AI Era Corp 10-Q/A for FY2021 Q2

AI Era Corp. (AERA)

10-Q/A 2022-01-19 For: 2021-02-28

Added on April 06, 2026

About this 10-Q/A

AI Era Corp filed this 10-Q/A on January 19, 2022, covering the quarter ended February 28, 2021 (FY2021 Q2).

Headline figures

Quarter ended February 28, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $76.8K; down 44.5% from $138.34K a year earlier
Net loss: $996.21K; compared with a net loss of $351.98K a year earlier

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[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended February 28, 2021
[ ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from __________ to__________
	Commission File Number: 000-55979

Nevada	37-1740351
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
48 Wall Street, Suite 1009, New York, NY 10005
(Address of principal executive offices)
(212) 918-4519
(Registrant’s telephone number)
_______________________________________________________
(Former name, former address and former fiscal year, if changed since last report)


[ ] Large accelerated filer	[ ] Accelerated filer
[X] Non-accelerated filer	[X] Smaller reporting company
[X] Emerging growth company

TABLE OF CONTENTS
		Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	8
Item 4:	Controls and Procedures	8
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	9
Item 1A:	Risk Factors	9
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	9
Item 3:	Defaults Upon Senior Securities	9
Item 4:	Mine Safety Disclosures	9
Item 5:	Other Information	9
Item 6:	Exhibits	9

F-1	Condensed Consolidated Balance Sheets as of February 28, 2021 (unaudited) and August 31, 2020;
F-2	Condensed Consolidated Statements of Operations for the six months ended February 28, 2021 and February 29, 2020 (unaudited);
F-3	Condensed Consolidated Statements of Shareholders’ Equity for the six months ended February 28, 2021 and February 29, 2020 (unaudited);
F-4	Condensed Consolidated Statements of Cash Flows for the six months ended February 28, 2021 and February 29, 2020 (unaudited); and
F-5	Notes to Condensed Consolidated Financial Statements (unaudited).

	February 28,			August 31,
	2021			2020
		(Unaudited) (Restated)			(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	224,804		$	2,455,061
Prepaid expenses		5,000			11,024
Accounts receivable		51,338			137,700
Related party receivable		1,439			87,581
Due from shareholders		—			61,500
Interest receivable		—			26,240
Other receivable		209,400			—
Total Current Assets		491,981			2,779,106

Fixed assets, net		19,344			16,408
Leasehold improvement, net		60,961			85,345
Right of use operating lease assets, net		85,581			126,354
Intangible assets, net		2,626,526			175,000
Long-term prepayment		1,705,395			1,742,080
Other assets		14,536			18,427
TOTAL ASSETS	$	5,004,325		$	4,942,721

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	108,826		$	359,475
Related party payable		5,504			5,504
Current portion of obligations under operating leases		74,618			73,664
Convertible note and derivative liability		306,212			438,921
Due to shareholder		2,089			476
Tax payable		—			56,750
Other payable		3,827			3,584
Total Current Liabilities		501,076			938,374

Obligations under operating leases, non-current		10,963			48,249
Total Liabilities		512,039			986,623

Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized:
Series A preferred stock, 100,000 and 0 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		100			—
Series B preferred stock, 20,000 and 0 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		20			—
Series C convertible preferred stock, 280,025 and 0 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		280			—
Common stock, $0.001 par value, 1,000,000,000 shares authorized: 173,434,446 and 46,661,417 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		173,434			46,661
Additional paid-in capital		8,825,968			7,271,983
Accumulated deficit		(4,492,544	)		(2,970,881)
Unearned shareholders' compensation		(14,973	)		(391,666)
Total Stockholders’ Equity		4,492,286			3,956,097
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,004,325		$	4,942,721

	Six Months Ended						Three Months Ended
	February 28,						February 28,
	2021			2020			2021			2020
	(Restated)						(Restated)

Revenue	$	153,600		$	294,743		$	76,800		$	138,338
Cost of revenue		(454,927	)		(95,025	)		(298,841	)		(42,979)
Gross Profit		(301,327	)		199,718			(222,041	)		95,359

