Company: MYCB
Filing Date: 2025-03-17
Form Type: 10-Q
Source: 0001640334-25-000414
Chunk: 4

Company: My City Builders, Inc.
Filing Date: 2025-03-17
Form: 10-Q
Item: Part II, Item 8
Chunk 4
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 stated at cost less accumulated depreciation. We capitalize all costs incurred to acquire, develop, construct, renovate and improve real estate property as part of major repair and maintenance programs, including interest and property taxes incurred during the construction period. We expense routine repair and maintenance costs as incurred. Depreciation is calculated using the straight-line over the estimated useful lives which are reviewed periodically and generally have the following ranges: Home for rent: 27 years and Vehicle for 3 years. Construction in progress is not depreciated until ready for service. The amount of interest capitalized during the six months ended January 31, 2025, and 2024, are $6,605 and $16,000, respectively. Homes inventory for sales  Homes inventory for sales are the homes that Company intended to sell. The homes inventory for sales are stated at lower cost or net realizable value, with cost and net realizable value determined by the specific identification of each home. The costs include initial purchase costs, title cost, restoration and repairs costs. The Company reviews inventory for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying value of inventory may not be recoverable. Impairment of Long-Lived Assets Long-lived assets with finite lives, primarily investments, real estate inventories, property, and equipment, including real estate properties held for lease, and operating lease right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value.

 F-8Table of Contents

Lessor accounting – operating leases We account for the revenue from our lease contracts by utilizing the single component accounting policy. This policy requires us to account for, by class of underlying asset, the lease component and non-lease component(s) associated with each lease as a single component if two criteria are met:  (i)the timing and pattern of transfer of the lease component and the non-lease component(s) are the same; and (ii)the lease component would be classified as an operating lease if it were accounted for separately. Lease components consist primarily of fixed rental payments, which represent scheduled rental amounts due under our leases. Non-lease components consist primarily of tenant recoveries representing reimbursements of rental operating expenses, including