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Kisco NY 10549 (917) 336-2398 Yes Yes Non-accelerated Filer true false false 5988733 115836 13691 1988 8508 129000 330133 219408 576957 241607 1045 2472 137394 291064 9367833 4772424 1311349 45240 45240 10128469 6664156 1384973 88063 42052 1811396 171214 253785 4432209 1338389 373506 538415 541276 7483645 3491633 107098 7483645 3598731 0.001 0.001 10000000 10000000 100000 100000 100000 100000 0.001 0.001 10000000000 10000000000 5801681 5801681 4016107 4016107 5801 4016 14757961 13451528 -12119038 -10390219 2644824 3065425 10128469 6664156 6558366 958828 1438820 579800 433307 285000 1180300 850300 884000 356000 176824 221954 63019 59089 7168497 3530082 1501839 1845189 3467411 849568 1445409 594802 1510921 780871 85681 118598 35849 25995 1155449 479789 715496 132297 983989 499000 583989 400000 -5692530 -3457876 -2780743 -1933965 1475967 72206 -1278904 -88776 -3093820 -3044828 98998 142598 -209964 -40041 -147863 -36468 7486 -3204786 -32555 -3050093 -36468 -1728819 39651 -4328997 -125244 -1728819 39651 -4328997 -125244 -0.40 0.02 -0.79 -0.04 -0.40 0.02 -0.79 -0.04 4343698 1851272 5459342 3161487 4343698 1951272 5459342 3161487 2141107 2141 100000 100 13606901 -11680772 1928370 875000 875 349125 350000 1000000 1000 399000 400000 36468 36468 -125244 -125244 4016107 4016 100000 100 14391494 -11806016 2589594 1141107 1141 100000 100 13304328 -11845667 1459902 1875000 1875 648125 650000 1000000 1000 399000 400000 40041 40041 39651 39651 4016107 4016 100000 100 14391494 -11806016 2589594 4148164 4148 100000 100 14008593 -7790041 6222800 350000 350 170750 171100 1233517 1233 483093 484326 70000 70 54330 54400 41110 41110 85 85 -4328997 -4328997 5801681 5801 100000 100 14757961 -12119038 2644824 4016107 4016 100000 100 13451528 -10390219 3065425 184057 184 131616 131800 2233517 2233 882093 884326 1243000 1243 899337 900580 41110 41110 -1875000 -1875 -673125 -675000 25402 25402 -1728819 -1728819 5801681 5801 100000 100 14757961 -12119038 2644824 -1728819 39651 131800 884326 400000 41110 1427 1428 3467411 849568 -98998 163419 21143 3093820 1510921 25402 40041 35999 32372 110725 -514277 6520 -10808 5453871 7115289 75767 -17181 541276 -57000 1025009 -3876764 -2573344 3257850 802980 650000 847500 -922864 3907850 102145 31086 13691 64430 115836 95516 97600 675000 129000 1200000 <p id="xdx_80B_eus-gaap--OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock_zzD07jXkXPZi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 1 –BASIS OF PRESENTATION</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited consolidated financial statements of AI Era Corp. (Formerly known as AB International Group Corp.) (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities Exchange Commission. Certain information and footnote disclosures normally included in consolidated financial statements have been omitted pursuant to such rules and regulations. The consolidated balance sheet as of August 31, 2025 derived from the audited consolidated financial statements at that date, but does not include all the information and footnotes required by GAAP. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited consolidated financial statements as of and for the three and nine months ended May 31, 2026 and 2025, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition, results of operations and cash flows. The results of operations for the three and nine months ended May 31, 2026 and 2025 are not necessarily indicative of the results to be expected for any other interim period or for the entire year. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_80E_eus-gaap--SignificantAccountingPoliciesTextBlock_zFpmU2DmLvp2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_845_eus-gaap--ConsolidationPolicyTextBlock_z8OYWBLWomt3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Principles of Consolidation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements have been prepared on a consolidated basis, with the Company’s wholly owned subsidiaries, App Board Limited, AB Cinemas NY, Inc and AI+ Hubs Corp. All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--UseOfEstimates_z01aNXCCbYq2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Use of Estimates</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_849_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zv8ZhsGd0aa5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Cash and Cash Equivalents</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_849_eus-gaap--AccountsAndNontradeReceivableTextBlock_zsZXcxRD4GE2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Accounts receivable</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable is presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. <span id="xdx_90E_eus-gaap--AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables_iI_do_c20260531_zftSRoLJoSbi"><span id="xdx_909_eus-gaap--AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables_iI_do_c20250531_z6oPGiXNk676">No</span></span> allowance was recorded for the three and nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b></b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_840_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zYULsRB5gBW9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Foreign Currency Transactions</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial risk arises from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Gains and losses from translation of foreign currency into U.S. dollars are included in current results of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_849_eus-gaap--ReceivablesAndPortionsOfSecuritizationsThatCanBePrepaidAtPotentialLossPolicyPolicyTextBlock_zFm0pYejqXpd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Purchase Deposits </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="font-family: TimesNewRomanPSStd-Regular,serif">Purchase deposits primarily consist of payments made to acquire the copyrights and distribution rights of movies, Television series, short-form drama series and intellectual property of ufilm, etc. Purchase deposits are classified as either current or non-current based on the nature and the terms of the respective agreements. These purchase deposits are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. Purchase deposits are written off against the allowances only after exhaustive collection efforts. </span><span style="font-family: Times New Roman, Times, Serif">No allowance was recorded for the three and nine months ended May 31, 2026 and 2025.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_zrD02Bhd4U11" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Property and Equipment, net</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvement is related to the enhancements paid by the Company to leased offices. Leasehold improvement represents capital expenditures for direct costs of renovation or acquisition and design fees incurred. The amortization of leasehold improvements commences once the renovation is completed and ready for the Company’s intended use.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_880_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zQRc1kMsPbM" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life (Details)"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-bottom: 1pt">Estimated Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 45%">Furniture</td><td style="width: 10%"> </td> <td style="width: 45%; text-align: center">7 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Appliances</td><td> </td> <td style="text-align: center">5 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Leasehold improvement</td><td> </td> <td style="text-align: center">Lesser of useful life and lease term</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations in other income or expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>  </b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_844_eus-gaap--IntangibleAssetsFiniteLivedPolicy_zURR0nq9pdM9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Intangible Assets</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets are recorded at the lower of cost or estimated fair value and amortized as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 2%"> </td> <td style="width: 1%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">•</span></td> <td style="width: 97%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Movie copyrights and broadcast rights: <span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetsAmortizationMethod_c20250901__20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CopyrightsMember_zCXhFwi1sPg9">straight-line method over the estimated life of the asset</span>, which has been determined by management to be <span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CopyrightsMember_zfLnNQTcqvv1">2 years</span></span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">•</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NFT MMM platform: <span id="xdx_904_eus-gaap--FiniteLivedIntangibleAssetsAmortizationMethod_c20250901__20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTPlatformMember_zKEhqroAutnc">straight-line method over the estimated life of the asset</span>, which has been determined by management to be <span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTPlatformMember_zVQtiQ86lA6f">2 years</span></span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">•</span></td> <td style="text-align: justify"><span style="font-family: TimesNewRomanPSStd-Regular,serif; font-size: 10pt">Intellectual property of ufilm: </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetsAmortizationMethod_c20250901__20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--IntellectualPropertyOfUfilmMember_zbhUUuziPql4">straight-line method over the estimated life of the asset</span>, which has been determined by management to be <span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--IntellectualPropertyOfUfilmMember_z2A0VUhHBMac">5 years</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortized costs of the intangible asset are recorded as amortization expenses in the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--LesseeOperatingLeasesTextBlock_zAbFJOHwru69" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Lease property under operating lease</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted ASU No. 2016-02—Leases (Topic 842) since June 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact the Company’s consolidated net earnings and cash flows.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_zNJ4jVRCcQVj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Impairment of Long-lived asset</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350. Such impairment test compares the fair values of assets with their carrying values with an impairment loss recognized when the carrying values exceed fair values. For long-lived assets and intangible assets with finite lives that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Impairment losses are included in the general and administrative expense. There was <span id="xdx_90F_eus-gaap--ImpairmentOfLongLivedAssetsHeldForUse_do_c20260301__20260531_zeQOQTCUkDfk"><span id="xdx_90B_eus-gaap--ImpairmentOfLongLivedAssetsHeldForUse_do_c20250901__20260531_zIp8dVxDHDW3"><span id="xdx_902_eus-gaap--ImpairmentOfLongLivedAssetsHeldForUse_do_c20250301__20250531_zp4jwr77lw2g"><span id="xdx_90D_eus-gaap--ImpairmentOfLongLivedAssetsHeldForUse_do_c20240901__20250531_ztEkSxkBdpM5">no</span></span></span></span> impairment loss during the three and nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_842_eus-gaap--RevenueRecognitionPolicyTextBlock_zbzamWNVqis6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue Recognition</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue Recognition</span> (continued)</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will <i>not</i> occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company derives its revenues primarily from the following sources:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from selling copyrights of movies or </i>television series:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from the sale of copyrights for movies or television series is recognized at a point in time when control of the intellectual property transfers to the customer. Control is considered transferred upon delivery of the master copy and completion of all requisite authorization procedures, as this is the point at which the customer has the legal right to direct the use of, and obtain substantially all of the remaining benefits from the copyright. Contracts are generally fixed-price arrangements without cancellation or refund provisions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from licensing NFT MMM platform: </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from NFT MMM platform licensing is recognized over time on a straight-line basis over the contractual license term, typically one or two years. The Company determined that the license provides customers the access to the platform and its data through both mobile and web interfaces for the license period, as the customer simultaneously receives and consumes the benefits provided by the Company's performance. The arrangements are non-cancelable and non-refundable with fixed consideration.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/105% Times New Roman, Times, Serif; margin: 0 0 8pt"><i>Revenue from movie theater admissions and food and beverage sales:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from movie theater admissions is recognized at a point in time when the movie is exhibited to customers, as this is when the performance obligation is satisfied. Food and beverage revenue is recognized at a point in time when customers take possession of the items. Revenue from gift cards and exchange ticket sales is deferred until redemption occurs or upon estimation of breakage income for gift cards with a remote likelihood of redemption.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from embedded marketing service:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company earns revenue from embedded marketing services by incorporating advertisements into movies, television series or short-form drama series. Revenue is recognized at a point in time when the advertisement has been integrated into the media content and customer approval, as the customer can then direct the use of and obtain substantially all future economic benefits from the customized media content.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from consulting services:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company derives revenue from providing consulting services related to software development, corporate restructuring and strategic advisory. The Company also provides AI-based solutions and project oversight services that enhance content market accuracy, personalization, and advertising monetization for short drama platforms. Revenue from consulting services is recognized over time as the related services are performed, consistent with the continuous transfer of benefits to the customer.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> <b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue Recognition</span> (continued)</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from advertising services in theaters</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates advertising revenue from displaying commercials on theater screens prior to movie exhibitions. Revenue is recognized at a point in time when the advertisement is exhibited on screen to the audience.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from broadcast and download licensing </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company grants non-exclusive, time-based licenses that allow customers to broadcast or provide download service of its films and television series, primarily short-form drama series, on their web or cloud-based platforms. License fees are charged per movie or per drama series based on the authorized period, typically on a monthly basis, and are not linked to user activity or download volume. The customer obtains a right to access the content during the license term. The Company satisfies its performance obligation by making the licensed content available to the customer and maintaining that accessibility throughout the license term. Accordingly, revenue is recognized over time on a straight-line basis throughout the license period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from license of short-form drama for AI training pilot</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue from licensing its short-form drama content library for artificial intelligence training purposes. Under these arrangements, the Company grants customers a non-exclusive, non-transferable license to access and use its content for machine learning, testing, and model optimization. Revenue related to the initial license is generally recognized over time as the services are provided. To the extent contracts include ongoing content updates or support services, such components are accounted for as separate performance obligations and recognized over time as the services are provided. Fees for optional data processing or technical support services are recognized as the services are performed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from licensing uFilm platform</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue from providing 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. These services are combined into a single performance obligation and revenue is recognized ratably over the contract term as customers simultaneously receive and consume the benefits.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company also provides installation services at contract inception, which are distinct from the SaaS services. Revenue from installation services is recognized at a point in time when the installation is completed and control is transferred to the customer.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition to subscription fees, the Company is entitled to fixed guaranteed payments that are contractually agreed upon and not contingent on customer usage or revenue. These amounts are recognized over time as part of the performance obligation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company provides licensed data for AI training purposes, which is a separate performance obligation. Revenue from data usage is recognized over time as the services are provided.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Contract Assets and Liabilities</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contract assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026 and August 31, 2025, the Company had contract liabilities of <span id="xdx_90D_eus-gaap--ContractWithCustomerLiability_iI_c20260531_zYCGh8TmAB5l">$541,276</span> and <span id="xdx_90D_eus-gaap--ContractWithCustomerLiability_iI_c20250831_zTtMmLlqhF0f">$0</span>, respectively. Other than accounts receivable and contract liabilities, the Company had <span id="xdx_904_eus-gaap--ContractWithCustomerAssetNet_iI_do_c20250831_zM02Fsmkl27b">no</span> material contract assets, or deferred contract costs recorded on its consolidated balance sheets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Disaggregation of revenue</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company disaggregates its revenue from contracts by revenue streams, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents sales by revenue streams for the three and nine months ended May 31, 2026 and 2025, respectively:</p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--DisaggregationOfRevenueTableTextBlock_zm6qQk8DHTFb" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES - Revenue Streams (Details)"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_49C_20260301__20260531_zM2EIdXEs05b"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_496_20250301__20250531_z7tpWMdsa7Cd"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Theater admissions</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zR5EMG5oXBA9" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">44,692</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zwuiPZ6JuV2" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">30,743</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Food and beverage sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zS1ipPGBI8W4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">18,327</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zxRhxZfzchFc" style="font: 10pt Times New Roman, Times, Serif; text-align: right">16,389</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Theater advertisement</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zCYiU46ZT7r2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0678">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zm7PVISlnk57" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">11,957</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueNotFromContractWithCustomer_zlpJMotry5p1" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Theater revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">63,019</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">59,089</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for broadcast and download</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_zX9kIJdIj5X8" style="font: 10pt Times New Roman, Times, Serif; text-align: right">168,696</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_z7M2XjYWT9P3" style="font: 10pt Times New Roman, Times, Serif; text-align: right">451,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for NFT platform</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_zrDrE8lMTmh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">150,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_z5o2sb9XcwDd" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0686">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Embedded marketing service</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zAVIokn94D3h" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0687">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zkByUq7NbzZh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">128,800</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">License of short-form drama for AI training pilot</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zrCSCaKQt4g7" style="font: 10pt Times New Roman, Times, Serif; text-align: right">77,951</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zUNC45YgG3wd" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0690">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Licensing for uFilm platform</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zJTrCxLy2u88" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,042,173</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zyAUztV7WNX5" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0692">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--ServicesRevenue_zad3jrqkW5Eh" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Service revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,438,820</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">579,800</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--CopyrightsSalesRevenue_zUZsxG4JRbP7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Copyrights sales</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0697">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,206,300</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--Revenues_zKVaqjXuN7ue" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,501,839</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,845,189</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20250901__20260531_zhgB8EfH23K"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20240901__20250531_zhwPvWpedN47"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Theater admissions</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zL4BvjLpj23b" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">123,069</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_z8G8FUoQ1loe" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">136,347</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Food and beverage sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_982_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zI1ZCPUSsGQg" style="font: 10pt Times New Roman, Times, Serif; text-align: right">49,037</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zbMrzoSh3TBc" style="font: 10pt Times New Roman, Times, Serif; text-align: right">63,026</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Theater advertisement</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zGF66S23c2U" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,718</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_z1k9w3IJG7L" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">22,581</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueNotFromContractWithCustomer_zkYsYhhaeau3" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Theater revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">176,824</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">221,954</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for broadcast and download</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_zSJEk854euo4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,304,376</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_z9YeGKBbm51j" style="font: 10pt Times New Roman, Times, Serif; text-align: right">451,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for NFT platform</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_zopd9qx8FtGg" style="font: 10pt Times New Roman, Times, Serif; text-align: right">450,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_z60AN7cNchFi" style="font: 10pt Times New Roman, Times, Serif; text-align: right">285,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Embedded marketing service</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zNvdc0lrcDoh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,588,220</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zMzPt0woL6Of" style="font: 10pt Times New Roman, Times, Serif; text-align: right">507,828</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Consulting services</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--ConsultingServicesMember_zDPcVGf9WCL4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">371,507</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--ConsultingServicesMember_z9qu1yIdKOc5" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0718">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">License of short-form drama for AI training pilot</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_z5G2tG51oRmf" style="font: 10pt Times New Roman, Times, Serif; text-align: right">955,270</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zLmafmIhHH7g" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0720">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Licensing for uFilm platform</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zA0UgeBhG2Ua" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,322,300</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_z3nhsAm3yXPg" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0722">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--ServicesRevenue_zWtLOG1rMv9j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Service revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">6,991,673</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,243,828</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--CopyrightsSalesRevenue2_zV9HYzdA38b4" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Copyrights sales</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0727">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">2,064,300</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--Revenues_zOLl8NPdAQS6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">7,168,497</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">3,530,082</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A3_zgrxV95jV9G2" style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zyPFJDNeCnYa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Fair Value of Financial Instruments</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2 – Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3 – Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying values of cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short-term nature.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Warrant liability and derivative liability were measured at fair value on a recurring basis as of May 31, 2026 and August 31, 2025, respectively.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock_ztqFjZHsRY3a" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Warrant and Derivative Liability (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="3" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b><span style="text-decoration: underline">Level 3</span></b></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="3" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">   <b><span style="text-decoration: underline">Level 3</span></b></span></td></tr> <tr id="xdx_404_ecustom--WarrantLiability_iI_zyEgoOHNWbj9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Warrants Liability</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">4,432,209</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">1,338,389</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DerivativeLiabilities_iI_zx42bR2x3vtc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Derivative liability</td><td style="font: 10pt Times New Roman, Times, Serif; color: #212529; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #212529; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #212529; text-align: right">538,415</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; color: #212529; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--WarrantAndDeririvativeLiability_z2TjCVEyTFTf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman PS Std,serif; padding-bottom: 1pt">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,970,624</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,338,389</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_844_ecustom--AccountingForDerivativeInstrumentsPolicyTextBlock_zt0rHCSHJDg2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Accounting for Derivative Instruments</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for convertible promissory notes in accordance with ASC 470, Debt, and evaluates embedded features in accordance with ASC 815, Derivatives and Hedging.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Embedded features are assessed to determine whether they are clearly and closely related to the host contract and whether they are indexed to the Company’s own stock in accordance with ASC 815-40. Features that do not meet the scope exception for equity classification are bifurcated and accounted for separately as derivative liabilities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Derivative liabilities are initially recognized at fair value on the issuance date and are subsequently remeasured at fair value at each reporting date, with changes in fair value recognized in the consolidated statements of operations. The Company classifies derivative liabilities as Level 3 within the fair value hierarchy under ASC 820 because their valuation involves significant unobservable inputs.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At issuance, the Company allocates the proceeds received between the host debt and the embedded derivative liability in accordance with ASC 815-15-30-2. The initial carrying amount of the host debt is determined as the difference between the proceeds received and the fair value of the embedded derivative. If the fair value of the embedded derivative exceeds the proceeds received, the excess is recognized as a loss on issuance in the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Debt issuance costs and original issue discounts are accounted for in accordance with ASC 835-30. To the extent a host debt component is recognized, such amounts are recorded as a reduction of the carrying amount of the debt and amortized to interest expense over the term of the instrument using the effective interest method. If no amount is allocated to the host debt, debt issuance costs are recognized in earnings as incurred. Interest expense on convertible promissory notes includes both contractual coupon interest and the amortization of any debt discount recognized at issuance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--EarningsPerSharePolicyTextBlock_zo97vdAJWsci" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Basic and Diluted Earnings Per Share</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. No warrants were included in the diluted income per share as they would be anti-dilutive. During the nine months ended May 31, 2025, preferred stocks were included in the diluted earnings per share as they would be dilutive.</p> <table cellpadding="0" cellspacing="0" id="xdx_890_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zCXAzzQcvvR4" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details)"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_499_20260301__20260531_z7enG4nYtwBd"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49A_20250301__20250531_zYBIVaWXigVi"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 9.5pt Times New Roman, Times, Serif; text-align: center">Three Months Ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>May 31, 2026</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zoWGJAxNfjif" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Net Loss</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zaXpJYmXNXEi" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_zFK7PtDubkxl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Basic EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.79</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.04</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zNnHBclQgQaa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Net Loss</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr id="xdx_400_ecustom--AdjustedNetIncome_z7jwaDBhXagj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Adjusted net loss</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zwKOQec2q3c2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AmountOfDilutiveSecuritiesESOPConvertiblePreferredStock_z9cUSswKmWL6" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Add: Preferred shares A</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0764">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0765">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_z6sEkkq8vVL3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Diluted*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_zNGtnlutmCmb" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.79</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.04</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_49D_20250901__20260531_zrNOTTjnyAwi"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_499_20240901__20250531_zT0bAQIe81v4"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 9.5pt Times New Roman, Times, Serif; text-align: center">Nine months Ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>May 31, 2026</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zN9u2312lpDd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Net (Loss) Income</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_z5n9GFRCEFvc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,851,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_zi7ybtWaYq3k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Basic EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.40</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">0.02</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zyjrEnblHN89" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Net (Loss) Income</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--AdjustedNetIncome_zwDobQ9GMYJj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Adjusted net (loss) income</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zvhwKlFs1yTd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,851,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AmountOfDilutiveSecuritiesESOPConvertiblePreferredStock_zf7bnawQ3VWh" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Add: Preferred shares A</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0791">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">100,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_zcpF794BkcL7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Diluted*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,951,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_zdlKpwb9gDl9" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.40</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">0.02</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> <p id="xdx_8AA_ziwTElIOqOJa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">*Retroactively restated for the effect of reverse stock split (see Note 10).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_847_eus-gaap--Reclassifications_zhgxWScAioPk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Reclassification</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain prior period amounts of revenue in consolidated statements of operations and purchase of intangible assets in consolidated statements of cash flows have been reclassified to conform to the current period presentation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--CreditLossFinancialInstrumentPolicyTextBlock_zqfZ8rueKlYa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Warrants</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for warrants in accordance with ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging. Warrants are evaluated at issuance to determine whether they meet the criteria for equity classification under ASC 815-40, Contracts in Entity’s Own Equity. Warrants that do not meet the equity classification criteria are classified as warrant liabilities. Equity-classified warrants are recorded in additional paid-in capital and are not subsequently remeasured.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Warrant liabilities are initially recognized at fair value on the issuance date and are subsequently remeasured at fair value at each reporting date until exercised, expired, or otherwise settled. Changes in fair value are recognized in earnings within the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of warrant liabilities is determined in accordance with ASC 820, Fair Value Measurement, using valuation techniques such as option-pricing models that incorporate assumptions including expected volatility, risk-free interest rate, expected term, and the Company’s stock price.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--IncomeTaxPolicyTextBlock_zvflvUbElyyj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Income Taxes</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred income taxes assets and liabilities are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84E_eus-gaap--CompensationRelatedCostsGeneralTextBlock_zr4cZAXLaHh7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Share-Based Compensation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee share-based awards. For employee share-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84C_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zxdqnbb3RzZc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Segment reporting</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Company follows ASU No. 2023-07, “Segment Reporting (Topic 280)”, which improves the disclosures about a public entity’s reportable segments and address requests from investors for more detailed information about a reportable segment’s expenses. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b></b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.) </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)   </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_849_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zkI7tFk3mgrc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Recent Accounting Pronouncements</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This pronouncement introduces new disclosure requirements aimed at enhancing transparency in financial reporting by requiring disaggregation of specific income statement expense captions. Under the new guidance, entities are required to disclose a breakdown of certain expense categories, such as: employee compensation; depreciation; amortization, and other material components. The disaggregated information can be presented either on the face of the income statement or in the notes to the financial statements, often using a tabular format. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. In January 2025, the FASB issued ASU 2025-01, which revises the effective date of ASU 2024-03 (on disclosures about disaggregation of income statement expenses) “to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.” Entities within the ASU’s scope are permitted to early adopt the ASU. The Company is currently evaluating the impact of this standard on its financial statement disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. ASU 2025-03 clarifies the guidance to determine the accounting acquirer in a business combination that is effected primarily by exchanging equity interests, when the legal acquiree is a variable interest entity (“VIE”) that meets the definition of a business. ASU 2025-03 requires entities to consider the same factors in ASC 805, Business Combinations, required for determining which entity is the accounting acquirer in other acquisition transactions. ASU 2025-03 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-03 is required to be applied on a prospective basis to any acquisition transaction that occurs after the initial application date. The Company does not expect a material effect on its consolidated financial statements upon adoption.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2025, the FASB issued ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). ASU 2025-04 revises the definition of the term performance condition for share-based consideration payable to a customer to incorporate conditions that are based on the volume or monetary amount of a customer’s purchases or potential purchases. ASU 2025-04 also eliminates the policy election to account for forfeitures as they occur for awards with service conditions. ASU 2025-04 also clarifies that ASC 606 variable consideration guidance does not apply to share-based payments to customers; instead, vesting probability should be assessed solely under ASC 718, Compensation—Stock Compensation. ASU 2025-04 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-04 may be applied on either a modified retrospective basis or on a retrospective basis. The Company is currently assessing the impact this standard will have on the Company’s Consolidated Financial Statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 amends ASC 326, Financial Instruments—Credit Losses, and introduces a practical expedient available for all entities and an accounting policy election available for all entities, other than public business entities, that elect the practical expedient. These changes apply to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue Recognition. Under the practical expedient, entities may assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the asset when developing reasonable and supportable forecasts. This simplifies the estimation process for short-term financial assets. ASU 2025-05 is effective for the Company’s annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-05 should be applied on a prospective basis. The Company does not expect a material effect on its consolidated financial statements upon adoption.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-06, Intangibles - Goodwill and Other (Topic 350) — Internal-Use Software (Subtopic 350-40): Targeted Improvements. This update provides clarifications and targeted improvements to the accounting for internal-use software, including enhanced guidance on the identification of software development activities, capitalization of implementation costs, and accounting for subsequent upgrades and maintenance. ASU 2025-06 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The Company does not expect a material effect on its consolidated financial statements upon adoption.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Except for the above-mentioned pronouncements, there are no new recently issued accounting standards that will have a material impact on the balance sheets, statements of operations and comprehensive income and cash flows. </p> <p id="xdx_851_zlNpjIw8ZNag" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_845_eus-gaap--ConsolidationPolicyTextBlock_z8OYWBLWomt3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Principles of Consolidation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements have been prepared on a consolidated basis, with the Company’s wholly owned subsidiaries, App Board Limited, AB Cinemas NY, Inc and AI+ Hubs Corp. All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--UseOfEstimates_z01aNXCCbYq2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Use of Estimates</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_849_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zv8ZhsGd0aa5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Cash and Cash Equivalents</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_849_eus-gaap--AccountsAndNontradeReceivableTextBlock_zsZXcxRD4GE2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Accounts receivable</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable is presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. <span id="xdx_90E_eus-gaap--AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables_iI_do_c20260531_zftSRoLJoSbi"><span id="xdx_909_eus-gaap--AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables_iI_do_c20250531_z6oPGiXNk676">No</span></span> allowance was recorded for the three and nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b></b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 0 0 <p id="xdx_840_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zYULsRB5gBW9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Foreign Currency Transactions</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial risk arises from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Gains and losses from translation of foreign currency into U.S. dollars are included in current results of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_849_eus-gaap--ReceivablesAndPortionsOfSecuritizationsThatCanBePrepaidAtPotentialLossPolicyPolicyTextBlock_zFm0pYejqXpd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Purchase Deposits </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="font-family: TimesNewRomanPSStd-Regular,serif">Purchase deposits primarily consist of payments made to acquire the copyrights and distribution rights of movies, Television series, short-form drama series and intellectual property of ufilm, etc. Purchase deposits are classified as either current or non-current based on the nature and the terms of the respective agreements. These purchase deposits are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. Purchase deposits are written off against the allowances only after exhaustive collection efforts. </span><span style="font-family: Times New Roman, Times, Serif">No allowance was recorded for the three and nine months ended May 31, 2026 and 2025.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_zrD02Bhd4U11" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Property and Equipment, net</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvement is related to the enhancements paid by the Company to leased offices. Leasehold improvement represents capital expenditures for direct costs of renovation or acquisition and design fees incurred. The amortization of leasehold improvements commences once the renovation is completed and ready for the Company’s intended use.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_880_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zQRc1kMsPbM" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life (Details)"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-bottom: 1pt">Estimated Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 45%">Furniture</td><td style="width: 10%"> </td> <td style="width: 45%; text-align: center">7 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Appliances</td><td> </td> <td style="text-align: center">5 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Leasehold improvement</td><td> </td> <td style="text-align: center">Lesser of useful life and lease term</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations in other income or expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>  </b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_880_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zQRc1kMsPbM" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life (Details)"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-bottom: 1pt">Estimated Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 45%">Furniture</td><td style="width: 10%"> </td> <td style="width: 45%; text-align: center">7 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Appliances</td><td> </td> <td style="text-align: center">5 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Leasehold improvement</td><td> </td> <td style="text-align: center">Lesser of useful life and lease term</td></tr> </table> <p id="xdx_844_eus-gaap--IntangibleAssetsFiniteLivedPolicy_zURR0nq9pdM9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Intangible Assets</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets are recorded at the lower of cost or estimated fair value and amortized as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 2%"> </td> <td style="width: 1%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">•</span></td> <td style="width: 97%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Movie copyrights and broadcast rights: <span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetsAmortizationMethod_c20250901__20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CopyrightsMember_zCXhFwi1sPg9">straight-line method over the estimated life of the asset</span>, which has been determined by management to be <span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CopyrightsMember_zfLnNQTcqvv1">2 years</span></span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">•</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NFT MMM platform: <span id="xdx_904_eus-gaap--FiniteLivedIntangibleAssetsAmortizationMethod_c20250901__20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTPlatformMember_zKEhqroAutnc">straight-line method over the estimated life of the asset</span>, which has been determined by management to be <span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTPlatformMember_zVQtiQ86lA6f">2 years</span></span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">•</span></td> <td style="text-align: justify"><span style="font-family: TimesNewRomanPSStd-Regular,serif; font-size: 10pt">Intellectual property of ufilm: </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetsAmortizationMethod_c20250901__20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--IntellectualPropertyOfUfilmMember_zbhUUuziPql4">straight-line method over the estimated life of the asset</span>, which has been determined by management to be <span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--IntellectualPropertyOfUfilmMember_z2A0VUhHBMac">5 years</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortized costs of the intangible asset are recorded as amortization expenses in the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> straight-line method over the estimated life of the asset P2Y straight-line method over the estimated life of the asset P2Y straight-line method over the estimated life of the asset P5Y <p id="xdx_84A_eus-gaap--LesseeOperatingLeasesTextBlock_zAbFJOHwru69" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Lease property under operating lease</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted ASU No. 2016-02—Leases (Topic 842) since June 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact the Company’s consolidated net earnings and cash flows.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_zNJ4jVRCcQVj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Impairment of Long-lived asset</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350. Such impairment test compares the fair values of assets with their carrying values with an impairment loss recognized when the carrying values exceed fair values. For long-lived assets and intangible assets with finite lives that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Impairment losses are included in the general and administrative expense. There was <span id="xdx_90F_eus-gaap--ImpairmentOfLongLivedAssetsHeldForUse_do_c20260301__20260531_zeQOQTCUkDfk"><span id="xdx_90B_eus-gaap--ImpairmentOfLongLivedAssetsHeldForUse_do_c20250901__20260531_zIp8dVxDHDW3"><span id="xdx_902_eus-gaap--ImpairmentOfLongLivedAssetsHeldForUse_do_c20250301__20250531_zp4jwr77lw2g"><span id="xdx_90D_eus-gaap--ImpairmentOfLongLivedAssetsHeldForUse_do_c20240901__20250531_ztEkSxkBdpM5">no</span></span></span></span> impairment loss during the three and nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 0 0 0 0 <p id="xdx_842_eus-gaap--RevenueRecognitionPolicyTextBlock_zbzamWNVqis6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue Recognition</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue Recognition</span> (continued)</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will <i>not</i> occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company derives its revenues primarily from the following sources:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from selling copyrights of movies or </i>television series:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from the sale of copyrights for movies or television series is recognized at a point in time when control of the intellectual property transfers to the customer. Control is considered transferred upon delivery of the master copy and completion of all requisite authorization procedures, as this is the point at which the customer has the legal right to direct the use of, and obtain substantially all of the remaining benefits from the copyright. Contracts are generally fixed-price arrangements without cancellation or refund provisions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from licensing NFT MMM platform: </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from NFT MMM platform licensing is recognized over time on a straight-line basis over the contractual license term, typically one or two years. The Company determined that the license provides customers the access to the platform and its data through both mobile and web interfaces for the license period, as the customer simultaneously receives and consumes the benefits provided by the Company's performance. The arrangements are non-cancelable and non-refundable with fixed consideration.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/105% Times New Roman, Times, Serif; margin: 0 0 8pt"><i>Revenue from movie theater admissions and food and beverage sales:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from movie theater admissions is recognized at a point in time when the movie is exhibited to customers, as this is when the performance obligation is satisfied. Food and beverage revenue is recognized at a point in time when customers take possession of the items. Revenue from gift cards and exchange ticket sales is deferred until redemption occurs or upon estimation of breakage income for gift cards with a remote likelihood of redemption.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from embedded marketing service:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company earns revenue from embedded marketing services by incorporating advertisements into movies, television series or short-form drama series. Revenue is recognized at a point in time when the advertisement has been integrated into the media content and customer approval, as the customer can then direct the use of and obtain substantially all future economic benefits from the customized media content.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from consulting services:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company derives revenue from providing consulting services related to software development, corporate restructuring and strategic advisory. The Company also provides AI-based solutions and project oversight services that enhance content market accuracy, personalization, and advertising monetization for short drama platforms. Revenue from consulting services is recognized over time as the related services are performed, consistent with the continuous transfer of benefits to the customer.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> <b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue Recognition</span> (continued)</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from advertising services in theaters</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates advertising revenue from displaying commercials on theater screens prior to movie exhibitions. Revenue is recognized at a point in time when the advertisement is exhibited on screen to the audience.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from broadcast and download licensing </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company grants non-exclusive, time-based licenses that allow customers to broadcast or provide download service of its films and television series, primarily short-form drama series, on their web or cloud-based platforms. License fees are charged per movie or per drama series based on the authorized period, typically on a monthly basis, and are not linked to user activity or download volume. The customer obtains a right to access the content during the license term. The Company satisfies its performance obligation by making the licensed content available to the customer and maintaining that accessibility throughout the license term. Accordingly, revenue is recognized over time on a straight-line basis throughout the license period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from license of short-form drama for AI training pilot</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue from licensing its short-form drama content library for artificial intelligence training purposes. Under these arrangements, the Company grants customers a non-exclusive, non-transferable license to access and use its content for machine learning, testing, and model optimization. Revenue related to the initial license is generally recognized over time as the services are provided. To the extent contracts include ongoing content updates or support services, such components are accounted for as separate performance obligations and recognized over time as the services are provided. Fees for optional data processing or technical support services are recognized as the services are performed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Revenue from licensing uFilm platform</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue from providing 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. These services are combined into a single performance obligation and revenue is recognized ratably over the contract term as customers simultaneously receive and consume the benefits.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company also provides installation services at contract inception, which are distinct from the SaaS services. Revenue from installation services is recognized at a point in time when the installation is completed and control is transferred to the customer.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition to subscription fees, the Company is entitled to fixed guaranteed payments that are contractually agreed upon and not contingent on customer usage or revenue. These amounts are recognized over time as part of the performance obligation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company provides licensed data for AI training purposes, which is a separate performance obligation. Revenue from data usage is recognized over time as the services are provided.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Contract Assets and Liabilities</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contract assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026 and August 31, 2025, the Company had contract liabilities of <span id="xdx_90D_eus-gaap--ContractWithCustomerLiability_iI_c20260531_zYCGh8TmAB5l">$541,276</span> and <span id="xdx_90D_eus-gaap--ContractWithCustomerLiability_iI_c20250831_zTtMmLlqhF0f">$0</span>, respectively. Other than accounts receivable and contract liabilities, the Company had <span id="xdx_904_eus-gaap--ContractWithCustomerAssetNet_iI_do_c20250831_zM02Fsmkl27b">no</span> material contract assets, or deferred contract costs recorded on its consolidated balance sheets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Disaggregation of revenue</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company disaggregates its revenue from contracts by revenue streams, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents sales by revenue streams for the three and nine months ended May 31, 2026 and 2025, respectively:</p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--DisaggregationOfRevenueTableTextBlock_zm6qQk8DHTFb" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES - Revenue Streams (Details)"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_49C_20260301__20260531_zM2EIdXEs05b"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_496_20250301__20250531_z7tpWMdsa7Cd"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Theater admissions</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zR5EMG5oXBA9" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">44,692</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zwuiPZ6JuV2" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">30,743</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Food and beverage sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zS1ipPGBI8W4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">18,327</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zxRhxZfzchFc" style="font: 10pt Times New Roman, Times, Serif; text-align: right">16,389</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Theater advertisement</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zCYiU46ZT7r2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0678">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zm7PVISlnk57" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">11,957</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueNotFromContractWithCustomer_zlpJMotry5p1" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Theater revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">63,019</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">59,089</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for broadcast and download</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_zX9kIJdIj5X8" style="font: 10pt Times New Roman, Times, Serif; text-align: right">168,696</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_z7M2XjYWT9P3" style="font: 10pt Times New Roman, Times, Serif; text-align: right">451,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for NFT platform</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_zrDrE8lMTmh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">150,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_z5o2sb9XcwDd" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0686">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Embedded marketing service</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zAVIokn94D3h" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0687">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zkByUq7NbzZh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">128,800</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">License of short-form drama for AI training pilot</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zrCSCaKQt4g7" style="font: 10pt Times New Roman, Times, Serif; text-align: right">77,951</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zUNC45YgG3wd" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0690">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Licensing for uFilm platform</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zJTrCxLy2u88" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,042,173</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zyAUztV7WNX5" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0692">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--ServicesRevenue_zad3jrqkW5Eh" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Service revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,438,820</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">579,800</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--CopyrightsSalesRevenue_zUZsxG4JRbP7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Copyrights sales</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0697">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,206,300</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--Revenues_zKVaqjXuN7ue" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,501,839</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,845,189</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20250901__20260531_zhgB8EfH23K"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20240901__20250531_zhwPvWpedN47"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Theater admissions</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zL4BvjLpj23b" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">123,069</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_z8G8FUoQ1loe" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">136,347</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Food and beverage sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_982_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zI1ZCPUSsGQg" style="font: 10pt Times New Roman, Times, Serif; text-align: right">49,037</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zbMrzoSh3TBc" style="font: 10pt Times New Roman, Times, Serif; text-align: right">63,026</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Theater advertisement</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zGF66S23c2U" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,718</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_z1k9w3IJG7L" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">22,581</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueNotFromContractWithCustomer_zkYsYhhaeau3" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Theater revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">176,824</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">221,954</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for broadcast and download</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_zSJEk854euo4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,304,376</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_z9YeGKBbm51j" style="font: 10pt Times New Roman, Times, Serif; text-align: right">451,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for NFT platform</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_zopd9qx8FtGg" style="font: 10pt Times New Roman, Times, Serif; text-align: right">450,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_z60AN7cNchFi" style="font: 10pt Times New Roman, Times, Serif; text-align: right">285,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Embedded marketing service</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zNvdc0lrcDoh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,588,220</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zMzPt0woL6Of" style="font: 10pt Times New Roman, Times, Serif; text-align: right">507,828</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Consulting services</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--ConsultingServicesMember_zDPcVGf9WCL4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">371,507</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--ConsultingServicesMember_z9qu1yIdKOc5" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0718">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">License of short-form drama for AI training pilot</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_z5G2tG51oRmf" style="font: 10pt Times New Roman, Times, Serif; text-align: right">955,270</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zLmafmIhHH7g" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0720">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Licensing for uFilm platform</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zA0UgeBhG2Ua" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,322,300</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_z3nhsAm3yXPg" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0722">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--ServicesRevenue_zWtLOG1rMv9j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Service revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">6,991,673</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,243,828</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--CopyrightsSalesRevenue2_zV9HYzdA38b4" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Copyrights sales</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0727">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">2,064,300</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--Revenues_zOLl8NPdAQS6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">7,168,497</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">3,530,082</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A3_zgrxV95jV9G2" style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 541276 0 0 <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--DisaggregationOfRevenueTableTextBlock_zm6qQk8DHTFb" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES - Revenue Streams (Details)"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_49C_20260301__20260531_zM2EIdXEs05b"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_496_20250301__20250531_z7tpWMdsa7Cd"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Theater admissions</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zR5EMG5oXBA9" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">44,692</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zwuiPZ6JuV2" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">30,743</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Food and beverage sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zS1ipPGBI8W4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">18,327</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zxRhxZfzchFc" style="font: 10pt Times New Roman, Times, Serif; text-align: right">16,389</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Theater advertisement</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueNotFromContractWithCustomer_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zCYiU46ZT7r2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0678">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueNotFromContractWithCustomer_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zm7PVISlnk57" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">11,957</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueNotFromContractWithCustomer_zlpJMotry5p1" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Theater revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">63,019</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">59,089</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for broadcast and download</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_zX9kIJdIj5X8" style="font: 10pt Times New Roman, Times, Serif; text-align: right">168,696</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_z7M2XjYWT9P3" style="font: 10pt Times New Roman, Times, Serif; text-align: right">451,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for NFT platform</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_zrDrE8lMTmh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">150,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_z5o2sb9XcwDd" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0686">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Embedded marketing service</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zAVIokn94D3h" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0687">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zkByUq7NbzZh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">128,800</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">License of short-form drama for AI training pilot</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zrCSCaKQt4g7" style="font: 10pt Times New Roman, Times, Serif; text-align: right">77,951</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zUNC45YgG3wd" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0690">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Licensing for uFilm platform</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20260301__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zJTrCxLy2u88" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,042,173</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250301__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zyAUztV7WNX5" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0692">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--ServicesRevenue_zad3jrqkW5Eh" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Service revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,438,820</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">579,800</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--CopyrightsSalesRevenue_zUZsxG4JRbP7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Copyrights sales</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0697">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,206,300</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--Revenues_zKVaqjXuN7ue" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,501,839</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,845,189</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20250901__20260531_zhgB8EfH23K"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20240901__20250531_zhwPvWpedN47"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Theater admissions</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_zL4BvjLpj23b" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">123,069</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--TheatreAdmissionsMember_z8G8FUoQ1loe" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">136,347</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Food and beverage sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_982_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zI1ZCPUSsGQg" style="font: 10pt Times New Roman, Times, Serif; text-align: right">49,037</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--FoodAndBeverageSalesMember_zbMrzoSh3TBc" style="font: 10pt Times New Roman, Times, Serif; text-align: right">63,026</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Theater advertisement</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueNotFromContractWithCustomer_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_zGF66S23c2U" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,718</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueNotFromContractWithCustomer_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--AdvertisementMember_z1k9w3IJG7L" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">22,581</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueNotFromContractWithCustomer_zkYsYhhaeau3" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Theater revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">176,824</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">221,954</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for broadcast and download</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_zSJEk854euo4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,304,376</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--BroadcastingMember_z9YeGKBbm51j" style="font: 10pt Times New Roman, Times, Serif; text-align: right">451,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Licensing for NFT platform</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_zopd9qx8FtGg" style="font: 10pt Times New Roman, Times, Serif; text-align: right">450,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--NFTLicensesMember_z60AN7cNchFi" style="font: 10pt Times New Roman, Times, Serif; text-align: right">285,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Embedded marketing service</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zNvdc0lrcDoh" style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,588,220</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--EmbeddedMarketingServiceMember_zMzPt0woL6Of" style="font: 10pt Times New Roman, Times, Serif; text-align: right">507,828</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Consulting services</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--ConsultingServicesMember_zDPcVGf9WCL4" style="font: 10pt Times New Roman, Times, Serif; text-align: right">371,507</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--ConsultingServicesMember_z9qu1yIdKOc5" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0718">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">License of short-form drama for AI training pilot</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_z5G2tG51oRmf" style="font: 10pt Times New Roman, Times, Serif; text-align: right">955,270</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseShortFormDramaAITrainingPilotMember_zLmafmIhHH7g" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0720">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Licensing for uFilm platform</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20250901__20260531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_zA0UgeBhG2Ua" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,322,300</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20240901__20250531__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicensingForUFilmPlatformMember_z3nhsAm3yXPg" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0722">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--ServicesRevenue_zWtLOG1rMv9j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Service revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">6,991,673</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,243,828</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--CopyrightsSalesRevenue2_zV9HYzdA38b4" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Copyrights sales</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0727">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">2,064,300</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--Revenues_zOLl8NPdAQS6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">7,168,497</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">3,530,082</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 44692 30743 18327 16389 11957 63019 59089 168696 451000 150000 128800 77951 1042173 1438820 579800 1206300 1501839 1845189 123069 136347 49037 63026 4718 22581 176824 221954 2304376 451000 450000 285000 1588220 507828 371507 955270 1322300 6991673 1243828 2064300 7168497 3530082 <p id="xdx_84F_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zyPFJDNeCnYa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Fair Value of Financial Instruments</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2 – Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3 – Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying values of cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short-term nature.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Warrant liability and derivative liability were measured at fair value on a recurring basis as of May 31, 2026 and August 31, 2025, respectively.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock_ztqFjZHsRY3a" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Warrant and Derivative Liability (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="3" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b><span style="text-decoration: underline">Level 3</span></b></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="3" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">   <b><span style="text-decoration: underline">Level 3</span></b></span></td></tr> <tr id="xdx_404_ecustom--WarrantLiability_iI_zyEgoOHNWbj9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Warrants Liability</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">4,432,209</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">1,338,389</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DerivativeLiabilities_iI_zx42bR2x3vtc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Derivative liability</td><td style="font: 10pt Times New Roman, Times, Serif; color: #212529; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #212529; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #212529; text-align: right">538,415</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; color: #212529; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--WarrantAndDeririvativeLiability_z2TjCVEyTFTf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman PS Std,serif; padding-bottom: 1pt">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,970,624</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,338,389</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock_ztqFjZHsRY3a" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Warrant and Derivative Liability (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="3" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b><span style="text-decoration: underline">Level 3</span></b></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="3" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">   <b><span style="text-decoration: underline">Level 3</span></b></span></td></tr> <tr id="xdx_404_ecustom--WarrantLiability_iI_zyEgoOHNWbj9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Warrants Liability</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">4,432,209</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">1,338,389</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DerivativeLiabilities_iI_zx42bR2x3vtc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Derivative liability</td><td style="font: 10pt Times New Roman, Times, Serif; color: #212529; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #212529; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #212529; text-align: right">538,415</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; color: #212529; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--WarrantAndDeririvativeLiability_z2TjCVEyTFTf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman PS Std,serif; padding-bottom: 1pt">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,970,624</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,338,389</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> <p id="xdx_844_ecustom--AccountingForDerivativeInstrumentsPolicyTextBlock_zt0rHCSHJDg2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Accounting for Derivative Instruments</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for convertible promissory notes in accordance with ASC 470, Debt, and evaluates embedded features in accordance with ASC 815, Derivatives and Hedging.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Embedded features are assessed to determine whether they are clearly and closely related to the host contract and whether they are indexed to the Company’s own stock in accordance with ASC 815-40. Features that do not meet the scope exception for equity classification are bifurcated and accounted for separately as derivative liabilities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Derivative liabilities are initially recognized at fair value on the issuance date and are subsequently remeasured at fair value at each reporting date, with changes in fair value recognized in the consolidated statements of operations. The Company classifies derivative liabilities as Level 3 within the fair value hierarchy under ASC 820 because their valuation involves significant unobservable inputs.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At issuance, the Company allocates the proceeds received between the host debt and the embedded derivative liability in accordance with ASC 815-15-30-2. The initial carrying amount of the host debt is determined as the difference between the proceeds received and the fair value of the embedded derivative. If the fair value of the embedded derivative exceeds the proceeds received, the excess is recognized as a loss on issuance in the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Debt issuance costs and original issue discounts are accounted for in accordance with ASC 835-30. To the extent a host debt component is recognized, such amounts are recorded as a reduction of the carrying amount of the debt and amortized to interest expense over the term of the instrument using the effective interest method. If no amount is allocated to the host debt, debt issuance costs are recognized in earnings as incurred. Interest expense on convertible promissory notes includes both contractual coupon interest and the amortization of any debt discount recognized at issuance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--EarningsPerSharePolicyTextBlock_zo97vdAJWsci" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Basic and Diluted Earnings Per Share</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. No warrants were included in the diluted income per share as they would be anti-dilutive. During the nine months ended May 31, 2025, preferred stocks were included in the diluted earnings per share as they would be dilutive.</p> <table cellpadding="0" cellspacing="0" id="xdx_890_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zCXAzzQcvvR4" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details)"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_499_20260301__20260531_z7enG4nYtwBd"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49A_20250301__20250531_zYBIVaWXigVi"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 9.5pt Times New Roman, Times, Serif; text-align: center">Three Months Ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>May 31, 2026</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zoWGJAxNfjif" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Net Loss</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zaXpJYmXNXEi" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_zFK7PtDubkxl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Basic EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.79</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.04</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zNnHBclQgQaa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Net Loss</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr id="xdx_400_ecustom--AdjustedNetIncome_z7jwaDBhXagj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Adjusted net loss</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zwKOQec2q3c2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AmountOfDilutiveSecuritiesESOPConvertiblePreferredStock_z9cUSswKmWL6" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Add: Preferred shares A</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0764">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0765">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_z6sEkkq8vVL3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Diluted*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_zNGtnlutmCmb" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.79</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.04</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_49D_20250901__20260531_zrNOTTjnyAwi"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_499_20240901__20250531_zT0bAQIe81v4"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 9.5pt Times New Roman, Times, Serif; text-align: center">Nine months Ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>May 31, 2026</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zN9u2312lpDd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Net (Loss) Income</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_z5n9GFRCEFvc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,851,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_zi7ybtWaYq3k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Basic EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.40</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">0.02</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zyjrEnblHN89" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Net (Loss) Income</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--AdjustedNetIncome_zwDobQ9GMYJj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Adjusted net (loss) income</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zvhwKlFs1yTd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,851,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AmountOfDilutiveSecuritiesESOPConvertiblePreferredStock_zf7bnawQ3VWh" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Add: Preferred shares A</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0791">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">100,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_zcpF794BkcL7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Diluted*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,951,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_zdlKpwb9gDl9" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.40</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">0.02</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> <p id="xdx_8AA_ziwTElIOqOJa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">*Retroactively restated for the effect of reverse stock split (see Note 10).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_890_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zCXAzzQcvvR4" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details)"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_499_20260301__20260531_z7enG4nYtwBd"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49A_20250301__20250531_zYBIVaWXigVi"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 9.5pt Times New Roman, Times, Serif; text-align: center">Three Months Ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>May 31, 2026</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zoWGJAxNfjif" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Net Loss</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zaXpJYmXNXEi" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_zFK7PtDubkxl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Basic EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.79</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.04</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zNnHBclQgQaa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Net Loss</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr id="xdx_400_ecustom--AdjustedNetIncome_z7jwaDBhXagj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Adjusted net loss</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zwKOQec2q3c2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AmountOfDilutiveSecuritiesESOPConvertiblePreferredStock_z9cUSswKmWL6" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Add: Preferred shares A</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0764">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0765">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_z6sEkkq8vVL3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Diluted*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">5,459,342</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,161,487</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_zNGtnlutmCmb" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.79</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.04</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_49D_20250901__20260531_zrNOTTjnyAwi"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_499_20240901__20250531_zT0bAQIe81v4"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 9.5pt Times New Roman, Times, Serif; text-align: center">Nine months Ended</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>May 31, 2026</b></span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zN9u2312lpDd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Net (Loss) Income</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_z5n9GFRCEFvc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,851,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_zi7ybtWaYq3k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Basic EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.40</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">0.02</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_iT_zyjrEnblHN89" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Net (Loss) Income</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--AdjustedNetIncome_zwDobQ9GMYJj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Adjusted net (loss) income</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zvhwKlFs1yTd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Basic *</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,851,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AmountOfDilutiveSecuritiesESOPConvertiblePreferredStock_zf7bnawQ3VWh" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Add: Preferred shares A</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0791">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">100,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_zcpF794BkcL7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Weighted Average Number of Shares Outstanding: Diluted*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">4,343,698</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,951,272</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_zdlKpwb9gDl9" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted EPS*</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.40</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">0.02</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> -4328997 -125244 5459342 3161487 -0.79 -0.04 -4328997 -125244 -4328997 -125244 5459342 3161487 5459342 3161487 -0.79 -0.04 -1728819 39651 4343698 1851272 -0.40 0.02 -1728819 39651 -1728819 39651 4343698 1851272 100000 4343698 1951272 -0.40 0.02 <p id="xdx_847_eus-gaap--Reclassifications_zhgxWScAioPk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Reclassification</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain prior period amounts of revenue in consolidated statements of operations and purchase of intangible assets in consolidated statements of cash flows have been reclassified to conform to the current period presentation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--CreditLossFinancialInstrumentPolicyTextBlock_zqfZ8rueKlYa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Warrants</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for warrants in accordance with ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging. Warrants are evaluated at issuance to determine whether they meet the criteria for equity classification under ASC 815-40, Contracts in Entity’s Own Equity. Warrants that do not meet the equity classification criteria are classified as warrant liabilities. Equity-classified warrants are recorded in additional paid-in capital and are not subsequently remeasured.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Warrant liabilities are initially recognized at fair value on the issuance date and are subsequently remeasured at fair value at each reporting date until exercised, expired, or otherwise settled. Changes in fair value are recognized in earnings within the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of warrant liabilities is determined in accordance with ASC 820, Fair Value Measurement, using valuation techniques such as option-pricing models that incorporate assumptions including expected volatility, risk-free interest rate, expected term, and the Company’s stock price.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--IncomeTaxPolicyTextBlock_zvflvUbElyyj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Income Taxes</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred income taxes assets and liabilities are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84E_eus-gaap--CompensationRelatedCostsGeneralTextBlock_zr4cZAXLaHh7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Share-Based Compensation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee share-based awards. For employee share-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84C_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zxdqnbb3RzZc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Segment reporting</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Company follows ASU No. 2023-07, “Segment Reporting (Topic 280)”, which improves the disclosures about a public entity’s reportable segments and address requests from investors for more detailed information about a reportable segment’s expenses. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b></b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.) </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)   </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_849_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zkI7tFk3mgrc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Recent Accounting Pronouncements</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This pronouncement introduces new disclosure requirements aimed at enhancing transparency in financial reporting by requiring disaggregation of specific income statement expense captions. Under the new guidance, entities are required to disclose a breakdown of certain expense categories, such as: employee compensation; depreciation; amortization, and other material components. The disaggregated information can be presented either on the face of the income statement or in the notes to the financial statements, often using a tabular format. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. In January 2025, the FASB issued ASU 2025-01, which revises the effective date of ASU 2024-03 (on disclosures about disaggregation of income statement expenses) “to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.” Entities within the ASU’s scope are permitted to early adopt the ASU. The Company is currently evaluating the impact of this standard on its financial statement disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. ASU 2025-03 clarifies the guidance to determine the accounting acquirer in a business combination that is effected primarily by exchanging equity interests, when the legal acquiree is a variable interest entity (“VIE”) that meets the definition of a business. ASU 2025-03 requires entities to consider the same factors in ASC 805, Business Combinations, required for determining which entity is the accounting acquirer in other acquisition transactions. ASU 2025-03 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-03 is required to be applied on a prospective basis to any acquisition transaction that occurs after the initial application date. The Company does not expect a material effect on its consolidated financial statements upon adoption.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2025, the FASB issued ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). ASU 2025-04 revises the definition of the term performance condition for share-based consideration payable to a customer to incorporate conditions that are based on the volume or monetary amount of a customer’s purchases or potential purchases. ASU 2025-04 also eliminates the policy election to account for forfeitures as they occur for awards with service conditions. ASU 2025-04 also clarifies that ASC 606 variable consideration guidance does not apply to share-based payments to customers; instead, vesting probability should be assessed solely under ASC 718, Compensation—Stock Compensation. ASU 2025-04 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-04 may be applied on either a modified retrospective basis or on a retrospective basis. The Company is currently assessing the impact this standard will have on the Company’s Consolidated Financial Statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 amends ASC 326, Financial Instruments—Credit Losses, and introduces a practical expedient available for all entities and an accounting policy election available for all entities, other than public business entities, that elect the practical expedient. These changes apply to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue Recognition. Under the practical expedient, entities may assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the asset when developing reasonable and supportable forecasts. This simplifies the estimation process for short-term financial assets. ASU 2025-05 is effective for the Company’s annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-05 should be applied on a prospective basis. The Company does not expect a material effect on its consolidated financial statements upon adoption.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-06, Intangibles - Goodwill and Other (Topic 350) — Internal-Use Software (Subtopic 350-40): Targeted Improvements. This update provides clarifications and targeted improvements to the accounting for internal-use software, including enhanced guidance on the identification of software development activities, capitalization of implementation costs, and accounting for subsequent upgrades and maintenance. ASU 2025-06 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The Company does not expect a material effect on its consolidated financial statements upon adoption.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Except for the above-mentioned pronouncements, there are no new recently issued accounting standards that will have a material impact on the balance sheets, statements of operations and comprehensive income and cash flows. </p> <p id="xdx_803_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zaaO9UhzGui8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 3 – GOING CONCERN </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026, the Company had limited cash, loss from operation of approximately $1.3 million, an accumulated deficit of approximately <span id="xdx_90E_ecustom--RetainedEarningsAccumulatedDeficitEstimated_iNI_pn5n6_di_c20260531_zUuYt8ooWcHg">$12.1</span> million and a working capital deficit of approximately <span id="xdx_90C_eus-gaap--Capital_iI_pn5n6_c20260531_zSUZeUKLTD2">$6.9</span> million. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing and achieving operating profits. These factors, among others, raise substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The future operations of the Company depend on its ability to realize forecasted revenues, achieve profitable operations, and depend on whether or not the Company could obtain continued financial support from its stockholders or external financing. Management’s plans include (i) continued utilization of the $30 million equity purchase agreement entered into with Monroe Street Capital Partners, LP on February 21, 2026, (ii) expected cash flows from expanded licensing of short-form drama content for AI training and uFilm SaaS platform, (iii) additional private placements and convertible note financings, (iv) ongoing financial support from the President, (v) pursuit of a direct listing on NYSE American supported by the Craft Capital advisory engagement entered into on April 18, 2026, and (vi) strategic advisory services from the newly appointed Vice Chairman effective June 12, 2026. These actions are expected to provide sufficient liquidity to fund operations for at least the next twelve months. However, there can be no assurance that these plans will be successful, if required, would be available on favorable terms or at all. If we are not able to secure additional funding, the implementation of our business plan will be impaired.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provide the opportunity for the Company to continue as a going concern.<span style="color: #212529">  </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> -12100000 6900000 <p id="xdx_801_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_z5mTWUEC3ifi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 4 – PROPERTY AND EQUIPMENT</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company capitalized the renovation cost as leasehold improvement and the cost of furniture and appliances as fixed asset. Leasehold improvement relates to renovation and upgrade of the leased office.