| Schedule of CODM and Reconciliation to Net Income as Reported in the Consolidated Statement of Comprehensive Income |
The following table summarizes the operating results reviewed by
CODM and reconciliation to net income as reported in the consolidated statement of comprehensive income.
| | |
For the Six Months Ended January 31, | |
| | |
2026 | | |
2025 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Consolidated in-game purchases | |
$ | 48,603,849 | | |
$ | 49,125,267 | |
| Less: Revenue share with game developers and IP holders | |
| 8,186,251 | | |
| 9,453,531 | |
| Transaction fee | |
| 2,245,367 | | |
| 2,486,795 | |
| Advertisement expense | |
| 18,760,029 | | |
| 24,651,703 | |
| Server cost directly related to hosting the games | |
| 1,400,430 | | |
| 894,239 | |
| Segment profits | |
| 18,011,772 | | |
| 11,638,999 | |
| | |
| | | |
| | |
| Other operating expenses: | |
| | | |
| | |
| Payroll and related cost | |
| 7,698,199 | | |
| 4,025,616 | |
| Share-based compensation cost | |
| 1,913,692 | | |
| - | |
| Lease expense | |
| 1,451,104 | | |
| 1,101,375 | |
| Depreciation and amortization expense (including prepaid royalties amortization) | |
| 867,889 | | |
| 1,339,080 | |
| Impairment expense | |
| 892,534 | | |
| 1,392,610 | |
| Recoup of advances made to game developers | |
| 1,549,346 | | |
| 1,362,612 | |
| Other cost of sales (1) | |
| 2,325,095 | | |
| 805,784 | |
| Other selling and marketing expenses (2) | |
| 1,441,766 | | |
| 766,401 | |
| Other general and administrative expenses (3) | |
| 1,621,277 | | |
| 1,387,283 | |
| Total other operating expenses | |
| 19,760,902 | | |
| 12,180,761 | |
| | |
| | | |
| | |
| Income (loss) from operation | |
| (1,749,130 | ) | |
| (541,762 | ) |
| Interest income, net | |
| 333,453 | | |
| 282,507 | |
| Foreign Currency Transaction gain (loss) | |
| 260,296 | | |
| 221,056 | |
| Other income | |
| 499,078 | | |
| 292,677 | |
| Income before income tax | |
$ | (656,303 | ) | |
$ | 254,478 | |
| (1) | Other cost of sales mainly includes server and infrastructure cost that are not directly related to the host of a specific game and certain outsourcing cost. |
| (2) | Other selling and marketing expenses mainly includes cost associated with meeting, travel and promotions. |
| (3) | Other general and administrative expenses mainly includes cost associated with professional services, office supplies, recruiting and education. |
|
| Schedule of Consolidated in-Game Purchase Amount of Revenue |
The following table reconcile
from consolidated in-game purchase amount of revenue.
| | |
For
the Six Months Ended January 31, | |
| | |
2026 | | |
2025 | |
| |
(Unaudited) | | |
(Unaudited) | |
| Revenue
reconciliation | |
| | |
| |
| Consolidated in-game
purchases | |
$ | 48,603,849 | | |
$ | 49,125,267 | |
| Less: | |
| | | |
| | |
| Recoup
of advances made to game developers | |
| 1,549,346 | | |
| 1,362,612 | |
| Revenue
share paid to game developers | |
| 6,122,156 | | |
| 6,548,748 | |
| Consolidated
revenue | |
$ | 40,932,347 | | |
$ | 41,213,907 | |
|
| Schedule of Long-Lived Assets by Geographic Locations |
As of January 31, 2026 and
July 31, 2025, the Group’s long-lived assets by geographic locations are as follows:
| | |
As of | |
| | |
January 31,
2026 (Unaudited) | | |
July 31,
2025 | |
| Japan | |
$ | 15,506,677 | | |
$ | 14,726,888 | |
| Singapore | |
| 11,191,484 | | |
| 6,502,511 | |
| Taiwan | |
| 3,901,121 | | |
| 4,481,573 | |
| China, excluding Taiwan | |
| 2,376,709 | | |
| 836,698 | |
| United States | |
| 2,350,346 | | |
| — | |
| Total | |
$ | 35,326,337 | | |
$ | 26,547,670 | |
|