COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jul. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 7— COMMITMENTS AND CONTINGENCIES

Lease commitments

On January 1, 2021, Roshing entered into an operating lease agreement for office space in Hong Kong with a third party. The agreement had a term of two years and provided for monthly rent of HKD 2,800 (approximately $360). On January 13, 2023, the Company entered a new operating lease agreement for office space in Hong Kong with a third party for two years with monthly rent of HKD 3,000 (approximately $382). Upon adoption of ASU 2016-02 effective August 1, 2022, the Company recognized a $8,704 right of use (“ROU”) asset and operating lease liabilities in January 2023 based on the present value of the future minimum rental payments of leases, using an incremental borrowing rate of 5%.

The Company’s lease agreement does not contain any material residual value guarantees or material restrictive covenants. The lease does not contain an option to extend at the time of expiration.

As of July 31, 2023, the Company’s operating lease had a remaining lease term of approximately 1.50 years.

Rent expenses were $26,159 and $24,362 for the years ended July 31, 2023 and 2022, respectively.

The total future minimum lease payments under the non-cancellable operating lease as of July 31, 2023 are as follows:

Year ending July 31,	Minimum lease payments
2024	$	4,586
2025		2,096
Total lease payments		6,682
Less: Interest		(246
Present value of lease liabilities	$	6,436

Future amortization of the Company’s ROU asset is presented below:

Year ending July 31,
2024		4,368
2025		2,068
Total	$	6,436

Contingencies

From time to time, the Company may be a party to legal proceedings, as well as certain asserted and un-asserted claims.