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense was <span id="xdx_90A_eus-gaap--Depreciation_pp0p0_c20250901__20260531_z1erjFaio5v">$1,427</span> and <span id="xdx_902_eus-gaap--Depreciation_pp0p0_c20240901__20250531_z7M0RbMvnNRk">$1,428</span> for each of the nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026 and August 31, 2025, the balance of property and equipment was as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_88F_eus-gaap--PropertyPlantAndEquipmentAndIntangibleAssetsTextBlock_zHBpjaAAr3mh" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 4 - PROPERTY AND EQUIPMENT - Leasehold Improvement (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Leasehold improvement</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_904_eus-gaap--LeaseholdImprovementsGross_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zdtp59bd25v2">146,304</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_90F_eus-gaap--LeaseholdImprovementsGross_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zPRG4sBZM7i6">146,304</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Appliances and furniture</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90F_eus-gaap--FurnitureAndFixturesGross_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zuQlk4OyAQt2">25,974</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--FurnitureAndFixturesGross_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_z2QdVoPFjJrg">25,974</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Total cost</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentOwnedGross_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zK32u6h2qGtd">172,278</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentOwnedGross_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_z75uVAljem4j">172,278</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Accumulated depreciation</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_90C_eus-gaap--PropertySubjectToOrAvailableForOperatingLeaseAccumulatedDepreciation_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zUcUT2HxUHNg">171,233</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_90E_eus-gaap--PropertySubjectToOrAvailableForOperatingLeaseAccumulatedDepreciation_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zVISpAN16Lqg">169,806</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Property and equipment, net</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_z9bTd31t1eig">1,045</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentNet_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_znoBbGe9Fe7g">2,472</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 1427 1428 <table cellpadding="0" cellspacing="0" id="xdx_88F_eus-gaap--PropertyPlantAndEquipmentAndIntangibleAssetsTextBlock_zHBpjaAAr3mh" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 4 - PROPERTY AND EQUIPMENT - Leasehold Improvement (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Leasehold improvement</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_904_eus-gaap--LeaseholdImprovementsGross_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zdtp59bd25v2">146,304</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_90F_eus-gaap--LeaseholdImprovementsGross_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zPRG4sBZM7i6">146,304</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Appliances and furniture</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90F_eus-gaap--FurnitureAndFixturesGross_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zuQlk4OyAQt2">25,974</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--FurnitureAndFixturesGross_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_z2QdVoPFjJrg">25,974</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Total cost</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentOwnedGross_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zK32u6h2qGtd">172,278</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentOwnedGross_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_z75uVAljem4j">172,278</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Accumulated depreciation</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_90C_eus-gaap--PropertySubjectToOrAvailableForOperatingLeaseAccumulatedDepreciation_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zUcUT2HxUHNg">171,233</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_90E_eus-gaap--PropertySubjectToOrAvailableForOperatingLeaseAccumulatedDepreciation_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_zVISpAN16Lqg">169,806</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Property and equipment, net</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20260531__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_z9bTd31t1eig">1,045</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentNet_pp0p0_c20250831__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RenovationCostsMember_znoBbGe9Fe7g">2,472</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> 146304 146304 25974 25974 172278 172278 171233 169806 1045 2472 <p id="xdx_809_eus-gaap--IntangibleAssetsDisclosureTextBlock_zCvK2kqy7w2j" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> NOTE 5 – INTANGIBLE ASSETS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026 and August 31, 2025, the balance of intangible assets was as follows: </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_z8N99L8S1cS5" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 5 - INTANGIBLE ASSETS (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_495_20260531_z77vgQy4WuU7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49D_20250831_zSSy4Bq9yKMe" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Movie copyrights and broadcast right</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--MovieCopyrightAndBroadcastRightMember_zvlP9g32d5N">5,893,783</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--MovieCopyrightAndBroadcastRightMember_zt44WAiFaoJ3">5,893,783</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Television series</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--TelevisionSeriesMember_zJDhvfmOTfsf">1,193,074</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--TelevisionSeriesMember_zvvDkSwGbRc3">1,193,074</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Short form drama series</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ShortFromDramaSeriesMember_zAGxnqsdDRZ1">11,976,743</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ShortFromDramaSeriesMember_zPISa6NAgpXj">5,413,923</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Intellectual property of ufilm</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--IntellectualPropertyOfUfilmMember_zkkvhpUt5zJh">1,500,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 9.5pt Times New Roman, Times, Serif"> </td> <td style="font: 9.5pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--IntellectualPropertyOfUfilmMember_zwEX0bPqzrY3"><span style="-sec-ix-hidden: xdx2ixbrl0842">—</span></span>  </td><td style="font: 9.5pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">NFT MMM platform</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTPlatformMember_zPc8Y8zMf6Td">280,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTPlatformMember_zaN0V1LAomQb">280,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--TotalCost_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Total cost</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">20,843,600</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">12,780,780</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(11,475,767</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,008,356</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_maCznGO_zq5eSxfVHbHg" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Intangible assets, net</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">9,367,833</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">4,772,424</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 $849,568, respectively. Estimated future amortization expense is as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_887_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zYxHCkzRqkI1" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; width: 50%; border-collapse: collapse; margin-right: auto" summary="xdx: Disclosure - NOTE 5 - INTANGIBLE ASSETS - Estimated Amortization Expense (Details)"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: black 1pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Twelve months ending May 31,</b></span></td> <td> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amortization expense</b></span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 53%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2027</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td style="width: 43%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextRollingTwelveMonths_iI_c20260531_zuGUuNMxgsc2">6,040,409</span></span></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2028</span></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearTwo_iI_c20260531_ze18H6Bgb4B5">2,464,904</span></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2029</span></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearThree_iI_c20260531_znciozxJfZvj">300,000</span></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2030</span></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearFour_iI_c20260531_zEdq2EPbhWQk">300,000</span></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2031</span></td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearFive_iI_c20260531_zqIux9QgCXaa">262,520</span></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingAfterYearFive_iI_c20260531_zaI5H4AAaBVe">9,367,833</span></span></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_907_eus-gaap--SalesTypeLeaseLeaseReceivable_iI_c20220820__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTMMMMMonthlyMember_zUqXfs8rcEJf">$60,000</span>. 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 <span id="xdx_90C_eus-gaap--SalesTypeLeaseLeaseReceivable_iI_c20231101__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTMMMMMonthlyRenewalMember_zn0RUWu1vDA">$57,000</span>; 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 <span id="xdx_90B_eus-gaap--ProceedsFromLicenseFeesReceived_c20250901__20260531__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTMMMPlatformMember_z7TPzRq0jXpc">$450,000</span> and <span id="xdx_909_eus-gaap--ProceedsFromLicenseFeesReceived_c20240901__20250531__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTMMMPlatformMember_zxyqLxAdRYgf">$285,000</span> respectively (See Note 9).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_900_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20240930__20240930__us-gaap--TypeOfArrangementAxis__custom--CapitaliveHoldingsLimitedTwoMoviesMember_zutLhB6k162l">$55,000</span>. The granted broadcast rights are globally exclusive, except for Mainland China.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 5 – INTANGIBLE ASSETS (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_90F_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20240930__20240930__us-gaap--TypeOfArrangementAxis__custom--AllInOneMediaOneMovieMember_zoUmFGuxtKJ5">$360,000</span>. 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 <span id="xdx_90F_eus-gaap--ProceedsFromSaleOfOtherAssets1_pp0p0_c20240501__20240531__us-gaap--TypeOfArrangementAxis__custom--AnyonePictures1MovieMember_zxGejP54yNc">$228,000</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_90E_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20240930__20240930__us-gaap--TypeOfArrangementAxis__custom--AllInOneMediaSecondOneMovieMember_z3Ie92qIhvm3">$220,000</span>. The granted online and offline broadcast rights are globally exclusive. As of February 28, 2025, <span id="xdx_90A_eus-gaap--PaymentsToAcquireIntangibleAssets_pp0p0_c20250228__20250228__us-gaap--TypeOfArrangementAxis__custom--AllInOneMediaSecondOneMovieMember_zb1DCLL1Ukr7">$160,000</span> 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 <span id="xdx_90A_eus-gaap--ProceedsFromSaleOfIntangibleAssets_pp0p0_c20250212__20250212__us-gaap--TypeOfArrangementAxis__custom--AllInOneMediaSecondOneMovieMember_zCEHVGLK4LXf">$40,000</span>. The granted broadcast rights are Mainland China exclusive (See Note 9).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_90B_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250127__20250127__us-gaap--TypeOfArrangementAxis__custom--CapitaliveHoldingsLimited59MoviesMember_zIf4pnpxTHBh">$275,000</span>. The copyrights are globally exclusive, with the exception of Mainland China.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_90D_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250212__20250212__us-gaap--TypeOfArrangementAxis__custom--AnyonePicturesLimited2MoviesMember_zsbHh2q99EM">$110,000</span>. The granted broadcast rights are Mainland China exclusive (See Note 9).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"><span style="color: Black">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 <span id="xdx_90B_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250301__20250531__us-gaap--TypeOfArrangementAxis__custom--AllInOneMediaThirdOneMovieMember_zQRdVktWFJ96">$600,000</span> and <span id="xdx_905_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250301__20250531__us-gaap--TypeOfArrangementAxis__custom--AllInOneMediaThird1151DramaMember_zSRz9qa22TG3">$3,455,000</span>, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"><span style="color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="color: Black">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 <span id="xdx_901_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250301__20250531__us-gaap--TypeOfArrangementAxis__custom--Guangdong20TVDramaMember_zoRqva3Fk5Kd">$57,016</span> and <span id="xdx_90A_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250301__20250531__us-gaap--TypeOfArrangementAxis__custom--Guangdong360TVDramaMember_z5IVr3ZEZSye">$913,671</span>, 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 <span id="xdx_90C_eus-gaap--ProceedsFromSaleOfIntangibleAssets_pp0p0_c20250301__20250531__us-gaap--TypeOfArrangementAxis__custom--Guangdong20TVDramaMember_zKdQHKLy4Ho2">$209,200</span>. The granted broadcast rights are Mainland China exclusive.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"><span style="color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="color: Black">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 <span id="xdx_90B_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250301__20250531__us-gaap--TypeOfArrangementAxis__custom--CapitaliveHoldings5MoviesMember_zwgZ0iKsisV7">$201,100</span> and 3 movies for <span id="xdx_904_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250301__20250531__us-gaap--TypeOfArrangementAxis__custom--CapitaliveHoldings3MoviesMember_zvWyahYSy15i">$440,000</span>. The granted offline broadcast rights are globally exclusive, with the exception of Mainland China.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="color: Black">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 <span id="xdx_90B_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250301__20250531__us-gaap--TypeOfArrangementAxis__custom--AnyonePicturesLimited1MovieMember_zpGiNOvGdrEe">$356,000</span>. The granted broadcast rights are Mainland China exclusive. (See Note 9)</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended May 31, 2025, the total sale amount of intangible assets was <span id="xdx_90A_ecustom--CopyrightsSalesRevenue3_c20240901__20250531_zEtFATqA5W94">$2,064,300</span> and the total intangible assets received was <span id="xdx_903_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20240901__20250531_zitXAS77Luyc">$6,615,810</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_90E_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250901__20251130__us-gaap--TypeOfArrangementAxis__custom--AllInOneMedia1500TVSeriesMember_znATZN0FJSz5">$1,350,000</span> and <span id="xdx_90B_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250901__20251130__us-gaap--TypeOfArrangementAxis__custom--AllInOneMedia500SeriesTVDramaMember_zMtDecuktp73">$300,000</span>, respectively. These copyrights allow the Company to broadcast globally, except for Mainland China.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_90D_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20260301__20260531__us-gaap--TypeOfArrangementAxis__custom--AllInOneMedia1000TVSeriesMember_zsjmD3vUNZxi">$410,256</span>, <span id="xdx_902_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20260301__20260531__us-gaap--TypeOfArrangementAxis__custom--AllInOneMedia2000TVSeriesMember_zzAuFbsgMnC8">$800,000</span> and <span id="xdx_907_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20260301__20260531__us-gaap--TypeOfArrangementAxis__custom--AllInOneMedia3000TVSeriesMember_zC9dTmYtthGl">$1,200,000</span>, respectively. During the three months ended <span style="color: #212529">May 31</span>, 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 <span style="color: #212529">May 31</span>, 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 <span id="xdx_90C_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20260301__20260531__us-gaap--TypeOfArrangementAxis__custom--AllInOneMedia2000TVSeriesSecondMember_zjoTjy4XbLB8">$800,000</span>, <span id="xdx_909_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20260301__20260531__us-gaap--TypeOfArrangementAxis__custom--AllInOneMedia2000TVSeriesThirdMember_zOrs34pvrpLh">$700,000</span> and <span id="xdx_900_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20260301__20260531__us-gaap--TypeOfArrangementAxis__custom--AllInOneMedia1000TVSeriesSecondMember_zI1aM9WQbm64">$400,000</span>, respectively. These copyrights allow the Company to broadcast globally, except for Mainland China.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 1, 2025, the Company entered into an agreement with <span style="color: #212529">Guangdong Honor Film Co., Ltd. </span>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 <span style="color: #212529">Guangdong Honor Film Co., Ltd.</span> of 1,323 series and 166 series of TV drama for a price of <span id="xdx_905_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20260301__20260531__us-gaap--TypeOfArrangementAxis__custom--Guangdong1323ShortFormDramaSeriesMember_zIZ1hPW7dXAk">$544,872</span> and <span id="xdx_90D_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20260301__20260531__us-gaap--TypeOfArrangementAxis__custom--Guangdong166DramaSeriesMember_zCNIYNT491Th">$57,692</span>, respectively. These copyrights allow the Company to broadcast globally, except for Mainland China.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span style="color: #212529"><span id="xdx_904_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250712__20250712__us-gaap--TypeOfArrangementAxis__custom--UfilmAIIPMember_zwewfMWBGUvj">$300,000</span></span> As of August 31, 2025, the Company had paid purchase deposits of full purchase price totaling <span style="color: #212529"><span id="xdx_90F_eus-gaap--PaymentsToAcquireIntangibleAssets_pp0p0_c20250831__20250831__us-gaap--TypeOfArrangementAxis__custom--UfilmAIIPMember_zYlWapMRLx5c">$300,000</span></span>. The asset was delivered on January 12, 2026.  <span style="color: #212529">(See Note 7)</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_906_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0n6_c20260301__20260301__us-gaap--TypeOfArrangementAxis__custom--HonradoFilmesAILimitadaMember_zsfcUqmSRI35">$1.2</span> 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 <span id="xdx_906_eus-gaap--PaymentsToAcquireIntangibleAssets_pp0d_c20260531__20260531__us-gaap--TypeOfArrangementAxis__custom--HonradoFilmesAILimitadaMember_zPXRc70IPqR9">$1,200,000</span> of the purchase consideration.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_906_eus-gaap--ProceedsFromSaleOfIntangibleAssets_pp0p0_c20250901__20260531__us-gaap--TypeOfArrangementAxis__custom--CapilativeHoldingsLicenseAgreementMember_zCl29oj8nwr1">$684,136</span> and <span id="xdx_90E_eus-gaap--ProceedsFromSaleOfIntangibleAssets_pp0p0_c20240901__20250531__us-gaap--TypeOfArrangementAxis__custom--CapilativeHoldingsLicenseAgreementMember_zZhKG89R6dD9">$451,000</span> from Capitalive Holdings Limited during the nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_905_eus-gaap--ProceedsFromSaleOfIntangibleAssets_pp0p0_c20250901__20260531__us-gaap--TypeOfArrangementAxis__custom--GuangdongHonorDownloadsMember_zr1N4ZG1xWuf">$1,620,240</span> and <span id="xdx_90A_eus-gaap--ProceedsFromSaleOfIntangibleAssets_pp0p0_c20240901__20250531__us-gaap--TypeOfArrangementAxis__custom--GuangdongHonorDownloadsMember_zQXS9OBSpBR6">$0</span> from Guangdong Dangliang Film Co., Ltd. during the nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_904_ecustom--LicenseFeesReceived_c20250901__20260531__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--AnyonePicturesLtdMember_zdUEP8hSSfSh">$955,269</span> and <span id="xdx_90C_ecustom--LicenseFeesReceived_c20240901__20250531__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--AnyonePicturesLtdMember_zi8c1F3AZzl7">$0</span> from Anyone Pictures Ltd during the nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_902_ecustom--LicenseFeesReceived_c20250901__20260531__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--UflixAiLLCMember_zPaBrj6eQN12">$1,047,300</span> and <span id="xdx_90F_ecustom--LicenseFeesReceived_c20240901__20250531__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--UflixAiLLCMember_zC8b0mz9AlX8">$0</span> from Uflix.ai LLC during the nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 <span id="xdx_909_ecustom--LicenseFeesReceived_c20250901__20260531__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--AIXdanceLLCMember_zEYqnS4VbNu3">$275,000</span> and <span id="xdx_902_ecustom--LicenseFeesReceived_c20240901__20250531__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--AIXdanceLLCMember_zbGbB4b6Rbd2">$0</span> from AIXdance LLC during the nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended May 31, 2026, the total sale amount of intangible assets was <span id="xdx_902_eus-gaap--ProceedsFromSaleOfIntangibleAssets_pp0p0_c20250901__20260531__us-gaap--TypeOfArrangementAxis__custom--TotalMember_z3o534at5CAg">$0</span> and the total intangible assets addition was <span id="xdx_900_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250901__20260531__us-gaap--TypeOfArrangementAxis__custom--TotalMember_zbYOf1Vmr2V">$8,062,820</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">  </p> <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_z8N99L8S1cS5" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 5 - INTANGIBLE ASSETS (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_495_20260531_z77vgQy4WuU7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49D_20250831_zSSy4Bq9yKMe" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Movie copyrights and broadcast right</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--MovieCopyrightAndBroadcastRightMember_zvlP9g32d5N">5,893,783</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--MovieCopyrightAndBroadcastRightMember_zt44WAiFaoJ3">5,893,783</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Television series</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--TelevisionSeriesMember_zJDhvfmOTfsf">1,193,074</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--TelevisionSeriesMember_zvvDkSwGbRc3">1,193,074</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Short form drama series</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ShortFromDramaSeriesMember_zAGxnqsdDRZ1">11,976,743</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ShortFromDramaSeriesMember_zPISa6NAgpXj">5,413,923</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Intellectual property of ufilm</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--IntellectualPropertyOfUfilmMember_zkkvhpUt5zJh">1,500,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 9.5pt Times New Roman, Times, Serif"> </td> <td style="font: 9.5pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 9.5pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--IntellectualPropertyOfUfilmMember_zwEX0bPqzrY3"><span style="-sec-ix-hidden: xdx2ixbrl0842">—</span></span>  </td><td style="font: 9.5pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">NFT MMM platform</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260531__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTPlatformMember_zPc8Y8zMf6Td">280,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250831__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NFTPlatformMember_zaN0V1LAomQb">280,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--TotalCost_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Total cost</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">20,843,600</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: right">12,780,780</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(11,475,767</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,008,356</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_maCznGO_zq5eSxfVHbHg" style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Intangible assets, net</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">9,367,833</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">4,772,424</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> 5893783 5893783 1193074 1193074 11976743 5413923 1500000 280000 280000 20843600 12780780 -11475767 -8008356 9367833 4772424 <table cellpadding="0" cellspacing="0" id="xdx_887_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zYxHCkzRqkI1" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; width: 50%; border-collapse: collapse; margin-right: auto" summary="xdx: Disclosure - NOTE 5 - INTANGIBLE ASSETS - Estimated Amortization Expense (Details)"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: black 1pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Twelve months ending May 31,</b></span></td> <td> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amortization expense</b></span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 53%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2027</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td style="width: 43%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextRollingTwelveMonths_iI_c20260531_zuGUuNMxgsc2">6,040,409</span></span></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2028</span></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearTwo_iI_c20260531_ze18H6Bgb4B5">2,464,904</span></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2029</span></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearThree_iI_c20260531_znciozxJfZvj">300,000</span></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2030</span></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearFour_iI_c20260531_zEdq2EPbhWQk">300,000</span></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2031</span></td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearFive_iI_c20260531_zqIux9QgCXaa">262,520</span></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRollingAfterYearFive_iI_c20260531_zaI5H4AAaBVe">9,367,833</span></span></td> <td> </td></tr> </table> 6040409 2464904 300000 300000 262520 9367833 60000 57000 450000 285000 55000 360000 228000 220000 160000 40000 275000 110000 600000 3455000 57016 913671 209200 201100 440000 356000 2064300 6615810 1350000 300000 410256 800000 1200000 800000 700000 400000 544872 57692 300000 300000 1200000 1200000 684136 451000 1620240 0 955269 0 1047300 0 275000 0 0 8062820 <p id="xdx_80C_eus-gaap--LesseeFinanceLeasesTextBlock_z4bLavtJa9L8" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 6 – LEASES</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 21, 2021, the Company signed a lease agreement to lease “the Mt. Kisco Theatre”, a movie theater, for <span id="xdx_907_eus-gaap--LesseeOperatingLeaseTermOfContract_iI_c20211021__us-gaap--OtherCommitmentsAxis__custom--KiscoTheatreMember_zOjJf04cYTY5">five years</span> 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 <span id="xdx_906_ecustom--OperatingLeasesFutureMinimumPaymentsDueInTwoYears2_iI_c20211021__us-gaap--OtherCommitmentsAxis__custom--KiscoTheatreMember_zKhVu84EfKR">$14,366</span> for the first two years, and <span id="xdx_902_ecustom--OperatingLeasesFutureMinimumPaymentsDueInThreeYears2_iI_c20211021__us-gaap--OtherCommitmentsAxis__custom--KiscoTheatreMember_zOGFa5tPDLh8">$20,648</span> from the third year including real estate related taxes and landlord’s insurance. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 31, 2024, the end of the initial two-year rental period, the landlord agreed to continue to receive <span id="xdx_906_ecustom--OperatingLeasesFutureMinimumPaymentsDueInThreeYears2_iI_c20240131__us-gaap--OtherCommitmentsAxis__custom--KiscoTheatreReducedMember_zYWSOIvXXKY1">$14,366</span> from February 2024 to May 2026. The reduced rental payments are accounted for as a rent concession and recognized in general and administrative expenses</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total lease expense for the nine months ended May 31, 2026 and 2025 was <span id="xdx_90E_ecustom--OperatingLeasesRentExpenseNet2_pp0p0_c20250901__20260531_zgLTPsvtpkQl">$93,298</span> and <span id="xdx_905_ecustom--OperatingLeasesRentExpenseNet2_pp0p0_c20240901__20250531_zUkNGBE9Xjcd">$96,926</span>, respectively. All leases are on a fixed payment basis. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a schedule of maturities of lease liabilities:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_884_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zDNObF1Jfhec" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; width: 50%; border-collapse: collapse; margin-right: auto" summary="xdx: Disclosure - NOTE 6 - LEASES - Future Lease Payments (Details)"> <tr style="vertical-align: bottom"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Twelve months ending May 31,</b></span></td> <td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 71%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2027</span></td> <td style="width: 10%"> </td> <td style="border-bottom: black 1pt solid; width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_98C_ecustom--OperatingLeasesFutureMinimumPaymentsNextRollingTwelveMonths2_iI_c20260531_zZuhgtWINgaa" style="border-bottom: black 1pt solid; width: 17%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">171,641</span></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total future minimum lease payments</span></td> <td> </td> <td> </td> <td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_c20260531_z2tGU8uimpY" style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">171,641</span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less: imputed interest</span></td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<span id="xdx_904_eus-gaap--ReceivableWithImputedInterestDiscount_iI_c20260531_zS38mgxxkjHd">427</span></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td> <td> </td> <td style="border-bottom: black 1pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_eus-gaap--OperatingLeaseLiability_iI_c20260531_zA2vqmlZRlq4">171,214</span></span></td> <td> </td></tr> </table> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> P5Y 14366 20648 14366 93298 96926 <table cellpadding="0" cellspacing="0" id="xdx_884_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zDNObF1Jfhec" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; width: 50%; border-collapse: collapse; margin-right: auto" summary="xdx: Disclosure - NOTE 6 - LEASES - Future Lease Payments (Details)"> <tr style="vertical-align: bottom"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Twelve months ending May 31,</b></span></td> <td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 71%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2027</span></td> <td style="width: 10%"> </td> <td style="border-bottom: black 1pt solid; width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_98C_ecustom--OperatingLeasesFutureMinimumPaymentsNextRollingTwelveMonths2_iI_c20260531_zZuhgtWINgaa" style="border-bottom: black 1pt solid; width: 17%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">171,641</span></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total future minimum lease payments</span></td> <td> </td> <td> </td> <td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_c20260531_z2tGU8uimpY" style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">171,641</span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less: imputed interest</span></td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<span id="xdx_904_eus-gaap--ReceivableWithImputedInterestDiscount_iI_c20260531_zS38mgxxkjHd">427</span></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td> <td> </td> <td style="border-bottom: black 1pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_eus-gaap--OperatingLeaseLiability_iI_c20260531_zA2vqmlZRlq4">171,214</span></span></td> <td> </td></tr> </table> 171641 171641 427 171214 <p id="xdx_804_eus-gaap--DepositLiabilitiesDisclosuresTextBlock_z6joTeY5HGRc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The balance of purchase deposits for intangible assets, which relates to the acquisitions of copyrights and broadcast rights for movies, TV dramas, and software was as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_881_eus-gaap--ScheduleOfAssumptionsForFairValueAsOfBalanceSheetDateOfInterestsContinuedToBeHeldByTransferorServicingAssetsOrServicingLiabilitiesTextBlock_zsnUeODEZK3g" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 7 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Purchase deposit for copyright and broadcast right for short form drama series</td><td style="font: 9.5pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 9.5pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20260531__us-gaap--TypeOfArrangementAxis__custom--TVDramaSeriesCopyrightMember_z12GvDkWZ6ve" style="font: 9.5pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0928">—</span>  </td><td style="font: 9.5pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250831__us-gaap--TypeOfArrangementAxis__custom--TVDramaSeriesCopyrightMember_zuBxb3HHS825" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">1,011,349</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Purchase deposit for intellectual property of ufilm</td><td style="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20260531__us-gaap--TypeOfArrangementAxis__custom--FiveMoviesCopyrightMember_zqWDS3hj79i9" style="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0930">—</span>  </td><td style="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250831__us-gaap--TypeOfArrangementAxis__custom--FiveMoviesCopyrightMember_zncCHfaZ3fni" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">300,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Total purchase deposits for intangible assets</td><td style="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_983_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20260531__us-gaap--TypeOfArrangementAxis__custom--TotalCopyrightPrepaymentMember_zePX4bl6A815" style="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0932">—</span>  </td><td style="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98E_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250831__us-gaap--TypeOfArrangementAxis__custom--TotalCopyrightPrepaymentMember_zghyU4Ng7eyk" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,311,349</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 27, 2025, the Company entered into an agreement to acquire the copyrights and broadcast rights of 1,500 episodes of short form drama series. The granted broadcasting rights are exclusive to Mainland China. As of August 31, 2025, the Company had paid purchase deposits of <span id="xdx_90E_eus-gaap--EarnestMoneyDeposits_iI_c20250831__us-gaap--AssetAcquisitionAxis__custom--TVDrama1500SeriesMember_zsGcYKj4B5Id">$1,011,349</span> towards this acquisition. The company received these short form drama series in September 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2025, the Company entered into an agreement to acquire a license to the intellectual property (“IP”) of ufilm from AIHUB Releasing, Inc. for total consideration of <span id="xdx_909_eus-gaap--AssetAcquisitionConsiderationTransferred_pp0p0_c20250501__20250531__us-gaap--TypeOfArrangementAxis__custom--AIHUBReleasingIntellectualPropertyMember_zrAFlJX068h3">$2,000,000</span>. The original settlement terms required a payment of <span id="xdx_900_eus-gaap--PaymentsToAcquireProductiveAssets_pp0p0_c20250501__20250531__us-gaap--TypeOfArrangementAxis__custom--AIHUBReleasingIntellectualPropertyPaymentOneMember_ztnlCAK6AIC5">$500,000</span> in cash within 10 days of the agreement date, with the remaining <span id="xdx_903_eus-gaap--PaymentsToAcquireProductiveAssets_pp0p0_c20250501__20250531__us-gaap--TypeOfArrangementAxis__custom--AIHUBReleasingIntellectualPropertyPaymentTwoMember_zqfYc7jbO3Aj">$1,500,000</span> payable within 10 days following the successful completion of related SaaS system testing. On June 2, 2025, the parties mutually agreed to amend the agreement, under which the Company fully settled the purchase consideration by transferring its NFT MMM intellectual property to AIHUB Releasing, Inc. Subsequently, 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 <span id="xdx_90A_eus-gaap--PaymentsToAcquireProductiveAssets_pp0p0_c20250602__20250602__us-gaap--TypeOfArrangementAxis__custom--AIHUBReleasingIntellectualPropertyRevisedPaymentMember_zpUvdJUxg5s9">$300,000</span>, replacing the previously agreed transfer of the Company’s NFT MMM IP. As of August 31, 2025, the Company had paid purchase deposits of full purchase price totaling <span id="xdx_902_eus-gaap--PaymentsToAcquireProductiveAssets_pp0p0_c20250831__20250831__us-gaap--TypeOfArrangementAxis__custom--AIHUBReleasingIntellectualPropertyRevisedPaymentMember_zzB0kEYLZDG5">$300,000</span>. The asset was delivered on January 12, 2026.