NOTE 4 - LEASES

In February 2026, the Company entered into a noncancelable operating lease for approximately 4,883 rentable square feet of office space located in Nashville, Tennessee. The lease has a term of 75 months, with an accounting commencement date of February 1, 2026 (the date the Company obtained access to and commenced use of the premises) and an expiration date of April 30, 2032. The lease provides for a six-month rent-free period (February through July 2026), after which fixed monthly base rent payments commence on August 1, 2026 and escalate periodically over the lease term. The Company is also responsible for its proportionate share of operating costs and property taxes, which are treated as variable lease payments and expensed as incurred.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The ROU asset and lease liability were recognized at the commencement date based on the present value of the future minimum lease payments over the lease term. As the rate implicit in the lease was not readily determinable, the Company used its estimated incremental borrowing rate of 8.81% in determining the present value of the lease payments. In connection with the lease, at April 30, 2026, the Company recorded a $48,830 receivable from the landlord representing a tenant improvement (construction) allowance, which was accounted for as a lease incentive reducing the right-of-use asset at the lease commencement date; the receivable will be relieved upon receipt of the allowance from the landlord.

The components of the Company’s operating lease balances as of April 30, 2026 and July 31, 2025 were as follows:

SCHEDULE OF OPERATING LEASE BALANCES

Operating lease cost, which is recognized on a straight-line basis and included in “Selling, general and administrative” expenses on the interim condensed consolidated statements of operations, was $36,805 for the three and nine months ended April 30, 2026. The Company recorded no operating lease cost under this lease during the comparable prior-year periods, as the lease had not yet commenced.

Future minimum lease payments under the noncancelable operating lease as of April 30, 2026 were as follows:

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

As of April 30, 2026, the weighted-average remaining lease term was approximately 6.0 years and the weighted-average discount rate was 8.81%. No cash payments had been made under the lease as of April 30, 2026. A security deposit of $38,413 required under the lease had not been paid as of April 30, 2026.