OPERATING EXPENSES
General and administrative expenses		(764,796	)		(433,244	)		(578,651	)		(277,501)
Related party salary and wages		(184,337	)		(88,852	)		(132,987	)		(42,479)
Total Operating Expenses		(949,134	)		(522,096	)		(711,638	)		(319,980)

Loss From Operations		(1,250,461	)		(322,378	)		(933,679	)		(224,621)

OTHER INCOME (EXPENSES)
Rent income		1,920			—			1,920			—
Interest expense		(128,661	)		(42,627	)		(46,905	)		(95,115)
Interest income		8			—			3			—
Gain /(Loss) from change in fair value		19,094			(50,326	)		117,881			(32,242)
Loss from lease termination		(3,251	)		—			—			—
Loss from prepaid convertible note		(128,316	)		—			(128,316	)		—
Loss from warrant termination		(12,343	)		—			—			—
Loss from warrant exercise		(75,000	)		—			(62,460	)		—
Total other income (expenses)		(326,549	)		(92,953	)		(117,877	)		(127,357)

Loss Before Income Tax Provision		(1,577,010	)		(415,331	)		(1,051,556	)		(351,978)

Income tax benefit		55,347			—			55,347			—
NET INCOME (LOSS)	$	(1,521,663	)	$	(415,331	)	$	(996,209	)	$	(351,978)

LOSS PER SHARE: BASIC	$	(0.01	)	$	(0.09	)	$	(0.01	)	$	(0.07)
LOSS PER SHARE: DILUTED	$	(0.01	)	$	(0.08	)	$	(0.01	)	$	(0.07)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC		137,158,120			4,822,000			137,158,120			4,822,000
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED		149,594,775			4,933,487			137,735,830			4,933,487

	Common Stock						Preferred Stock
		Number of Shares			Amount		Number of Shares		Amount		Additional Paid-in Capital			Accumulated Deficit			Unearned Shareholders' Compensation			Total Equity

Balance - August 31, 2019		4,822,016		$	4,822		—	$	—	$	6,520,980		$	(1,452,020	)	$	(842,657	)	$	4,231,125

Common shares issued to officers for services		—			—		—		—		—			—			85,102			85,102
Common shares issued for third party services		—			—		—		—		—			—			—			—
Warrant shares issued in conjunction with convertible notes		—			—		—		—		133,023			—			—			133,023
Net loss		—			—		—		—		—			(415,331	)		—			(415,331)
Balance - February 29, 2020		4,822,016		$	4,822		—	$	—	$	6,654,003		$	(1,867,351	)	$	(757,556	)	$	4,033,918

Balance - August 31, 2020		46,661,417		$	46,661		—	$	—	$	7,271,983		$	(2,970,881	)	$	(391,667	)	$	3,956,097

Common shares issued for cash at $0.0140 per share		19,000,000			19,000		—		—		247,000			—			—			266,000
Common shares issued from note conversions		25,406,238			25,406		—		—		158,347			—			—			183,753
Common shares issued from warrant exercises		56,407,922			56,408		—		—		81,358			—			—			137,766
Common shares returned due to officer resignations		(261,111	)		(261	)	—		—		(391,405	)		—			391,666			—
Put Shares issued for cash		15,220,000			15,220		—		—		721,908			—			—			737,128
Common shares issued to officers for services		1,500,000			1,500		—		—		43,500			—			(14,973	)		30,027
Common shares issued for consulting services		9,500,000			9,500		—		—		275,500			—			—			285,000
Series A Preferred Shares issued		—			—		100,000		100		—			—			—			100
Series B Preferred Shares issued		—			—		20,000		20		319,980			—			—			320,000
Series C Preferred Shares issued		—			—		280,025		280		243,220			—			—			243,500
Warrants termination and Exercised		—			—		—		—		(145,423	)		—			—			(145,423)
Net loss		—			—		—		—		—			(1,521,663	)		—			(1,521,663)
Balance - February 28, 2021 - Restated		173,434,466		$	173,434		400,025	$	400	$	8,825,968		$	(4,492,544	)	$	(14,973	)	$	4,492,286

