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Operating Leases | 3 Months Ended
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Oct. 31, 2022
Leases [Abstract] |
OPERATING LEASES | NOTE 9 – OPERATING LEASES The Company leases offices space under non-cancelable operating leases, with lease terms ranging between 14 months to 60 months. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Rent expense for the three months ended October 31, 2022 and 2021 was $120,692 and $156,091, respectively. Effective August 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method, which allows the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allows the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. The following table presents the operating lease related assets and liabilities recorded on the unaudited condensed consolidated balance sheets as of October 31, 2022 and July 31, 2022.
|  | October 31, 2022 |  |  | July 31, 2022 |
|  | (unaudited) |  |  |  |
Right-of- use assets, net |  | $ | 1,389,613 |  |  | $ | 1,383,464 |
Operating lease liabilities, current |  |  | 523,532 |  |  |  | 433,061 |
Operating lease liabilities, noncurrent |  |  | 946,265 |  |  |  | 985,249 |
Total operating lease liabilities |  | $ | 1,469,797 |  |  | $ | 1,418,310 |
The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of October 31, 2022 and July 31, 2022:
|  | October 31, 2022 |  |  | July 31, 2022 |
|  | (unaudited) |  |  |  |
Remaining lease term and discount rate |  |  |  |  |  |
Weighted average remaining lease term (years) |  |  | 3.81 |  |  |  | 3.95 |
Weighted average discount rate |  |  | 4.90 | % |  |  | 4.90 | %
The following is a schedule of maturities of lease liabilities as of July 31, 2022 and 2021:
|  | October 31, 2022 |  |  | July 31, 2022 |
|  | (unaudited) |  |  |  |
For the nine months/twelve months ended July 31, 2023 |  | $ | 582,341 |  |  | $ | 492,969 |
For the twelve months ended July 31, 2024 |  |  | 353,221 |  |  |  | 390,468 |
For the twelve months ended July 31, 2025 |  |  | 267,240 |  |  |  | 240,000 |
For the twelve months ended July 31, 2026 |  |  | 264,970 |  |  |  | 240,000 |
For the twelve months ended July 31, 2027 and thereafter |  |  | 140,000 |  |  |  | 200,000 |
Total lease payments |  |  | 1,607,772 |  |  |  | 1,563,438 |
Less: imputed interest |  |  | (137,975 | ) |  |  | (145,128 | )
Present value of lease liabilities |  | $ | 1,469,797 |  |  | $ | 1,418,310 |

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- References No definition available. + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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