XML 40 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
Commitments and Contingencies
9 Months Ended
Apr. 30, 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 April 30, 2015 and April 30, 2014. Rent expense was $40,256 for the nine months ended April 30, 2015 and April 30, 2014.
 
Capital leases
 
On October 31, 2014, the Company leased $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. On March 31, 2015, the Company leased $4,356 of drivers to increase production capacity for the OEM project with PC Driver Headquarters LP. The leases are payable in 36 monthly installments through fiscal year 2018. 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 $20,952 to short-term capital lease obligations and $61,811 to long-term capital lease obligations at April 30, 2015.