NOTE 10 - WARRANTS

In February 2022, the Company and Mast Hill Fund, L.P. ("Mast") signed a Security Purchase Agreement (the "Mast SPA"). Pursuant to the Mast SPA the Company also agreed to issue Mast (i) a common stock purchase warrant to purchase 150,000 shares of Company common stock at an exercise price of $3.00 (the "Mast First Warrant"), (ii) a common stock purchase warrant to purchase 150,000 shares of Company common stock at an exercise price of $1.50 per share (the "Mast Second Warrant" and together with the Mast First Warrant, the "Mast Warrants"). Mast's right to exercise each of the Mast Warrants is subject to a 4.99% equity blocker. Each of the Mast Warrants expires on the five-year anniversary of issuance.

The Company determined the Mast First Warrant 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. The Mast Second Warrant was evaluated for purposes of classification between liability and equity and pursuant to ASC 480 the warrants were classified as liabilities. 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 and pursuant to ASC 480 the warrants are classified as liabilities.

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 and pursuant to ASC 480 the warrants are classified as liabilities.

Total outstanding warrant liabilities of the disclosed above are $9,541 and $63,000 as of April 30, 2026, and July 31, 2025, respectively.

The following schedule summarizes the changes in the Company's common stock warrants during the nine months ended April 30, 2026, 2026 and 2025:

					Weighted
				Weighted	Average
				Average	Contractual
	Number of			Exercise	Term
	Warrants			Price	(Years)
Balance outstanding at July 31, 2024
Granted	450,000		$	2.25	2.54
Exercised	-			-	-
Expired/Canceled	(150,000	)		1.50	-
Balance outstanding at April 30, 2025	300,000			2.63	2.04
Exercisable at April 30, 2025	300,000			2.63	2.04

Balance outstanding at July 31, 2025	300,000		$	2.63	1.54
Granted	-			-	-
Exercised	-			-	-
Expired/Canceled	-			-	-
Balance outstanding at April 30, 2026	300,000		$	2.63	0.79
Exercisable at April 30, 2026	300,000		$	2.63	0.79

The fair values of the warrant liabilities as of April 30, 2026 and July 31, 2025 were estimated using Black-Scholes option-pricing model with the following assumptions:

	April 30, 2026	July 31, 2025
Exercise Price	$1.50-$3.00	$1.50-$3.00
Risk-free interest rates	3.72%	3.96%
Expected life (in years)	0.79	1.55
Expected volatility	211%	1,228%
Dividend yield	0%	0%