NOTE 6 – LEASES

6 Months Ended

Feb. 28, 2023

Leases [Abstract]

NOTE 6 – LEASES

NOTE 6 – LEASES

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. The Company has renewed the lease of its New York office space for one year from September 1, 2022 to August 31, 2023 with renewed annual rental of $22,440.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – LEASES (Continued)

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 six months ended February 28, 2023 and 2022 was $142,936 and $124,551, 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:

	February 28, 2023		August 31, 2022
Right-of-use assets, net	$	872,345	$	1,004,018
Operating lease liabilities - current	$	237,708	$	229,813
Operating lease liabilities - non-current		740,744		863,145
Total operating lease liabilities	$	978,452	$	1,092,958

The weighted average remaining lease terms was 3.68 years as of February 28, 2023.

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

Twelve months ending February 28,
2024	$	244,725
2025		259,176
2026		252,954
2027		236,005
Total future minimum lease payments		992,860
Less: imputed interest		(14,408	)
Total	$	978,452