COMMITMENTS AND CONTINGENCIES

6 Months Ended

Feb. 28, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 16 – 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 six months ended February 28, 2021 and February 29, 2020 was $48,293 and $36,557, respectively. All leases are on a fixed payment basis. None of the leases include contingent rentals. The Company had lease commitment of $87,256 as of February 28, 2021, of which $76,248 is within one year.

In accordance with ASC 250-10-45-14, the adoption of ASC 842 lease accounting standard has resulted in $49,483 lease expenses for the six months ended February 28, 2021. 

As of February 28,	Commitments
2021	$	76,248
2022	$	11,008
Total Lease Payments	$	87,256
Less: imputed interest	$	(1,674)
Present value of lease liabilities	$	85,582
Current portion of obligations under operating leases	$	74,619
Obligations under operating leases, non-current	$	10,962