v3.26.3
Advance to Game Developers, Net
 12 Months Ended
Jul. 31, 2026
Advance to Game Developers, Net [Abstract]  
ADVANCE TO GAME DEVELOPERS, NET

NOTE 4 — ADVANCE TO GAME DEVELOPERS, NET

 

Advance to game developers, net consist of the following:

 

    As of July 31,  
    2026     2025  
Advance to game developers   $ 19,953,426     $ 22,677,194  
Less: allowance     (2,020,640 )     (8,115,468 )
Advance to game developers, net   $ 17,932,786     $ 14,561,726  

 

Movements in Advance to game developers for the years ended July 31, 2026, 2025 and 2024 are as follows:

 

    For the years ended July 31,  
    2026     2025     2024  
Beginning balance   $ 22,677,194     $ 22,134,756     $ 17,206,593  
Additional advances     9,230,299       7,379,759       7,037,522  
Amortization     (3,222,344 )     (3,433,290 )     (2,477,840 )
Write-off     (8,656,729 )     (3,375,786 )     —  
Foreign currency translation adjustments     (74,994 )     (28,245 )     368,481  
Ending balance   $ 19,953,426     $ 22,677,194     $ 22,134,756  
Less: allowance for credit loss     (2,020,640 )     (8,115,468 )     (7,967,665 )
Advance to game developers, net   $ 17,932,786     $ 14,561,726     $ 14,167,091  

 

Provision for valuation allowance movement is as follows:

 

Beginning balance     (8,115,468 )     (7,967,665 )     (7,411,099 )
Additions     (2,637,101 )     (3,157,669 )     (523,723 )
Reversals     1,340       10,258       122,272  
Write-off     8,656,729       3,375,786       —  
Foreign currency translation adjustments     73,860       (376,178 )     (155,115 )
Ending balance   $ (2,020,640 )   $ (8,115,468 )   $ (7,967,665 )

 

Impairment of advances to game developers, net of recoveries, recorded in research and development expenses was $2,635,761, $3,147,411 and $401,451 for the years ended July 31, 2026, 2025 and 2024, respectively. Recoveries arise when previously reserved balances are recouped through revenue share. Write-offs in 2026 related to fully reserved advances for games taken offline or terminated contracts and did not affect current-year net income.

 

As of July 31, 2026, net advances for games not yet launched, games in operation and games taken offline were $7,502,300, $10,430,210 and $276, respectively. For contracts covering multiple games, recovery and impairment are assessed at the contract level when revenue shares from those games are available to recoup the advances.