating assets and liabilities:
Accounts receivable	11,176
Prepaid expenses	(13,334)
Accounts payable and accrued liabilities	(76,665)
Accrued payroll	4,100
Tax payable	4,518
Change in Assets (Liabilities) from discontinued operations	587	7,540
Net cash provided by (used in) operating activities	62,024	(25,167)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of intangible asset	(138,240)
Net cash used in investing activities	(138,240)
CASH FLOWS FROM FINANCING ACTIVITIES
Due to shareholder	(1,184)	300
Proceeds from sale of common stock	315,000	92,000
Net cash provided by financing activities	313,816	92,300
Net increase in cash and cash equivalents	237,600	67,133
Cash and cash equivalents - beginning of period	166,826	5,857
Cash and cash equivalents - end of period	404,426	72,990
Supplemental Cash Flow Disclosures
Cash paid for interest
Cash paid for income taxes
Non-Cash Investing and Financing Activity:
Computer equipment transferred to previous shareholder		563
Loans forgiven by previous shareholder		$ 22,143
Issuance of common stock for services	$ 35,000

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ORGANIZATION AND BUSINESS OPERATIONS

9 Months Ended

May 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BUSINESS OPERATIONS

NOTE 1 – ORGANIZATION AND BUSINESS OPERATIONS

AB INTERNATIONAL GROUP CORP. (the “Company”, “we” or “us”) was incorporated under the laws of the State of Nevada on July 29, 2013 (“Inception”). The Company’s fiscal year end is August 31.

On January 22, 2016, the Company's former sole officer, who owned 83% of the Company's outstanding common shares, sold all his common shares to un-related investors. Subsequently, the Company modified its business plan. Currently, the Company is focused on the acquisition and development of intellectual property. The Company has licensed certain intellectual property and is in the process of using the underlying technology to create a smartphone app marketing engine to be used for movie trailer promotion in China. To date, all revenues have been transacted in Hong Kong Dollars.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

May 31, 2017

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

The accompanying condensed financial statements of the Company have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the periods presented. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Form 10-K for the year ended August 31, 2016. The results of operations for the period ended May 31, 2017, are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2017.

The preparation of the financial statements in conformity with generally accepted accounting principles, in the United States of America, require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Intangible Assets

Intangible assets are stated at cost and depreciated as follows:

- Mobile application product: straight-line method over the estimated life of the asset, which has been determined by management to be 5 years

- Movie copyrights: income forecast method for a period not to exceed 10 years

The intangible assets were acquired from a third-party provider. Amortized costs of the intangible asset are recorded as cost of sales, as the intangible asset is directly related to generation of revenues in the Company.

Impairment of Intangible Assets

We account for goodwill and intangible assets in accordance with ASC 350 "Intangibles-Goodwill and Other" ("ASC 350"). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. In addition, ASC 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including the identification of reporting units; assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates and could also affect the determination of fair value and/or goodwill impairment at future reporting dates.

No impairment losses have been incurred by the Company.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” ("ASC-605"), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company has recognized the revenues associated with mobile app sales once the criteria has been met, the product has been delivered, and collectability is reasonably assured from the individual customer. To date, the Company’s sales primarily involved transactions whereby the customers utilized the Company’s mobile applications to interact with potential moviegoers, and direct the users of the applications to movie trailer websites and applications.

Accounts Receivable

Accounts receivable consist of amounts due from promotional services provided through app sales. Amounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. No amount for bad debt expense has been recorded by the Company.

Foreign Currency Translation 

The Company’s functional currency is the US dollar. Certain balances and transactions included in the financial statements are in Hong Kong dollars and are translated into US dollar using current exchange rates or the spot rate, if applicable. Gains and losses from foreign currency translations are immaterial for separate classification for the period ending May 31, 2017.

Basic and Diluted Income (Loss) Per Share

The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

No potentially dilutive debt or equity instruments were issued or outstanding during the nine month periods ended May 31, 2017 and 2016.

