NOTE 12 – COMMITMENTS AND CONTINGENCIES

6 Months Ended

Feb. 29, 2024

Commitments and Contingencies Disclosure [Abstract]

NOTE 12 – COMMITMENTS AND CONTINGENCIES

NOTE 12 – COMMITMENTS AND CONTINGENCIES

Contingencies

From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. There is no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of its operations and there are no proceedings in which any of the Company’s directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Company’s interest.

Operating leases 

The Company has several lease agreements to rent office spaces and movie theatre with third-party vendors. (See Note 6)

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) 

NOTE 13 – SEGMENT INFORMATION

The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. As the result of business strategic changes, the Company has identified two reportable segments: Copyrights and license (“IP’) segment and cinema segment.

The following table presents summary information by segment for the six months ended February 29, 2024 and February 28, 2023, respectively.

	IP Segment						Cinema Segment				Total
	Six months ended						Six months ended				Six months ended
	February 29,			February 28,			February 29,		February 28,		February 29,			February 28,
	2024			2023			2024		2023		2024			2023
Revenue	$	987,636		$	357,286		$	199,364	$	177,965	$	1,187,000		$	535,251
Operating costs		—			—			104,081		78,708		104,081			78,708
Depreciation and Amortization		1,074,698			1,781,467			—		—		1,074,698			1,781,467
Interest expense (income)		20,090			(158	)		—		—		20,090			(158	)
Segment assets		1,756,397			4,161,840			33,348		25,619		1,789,745			4,187,459
Segment income (loss)	$	(597,319	)	$	(2,340,126	)	$	146,000	$	61,797	$	(451,319	)	$	(2,278,329	)

The following table presents summary information by segment for the three months ended February 29, 2024 and February 28, 2023, respectively.

	IP Segment						Cinema Segment				Total
	Three months ended						Three months ended				Three months ended
	February 29,			February 28,			February 29,		February 28,		February 29,			February 28,
	2024			2023			2024		2023		2024			2023
Revenue	$	273,348		$	177,286		$	111,905	$	121,153	$	385,253		$	298,439
Operating costs		—			—			62,726		56,304		62,726			56,304
Depreciation and Amortization		561,781			856,852			—		—		561,781			856,852
Interest expense (income)		6,848			(79	)		—		—		6,848			(79	)
Segment assets		1,756,397			4,161,840			33,348		25,619		1,789,745			4,187,459
Segment income (loss)	$	(581,175	)	$	(1,165,354	)	$	86,256	$	96,815	$	(494,919	)	$	(1,068,539	)