Inventories

12 Months Ended

Jul. 31, 2025

Inventories consist of the following at July 31, 2025 and 2024:


	2025		2024
Raw materials and components	$	64,022,000	72,820,000
Work-in-process and finished goods	31,356,000		38,587,000
Total inventories	95,378,000		111,407,000
Less reserve for excess and obsolete inventories	26,423,000		18,271,000
Inventories, net	$	68,955,000	93,136,000

As of July 31, 2025 and 2024, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $2,612,000 and $2,869,000, respectively, and the amount of inventory related to contracts from third-party commercial customers who outsource their manufacturing to us was $1,583,000 and $2,204,000, respectively.

As discussed in Note (1)(c) – Summary of Significant Accounting and Reporting Policies – Liquidity, in connection with our initiatives to transform our Company (e.g., reevaluating our business plans to identify opportunities to focus future investment on our most strategic, high-margin revenue opportunities), during the first quarter of fiscal 2025, we recorded a non-cash charge of $11,369,000 within Cost of sales on our Consolidated Statement of Operations. Such non-cash charge primarily related to the write down of inventory associated with approximately 70 products within our satellite ground infrastructure product line that were discontinued. As discussed in Note (3) – Business Divestitures, such non-cash charge also included the write down of inventory associated with the CGC Divestiture, which inventory was determined during the first quarter of fiscal 2025 to no longer be salable.

During fiscal 2025, we also expensed $1,082,000 of work in process inventory related to certain loss contracts in our satellite ground infrastructure product line accounted for under the point in time revenue recognition model.