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Income Taxes (Tables)

12 Months Ended

Jul. 31, 2024

Income Tax Disclosure [Abstract]

Income before provision for income taxes

Loss before benefit from income taxes consists of the following:

						Fiscal Years Ended July 31,
						2024						2023						2022
U.S.						$	(65,374,000)					(21,327,000)						(31,772,000)
Foreign						(34,906,000)						(9,520,000)						(5,303,000)
						$	(100,280,000)					(30,847,000)						(37,075,000)

Provision for income taxes

The benefit from income taxes included in the accompanying Consolidated Statements of Operations consists of the following:

						Fiscal Years Ended July 31,
						2024						2023						2022
Federal – current						$	377,000					(258,000)						287,000
Federal – deferred						(2,345,000)						(4,623,000)						(4,888,000)
State and local – current						1,181,000						1,412,000						348,000
State and local – deferred						(834,000)						(815,000)						(442,000)
Foreign – current						1,137,000						958,000						1,197,000
Foreign – deferred						189,000						(622,000)						(525,000)
Benefit from income taxes						$	(295,000)					(3,948,000)						(4,023,000)

Provision for income taxes differed from amounts computed by applying the U.S. Federal income tax rate

The benefit from income taxes differed from the amounts computed by applying the U.S. Federal income tax rate as a result of the following:

						Fiscal Years Ended July 31,
						2024												2023												2022
						Amount						Rate						Amount						Rate						Amount						Rate
Computed "expected" tax benefit						$	(21,059,000)					21.0		%				(6,478,000)						21.0		%				(7,786,000)						21.0		%
Increase (reduction) in income taxes resulting from:
State and local income taxes, net of federal benefit						(127,000)						0.1						440,000						(1.4)						227,000						(0.6)
Stock-based compensation						1,891,000						(1.9)						692,000						(2.2)						1,049,000						(2.8)
Research and experimentation credits						(1,251,000)						1.2						(2,576,000)						8.4						(1,484,000)						4.0
Foreign-derived intangible income deduction						43,000						—						(517,000)						1.7						—						—
Revaluation of convertible preferred stock option liability						—						—						—						—						(211,000)						0.6
Revaluation of warrants						(897,000)						0.9						—						—						—						—
Nondeductible executive compensation						—						—						1,484,000						(4.8)						2,801,000						(7.6)
PST Divestiture						1,384,000						(1.4)						—						—						—						—
Change in valuation allowance						10,177,000						(10.0)						2,834,000						(9.2)						2,009,000						(5.4)
Remeasurement of deferred taxes						—						—						—						—						(396,000)						1.1
Foreign income taxes						(389,000)						0.4						(269,000)						0.9						(478,000)						1.3
Goodwill impairment						9,549,000						(9.5)						—						—						—						—
Other, net						384,000						(0.5)						442,000						(1.6)						246,000						(0.7)
Benefit from income taxes						$	(295,000)					0.3		%				(3,948,000)						12.8		%				(4,023,000)						10.9		%

Tax effects of temporary differences

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at July 31, 2024 and 2023 are presented below:

						2024						2023
Deferred tax assets:
Inventory and warranty reserves						$	4,685,000					6,147,000
Compensation and commissions						3,401,000						3,221,000
Federal, state and foreign research and experimentation credits						17,559,000						19,308,000
Capitalized U.S. research and experimental expenditures						12,177,000						8,784,000
Stock-based compensation						2,409,000						4,774,000
Foreign scientific research and experimental development expenditures						1,720,000						2,118,000
Federal, state and foreign net operating losses						18,289,000						13,011,000
Federal and state capital losses						14,473,000						15,582,000
Lease liabilities						8,999,000						11,986,000
Deferred revenue, non-current						4,664,000						4,463,000
163(j) Interest Expense Limitation						3,423,000						549,000
Other						1,278,000						1,868,000
Less: valuation allowance						(44,888,000)						(34,478,000)
Total deferred tax assets						48,189,000						57,333,000
Deferred tax liabilities:
Plant and equipment						(4,781,000)						(4,883,000)
Lease right-of-use assets						(7,116,000)						(10,510,000)
Intangibles						(42,563,000)						(50,843,000)
Total deferred tax liabilities						(54,460,000)						(66,236,000)
Net deferred tax liabilities						$	(6,271,000)					(8,903,000)

Summary of unrecognized tax benefits

The following table summarizes the activity related to our unrecognized tax benefits for fiscal years 2024, 2023 and 2022 (excluding interest):

						2024						2023						2022
Balance at beginning of period						$	8,956,000					9,675,000						9,009,000
Increase related to current period						181,000						681,000						598,000
Increase related to prior periods						130,000						51,000						153,000
Expiration of statute of limitations						(622,000)						(1,406,000)						(83,000)
Decrease related to prior periods						(264,000)						(45,000)						(2,000)
Balance at end of period						$	8,381,000					8,956,000						9,675,000

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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