Recent accounting pronouncements

Management has reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company other than those relating to the revised requirements related to revenue recognition, which are required for annual periods beginning subsequent to December 15, 2016.

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INTANGIBLE ASSETS

9 Months Ended

May 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 3 – INTANGIBLE ASSETS

As of May 31, 2017, and August 31, 2017, the balance of intangible assets are as follows;

	May 31,			August 31,
	2017			2016
Mobile app	$	100,000		$	100,000
Copyright		138,240			-
		238,240			100,000
Accumulated amortization		(18,616	)		(3,616	)
Intangible asset, net	$	219,624		$	96,384

Amortization expenses for nine months ended May 31, 2017, and 2016, was $$15,000 and $0, respectively.

During the nine months ended May 31, 2017, the Company purchased the copyright and all other rights in a film named “Gong Fu Nv Pai” for $134,280 cash from a non-related party.

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RELATED PARTY TRANSACTIONS

9 Months Ended

May 31, 2017

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 4 – RELATED PARTY TRANSACTIONS

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

During the nine-month period ended May 31, 2017, a shareholder was repaid $1,184 for operating expenses. As at May 31, 2017 and August 31, 2016, the Company owed $1,613 and $2,797 to this shareholder, respectively. The amounts are due on demand, unsecured, and non-interest bearing.

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EQUITY

9 Months Ended

May 31, 2017

Equity [Abstract]

EQUITY

NOTE 5 – EQUITY

The Company has 75,000,000 shares of common stock authorized with a par value of $ 0.001 per share.

During the nine months ended May 31, 2017, the company issued common stock, as follows;

· 3,000,000 common shares, for proceeds of $300,000 to a related party who is a major shareholder.

· 150,000 common shares, for proceeds of $15,000 to an unrelated party.

· 350,000 common shares, for services of $35,000 to two unrelated parties.

As at May 31, 2017 and August 31, 2016, 29,650,000 and 26,150,000 issued and outstanding shares of common stock were held by approximately 13 shareholders of record.

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SUBSEQUENT EVENTS

9 Months Ended

May 31, 2017

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 6 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to May 31, 2017 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements except below;

On June 1, 2017, the Company entered into patent license agreement. The agreement shall be for a term of 5 years commencing on the effective date and the Company shall pay the licensor a non-refundable, up-from payment of $500,000 and a royalty of 20% of the gross revenue realized from it sale of licensed products and sub-licensing of others under the agreement.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

May 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

The accompanying condensed financial statements of the Company have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the periods presented. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Form 10-K for the year ended August 31, 2016. The results of operations for the period ended May 31, 2017, are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2017.

The preparation of the financial statements in conformity with generally accepted accounting principles, in the United States of America, require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Intangible Assets

Intangible Assets

Intangible assets are stated at cost and depreciated as follows:

- Mobile application product: straight-line method over the estimated life of the asset, which has been determined by management to be 5 years

- Movie copyrights: income forecast method for a period not to exceed 10 years

The intangible assets were acquired from a third-party provider. Amortized costs of the intangible asset are recorded as cost of sales, as the intangible asset is directly related to generation of revenues in the Company.

Impairment of Intangible Assets

Impairment of Intangible Assets

We account for goodwill and intangible assets in accordance with ASC 350 "Intangibles-Goodwill and Other" ("ASC 350"). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. In addition, ASC 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including the identification of reporting units; assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates and could also affect the determination of fair value and/or goodwill impairment at future reporting dates.

No impairment losses have been incurred by the Company.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” ("ASC-605"), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company has recognized the revenues associated with mobile app sales once the criteria has been met, the product has been delivered, and collectability is reasonably assured from the individual customer. To date, the Company’s sales primarily involved transactions whereby the customers utilized the Company’s mobile applications to interact with potential moviegoers, and direct the users of the applications to movie trailer websites and applications.

