Commitments and Contingencies

6 Months Ended

Jan. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 5 – Commitments and Contingencies

Office lease

The Company leased its office and warehouse subject to an agreement that was terminated on February 26, 2016. Rent expense was $34,114 for the three months ended January 31, 2016 and $13,419 for the three months ended January 31, 2015. Rent expense was $47,533 for the six months ended January 31, 2016 and $26,837 for the six months ended January 31, 2015. As of January 31, 2016, there is an outstanding rent payable of $40,448 and security deposit of $20,695. On February 26, 2016, the company settled with landlord on early termination with a total amount payable to the landlord for $60,000.

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 $18,124 to short-term capital lease obligations and $52,007 to long-term capital lease obligations at January 31, 2016.