Basis of Presentation

The accompanying unaudited condensed interim financial statements of Aladdin International, Inc. (the “Company” or “Aladdin”) have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position of the Company as of March 31, 2018 and 2017 and for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The accompanying condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2017, filed on October 1, 2017 (“Annual Report”).  Interim results for the six months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2018.

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America. The Company, under new Officers and Directors is committed in the investments in Hollywood blockbusters made by six major studios.  It cooperates with predominant online streaming platforms and conducts M&A with prominent companies within the film industry in the USA, China, Hong Kong, Taiwan, South Korea, Japan, and many other countries with specialization in production, distribution and original screenplay development and investment.

The new Board has approved a change of the Company’s name to Moregain Pictures Inc. On March 23, 2018, the Board approved the name change in connection with the Company’s focus in financing, developing, producing and distributing motion picture.

The Company has got its majority shareholder approval of the name change on March 23, 2018 and intends to file an amendment to the Articles of Incorporation to effectuate the name change upon effectiveness of the Schedule 14C.

The Company occasionally obtains financing from related parties in the form of notes payable which are convertible into shares of the Company’s common stock. The Company accounts for convertible notes and debt issuance costs associated with convertible notes following the guidance set forth in ASC 470-20, Debt with Conversion and Other Options; ASC 480, Distinguishing Liabilities from Equity; ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity; EITF 07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock; and ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs.

The terms of such convertible notes payable are analyzed by management to determine their accounting treatment, including determining whether conversion features are required to be bifurcated and treated as a discount, allocation of fair value of the issuance to the debt instrument and any beneficial conversion features, and the applicable classification of the convertible notes payable as debt, equity or mezzanine temporary equity.

The intrinsic value of the embedded conversion feature of related party convertible notes payable are included in the discount to notes payable, which is accreted to interest expense over the expected term of the note using the effective interest method. The Company’s management also estimates the total fair value of any beneficial conversion feature in allocating debt proceeds. The proceeds allocated to the beneficial conversion feature are determined by taking the estimated fair value of shares issuable under the convertible notes less the fair value of the number of shares that would be issued if the conversion rate equaled the fair value of the Company’s common stock as of the date of issuance.

(b)  Related Party Debt – Non-Convertible Note

The Company occasionally obtains financing from related parties in the form of notes payable. The Company accounts for such notes following the guidance set forth in ASC 470, Debt, and ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30) simplifying the Presentation of Debt Issuance Costs.

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents.  At March 31, 2018 and June 30, 2017, the Company had no amounts of cash or cash equivalents in financial institutions in excess of amounts insured by agencies of the U.S. Government.

Certain amounts previously reported have been reclassified to conform to current presentation. Other of the Operating Expenses are reclassified to license and permit fees. The reclassification had no impact on the Company’s total operating expenses.

The Company accounts for operating leases in accordance with SFAS No. 13, “Accounting for Leases,” and Financial Accounting Standards Board (“FASB”) Technical Bulletin 88−1, “Issues Relating to Accounting for Leases.” Accordingly, rent expense under operating leases for the Company’s administrative office is recognized on a straight-line basis over the original term of each lease, inclusive of predetermined rent escalations or modifications.

(f)  Furniture and equipment

Furniture and equipment are stated at cost and are depreciated over the assets’ estimated useful lives ranging from three to seven years using the straight-line method of depreciation as follows:

(g)  Prepaid expenses

Prepaid expenses include annual fees required by such agents as Corporate Stock Transfer, OTCQB Market, and Godaddy.com.

(h)  Account payable

Account payable mainly includes fees for legal containers because of lack of cash in a certain period.

(i) Share-Based Compensation

Share-based compensation expense is measured based on the estimated fair value of the share-based award when granted and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). We have estimated the fair value of each option on the date of grant using the Black-Scholes option-pricing model. Our estimate of share-based compensation requires a number of inputs and assumptions including our stock price volatility, expected life of the options, the risk-free interest rate and the Company’s dividend yield. The stock price volatility assumption is based on the historical price data of our common stock. Since we do not have price history over a period equivalent to the weighted average expected life of our options, we computed the annualized volatility based on share price data available. Management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors. In determining the expected life of the option grants, the Company used the contractual terms as these are the first option grants issued by the Company and we believe that the contractual life is the best estimate of expected life based on the data we have available. The risk-free interest rate is based on the actual U.S. Treasury zero coupon rates for bonds matching the expected term of the option as of the option grant date. The dividend assumption is based upon the prior year’s average dividend yield. No compensation expense is recognized for options that are forfeited for which the employee does not render the requisite service.