Operating Leases

6 Months Ended

Jan. 31, 2023

Leases [Abstract]

OPERATING LEASES

NOTE 10 – OPERATING LEASES

The Company leases offices space under non-cancelable operating leases, with lease terms ranging between 14 months to 60 months. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Rent expense for the three months ended January 31, 2023 and 2022 was $130,169 and $115,149, respectively. Rent expense for the six months ended January 31, 2023 and 2022 was $250,861 and $271,240, respectively.

Effective August 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method, which allows the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allows the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. 

The following table presents the operating lease related assets and liabilities recorded on the unaudited condensed consolidated balance sheets as of January 31, 2023 and July 31, 2022.

	January 31, 2023		July 31, 2022
	(unaudited)
Right-of- use assets, net	$	1,280,746	$	1,383,464
Operating lease liabilities, current		511,373		433,061
Operating lease liabilities, noncurrent		826,070		985,249
Total operating lease liabilities	$	1,337,443	$	1,418,310

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of January 31, 2023 and July 31, 2022: 

	January 31, 2022			July 31, 2022
	(unaudited)
Remaining lease term and discount rate
Weighted average remaining lease term (years)		3.63			3.95
Weighted average discount rate		4.90	%		4.90	%

The following is a schedule of maturities of lease liabilities as of January 31, 2023 and July 31, 2022:

	January 31, 2023			July 31, 2022
	(unaudited)
For the six months/twelve months ended July 31, 2023	$	301,882		$	492,969
For the twelve months ended July 31, 2024		417,708			390,468
For the twelve months ended July 31, 2025		267,239			240,000
For the twelve months ended July 31, 2026		267,239			240,000
For the twelve months ended July 31, 2027 and thereafter		204,540			200,000
Total lease payments		1,458,608			1,563,438
Less: imputed interest		(121,165	)		(145,128	)
Present value of lease liabilities	$	1,337,443		$	1,418,310