LCHD 10-K

Leader Capital Holdings Corp. (LCHD)

10-K 2022-12-14 For: 2022-08-31

View Original

Added on April 06, 2026

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Title of Each Class		Trading Symbol		Name of Each Exchange on Which Registered
N/A		N/A		N/A

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☒

		Page
	PART I

Item 1.	Business	4
Item 1A.	Risk Factors	7
Item 1B.	Unresolved Staff Comments	18
Item 2.	Properties	18
Item 3.	Legal Proceedings	18
Item 4.	Mine Safety Disclosure	18

	PART II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters And Issuer Purchases of Equity Securities	19
Item 6.	[Reserved]	19
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 8.	Financial Statements and Supplementary Data	25
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	25
Item 9A.	Controls and Procedures	26
Item 9B.	Other Information	27
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	27

	PART III

Item 10.	Directors, Executive Officers and Corporate Governance	28
Item 11.	Executive Compensation	30
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	31
Item 13.	Certain Relationships and Related Transactions, and Director Independence	32
Item 14.	Principal Accounting Fees and Services	35

	PART IV

Item 15.	Exhibits, Financial Statement Schedules	36
Item 16.	Form 10-K Summary	37

	●	the availability and adequacy of our cash flow to meet our requirements;

	●	economic, competitive, demographic, business, and other conditions in our local and regional markets;

	●	general economic conditions and events and the impact they may have on us and our clients, including but not limited to the impact of COVID-19;

	●	changes or developments in laws, regulations or taxes in our industry;

	●	there are uncertainties regarding the interpretation and enforcement of PRC laws, rules, and regulations;

	●	competition in our industry;

	●	the loss of or failure to obtain any license or permit necessary or desirable in the operation of our business;

	●	proceedings brought by the SEC against China-based accounting firms could result in our inability to file future financial statements in compliance with the requirements of the Exchange Act.;

	●	changes in our business strategy, capital improvements or development plans;

	●	the availability of additional capital to support capital improvements and development; and

	●	other risks identified in this report and in our other filings with the Securities and Exchange Commission (the “SEC”).

	The key features of the FinMaster App are:

	●	Real-time Taiwan stock market quotes; delayed Hong Kong and U.S., stock market quotes; and financial market news feed
	●	AI Stock Selection Tools: Day Trading Analysis, Portfolio Health Check, Institutional Trading Tactics, AI Smart Screening Tools
	●	Instant news feed and quotes of pre-defined stocks under Watchlist
	●	Live Streaming sessions from the industry expert analysts
	●	Discussion Forums for users and experts’ direct communication
	●	In-App Messaging: chats, audio, and video calls between members
	●	Token System and Point Reward Redemption Corner

	Other key features are under development, such as:

	●	Online securities account-opening and online trading
	●	On-line Leader FinTech Academy programs
	●	AI Futures Selection and Screening Tools
	●	AI Options Selection and Screening Tools
	●	In-App Messaging: chats, audio, and video calls

	(1)	We do not have an audit committee – While we are not obligated to have an audit committee, it is management’s view that such a committee, including a financial expert member, is an utmost important entity level control over the Company’s financial reporting. Currently, our Chief Executive Officer and directors act in the capacity of the audit committee, and do not include a member that is considered to be independent of management to provide the necessary oversight over management’s activities.

	(2)	We do not have adequate written policies and procedures – Due to lack of adequate written policies and procedures for accounting and financial reporting, we did not establish a formal process to close our books monthly and account for all transactions in a timely manner.

	(3)	We did not implement appropriate information technology controls – As of August 31, 2022, we retained copies of all financial data and material agreements; however, there is no formal procedure or evidence of normal backup of our data or off-site storage of the data in the event of theft, misplacement, or loss due to unmitigated factors and we do not have sufficient control policies that prevent inappropriate and unauthorized use of the system across all layers of systems.

	(4)	We do not have sufficient and skilled accounting personnel with an appropriate level of technical accounting knowledge and experience in the application of accounting principles generally accepted in the United States commensurate with our financial reporting requirements.

