NOTE 10 – CUSTOMER DEPOSITS

The Company commenced revenue-generating operations through its HerboPay application during the six months ended July 31, 2026. HerboPay enables customers to access and utilize various products, services, and applications available through the platform. Customers may pre-fund their accounts by depositing funds into the HerboPay platform. In exchange, customers receive digital token balances that may be redeemed for future transactions, services, and other permitted activities within the HerboPay ecosystem. Such deposits do not represent earned revenue at the time funds are received, as the Company has not yet satisfied the related performance obligations associated with the future use of the deposited funds. Amounts received from customers that remain unused are recorded as customer deposits, a current liability, until the related services are provided, the token balances are redeemed, or the underlying obligation is otherwise extinguished. Revenue is recognized when the applicable performance obligations are satisfied in accordance with the Company's revenue recognition policy. As of July 31, 2026, customer deposits totaled $7,442 and are presented as a separate current liability on the accompanying balance sheet. The Company expects substantially all outstanding customer deposit balances to be utilized or redeemed within the next twelve months.