Commitments and Contingencies

6 Months Ended

Jan. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 5 –Commitments and Contingencies

Office lease

The Company leases its office and warehouse subject to an agreement that expires in May 2016. Rent expense was $13,419 for the three months ended January 31, 2015 and January 31, 2014. Rent expense was $26,837 for the six months ended January 31, 2015 and January 31, 2014.

Capital leases

On October 31, 2014, the Company leased a total of $93,294 of servers and network switches to increase production capacity for the OEM project with PC Driver Headquarters LP. The leases are payable in 60 monthly installments through fiscal year 2019. The Company determined that the leases qualified as capital leases because the company will own the equipment at the end of the leasing term subject to a bargain purchase option. The Company allocated $17,303 to short-term capital lease obligations and $64,357 to long-term capital lease obligations at January 31, 2015. During the three months ended January 31, 2015, the Company received proceeds of $93,094 as a reimbursement for the capital lease obligations from PC Driver Headquarters LP. The Company recorded the reimbursement as other income during the three months ended January 31, 2015.