Financial Analysis

NOTE 12 COMMITMENTS AND CONTINGENCIES Contingencies 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 Companys directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Companys interest. Operating leases The Company has a lease agreement to rent movie theatre with a third-party vendor as of August 31 , 2025. (See Note 6) AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

August 31, 2025 August 31, 2024 Theater admissions $ 187,620 $ 276,428 Food and beverage sales 78,512 128,512 Theater advertisement 24,928 27,072 Theater revenue 291,060 432,012 Licensing for broadcast and download 1,599,920 Licensing for NFT platform 435,000 570,000 Embedded marketing service 1,298,283 507,508 Consulting services 270,000 354,147 Service revenue 3,603,203 1,431,655 Copyrights sales 2,474,300 1,436,800 Total revenue $ 6,368,563 $ 3,300,467 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 10 INCOME TAXES 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 21% . The Companys fully owned subsidiary, App Board Limited, was registered in Hong Kong and is subject to a statutory income tax rate at 16.5% . As of August 31 , 2025 and 2024, the components of net deferred tax assets, including a valuation allowance, were as follows: August 31, 2025 August 31, 2024 Deferred tax asset attributable to: Net operating loss carryforwards $ 1,580,516 $ 1,963,323 Less: valuation allowance ( 1,580,516 ) ( 1,963,323 ) Net deferred tax asset $ $ For the years ended August 31, 2025 and 2024, the Company and its subsidiaries generated net income. However, despite the current profitability, management believes that the Companys earnings are not yet stable or sustainable. The Company also continues to experience negative working capital and has an accumulated deficit. 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 feasib …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 6 LEASES In September 2023, the Company entered into a one month lease with a third party for an office space in Hong Kong, incurring a monthly rent of $766 . The lease was terminated on November 30, 2023. On October 21, 2021, the Company signed a lease agreement to lease the Mt. Kisco Theatre, a movie theater, for five years plus the free rent period which commences four months from the lease commencement date. The theater consists of approximately 8,375 square feet, and the total monthly rent is $14,366 for the first two years, and $20,648 from the third year including real estate related taxes and landlords insurance. On January 31, 2024, the end of the initial two-year rental period, the landlord agreed to continue to receive $14,366 from February 2024 to August 2025. The reduced rental payments are accounted for as a rent concession and recognized in general and administrative expenses. Total lease expense for the years ended August 31, 2025 and 2024 was $128,572 and $163,529 , respectively. All leases are on a fixed payment basis. The Companys lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following is a schedule of maturities of lease liabilities: Twelve months ending August 31, 2026 $ 255,412 2027 107,276 Total future minimum lease payments 362,688 Less: imputed interest ( 1,805 ) Total $ 360,883 AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS …

LeasesOfLesseeDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements 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 ASUs scope are permitted to early adopt the ASU. The Company is currently evaluating the impact of this standard on it …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 8 RELATED PARTY TRANSACTIONS Related party loans and line of credit agreements In support of the Companys 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. Mr. Chiyuan Deng, the Chief Executive Officer On June 1, 2023, Mr. Chiyuan Deng, the Companys 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 $1,500,000 , which included the existing shareholder loan balance of $697,281 . The line of credit is non-interest bearing and due on demand . For the year ended August 31, 2025, Mr. Deng provided additional loans totaling $4,324,644 to meet the Companys working capital needs. As of August 31, 2025, the Company had repaid $3,895,788 . For the year ended August 31, 2024, Chiyuan Deng provided additional loans totaling $794,865 for its working capital needs. As of August 31, 2024, the Company has repaid $971,365 . The loans are non-interest bearing and due on demand. The Company recognized imputed interest at 5% per annum on the outstanding balances as of August 31, 2025 and 2024. As of August 31, 2025 and 2024, the outstanding loan balances due to Mr. Deng were $622,030 and $193,174 , respectively. Anyone Pictures Limited On March 1, 2025, the Company entered into a line of credit agreement …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 13 SEGMENT INFORMATION The Company follows FASB ASC Topic 280, Segment Reporting , as amended by ASU 2023-07. The Companys Chief Operating Decision Maker (CODM), Mr. Deng, the Chief Executive Officer, is responsible for evaluating operating results and allocating resources among the Companys 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. The following table presents summarized financial information by reportable segment for the years ended August 31, 2025 and 2024, respectively. NOTE 13 - SEGMENT INFORMATION - Summary of Information by Segment IP Segment Cinema Segment Total Year ended Year ended Year ended August 31 August 31 August 31 2025 2024 2025 2024 2025 2024 Revenue $ 6,077,503 $ 2,868,455 $ 291,060 $ 432,012 $ 6,368,563 $ 3,300,467 Cost of copyrights sold 1,644,893 119,517 1,644,893 119,517 Operating costs 155,097 189,500 155,097 189,500 Depreciation and Amortization 1,559,556 1,664,338 1,559,556 1,664,338 Interest expense 71,020 31,588 71,020 31,588 Segment assets 6,637,538 2,257,669 26,618 91,501 6,664,156 2,349,170 Segment income (loss) $ 1,658,964 $ 671,457 $ (203,516 ) $ (129,126 ) $ 1,455,448 $ 542,331 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The financial statements have been prepared on a consolidated basis, with the Companys wholly owned subsidiaries, App Board Limited, AB Cinemas NY, Inc and AI+ Hubs Corp. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates 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. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Accounts receivable 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 …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 9 STOCKHOLDERS EQUITY Common shares The Company had the following activities for the year ended August 31, 2025: Issuance of common shares 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 2,000,000,000 shares of the Companys common stock at a value of $0.00015 per share for gross proceeds of $300,000 (See Note 8). On March 14, 2025, the Company issued 2,000,000,000 shares of the Companys common stock valued at market price of $0.0002 per share for a total amount of $400,000 to Mr. Chiyuan Deng, the Chief Executive Office. (See Note 8). 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 1,750,000,000 shares of the Companys common stock at a value of $0.0002 per share for total gross proceeds of $350,000 (See Note 8). AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 STOCKHOLDERS EQUITY (continued) Common shares (continued) The Company had the following activities during the year ended August 31, 2024 : Issuance of restricted common shares On October 5, 2023, the Board of Directors resolved to issue 225,000,000 shares of the Companys restricted common stock, par value $0.001 per share, to Mr. Chiyuan Deng, the Chief Executive Officer, as settlement of his accrued executive salaries totaling $45,000 . Conversion of Series C preferre …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14 SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued. 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 160,000,000 shares of the Companys restricted common stock as compensation for services. Upon execution of the agreements, the Company issued 30,000,000 restricted common shares to each of the consultants, totaling 90,000,000, which were delivered to the Companys transfer agent in the consultants names and accounts. 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 10,000,000 restricted common shares per month, to be delivered to the transfer agent in the Companys name and account for subsequent release pursuant to the service schedule under the agreements. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE 14 COMMITMENTS AND CONTINGENCIES Contingencies 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 Companys directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Companys interest. Operating leases 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) AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.) NOTES TO CONSOLIDATED FINANCIAL STTEMENTS (Unaudited) …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Three months ended May 31, 2026 May 31, 2025 Theater admissions $ 44,692 $ 30,743 Food and beverage sales 18,327 16,389 Theater advertisement 11,957 Theater revenue 63,019 59,089 Licensing for broadcast and download 168,696 451,000 Licensing for NFT platform 150,000 Embedded marketing service 128,800 License of short-form drama for AI training pilot 77,951 Licensing for uFilm platform 1,042,173 Service revenue 1,438,820 579,800 Copyrights sales 1,206,300 Total revenue $ 1,501,839 $ 1,845,189 Nine months ended May 31, 2026 May 31, 2025 Theater admissions $ 123,069 $ 136,347 Food and beverage sales 49,037 63,026 Theater advertisement 4,718 22,581 Theater revenue 176,824 221,954 Licensing for broadcast and download 2,304,376 451,000 Licensing for NFT platform 450,000 285,000 Embedded marketing service 1,588,220 507,828 Consulting services 371,507 License of short-form drama for AI training pilot 955,270 Licensing for uFilm platform 1,322,300 Service revenue 6,991,673 1,243,828 Copyrights sales 2,064,300 Total revenue $ 7,168,497 $ 3,530,082 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 12 INCOME TAXES 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 21% . The Companys fully owned subsidiary, App Board Limited, was registered in Hong Kong and is subject to a statutory income tax rate at 16.5% . As of May 31, 2026 and August 31, 2025, the components of net deferred tax assets, including a valuation allowance, were as follows: May 31, 2026 August 31, 2025 Deferred tax asset attributable to: Net operating loss carry over $ 1,314,655 $ 1,580,516 Less: valuation allowance ( 1,314,655 ) ( 1,580,516 ) Net deferred tax asset $ $ 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 Companys earnings are not yet stable or sustainable. The Company also continues to experience negative working capital and has an accumulated deficit. 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 fut …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Lease property under operating lease The Company adopted ASU No. 2016-02Leases (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 Companys consolidated net earnings and cash flows. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements 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 ASUs scope are permitted to early adopt the ASU. The Company is currently evaluating the impact of this standard on it …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 9 RELATED PARTY TRANSACTIONS Related party loans and line of credit agreements In support of the Companys 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. Mr. Chiyuan Deng, the Chief Executive Officer On June 1, 2023, Mr. Chiyuan Deng, the Companys 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 $1,500,000 , which included the existing shareholder loan balance of $697,281 . The line of credit is non-interest bearing and due on demand . For the nine months ended May 31, 2026, Mr. Deng provided additional loans totaling $2,867,591 to meet the Companys working capital needs. In addition, Mr. Deng and Anyone Pictures Limited had signed an agreement to agree to transfer Anyones balance to Mr. Dengs account. As of May 31, 2026, the Company had repaid $4,670,613 . For the nine months ended May 31, 2025, Chiyuan Deng has loaned a total of $3,537,595 for its working capital needs. As of May 31, 2025, the Company has repaid $2,077,722 . The loans are non-interest bearing and due on demand. The Company recognized imputed interest at 5% 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. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 15 SEGMENT INFORMATION The Company follows FASB ASC Topic 280, Segment Reporting , as amended by ASU 2023-07. The Companys Chief Operating Decision Maker (CODM), Mr. Deng, the Chief Executive Officer, is responsible for evaluating operating results and allocating resources among the Companys 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. The following table presents summarized financial information by reportable segment for the nine months ended May 31, 2026 and 2025, respectively. NOTE 14 - SEGMENT INFORMATION - Financial Information by Segment (Details) IP Segment Cinema Segment Total Nine months ended Nine months ended Nine months ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 Revenue $ 6,991,673 $ 3,308,128 $ 176,824 $ 221,954 $ 7,168,497 $ 3,530,082 Costs of copyrights sold 1,510,921 1,510,921 Theatre operating costs 85,681 118,598 85,681 118,598 Depreciation and Amortization 3,468,840 850,996 3,468,840 850,996 Interest expense 209,964 40,041 209,964 40,041 Segment assets 10,006,176 6,368,028 122,293 109,704 10,128,469 6,477,732 Segment (loss) income $ (1,578,386 ) $ 186,354 $ (150,433 ) $ (146,703 ) $ (1,728,819 ) $ 39,651 The following table presents summarized financial information by reportable segment for the three months ended May 31, 2026 and 2025, respectively. IP Segment Cinema Segment …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The financial statements have been prepared on a consolidated basis, with the Companys wholly owned subsidiaries, App Board Limited, AB Cinemas NY, Inc and AI+ Hubs Corp. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates 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. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Accounts receivable 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, customers payment history, its c …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 10 STOCKHOLDERS EQUITY Common shares The Company had the following activities for the nine months ended May 31, 2026: Repurchase of shares 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 3,750,000,000 (split-adjusted 1,875,000) shares of the Companys common stock, par value $0.001 per share (the Shares), for an aggregate purchase price of $675,000 (the Purchase Price), or approximately $0.00018 (split-adjusted $0.36) per share. AI ERA CORP. (FORMERLY KNOWN AS AB INTERNATIONAL GROUP CORP.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 10 STOCKHOLDERS EQUITY (Continued) The repurchase represents approximately 46.2% of the Companys currently outstanding common stock (based on 8,121,266,321 (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 Companys treasury and canceled. 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. Reverse Stock split On June 5, 2025, the Company obtained the written consent of majority stockholders to grant discr …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16 SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued. Management Changes 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. Kastahoraus resignation. Mr. Kastahoraus resignation was not the result of any disagreement with the Company on any matter relating to the Companys operations, policies, or practices. Issuance of common shares for private placement 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. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing