Operating Leases

3 Months Ended

Oct. 31, 2024

Operating Leases [Abstract]

OPERATING LEASES

NOTE 7 – OPERATING LEASES

As of October 31, 2024, the Company leases offices space under one non-cancelable operating lease with a related party lessor (Note 10).

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Rent expenses for the three months ended October 31, 2024 and 2023 were $9,000 and $125,679, respectively.

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 right-of-use (“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, 2024 and July 31, 2024. 

	October 31, 2024		July 31, 2024
	(unaudited)
Right-of- use assets	$	45,475	$	53,793
Operating lease liabilities, current		20,683	$	11,375
Operating lease liabilities, noncurrent		11,790		20,417
Total operating lease liabilities	$	32,473	$	31,792

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of October 31, 2024 and July 31, 2024:

	October 31, 2024			July 31, 2024
	(unaudited)
Remaining lease term and discount rate
Weighted average remaining lease term (years)		1.33			1.58
Weighted average discount rate		8.50	%		8.50	%

The following is a schedule of maturities of lease liabilities as of October 31, 2024 and July 31, 2024:

	October 31, 2024			July 31, 2024
	(unaudited)
2025	$	14,000		$	14,000
2026		21,000			21,000
Total lease payments		35,000			35,000
Less: imputed interest		(2,527	)		(3,208	)
Present value of lease liabilities	$	32,473		$	31,792