NOTE 6 – INTANGIBLE ASSETS

6 Months Ended

Feb. 28, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 – INTANGIBLE ASSETS

NOTE 6 – INTANGIBLE ASSETS

As of February 28, 2022 and August 31, 2021, the balance of intangible assets are as follows;

	February 28, 2022			August 31, 2021
Patent license right	$	500,000		$	500,000
Movie copyrights - Love over the world		853,333			853,333
Sitcom copyrights - Chujian		640,000			640,000
Movie copyrights - Huafeng		422,400			422,400
Movie copyrights - Our treasures		936,960			936,960
Movie and TV series broadcast rights		2,439,840			2,439,840
Total cost		5,792,533			5,792,533
Less: Accumulated amortization		(3,166,862	)		(1,793,728	)
Intangible asset, net	$	2,625,671		$	3,998,805

Intangible assets include 1) a patent license right obtained from Guangzhou Shengshituhua Film and Television Company Limited as a worldwide license to a video synthesis and release system for mobile communications equipment (See Note 10), 2) copyrights for the movie “Love over the world”, “Huafeng”, “Our treasures” and the sitcom “Chujian”, and 3) broadcast rights for fifty-nine movie and TV series. The amortization expense for three months ended February 28, 2022, and February 28, 2021 was $686,567 and $283,481 respectively. The amortization expense for six months ended February 28, 2022, and February 28, 2021 was $1,373,134 and $424,207 respectively. 

On January 24, 2022, the company sold the mainland China copyright and broadcast right of the movie “Love over the world”, “Our treasures” and “Confusion” received $1,800,000. The Company remains to have all copyright of outside of mainland China.

The estimated amortization expense for each of the two succeeding years is as follows. The intangible assets as of February 28, 2022 will be fully amortized in the fiscal year of 2023.

Year ending February 28,		Amortization expense
	2022	$	1,348,133
	2023	$	1,277,539