OTC: AERA

The space was formerly used as a theatre with a total of 5 screens and 466 sets for screening films. The former theatre opened on December
21, 1962 with Hayley Millsin “In Search of the Castaways.” It was a replacement for the town’s other movie theatre that
burned down. It was later twinned and further divided into 5 screens. It was operated for years by Lesser Theaters, then bought by Clearview
Cinemas. In June, 2013 it was taken over by Bow-Tie Cinemas when they took most Clearview locations. It lasted until March, 2020 when
it was closed by the Covid-19 pandemic. It was announced in September 2020 that the closure would be permanent.

On May 5, 2022,
we incorporated AB Cinemas NY, Inc. in New York, NY, for the purpose of operating the Mt. Kisco Theatre. The theatre started operations
in October 2022. We still intend to follow the strategy of having the physical locations for movies and other media. We expect to generate
increased revenue from our movie theater business line in the coming years.

On April 27,
2022, we purchased a unique Non-Fungible Token (“NFT”) movie and music marketplace, named the NFT MMM from Stareastnet Portal
Limited, an unrelated party, which included an APP “NFTMMM” on Google Play, and full right to the website: stareastnet.io.

NFTs are digital
assets with a unique identifier that is stored on a blockchain, and NFTs are tradable rights of digital assets (pictures, music, films,
and virtual creations) where ownership is recorded in blockchain smart contracts. On August 6, 2022, the Company licensed NFT MMM platform
to a third party, Anyone Pictures Limited, to allow access of NFTMM platform and platform data on both our app and website for one year
starting from August 20, 2022 to August 19, 2023 for a monthly license fee of $60,000. Pursuant to the agreement, we also charged a one
time implementation service and consulting fee of $100,000. Subsequent to the license renewal on November 1, 2023, we continued licensing
the NFT MM platform to the same third party from November 1, 2023 until October 31, 2025 for a monthly license fee of $57,000. The agreement
was terminated on January 31, 2025. Starting on February 21, 2025, the Company entered into a stock purchase agreement with Anyone Pictures
Limited. Subsequent to the license renewal on June 1, 2025, we continued licensing the NFT MMM platform to the same party from June 1,
2025 until May 31, 2026 for a monthly license fee of $50,000. The Company retained the ownership and copyright of the NFT MMM platform,
including the APP “NFT MMM”, and the website: stareastnet.io.

On May 5, 2025
(the “Effective Date”), we entered into a Contribution Agreement (the “Contribution Agreement”) with AI+ Hubs
Corp, a Delaware corporation (“AI+ Hubs”) and newly formed wholly owned subsidiary. Pursuant to the terms of the Contribution
Agreement, the Company contributed to AI+ Hubs the assets and liabilities associated with the following:

1) Intellectual
property (IP) of ufilm AI Generated Creation, Productions Synthesis and Release System of Movie, TV series and short series;

2) copyrights
of short series; and

3) 100% interest
of the subsidiary, AB Cinemas NY, Inc.

AI+ Hubs accepted
the assets and assumed the liabilities, as of the Effective Date. In exchange for the contribution, AI+ Hubs issued to the Company 6,680,500
shares common stock of AI+ Hubs. After the above contribution, AI+ Hubs shall engage in fundraising efforts to obtain approximately $1m
in financing from outside sources. As of 31 May, 2025, the company and its subsidiary AI+ Hubs Corp decided not to exercise contribution
agreement.

On June 1, 2025
(the “Effective Date”), we entered into a revised agreement with AI+ Hubs. Pursuant to the terms of the agreement, the Company
contributed to AI+ Hubs the assets associated with the following:

1) copyrights
of Movie, TV series and short series and all subsequent acquired assets except of NFT MMM IP

2) all equity
of the subsidiary, AB Cinemas NY, Inc.

Starting
from June 1, 2025, the operations of the Company were transferred to its wholly-owned subsidiaries, AI+ Hubs and AB Cinemas NY, Inc.
On June 5, 2025, the Company amended the Original Agreement to require that all prepaid or executed purchase agreements and all assets
acquired by the Parent on or after that date be automatically transferred to the Subsidiary at their purchase price upon acquisition,
with this arrangement continuing until modified by a future amendment.

