NOTE 8 – LONG-TERM PREPAYMENT

6 Months Ended

Feb. 28, 2022

Accounting Policies [Abstract]

NOTE 8 – LONG-TERM PREPAYMENT

NOTE 8 – LONG-TERM PREPAYMENT

The long-term prepayment balance relates to movie copyrights and broadcast rights for movies as below:

Name of movie	February 28, 2022		August 31, 2021
Prepayment of Movie LuShang	$	256,000	$	256,000
Prepayment of Movie QiQingKuaiChe		838,400		505,600
Prepayment of Movie Too Simple		1,271,265		—
Total long-term prepayment	$	2,365,665	$	761,600

• In October 2019, the Company acquired a broadcast right of “Lushang” (English name: “On the Way”) from All In One Media Ltd for online streaming at a price of $256,000 This broadcast right permits online streaming globally and has been fully paid. “Lushang” has been approved for screening by the Chinese government in February 2022. Prepayment of $256,000 will be recognized as intangible assets upon available for online broadcasting after one month it’s released in mainland China cinemas.      

• In November 2019, the Company acquired a broadcast right of “Qi Qing Kuai Che” (English name: “Confusion”) from All In One Media Ltd for online streaming at a price of $115,200. This broadcast right only allows online streaming outside China. In July 2021, the Company acquired the full movie copyright for both domestic and overseas with an additional cost of $908,800, and the total price is $1,024,000. As of February 28, 2022, the Company made payment of $838,400 had the remaining balance paid in March 2022. This movie copyright will be recognized as intangible asset when released for online broadcast in March 2022. The Company sold the mainland China copyright and broadcast right of this movie in January 2022 (See Note 6).

• The Company acquired a movie copyright of “Too Simple” from Guang Dong Honor Pictures Ltd in July 2021 at a price of $1,271,265, which was to be paid in installments. As of February 28, 2022 and August 31, 2021, $1,271,265 and $644,785 was paid and recorded in long-term prepayment. On December 31, 2021, the Company entered into a termination contract with Guang Dong Honor Pictures Ltd to cancel the purchase of this movie copyright and will receive a full refund before May 31, 2022. The Company negotiated with Guang Dong Honor Pictures and orally agreed to resume the purchase transaction. The Company received the copy of the movie in May 2022 and will recognize this into intangible assets once the copyright received. The Company reclassified the amount paid to long-term prepayment account.