| Schedule of CODM and Reconciliation to Net Income as Reported in the Consolidated Statement of Comprehensive Income |
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. |
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| Schedule of Consolidated in-Game Purchases to Revenue |
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 | |
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| Schedule of Long-Lived Assets by Geographic Locations |
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 | |
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