	As of February, 28,
Diluted shares NOT included in basic loss per share computation	2021		2020
Warrants		—		44,680
Convertible notes		12,436,655		66,791

	For the period ended February 28, 2021
	As previously filed			Restatement Adjustments			As Restated			Restatement References

ASSETS
Current Assets
Cash and cash equivalents		224,804			—			224,804
Prepaid expenses		5,000			—			5,000
Account receivable		51,338			—			51,338
Related party receivable		699,149			(697,709	)		1,439		a
Subscription receivable		—			—			—
Interest receivable		—			—			—
Other receivable		209,400			—			209,400
Total Current Assets		1,189,690			(697,709	)		491,981

Fixed assets, net		19,344			—			19,344
Leasehold improvement, net		60,961			—			60,961
Right of use operating lease assets, net		85,581			—			85,581
Intangible assets, net		2,626,526			—			2,626,526
Long-term prepayment		1,705,395			—			1,705,395
Other assets		14,536			—			14,536
TOTAL ASSETS		5,702,034			(697,709	)		5,004,325

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities		108,826			—			108,826
Related party payable		5,504			—			5,504
Current portion of obligations under operating leases		74,618			—			74,618
Convertible note and derivative liability		306,212			—			306,212
Due to shareholder		2,089			—			2,089
Tax payable		—			—			—
Other payable		3,827			—			3,827
Dividend payable		—			—			—
Total Current Liabilities		501,076			—			501,076

Obligations under operating leases, non-current		10,963			—			10,963
Total Liabilities		512,039			—			512,039

Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized;
Series A preferred stock, 100,000 and 0 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		100			—			100
Series B preferred stock, 20,000 and 0 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		20			—			20
Series C preferred stock, 280,025 and 0 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		280			—			280
Series D preferred stock, 0 and 0 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		—			—			—
Common stock, $0.001 par value, 1,000,000,000 shares authorized; 173,434,446 and 46,661,417 shares issued and outstanding, as of February 28, 2021 and August 31, 2020, respectively		173,434			—			173,434
Additional paid-in capital		8,825,968			—			8,825,968
Accumulated deficit		(3,794,835	)		(697,709	)		(4,492,544	)	a
Unearned shareholders' compensation		(14,973	)		—			(14,973	)
Total Stockholders’ Equity		5,189,995			(697,709	)		4,492,286
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		5,702,034			(697,709	)		5,004,325

a)	To reverse the revenue recognized from the movie box office revenue in China for the movie “Love over the World” (Chinese name “Ai Bian Quan Qiu”).
b)	To recognize retained earning adjustment in the current year income statement as the balance is immaterial. As the Company applied the calendar year to its tax return and the calendar year 2017 had a net loss, $55,347 income tax expense booked in 2017 was reversed.
c)	To reclass the cash used to purchase movie and TV series broadcast rights and copyrights from the investing cash flow to the operating cash flow and combine the changes in long-term prepayment and intangible assets into one line of "Purchase of movie and TV series broadcast right and copyright" under the operating cash flow.

	For the six months ended February 28, 2021
	As previously filed			Restatement Adjustments			As Restated			Restatement References

Revenue		851,309			(697,709	)		153,600		a
Cost of revenue		(454,927	)		—			(454,927	)
Gross Profit (Loss)		396,382			(697,709	)		(301,327	)

OPERATING EXPENSES
General and administrative expenses		(764,796	)		—			(764,796	)
Research and development expenses		—			—			—
Related party salary and wages		(184,337	)		—			(184,337	)
Total Operating Expenses		(949,134	)		—			(949,134	)

Loss from operations		(552,752	)		(697,709	)		(1,250,461	)

