NOTE 7 – OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

On May 1, 2021, the Company entered into a lease agreement for a facility in Cheyenne, Wyoming. Since then, the Company and the lessor have executed a number of amendments to the original lease agreement, each of which extended the initial lease term and increased the amount of the monthly base rent payment. Pursuant to the most recent (fourth) lease amendment, the lease term was extended through April 30, 2027, and the monthly base rent payment amount was increased to $1,932. The Company accounted for the lease agreement and subsequent lease amendments under ASC 842 and, accordingly, has recorded a right-of-use asset and a lease liability, both of which are reflected in the unaudited condensed consolidated balance sheets presented herein. The amount attributed to the right-of-use asset and lease liability as of the dates presented was calculated using an incremental borrowing rate of 9.95%.

On September 1, 2021, the Company entered into a lease agreement for another facility in Cheyenne, Wyoming. Since then, the Company and the lessor have executed a number of amendments to the original lease agreement, each of which extended the initial lease term and increased the amount of the monthly base rent payment. Pursuant to the most recent (second) lease amendment, the lease term was extended through August 31, 2027, and the monthly base rent payment amount was increased to $3,600. The Company accounted for the lease agreement and subsequent lease amendments under ASC 842 and, accordingly, has recorded a right-of-use asset and a lease liability, both of which are reflected in the unaudited, condensed consolidated balance sheets presented herein. The amount attributed to the right-of-use asset and lease liability as of the dates presented was calculated using an incremental borrowing rate of 9.95%.

During the three months ended July 31, 2026 and 2025, lease expense of $20,599 and $19,239, respectively, was included in general and administrative expenses as reflected in the accompanying unaudited condensed consolidated statements of operations.

Right-of- use assets are summarized below:

SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES 

U.S. GOLD CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JULY 31, 2026

Operating Lease liabilities are summarized below:

The weighted average remaining lease term for the operating leases is 1.39 years, and the weighted average incremental borrowing rate is 9.95% at July 31, 2026.

The following table includes supplemental cash and non-cash information related to the Company’s leases:

 SCHEDULE OF SUPPLEMENTAL CASH AND NON-CASH INFORMATION

The remaining minimum lease payments under non-cancelable operating leases at July 31, 2026, are as follows:

  SCHEDULE OF MINIMUM LEASE PAYMENTS UNDER NON-CANCELABLE OPERATING LEASES