Also on May 5,
2025, the Company entered into an agreement to acquire a license to intellectual property (IP) of ufilm from AIHUB Releasing, Inc. for
total consideration of $2,000,000. The original settlement terms required: $500,000 to be paid in cash within 10 days of the agreement
date, and the remaining $1,500,000 to be settled within 10 days following the successful completion of related SaaS system testing.

On June 2, 2025,
the parties mutually agreed to amend the terms of the agreement. Under the revised terms, the company fully settled the purchase consideration
by transferring its NFT MMM intellectual property, to the AIHUB Releasing, Inc.

On July 12, 2025,
the parties mutually further agreed to modify the terms of the agreement. Under the amended terms, the Company agreed to acquire all rights
to the ufilm AI IP from AIHUB Releasing, Inc. for a cash consideration of $300,000, replacing the originally agreed transfer of the Company’s
NFT MMM IP.

On June 5, 2025,
the Board of Directors of the Company approved the granting of 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 our articles of incorporation
to effect a reverse split of our issued and outstanding common stock, par value $0.001 per share, in a range of not less than 1-for-2,000
and not more than 1-for-20,000.

On June 5, 2025,
the Board of Directors of the Company approved to authorize a change in the name of the Company from “AB International Group Corp.”
to “AI Era Corp.” The reverse split and name change are subject to review by FINRA and receipt of a market effective date.

The information
on or accessible through our websites is not part of and is not incorporated by reference into this Annual Report on Form 10-K, and the
inclusion of our website addresses in this Annual Report on Form 10-K is only for reference. We were incorporated under the laws of the
State of Nevada on July 29, 2013. Our fiscal year end is August 31.

Competition

Our theatre
is subject to varying degrees of competition in the geographic areas in which it operates. Competition is often intense with respect
to attracting patrons, licensing motion pictures and finding new theatre locations.

Our online
platform ABQQ.tv has not yet generated any revenue, whereas the major competitors in this field, including Netflix, Amazon and Apple,
have far superior resources and brand notoriety. On January 27, 2025, the Company sold its proprietary broadcasting platform (ABQQ.tv).
Subsequently, the Company entered into an arrangement with a third-party platform to broadcast its film and TV drama copyrights in March
2025. We are hoping to capture some market share through pricing, unique media offerings, and marketing campaigns when funds are available.
We cannot assure you that we will be successful in these endeavors.

For the NFT business,
there are a number of competitors, and we are new in the industry. We intend to market our NFT MMM platform for licensing opportunities
as we have already, but there are no assurances that we will be able to compete in this market.

Government
Regulation

Our operations
across all business segments—movie theater operations, intellectual property acquisition and licensing, NFT MMM platform licensing,
future AI-generated content production through ufilm AI IP, and consulting services—are subject to a wide range of federal,
state, local, and international government regulations. Compliance with these regulations is critical to our operations, and non-compliance
could result in fines, legal liabilities, reputational harm, operational restrictions, or increased costs, any of which could materially
adversely affect our business, financial condition, and results of operations. Below is an updated overview of the regulatory landscape
affecting all areas of our business.

Movie Theater
Operations (AB Cinemas NY, Inc.)

Our theater at
Mt. Kisco, New York, must comply with Title III of the Americans with Disabilities Act (ADA), which mandates that public accommodations,
including physical facilities, websites, and mobile apps, be accessible to individuals with disabilities. This requires that new construction,
renovations, or alterations meet accessibility guidelines, such as providing wheelchair-accessible seating, restrooms, and digital interfaces.
Non-compliance could lead to injunctive relief, fines, private litigation damages, or costly capital expenditures to remedy issues. As
an employer, we are also subject to ADA requirements to provide reasonable accommodations to employees and job applicants with disabilities,
provided such accommodations do not impose undue hardship. Additionally, our theater operations are governed by federal, state, and local
laws regulating construction, renovation, and operational standards, including fire safety codes, health and sanitation requirements (e.g.,
for food and beverage services), and licensing for alcoholic beverage sales.

We are also subject
to labor regulations, such as the Fair Labor Standards Act (FLSA), which governs minimum wage, overtime, and working conditions, as well
as Occupational Safety and Health Administration (OSHA) standards for employee safety. During the COVID-19 pandemic, our theater faced
governmental orders imposing operational restrictions, such as temporary closures, reduced seating capacities, social distancing protocols,
enhanced cleaning measures, guest tracking, employee protection requirements, and limited operating hours. Although these restrictions
have eased, future public health crises or new variants could prompt similar mandates, potentially disrupting operations or requiring
significant compliance costs. Non-compliance with any of these regulations could lead to penalties, operational shutdowns, or loss of
licenses, severely impacting our ability to generate revenue from ticket sales, food and beverage services, and advertisements.

Intellectual
Property Acquisition and Licensing

Our acquisition
and licensing of movie and TV drama copyrights, including 19 movie copyrights and various TV drama copyrights as of August 31,
2025, are subject to intellectual property laws enforced by the U.S. Copyright Office and international equivalents. We must ensure proper
documentation, transfer, and licensing agreements to avoid infringement claims, which could result in costly litigation, damages, or
loss of rights. Additionally, our licensing activities, particularly for international markets, are subject to export control regulations
and trade compliance laws, such as those administered by the U.S. Department of Commerce and the Office of Foreign Assets Control (OFAC),
which restrict transactions with certain countries or entities. Failure to comply could lead to fines, sanctions, or restrictions on
our ability to license content globally. Our digital content distribution through third-party platforms post the sale of ABQQ.tv in January
2025 is also subject to data privacy and consumer protection laws, such as the California Consumer Privacy Act (CCPA) and, in international
markets, the General Data Protection Regulation (GDPR). These regulations require robust data handling practices, transparency in data
collection, and consumer consent mechanisms, with non-compliance potentially resulting in significant fines or reputational damage.

NFT MMM
Platform Licensing

The licensing
of our NFT MMM platform, including the app and website (stareastnet.io), operates in a rapidly evolving regulatory environment for non-fungible
tokens (NFTs) and blockchain-based assets. In the U.S., the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission
(CFTC) may classify certain NFTs as securities or commodities, subjecting them to registration requirements, anti-fraud provisions, or
trading restrictions under the Securities Act of 1933 or Commodity Exchange Act. Failure to comply could lead to enforcement actions,
fines, or cessation of platform operations. Additionally, the Financial Crimes Enforcement Network (FinCEN) imposes anti-money laundering
(AML) and Know Your Customer (KYC) requirements under the Bank Secrecy Act, necessitating robust measures to prevent the platform from
being used for illicit activities like money laundering or terrorist financing. Non-compliance could result in penalties or platform shutdowns.
Internationally, varying regulations on digital assets, such as bans or restrictions in certain jurisdictions, could limit our ability
to license the platform globally or increase compliance costs. Consumer protection laws also apply, requiring clear disclosures about
NFT ownership, risks, and transaction fees to avoid deceptive practice claims.

AI-Generated
Content (ufilm AI IP)

The planned
AI-generated content production through ufilm AI IP, which has not yet commenced, is currently in the testing phase and is expected to
be adopted and initiated in December 2025. The use of our ufilm AI IP for generating
movies, TV series, and short series is subject to emerging regulations governing artificial intelligence. In the U.S., proposed federal
AI regulations, such as those under consideration by Congress or agencies like the Federal Trade Commission (FTC), may impose requirements
for transparency, ethical use, and data sourcing, particularly if AI systems are trained on copyrighted materials. Non-compliance could
lead to restrictions on AI use, fines, or intellectual property disputes. In Europe, the EU Artificial Intelligence Act, expected to
be fully implemented by 2026, categorizes AI applications by risk level and could classify our content generation as high-risk, requiring
stringent compliance with safety, transparency, and accountability standards. Violations could result in fines of up to 7% of global
annual revenue. Additionally, U.S. and international copyright laws pose risks if our AI inadvertently incorporates protected works without
authorization, potentially leading to litigation or loss of IP rights. Labor regulations, including those enforced by the National Labor
Relations Board (NLRB), may also apply if AI adoption leads to disputes with entertainment unions (e.g., SAG-AFTRA) over job displacement,
potentially resulting in strikes or contractual restrictions.

Employees

We
currently have 8 employees.