	●	damage to or failure of our computer software or hardware or our connections;
	●	errors in the processing of data by our systems;
	●	computer viruses or software defects;

	●	physical or electronic break-ins, sabotage, intentional acts of vandalism and similar events;
	●	increased capacity demands or changes in systems requirements of our customers; and
	●	errors by employees or third-party service providers.

	●	difficulties or complications in combining the companies’ operations;

	●	differences in controls, procedures and policies, regulatory standards and business cultures among the combined companies;

	●	the diversion of management’s attention from our ongoing core business operations;

	●	increased exposure to certain governmental regulations and compliance requirements;

	●	the potential loss of key personnel;

	●	the potential loss of key customers or suppliers who choose not to do business with the combined business;

	●	difficulties or delays in consolidating NPI’s technology platforms, including implementing systems designed to maintain effective disclosure controls and procedures and internal control over financial reporting for the combined company and enable the Company to continue to comply with U.S. GAAP and applicable U.S. securities laws and regulations;

	●	unanticipated costs and other assumed contingent liabilities;

	●	difficulty comparing financial reports due to differing financial and/or internal reporting systems;

	●	making any necessary modifications to internal financial control standards to comply with the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder; and/or

	●	possible tax costs or inefficiencies associated with integrating the operations of the combined company.

	Year ended August 31,
	2022			2021

Revenue	$	339,442		$	95,166
Research and development expenses		(510,723	)		(602,118	)
Sales and marketing expenses		(300,507	)		(203,646	)
General and administrative expenses		(4,804,688	)		(9,702,342	)
Impairment loss of intangible assets		(537,866	)		(88,415	)
Impairment loss of goodwill		(1,747,945	)		(1,226,419	)
Loss from operations		(7,562,287	)		(11,727,774	)
Interest expenses		(94,684	)		(102,196	)
Loss on change in fair value of convertible notes		(3,980,908	)		(47,092	)
Other (expense) income		(407,720	)		145,432
Loss before income tax		(12,045,599	)		(11,731,630	)
Income tax benefit		125,502			38,138

Net loss	$	(11,920,097	)	$	(11,693,492	)

	Payments Due by Period
	Total		Less than 1 year		1 – 3 years
Contractual Obligations
Other loans	$	460,709	$	260,709	$	200,000
Bonds payable		600,000		600,000		-
Due to a director		973,564		973,564		-
Due to shareholders		45,343		45,343		-
Future interest payment on loans		54,885		30,893		23,992
Future interest payment on bonds		72,000		72,000		-

Total	$	2,206,501	$	1,982,509	$	223,992

	Step 1: Identify the contract
	Step 2: Identify the performance obligations
	Step 3: Determine the transaction price
	Step 4: Allocate the transaction price
	Step 5: Recognize revenue

	(1)	pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
	(2)	provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that our receipts and expenditures are being made only in accordance with the authorization of our management and directors; and
	(3)	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

	1.	We do not have an audit committee – While we are not obligated to have an audit committee, it is management’s view that such a committee, including a financial expert member, is an utmost important entity level control over the Company’s financial reporting. Currently, our Chief Executive Officer and directors act in the capacity of the audit committee, and do not include a member that is considered to be independent of management to provide the necessary oversight over management’s activities.

	2.	We do not have adequate written policies and procedures – Due to lack of adequate written policies and procedures for accounting and financial reporting, we did not establish a formal process to close our books monthly and account for all transactions in a timely manner.

	3.	We did not implement appropriate information technology controls – As at August 31, 2022, we retained copies of all financial data and material agreements; however, there is no formal procedure or evidence of normal backup of our data or off-site storage of the data in the event of theft, misplacement, or loss due to unmitigated factors and we do not have sufficient control policies that prevent inappropriate and unauthorized use of the system across all layers of systems.

	4.	We do not have sufficient and skilled accounting personnel with an appropriate level of technical accounting knowledge and experience in the application of accounting principles generally accepted in the United States commensurate with our financial reporting requirements.

	1.	Create a position to segregate duties consistent with control objectives and increase our personnel resources and technical accounting expertise within the accounting function when funds are available to us.

	2.	Prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity and debt transactions, in a timely manner.

	3.	Add staff members to our management team to make sure that information required to be disclosed in our reports filed and submitted under the Exchange Act is recorded, processed, summarized and reported as and when required and the staff members will have segregated responsibilities with regard to these responsibilities.

	4.	Plan to hire professional consultant to review and assist the company to design and implement proper information technology controls and policies on the company’s operations.

Name	Age	Position

Yi-Hsiu Lin	54	Chief Executive Officer, President, Secretary, Treasurer, Director
Shui Fung Cheng	60	Director

	(i)	filing by Yi-Hsiu Lin, the Company’s Chief Executive Officer and a member of the Company’s board of directors, with respect to one transaction dated January 21, 2022 pertaining to the award of an employee stock option for 1,000,000 shares of common stock, which was fully vested as of January 21, 2022. Such late Form 4 was filed on January 26, 2022; and

	(ii)	filing by Mr. Shui Fung Cheng, a member of the Company’s board of directors, with respect to one transaction dated January 21, 2022 pertaining to the award of an employee stock option for 500,000 shares of common stock, which was fully vested as of January 21, 2022. Such late Form 4 was filed on January 26, 2022.

	(1)	The amounts in the “Stock Awards” column do not reflect compensation actually received by our executive officers. Rather, these amounts represent the aggregate grant date fair value of all service based RSUs and the target value of the performance based RSUs granted during each fiscal year computed in accordance with FASB ASC Topic 718, Compensation – Stock Compensation.
	(2)	In lieu of Mr. Lin’s $120,000 annual salary, the Company elected to compensate Mr. Lin with 2,500,000 shares of restricted common stock pursuant to the terms of his employment agreement.
	(3)	Amount reflects a monthly allowance payable to the individual.
	(4)	In lieu of Mr. Cheng’s $80,000 annual compensation, the Company elected to compensate Mr. Cheng with 1,500,000 shares restricted common stock pursuant to the terms of his director offer letter.

	●	our Named Executive Officer;

	●	each director;

	●	our executive officer and director as a group; and

	●	each person or entity who, to our knowledge, owns more than 5% of our common stock.

Name and Address of Beneficial Owner	Shares of Common Stock Beneficially Owned			Total Voting Percentage Beneficially Owned
Named Executive Officers and Directors
Yi-Hsiu Lin		58,537,778	(1)		29.2	%
Shui Fung Cheng		8,839,225	(2)		4.4	%
All Directors and Officers as a Group (2 individuals)		62,306,725	(3)		31.1	%
More than 5% Beneficial Owner
Jun- Yuan Chen(4)		12,683,023			6.3	%
First Leader Capital Ltd.(5)		32,867,500			16.4	%

	2022		2021
Audit Fees	$	166,400	$	153,500
Audit Related Fees	$	-	$	10,000
Tax Fees	$	12,000	$	12,833
All Other Fees	$	-	$	-

	Page No.
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of August 31, 2022 and 2021	F-3
Consolidated Statements of Operations and Comprehensive Loss for the years ended August 31, 2022 and 2021	F-4
Consolidated Statements of Changes in Stockholder’s Equity for the years ended August 31, 2022 and 2021	F-5
Consolidated Statements of Cash Flows for the years ended August 31, 2022 and 2021	F-6
Notes to the Consolidated Financial Statements	F-7

Exhibit No.		Description

2.1		Stock Purchase Agreement, dated as of August 17, 2020, among Leader Capital Holdings Corp., JFB Internet Service Limited, Nice Products Inc., the Sellers and the Sellers’ Representative (incorporated by reference to Exhibit 2.1 to the current report on Form 8-K of the Company, filed with the SEC on August 21, 2020).

3.1		Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the registration statement on Form S-1 of the Company, filed with the SEC on November 14, 2017).

3.2		Bylaws (incorporated by reference to Exhibit 3.2 to the registration statement on Form S-1 of the Company, filed with the SEC on November 14, 2017).

4.1		Specimen Stock Certificate (incorporated by reference to Exhibit 4.1 to the registration statement on Form 10-12G of the Company, filed with the SEC on March 27, 2020).

4.2		Form of Bond (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K of the Company, filed with the SEC on August 19, 2019).

4.3*		Description of Registrant’s Securities.

10.1		Tenancy Agreement, dated April 15, 2019, by and between JFB Internet Service Limited and Calvary Consultant Limited (incorporated by reference to Exhibit 10.1 to the annual report on Form 10-K for the year ended August 31, 2019 of the Company, filed with the SEC on November 29, 2019).

10.2†		Employment Agreement, dated September 1, 2019, by and between the Company and Yi-Hsiu Lin (incorporated by reference to Exhibit 10.2 to the annual report on Form 10-K for the year ended August 31, 2019 of the Company, filed with the SEC on November 29, 2019).

10.3†		Director Offer Letter, dated September 1, 2019, by and between the Company and Shui Fung Cheng (incorporated by reference to Exhibit 10.3 to the annual report on Form 10-K for the year ended August 31, 2019 of the Company, filed with the SEC on November 29, 2019).

10.4		Consulting Agreement, dated September 1, 2019, by and between the Company and Kuo-Hsun Hsu (incorporated by reference to Exhibit 10.1 to the quarterly report on Form 10-Q for the quarterly period ended November 30, 2019 of the Company, filed with the SEC on January 14, 2020).

10.5		Consulting Agreement, dated September 1, 2019, by and between the Company and Chien Chiao (incorporated by reference to Exhibit 10.2 to the quarterly report on Form 10-Q for the quarterly period ended November 30, 2019 of the Company, filed with the SEC on January 14, 2020).

10.6		Form of Bond Purchase Agreement (incorporated by reference to Exhibit 10.2 to the current report on Form 8-K of the Company, filed with the SEC on August 19, 2019).

10.7		Stock Forfeiture Letter, dated as of June 30, 2020, by and between Leader Capital Holdings Corp. and First Leader Capital Ltd. (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K of the Company, filed with the SEC on July 7, 2020).

10.8		Form of Convertible Promissory Notes Purchase Agreement (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K of the Company, filed with the SEC on August 21, 2020).

10.9		Form of Amendment No. 1 to the Promissory Note and the Convertible Promissory Notes Purchase Agreement (incorporated by reference to Exhibit 10.2 to the current report on Form 8-K, filed with the SEC on August 21, 2020).

10.10		Consulting Agreement, dated November 1, 2020, by and between the Company and Yi-Fang Liao (incorporated by reference to Exhibit 10.1 to the quarterly report on Form 10-Q filed with the SEC on January 19, 2021).

10.11		Consulting Agreement, dated November 1, 2020, by and between the Company and Chia-Jung Liang (incorporated by reference to Exhibit 10.2 to the quarterly report on Form 10-Q filed with the SEC on January 19, 2021).

10.12		Consulting Agreement, dated March 1, 2021, by and between the Company and Raymond Kwan (incorporated by reference to Exhibit 10.1 to the quarterly report on Form 10-Q filed with the SEC on April 19, 2021).

10.13		Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K, filed with the SEC on May 20, 2021).

10.14		Stock Forfeiture Letter, dated May 17, 2021, by and between Leader Capital Holdings Corp. and First Leader Capital Ltd. (incorporated by reference to Exhibit 10.3 to the current report on Form 8-K, filed with the SEC on May 20, 2021).

10.15		Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K, filed with the SEC on September 2, 2021).

10.16		Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K, filed with the SEC on September 10, 2021).

21.1*		Subsidiaries of Leader Capital Holdings Corp.

31.1*		Certification of Principal Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002.

31.2*		Certification of Principal Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002.

32.1**		Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		Inline XBRL Instance Document.

101.SCH*		Inline XBRL Taxonomy Extension Schema Document.

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*		Inline XBRL Taxonomy Extension Labels Linkbase Document.

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

	LEADER CAPITAL HOLDINGS CORP.

Date: December 14, 2022	By:	/s/ Yi-Hsiu Lin
	Title:	Yi-Hsiu Lin Chief Executive Officer

Name		Title	Date

By:	/s/ Yi-Hsiu Lin	Chief Executive Officer, President, Secretary, Treasurer, and Director	December 14, 2022
	Yi-Hsiu Lin	(Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer)

By:	/s/ Shui Fung Cheng	Director	December 14, 2022
	Shui Fung Cheng

/s/ Centurion ZD CPA & Co.
Centurion ZD CPA & Co.

We have served as the Company’s auditor since 2019.

Hong Kong, China
December 14, 2022
PCAOB ID: 2769

	2022			2021
	As of August 31,
	2022			2021

ASSETS
Current assets:
Cash and cash equivalents	$	213,270		$	787,154
Accounts receivable, net		4,413			1,567
Prepayments, deposits and other receivables		176,201			231,715
Inventory		8,074			1,128
Total current assets		401,958			1,021,564

Non-current assets
Non-marketable equity securities		1,500			-
Plant and equipment, net		71,004			69,760
Intangible assets		4,304			630,809
Goodwill		-			1,747,945
Operating lease right-of-use assets, net		227,230			352,354
Prepayments, deposits and other receivables		12,822			102,339
Total non-current assets		316,860			2,903,207

TOTAL ASSETS	$	718,818		$	3,924,771

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accrued expenses and other payables	$	450,555		$	374,269
Contract liabilities		169,951			16,225
Operating lease liability, current		150,381			292,024
Other loans from shareholders, current		260,709			-
Due to shareholders		45,343			53,791
Due to a director		973,564			1,098,374
Bonds payable to related party		600,000			600,000
Convertible notes payable to related parties		-			108,000
Total current liabilities		2,650,503			2,542,683

Non-current liabilities
Operating lease liability, non-current		68,422			60,331
Deferred tax liabilities		-			125,502
Other loans from shareholders, non-current		200,000			-
Convertible notes payable to related parties		-			882,000
Total non-current liabilities		268,422			1,067,833

TOTAL LIABILITIES	$	2,918,925		$	3,610,516

COMMITMENTS AND CONTINGENCIES (Note 16)		-			-

STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding		-			-
Common stock, $0.0001 par value; 600,000,000 shares authorized; 191,770,825 and 157,949,219 shares issued and outstanding as of August 31, 2022 and 2021, respectively		19,177			15,795
Additional paid-in capital		32,339,182			23,470,641
Accumulated other comprehensive income (loss)		362,698			(171,114	)
Accumulated deficits		(34,921,164	)		(23,001,067	)

TOTAL STOCKHOLDERS’ (DEFICIT) EQUITY	$	(2,200,107	)	$	314,255

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	718,818		$	3,924,771

	Number of shares			Amount			PAID IN CAPITAL			COMPREHENSIVE LOSS			ACCUMULATED DEFICITS			EQUITY (DEFICIT)
	COMMON STOCK						ADDITIONAL			OTHER						TOTAL STOCKHOLDERS’
	Number of shares			Amount			PAID IN CAPITAL			COMPREHENSIVE LOSS			ACCUMULATED DEFICITS			EQUITY (DEFICIT)
Balance as of September 1, 2020		135,474,219		$	13,548		$	13,272,673		$	-		$	(11,307,575	)	$	1,978,646
Shares issued to service providers		3,500,000			350			(350	)		-			-			-
Shares issued to employees		9,000,000			900			(900	)		-			-			-
Shares issued in private placement		33,607,500			3,360			3,633,620			-			-			3,636,980
Cancellation of restricted shares issued		(23,632,500	)		(2,363	)		2,363			-			-			-
Share based compensation		-			-			6,563,235			-			-			6,563,235
Foreign currency translation adjustment		-			-			-			(171,114	)		-			(171,114	)
Net loss		-			-			-			-			(11,693,492	)		(11,693,492	)
Balance as of August 31, 2021		157,949,219		$	15,795		$	23,470,641		$	(171,114	)	$	(23,001,067	)	$	314,255

Shares issued to service providers		1,000,000			100			(100	)		-			-			-
Shares issued to employees and consultants for stock award		9,550,850			955			(955	)		-			-			-
Shares issued on conversion of convertible notes		3,600,000			360			4,631,640			-			-			4,632,000
Shares issued on settlement of loan and interests		500,756			50			50,522			-			-			50,572
Shares issued in private placement		19,170,000			1,917			2,288,083			-			-			2,290,000
Share based compensation		-			-			1,899,351			-			-			1,899,351
Foreign currency translation adjustment		-			-			-			533,812			-			533,812
Net loss		-			-			-			-			(11,920,097	)		(11,920,097	)
Balance as of August 31, 2022		191,770,825		$	19,177		$	32,339,182		$	362,698		$	(34,921,164	)	$	(2,200,107	)

	2022			2021
	For the year ended August 31,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(11,920,097	)	$	(11,693,492	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expenses		1,899,351			6,563,235
Depreciation and amortization		134,402			139,133
Amortization of operating lease right-of-use assets		339,688			292,567
Impairment loss on intangible assets and goodwill		2,285,811			1,314,834
Loss on change in fair value of convertible notes		3,980,908			47,092
Exchange difference, net		500,918			(141,902	)
Shares received from software development income (note 6)		(1,500	)		-
Changes in operating assets and liabilities:
Accounts receivable		(3,168	)		(1,536	)
Prepayments, deposits and other receivables		131,410			(70,182	)
Inventory		(7,475	)		(1,105	)
Amount due from a director		-			189,474
Deferred tax liabilities		(125,502	)		(38,138	)
Operating lease liabilities		(348,448	)		(298,670	)
Accrued expenses and other payables		223,744			78,085

Net cash used in operating activities		(2,909,958	)		(3,620,605	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of plant and equipment		(49,033	)		(71,068	)
Acquisition of intangible assets		(1,397	)		(3,483	)

Net cash used in investing activities		(50,430	)		(74,551	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shares issued in private placement		2,290,000			3,636,980
Proceeds from convertible notes issuance		-			800,000
Amount due to a shareholder		2,793			-
Advance from a director		48,287			218,897
Repayment to a director		(176,446	)		(480,151	)
Loan from shareholders		393,934			-
Repayment to shareholders		(170,841	)		(60,075	)
Advance from a shareholder		42,441			-
Repayment to shareholders		(42,790	)		(52,265	)
Loan from a non-related party		10,475			-
Repayment to a non-related party		(10,475	)		-

Net cash provided by financing activities		2,387,378			4,063,386

Effects of exchange rate changes on cash and cash equivalents		(874	)		(13,163	)

Net (decrease) increase in cash and cash equivalents		(573,884	)		355,067
Cash and cash equivalents, beginning of year		787,154			432,087
CASH AND CASH EQUIVALENTS, END OF YEAR	$	213,270		$	787,154

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES
Lease liabilities arising from obtaining right-of-use assets		201,808			395,797
Issuance of shares from conversion of convertible notes (note 13 (b), (d) and (e))		4,632,000			-
Modification of convertible notes to loans (note 13 (a) and (c))		300,000			-
Issuance of shares offset loan balance from shareholder (note 7)		50,572			-

SUPPLEMENTAL CASH FLOWS INFORMATION
Cash paid for income taxes	$	-		$	-
Cash paid for interest	$	117,482		$	66,000

Company name	Place/date of incorporation	Principal activities

1. Leader Financial Group Limited (“LFG”)	Seychelles / March 6, 2017	Investment Holding

2. JFB Internet Service Limited (“JFB”)	Hong Kong / July 6, 2017	Provide an Investment platform

Receipt in advance	August 31, 2022			August 31, 2021

Balance as of September 1	$	16,225		$	2,896
Advances received from customers		492,289			110,485
Revenue recognized		(336,796	)		(97,596	)
Exchange difference		(1,767	)		440
Balance as of August 31	$	169,951		$	16,225

		Expected useful life
Furniture and fixtures		3
Office equipment		3
Leasehold improvements		3