COMMITMENTS AND CONTINGENCIES

3 Months Ended

Nov. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 15 – COMMITMENTS AND CONTINGENCIES

Operating lease 

The Company leases office premises in Hong Kong, a display store in Hong Kong and another office in New York city under non-cancelable operating lease agreements with an option to renew the lease. The Company closed down the display store due to the COVID-19 impact and uncertainties of the economy in Hong Kong. The lease agreement for the display store, which has the original term of February 23, 2019 to February 22, 2022, was terminated on November 22, 2020. The cash lease expense for the three months ended November 30, 2020 and 2019 was $26,681 and $20,045, respectively. All leases are on a fixed payment basis. None of the leases include contingent rentals. The Company had lease commitment of $108,868 as of November 30, 2020, of which $81,348 was within one year.

In accordance with ASC 250-10-45-14, the adoption of ASC 842 lease accounting standard has resulted in $27,871 lease expenses for the three months ended November 30, 2020. 

As of November 30,	Commitments
2021	$	81,348
2022	$	27,520
Total Lease Payments	$	108,868
Less: imputed interest	$	(2,500	)
Present value of lease liabilities	$	106,368
Current portion of obligations under operating leases	$	79,075
Obligations under operating leases, non-current	$	27,293