v3.26.3
Taxes (Tables)
 12 Months Ended
Jul. 31, 2026
Taxes [Abstract]  
Schedule of (Loss) Income Before Income Tax

(Loss) income before income tax:

 

    For the years ended July 31,  
    2026     2025     2024  
Japan   $ (9,405,047 )   $ (999,790 )   $ 4,500,978  
Foreign     3,579,208       5,405,119       3,695,249  
(Loss) income before income tax   $ (5,825,839 )   $ 4,405,329     $ 8,196,227  
Schedule of Components of the Income Tax (Benefit) Expense

Components of the income tax (benefit) expense:

 

    For the years ended July 31,  
    2026     2025     2024  
Current – Japan   $ 3,403     $ 3,734     $ 3,551  
Current – outside Japan     702,398       65,998       480,272  
Total current tax provision     705,801       69,732       483,823  
                         
Deferred – Japan     (1,609,101 )     (346,791 )     1,556,888  
Deferred – outside Japan     (790,871 )     853,825       177,877  
Total deferred tax provision     (2,399,972 )     507,034       1,734,765  
                         
Total income tax (benefit) expense   $ (1,694,171 )   $ 576,766     $ 2,218,588  
Schedule of Reconciliation of Income Tax at the Statutory Rate

Under ASU 2023-09, the reconciliation of income tax at the statutory rate to the income tax benefit for the year ended July 31, 2026 was as follows:

 

    Year ended July 31, 2026  
    Amount     Percent  
(Loss) before income tax   $ (5,825,839 )        
Income tax at the Japanese statutory rate (34.59%)   $ (2,015,158 )     34.59 %
Effect of change in tax law – Japan Defense Special Corporate Tax     58,573       (1.01 )%
Nondeductible share-based compensation and other permanent items – Japan     661,890       (11.36 )%
Foreign tax effects:                
Singapore                
Statutory tax rate difference (17%)     (157,831 )     2.71 %
Prior-year current tax true-up     570,255       (9.79 )%
Release of opening deferred tax liability on developer advances     (994,720 )     17.07 %
Other     (13,416 )     0.23 %
PRC                
Statutory tax rate differences (25%; 5% for small low-profit enterprises)     (379,677 )     6.52 %
Development payroll deducted locally and capitalized in consolidation     (717,239 )     12.31 %
Other     24,553       (0.42 )%
Cayman Islands entities and consolidation adjustments not subject to tax     413,359       (7.10 )%
Other jurisdictions (Taiwan and the United States)     (29,315 )     0.50 %
Other adjustments – Japan:                
Capitalized development payroll of subsidiaries and VIEs without Japanese tax basis     1,127,911       (19.36 )%
Prior-year tax-loss carryforward true-up     (137,194 )     2.35 %
Other (lease deferred balance true-up and per-capita levy)     (106,162 )     1.82 %
Income tax benefit / effective tax rate   $ (1,694,171 )     29.08 %

For the years ended July 31, 2025 and 2024, the reconciliation from the Japanese statutory rate to the effective tax rate, presented under the requirements in effect before the prospective adoption of ASU 2023-09, was:

 

    For the years ended July 31,  
    2025     2024  
Japanese statutory rate     34.59 %     34.59 %
Tax rate differences in non-Japan subsidiaries     (21.72 )%     (6.82 )%
Nondeductible expenses     0.06 %     —  
Change in valuation allowance     0.16 %     (0.70 )%
Effective tax rate     13.09 %     27.07 %
Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities:

 

    As of July 31,  
    2026     2025  
Tax loss carryforwards   $ 1,248,523     $ 357,947  
Transfer-pricing true-ups deductible when invoiced and unrealized foreign exchange     1,395,024       —  
Lease liabilities     1,023,723       1,555,157  
Film amortization     325,199       165,146  
Fixed assets, software and asset retirement obligations     171,323       193,883  
Other     25,910       —  
Gross deferred tax assets   $ 4,189,702     $ 2,272,133  
Valuation allowance     —       (49,909 )
Prepaid royalties and advances to game developers     (4,550,388 )     (5,156,113 )
Right-of-use assets     (950,986 )     (1,534,321 )
Capitalized software (development payroll of subsidiaries and VIEs)     (1,103,721 )     —  
Transfer-pricing true-up receivables taxable when invoiced     (774,948 )     —  
Realized contingent gain     —       (1,607,769 )
Foreign-sourced interest, prepaid expenses and unrealized foreign exchange (Singapore)     (214,958 )     (83,115 )
Other     (121,561 )     —  
Gross deferred tax liabilities   $ (7,716,562 )   $ (8,381,318 )
Net deferred tax liabilities   $ (3,526,860 )   $ (6,159,094 )
Presented as: deferred tax assets, net     102,939       49,067  
Presented as: deferred tax liabilities, net     (3,629,799 )     (6,208,161 )
Schedule of Valuation Allowance

Movement in the valuation allowance for the years ended July 31, 2026, 2025 and 2024 is as follows:

 

    For the years ended July 31,  
    2026     2025     2024  
Beginning balance   $ 49,909     $ 56,911     $ —  
Additions     —       —       58,230  
Release     (47,701 )     (11,560 )     —  
Foreign currency translation     (2,208 )     4,558       (1,319 )
Ending balance     —     $ 49,909     $ 56,911  
Schedule of Income Taxes Paid (Refunded), Net

Income taxes paid (refunded), net, were as follows:

 

    For the years ended July 31,  
    2026     2025     2024  
Income taxes paid (refunded), net   $ (292,899 )   $ 4,527     $ 6,928  

 

    For the
year ended
July 31,		  
    2026  
Japan     3,403  
Foreign – Singapore     (332,660 )
Foreign – Taiwan     35,562  
Foreign – PRC     796  
Cayman Islands – federal or equivalent     —  
Cayman Islands – state and local     —  
Total foreign income taxes paid (refunded)   $ (296,302 )
Total income taxes paid (refunded)   $ (292,899 )
Schedule of Taxes Payable
    As of July 31,  
    2026     2025  
Income taxes payable   $ 1,054,431     $ 52,758  
Consumption tax payable – Japan     196,847       240,724  
Accrued Taiwan business tax (Note 18)     496,607       —  
VAT and other taxes – PRC     26,713       —  
Total tax payable   $ 1,774,598     $ 293,482