LEASE OBLIGATIONS

6 Months Ended

Apr. 30, 2026

NOTE 6 – LEASE OBLIGATIONS

The Company accounts for its leases in accordance with ASU No. 2016-02, Leases (Topic 842) (“ASC 842”). ASC 842 requires lessees to (i) recognize a right of use asset (“ROU asset”) and a lease liability that is measured at the present value of the remaining lease payments on the Consolidated Balance Sheets, (ii) recognize a single lease cost, calculated over the lease term on a straight-line basis and (iii) classify lease related cash payments within operating and financing activities.

The Company’s operating lease consists of a lease for office space. The Company’s finance lease activities consist of leases for equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The office lease contains an option to a renewal period of five years at then-current market rates. The equipment leases are non-renewable as the Company owns the equipment at the end of the lease period, for a nominal amount.

The following table shows the classification and location of the Company’s leases in the Consolidated Balance Sheets:

Leases	Balance Sheet Location	April 30, 2026		October 31, 2025
Assets
Noncurrent:
Operating	Right-of-use asset – operating lease	$	294,526	$	360,681
Total Lease Assets		$	294,526	$	360,681

Liabilities
Current:
Operating	Operating lease liabilities	$	111,327	$	136,813
Finance	Finance lease liabilities		860		5,043
Noncurrent:
Operating	Operating lease liabilities		183,199		223,868
Total Lease Liabilities		$	295,386	$	365,724

The following table shows the classification and location of the Company’s lease costs in the Consolidated Statements of Operations:


	Statements of Operations	Six Months Ended April 30,
	Location	2026		2025
Operating lease expense	General and administrative expense	$	83,004	$	110,273
Finance lease expense:
Interest on lease liability	Interest expense		97		452
Total Lease expense		$	83,101	$	110,725

Minimum contractual obligations for the Company’s leases (undiscounted) as of April 30, 2026 were as follows:

	Operating			Finance
Fiscal year 2026 (six months remaining)	$	83,935		$	870
Fiscal year 2027		84,609			-
Fiscal year 2028		67,734			-
Fiscal year 2029		67,734			-
Thereafter		45,156			-
Total Lease Payments	$	349,168		$	870
Less Imputed interest		(54,642	)		(10	)
Total lease liability	$	294,526		$	860

The following table shows the weighted average remaining lease term and the weighted average discount rate for the Company’s leases as of the dates indicated:

	April 30, 2026						October 31, 2025
	Operating Leases			Finance Leases			Operating Leases			Finance Leases
Weighted-average remaining lease term (in years)		2.0			0.25			3.9			0.54
Weighted-average discount rate ⁽¹⁾		10.00	%		6.78	%		10.00	%		6.69	%

⁽¹⁾

The discount rate used for the operating lease is based on the Company’s incremental borrowing rate at lease commencement and may be adjusted if modification to lease terms or lease reassessments occur. The discount rate used for finance leases is based on the rates implicit in the leases.

The following table includes other quantitative information for the Company’s leases for the periods indicated:


	Six Months Ended April 30,
	2026		2025
Cash paid for amounts included in measurement of lease liabilities:
Cash payments for operating leases	$	82,824	$	81,515
Cash payments for finance leases	$	4,280	$	7,253

The Company recorded amortization of the operating lease right-of-use asset of $33,489 and $66,155, and $29,681 and $60,961 for the three and six months ended April 30, 2026 and 2025, respectively.