On February 11, 2022, the Company issued a purchase warrant (the "Mast First Warrant") to Mast Hill Fund, L.P. for 150,000 shares of the Company's common stock in conjunction with convertible debt (Note 10 - Convertible Debt).  The warrants are exercisable for 5 years at $3.00 per share.  The Company determined the Warrants should be classified as a liability as the warrants are redeemable for cash in the event of a fundamental transaction, as defined in the warrant agreement, which includes a change in control.

On February 11, 2022, the Company issued a purchase warrant (the "Mast Second Warrant") to Mast Hill Fund, L.P. for 150,000 shares of the Company's common stock in conjunction with convertible debt (Note 10 - Convertible Debt).  The warrants are exercisable for 5 years at $1.50 per share. The warrants were evaluated for purposes of classification between liability and equity. Because the warrants were issued in conjunction with a debenture the warrants have been considered debt pursuant to ASC 820 Topic 10. On August 14, 2024 the Company and Mast Hill agreed to extinguish the Mast Second Warrant.

On February 17, 2022, the Company issued a purchase warrant to Talos Victory Fund, LLC for 75,000 shares of the Company's common stock in conjunction with convertible debt.  The warrants are exercisable for 5 years at $1.50 per share. The warrants were evaluated for purposes of classification between liability and equity. Because the warrants were issued in conjunction with a debenture the warrants have been considered debt pursuant to ASC 820 Topic 10.

On February 17, 2022, the Company issued a purchase warrant to Talos Victory Fund, LLC for 75,000 shares of the Company's common stock in conjunction with convertible debt.  The warrants are exercisable for 5 years at $3.00 per share. The warrants were evaluated for purposes of classification between liability and equity. Because the warrants were issued in conjunction with a debenture the warrants have been considered debt pursuant to ASC 820 Topic 10.

The following schedule summarizes the changes in the Company's common stock warrants during the nine months ended April 30, 2025 and 2024:

								Weighted
					Weighted			Average
					Average			Contractual
			Number of		Exercise			Term
			Warrants		Price			(Years)
Balance outstanding at July 31, 2023			450,000		$	2.25		3.54
Granted			-			-
Exercised			-			-		-
Expired/Canceled			-			-		-
Balance outstanding at April 30, 2024			450,000		$	2.25		2.79
Exercisable at April 30, 2024			450,000		$	2.25		2.79
Balance outstanding at July 31, 2024			450,000		$	2.25		2.54
Granted			-			-		-
Exercised			-			-		-
Expired/Canceled			(150,000	)		1.50		-
Balance outstanding at April 30, 2025			300,000		$	2.63		1.79
Exercisable at April 30, 2025			300,000		$	2.63		1.79

The Black Scholes model was used to determine the fair value of the warrants, including the use of the share price, exercise price, term, volatility, risk free interest rate and the dividend rate. The warrants were priced in each quarter and the carrying cost of the warrant adjusted in accordance with the model. The fair values of the outstanding warrants recorded as warrants liability as of April 30, 2025 and July 31, 2024 was estimated using the Black-Scholes option-pricing model with the following assumptions: