NOTE 7 – LEASES

12 Months Ended

Aug. 31, 2022

Leases [Abstract]

NOTE 7 – LEASES

NOTE 7 – LEASES

On November 22, 2020, the Company closed down a display store and terminated its lease, which has an original term from February 23, 2019 to February 22, 2022, as a result of the COVID-19 impact and uncertainties of the economy in Hong Kong.

The Company leased certain office space in Hong Kong from Zestv Studios Limited, a Hong Kong entity 100% owned by the Chief Executive Officer Chiyuan Deng, under operating lease for three years from May 1, 2019 to April 30, 2022 with annual rental of $66,048 (HKD 516,000). On May 1, 2022, the Company signed a new operating lease agreement with Zestv Studios Limited to lease its Hong Kong office premise for two years from May 1, 2022 to April 2024 with annual rental of $66,048 (HKD 516,000).

The Company also leased an office space in Singapore under operating lease from April 13, 2021 to March 31, 2022 with monthly rental of $716 (SGD 974), and an office space at 48 Wall Street, New York, under operating lease for one year from September 1, 2021 to August 31, 2022 with annual rental of $20,400.

On October 21, 2021, the Company signed a lease agreement to lease “the Mt. Kisco Theatre”, a movie theater, for five years plus the free rent period which commences four months from the lease commencement date. The theatre consists of approximately 8,375 square feet, and the total monthly rent is $14,366 for the first year, including real estate related taxes and landlord’s insurance. 

Total lease expense for the years ended August 31, 2022 and 2021 was $289,411 and $94,570, respectively. All leases are on a fixed payment basis. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to operating leases was as follows:

	August 31, 2022		August 31, 2021
Right-of-use assets, net	$	1,004,018	$	47,827
Operating lease liabilities - current	$	229,813	$	48,226
Operating lease liabilities - non-current		863,145		—
Total operating lease liabilities	$	1,092,958	$	48,226

The weighted average remaining lease terms was 4.37 years as of August 31, 2022.

The following is a schedule of maturities of lease liabilities are as follows:

Twelve months ending August 31,
2023	$	238,443
2024		260,396
2025		250,555
2026		255,412
2027		107,275
Total future minimum lease payments		1,112,081
Less: imputed interest		(19,123	)
Total	$	1,092,958

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS