Commitments and Contingencies

3 Months Ended

Oct. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10 – Commitments and Contingencies

Right-of-Use Operating Lease – Related Party

In connection with the acquisition of OL on May 31, 2022, the Company acquired an existing Right-of-Use operating lease for office space. The lease has an initial term of two (2) years at $500 per month. The lease does not contain any renewal options.

During the period September 1, 2021 through May 31, 2022 no rent was due. The Company is required to pay a total of $7,500 over a fifteen-month (15) period from June 1, 2022 through August 31, 2023.

Beginning September 1, 2023, the lease was renewed under the same terms on a month-to-month basis.

The Company is leasing the office space from a family member of OL’s Chief Executive Officer.

At October 31, 2023 and July 31, 2023, the Company had no financing leases as defined in ASC 842, “Leases.”

The tables below present information regarding the Company’s operating lease assets and liabilities at October 31, 2023 and July 31, 2023:

	October 31, 2023		July 31, 2023
Assets
Operating lease - right-of-use asset - non-current	$	-	$	278
Liabilities
Operating lease liability	$	-	$	498
Weighted-average remaining lease term (years)		-		0.08
Weighted-average discount rate		-		8	%

The Company had the following operating lease costs for the Three Months Ended October 31, 2023 and 2022, respectively.

Operating lease costs	October 31, 2023		October 31, 2022
Amortization of right-of-use operating lease asset	$	278	$	838
Lease liability expense in connection with obligation repayment		3		115
Total operating lease costs	$	281	$	953
Supplemental cash flow information related to operating leases was as follows:
Operating cash outflows from operating lease (obligation payment)	$	498	$	1,385
Right-of-use asset obtained in exchange for new operating lease liability	$	-	$	-

Student Athlete Licensing Agreements

The Company has entered into several agreements with student athletes related to the sale of NFT and related collectibles.

There may be initial sales as well as resales of these products. The Company and the student athlete have agreed to split the revenue from the initial sale. Additionally, the Company will pay the student athlete a commission for any resales.

At October 31, 2023 and July 31, 2023, respectively, the Company owed a nominal amount to various student athletes, which has been included as a component of accounts payable and accrued expenses in the consolidated balance sheets.