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_881_eus-gaap--ScheduleOfAssumptionsForFairValueAsOfBalanceSheetDateOfInterestsContinuedToBeHeldByTransferorServicingAssetsOrServicingLiabilitiesTextBlock_zsnUeODEZK3g" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 7 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: left">Purchase deposit for copyright and broadcast right for short form drama series</td><td style="font: 9.5pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 9.5pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20260531__us-gaap--TypeOfArrangementAxis__custom--TVDramaSeriesCopyrightMember_z12GvDkWZ6ve" style="font: 9.5pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0928">—</span>  </td><td style="font: 9.5pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250831__us-gaap--TypeOfArrangementAxis__custom--TVDramaSeriesCopyrightMember_zuBxb3HHS825" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">1,011,349</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Purchase deposit for intellectual property of ufilm</td><td style="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20260531__us-gaap--TypeOfArrangementAxis__custom--FiveMoviesCopyrightMember_zqWDS3hj79i9" style="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0930">—</span>  </td><td style="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250831__us-gaap--TypeOfArrangementAxis__custom--FiveMoviesCopyrightMember_zncCHfaZ3fni" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">300,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Total purchase deposits for intangible assets</td><td style="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_983_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20260531__us-gaap--TypeOfArrangementAxis__custom--TotalCopyrightPrepaymentMember_zePX4bl6A815" style="border-bottom: Black 1pt solid; font: 9.5pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0932">—</span>  </td><td style="font: 9.5pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98E_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250831__us-gaap--TypeOfArrangementAxis__custom--TotalCopyrightPrepaymentMember_zghyU4Ng7eyk" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,311,349</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> 1011349 300000 1311349 1011349 2000000 500000 1500000 300000 300000 <p id="xdx_80B_ecustom--ConvertiblePromissoryNotesAndDerivativeLiabilitiesDisclosureTextBlock_zqD9Htgk0peg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 8 – CONVERTIBLE PROMISSORY NOTES AND DERIVATIVE LIABILITIES</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the period from January 8, 2026 through February 26, 2026, the Company issued a series of convertible promissory notes (the “Notes”) to six investors, with an aggregate principal amount of approximately <span id="xdx_904_eus-gaap--ConvertibleNotesPayable_iI_c20260226__us-gaap--DebtInstrumentAxis__custom--SixInvestorsMember_zY8961QBxl09">$895,250</span>. The Company received net proceeds of approximately <span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOfDebt_c20260108__20260226__us-gaap--DebtInstrumentAxis__custom--SixInvestorsMember_zLveC1QYmF78">$806,000</span>   in the aggregate, after deducting original issue discount and related fees. During the three months ended May 31, 2026, the Company further issued one convertible promissory note to one investor, with a principal amount of approximately <span id="xdx_90F_eus-gaap--ConvertibleNotesPayable_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--OneInvestorMember_z5fMvSD2AnCb">$51,500</span>. The Company received net proceeds of approximately <span id="xdx_902_eus-gaap--ProceedsFromIssuanceOfDebt_c20260301__20260531__us-gaap--DebtInstrumentAxis__custom--OneInvestorMember_z0LysjtAdDO9">$41,500</span> after deducting original issue discount and related fees.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Notes generally bear interest at a rate of <span id="xdx_906_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_c20260226__us-gaap--DebtInstrumentAxis__custom--SixInvestorsMember_z6qT7NOG7Kuc">10%</span> per annum and have contractual maturities ranging from approximately nine to twelve months from issuance. The holders may convert the outstanding principal and accrued interest into shares of the Company’s common stock, subject to the terms of the instrument, which may include a holding period (e.g., 180 days) in certain agreements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span id="xdx_90D_eus-gaap--DebtInstrumentConvertibleTermsOfConversionFeature_c20260108__20260226__us-gaap--DebtInstrumentAxis__custom--SixInvestorsMember_zii51wvjgmd6">The conversion price is generally equal to 80% of the lowest trading price of the Company’s common stock during a specified look-back period (typically 20 trading days) prior to the conversion date, subject to a 4.99% beneficial ownership limitation.</span> The Notes contain customary default provisions, including increased interest rates upon events of default. As a result of these features, the number of shares issuable upon conversion is not fixed and may vary significantly based on the Company’s stock price and the timing of conversion, which may result in substantial dilution to existing shareholders.</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 8 – CONVERTIBLE PROMISSORY NOTES AND DERIVATIVE LIABILITIES (Continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for its convertible promissory notes in accordance with ASC 470 and evaluates embedded features in accordance with ASC 815. The Company determined that the embedded conversion features are not indexed to its own stock within the meaning of ASC 815-40 because the conversion price is based on a variable discount to the Company’s market price, resulting in a variable number of shares to be issued upon conversion. Accordingly, the embedded conversion features are bifurcated from the host instruments and accounted for as derivative liabilities, with the remaining host instruments accounted for as debt. Derivative liabilities are initially recognized at fair value on the issuance date and are subsequently remeasured at fair value at each reporting date, with changes in fair value recognized in earnings.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the embedded derivatives is estimated using a Monte Carlo simulation model due to the path-dependent nature of the conversion features, including look-back pricing provisions and assumptions regarding the timing of conversion by the holders. Key inputs used in the valuation include:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <ul style="margin-top: 0in; list-style-type: disc"> <li style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s stock price at the valuation date</li> <li style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expected volatility (approximately <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--SixInvestorsMember_zsbWlcJwhgw1">85.0%</span> to <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--SixInvestorsMember_zIlvg4tVkooh">123.1%</span>)</li> <li style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Risk-free interest rates (approximately <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--SixInvestorsMember_zbK2gZNDVvy4">3.48%</span> to <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--SixInvestorsMember_zBvc6TZo14Hk">3.79%</span>)</li> <li style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expected term based on contractual maturity and estimated conversion behavior</li> <li style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Zero expected dividend yield</li> </ul> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to the use of significant unobservable inputs, including assumptions regarding expected volatility and holder behavior, the derivative liabilities are classified as Level 3 within the fair value hierarchy in accordance with ASC 820.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASC 815-15-30-2, the Company allocates the proceeds received from the issuance of convertible promissory notes between the derivative liability and the host debt. The derivative liability is initially measured at its fair value, and the carrying amount of the host debt is determined as the difference between the proceeds received and the fair value of the derivative liability. To the extent that the fair value of the derivative liability exceeds the proceeds received, the excess is recognized immediately in earnings as a loss on issuance, resulting in no initial carrying amount for the host debt.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest expense recognized over the term of the Notes includes contractual coupon interest and, where applicable, amortization of any debt discount. Debt issuance costs related to the Notes are capitalized and amortized to interest expense over the term of the Notes using the effective interest method.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the three and nine months ended May 31, 2026, the Company recognized (i) interest expense of <span id="xdx_90A_ecustom--InterestExpense2_c20260301__20260531_zFqL6c0INqVf">$145,909</span> and <span id="xdx_909_ecustom--InterestExpense2_c20250901__20260531_zI30pC2OV6Xj">$184,562</span>, respectively, and (ii) a change in fair value of derivative liabilities of <span id="xdx_902_eus-gaap--IncreaseDecreaseInDerivativeLiabilities_c20260301__20260531_zTuznwzoIMCa">$142,598</span> and <span id="xdx_901_eus-gaap--IncreaseDecreaseInDerivativeLiabilities_c20250901__20260531_zy6mJq8Z0d1c">$98,998</span>, respectively   in the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026, the Company had outstanding convertible notes with an aggregate principal amount of approximately <span id="xdx_905_eus-gaap--ConvertibleNotesPayable_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--TotalsMember_z1nIMQi6XGU9">$946,750</span>, and derivative liabilities with an aggregate fair value of approximately <span id="xdx_902_eus-gaap--DerivativeFairValueOfDerivativeLiability_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--TotalsMember_z33g8uvU4rzg">$538,415</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the Company’s convertible promissory notes and derivative liabilities as of May 31, 2026:</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_888_eus-gaap--ScheduleOfDebtInstrumentsTextBlock_zZ4ZW6Ukhq7a" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 8 - CONVERTIBLE PROMISSORY NOTES AND DERIVATIVE LIABILITIES - Convertible Promissory Notes and Derivative Liability (Details)"> <tr style="vertical-align: bottom"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: justify">Convertible Notes Payable</td><td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Balance, August 31, 2025</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_904_eus-gaap--ConvertibleDebt_iI_c20250831_zfKei40blFP9"><span style="-sec-ix-hidden: xdx2ixbrl0960">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; width: 70%; text-align: justify">Issuance of convertible notes (face value)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 18%; text-align: right"><span id="xdx_905_eus-gaap--ConvertibleNotesPayable_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--TotalsMember_zFo9id2nIYje">946,750</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Less: discount on Note issuance, net of amortization</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_904_ecustom--AmortizationOfDebtDiscountPremium2_c20250901__20260531_zjBZFWAkEVHc">573,244</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Repayments / conversions</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_900_eus-gaap--RepaymentsOfDebt_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--ConvertibleNotesPayableTableMember_zerYLyowkJzk"><span style="-sec-ix-hidden: xdx2ixbrl0963">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Balance, May 31, 2026</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90B_eus-gaap--ConvertibleDebt_iI_c20260531_zPhNkVdyKD7d">373,506</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: justify">Derivative Liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Balance, August 31, 2025</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90F_eus-gaap--DerivativeLiabilities_iI_c20250831__us-gaap--DebtInstrumentAxis__custom--ConvertibleNotesPayableTableMember_zETW0Z0z4oBh"><span style="-sec-ix-hidden: xdx2ixbrl0965">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Initial recognition</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_908_ecustom--DerivativeLiabilitiesRecognizedAtFairValue_c20250901__20260531_zGarcD2ZUM2l">637,413</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Change in fair value of derivative liability</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_901_ecustom--ChangeInFairValueOfDerivativeLiabilities_c20250901__20260531_zHYaXG1ejS38">98,998</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">) </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Settlement / conversions</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90A_ecustom--DerivativeLiabilitiesSettled_c20250901__20260531_z2TbdS8A0KT9"><span style="-sec-ix-hidden: xdx2ixbrl0968">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Balance, May 31, 2026</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_900_eus-gaap--DerivativeLiabilities_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--ConvertibleNotesPayableTableMember_zNtQgy5hH0La">538,415</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 895250 806000 51500 41500 0.10 The conversion price is generally equal to 80% of the lowest trading price of the Company’s common stock during a specified look-back period (typically 20 trading days) prior to the conversion date, subject to a 4.99% beneficial ownership limitation. 0.850 1.231 0.0348 0.0379 145909 184562 142598 98998 946750 538415 <table cellpadding="0" cellspacing="0" id="xdx_888_eus-gaap--ScheduleOfDebtInstrumentsTextBlock_zZ4ZW6Ukhq7a" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto" summary="xdx: Disclosure - NOTE 8 - CONVERTIBLE PROMISSORY NOTES AND DERIVATIVE LIABILITIES - Convertible Promissory Notes and Derivative Liability (Details)"> <tr style="vertical-align: bottom"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: justify">Convertible Notes Payable</td><td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Balance, August 31, 2025</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_904_eus-gaap--ConvertibleDebt_iI_c20250831_zfKei40blFP9"><span style="-sec-ix-hidden: xdx2ixbrl0960">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; width: 70%; text-align: justify">Issuance of convertible notes (face value)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 18%; text-align: right"><span id="xdx_905_eus-gaap--ConvertibleNotesPayable_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--TotalsMember_zFo9id2nIYje">946,750</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Less: discount on Note issuance, net of amortization</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_904_ecustom--AmortizationOfDebtDiscountPremium2_c20250901__20260531_zjBZFWAkEVHc">573,244</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Repayments / conversions</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_900_eus-gaap--RepaymentsOfDebt_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--ConvertibleNotesPayableTableMember_zerYLyowkJzk"><span style="-sec-ix-hidden: xdx2ixbrl0963">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Balance, May 31, 2026</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90B_eus-gaap--ConvertibleDebt_iI_c20260531_zPhNkVdyKD7d">373,506</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: justify">Derivative Liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Balance, August 31, 2025</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90F_eus-gaap--DerivativeLiabilities_iI_c20250831__us-gaap--DebtInstrumentAxis__custom--ConvertibleNotesPayableTableMember_zETW0Z0z4oBh"><span style="-sec-ix-hidden: xdx2ixbrl0965">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Initial recognition</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_908_ecustom--DerivativeLiabilitiesRecognizedAtFairValue_c20250901__20260531_zGarcD2ZUM2l">637,413</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Change in fair value of derivative liability</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_901_ecustom--ChangeInFairValueOfDerivativeLiabilities_c20250901__20260531_zHYaXG1ejS38">98,998</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">) </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Settlement / conversions</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90A_ecustom--DerivativeLiabilitiesSettled_c20250901__20260531_z2TbdS8A0KT9"><span style="-sec-ix-hidden: xdx2ixbrl0968">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Balance, May 31, 2026</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_900_eus-gaap--DerivativeLiabilities_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--ConvertibleNotesPayableTableMember_zNtQgy5hH0La">538,415</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> 946750 573244 373506 637413 98998 538415 <p id="xdx_801_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zI7sCkZB9Wdh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 9 – RELATED PARTY TRANSACTIONS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Related party loans and line of credit agreements</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In support of the Company’s operations and cash requirements, the Company may rely on advances from stockholders until such time that it can sustain its operations or obtain adequate financing through equity sales or traditional debt financing.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Mr. Chiyuan Deng, the Chief Executive Officer</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 1, 2023, Mr. Chiyuan Deng, the Company’s Chief Executive Officer and a stockholder, entered into a line of credit agreement with the Company. Under the agreement, Mr. Deng agreed to provide a line of credit of up to <span id="xdx_900_eus-gaap--LineOfCreditFacilityCommitmentFeeAmount_c20230601__20230601__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanMember_zYVCLpEIxpDd">$1,500,000</span>, which included the existing shareholder loan balance of <span id="xdx_902_eus-gaap--AccountsPayableOtherCurrent_iI_c20230601__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanMember_zDlHTsBA6un">$697,281</span>. <span id="xdx_906_eus-gaap--DebtInstrumentInterestRateTerms_c20230601__20230601__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanMember_z6pw2uocy27g">The line of credit is non-interest bearing and due on demand</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the nine months ended May 31, 2026, Mr. Deng provided additional loans totaling <span id="xdx_908_eus-gaap--IncreaseDecreaseInNotesPayableRelatedParties_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanAdditionalMember_zU9uEBUpdhch">$2,867,591</span> to meet the Company’s working capital needs. In addition, Mr. Deng and Anyone Pictures Limited had signed an agreement to agree to transfer Anyone’s balance to Mr. Deng’s account. As of May 31, 2026, the Company had repaid <span id="xdx_90F_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanAdditionalMember_zdeJtbMbCSc1">$4,670,613</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the nine months ended May 31, 2025, Chiyuan Deng has loaned a total of <span id="xdx_905_eus-gaap--IncreaseDecreaseInNotesPayableRelatedParties_c20240901__20250531__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanAdditionalMember_zBMIc78hTYle">$3,537,595</span> for its working capital needs. As of May 31, 2025, the Company has repaid <span id="xdx_909_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_c20240901__20250531__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanAdditionalMember_zVmUVc1mdbEk">$2,077,722</span>. The loans are non-interest bearing and due on demand. The Company recognized imputed interest at <span id="xdx_901_eus-gaap--ReceivableWithImputedInterestEffectiveYieldInterestRate_uPure_c20230901__20240831__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengLineOfCreditMember_zlGuj5JFZ3ne">5%</span> per annum on the outstanding balances as of May 31, 2026 and August 31, 2025. As of May 31, 2026 and August 31, 2025, the outstanding loan balances due to Mr. Deng were <span id="xdx_903_eus-gaap--AccountsPayableOtherCurrent_iI_c20260531__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanMember_zppYCuxuiwz3">$42,052</span> and <span id="xdx_90A_eus-gaap--AccountsPayableOtherCurrent_iI_c20250831__us-gaap--RelatedPartyTransactionAxis__custom--ShareholderLoanMember_zyeGm78v2p9g">$622,030</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine and three months ended May 31, 2026, the Company incurred related party loan interest expense of <span id="xdx_90D_eus-gaap--InterestExpense_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zMbwkTk0E9pb">$9,242</span> and <span id="xdx_901_eus-gaap--InterestExpense_c20260301__20260531__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zwOamabaGbtj">$85</span> for Chiyuan Deng, the President. During the nine and three months ended May 31, 2025, the Company incurred related party loan interest expense of <span id="xdx_905_eus-gaap--InterestExpense_c20240901__20250531__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zlanSOwhIcqi">$22,802</span> and <span id="xdx_906_eus-gaap--InterestExpense_c20250301__20250531__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zOt06FQcSOC5">$19,229</span> for Chiyuan Deng, the President.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: Yellow"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Anyone Pictures Limited </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 1, 2025, the Company entered into a line of credit agreement with Anyone Pictures Limited, the Company’s major stockholder, for up to <span id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_c20250301__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedLineOfCreditMember_zpUyT0TTAi0b">$2,000,000</span>. The loan is non-interest bearing and due on demand. For the nine months ended May 31, 2026, Anyone Pictures Limited advanced <span id="xdx_900_eus-gaap--IncreaseDecreaseInNotesPayableRelatedParties_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_z0bSHjx0KpIk">$1,204,967</span> to the Company for working capital purposes <span id="xdx_903_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_zNVjLB4P609l">$1,171,290</span> was repaid as of December 10, 2025. On December 8, 2025, the Company entered into a Repurchase Agreement with Anyone Pictures Limited. (See Note 10). Since Anyone Pictures Limited is no longer the major shareholder of the Company, Mr. Deng and Anyone Pictures Limited had signed an agreement to agree to transfer Anyone’s balance of $1,223,043 to Mr. Deng’s account. The Company recognized imputed interest at <span id="xdx_90B_eus-gaap--ReceivableWithImputedInterestEffectiveYieldInterestRate_uPure_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_zkkL40hufb8">5%</span> per annum on the outstanding balances as of December 10, 2025 and August 31, 2025. As of May 31, 2026 and August 31, 2025, the outstanding loan balances due to Anyone Pictures Limited were <span id="xdx_901_eus-gaap--AccountsPayableOtherCurrent_iI_c20260531__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_z2zVU7Kx50X4">$0</span> and <span id="xdx_902_eus-gaap--AccountsPayableOtherCurrent_iI_c20250831__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_z5ebCWTvt5Z9">$1,189,366</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine and three months ended May 31, 2026, the Company incurred related party loan interest expense of <span id="xdx_906_eus-gaap--InterestExpense_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_zNYiOARIw7H3">$16,160</span> and <span id="xdx_902_eus-gaap--InterestExpense_c20260301__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_zrUSYH4rJLI4">$0</span> for Anyone Pictures Limited. During the nine and three months ended May 31, 2025, the Company incurred related party loan interest expense of <span id="xdx_90F_eus-gaap--InterestExpense_c20240901__20250531__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_zwDXcoWZRFp9">$17,239</span> and <span id="xdx_901_eus-gaap--InterestExpense_c20250301__20250531__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedMember_zr2dFrQaBemj">$17,239</span> for Anyone Pictures Limited.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Maintenance &amp; consulting agreement - related party - Zestv</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended May 31, 2026, the Company entered into an operations and maintenance service agreement with Zestv Studios Limited, a company owned by the Company's director, Mr. Chiyuan Deng, and therefore a related party, for the provision of technical support, software maintenance, system optimization, security updates, service level support and consulting services for the Company's Ufilm AI platform. Pursuant to the agreement, the Company incurred maintenance service fees of <span id="xdx_900_eus-gaap--CostMaintenance_c20260301__20260531__us-gaap--RelatedPartyTransactionAxis__custom--UfilmAIPlatformMember_zshgknvJUlAg">$129,000</span> for the three months ended May 31, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, the Company engaged Zestv Studios Limited to perform additional development and enhancement work on the Ufilm AI platform, including further development of AI functionalities and the integration of the acquired multi-agent technology into the Ufilm v2.0 platform. During the three months ended May 31, 2026, the Company incurred <span id="xdx_905_eus-gaap--PaymentsToDevelopSoftware_c20260301__20260531__us-gaap--RelatedPartyTransactionAxis__custom--UfilmAIPlatformMember_zyPjTfbydOgf">$80,000</span> for these additional development services.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026, the Company had prepaid maintenance service fees of <span id="xdx_905_ecustom--PrepaidMaintenanceServiceFees_iI_c20260531__us-gaap--RelatedPartyTransactionAxis__custom--UfilmAIPlatformMember_zSuWXqbDvUg">$129,000</span> to the related party, which were recorded as prepaid expenses. These amounts were settled through the due to shareholder account during the three months ended May 31, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 9 – RELATED PARTY TRANSACTIONS (continued) </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue and accounts receivable - related party - Anyone Pictures Limited</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the three months ended November 30, 2025, the Company recognized a license revenue of <span id="xdx_901_eus-gaap--RevenueNotFromContractWithCustomer_pp0p0_c20250901__20260531__us-gaap--TypeOfArrangementAxis__custom--AnyonePictures6MoviesAnd2TVSeriesMember_zlzRAwVxYlJ4">$150,000</span> for granting Anyone Pictures Limited access to the NFT MMM platform. In addition, the Company recognized consulting service revenue of <span id="xdx_905_eus-gaap--RevenueNotFromContractWithCustomerOther_pp0p0_c20250901__20260531__us-gaap--TypeOfArrangementAxis__custom--AnyonePictures6MoviesAnd2TVSeriesMember_z5ZnTabzL1G5">$283,307</span> from Anyone Pictures Limited related to AI-based solutions and project oversight services designed to enhance short drama market accuracy, personalization, and advertising monetization. On December 8, 2025, the Company entered into a Repurchase Agreement with Anyone Pictures Limited, which ceased to be a related party of the Company upon completion of the transaction. (See Note 10).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026 and August 31, 2025, the Company had <span id="xdx_904_eus-gaap--AccountsReceivableNet_iI_do_c20260531_zyd5IyiUElEd"><span id="xdx_901_eus-gaap--AccountsReceivableNet_iI_do_c20250831_zcrTs6If8Etd">no</span></span> outstanding accounts receivable from Anyone Pictures Limited.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Executives’ salaries</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Mr. Chiyuan Deng, the President</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"> </p> <p id="xdx_ff" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 11, 2020 and May 24, 2022, the Company entered into two amended employment agreements with Chiyuan Deng, the Chief Executive Officer. Pursuant the amended agreements, the Company amended the compensation to Mr. Deng to include a salary of <span id="xdx_906_eus-gaap--AccruedSalariesCurrent_iI_c20200911__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_zkiR5hq0c5gh">$180,000</span> annually, a reduction in common stock received under his initial employment agreement, a potential for a bonus in cash or shares, and the issuance of <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesShareBasedCompensation_c20200901__20200911__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_zlCVJSUd59N7">100,000</span> shares of Series A Preferred Stock at par value <span id="xdx_90B_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_c20200911__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z9aoIU6GwVpb">$0.001</span>. Mr. Deng returned <span id="xdx_903_ecustom--SharesReturnedToCompany_c20200911__20200911__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CEOMember_zTxq1TtPPdJd">266,667</span> shares common stock to the Company received under his initial employment agreement. The Chief Executive Officer opted to forgo his salaries effective from October 2023. On February 14, 2025, the Company approved compensation of <span id="xdx_90E_eus-gaap--PaymentsToEmployees_pp0p0_c20250601__20250831__srt--TitleOfIndividualAxis__custom--CEOMember_zkjKeTdNkJ3h">$99,000</span> to the Chief Executive Officer for the three months ended February 28, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="color: #212529">On February 14, 2025, the Company approved compensation of <span id="xdx_908_eus-gaap--AccruedBonusesCurrent_iI_c20250214__us-gaap--RelatedPartyTransactionAxis__srt--ChiefExecutiveOfficerMember_zuqpGY7Iqr3c">$99,000</span> to the Chief Executive Officer for the three months ended February 28, 2025 and the issuance up to 2.5 </span>(split-adjusted 1.3 million) <span style="color: #212529">billion shares of common stock at the end of three months period. On March 14, 2025, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesEmployeeBenefitPlan_c20250314__20250314__us-gaap--RelatedPartyTransactionAxis__srt--ChiefExecutiveOfficerMember_zglqFiXWFJsh">2,000,000,000</span> </span>(split-adjusted 1,000,000) <span style="color: #212529">shares of the Company’s common stock to the Chief Executive Officer which were valued at market price of <span id="xdx_90A_eus-gaap--SharesIssuedPricePerShare_iI_c20250314__us-gaap--RelatedPartyTransactionAxis__srt--ChiefExecutiveOfficerMember_zF5GQM49U3sh">$0.0002</span> </span>(split-adjusted $0.4) <span style="color: #212529">per share for a total amount of <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodValueEmployeeBenefitPlan_c20250314__20250314__us-gaap--RelatedPartyTransactionAxis__srt--ChiefExecutiveOfficerMember_zubPhVk8xhc3">$400,000</span>.  </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"><span style="background-color: Yellow"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 24, 2025, the sole director approved a stock-based bonus to the Company’s Chief Executive Officer consisting of <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesEmployeeBenefitPlan_c20251224__20251224_zcKk8hUbVsH">1,000,000</span> fully vested shares of common stock. The Company recognized compensation expense of <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodValueEmployeeBenefitPlan_c20251224__20251224_zHf6GmZLR7za">$400,000</span> equal to the grant-date fair value of the shares. (See Note 10)</p> <p style="font: 12pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 1, 2026, the Company entered into an Employment Agreement with Chiyuan Deng to serve as the Company's President. The agreement has an initial three-year term with automatic one-year renewals unless either party provides 90 days’ prior written notice of non-renewal. Pursuant to the agreement, Mr. Deng is entitled to a sign-on bonus of <span id="xdx_901_eus-gaap--AccruedBonusesCurrent_iI_c20260301__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengMember_zqafzPbkjPth">$300,000</span>, payable in shares of the Company's common stock at <span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20260301__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengMember_z352ZJehFSG5">$0.9</span>0 per share. On March 1, 2026, the Company recognized compensation expense of <span id="xdx_903_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20260301__20260531__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengMember_zA2MpZtaApI2">$146,667</span> equal to the grant-date fair value of the share’s market price of $0.44 per share for 333,333 shares. (See Note 10).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, on March 1, 2026, the Company entered into an Employment Agreement with Chiyuan Deng with an annual base salary of <span id="xdx_90B_eus-gaap--SalariesAndWages_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengMember_zeKIZL0Qfgg4">$144,000</span>. For the three months ended May 31, 2026, the Company recognized salary expense of <span id="xdx_903_eus-gaap--SalariesWagesAndOfficersCompensation_c20260301__20260531_zTrQjU14CUm5">$36,296</span>, of which <span id="xdx_909_ecustom--SalariesPaidInCash_c20260301__20260531_zhwxJ30Vl4Wb">$21,600</span> was subsequently paid in cash and <span id="xdx_90B_ecustom--SalariesPaidInStock_c20260301__20260531__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengMember_zCStvq8hF5ph">$14,696</span> will be settled through the issuance of the Company's common shares.