5. SOFTWARE DEVELOPMENT COSTS AND IMPAIRMENT

The Company is currently in the development stage and has not yet commenced commercial operations. In accordance with ASC 985‑20, Software Costs, the Company capitalizes certain costs incurred during the application development stage that are directly attributable to preparing the software for its intended use. These costs primarily include payments to independent contractors for coding, testing, and installation activities.

Routine maintenance, bug fixes, and support costs are expensed as incurred. Research and development activities that do not meet the capitalization criteria are also expensed in the period incurred.

As of July 31, 2026, the Company has capitalized $124,430 of software development costs. During the fiscal year ended July 31, 2026, management performed an impairment assessment in accordance with ASC 360, Property, Plant, and Equipment. Based on this evaluation, management determined that the carrying amount of the software exceeded its estimated recoverable amount due to delays in development and uncertainty regarding future commercialization.

Accordingly, the Company recognized an impairment loss of 30% of the capitalized software balance, amounting to $37,329, which has been recorded in the statement of operations under “Impairment Expense.” The remaining carrying amount of $87,101 represents management’s best estimate of the recoverable value of the software as of July 31, 2026.

Management will continue to monitor the progress of the software development and reassess the carrying amount of the asset at each reporting date.