v3.26.3
Segment Reporting
 12 Months Ended
Jul. 31, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 19 — SEGMENT REPORTING

 

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Group’s chief operating decision maker (“CODM”) in order to allocate resources and assess performance of the segment.

  

The management of the Group concludes that it has only one reporting segment. The Group provides game distribution and related services to game developers. The Group’s services have similar economic characteristics with respect to nature and form of the services provided. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews Consolidated results when making decisions about allocating resources and assessing performance of the Group, rather than by geographic area; hence the Group has only one reporting segment. CODM reviews operation results on the consolidated in-game purchase amount, revenue share with game developers and IP holders, advertising expenses, transaction fees, and server cost directly related to the host of games. The following table summarizes the operating results reviewed by CODM and reconciliation to net (loss) income before income tax expenses as reported in the consolidated statement of comprehensive (loss) income.

 

    For the years ended July 31,  
    2026     2025     2024  
Consolidated in-game purchases   $ 96,813,340     $ 106,994,440     $ 84,461,982  
Less: Revenue share with game developers and IP holders     15,093,625       15,898,478       14,975,047  
Transaction fee     4,526,299       5,265,054       3,812,118  
Advertising expense     41,013,358       52,396,511       37,309,197  
Server cost directly related to hosting the games     3,889,772       2,088,553       1,319,704  
Segment profits   $ 32,290,286     $ 31,345,844     $ 27,045,916  
Less: Payroll and related cost     17,325,876       13,621,485       9,756,710  
Lease expense     3,148,822       2,661,149       1,738,249  
Depreciation and amortization expense     2,076,874       2,702,360       2,099,728  
Impairment expense     2,635,761       3,632,218       447,904  
Recoup of advances made to game developers     3,222,344       3,583,143       2,477,840  
Other cost of sales (1)     4,490,687       2,087,031       1,563,366  
Other selling and marketing expenses (2)     2,346,442       1,713,981       1,402,889  
Other general and administrative expenses (3)     4,367,215       2,409,601       902,948  
Total other operating expense   $ 39,614,021     $ 32,410,968     $ 20,389,634  
(Loss) income from operations   $ (7,323,735 )   $ (1,065,124 )   $ 6,656,282  
Interest income, net     540,933       494,358       300,985  
Foreign currency transaction gain (loss)     293,764       (287,946 )     784,674  
Other income     424,638       555,012       454,286  
Contingent gain on recovery of previously impaired assets     238,561       4,709,029       —  
(Loss) income before income tax expense   $ (5,825,839 )   $ 4,405,329     $ 8,196,227  

 

(1) Other cost of sales mainly includes server and infrastructure cost that are not directly related to the host of a specific game and certain outsourcing cost.

 

(2) Other selling and marketing expenses mainly includes cost associated with meeting, travel and promotions.

 

(3) Other general and administrative expenses mainly includes cost associated with professional services, office supplies, recruiting and education.

 

Reconciliation of consolidated in-game purchases to revenue:

 

    For the years ended July 31,  
    2026     2025     2024  
Consolidated in-game purchases   $ 96,813,340     $ 106,994,440     $ 84,461,982  
Less: Recoup of advances made to game developers     (3,222,344 )     (3,583,143 )     (2,477,840 )
Less: Revenue share paid to game developers     (11,081,586 )     (13,040,504 )     (13,559,565 )
Consolidated revenue   $ 82,509,410     $ 90,370,793     $ 68,424,577  

 

As of July 31, 2026 and 2025, the Group’s long-lived assets by geographic locations are as follows:

 

    As of July 31,  
    2026     2025  
Japan   $ 14,819,946     $ 14,726,888  
Singapore     12,353,715       6,502,511  
Taiwan     3,437,081       4,481,573  
China     743,947       836,698  
United States     2,072,544       —  
Total   $ 33,427,233     $ 26,547,670