Leases

3 Months Ended

Oct. 31, 2023

Leases [Abstract]

LEASES

NOTE 9 – LEASES

The leased properties have a remaining lease term of five to sixty months as of October 31, 2023. At the option of the Company, it can elect to extend the term of the leases. See table below:

Location	Annual Rent		Lease Expiration Date	Business Use	Approx. Sq. Ft.
8023 Vantage Dr., Suite 660, San Antonio, Texas 78230	$	49,136	Sep-27	Executive offices		2,843
10967 Via Frontera, San Diego, CA 92127	$	369,229	Mar-26	Office space		18,541
1610 Royal Palm Avenue, Suite 300, Fort Myers, FL 33901	$	83,260	Dec-25	Office space and network facilities		6,800
2121 Ponce de Leon Blvd., Suite 200, Coral Gables FL 33134	$	106,553	Dec-27	Office space & wireless internet network		4,623
7218 McNeil Dr., FL-1, Austin, TX 78729	$	21,000	Mar-24	Network facilities		25
9701 S. John Young Parkway, Orlando, FL 32819	$	25,440	May-26	Network facilities		540
8333 NW 53rd St, Doral, FL 33166	$	14,021	Jul-25	Wireless internet network		100
100 SE 2nd Street, Miami, FL 33131	$	36,466	Jan-24	Wireless internet network		100
9055 SW 73rd Ct, Miami, FL 33156	$	8,787	Dec-23	Wireless internet network		100
9517 Fontainebleau Blvd., Miami, FL 33172	$	11,907	Aug-24	Wireless internet network		100

The Company has not entered into any sale and leaseback transactions during the quarter ended October 31, 2023.

On May 17, 2022, the Company extended the office and wireless internet network leases in Coral Gables, Florida. The Company accounted for the extension as a lease modification. The Company used the discount rate of 4% and recognized $482,865 as a day one Right-of-Use asset and liability. These leases are identified in the table above. The leases expire in December 2027, and at the option of the Company, the leases can be extended for various periods ranging from one to five years, with a base rent at the prevailing market rate at the time of the renewal.

In February 2022, as part of the acquisition of NLI, the Company secured an office lease, with a monthly base lease payment of $30,222. The lease expires in March 2026. At the option of the Company, the lease can be extended for two additional five-year terms, with a base rent at the prevailing market rate at the time of the renewal. The Company is not reasonably certain that it will exercise the renewal option.

In December 2021, as part of the acquisition of Skynet’s assets, the Company assumed an office lease in San Antonio, Texas. In May 2022, the lease was extended until September 2027, and at the option of the Company, the lease can be extended for a period of five years, with a base rent at the prevailing market rate at the time of the renewal. The Company accounted for the extension as a lease modification.

Amounts recognized as of July 31, 2023 and October 31, 2023 for operating leases are as follows:

ROU Asset	July 31, 2023	$	1,911,639
Amortization		$	(182,139	)
Addition - Asset		$	-
ROU Asset	October 31, 2023	$	1,729,500
Lease Liability	July 31, 2023	$	1,981,976
Amortization		$	(182,139	)
Addition - Liability		$	-
Lease Liability	October 31, 2023	$	1,799,837
Lease Liability	Short term	$	629,424
Lease Liability	Long term	$	1,170,413
Lease Liability	Total:	$	1,799,837
Operating lease cost:		$	212,349
Cash paid for amounts included in the measurement of lease labilities:
Operating cashflow from operating leases:		$	212,349
Weighted-average remain lease term-operating lease:			2.9 years
Weighted-average discount rate			5.0	%

The future minimum lease payment under the operating leases are as follows:

	Lease
Period Ending July 31,	Payments
2024	$	594,880
2025		729,724
2026		431,377
2027		176,771
2028		60,116
Total:	$	1,992,868
Less: amounts representing interest		193,031
Present value of net minimum operating lease payments	$	1,799,837