Accounts receivable

Accounts Receivable

Accounts receivable consist of amounts due from promotional services provided through app sales. Amounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. No amount for bad debt expense has been recorded by the Company.

Foreign Currency Translation

Foreign Currency Translation 

The Company’s functional currency is the US dollar. Certain balances and transactions included in the financial statements are in Hong Kong dollars and are translated into US dollar using current exchange rates or the spot rate, if applicable. Gains and losses from foreign currency translations are immaterial for separate classification for the period ending May 31, 2017.

Basic and Diluted Income (Loss) Per Share

Basic and Diluted Income (Loss) Per Share

The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

No potentially dilutive debt or equity instruments were issued or outstanding during the nine month periods ended May 31, 2017 and 2016.

Recent accounting pronouncements

Recent accounting pronouncements

Management has reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company other than those relating to the revised requirements related to revenue recognition, which are required for annual periods beginning subsequent to December 15, 2016.

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INTANGIBLE ASSETS (Tables)

9 Months Ended

May 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

	May 31,			August 31,
	2017			2016
Mobile app	$	100,000		$	100,000
Copyright		138,240			-
		238,240			100,000
Accumulated amortization		(18,616	)		(3,616	)
Intangible asset, net	$	219,624		$	96,384

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ORGANIZATION AND BUSINESS OPERATIONS (Detail Textuals)	9 Months Ended
	May 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
State Country Name	State of Nevada
Entity Incorporation, Date of Incorporation	Jul. 29, 2013
Percentage ownership by former sole officer	83.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals)	9 Months Ended
	May 31, 2017
Mobile application product
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of intangible asset	5 years
Finite-lived intangible assets, amortization method	Straight-line method
Movie copyrights
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, amortization method	Income forecast method
Movie copyrights | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of intangible asset	10 years

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INTANGIBLE ASSETS (Details) - USD ($)	May 31, 2017	Aug. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	$ 238,240	$ 100,000
Accumulated amortization	(18,616)	(3,616)
Intangible asset, net	219,624	96,384
Mobile app
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	100,000	100,000
Copyright
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	$ 138,240

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INTANGIBLE ASSETS (Detail Textuals)	9 Months Ended
	May 31, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible asset	$ 15,000
Purchased copyright rights film named of Gong Fu Nv Pai	$ 134,280

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RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)	9 Months Ended
	May 31, 2017	May 31, 2016	Aug. 31, 2016
Related Party Transactions [Abstract]
Shareholder repaid for operating expenses	$ (1,184)	$ 300
Due to shareholder	$ 1,613		$ 2,797

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EQUITY (Detail Textuals)	9 Months Ended
	May 31, 2017 USD ($) Unrelated_Party $ / shares shares	May 31, 2016 USD ($)	Aug. 31, 2016 $ / shares shares
Equity [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.001		$ 0.001
Common stock, shares authorized	75,000,000		75,000,000
Proceeds from sale of common stock | $	$ 315,000	$ 92,000
Issuance of common stock for services | $	$ 35,000
Common stock, shares issued	29,650,000		29,650,000
Common stock, shares outstanding	26,150,000		26,150,000
Unrelated party
Equity [Line Items]
Issuance of common shares	150,000
Proceeds from sale of common stock | $	$ 15,000
Unrelated parties
Equity [Line Items]
Issuance of common shares	350,000
Issuance of common stock for services | $	$ 35,000
Number of unrelated parties | Unrelated_Party	2
Major shareholder
Equity [Line Items]
Issuance of common shares	3,000,000
Proceeds from sale of common stock | $	$ 300,000

XML

SUBSEQUENT EVENTS (Detail Textuals) - SUBSEQUENT EVENTS	Jun. 01, 2017 USD ($)
Subsequent Event [Line Items]
Terms of patent license agreement	5 years
Payment to licensor non refundable, up-from payment	$ 500,000
Percentage of royalty	20.00%