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended May 31, 2026 and 2025, the Company incurred total compensation of <span id="xdx_90A_eus-gaap--PaymentsToEmployees_pp0p0_c20250901__20260531__srt--TitleOfIndividualAxis__custom--CEOMember_zdulajJF24J3">$582,963</span> and <span id="xdx_906_eus-gaap--PaymentsToEmployees_pp0p0_c20240901__20250531__srt--TitleOfIndividualAxis__custom--CEOMember_ziI7lDlYt8Yk">$499,000</span> for Chiyuan Deng, the President.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 9 – RELATED PARTY TRANSACTIONS (continued) </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Mr. Ahmad Moradi, the Chief Executive Officer (March 1, 2026</i> to <i>May 7, 2026)</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 1, 2026, the Company entered into an Employment Agreement with Ahmad Moradi to serve as the Company's Chief Executive Officer. The agreement has an initial three-year term with automatic one-year renewals unless either party provides 90 days’ prior written notice of non-renewal. Pursuant to the agreement, Mr. Moradi is entitled to a sign-on bonus of <span id="xdx_904_eus-gaap--AccruedBonusesCurrent_iI_c20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zjKlS3N4k0z3">$500,000</span>, payable in shares of the Company's common stock at <span id="xdx_90C_eus-gaap--SharesIssuedPricePerShare_iI_c20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zL6JNL1XfQkk">$0.90</span> per share. On March 1, 2026, the Company recognized compensation expense of <span id="xdx_903_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_z5Eybns9J189">$244,444</span> equal to the grant-date fair value of the share’s market price of $0.44 per share for 555,555 shares. (See Note 10).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the Employment Agreement, Mr. Moradi is also entitled to an annual base salary of <span id="xdx_908_eus-gaap--SalariesAndWages_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_z7c2WyevdVN">$144,000</span>, payable quarterly, with at least 50% payable in cash. For the three months ended May 31, 2026, the Company recognized base salary expense of <span id="xdx_90D_eus-gaap--LaborAndRelatedExpense_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zehkgJ4Pgka1">$26,433</span>, of which <span id="xdx_90A_ecustom--SalariesPaidInCash_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_z2J1H0aCdLn2">$13,217</span> was paid in cash and the remaining <span id="xdx_901_ecustom--SalariesPaidInStock_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zKNZEyrmKaVe">$13,216</span> was settled through the issuance of <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesEmployeeStockOwnershipPlan_c20260301__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_z0yWNdehCdI7">11,296</span> shares of the Company's common stock, based on a share price of <span id="xdx_903_eus-gaap--SaleOfStockPricePerShare_iI_c20260507__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zMkfllHvvTcj">$1.17</span> per share on May 7, 2026. (See Note 10).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended May 31, 2026 and 2025, the Company incurred total compensation of <span id="xdx_906_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradi2Member_zCUTW0dhznr5">$270,877</span> and <span id="xdx_900_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20240901__20250531__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradi2Member_z3XWa6Z4skMh">$0</span> for Ahmad Moradi, the Chief Executive Officer</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Mr. Dzmitry Kastahorau, the CFO (April 7, 2026</i> to <i>June 3, 2026)</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 7, 2026, the Company entered into an Employment Agreement with Dzmitry Kastahorau to serve as the Company's CFO. The agreement has an initial three-year term with automatic one-year renewals unless either party provides 90 days’ prior written notice of non-renewal. Pursuant to the agreement, Mr. Kastahorau is entitled to a sign-on bonus of <span id="xdx_908_eus-gaap--AccruedBonusesCurrent_iI_c20260407__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zflLIIpQRUTk">$300,000</span>, payable in shares of the Company's common stock at <span id="xdx_904_eus-gaap--SharesIssuedPricePerShare_iI_c20260407__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zcIMv06El5B5">$0.90</span> per share. On April 7, 2026, the Company recognized compensation expense of <span id="xdx_905_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20260407__20260407__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zwgtUhEn0783">$80,000</span> equal to the grant-date fair value of the share’s market price of $0.24 per share for 333,333 shares. (See Note 10).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the Employment Agreement, Mr. Kastahorau is also entitled to an annual base salary of <span id="xdx_90E_eus-gaap--SalariesAndWages_c20260407__20260407__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zMhTcajpSBb3">$60,000</span>, payable quarterly. For the three months ended May 31, 2026, the Company recognized base salary expense of <span id="xdx_90D_eus-gaap--LaborAndRelatedExpense_c20260407__20260407__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zcSE2Q0R7JK4">$9,040</span>, of which was subsequently paid in cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended May 31, 2026 and 2025, the Company incurred total compensation of <span id="xdx_906_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zOzj1LyZmKqe">$89,040</span> and <span id="xdx_90B_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20240901__20250531__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zqUNsneUshY">$0</span> for Dzmitry Kastahorau, the CFO.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Executives’ share-based compensation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended May 31, 2026 and 2025, the Company incurred total share-based compensation of <span id="xdx_905_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20250901__20260531__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zYoh5esnVdd5">$41,110</span> and <span id="xdx_906_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20240901__20250531__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zFys1m6C4Qwc">$0</span> for Chiyuan Deng, the President. (See Note 11).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> 1500000 697281 The line of credit is non-interest bearing and due on demand 2867591 4670613 3537595 2077722 0.05 42052 622030 9242 85 22802 19229 2000000 1204967 1171290 0.05 0 1189366 16160 0 17239 17239 129000 80000 129000 150000 283307 0 0 99000 2000000000 0.0002 400000 1000000 400000 300000 0.9 146667 144000 36296 21600 14696 582963 499000 500000 0.90 244444 144000 26433 13217 13216 11296 1.17 270877 0 300000 0.90 80000 60000 9040 89040 0 41110 0 <p id="xdx_808_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zKw1YTuJCDy7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 10 – STOCKHOLDERS’ EQUITY</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline">Common shares</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had the following activities for the nine months ended May 31, 2026:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Repurchase of shares</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 8, 2025, the Company entered into a Repurchase Agreement (the “Repurchase Agreement”) with Anyone Pictures Limited (the “Stockholder”), pursuant to which the Company agreed to repurchase from the Stockholder <span id="xdx_907_eus-gaap--StockRepurchasedDuringPeriodShares_c20251208__20251208__us-gaap--StatementEquityComponentsAxis__custom--AnyonePicturesLimitedRepurchaseAgreementMember_zHu592MyF2Hl">3,750,000,000</span> (split-adjusted 1,875,000) shares  of the Company’s common stock, par value <span id="xdx_906_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20260531_z0UTMxClbS35">$0.001</span> per share (the “Shares”), for an aggregate purchase price of <span id="xdx_901_eus-gaap--StockRepurchasedDuringPeriodValue_c20251208__20251208__us-gaap--StatementEquityComponentsAxis__custom--AnyonePicturesLimitedRepurchaseAgreementMember_z9N6iPJcWCQd">$675,000</span> (the “Purchase Price”), or approximately $0.00018 (split-adjusted $0.36) per share.</p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 10 – STOCKHOLDERS’ EQUITY (Continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">The repurchase represents approximately <span id="xdx_909_ecustom--RepurchasePercentageOfCommonStockOutstanding_iI_c20251208_z98nAjqZWwmf">46.2%</span> of the Company’s currently outstanding common stock (based on <span id="xdx_909_eus-gaap--CommonStockSharesOutstanding_iI_c20251208_zGEY7wyYOLjg">8,121,266,321</span> (split-adjusted 4,061,107) shares outstanding as of the most recent practicable date prior to the transaction). Upon closing of the transaction, the Shares will be returned to the Company’s treasury and canceled.</p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">The transaction closed simultaneously with the execution of the Repurchase Agreement on December 8, 2025. The Purchase Price was satisfied through a non-cash settlement by offsetting against a related party loan. The Shares have been surrendered and canceled on the books of the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Reverse Stock split</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span id="xdx_907_eus-gaap--StockholdersEquityReverseStockSplit_c20250605__20250605_zTIlLv0b0vh8">On June 5, 2025, the Company obtained the written consent of majority stockholders to grant discretionary authority to the Board of Directors of the Company, at any time or times for a period of 12 months after the date of the written consent, to adopt an amendment to the articles of incorporation to effect a reverse split of the issued and outstanding common stock within a range of 1-for-2,000 to 1-for-20,000</span>. The exact ratio to be determined by the Board at a later date and is contingent upon receiving a market effectiveness date from FINRA. The Board of Directors has fixed the reverse-split ratio at 1-for-2,000 and has directed that the reverse stock split implemented effective December 18, 2025 (the “Market Effective Date”) upon receipt of FINRA’s market-effective notice on December 17, 2025. As a result of the share consolidation, each 2,000 common shares outstanding automatically combines and converts to one issued and outstanding common share without any action on the part of the shareholder. The share consolidation reduces the number of common shares issued and outstanding from <span id="xdx_904_eus-gaap--CommonStockSharesIssued_iI_c20251216_zPYyAydrzr72"><span id="xdx_90B_eus-gaap--CommonStockSharesOutstanding_iI_c20251216_z58DubieAAJa">4,371,266,321</span></span> to <span id="xdx_909_eus-gaap--CommonStockSharesIssued_iI_c20251217_zVsyEawrwms6"><span id="xdx_90D_eus-gaap--CommonStockSharesOutstanding_iI_c20251217_zikSJbv7OFwe">2,186,107</span></span> as of December 17, 2025. The authorized number of common shares remained the same. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Issuance of common shares for consulting and financing services</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 1, 2025, the Company entered into three consulting agreements with independent third-party consultants to provide business development services. Under the terms of the agreements, each of the consultants are entitled to receive an aggregate of <span id="xdx_902_ecustom--ShareBasedGoodsAndNonemployeeServicesTransactionQuantityOfSecuritiesIssued2_c20251001__20251001__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsMember_zhmTGCiWazn6">160,000,000</span> (split-adjusted 80,000) shares of the Company’s restricted common stock as compensation for services.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon execution of the agreements, the Company issued <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod_c20251001__20251001__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsEachMember_ztMju6pbop39">30,000,000</span> (split-adjusted 15,000) restricted common shares to each of the consultants, totaling <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod_c20251001__20251001__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsTotalMember_zSbFiKLjfNPb">90,000,000</span> (split-adjusted 45,000), which were delivered to the Company’s transfer agent in the consultants’ names and accounts. Under the terms of the agreement, the Company issued <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod_c20251001__20251001__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsTotalMember_zYShCC2AcFag">90,000,000</span> (split-adjusted 45,000), shares of its common stock at a value of <span id="xdx_901_ecustom--ShareBasedGoodsAndNonemployeeServicesTransactionSharePrice_iI_pp4d_c20251001_zfb235EOOHy4">$0.0002</span> (split-adjusted $0.4) per share, for total consulting expenses of <span id="xdx_906_ecustom--NonemployeeShareBasedCompensationExpense_iI_c20260228_z3yxF0zFbJga">$18,000</span> for the three months ended November 30, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Beginning in the fourth month following the agreement date, and continuing through the sixteenth month, for each of the consultant, the Company is required to issue <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod_c20251001__20251001__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsPerMonthMember_zl213PoBiuFl">10,000,000</span> (split-adjusted 5,000) restricted common shares per month, to be delivered to the transfer agent in the Company’s name and account for subsequent release pursuant to the service schedule under the agreements. During the three months ended February 28, 2026, the Company issued <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20260301__20260531__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsFirst2026DisbersmentTotalMember_z0AoEjqibRva">15,000</span> and <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20260301__20260531__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsSecond2026DisbersmentTotalMember_z4aMOqovCJ3i">15,000</span> shares of its common stock at a grant-date fair value of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20260301__20260531__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsFirst2026DisbersmentTotalMember_zVzpAejkZD03">$0.85</span> and <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20260301__20260531__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsSecond2026DisbersmentTotalMember_z3McS90LSTrg">$0.968</span> per share, for total consulting expenses of <span id="xdx_90B_eus-gaap--OtherExpenses_c20260301__20260531__us-gaap--StatementEquityComponentsAxis__custom--ThirdPartyConsultantsMember_zlKUoxp6vcii">$27,270</span>. During the three months ended May 31, 2026, the Company issued 15,000, 15,000 and 15,000 shares of its common stock at a grant-date fair value of $0.44, $0.28 and $1.09 per share, for total consulting expenses of $27,150.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 15, 2025, the Company entered into advisory agreements with an independent third party to provide financing and non-financing advisory services. Under the agreements, the advisor is entitled to an equity fee equal to 7% of the gross proceeds received from financing transactions. The equity fee is settled in restricted common stock, valued at the Company’s closing market price on the respective transaction dates. During the nine months ended May 31, 2026, the Company issued <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesOther_c20250901__20260531__us-gaap--StatementEquityComponentsAxis__custom--RestrictedCommonStockMember_z0m5QjgfDBYi">39,057</span> restricted common shares and recognized financing services expenses of <span id="xdx_901_eus-gaap--OtherExpenses_c20250901__20260531__us-gaap--StatementEquityComponentsAxis__custom--RestrictedCommonStockMember_zHoYZzlJ3LVa">$32,130</span> in connection with the agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 1, 2026, the Company entered into advisory agreement with an independent third party to provide strategic capital markets consulting services. Under the agreements, the initial term will commence on May 1, 2026 and will continue for a period of four months and a monthly fee of <span id="xdx_90D_eus-gaap--ProfessionalFees_c20260501__20260501__us-gaap--StatementEquityComponentsAxis__custom--IndepenentThirdPartyMember_zJGJTw4zALe3">$3,000</span> will be charged. And in addition, the Company also issue <span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNumberOfShares_iI_c20260501_zUSK9RLtoRHc">25,000</span> restricted common stocks before May 1, 2026 as additional consideration. During the three months ended May 31, 2026, the Company issued <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20260501__20260501__us-gaap--StatementEquityComponentsAxis__custom--IndepenentThirdPartyMember_zHsRJrJgw2Vb">25,000</span> shares of its common stock at a grant-date fair value of <span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20260501__us-gaap--StatementEquityComponentsAxis__custom--IndepenentThirdPartyMember_z7ykCyloyoml">$1.09</span> per share, for total consulting expenses of <span id="xdx_906_eus-gaap--CompensationExpenseExcludingCostOfGoodAndServiceSold_c20260501__20260501__us-gaap--StatementEquityComponentsAxis__custom--IndepenentThirdPartyMember_zTbS8UpzpMS5">$27,250</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 10 – STOCKHOLDERS’ EQUITY (Continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Issuance of Common shares for officer bonus and salary</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 24, 2025, the sole director, Chiyuan Deng, approved his bonus compensation for serving as the Company’s Chief Executive Officer for bonus of <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20251224__20251224__us-gaap--StatementEquityComponentsAxis__custom--ChiyuanDengCEOMember_z2ZWleBNqhTh">1,000,000</span> shares of common stock. The Company issued <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesEmployeeStockOwnershipPlan_c20251224__20251224__us-gaap--StatementEquityComponentsAxis__custom--ChiyuanDengCEOMember_ztoOfAJHhsZe">1,000,000</span> shares of the Company’s common stock valued at market price of <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20251224__20251224__us-gaap--StatementEquityComponentsAxis__custom--ChiyuanDengCEOMember_zgUZIxSvIPZ8">$0.4</span> per share for a total amount of <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan_c20251224__20251224__us-gaap--StatementEquityComponentsAxis__custom--ChiyuanDengCEOMember_zyBe7gW1O4n2">$400,000</span> to Mr. Chiyuan Deng, the Chief Executive Officer. (See Note 9).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 1, 2026, the Company entered into an Employment Agreement with Ahmad Moradi to serve as the Company's Chief Executive Officer. The agreement has an initial three-year term with automatic one-year renewals unless either party provides 90 days’ prior written notice of non-renewal. Pursuant to the agreement, Mr. Moradi is entitled to a sign-on bonus of <span id="xdx_904_eus-gaap--AccruedBonusesCurrent_iI_c20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zBV0RkYo1Qbc">$500,000</span>, payable in shares of the Company's common stock, with the number of shares to be determined based on a per-share price <span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradi2Member_zXnoxzLDBSud">$0.90</span>, as mutually agreed by the parties upon execution of the Employment Agreement. On March 1, 2026, the Company issued <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesEmployeeStockOwnershipPlan_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradi2Member_zxRZmU2qB2Ca">555,555</span> shares of the Company’s common stock valued at market price of <span id="xdx_90A_eus-gaap--AcceleratedShareRepurchasesFinalPricePaidPerShare_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradi2Member_z0qWrsPjEPB6">$0.44</span> per share for a total amount of <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradi2Member_zKTYl7O7Xbod">$244,444</span> to Mr. Moradi.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the Employment Agreement, Mr. Moradi is also entitled to an annual base salary of <span id="xdx_908_eus-gaap--SalariesAndWages_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zL4Abfa5ReM7">$144,000</span>, payable quarterly, with at least 50% payable in cash. Dr. Ahmad Moradi resigned as Chief Executive Officer on May 7, 2026. For the three months ended May 31, 2026, the Company recognized base salary expense of <span id="xdx_90D_eus-gaap--LaborAndRelatedExpense_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zSsMes2dd7Z1">$26,433</span>, of which <span id="xdx_90A_ecustom--SalariesPaidInCash_c20260301__20260301__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zUGM6LvkNI7h">$13,217</span> was paid in cash and the remaining $13,216 was settled through the issuance of <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesEmployeeStockOwnershipPlan_c20260301__20260531__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zX1yy5dQ4HLg">11,296</span> shares of the Company's common stock, based on a share price of <span id="xdx_903_eus-gaap--SaleOfStockPricePerShare_iI_c20260507__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zRqCDMw2erw4">$1.17</span> per share on May 7, 2026.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 1, 2026, the Company entered into an Employment Agreement with Chiyuan Deng to serve as the Company's President. The agreement has an initial three-year term with automatic one-year renewals unless either party provides 90 days’ prior written notice of non-renewal. Pursuant to the agreement, Mr. Deng is entitled to a sign-on bonus of <span id="xdx_901_eus-gaap--AccruedBonusesCurrent_iI_c20260301__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengMember_zSTVwxEsiqw5">$300,000</span>, payable in shares of the Company's common stock, with the number of shares to be determined based on a per-share price <span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20260301__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengMember_zXSapsryVC7f">$0.90</span>, as mutually agreed by the parties upon execution of the Employment Agreement. On March 1, 2026, the Company issued <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesEmployeeStockOwnershipPlan_c20260301__20260301__us-gaap--StatementEquityComponentsAxis__custom--ChiyuanDengMember_zReLPUBG8s69">333,333</span> shares of the Company’s common stock valued at market price of <span id="xdx_901_eus-gaap--SharesIssuedPricePerShare_iI_c20260301__us-gaap--StatementEquityComponentsAxis__custom--ChiyuanDengMember_zFzehspeUvAk">$0.44</span> per share for a total amount of <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan_c20260301__20260301__us-gaap--StatementEquityComponentsAxis__custom--ChiyuanDengMember_zTsTqTBYrKhg">$146,667</span> to Mr. Deng. (See Note 9).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 7, 2026, the Company entered into an Employment Agreement with Dzmitry Kastahorau to serve as the Company's CFO. The agreement has an initial three-year term with automatic one-year renewals unless either party provides 90 days’ prior written notice of non-renewal. Pursuant to the agreement, Mr. Kastahorau is entitled to a sign-on bonus of <span id="xdx_908_eus-gaap--AccruedBonusesCurrent_iI_c20260407__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_zUy1bxMzOAr3">$300,000</span>, payable in shares of the Company's common stock, with the number of shares to be determined based on a per-share price between <span id="xdx_904_eus-gaap--SharesIssuedPricePerShare_iI_c20260407__us-gaap--RelatedPartyTransactionAxis__custom--AhmadMoradiMember_za84qR7ieiH6">$0.90</span>, as mutually agreed by the parties upon execution of the Employment Agreement. On April 7, 2026, the Company issued <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesEmployeeStockOwnershipPlan_c20260407__20260407__us-gaap--StatementEquityComponentsAxis__custom--AhmadMoradiMember_zYRJ6gVeafQa">333,333</span> shares of the Company’s common stock valued at market price of <span id="xdx_903_eus-gaap--SharesIssuedPricePerShare_iI_c20260407__us-gaap--StatementEquityComponentsAxis__custom--AhmadMoradiMember_zqhuSjzsY6j7">$0.24</span> per share for a total amount of <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan_c20260407__20260407__us-gaap--StatementEquityComponentsAxis__custom--AhmadMoradiMember_zvOPHZW1jtGe">$80,000</span> to Mr. Kastahorau.   Mr. Dzmitry Kastahorau resigned as Chief Financial Officer on June 3, 2026. (See Note 16)</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> Issuance of common shares for private placement</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 14, 2026, the Company entered into a Stock Purchase Agreement with Chief Executive Officer, Mr. Deng for the sales of 130,000 shares and with four unrelated investors for the sales of 138,000, 160,000, 150,000, and 80,000 shares, respectively, at a purchase price of $0.86 per share. The issuances resulted in total cash proceeds of $565,880.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 3, 2026, the Company entered into a Stock Purchase Agreement with an investor for the sale of <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesOther_c20260203__20260203__us-gaap--RelatedPartyTransactionAxis__custom--SPAInvestorMember_z3WbYfa3cCJ">75,000</span> shares of its common stock at a purchase price of <span id="xdx_904_eus-gaap--SharesIssuedPricePerShare_iI_c20260203__us-gaap--RelatedPartyTransactionAxis__custom--SPAInvestorMember_ziBqfCOXQCw1">$0.88</span> per share. The Company received total cash proceeds of <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodValueOther_c20260203__20260203__us-gaap--RelatedPartyTransactionAxis__custom--SPAInvestorMember_z5xN9RdXaBT4">$66,000</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 5, 2026, the Company entered into a Stock Purchase Agreement with an investor for the sale of 160,000 shares of its common stock at a purchase price of $0.61 per share. The $97,600 was applied as a non-cash deposit toward a short-form drama series purchase agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 10 – STOCKHOLDERS’ EQUITY (Continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 8, 2026, the Company entered into a Stock Purchase Agreement with three investors for the sales of <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesOther_c20260408__20260408__us-gaap--RelatedPartyTransactionAxis__custom--SPAThreeInvestorsOneOfThreeMember_zv9dkRmeEKWj">80,000</span>, <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesOther_c20260408__20260408__us-gaap--RelatedPartyTransactionAxis__custom--SPAThreeInvestorsTwoOfThreeMember_zxxt21UPXoHa">80,000</span>, and <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodSharesOther_c20260408__20260408__us-gaap--RelatedPartyTransactionAxis__custom--SPAThreeInvestorsThreeOfThreeMember_zCYW8XQvcl4">80,000</span> shares, respectively, at a purchase price of <span id="xdx_902_eus-gaap--SharesIssuedPricePerShare_iI_c20260408__us-gaap--RelatedPartyTransactionAxis__custom--SPAThreeInvestorsOneOfThreeMember_zcwWr8D4QHg2">$0.25</span> per share. The issuances resulted in total cash proceeds of <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueOther_c20260408__20260408__us-gaap--RelatedPartyTransactionAxis__custom--SPAThreeInvestorsOneOfThreeMember_zeVdB9id6LSb">$60,000</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 28, 2026, the Company entered into a Stock Purchase Agreement with President, Mr. Deng for the sales of <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesOther_c20260428__20260428__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zVSwLdp4k7ph">110,000</span> share, at a purchase price of <span id="xdx_907_eus-gaap--SharesIssuedPricePerShare_iI_c20260428__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_z7Bo48WX9PDc">$1.01</span> per share. The issuances resulted in total cash proceeds of <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodValueOther_c20260428__20260428__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zGCVetAhKaJ6">$111,100</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had the following activities for the nine months ended May 31, 2025:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Issuance of common shares</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 21, 2025, the Company entered into a stock purchase agreement with Anyone Pictures Limited. Under the terms of this agreement, the Company issued <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20250221__20250221__us-gaap--StatementEquityComponentsAxis__custom--AnyonePicturesLimitedMember_zS2yShdjNSqa">2,000,000,000</span> (split-adjusted 1,000,000) shares of the Company’s common stock with a value of $0.00015 (split-adjusted $0.3) per share for a gross proceed of $300,000 (See Note 9). These shares were repurchased by the company at the same price on December 8, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="color: #212529">On March 14, 2025, the Company issued <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20250314__20250314__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zV5A8pIPM6Qk">2,000,000,000</span> </span>(split-adjusted 1,000,000) <span style="color: #212529">shares of the Company’s common stock valued at market price of <span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20250314__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zP00NxZniVAd">$0.0002</span></span> (split-adjusted $0.4) <span style="color: #212529">per share for a total amount of <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_c20250314__20250314__us-gaap--RelatedPartyTransactionAxis__custom--ChiyuanDengPresidentMember_zu6nvZprKVr5">$400,000</span> to Chiyuan Deng. (See Note 9).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="color: #212529">On May 15, 2025, the Company entered into another stock purchase agreement with Anyone Pictures Limited. Under the terms of this agreement, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20250515__20250515__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedSPAMember_zREchuN4vIkl">1,750,000,000</span> </span>(split-adjusted 875,000) <span style="color: #212529">shares of the Company’s common stock with a value of <span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20250515__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedSPAMember_ztzqiNwFJMSg">$0.0002</span> </span>(split-adjusted $0.4) <span style="color: #212529">per share for a gross proceed of <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_c20250515__20250515__us-gaap--RelatedPartyTransactionAxis__custom--AnyonePicturesLimitedSPAMember_zOOPRRJNZjv4">$350,000</span> (See Note 9). These shares were repurchased by the company at the same price on December 8, 2025.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026 and August 31, 2025, the Company had <span id="xdx_901_eus-gaap--CommonStockSharesIssued_iI_c20260531_zRI9yZHclaS8"><span id="xdx_904_eus-gaap--CommonStockSharesOutstanding_iI_c20260531_zmMAe9fo6Gla">5,801,681</span></span> and 8,031,266,321 (split-adjusted <span id="xdx_900_eus-gaap--CommonStockSharesIssued_iI_c20250831_zjvhCheSibX3"><span id="xdx_90C_eus-gaap--CommonStockSharesOutstanding_iI_c20250831_zZg2AEaxpkQ7">4,016,107</span></span>) shares of common stock issued and outstanding, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <b><span style="text-decoration: underline">Preferred shares</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had no preferred share activities for the nine months ended May 31, 2026 and 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">   </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026 and August 31, 2025, the Company had <span id="xdx_907_eus-gaap--PreferredStockSharesIssued_iI_c20260531__us-gaap--StatementClassOfStockAxis__us-gaap--PreferredClassAMember_zZfhHqizivn7"><span id="xdx_90D_eus-gaap--PreferredStockSharesOutstanding_iI_c20260531__us-gaap--StatementClassOfStockAxis__us-gaap--PreferredClassAMember_zB6uHGvK9zLf">100,000</span></span> and <span id="xdx_904_eus-gaap--PreferredStockSharesIssued_iI_c20250831__us-gaap--StatementClassOfStockAxis__us-gaap--PreferredClassAMember_zHRumgVgR953"><span id="xdx_905_eus-gaap--PreferredStockSharesOutstanding_iI_c20250831__us-gaap--StatementClassOfStockAxis__us-gaap--PreferredClassAMember_zvuQ2iusih45">100,000</span></span> shares of Series A preferred stock issued and outstanding, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline">Warrants</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2022 warrants</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a consideration of Common Stock Purchase Agreement signed with Alumni Capital on August 2, 2022, which resulted in Alumni Capital subscribing to a total of <span id="xdx_909_eus-gaap--CommonStockSharesSubscribedButUnissued_iI_c20220802__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapital2022WarrantMember_zImPIgEzmPs7">200,000,000</span> (split-adjusted 100,000) shares of common stock for total proceeds of <span id="xdx_90E_eus-gaap--CommonStockSharesSubscriptions_iI_c20220802__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapital2022WarrantMember_zenVSV6QYJff">$146,475</span> as of August 31, 2023, Alumni Capital was granted the right to purchase up to <span id="xdx_900_eus-gaap--IncrementalCommonSharesAttributableToConversionOfDebtSecurities_c20220802__20220802__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalMember_zz2IvkA9s4z1">50,000,000</span> (split-adjusted 25,000) shares of the Company’s common stock (the “Warrant Shares”). The warrants have an exercise price of <span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220802__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalMember_zolEB4cfVer1">$0.02</span> (split-adjusted $40) per share and an exercise period commencing on August 2, 2022 and expiring on the fifth anniversary of the issuance date. The aggregate fair value of the warrants was estimated at <span id="xdx_90E_eus-gaap--DebtInstrumentFairValue_iI_pp0p0_c20220802__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalMember_zxsWgMv1EL9">$234,000</span> using the Black-Scholes pricing model with the following assumptions: market value of underlying common shares of <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20220802__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalMember_zrH04aBov3K8">$0.0048</span> (split-adjusted $9.6), risk-free interest rate of <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20220802__20220802__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalMember_zu1FE05w1shf">2.85%</span>, expected term of <span id="xdx_90F_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_c20220802__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalMember_zl93Ag6kE8j1">5 years</span>, exercise price of <span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220802__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalMember_z4do2NHx8ybd">$0.02</span> (split-adjusted $40), expected volatility of <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate_c20220802__20220802__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalMember_zDVuoZh3wOt3">221.4%</span>, and expected future dividends of nil.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 10 – STOCKHOLDERS’ EQUITY (continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2024 warrants</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the Common Stock Purchase Agreement signed with Alumni Capital on June 13, 2024, the Company issued to Alumni a Common Stock Purchase Warrant dated the same day to purchase up to <span id="xdx_903_eus-gaap--NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityInstrumentConsiderationWarrantsIssued1_c20240613__20240613__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantMember_zQ2iIFWgWwIj">1,943,304,434</span> (split-adjusted 971,652) shares of the Company’s common stock, representing (50%) of the commitment amount of <span id="xdx_909_eus-gaap--LongTermPurchaseCommitmentAmount_pdn6_c20240613__20240613__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalAgreementTwoMember_z3EbWYDICL72">$5</span> million, at an exercise price of <span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20240613__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantMember_zmNC6HsiueY9">$0.00129</span> (split-adjusted $2.58) per share, subject to adjustments, and ending on the 5 years anniversary of the issuance date. <span id="xdx_906_eus-gaap--DebtInstrumentCallFeature_c20240613__20240613__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantMember_z4znmeJ4EW8f">The number of shares under the Common Stock Purchase Warrant is subject to adjustment based on the following formula: (i) fifty percent (50%) of the Commitment Amount, less the exercise value of all partial exercises prior to the Exercise Date, divided by (ii) the Exercise Price on the Exercise Date. The exercise price per was calculated by dividing $3,000,000 by the total number of issued and outstanding shares of common stock as of June 13, 2024. The exercise price is subject to change based on a change in the number of the outstanding shares.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrant liability is remeasured at fair value at each reporting date, with changes in fair value recognized in earnings in accordance with ASC 815-40. As of May 31, 2026, the aggregate fair value of the warrants was estimated at <span id="xdx_90B_eus-gaap--FairValueAdjustmentOfWarrants_c20250901__20260531_zSDX0ulfeCZ">$4,432,209</span>, with a loss from change in fair value of warrant liabilities of <span id="xdx_90A_ecustom--GainLossOnWarrantReclassificationToLiability_c20250901__20260531_zFAOQF4OFe6d">$3,093,820</span> recorded in earnings for the nine months ended May 31, 2026, using the <span id="xdx_905_eus-gaap--DerivativesMethodsOfAccountingHedgingDerivatives_c20250901__20260531__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantReclassifiedMember_zVJGRrMr1GOl">Monte Carlo simulation model with the following assumptions: market value of underlying common shares of $1.05; risk free rate of 4.06%</span>; expected term of <span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20260531__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantReclassifiedMember_zztQIxGNvLi2">3.04</span> years; exercise price of <span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20260531__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantReclassifiedMember_zFMoXCvl24tb">$0.52</span>; volatility of <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalWarrantReclassifiedMember_zJgAz06M3lh7">127.95%</span>; and expected future dividends of <span id="xdx_904_eus-gaap--DividendsSharebasedCompensationStock_c20250901__20260531__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantReclassifiedMember_z2WnN7zXQ5z">$0</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of August 31, 2025, the aggregate fair value of the warrants was estimated at <span id="xdx_908_eus-gaap--FairValueAdjustmentOfWarrants_c20240901__20250831_zH0GseLP2CUc">$1,338,389</span>, using the <span id="xdx_903_eus-gaap--DerivativesMethodsOfAccountingHedgingDerivatives_c20240901__20250831__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantReclassifiedMember_zeTnEDxCUmL">Black-Scholes pricing model with the following assumptions: market value of underlying common shares of $0.0002 (split-adjusted $0.44); risk free rate of 3.67%</span>; expected term of <span id="xdx_907_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20250831__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantReclassifiedMember_z1x4mdixprFb">3.79</span> years; exercise price of <span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20250831__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantReclassifiedMember_zgOO6Z7d1d6i">$0.0004</span> (split-adjusted $0.8); volatility of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate_c20240901__20250831__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalWarrantReclassifiedMember_zFpEYzl4ZGT1">402.11%</span>; and expected future dividends of <span id="xdx_90F_eus-gaap--DividendsSharebasedCompensationStock_c20240901__20250831__us-gaap--StatementEquityComponentsAxis__custom--AlumniCapitalWarrantReclassifiedMember_zka2sBYh9FBf">$0</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026, <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalWarrantReclassifiedMember_zjczC2YQO0eb">4,859,734</span> warrants in connection with two equity financings were outstanding, with weighted average remaining life of <span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--AlumniCapitalWarrantReclassifiedMember_zxVjiPUbERsl"><span style="-sec-ix-hidden: xdx2ixbrl1147">3.03 years</span></span>.    </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the status of the Company’s warrants as of May 31, 2026 and August 31, 2025 is presented below:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <table cellpadding="0" cellspacing="0" id="xdx_88C_ecustom--StockWarrantActivityTableTextBlock_zgThS5qx8AY1" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 70%; margin-right: auto" summary="xdx: Disclosure - NOTE 10 - STOCKHOLDERS' EQUITY - A Summary of Warrant Activity (Details)"> <tr style="vertical-align: bottom"> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="11" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Number of warrants</td></tr> <tr style="vertical-align: bottom"> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Original shares issued</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Original shares issued <br/>(split-adjusted)</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Anti-dilution Adjusted</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 21%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrants as of August 31, 2024</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 5%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 19%; text-align: right"><span id="xdx_906_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240831__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zP1hDFUHLffa">1,993,304,434</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 5%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 19%; text-align: right"><span id="xdx_903_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240831__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zTvptSWv7xT5">996,652</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 5%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 19%; text-align: right"><span id="xdx_901_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240831__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zykzIPech6ok"><span style="-sec-ix-hidden: xdx2ixbrl1152">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustment</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90E_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20240901__20250831__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zlYlGAs7bUT1">4,749,417,500</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90E_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20240901__20250831__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zD7HRcdImlYe">2,374,709</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_903_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20240901__20250831__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zBzIF7MOnV0l"><span style="-sec-ix-hidden: xdx2ixbrl1155">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercisable as of August 31, 2025</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_907_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20250831__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zBN5DXBJFqM">6,742,721,934</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20250831__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zLqmkLRR814j">3,371,361</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20250831__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zKPYfmkwnYOg"><span style="-sec-ix-hidden: xdx2ixbrl1158">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustment</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_904_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zvEGepl31CX3"><span style="-sec-ix-hidden: xdx2ixbrl1159">—</span>  </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_908_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zcYV119qlEYh">1,488,373</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_907_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zFeIwTw5UD6d"><span style="-sec-ix-hidden: xdx2ixbrl1161">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercisable as of May 31, 2026</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zsNLqQB6e4I3"><span style="-sec-ix-hidden: xdx2ixbrl1162">—</span>  </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_909_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zSw4bBj6L9Ga">4,859,734</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_904_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zQui4xbgGLi2"><span style="-sec-ix-hidden: xdx2ixbrl1164">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Equity Purchase Agreement</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 21, 2026, the Company entered into an equity purchase agreement with Monroe Street Capital Partners, LP (the “Investor”), pursuant to which the Company has the right, but not the obligation, to sell up to an aggregate of <span id="xdx_90C_ecustom--CommonStockIssuableUnderEquityPurchaseAgreementValue_iI_c20260221_z72ZaWEZS2Jk">$30,000,000</span> of its common stock to the Investor, subject to the terms and conditions set forth in the agreement. The expiration date is February 21, 2028</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the agreement, the Company may, from time to time, direct the Investor to purchase shares of its common stock at prices based on prevailing market prices, subject to certain limitations and conditions, including regulatory requirements and the effectiveness of a registration statement covering the resale of such shares.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is generally required to register the resale of shares issuable under the agreement, and the arrangement may result in significant dilution to existing stockholders depending on the timing and pricing of share issuances.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> 3750000000 0.001 675000 0.462 8121266321 On June 5, 2025, the Company obtained the written consent of majority stockholders to grant discretionary authority to the Board of Directors of the Company, at any time or times for a period of 12 months after the date of the written consent, to adopt an amendment to the articles of incorporation to effect a reverse split of the issued and outstanding common stock within a range of 1-for-2,000 to 1-for-20,000 4371266321 4371266321 2186107 2186107 160000000 30000000 90000000 90000000 0.0002 18000 10000000 15000 15000 0.85 0.968 27270 39057 32130 3000 25000 25000 1.09 27250 1000000 1000000 0.4 400000 500000 0.90 555555 0.44 244444 144000 26433 13217 11296 1.17 300000 0.90 333333 0.44 146667 300000 0.90 333333 0.24 80000 75000 0.88 66000 80000 80000 80000 0.25 60000 110000 1.01 111100 2000000000 2000000000 0.0002 400000 1750000000 0.0002 350000 5801681 5801681 4016107 4016107 100000 100000 100000 100000 200000000 146475 50000000 0.02 234000 0.0048 0.0285 P5Y 0.02 2.214 1943304434 5000000 0.00129 The number of shares under the Common Stock Purchase Warrant is subject to adjustment based on the following formula: (i) fifty percent (50%) of the Commitment Amount, less the exercise value of all partial exercises prior to the Exercise Date, divided by (ii) the Exercise Price on the Exercise Date. The exercise price per was calculated by dividing $3,000,000 by the total number of issued and outstanding shares of common stock as of June 13, 2024. The exercise price is subject to change based on a change in the number of the outstanding shares. 4432209 3093820 Monte Carlo simulation model with the following assumptions: market value of underlying common shares of $1.05; risk free rate of 4.06% P3Y14D 0.52 1.2795 0 1338389 Black-Scholes pricing model with the following assumptions: market value of underlying common shares of $0.0002 (split-adjusted $0.44); risk free rate of 3.67% P3Y9M14D 0.0004 4.0211 0 4859734 <table cellpadding="0" cellspacing="0" id="xdx_88C_ecustom--StockWarrantActivityTableTextBlock_zgThS5qx8AY1" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 70%; margin-right: auto" summary="xdx: Disclosure - NOTE 10 - STOCKHOLDERS' EQUITY - A Summary of Warrant Activity (Details)"> <tr style="vertical-align: bottom"> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="11" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Number of warrants</td></tr> <tr style="vertical-align: bottom"> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Original shares issued</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Original shares issued <br/>(split-adjusted)</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Anti-dilution Adjusted</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 21%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrants as of August 31, 2024</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 5%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 19%; text-align: right"><span id="xdx_906_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240831__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zP1hDFUHLffa">1,993,304,434</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 5%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 19%; text-align: right"><span id="xdx_903_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240831__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zTvptSWv7xT5">996,652</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 5%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 19%; text-align: right"><span id="xdx_901_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240831__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zykzIPech6ok"><span style="-sec-ix-hidden: xdx2ixbrl1152">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustment</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90E_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20240901__20250831__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zlYlGAs7bUT1">4,749,417,500</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90E_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20240901__20250831__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zD7HRcdImlYe">2,374,709</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_903_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20240901__20250831__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zBzIF7MOnV0l"><span style="-sec-ix-hidden: xdx2ixbrl1155">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercisable as of August 31, 2025</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_907_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20250831__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zBN5DXBJFqM">6,742,721,934</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20250831__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zLqmkLRR814j">3,371,361</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_902_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20250831__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zKPYfmkwnYOg"><span style="-sec-ix-hidden: xdx2ixbrl1158">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustment</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_904_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zvEGepl31CX3"><span style="-sec-ix-hidden: xdx2ixbrl1159">—</span>  </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_908_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zcYV119qlEYh">1,488,373</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_907_eus-gaap--AdjustmentOfWarrantsGrantedForServices_pp0p0_c20250901__20260531__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zFeIwTw5UD6d"><span style="-sec-ix-hidden: xdx2ixbrl1161">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercisable as of May 31, 2026</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--OriginalSharesIssuedMember_zsNLqQB6e4I3"><span style="-sec-ix-hidden: xdx2ixbrl1162">—</span>  </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_909_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--SplitAdjustedMember_zSw4bBj6L9Ga">4,859,734</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_904_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20260531__us-gaap--DebtInstrumentAxis__custom--AntiDilutionAdjustedMember_zQui4xbgGLi2"><span style="-sec-ix-hidden: xdx2ixbrl1164">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 1993304434 996652 4749417500 2374709 6742721934 3371361 1488373 4859734 30000000 <p id="xdx_80F_eus-gaap--ScheduleOfShareBasedCompensationEmployeeStockPurchasePlanActivityTableTextBlock_zpPzk9Bh4iI3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 11 – SHARE-BASED COMPENSATION</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 1, 2026, the Board adopted the AI Era Corp. 2026 Equity Incentive Plan (the “2026 Plan”), which reserves a maximum of 10,000,000 shares of Common Stock for issuance thereunder. The 2026 Plan provides for the grant of stock options, restricted stock, restricted stock units, performance shares, stock appreciation rights, and other equity-based awards to eligible employees, officers, directors, consultants, and other service providers of the Company and its subsidiaries. The grants to Messrs. Moradi, Deng and Kastahorau described above were made under the 2026 Plan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify">On March 1, 2026, the Company granted 1,500,000 stock options to Chiyuan Deng, the Company's President, and 2,000,000 stock options to Ahmad Moradi, the Company's Chief Executive Officer, under the Company's 2026 Equity Incentive Plan. On April 7, 2026, the Company granted 1,500,000 stock options to Dzmitry Kastahorau, the Company's Chief Financial Officer, under the same plan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify">The stock options vest over three years, with 25% vesting after the first year, 35% after the second year, and the remaining 40% after the third year, subject to the recipients' continued service and the achievement of applicable performance milestones. The awards provide for accelerated vesting upon a change in control or termination without cause, as specified in the applicable award agreements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify">Mr. Moradi resigned on May 7, 2026, and Mr. Kastahorau resigned on June 3, 2026. Accordingly, all of their unvested stock options were forfeited and cancelled.</p> <p style="font: 10pt Times New Roman PS Std,serif; margin: 8pt 0 0; text-align: justify">The following table summarizes the Company’s share option activity for the nine months ended May 31, 2026:</p> <p style="font: 10pt Times New Roman PS Std,serif; margin: 8pt 0 0; text-align: justify"></p> <table cellpadding="0" cellspacing="0" id="xdx_888_eus-gaap--ScheduleOfStockOptionsRollForwardTableTextBlock_zPkHhijMa4n" style="font: 12pt Times New Roman PS Std; margin-left: auto; border-collapse: collapse; width: 70%; margin-right: auto" summary="xdx: Disclosure - NOTE 11 - SHARE BASED COMPENSATION - Share Option Activity (Details)"> <tr style="vertical-align: bottom"> <td colspan="2" style="text-align: left"> </td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 9pt; font-weight: bold; text-align: center">Number of <br/> Options</td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 9pt; font-weight: bold; text-align: center">Weighted <br/> Average <br/> Exercise <br/> Price</td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 9pt; font-weight: bold; text-align: center">Weighted <br/> Average <br/> Remaining <br/> Life in Years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Opening balance, August 31, 2025</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20250831_zzMapVwM02fh"><span style="-sec-ix-hidden: xdx2ixbrl1170">—</span></span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20250831_zWYm7vKgG8jf"><span style="-sec-ix-hidden: xdx2ixbrl1171">—</span></span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Granted</span></td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 5%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20250901__20260531_zsHsqrCtT0d3">5,000,000</span></td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue_c20250901__20260531_zkMtbxfyp6g4"><span style="-sec-ix-hidden: xdx2ixbrl1173">—</span></span>  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Cancelled</span></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(<span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20250901__20260531_ztIWt6QWahMh">3,500,000</span></td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageIntrinsicValue_c20250901__20260531_zqYx2uRkpsYb"><span style="-sec-ix-hidden: xdx2ixbrl1175">—</span></span>  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Exercised</span></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_c20250901__20260531_zIzjGrZqdvIh"><span style="-sec-ix-hidden: xdx2ixbrl1176">—</span></span>  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iI_c20250831_zN75ZQDSUP02"><span style="-sec-ix-hidden: xdx2ixbrl1177">—</span></span>  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Ending balance, May 31, 2026</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20260531_zY6Ky7DYh3Nj">1,500,000</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20260531_zbKNLzjZJHOc">0.44</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_904_ecustom--OptionsWeightedAverageRemainingLifeInYears_iI_dtY_c20260531_zfHFEHP5hwn1">6.75</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Exercisable, May 31, 2026</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20260531_ze9zZtMKmnN9"><span style="-sec-ix-hidden: xdx2ixbrl1181">—</span></span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_c20260531_zTedkJqsjYl3"><span style="-sec-ix-hidden: xdx2ixbrl1182">—</span></span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b></b></p> <p style="font: 10pt Times New Roman PS Std,serif; margin: 8pt 0 0; text-align: justify">The Black-Scholes pricing model was applied in determining the estimated fair value of the options granted. The model requires the input of subjective assumptions. The following table presents the assumptions used to estimate the fair values of the share options granted for the nine months ended May 31, 2026:</p> <table cellpadding="0" cellspacing="0" id="xdx_885_ecustom--EstimatedFairValueOfOptionsGranted_zQiL05FfDkqj" style="font: 10pt Times New Roman PS Std; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 11 - SHARE BASED COMPENSATION - Estimated Fair Value of Options Granted (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; text-indent: -10pt; padding-left: 10pt">Expected volatility</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_c20250901__20260531_zq7lRQV48ICa">199.0</span></td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20250901__20260531_zmXYHlBu3y12">3.72</span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Estimated forfeiture rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_ecustom--EstimatedForfeitureRateOfOptions_c20250901__20260531_zIWCGErMZ4c4">0</span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt"><span id="xdx_902_ecustom--DividendYieldOfOptions_c20250901__20260531_zdPyUVsAh6c1"><span style="-sec-ix-hidden: xdx2ixbrl1188">—</span></span> </span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Fair value of the underlying common stocks of the Company</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_90E_ecustom--FairValueOfUnderlyingCommonStock_c20250901__20260531_zvQTCM9yOt0c">0.44</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Fair value of the stock option</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1_c20250901__20260531_zgVACtza78q1">654,599</span></td><td style="text-align: left"> </td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"></p> <p style="font: 10pt Times New Roman PS Std,serif; margin: 8pt 0 0; text-align: justify">The expected term was estimated using the simplified method. The expected volatility was estimated based on the historical volatility of the companies with a time horizon close to the contract life of the Company’s options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the stock-based award. Expected dividend yield is zero as the Company has never declared or paid any cash dividends on its shares, and the Company does not anticipate any dividend payments in the foreseeable future. For the nine months ended May 31, 2026 and 2025, the total share-based compensation expenses were <span id="xdx_901_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20250901__20260531_zd5nW2uFIMGb">$41,110</span> and <span id="xdx_906_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20240901__20250531_zRteOofsAwU">$0</span>, respectively. The Company did not grant any share options during the nine months ended May 31, 2025.</p> <p style="font: 10pt Times New Roman PS Std,serif; margin: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman PS Std,serif; margin: 8pt 0 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <table cellpadding="0" cellspacing="0" id="xdx_888_eus-gaap--ScheduleOfStockOptionsRollForwardTableTextBlock_zPkHhijMa4n" style="font: 12pt Times New Roman PS Std; margin-left: auto; border-collapse: collapse; width: 70%; margin-right: auto" summary="xdx: Disclosure - NOTE 11 - SHARE BASED COMPENSATION - Share Option Activity (Details)"> <tr style="vertical-align: bottom"> <td colspan="2" style="text-align: left"> </td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 9pt; font-weight: bold; text-align: center">Number of <br/> Options</td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 9pt; font-weight: bold; text-align: center">Weighted <br/> Average <br/> Exercise <br/> Price</td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 9pt; font-weight: bold; text-align: center">Weighted <br/> Average <br/> Remaining <br/> Life in Years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Opening balance, August 31, 2025</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20250831_zzMapVwM02fh"><span style="-sec-ix-hidden: xdx2ixbrl1170">—</span></span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20250831_zWYm7vKgG8jf"><span style="-sec-ix-hidden: xdx2ixbrl1171">—</span></span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Granted</span></td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 5%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20250901__20260531_zsHsqrCtT0d3">5,000,000</span></td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue_c20250901__20260531_zkMtbxfyp6g4"><span style="-sec-ix-hidden: xdx2ixbrl1173">—</span></span>  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Cancelled</span></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(<span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20250901__20260531_ztIWt6QWahMh">3,500,000</span></td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageIntrinsicValue_c20250901__20260531_zqYx2uRkpsYb"><span style="-sec-ix-hidden: xdx2ixbrl1175">—</span></span>  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Exercised</span></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_c20250901__20260531_zIzjGrZqdvIh"><span style="-sec-ix-hidden: xdx2ixbrl1176">—</span></span>  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iI_c20250831_zN75ZQDSUP02"><span style="-sec-ix-hidden: xdx2ixbrl1177">—</span></span>  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Ending balance, May 31, 2026</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20260531_zY6Ky7DYh3Nj">1,500,000</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20260531_zbKNLzjZJHOc">0.44</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_904_ecustom--OptionsWeightedAverageRemainingLifeInYears_iI_dtY_c20260531_zfHFEHP5hwn1">6.75</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt">Exercisable, May 31, 2026</span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20260531_ze9zZtMKmnN9"><span style="-sec-ix-hidden: xdx2ixbrl1181">—</span></span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_c20260531_zTedkJqsjYl3"><span style="-sec-ix-hidden: xdx2ixbrl1182">—</span></span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table> 5000000 3500000 1500000 0.44 P6Y9M <table cellpadding="0" cellspacing="0" id="xdx_885_ecustom--EstimatedFairValueOfOptionsGranted_zQiL05FfDkqj" style="font: 10pt Times New Roman PS Std; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 11 - SHARE BASED COMPENSATION - Estimated Fair Value of Options Granted (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; text-indent: -10pt; padding-left: 10pt">Expected volatility</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_c20250901__20260531_zq7lRQV48ICa">199.0</span></td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20250901__20260531_zmXYHlBu3y12">3.72</span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Estimated forfeiture rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_ecustom--EstimatedForfeitureRateOfOptions_c20250901__20260531_zIWCGErMZ4c4">0</span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman PS Std,serif; font-size: 10pt"><span id="xdx_902_ecustom--DividendYieldOfOptions_c20250901__20260531_zdPyUVsAh6c1"><span style="-sec-ix-hidden: xdx2ixbrl1188">—</span></span> </span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Fair value of the underlying common stocks of the Company</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_90E_ecustom--FairValueOfUnderlyingCommonStock_c20250901__20260531_zvQTCM9yOt0c">0.44</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Fair value of the stock option</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1_c20250901__20260531_zgVACtza78q1">654,599</span></td><td style="text-align: left"> </td></tr> </table> 199.0 3.72 0 0.44 654599 41110 0 <p id="xdx_807_eus-gaap--IncomeTaxDisclosureTextBlock_zI0yPMtzFEji" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 12 – INCOME TAXES</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company and its fully owned subsidiaries, AB Cinemas NY, Inc and AI+ Hubs Corp, were incorporated in the United States and are subject to a statutory income tax rate at <span id="xdx_907_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_uPure_c20250901__20260531_zhvkfespNaH4">21%</span>. The Company’s fully owned subsidiary, App Board Limited, was registered in Hong Kong and is subject to a statutory income tax rate at <span id="xdx_90B_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_uPure_c20250901__20260531__us-gaap--IncomeTaxAuthorityAxis__custom--HongKongTaxRateMember_zEmoTj43iGKe">16.5%</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026 and August 31, 2025, the components of net deferred tax assets, including a valuation allowance, were as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_886_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_z4vXkzmq3EHd" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 12 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>May 31, </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2026</b> </p></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Deferred tax asset attributable to:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: justify">Net operating loss carry over</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_905_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_pp0p0_c20260531_zV1Cj964T5i4">1,314,655</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_908_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_pp0p0_c20250831_zRk47rcG9U4e">1,580,516</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Less: valuation allowance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_909_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_pp0p0_c20260531_zJUA0sfdi2q5">1,314,655</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_908_eus-gaap--DeferredTaxAssetsValuationAllowance_pp0p0_c20250831_zWg6AI7D3lwe">1,580,516</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Net deferred tax asset</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_907_eus-gaap--DeferredTaxAssetsNet_iI_pp0p0_c20260531_zhgDAcDl7zWh"><span style="-sec-ix-hidden: xdx2ixbrl1203">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_904_eus-gaap--DeferredTaxAssetsNet_pp0p0_c20250831_ziwisjLVRBsb"><span style="-sec-ix-hidden: xdx2ixbrl1204">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the nine months ended May 31, 2026 and 2025, the Company and its subsidiaries generated net loss and net income respectively. However, despite the current profitability, management believes that the Company’s earnings are not yet stable or sustainable. The Company also continues to experience negative working capital and has an accumulated deficit.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In assessing the realizability of deferred tax assets, management evaluates whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which the related temporary differences become deductible. In making this assessment, management considers the scheduled reversal of deferred tax items, projected future taxable income, and feasible tax planning strategies.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result, management determined that it is more likely than not that the Company’s deferred tax assets will not be realized, after considering the potential utilization of existing net operating loss (“NOL”) carryforwards. As of May 31, 2026 and August 31, 2025, the valuation allowance for deferred tax assets was <span id="xdx_902_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_pp0p0_c20260531_zZgzi3uOgOmh">$1,314,655</span> and <span id="xdx_90F_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_pp0p0_c20250831_zN0TnHnhaPnd">$1,580,516</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Reconciliation between the statutory rate and the effective tax rate is as follows for the nine months ended May 31, 2026 and 2025:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p> <table cellpadding="0" cellspacing="0" id="xdx_882_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zY5rHZSw2Gy4" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 12 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details)"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_496_20250901__20260531_zwDjnAFWFn21"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_493_20230901__20240831_zvEbDGA08w7g"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td></tr> <tr id="xdx_408_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_dp_zKGItyxioMRj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: justify">Federal statutory tax rate</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">21</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">%</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">21</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">%</td></tr> <tr id="xdx_40A_ecustom--EffectOfPermanentDifference_z7TuohrFZUPi" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Effect of permanent difference</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(14</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)%</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1214">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">%</td></tr> <tr id="xdx_404_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_iN_dpi_ziqIl85V0WGe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Change in valuation allowance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(7</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)%</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(21</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)%</td></tr> <tr id="xdx_403_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_dp_zqMgW610y9H1" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Effective tax rate</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">0</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">%</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">0</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">%</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended May 31, 2026, the Company and its subsidiaries generated net losses. As a result, the Company and its subsidiaries did not incur any income tax for the nine months ended May 31, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended May 31, 2025, the Company and its subsidiaries generated net income. However, due to the fact that the Company had net operating loss carried forward, the Company and its subsidiaries did not incur any income tax for the nine months ended May 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> 0.21 0.165 <table cellpadding="0" cellspacing="0" id="xdx_886_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_z4vXkzmq3EHd" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 12 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>May 31, </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2026</b> </p></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">August 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Deferred tax asset attributable to:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: justify">Net operating loss carry over</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_905_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_pp0p0_c20260531_zV1Cj964T5i4">1,314,655</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span id="xdx_908_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_pp0p0_c20250831_zRk47rcG9U4e">1,580,516</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Less: valuation allowance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_909_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_pp0p0_c20260531_zJUA0sfdi2q5">1,314,655</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(<span id="xdx_908_eus-gaap--DeferredTaxAssetsValuationAllowance_pp0p0_c20250831_zWg6AI7D3lwe">1,580,516</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Net deferred tax asset</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_907_eus-gaap--DeferredTaxAssetsNet_iI_pp0p0_c20260531_zhgDAcDl7zWh"><span style="-sec-ix-hidden: xdx2ixbrl1203">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span id="xdx_904_eus-gaap--DeferredTaxAssetsNet_pp0p0_c20250831_ziwisjLVRBsb"><span style="-sec-ix-hidden: xdx2ixbrl1204">—</span></span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> 1314655 1580516 1314655 1580516 1314655 1580516 <table cellpadding="0" cellspacing="0" id="xdx_882_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zY5rHZSw2Gy4" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto" summary="xdx: Disclosure - NOTE 12 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details)"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_496_20250901__20260531_zwDjnAFWFn21"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_493_20230901__20240831_zvEbDGA08w7g"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td></tr> <tr id="xdx_408_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_dp_zKGItyxioMRj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 68%; text-align: justify">Federal statutory tax rate</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">21</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">%</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">21</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">%</td></tr> <tr id="xdx_40A_ecustom--EffectOfPermanentDifference_z7TuohrFZUPi" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Effect of permanent difference</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(14</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)%</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1214">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">%</td></tr> <tr id="xdx_404_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_iN_dpi_ziqIl85V0WGe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Change in valuation allowance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(7</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)%</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(21</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)%</td></tr> <tr id="xdx_403_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_dp_zqMgW610y9H1" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Effective tax rate</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">0</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">%</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">0</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">%</td></tr> </table> 0.21 0.21 -14 0.07 0.21 0 0 <p id="xdx_80E_eus-gaap--ConcentrationRiskDisclosureTextBlock_z7bMfUI0NjDd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 13 – CONCENTRATION RISK</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Concentration </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the nine months ended May 31, 2026, <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--RevenueCustomerOneOfFiveMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenueMember_zsqu6RizcLic">25%</span>, <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--RevenueCustomerTwoOfFiveMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenueMember_zd4BTzgjlQR">23%</span>, <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--RevenueCustomerThreeOfFiveMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenueMember_zkyPFj1JhCbk">16%</span>, <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--RevenueCustomerFourOfFiveMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenueMember_zbGRF8GCznDl">15%</span> and <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--RevenueCustomerFiveOfFiveMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenueMember_zZD5sTyKDqvg">10%</span> of the total revenue were generated from five customers, respectively. For the nine months ended May 31, 2025, <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_uPure_c20240901__20250531__us-gaap--ConcentrationRiskByTypeAxis__custom--RevenueCustomerOneOfThreeMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenueMember_z73P2ESzZCq1">40%</span>, <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_uPure_c20240901__20250531__us-gaap--ConcentrationRiskByTypeAxis__custom--RevenueCustomerTwoOfThreeMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenueMember_z2RnhUTDk4Y9">33%</span> and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_uPure_c20240901__20250531__us-gaap--ConcentrationRiskByTypeAxis__custom--RevenueCustomerThreeOfThreeMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenueMember_zQ7jepkHXhf">20%</span> of the total revenue were generated from three customers, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of May 31, 2026, <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--AccountsReceivableCustomerOneOfTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--AccountsReceivableTotalMember_z0DlS6YYjzGb">70%</span> and <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--AccountsReceivableCustomerTwoOfTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--AccountsReceivableTotalMember_z4ZUmSS4gklh">29%</span> of the Company’s accounts receivable balances were receivable from two customers, respectively. As of August 31, 2025, <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250831__20250831__us-gaap--ConcentrationRiskByTypeAxis__custom--AccountsReceivableCustomerOneOfThreeMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--AccountsReceivableTotalMember_zTVaN6PobIH">50%</span>, <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250831__20250831__us-gaap--ConcentrationRiskByTypeAxis__custom--AccountsReceivableCustomerTwoOfThreeMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--AccountsReceivableTotalMember_z5loukwaSBfc">28%</span> and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250831__20250831__us-gaap--ConcentrationRiskByTypeAxis__custom--AccountsReceivableCustomerThreeOfThreeMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--AccountsReceivableTotalMember_zwZoMnsDON75">17%</span> of the Company’s accounts receivable balances were receivable from three customers, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For nine months ended May 31, 2026, <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--SupplierOneOfTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--SupplierTotalMember_z51ChfYye623">74%</span> and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_uPure_c20250901__20260531__us-gaap--ConcentrationRiskByTypeAxis__custom--SupplierTwoOfTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--SupplierTotalMember_zIdtnKnSB1Mh">15%</span> of the total purchase was from two suppliers. For the nine months ended May 31, 2025, <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_uPure_c20240901__20250531__us-gaap--ConcentrationRiskByTypeAxis__custom--SupplierOneofTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--SupplierTotalMember_z0xNgjyWnav">79%</span> and <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_uPure_c20240901__20250531__us-gaap--ConcentrationRiskByTypeAxis__custom--SupplierTwoOfTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--SupplierTotalMember_zymuSa7Xc27h">15%</span> of the total purchase was from two suppliers.  Management monitors the relationship with this supplier and believes that alternative sources are available if necessary, although any disruption could temporarily affect the Company’s ability to acquire new content.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Credit risk</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash deposits. In the United States, deposits at each financial institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to <span id="xdx_90C_eus-gaap--CashFDICInsuredAmount_iI_c20260531_zrf9TTQkHVq6">$250,000</span> per depositor. As of May 31, 2026 and August 31, 2025, the Company maintained cash balances of <span id="xdx_904_eus-gaap--FairValueConcentrationOfRiskCashAndCashEquivalents_iI_c20260531_zWJ2fwp0tJt9">$115,836</span> and <span id="xdx_90B_eus-gaap--FairValueConcentrationOfRiskCashAndCashEquivalents_iI_c20250831_zQm699hTLJSi">$13,691</span>, respectively, at financial institutions located in the United States. Management believes that these financial institutions are of high credit quality and continually monitors their creditworthiness to mitigate potential risks of loss.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 0.25 0.23 0.16 0.15 0.10 0.40 0.33 0.20 0.70 0.29 0.50 0.28 0.17 0.74 0.15 0.79 0.15 250000 115836 13691 <p id="xdx_802_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_z2k4kF3adjX8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 14 – COMMITMENTS AND CONTINGENCIES</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Contingencies</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. There is no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of its operations and there are no proceedings in which any of the Company’s directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Company’s interest.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Operating leases</i></b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has a lease agreement to rent movie theatre with a third-party vendor as of May 31, 2026   date and the expiration date is 1 February, 2027. (See Note 6) </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 8pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STTEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p id="xdx_807_eus-gaap--SegmentReportingDisclosureTextBlock_z5hRj9AldaU8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 15 – SEGMENT INFORMATION</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows FASB ASC Topic 280, <i>Segment Reporting</i>, as amended by ASU 2023-07. The Company’s Chief Operating Decision Maker (“CODM”), Mr. Deng, the Chief Executive Officer, is responsible for evaluating operating results and allocating resources among the Company’s operating segments. As a result of strategic business realignment, the Company has identified two reportable segments: the Copyrights and Licensing (“IP”) segment and the Cinema segment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents summarized financial information by reportable segment for the nine months ended May 31, 2026 and 2025, respectively. </p> <p id="xdx_895_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zf0TZTPuWX7i" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 8pt"><span id="xdx_8BC_z1aGttpfA55c" style="display: none">NOTE 14 - SEGMENT INFORMATION - Financial Information by Segment (Details)</span></span></td> <td> </td> <td> </td> <td id="xdx_491_20250901__20260531__us-gaap--StatementBusinessSegmentsAxis__custom--IPSegmentMember_zSlgZmxiXZy8"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_491_20250201__20250531__us-gaap--StatementBusinessSegmentsAxis__custom--IPSegmentMember_zYO8V2VYbeB2"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20250901__20260531__us-gaap--StatementBusinessSegmentsAxis__custom--CinemaSegmentMember_zX6ETVjhxeF4"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_494_20240901__20250531__us-gaap--StatementBusinessSegmentsAxis__custom--CinemaSegmentMember_zG6xjpwsMuEj"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_494_20250901__20260531_zmQCPWhZ8IL6"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49E_20240901__20250531_z23S1WO0ZXC5"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">IP Segment</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Cinema Segment</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_403_eus-gaap--Revenues_zGPIpu5awqjd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%">Revenue</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">6,991,673</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">3,308,128</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">176,824</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">221,954</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">7,168,497</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">3,530,082</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CostsAndExpenses_i01_maOEzI25_zMuD2j2Gbruj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Costs of copyrights sold</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1257">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,510,921</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1259">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1260">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1261">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,510,921</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CostOfRevenue_z1HSIqO6Uygd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Theatre operating costs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1264">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1265">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">85,681</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">118,598</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">85,681</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">118,598</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DepreciationAndAmortization_ztOUB90ITq9b" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Depreciation and Amortization</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,468,840</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">850,996</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1273">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1274">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,468,840</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">850,996</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--InterestExpenseDebt_zz74y4gcm543" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Interest expense</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">209,964</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">40,041</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1280">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1281">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">209,964</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">40,041</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ProceedsFromDivestitureOfBusinessesAndInterestsInAffiliates_zKt5u4LZNb38" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Segment assets</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">10,006,176</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,368,028</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">122,293</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">109,704</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">10,128,469</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,477,732</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--SegmentIncomeLoss_zLmUTi5DSUg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Segment (loss) income</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,578,386</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">186,354</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(150,433</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(146,703</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"></p> <p style="margin-top: 0; margin-bottom: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents summarized financial information by reportable segment for the three months ended May 31, 2026 and 2025, respectively. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_498_20260301__20260531__us-gaap--StatementBusinessSegmentsAxis__custom--IPSegmentMember_zLigBHV5bBX5"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20250301__20250531__us-gaap--StatementBusinessSegmentsAxis__custom--IPSegmentMember_zbH1sfmVu1Q8"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_491_20260301__20260531__us-gaap--StatementBusinessSegmentsAxis__custom--CinemaSegmentMember_zPr0RY6C0xm4"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_495_20250301__20250531__us-gaap--StatementBusinessSegmentsAxis__custom--CinemaSegmentMember_zJ5gHoZ1TGna"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20260301__20260531_zrIYOLcvGpMf"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_496_20250301__20250531_zZlSvJ3ZHk16"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">IP Segment</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Cinema Segment</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_403_eus-gaap--Revenues_z3q9dkkRJwma" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%">Revenue</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">1,438,820</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">1,786,100</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">63,019</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">59,089</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">1,501,839</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">1,845,189</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CostsAndExpenses_i01_maOEzI25_zvitUkhOsIe9" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Costs of copyrights sold</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1306">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">780,871</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1308">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1309">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1310">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">780,871</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CostOfRevenue_zBdVuEF192e3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Theatre operating costs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1313">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1314">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">35,849</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">25,995</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">35,849</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">25,995</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DepreciationAndAmortization_zTK6LDTlZtBl" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Depreciation and Amortization</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,445,886</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">595,278</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1322">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1323">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,445,886</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">595,278</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--InterestExpenseDebt_z8Dq30Hgjnod" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Interest expense</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">147,863</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">36,468</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1329">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1330">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">147,863</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">36,468</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ProceedsFromDivestitureOfBusinessesAndInterestsInAffiliates_z0Rajz1w4Hv6" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Segment assets</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">10,006,176</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,368,028</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">122,293</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">109,704</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">10,128,469</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,477,732</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--SegmentIncomeLoss_zZGvwu5t9fdf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Segment (loss) income</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,276,593</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(75,106</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(52,404</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(50,138</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> </table> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STTEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p> <p id="xdx_895_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zf0TZTPuWX7i" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 8pt"><span id="xdx_8BC_z1aGttpfA55c" style="display: none">NOTE 14 - SEGMENT INFORMATION - Financial Information by Segment (Details)</span></span></td> <td> </td> <td> </td> <td id="xdx_491_20250901__20260531__us-gaap--StatementBusinessSegmentsAxis__custom--IPSegmentMember_zSlgZmxiXZy8"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_491_20250201__20250531__us-gaap--StatementBusinessSegmentsAxis__custom--IPSegmentMember_zYO8V2VYbeB2"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20250901__20260531__us-gaap--StatementBusinessSegmentsAxis__custom--CinemaSegmentMember_zX6ETVjhxeF4"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_494_20240901__20250531__us-gaap--StatementBusinessSegmentsAxis__custom--CinemaSegmentMember_zG6xjpwsMuEj"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_494_20250901__20260531_zmQCPWhZ8IL6"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_49E_20240901__20250531_z23S1WO0ZXC5"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">IP Segment</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Cinema Segment</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine months ended</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_403_eus-gaap--Revenues_zGPIpu5awqjd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%">Revenue</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">6,991,673</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">3,308,128</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">176,824</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">221,954</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">7,168,497</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">3,530,082</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CostsAndExpenses_i01_maOEzI25_zMuD2j2Gbruj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Costs of copyrights sold</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1257">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,510,921</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1259">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1260">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1261">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,510,921</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CostOfRevenue_z1HSIqO6Uygd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Theatre operating costs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1264">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1265">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">85,681</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">118,598</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">85,681</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">118,598</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DepreciationAndAmortization_ztOUB90ITq9b" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Depreciation and Amortization</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,468,840</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">850,996</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1273">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1274">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,468,840</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">850,996</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--InterestExpenseDebt_zz74y4gcm543" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Interest expense</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">209,964</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">40,041</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1280">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1281">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">209,964</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">40,041</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ProceedsFromDivestitureOfBusinessesAndInterestsInAffiliates_zKt5u4LZNb38" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Segment assets</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">10,006,176</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,368,028</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">122,293</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">109,704</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">10,128,469</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,477,732</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--SegmentIncomeLoss_zLmUTi5DSUg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Segment (loss) income</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,578,386</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">186,354</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(150,433</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(146,703</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,728,819</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">39,651</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"></p> <p style="margin-top: 0; margin-bottom: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents summarized financial information by reportable segment for the three months ended May 31, 2026 and 2025, respectively. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr> <td> </td> <td> </td> <td> </td> <td id="xdx_498_20260301__20260531__us-gaap--StatementBusinessSegmentsAxis__custom--IPSegmentMember_zLigBHV5bBX5"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20250301__20250531__us-gaap--StatementBusinessSegmentsAxis__custom--IPSegmentMember_zbH1sfmVu1Q8"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_491_20260301__20260531__us-gaap--StatementBusinessSegmentsAxis__custom--CinemaSegmentMember_zPr0RY6C0xm4"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_495_20250301__20250531__us-gaap--StatementBusinessSegmentsAxis__custom--CinemaSegmentMember_zJ5gHoZ1TGna"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_497_20260301__20260531_zrIYOLcvGpMf"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_496_20250301__20250531_zZlSvJ3ZHk16"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">IP Segment</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Cinema Segment</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="7" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">May 31, 2025</td></tr> <tr id="xdx_403_eus-gaap--Revenues_z3q9dkkRJwma" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%">Revenue</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">1,438,820</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">1,786,100</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">63,019</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">59,089</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">1,501,839</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right">1,845,189</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CostsAndExpenses_i01_maOEzI25_zvitUkhOsIe9" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Costs of copyrights sold</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1306">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">780,871</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1308">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1309">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1310">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">780,871</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CostOfRevenue_zBdVuEF192e3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Theatre operating costs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1313">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1314">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">35,849</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">25,995</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">35,849</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">25,995</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DepreciationAndAmortization_zTK6LDTlZtBl" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Depreciation and Amortization</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,445,886</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">595,278</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1322">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1323">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,445,886</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">595,278</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--InterestExpenseDebt_z8Dq30Hgjnod" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Interest expense</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">147,863</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">36,468</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1329">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1330">—</span>  </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">147,863</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">36,468</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ProceedsFromDivestitureOfBusinessesAndInterestsInAffiliates_z0Rajz1w4Hv6" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Segment assets</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">10,006,176</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,368,028</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">122,293</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">109,704</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">10,128,469</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,477,732</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--SegmentIncomeLoss_zZGvwu5t9fdf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Segment (loss) income</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,276,593</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(75,106</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(52,404</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(50,138</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,328,997</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(125,244</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> </table> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.)</b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STTEMENTS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p> 6991673 3308128 176824 221954 7168497 3530082 1510921 1510921 85681 118598 85681 118598 3468840 850996 3468840 850996 209964 40041 209964 40041 10006176 6368028 122293 109704 10128469 6477732 -1578386 186354 -150433 -146703 -1728819 39651 1438820 1786100 63019 59089 1501839 1845189 780871 780871 35849 25995 35849 25995 1445886 595278 1445886 595278 147863 36468 147863 36468 10006176 6368028 122293 109704 10128469 6477732 -4276593 -75106 -52404 -50138 -4328997 -125244 <p id="xdx_806_eus-gaap--SubsequentEventsTextBlock_zoO7go7WTWhi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 16 – SUBSEQUENT EVENTS</b>  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Management Changes</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529">On June 3, 2026, Dzmitry Kastahorau notified AI Era Corp. (the “Company”) of his resignation as Chief Financial Officer of the Company, effective immediately on June 3, 2026. The Company has accepted Mr. Kastahorau’s resignation. Mr. Kastahorau’s resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Issuance of common shares for private placement</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 24, 2026, the Company entered into a Stock Purchase Agreement with two investors for the sale of 54,000 and 82,000 shares of its common stock at a purchase price of $0.76 per share. The Company received total cash proceeds of $41,040 and $62,320.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>