INTANGIBLE ASSETS

12 Months Ended

Aug. 31, 2017

Notes to Financial Statements

NOTE 3 – INTANGIBLE ASSETS

As of August 31, 2017, and August 31, 2016, the balance of intangible assets are as follows;

	August 31,			August 31,
	2017			2016
Mobile app	$	100,000		$	100,000
Patent		500,000			-
Copyright		138,240			-
		738,240			100,000
Accumulated amortization		(55,528	)		(3,616	)
Intangible asset, net	$	682,712		$	96,384

Amortization expenses for the years ended August 31, 2017, and 2016, was $51,912 and $3,616, respectively.

On June 1, 2017, the Company entered into patent license agreement with a related party. 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. During the year ended August 31, 2017, the Company has paid $361,760 and $138,240 was recorded as accounts payable. On October 10, 2017, the Company fully paid $138,240.

During the year ended August 31, 2017, the Company purchased the copyright and all other rights in a film named “Gong Fu Nv Pai” for $138,240 cash from a non-related party.