SUBSEQUENT EVENTS

6 Months Ended

Feb. 29, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to August 31, 2019 to the date these financial statements were issued.

In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world in the first quarter of 2020 has caused significant volatility in the U.S. and international markets. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the Company’s financial position, operations and cash flows. It is too early to quantify the impact this situation will have on company revenue and profits at this time. Possible areas that may be affected include, but are not limited to, disruption to the Company’s customers and revenue, labor workforce, unavailability of supplies used in operations, etc. Accordingly, Management is evaluating the Company’s liquidity position, reduction in revenues, and reviewing the analysis of the Company’s financial performance as the Company seeks to withstand the uncertainty related to the coronavirus. As no large-crowd gathering has been allowed since the outbreak of COVID-19, the Company has not generated any revenue from the Ai Bian Quan Qiu performance matching platform. Consequently, the Company has decided to impair 80% of the intangible asset carrying value related to the Ai Bian Quan Qiu performance matching platform and its Wechat official account, given that it is uncertain whether this platform will continue generating any revenue.

Due to the impact of COVID -19, All In One Media Ltd delayed paying the Company a loan principal balance of $1,049,600 with a due date of March 3, 2020 per the loan agreement entered on September 4, 2019. This loan balance is recorded as note receivable on the Company’s balance sheet. On May 4th, 2020, All In One Media paid off this loan.

On March 12, 2020, the Company entered into a Securities Purchase Agreement with Armada Capital Partners, LLC (“Armada”) pursuant to which the Company issued and sold to the Armada a convertible promissory note in the principal amount of $38,500. The Company received $33,000 after payment of costs. In connection with the issuance of the Armada Note, the Company granted Armada a five-year cashless warrant (the “Warrant”) to purchase 4,200 shares of the Company’s common stock at an exercise price of $12.50 per share.