Operating Leases

3 Months Ended

Oct. 31, 2023

Operating Leases [Abstract]

OPERATING LEASES

NOTE 8 – OPERATING LEASES

The Company leases offices space and a car 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 October 31, 2023 and 2022 was $125,679 and $120,692, 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 balance sheets as of October 31, 2023 and July 31, 2023. 

	October 31, 2023		July 31, 2023
	(unaudited)
Right-of- use assets, net	$	945,706	$	1,058,822
Operating lease liabilities, current	$	375,278	$	415,411
Operating lease liabilities, noncurrent		630,987		689,498
Total operating lease liabilities	$	1,006,265	$	1,104,909

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

	October 31, 2023			July 31, 2023
	(unaudited)
Remaining lease term and discount rate
Weighted average remaining lease term (years)		3.26			3.35
Weighted average discount rate		4.90	%		4.90	%

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

	October 31, 2023			July 31, 2023
	(unaudited)
For the nine months/twelve months ended July 31, 2024	$	346,412		$	457,708
For the twelve months ended July 31, 2025		267,239			267,239
For the twelve months ended July 31, 2026		267,239			267,239
For the twelve months ended July 31, 2027 and thereafter		204,540			204,540
Total lease payments	$	1,085,430		$	1,196,726
Less: imputed interest		(79,165	)		(91,817	)
Present value of lease liabilities	$	1,006,265		$	1,104,909