XML 57 R41.htm IDEA: XBRL DOCUMENT v3.25.3

Income Taxes (Tables)

12 Months Ended

Jul. 31, 2025

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,
						2025						2024						2023
U.S.						$	(135,111,000)					(65,374,000)						(21,327,000)
Foreign						(20,271,000)						(34,906,000)						(9,520,000)
						$	(155,382,000)					(100,280,000)						(30,847,000)

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,
						2025						2024						2023
Federal – current						$	673,000					377,000						(258,000)
Federal – deferred						—						(2,345,000)						(4,623,000)
State and local – current						514,000						1,181,000						1,412,000
State and local – deferred						—						(834,000)						(815,000)
Foreign – current						433,000						1,137,000						958,000
Foreign – deferred						(1,700,000)						189,000						(622,000)
Benefit from income taxes						$	(80,000)					(295,000)						(3,948,000)

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,
						2025												2024												2023
						Amount						Rate						Amount						Rate						Amount						Rate
Computed "expected" tax benefit						$	(32,630,000)					21.0		%				(21,059,000)						21.0		%				(6,478,000)						21.0		%
Increase (reduction) in income taxes due to:
State and local income taxes, net of valuation allowance and federal benefit						406,000						(0.2)						(127,000)						0.1						440,000						(1.4)
Stock-based compensation						1,017,000						(0.6)						1,891,000						(1.9)						692,000						(2.2)
Research and experimentation credits						(1,125,000)						0.7						(1,251,000)						1.2						(2,576,000)						8.4
Foreign-derived intangible income deduction						—						—						43,000						—						(517,000)						1.7
Revaluation of warrants and embedded derivatives						(8,085,000)						5.2						(897,000)						0.9						—						—
Nondeductible executive compensation						102,000						(0.1)						—						—						1,484,000						(4.8)
PST Divestiture						—						—						1,384,000						(1.4)						—						—
Change in U.S. federal and foreign valuation allowances						24,929,000						(16.0)						10,177,000						(10.0)						2,834,000						(9.2)
Foreign income tax rate differential						(804,000)						0.5						(389,000)						0.4						(269,000)						0.9
Goodwill impairment						15,975,000						(10.3)						9,549,000						(9.5)						—						—
Other, net						135,000						(0.1)						384,000						(0.5)						442,000						(1.6)
Benefit from income taxes						$	(80,000)					0.1		%				(295,000)						0.3		%				(3,948,000)						12.8		%

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, 2025 and 2024 are presented below:

						2025						2024
Deferred tax assets:
Inventory and warranty reserves						$	7,026,000					4,685,000
Compensation and commissions						4,414,000						3,401,000
Federal, state and foreign research and experimentation credits						18,134,000						17,559,000
Capitalized U.S. research and experimental expenditures						11,188,000						12,177,000
Stock-based compensation						1,505,000						2,409,000
Foreign scientific research and experimental development expenditures						2,006,000						1,720,000
Federal, state and foreign net operating losses						24,373,000						18,289,000
Federal and state capital losses						14,473,000						14,473,000
Lease liabilities						8,455,000						8,999,000
Deferred revenue, non-current						3,390,000						4,664,000
Interest expense limitation						13,411,000						3,423,000
Other						7,054,000						1,278,000
Less: valuation allowance						(70,973,000)						(44,888,000)
Total deferred tax assets, net						44,456,000						48,189,000
Deferred tax liabilities:
Plant and equipment						(3,379,000)						(4,781,000)
Lease right-of-use assets						(6,757,000)						(7,116,000)
Intangibles						(38,752,000)						(42,563,000)
Total deferred tax liabilities						(48,888,000)						(54,460,000)
Net deferred tax liabilities						$	(4,432,000)					(6,271,000)

Summary of unrecognized tax benefits

The following table summarizes the activity related to our unrecognized tax benefits for fiscal years 2025, 2024 and 2023 (excluding interest):

						2025						2024						2023
Balance at beginning of period						$	8,381,000					8,956,000						9,675,000
Increase related to current period						89,000						181,000						681,000
Increase related to prior periods						8,000						130,000						51,000
Expiration of statute of limitations						(569,000)						(622,000)						(1,406,000)
Decrease related to prior periods						(65,000)						(264,000)						(45,000)
Balance at end of period						$	7,844,000					8,381,000						8,956,000

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-9

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-2

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(1)(Note 1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 217
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-217

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration