NOTE 5 – INTANGIBLE ASSETS

6 Months Ended

Feb. 28, 2026

Intangible Asset, Goodwill and Other [Abstract]

NOTE 5 – INTANGIBLE ASSETS

 NOTE 5 – INTANGIBLE ASSETS

As of February 28, 2026 and August 31, 2025, the balance of intangible assets was as follows: 

	February 28, 2026			August 31, 2025
Movie copyrights and broadcast right	$	5,893,783		$	5,893,783
Television series		1,193,074			1,193,074
Short form drama series		9,474,180			5,413,923
Intellectual property of ufilm		300,000			—
NFT MMM platform		280,000			280,000
Total cost		17,141,037			12,780,780
Accumulated amortization		(10,030,358	)		(8,008,356	)
Intangible assets, net	$	7,110,679		$	4,772,424

The amortization expense for the six and three months ended February 28, 2026 was $2,022,002 and $1,103,221, respectively. The amortization expense for the three and six months ended February 28, 2025 was $100,044 and $254,766 respectively. Estimated future amortization expense is as follows:

Twelve months ending February 28,	Amortization expense
2027	$	5,023,912
2028		1,914,657
2029		60,000
2030		60,000
2031		52,110
Total	$	7,110,679

On August 6, 2022, the Company licensed its NFT MMM platform to a third party, Anyone Pictures Limited, granting access to the platform and related data through both the mobile application and website for one year beginning August 20, 2022, at a monthly license fee of $60,000. Following a license renewal on November 1, 2023, the Company continued licensing the NFT MMM platform from November 1, 2023 through October 31, 2025, at a monthly license fee of $57,000; however, the agreement was terminated on January 31, 2025. On February 21, 2025, the Company entered into a stock purchase agreement with Anyone Pictures Limited, which subsequently became a related party due to its shareholding. On June 1, 2025, the Company renewed the license, granting Anyone Pictures Limited access to the platform from June 1, 2025 through May 31, 2026, at a monthly license fee of $50,000. The Company retains ownership and all copyrights to the NFT MMM platform, including the mobile application “NFT MMM” and the website starestnet.io. For the six months ended February 28, 2026 and 2025, the Company recognized license revenue of $300,000 and $285,000 respectively (See Note 9).

During the three months ended November 30, 2024, on September 30, 2024, the Company entered into an agreement with Capitalive Holdings Limited to sell the offline broadcast rights of two movies for $55,000. The granted broadcast rights are globally exclusive, except for Mainland China.

AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.) 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5 – INTANGIBLE ASSETS (continued)

During the three months ended November 30, 2024, on September 30, 2024, the Company entered into an agreement with All In One Media Ltd. to acquire the copyrights and broadcast rights for one movie for a total purchase price of $360,000. The acquired rights allow the Company to broadcast the movie globally. On October 21, 2024, the Company entered into an agreement with Anyone Pictures Limited, a related party, to sell the broadcast rights in Mainland China for the same movie for $228,000.

During the three months ended February 28, 2025, on December 12, 2024, the Company entered into an agreement with All In One Media Ltd to acquire the copyright and broadcast rights for 1 movie for a price of $220,000. The granted online and offline broadcast rights are globally exclusive. As of February 28, 2025, $160,000 of the purchase price had been settled. On February 12, 2025, the Company entered into an agreement with Anyone Pictures Limited to sell the broadcast right for $40,000. The granted broadcast rights are Mainland China exclusive (See Note 9).

During the three months ended February 28, 2025, on January 27, 2025, the Company entered into an agreement with Capitalive Holdings Limited to sell the ABQQ.TV website and the copyrights of 59 movies for $275,000. The copyrights are globally exclusive, with the exception of Mainland China.

During the three months ended February 28, 2025, on February 12, 2025, the Company entered into an agreement with Anyone Pictures Limited to sell the broadcast rights of 2 movies for $110,000. The granted broadcast rights are Mainland China exclusive (See Note 9).

During the six months ended February 28, 2025, the total sale amount of intangible assets was $1,237,028 and the total intangible assets received was $1,590,123.

On March 27, 2025, the Company entered into an agreement with All-in-One Media Ltd. to acquire the copyrights and broadcast rights of 1,500 episodes of short form drama series. On September 28, 2025, the Company entered into another agreement to acquire the copyrights and broadcast rights of 500 episodes of short form drama series. During the three months ended November 30, 2025, the Company received the copyrights from All-in-One Media Ltd. of 1,500 series and 500 series of TV drama for a price of $1,350,000 and $300,000, respectively. These copyrights allow the Company to broadcast globally, except for Mainland China.

On December 1, 2025, the Company entered into an agreement with All-in-One Media Ltd. to acquire the copyrights and broadcast rights of 1,000 episodes of short form drama series. On December 16, 2025, the Company entered into another agreement to acquire the copyrights and broadcast rights of 2,000 episodes of short form drama series. On January 21, 2026, the Company entered into another agreement to acquire the copyrights and broadcast rights of 5,000 episodes of short form drama series. During the three months ended February 28, 2026, the Company received the copyrights from All-in-One Media Ltd. of 1,000 series, 2,000 series and 3,000 series of TV drama for a price of $410,256, $800,000 and $1,200,000, respectively. These copyrights allow the Company to broadcast globally, except for Mainland China.

During the year ended August 31, 2025, the Company entered into an agreement with Capitalive Holdings Limited to grant non-exclusive, time-based licenses allowing the customer to broadcast the Company’s films and television series, primarily short-form drama series. License fees are charged per movie or per drama series per month. The Company received total broadcast licensing fees of $515,440 and $0 from Capitalive Holdings Limited during the six months ended February 28, 2026 and 2025.

During the year ended August 31, 2025, the Company also licensed the download rights to Guangdong Dangliang Film Co., Ltd. to download the Company’s film through the cloud-based platforms. The licensed rights exclude Mainland China. License fees are charged per movie based on the authorized period, typically monthly or annually, and are not linked to user activity or download volume. The Company received total download licensing fees of $1,620,240 and $0 from Guangdong Dangliang Film Co., Ltd. during the six months ended February 28, 2026 and 2025.

AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.) 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

On December 8, 2025 and February 1, 2026, the Company entered into two agreements with Anyone Pictures Ltd to grant a non-exclusive, non-transferable license to access and use its content for machine learning, testing, and model optimization. License fees are charged per movie or per drama series per month. The Company received total short-form drama for AI training pilot licensing fees of $877,319 and $0 from Anyone Pictures Ltd during the six months ended February 28, 2026 and 2025.

On January 31, 2026, the Company entered into an agreement with Uflix.ai LLC to provide access to its AI-powered SaaS uFilm platform, installation services, and data licensing. The Company’s arrangements include access to AI models, user interfaces, APIs, and ongoing maintenance and support. The Company received total uFilm platform licensing fees of $280,127 and $0 from Uflix.ai LLC during the six months ended February 28, 2026 and 2025.

During the six months ended February 28, 2026, the total sale amount of intangible assets was $0 and the total intangible assets received was $2,710,256.

NOTE 6 – LEASES

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 theater consists of approximately 8,375 square feet, and the total monthly rent is $14,366 for the first two years, and $20,648 from the third year including real estate related taxes and landlord’s insurance. 

On January 31, 2024, the end of the initial two-year rental period, the landlord agreed to continue to receive $14,366 from February 2024 to February 2026. The reduced rental payments are accounted for as a rent concession and recognized in general and administrative expenses

Total lease expense for the six months ended February 28, 2026 and 2025 was $62,881 and $65,280, 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.

The following is a schedule of maturities of lease liabilities:

Twelve months ending February 28,
2027	$	236,006
Total future minimum lease payments		236,006
Less: imputed interest		(782	)
Total	$	235,224

AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.) 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

The balance of purchase deposits for intangible assets, which relates to the acquisitions of copyrights and broadcast rights for movies, TV dramas, and software was as follows:

	February 28, 2026		August 31, 2025
Purchase deposit for copyright and broadcast right for short form drama series	$	500,315	$	1,011,349
Purchase deposit for intellectual property of ufilm		—		300,000
Total purchase deposits for intangible assets	$	500,315	$	1,311,349

On March 27, 2025, the Company entered into an agreement to acquire the copyrights and broadcast rights of 1,500 episodes of short form drama series. The granted broadcasting rights are exclusive to Mainland China. As of August 31, 2025, the Company had paid purchase deposits of $1,011,349 towards this acquisition. The company received these short form drama series in September 2025.

On December 1, 2025 and January 21, 2026, the Company entered into agreements to acquire the copyrights and broadcast rights of 1,323 and 5,000 episodes of short form drama series. The granted broadcasting rights are exclusive to Mainland China. As of February 28, 2026, the company received 3,000 short form drama series, and the Company had paid purchase deposits of $500,315 towards the remaining acquisition.

In May 2025, the Company entered into an agreement to acquire a license to the intellectual property (“IP”) of ufilm from AIHUB Releasing, Inc. for total consideration of $2,000,000. The original settlement terms required a payment of $500,000 in cash within 10 days of the agreement date, with the remaining $1,500,000 payable within 10 days following the successful completion of related SaaS system testing. On June 2, 2025, the parties mutually agreed to amend the agreement, under which the Company fully settled the purchase consideration by transferring its NFT MMM intellectual property to AIHUB Releasing, Inc. Subsequently, on July 12, 2025, the parties further amended the agreement. Under the revised terms, the Company agreed to acquire all rights to the ufilm AI IP from AIHUB Releasing, Inc. for a cash consideration of $300,000, replacing the previously agreed transfer of the Company’s NFT MMM IP. As of August 31, 2025, the Company had paid purchase deposits of full purchase price totaling $300,000. The asset was delivered on January 12, 2026.