Business Divestiture

12 Months Ended

Jul. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

On November 7, 2023, we completed the divestiture of our solid-state RF microwave high power amplifiers and control components product line, which was included in our Satellite and Space Communications segment, pursuant to a stock sale agreement entered into on October 11, 2023 (the "PST Divestiture"). The final sales price for this divestiture was $35,459,000. As of July 31, 2024, we received net cash proceeds of $33,277,000, which reflects $2,182,000 of transaction costs. Based on the carrying amount of net assets related to the PST Divestiture (see below table), we recognized a GAAP pre-tax loss of $1,199,000. Such loss is presented in the "Loss on Business Divestiture" line item in our Consolidated Statements of Operations.

The carrying amount of the major classes of assets and liabilities related to the PST Divestiture ("PST Disposal Group") as of November 7, 2023 are as follows:


Cash and cash equivalents	$	(71,000)
Accounts receivable, net	4,168,000
Inventories, net	17,822,000
Prepaid expenses and other current assets	201,000
Property, plant and equipment, net	2,790,000
Operating lease right-of-use assets, net	5,379,000
Goodwill	14,587,000
Other assets, net	35,000
Total assets of disposal group held for sale	$	44,911,000

Accounts payable	$	3,081,000
Accrued expenses and other current liabilities	1,622,000
Operating lease liabilities, current	545,000
Contract liabilities	656,000
Operating lease liabilities, non-current	4,894,000
Deferred tax liability, net	(363,000)
Total liabilities of disposal group held for sale	$	10,435,000