NOTE 6 – INTANGIBLE ASSETS

12 Months Ended

Aug. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 – INTANGIBLE ASSETS

NOTE 6 – INTANGIBLE ASSETS

As of August 31, 2022 and 2021, the balance of intangible assets are as follows:

	August 31, 2022			August 31, 2021
Patent license right	$	—		$	500,000
Movie copyrights - Love over the world		853,333			853,333
Sitcom copyrights - Chujian		640,000			640,000
Movie copyrights - A story as a picture		422,400			422,400
Movie copyrights - Our treasures		936,960			936,960
Movie broadcast right- On the way		256,000			—
Movie copyrights - Too simple		1,271,265			—
Movie copyrights - Confusion		1,024,000			—
TV drama copyright - 15 episodes		190,000			—
Movie and TV series broadcast rights		2,439,840			2,439,840
NFT MMM platform		280,000			—
Total cost		8,313,798			5,792,533
Accumulated amortization		(4,515,516	)		(1,793,728	)
Intangible assets, net	$	3,798,282		$	3,998,805

Intangible assets include: 1) a patent license right (expired on 6/1/2022) obtained from Guangzhou Shengshituhua Film and Television Company Limited as a worldwide license to a video synthesis and release system for mobile communications equipment; 2) copyrights for the movies and TV drama series; 3) broadcast rights for fifty-nine movie and TV series; and 4) On April 27, 2022, the Company purchased a unique Non-Fungible Token movie and music marketplace, named as the NFT MMM, from Stareastnet Portal Limited, an unrelated party, which including an APP“NFT MMM” on Google Play, and full right to the website: starestnet.io. 

In July 2021, the Company acquired a movie copyright of “Too Simple” from Guang Dong Honor Pictures Ltd at a price of $1,271,265. As of August 31, 2021, $644,785 was paid and recorded as purchase deposit for intangible asset. On December 31, 2021, both parties entered into a termination contract to cancel the agreement for a full refund before May 31, 2022. Per further negotiation, on June 23, 2022, both parties agreed to resume the purchase transaction. The Company paid the remaining balance in fiscal 2022 and transferred the balance to intangible asset when it obtained the copyright of the movie. movie.

The estimated amortization expense for the years ended August 31, 2022 and 2021 was $3,221,789 and $1,468,728, respectively. Estimated future amortization expense is as follows:

Twelve months ending August 31,	Amortization expense
2023	$	2,788,171
2024		1,010,111
Total	$	3,798,282

On January 24, 2022, the Company sold the mainland China copyrights and broadcast rights of the movie “Love over the world”, “Our treasures” and “Confusion” to a third party for a price of $1,800,000.

On May 2, 2022, the Company sold the mainland China copyright and broadcast right of the movie “A story as a picture” to a third party for a price of $128,000. The Company remains to have all copyright of outside of mainland China.

On May 3, 2022, the Company sold the mainland China broadcast right of the movie “On the Way” to a third party for a price of $128,000. The Company remains to have all copyright of outside of mainland China.

On June 23, 2022, the Company sold the mainland China copyright and broadcast right of the movie “Too Simple” to Zestv Studios Limited, a Hong Kong entity 100% owned by the Chief Executive Officer Chiyuan Deng, for a price of $750,000. The Company remains to have all copyright of outside of mainland China.

On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFTMM platform and platform data on both app and website for one year starting from August 20, 2022 for a monthly license fee of $60,000. Pursuant to the agreement, the Company also charged one time implementation service and consulting fee of $100,000. The Company remains the ownership and copyright of the NFT MMM platform, including the APP “NFT MMM” on Google Play, and the website: starestnet.io. 

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS