ABMT was incorporated in the United States and has incurred net operating loss for income tax purposes for 2017 and 2016. ABMT has net operating loss carry forwards for income taxes amounting to approximately $1,915,159 and $1,771,223 as of October 31, 2017 and 2016 respectively which may be available to reduce future years’ taxable income. These carry forwards, will expire, if not utilized, commencing in 2029. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s limited operating history and continuing losses. Accordingly, a full, deferred tax asset valuation allowance has been provided and no deferred tax asset valuation allowance has been provided and no deferred tax asset benefit has been recorded. The valuation allowance at October 31, 2017 and 2016 was $478,790 and $442,806 respectively. The net change in the valuation allowance for 2017 was an increase of $35,984.

Masterise was incorporated in the BVI and under current law of the BVI, is not subject to tax on income.

Shenzhen Changhua was incorporated in the PRC and is subject to PRC income tax which is computed according to the relevant laws and regulations in the PRC. The income tax rate has been 25%. No income tax expense has been provided by Shenzhen Changhua as it has incurred losses. The losses cannot be carried forward as Shenzhen Changhua has not yet commenced operation.