Equipment Financing

3 Months Ended

Oct. 31, 2023

Equipment Financing [Abstract]

EQUIPMENT FINANCING

NOTE 10 – EQUIPMENT FINANCING

The Company entered into various financing agreements for equipment purchased. Under the term of the agreements, assets with a cost of approximately $558,463, were financed under various financing agreements during the three months ended October 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 5.0% per annum.

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

ROU Asset	July 31, 2023	$	577,566
Amortization		$	(36,016	)
Addition - Asset		$	558,463
ROU Asset	October 31, 2023	$	1,100,013
Equipment Financing	July 31, 2023	$	581,505
Amortization		$	(164,312	)
Addition - Equipment Financing		$	558,463
Equipment Financing	October 31, 2023	$	975,656
Equipment Financing	Short term	$	244,506
Equipment Financing	Long term	$	731,150
Equipment Financing	Total:	$	975,656

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

Year	Amount
2024	$	314,597
2025		380,832
2026		328,462
2027		12,637
2028		1,141
Total future payments:	$	1,037,669
Less: amounts representing interest		62,013
Present value of net minimum equipment financing payments	$	975,656
Lease cost:
Amortization of ROU assets	$	36,016
Interest on lease liabilities		35,577
Cash paid for amounts included in the measurement of lease liabilities:
Operating cashflow from equipment financing:	$	35,577
Financing cashflow from equipment financing:		164,312
Weighted-average remaining lease term - equipment financing:		2.4 years
Weighted-average discount rate		5.0	%