OTHER INCOME (EXPENSES)
Rent income		1,920			—			1,920
Interest expense		(128,661	)		—			(128,661	)
Interest income		8			—			8
Preferred shares dividend expense		—			—			—
Loss from change in fair value		19,094			—			19,094
Loss from lease termination		(3,251	)		—			(3,251	)
Loss from prepaid convertible note		(128,316	)		—			(128,316	)
Loss from warrant termination		(12,343	)		—			(12,343	)
Loss from warrant exercise		(75,000	)		—			(75,000	)
Total other income (expenses)		(326,549	)		—			(326,549	)

Loss before income tax provision
Income tax provision		—			55,347			55,347		b
Net loss from operations		(879,301	)		(642,362	)		(1,521,663	)

NET LOSS		(879,301	)		(642,362	)		(1,521,663	)

NET LOSS PER SHARE: BASIC		(0.01	)					(0.01	)
NET LOSS PER SHARE: DILUTED		(0.01	)					(0.01	)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC		137,158,120						137,158,120
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED		149,594,775						149,594,775

	For the three months ended February 28, 2021
	As previously filed			Restatement Adjustments			As Restated			Restatement References

Revenue		774,509			(697,709	)		76,800		a
Cost of revenue		(298,841	)		0			(298,841	)
Gross Profit (Loss)		475,668			(697,709	)		(222,041	)

OPERATING EXPENSES
General and administrative expenses		(578,651	)		—			(578,651	)
Related party salary and wages		(132,987	)		—			(132,987	)
Total Operating Expenses		(711,638	)		—			(711,638	)

Loss Fom Operations		(235,970	)		(697,709	)		(933,679	)

OTHER INCOME (EXPENSES)
Rent income		1,920			—			1,920
Interest expense		(46,905	)		(0	)		(46,905	)
Interest income		3			(0	)		3
Gain /(Loss) from change in fair value		117,881			—			117,881
Loss from lease termination		—			—			—
Loss from prepaid convertible note		(128,316	)		—			(128,316	)
Loss from warrant termination		—			—			—
Loss from warrant exercise		(62,460	)		—			(62,460	)
Total other income (expenses)		(117,877	)		(0	)		(117,877	)

Loss Before Income Tax Provision		(353,846	)		(697,709	)		(1,051,556	)

Income tax benefit		—			55,347			55,347		b
NET LOSS		(353,846	)		(642,362	)		(996,209	)

NET LOSS PER SHARE: BASIC		(0.00	)		(0.00	)		(0.01	)	a
NET LOSS PER SHARE: DILUTED		(0.00	)		(0.00	)		(0.01	)	a
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC		137,158,120			—			137,158,120
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED		137,735,830			—			137,735,830

	February 28, 2021			August 31, 2020
Appliances and furniture	$	25,974		$	20,974
Leasehold improvement		146,304			146,304
Total cost		172,278			167,278
Accumulated depreciation		(91,973	)		(65,525)
Property and equipment, net	$	80,305		$	101,753

	February 28, 2021			August 31, 2020
Patent	$	500,000		$	500,000
Movie copyrights		853,333			—
Movie and TV series broadcast rights		2,022,400			—
Total cost		3,375,733			500,000
Accumulated amortization		(749,207	)		(325,000)
Intangible assets, net	$	2,626,526		$	175,000

				Estimated Useful Life
	Furniture			7 years
	Appliances			5 years

Periods ending February 28,	Amortization expense
2022	$	1,537,867
2023	$	1,088,660

	February 28, 2021			August 31, 2020
Right-to-use gross asset	$	215,853		$	228,510
Less: accumulated amortization		(130,272	)		(102,156)
Right-to-use asset, net	$	85,581		$	126,354

Year ending February 28,		Amortization expense
	2021	$	74,619
	2022	$	10,962
	Total	$	85,582

