9. Right of Use Asset

On March 23, 2026, the Company entered into a 24-month licence agreement commencing May 1, 2026, with monthly base lease fees of approximately $5,016 (comprised of $769 for office space and $4,246 for lab space), plus applicable operating costs and taxes, payable monthly in advance, with a one-month rent-free early access period prior to commencement and two additional base rent "holiday" months (one in each lease year) during which no base rent is payable.

Effective May 1, 2026, the Company began to recognize the lease in accordance with ASC 842. As of May 1, 2026, the Company recognized an Operating Lease - Right of Use non-current asset of $81,482 and a lease liability of $81,482. As of July 31, 2026, there was accumulated amortization of $9,841. A corresponding current lease liability of $39,249 and a long-term lease liability of $33,233.

When measuring lease liabilities for leases that classified as operating leases, the Company discounted lease payments using the estimated incremental borrowing rate at the later of the lease inception or May 1, 2026, the date of adoption of the ASC 842. The weighted average incremental borrowing rate applied was 3.75%.

The following table presents the net lease cost and other supplemental lease information:

		Nine months ending July 31,
		2026		2025
Lease cost:				-
Operating lease cost	$	10,378	$	-
Short-term lease cost		-		-
Net lease cost	$	10,378	$	-
Cash paid for operating lease liabilities	$	7,478	$	-

As of July 31, 2026, the estimated future minimum lease payments, excluding non-lease components, are as follows:

Fiscal Year
2026 (remaining)	$	11,217
2027		41,127
2028		22,433
Total future minimum annual lease payments	$	74,777
Less: Imputed interest		2,295
Present value of lease liability	$	72,482

In connection with the execution of the lease agreement, the Company paid a security deposit of $18,475. A portion of the deposit will be applied toward rental payments of $6,158 within the first twelve months following lease commencement, with the remaining balance of $12,317, which includes the last month lease payment and a refundable security deposit upon expiration of the lease term, subject to the terms of the agreement.

As of July 31, 2026, the Company has recognized the security deposit of $18,475 as a non-current asset in the accompanying unaudited condensed balance sheet.