RELATED PARTY TRANSACTIONS AND BALANCES

6 Months Ended

Feb. 28, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS AND BALANCES

7. RELATED PARTY TRANSACTIONS AND BALANCES

Name of Entity or Individual	Relationship with the Company
DFP Holdings Limited (“DFP”)	Note a
Reblood Biotech Corp.	Note b
Reblood Biotech Limited	Note b
Asia Pacific Integrating System Limited	Note c
Yi-Hsiu Lin	Shareholder and director of the Company
Jui-Chin Chen	Shareholder of the Company
Teh-Ling Chen	Shareholder of the Company
CPN Investment Limited	Shareholder of the Company
Kuo-Hsun Hsu	Shareholder of the Company
Chun-Shuo Huang	Shareholder of the Company
Yu-Cheng Tu	Shareholder of the Company
Chin-Chiang Wang	Shareholder of the Company
Ching-Nan Wang	Shareholder of the Company
Chin-Ping Wang	Shareholder of the Company
Shih-Chu Lo	Shareholder of the Company

(a)	As of February 28, 2023, the Company and Yi-Hsiu Lin held 7.01% and 7.01% of DFP’s outstanding common stock. DFP was also the shareholder of the Company.
(b)	Reblood Biotech Corp., a Nevada company, in which Yi-Hsiu Lin was the shareholder. Reblood Biotech Limited, a Hong Kong company, which was a subsidiary of Reblood Biotech Corp.
(c)	Asia Pacific Integrating System Limited, a Taiwanese company, wholly owned by Shih-Chu Lo, a shareholder of the Company, holding 100% equity interests as of February 28, 2023.

Related party transactions:

The Company entered into the following significant related party transactions:

	For the six months ended				For the three months ended
	February 28, 2023		February 28, 2022		February 28, 2023		February 28, 2022
Provision of software development service to DFP (a)	$	300,000	$	-	$	70,000	$	-
Provision of software maintenance service to DFP (a)		31,065		-		15,673		-
Rental expense to Yu-Cheng Tu (b)		-		3,239		-		4
Rental expense to Reblood Biotech Limited (d)		18,302		17,745		9,545		8,889
Interest expense to:
Teh-Ling Chen (Note 13)		-		6,000		-		3,000
CPN Investment Limited (c)		-		-		-		-
Chun-Shuo Huang (Note 10(a))		17,143		-		8,726		-
Ching-Nan Wang (Note 12)		36,000		30,000		18,000		15,000
Jui-Chin Chen (Note 10(b) and 13)		2,400		3,000		1,200		1,500
Chin-Chiang Wang (Note 10(c) and 13)		6,000		6,000		3,000		3,000
Chin-Ping Wang (Note 13)		-		2,835		-		(165	)
Ching-Nan Wang (Note 13)		-		2,835		-		(165	)

(a) The Company entered into a Customized App Development Agreement providing the online and offline learning opportunities across different subjects on January 27, 2022 with DFP. The Company delivered an app and provided the follow-up maintenance service since August 2022. For the six and three months ended February 28, 2023, software maintenance income of $31,065 and $15,673, respectively was generated from this customer. Both parties entered another software development agreement on March 31, 2022 and the Company delivered the app on January 16, 2023. For the six and three months ended February 28, 2023, revenue of $300,000 and $70,000, respectively was generated.

(b)	On September 1, 2020, LOC leased an office in Taichung, Taiwan from the Company’s shareholder- Yu-Cheng Tu. The lease was renewed on April 1, 2021 for additional one-year term and early terminated on October 31, 2021. The monthly lease was for the amount of NTD 45,000 ($1,617), with a term of one year. During the six months ended February 28, 2023 and 2022, the Company recognized rental expenses of $nil and $3,239, respectively that are included in general and administrative expenses. During the three months ended February 28, 2023 and 2022, the Company recognized rental expenses of $nil and $4, respectively that are included in general and administrative expenses.
(c)	The Company borrowed a principal amount of $62,000 on September 27, 2022 from a shareholder – CPN Investment Limited. The loan was 6% interest bearing payable on maturity and would be matured in one year. The loan was fully repaid on November 1, 2022. Further $73,400 was borrowed during the three months ended February 28, 2023. The loan was 6% interest bearing payable on maturity and would be matured in one year. Interest of $nil was incurred for the six and three months ended February 28, 2023.
(d)	On June 1, 2021, JFB leased an office in Taipei, Taiwan from a company which was the subsidiary of Reblood Biotech Corp.. The monthly lease was for the amount of NTD 82,062 ($2,647), with a term of 16 months. On October 1, 2022, the lease was renewed for additional one year. The monthly rental was NTD 97,062 ($3,131). During the six months ended February 28, 2023 and 2022, the Company recognized rental expenses of $18,302 and $17,745, respectively that are included in general and administrative expenses. During the three months ended February 28, 2023 and 2022, the Company recognized rental expenses of $9,545 and $8,889, respectively that are included in general and administrative expenses.
(e)	NTD64,000 ($2,086) was paid for Hsu Kuo-Hsun’s quarter on November 3, 2022.

Related party balances:

Apart from the above, the Company recorded the following significant related party balances as of February 28, 2023 and August 31, 2022:

	As of February 28, 2023		As of August 31, 2022
Accounts receivable from related parties
Receivables from DFP	$	2,705	$	2,732

Up to the date of this report, DFP had repaid $nil to the Company.

	As of February 28, 2023		As of August 31, 2022
Contract liabilities due to related parties
due to DFP	$	-	$	150,000
due to Asia Pacific Integrating System Limited	$	50,000	$	-

Up to the date of this report, $nil of the above contract liabilities had been utilized.

	As of February 28, 2023		As of August 31, 2022
Accrued interests payable to related parties
Ching-Nan Wang (note 12)	$	20,935	$	2,935
Chun-Shuo Huang (note 10 (a))		2,851		2,851
Jui-Chin Chen (note 10(b))		5,629		3,229
Chin-Chiang Wang (note 10(c))		3,165		9,165
	$	32,580	$	18,180