Counterparties	Issuance date	Maturity date	Principal Amount		Purchase Price		Discount on Note issuance		(Restated) Note issuance costs		Proceeds Received (USD)
EMA Financial	November 18, 2019	August 18, 2020	$	75,000	$	68,500	$	6,500	$	3,763	$	64,737
Peak One Opportunity	December 9, 2019	December 9, 2022	$	85,000	$	76,500	$	8,500	$	11,188	$	65,312
Crown Bridge (Tranche I)	January 8, 2020	January 8, 2021	$	40,500	$	36,500	$	4,000	$	1,508	$	34,992
Auctus Fund Note	December 31, 2019	September 30, 2020	$	75,000	$	75,000	$	-	$	15,658	$	59,342
East Capital	February 13, 2020	February 13, 2021	$	50,000	$	50,000	$	-	$	6,508	$	43,492
Fidelis Capital	February 19, 2020	February 19, 2021	$	50,000	$	50,000	$	-	$	6,513	$	43,487
Armada Partners	March 12, 2020	March 12, 2021	$	38,500	$	35,000	$	3,500	$	2,008	$	32,992
EMA Financial	July 17, 2020	July 17, 2021	$	50,000	$	47,500	$	2,500	$	4,513	$	42,987
Crown Bridge (Tranche II)	July 23, 2020	July 23, 2021	$	40,500	$	36,500	$	4,000	$	2,208	$	34,292
Power Up Lending (Tranche I)	July 24, 2020	July 24, 2021	$	130,000	$	130,000	$	-	$	13,921	$	116,079
Power Up Lending (Tranche II)	August 18, 2020	August 18, 2021	$	63,000	$	63,000	$	-	$	8,061	$	54,939
			$	697,500	$	668,500	$	29,000	$	75,849	$	592,651

Counterparties	Issuance date	Maturity Date	Principal Amount		Purchase Price		Discount on Note issuance		Note issuance costs		Proceeds Received (USD)
Jefferson Street Capital	September 1,2020	September 1, 2021		82,500		75,000		7,500		6,051		68,949
FirstFire Global	September 1,2020	June1, 2021		75,000		71,250		3,750		9,752		61,498
Power Up Lending	October8, 2020	October 8, 2021		55,000		55,000		-		7,421		47,579
East Capital	October 9, 2020	October 9, 2021		62,700		62,700		-		7,708		54,992
			$	275,200	$	263,950	$	11,250	$	30,932	$	233,018

Balance, August 31, 2020	$	438,921
Principal	$	(160,846)
Discount on Note issuance	$	48,139
Accrued interest expense	$	(909)
Derivative liability	$	(19,094)
Balance, February 28, 2021	$	306,212

Convertible Notes	Beginning Principal after Note Conversion		Total Interest Accrued		Paid Date		Paid Principal			Paid Interest			Principal balance Outstanding		Payment amount		Loss from prepaid convertible note
Crown Bridge (Tranche I)		1,082		2,641		12/9/2020		(1,082	)		(2,641	)		—		72,500		(26,732	)
Crown Bridge (Tranche II)		40,500		1,545		12/9/2020		(40,500	)		(1,545	)		—
EMA Financial		50,000		1,990		12/9/2020		(50,000	)		(1,990	)		—		72,800		(20,810	)
Power Up Lending		130,000		6,491		1/22/2021		(130,000	)		(6,491	)		—		190,925		(54,434	)
Power Up Lending		63,000		3,042		2/10/2021		(63,000	)		(3,042	)		—		92,380		(26,338	)
East Capital		40,500		2,461		—		—			—			62,700		—
Power Up Lending		50,000		3,042		—		—			—			55,000		—
Jefferson Street		50,000		4,097		—		—			—			82,500		—
FirstFire Global		38,500		6,586		—		—			—			75,000		—
Total	$	463,582	$	31,895		—	$	(284,582	)	$	(15,709	)	$	275,200	$	428,605	$	(128,315	)

Conversion date	Beginning principal balance		Principal Amount Converted		Interest Amount Converted		MFN Principal		Total converted principals and unpaid interest		Closing Fee		Ending principal balance		Conversion Price		Converted Shares
September 8, 2020		33,295		12,055		73		—		12,128		750		21,240	$	0.00510		2,525,000
September 18, 2020		21,240		15,233		58		—		15,291		750		6,007	$	0.00510		3,145,300
September 29, 2020		6,007		6,007		18		11,082		17,107		750		—	$	0.00480		3,720,200
October 22, 2020		—		—		—		3,918		3,918		750		—	$	0.00216		2,161,240
Total				33,295		149		15,000		48,444		3,000						11,551,740

Date of Exercise	Anti Dilution Value of Warrant Shares	Anti Dilution Base (Exercise) Price (B)	Mkt Price (90 Day High Preceding Exercise date) (A)	# of WTS Shares Elected for purchase (Y)	Common Shares to be issued upon exercise (X) = Y(A-B)/A	Cashless Payment
July 20, 2020	$100,000	$ 0.0300	$ 21.00	250,358	250,000	$7,511
July 21, 2020	$92,489	$ 0.0300	$ 21.00	250,358	250,000	$7,511
July 23, 2020	$84,979	$ 0.0300	$ 21.00	250,358	250,000	$7,511
July 29, 2020	$77,468	$ 0.0300	$ 21.00	250,358	250,000	$7,511
August 4, 2020	$69,957	$ 0.0300	$ 21.00	250,358	250,000	$7,511
August 11, 2020	$62,446	$ 0.0300	$ 21.00	500,715	500,000	$15,021
August 21, 2020	$47,425	$ 0.0300	$ 21.00	500,715	500,000	$15,021
August 25, 2020	$32,403	$ 0.0205	$ 21.00	500,489	500,000	$10,260
August 31, 2020	$22,143	$ 0.0205	$ 21.00	500,489	500,000	$10,260
September 9, 2020	$11,883	$ 0.0205	$ 21.00	470,786	470,326	$9,651
Total				3,724,982	3,720,326	$ 97,768

	Number of warrants
	Original shares issued			Anti-dilution Adjusted
Warrants as of August 31, 2020		793,920			68,163,661
Warrants granted		—			—
Exercised, forfeited or expired		(793,920	)		(68,163,661)
Outstanding as of February 28, 2021		—			—
Exercisable as of February 28, 2021		—			—

	Derivative liabilities embedded in convertible notes

Fair value at August 31, 2020	$	64,584
Increase from note issuances		74,187
Decrease from note conversions		(33,490)
Changes in the fair value		58,090
Fair value at November 30, 2020	$	163,371
Increase from note issuances		—
Decrease from note prepayment		(136,321)
Changes in the fair value		18,439
Fair value at February 28, 2021	$	45,490

	•	The Company issued 19,000,000 shares of common stock for cash at $0.0140 per share.

	•	The Company issued 25,406,238 shares of common stock from note conversion. Refer to Note 8 for further details.

	•	The Company issued 56,407,922 shares of common stock from warrant exercises. Refer to Note 9 for further details.

	•	261,111 shares of common stock returned to the Company due to officer resignations.

	•	The Company issued 15,220,000 shares of put shares for cash at $0.015312, $0.014256, $ 0.01452, 0.077528, or 0.09856 per share.

	•	As stock-based compensation the Company issued 500,000 shares to the Chief Investment Offer and 1,000,000 shares to the Chief Executive Officer.

	•	The Company issued 9,500,000 shares of stock for consulting services.

	February 28, 2021			August 31, 2020
Deferred tax asset attributable to:
Net operating loss carry over	$	534,090		$	447,765
Less: valuation allowance		(534,090	)		(447,765)
Net deferred tax asset	$	—		$	—

	Six months ended
	February 28,
	2021			2020
Federal statutory tax rate		21	%		21%
Change in valuation allowance		(21	%)		(21%)
Effective tax rate		0	%		0%

As of February 28,	Commitments
2021	$	76,248
2022	$	11,008
Total Lease Payments	$	87,256
Less: imputed interest	$	(1,674)
Present value of lease liabilities	$	85,582
Current portion of obligations under operating leases	$	74,619
Obligations under operating leases, non-current	$	10,962

Item 6. Exhibits
Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended February 28, 2021 formatted in Extensible Business Reporting Language (XBRL).
	**Provided herewith