Equipment Financing

6 Months Ended

Jan. 31, 2023

Receivables [Abstract]

EQUIPMENT FINANCING

NOTE 10 – EQUIPMENT FINANCING

The Company entered into various financing agreement for equipment purchased. Under the term of the agreements, assets with a cost of approximately $403,913, were financed under various financing agreements during the six months ended January 31, 2023. The equipment financing is net of costs associated with the assets such as maintenance, insurance and property taxes are for the account of the Company. The equipment financing agreements are between twelve (12) months and sixty (60) months, with the first payments starting July 1, 2022, and monthly principal and interest payments of up to $3,600. The interest rate under the financing agreement is at 5.0% per annum.

Amounts recognized as of July 31, 2022 and January 31, 2023 for equipment financing are as follows:

ROU Asset	July 31, 2022	$	62,263
Amortization		$	(54,109	)
Addition - Asset		$	365,083
ROU Asset	January 31, 2023	$	373,237
Equipment Financing	July 31, 2022	$	62,263
Amortization		$	(52,109	)
Addition - Equipment Financing		$	365,083
Equipment Financing	January 31, 2023	$	375,237
Equipment Financing	Short term	$	126,738
Equipment Financing	Long term	$	248,499
Equipment Financing	Total:	$	375,237

The future payments under the equipment financing agreements are as follows:

Year	Amount
2023*	$	95,094
2024		135,604
2025		125,478
2026		42,527
2027		4,600
2028		1,533
Total future payments:	$	404,836

* remaining 6 Months

Less: amounts representing interest		29,599
Present value of net minimum equipment financing payments	$	375,237
Lease cost:
Amortization of ROU assets	$	54,109
Interest on lease liabilities		15,626
Cash paid for amounts included in the measurement of lease liabilities:
Operating cashflow from equipment financing:	$	15,626
Financing cashflow from equipment financing:		54,109
Weighted-average remaining lease term - equipment financing:		2.8 years
Weighted-average discount rate		5.0	%