NOTE 5 – INTANGIBLE ASSETS

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

The amortization expense for the three and nine months ended May 31, 2026 was $1,445,409 and $3,467,411, respectively. The amortization expense for the three and nine months ended May 31, 2025 was $594,802 and $849,568, respectively. Estimated future amortization expense is as follows:

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 nine months ended May 31, 2026 and 2025, the Company recognized license revenue of $450,000 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 three months ended May 31, 2025, the Company received the copyright and broadcast right of 1 movie and 1,151 series of TV drama from All In One Media Ltd for a price of $600,000 and $3,455,000, respectively. The movie copyright allows the Company to broadcast globally and the TV drama copyright allows the Company to broadcast globally with the exception of Mainland China. As of May 31, 2025, all of the purchase price had been settled.

During the three months ended May 31, 2025, the Company received the copyright and broadcast right of 20 series of TV drama and 360 series of TV drama from Guangdong Honor Film Co., Ltd. for a price of $57,016 and $913,671, respectively. The copyrights allow the Company to broadcast globally with the exception of Mainland China. As of May 31, 2025, all of the purchase price had been settled. The Company also entered into an agreement with Guangdong Honor Film Co., Ltd. to sell the broadcast rights of the movie for $209,200. The granted broadcast rights are Mainland China exclusive.

During the three months ended May 31, 2025, the Company entered into an agreement with Capitalive Holdings Limited to sell the offline broadcast rights of 5 movies for $201,100 and 3 movies for $440,000. The granted offline broadcast rights are globally exclusive, with the exception of Mainland China.

During the three months ended May 31, 2025, the Company entered into an agreement with Anyone Pictures Limited to sell the broadcast rights of one movie for $356,000. The granted broadcast rights are Mainland China exclusive. (See Note 9)

During the nine months ended May 31, 2025, the total sale amount of intangible assets was $2,064,300 and the total intangible assets received was $6,615,810.

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.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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. During the three months ended May 31, 2026, the Company received the remaining copyrights from All-in-One Media Ltd. of 2,000 series of TV drama. On March 13, 2026, the Company entered into another agreement with All-in-One Media Ltd. to acquire the copyrights and broadcast rights of 2,000 episodes of short form drama series. On April 29, 2026, the Company entered into another agreement with All-in-One Media Ltd. to acquire the copyrights and broadcast rights of 1,000 episodes of short form drama series. During the three months ended May 31, 2026, the Company received the copyrights from All-in-One Media Ltd. of 2,000 series, 2,000 series and 1,000 series of TV drama for a price of $800,000, $700,000 and $400,000, respectively. These copyrights allow the Company to broadcast globally, except for Mainland China.

On December 1, 2025, the Company entered into an agreement with Guangdong Honor Film Co., Ltd. to acquire the copyrights and broadcast rights of 1,323 episodes of short form drama series. On April 1, 2026, the Company entered into another agreement to acquire the copyrights and broadcast rights of 166 episodes of short form drama series. During the three months ended May 31, 2026, the Company received the copyrights from Guangdong Honor Film Co., Ltd. of 1,323 series and 166 series of TV drama for a price of $544,872 and $57,692, respectively. These copyrights allow the Company to broadcast globally, except for Mainland China.

The Company entered into an agreement to acquire a license to the intellectual property (“IP”) of ufilm from AIHUB Releasing, Inc., 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 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.  (See Note 7)

On March 1, 2026, the Company entered into an irrevocable tripartite term sheet with Honrado Filmes AI Limitada Inc. ("Seller") and Aixdance LLC ("Verifier") regarding the proposed acquisition of an advanced multi-agent content engine and monetization infrastructure, including related source code, AI models, datasets, prompts, marketplace infrastructure, intellectual property, and other associated assets. Under the term sheet, the transaction was subject to a testing and verification process to be independently validated by the Verifier. Following completion of the testing process and receipt of a verification report confirming that the assets met the agreed performance requirements, the Company entered into an Asset Purchase Agreement with the Seller on May 10, 2026. Pursuant to the Asset Purchase Agreement, the Company agreed to acquire all rights, title, and interest in the acquired assets for total consideration of $1.2 million. The purchase price is payable in cash and is due within three months of the execution date of the Asset Purchase Agreement. Upon closing, the Seller is required to transfer all related intellectual property rights, including copyrights, trade secrets, proprietary technology, source code, datasets, AI models, and related documentation, to the Company. The acquired technology and intellectual property were subsequently integrated into the Company's existing Ufilm platform. Following further development and enhancement by Zestv, the platform was upgraded and launched as Ufilm v2.0. The upgraded platform incorporates advanced multi-agent artificial intelligence capabilities and monetization infrastructure obtained through the acquisition. The upgraded Ufilm v2.0 commenced commercial operations and generated revenue during the three months ended May 31, 2026. Management believes the acquired technology has enhanced the functionality and commercialization capabilities of the Ufilm platform. As of May 31, 2026, the Company had completed the acquisition and had accrued $1,200,000 of the purchase consideration.

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 $684,136 and $451,000 from Capitalive Holdings Limited during the nine months ended May 31, 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 nine months ended May 31, 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 $955,269 and $0 from Anyone Pictures Ltd during the nine months ended May 31, 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 $1,047,300 and $0 from Uflix.ai LLC during the nine months ended May 31, 2026 and 2025.

On May 1, 2026, the Company entered into an agreement with AIXdance 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 $275,000 and $0 from AIXdance LLC during the nine months ended May 31, 2026 and 2025.

During the nine months ended May 31, 2026, the total sale amount of intangible assets was $0 and the total intangible assets addition was $8,062,820.