NOTE 5 - INTANGIBLES, NET

Intangibles, net consisted of the following at April 30, 2026 and July 31, 2025:

 SCHEDULE OF INTANGIBLES, NET

Amortization expense for the nine months ended April 30, 2026 and 2025 was $2,068 and $299,953 respectively.

The Company capitalizes certain qualifying costs incurred during the application development stage of internal-use software in accordance with ASC 350-40, Internal-Use Software. Capitalized costs primarily related to the development of the Company’s AI-based software platform and associated technologies.

As of January 31, 2026, the Company had $1,222,580 of capitalized software development costs recorded as intangible assets in process. At that time, management concluded that capitalization remained appropriate and that no impairment charge was required. This conclusion was based on management’s assessment that the software platform continued to have expected future economic benefit and that the underlying technology and development work possessed value that a market participant would attribute to the asset. Management’s assessment also considered anticipated near-term commercialization opportunities, expected customer adoption, and anticipated execution of prospective customer contracts.

During the quarter ended April 30, 2026, management identified additional impairment indicators requiring reassessment of recoverability. Specifically, anticipated commercialization opportunities and expected customer contract activity did not materialize as previously expected. In addition, forecasted revenue growth associated with the software platform was delayed or reduced, and the Company continued to incur operating losses and negative cash flows while experiencing ongoing uncertainty regarding future revenue generation and access to capital.

As a result of these developments, management reassessed the assumptions supporting its prior recoverability and fair value conclusions. Management determined that the absence of executed customer contracts, continued commercialization delays, and increased uncertainty regarding future economic benefit materially weakened support for the prior assumption that a market participant would attribute value to the developed technology at or near its carrying value.

Accordingly, management concluded that the carrying amount of the capitalized software development costs was no longer recoverable and recorded a non-cash impairment charge of $1,222,580 during the quarter ended April 30, 2026. The impairment charge is included within operating expenses in the accompanying condensed consolidated statements of operations.

Following recognition of the impairment charge, the carrying value of software intangible assets in process was reduced to zero as of April 30, 2026.

We recognized a $46,225 intangible asset impairment charge during the nine months ended April 30, 2025.

Intangibles are amortized over their estimated useful lives of 2 to 20 years. As of April 30, 2026, the weighted average remaining useful life of intangibles assets in-service being amortized was approximately 14.3 years. We expect the remaining aggregate amortization expense for each of the five succeeding fiscal years to be as follows:

 SCHEDULE OF INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE