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Income Taxes | 12 Months Ended
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Jul. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 14 – INCOME TAXES At July 31, 2022, the Company has federal net operating loss (“NOL”) carryforwards from domestic operations of approximately $54.9 million, to offset future taxable income. The Company has state NOLs of $35.7 million. The Company has NOLs from foreign operations of $4.9 million. As part of the Tax Act, federal NOLs generated in 2018 and later are not subject to an expiration period and are available to offset 80% of taxable income in the year in which they are utilized. The federal NOL carryforwards generated prior to 2018 will begin to expire in 2026. The state NOLs will begin to expire in 2038 and foreign NOLs do not expire. The components of loss from continuing operations before income taxes are as follows:
|  | For the Years Ended July 31, |
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
Domestic |  | $ | (137,978 | ) |  | $ | (22,546 | )
Foreign |  |  | (1,994 | ) |  |  | (880 | )
Loss before income taxes |  | $ | (139,972 | ) |  | $ | (23,426 | )
(Provision for) benefit from income taxes as presented in the consolidated statements of operations and comprehensive loss consisted of the following:
|  | For the Year Ended July 31, |
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
Current: |  |  |  |  |  |
Foreign |  | $ | — |  |  | $ | (19 | )
Federal |  |  | — |  |  |  | — |
State |  |  | — |  |  |  | 1 |
Total current expense |  |  | — |  |  |  | (18 | )
Deferred: |  |  |  |  |  |  |  |
Foreign |  |  | — |  |  |  | — |
Federal |  |  | — |  |  |  | — |
State |  |  | — |  |  |  | — |
Total deferred expense |  |  | — |  |  |  | — |
Provision for income taxes |  | $ | — |  |  | $ | (18 | )
The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes are reported as follows:
|  | At July 31, |
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
U.S. federal income tax at statutory rate |  | $ | 29,514 |  |  | $ | 4,952 |
State income tax |  |  | 8,752 |  |  |  | 1,571 |
Valuation allowance |  |  | (35,001 | ) |  |  | (6,560 | )
Foreign tax rate differential |  |  | 459 |  |  |  | 203 |
Tax law change |  |  | — |  |  |  | — |
Permanent differences |  |  | (3,632 | ) |  |  | — |
Rate change |  |  | — |  |  |  | — |
Other |  |  | (92 | ) |  |  | (184 | )
Provision for income taxes |  | $ | — |  |  | $ | (18 | )
The Company has not recorded U.S. income tax expense for foreign earnings because it has not generated any foreign earnings. Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:
|  | At July 31, |
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 15,170 |  |  | $ | 12,495 |
Unrealized gain/loss |  |  | 31,850 |  |  |  | 968 |
Depreciation |  |  | 1 |  |  |  | — |
Reserves and accruals |  |  | 236 |  |  |  | — |
Stock-based compensation |  |  | 1,839 |  |  |  | 2,096 |
Gross deferred tax assets |  |  | 49,096 |  |  |  | 15,559 |
Less valuation allowance |  |  | (49,096 | ) |  |  | (15,559 | )
Total deferred tax assets |  |  | — |  |  |  | — |
Total deferred tax liabilities |  |  | — |  |  |  | — |
Deferred tax assets, net |  | $ | — |  |  | $ | — |

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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