NOTE 10 – INCOME TAXES

12 Months Ended

Aug. 31, 2025

Income Tax Disclosure [Abstract]

NOTE 10 – INCOME TAXES

NOTE 10 – INCOME TAXES

The Company and its fully owned subsidiaries, AB Cinemas NY, Inc and AI+ Hubs Corp, were incorporated in the United States and are subject to a statutory income tax rate at 21%. The Company’s fully owned subsidiary, App Board Limited, was registered in Hong Kong and is subject to a statutory income tax rate at 16.5%.

As of August 31, 2025 and 2024, the components of net deferred tax assets, including a valuation allowance, were as follows:

	August 31, 2025			August 31, 2024
Deferred tax asset attributable to:
Net operating loss carryforwards	$	1,580,516		$	1,963,323
Less: valuation allowance		(1,580,516	)		(1,963,323	)
Net deferred tax asset	$	—		$	—

For the years ended August 31, 2025 and 2024, the Company and its subsidiaries generated net income. However, despite the current profitability, management believes that the Company’s earnings are not yet stable or sustainable. The Company also continues to experience negative working capital and has an accumulated deficit.

In assessing the realizability of deferred tax assets, management evaluates whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which the related temporary differences become deductible. In making this assessment, management considers the scheduled reversal of deferred tax items, projected future taxable income, and feasible tax planning strategies.

As a result, management determined that it is more likely than not that the Company’s deferred tax assets will not be realized, even after considering the potential utilization of existing net operating loss (“NOL”) carryforwards. As of August 31, 2025 and August 31, 2024, the valuation allowance for deferred tax assets was $1,580,516 and $1,963,323, respectively.

Reconciliation between the statutory rate and the effective tax rate is as follows for the years ended August 31, 2025 and 2024:

	Year ended
	August 31,
	2025			2024
Federal statutory tax rate		21%			21%
Change in valuation allowance		(21%	)		(21%	)
Effective tax rate		0%			0%

For the year ended August 31, 2025 and 2024, the Company and its subsidiaries generated net income. However, due to the fact that the Company had net operating loss carry forwarded, the Company and its subsidiaries did not incur any income tax for the year ended August 31, 2025 and August 31, 2024.  

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS