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, and the expiration date is February 1, 2027. 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 May 2026. The reduced rental payments are accounted for as a rent concession and recognized in general and administrative expenses

Total lease expense for the nine months ended May 31, 2026 and 2025 was $93,298 and $96,926, 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:

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)