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Discontinued Operations | 12 Months Ended
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Jul. 31, 2022
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | NOTE 2 – DISCONTINUED OPERATIONS On July 1, 2022, the Company determined that the building located at 520 Broad Street in Newark, New Jersey, and an associated 800-car public garage (the “520 Property”) met the held-for-sale criteria and the Company has therefore classified the 520 Property as held-for-sale in the consolidated balance sheets at July 31, 2022 and 2021. The sale of the 520 Property also represents a significant strategic shift that will have a major effect on the Company’s operations and financial results. Therefore, the Company has classified the results of operations related to the 520 Property as discontinued operations in the consolidated statements of operations and comprehensive loss. Depreciation on the 520 Property has ceased on July 1, 2022, as a result of the Property being classified as held-for-sale. During the third and fourth quarters of 2022, the buyer deposited a total of $3.25 million in non-refundable deposits in escrow as part of the full purchase price of the 520 Property. The Company has included these non-refundable deposits as a contract deposit in the prepaid expenses and other current assets section of the balance sheet, and a corresponding deferred liability presented in other current liabilities on the consolidated balance sheet. On August 22, 2022, Broad Atlantic Associates, LLC, a wholly-owned subsidiary of the Company, completed the sale of the 520 Property for a purchase price of $49.4 million. The 520 Property was encumbered by a mortgage securing a $15 million note payable which was paid off in this transaction. Refer to Note 12 for further information on the note payable. After repaying the note payable, commissions, taxes, and other related costs, the Company received a net cash amount of approximately $33 million at closing. The carrying value of major classes of assets and liabilities related to discontinued operations at July 31, 2022 and 2021 were as follows ($ in thousands):
|  | Year Ended July 31, 2022 |
Current assets held-for-sale |  |  |
Building and Improvements |  | $ | 45,437 |
Land |  |  | 10,412 |
Furniture and Fixtures |  |  | 1,145 |
Other |  |  | 205 |
Property and equipment |  |  | 57,199 |
Less Accumulated Depreciation |  |  | (17,005 | )
Property and equipment, net |  | $ | 40,194 |
Total current assets held-for-sale |  | $ | 40,194 |
Total assets held-for-sale |  | $ | 40,194 |
Current liabilities |  |  |  |
Note payable, net of debt issuance costs, held-for-sale |  | $ | 15,000 |
|  | Year Ended July 31, 2021 |
Non-current assets held-for-sale |  |  |
Building and Improvements |  | $ | 45,336 |
Land |  |  | 10,412 |
Furniture and Fixtures |  |  | 1,145 |
Other |  |  | 205 |
Property and equipment |  |  | 57,098 |
Less Accumulated Depreciation |  |  | (15,700 | )
Property and equipment, net |  | $ | 41,398 |
Total non-current assets held-for-sale |  | $ | 41,398 |
Total assets held-for-sale, non-current |  | $ | 41,398 |
Current liabilities |  |  |  |
Note payable, net of debt issuance costs, held-for-sale |  | $ | 14,528 |
The current portion of deferred rental income included in Prepaid Expenses and Other Current Assets was approximately $150 thousand and $111 thousand as of July 31, 2022 and 2021, respectively. The noncurrent portion of deferred rental income included in Other Assets was approximately $1.3 million and $1.5 million as of July 31, 2022 and 2021, respectively. The deferred rental income pertains to the 520 Property and shall be settled at the date of the sale of the 520 Property with the other working capital accounts of 520 Broad Street. Discontinued operations includes (i) rental and parking revenues, (ii) payroll, benefits, facility costs, real estate taxes, consulting and professional fees dedicated to the 520 Property, (iii) depreciation and amortization expenses and (iv) interest (including amortization of debt issuance costs) on the note payable on the 520 Property. The operating results of these items are presented in our consolidated statements of operations and comprehensive loss as discontinued operations for all periods presented. The following table details the components comprising net loss from our discontinued operations ($ in thousands):
|  | Year Ended July 31, |
|  | 2022 |  |  | 2021 |
Revenue from discontinued operations: |  |  |  |  |  |
Rental – Third Party |  | $ | 644 |  |  | $ | 676 |
Rental – Related Party |  |  | 2,161 |  |  |  | 1,991 |
Parking |  |  | 694 |  |  |  | 502 |
Total revenue from discontinued operations |  |  | 3,499 |  |  |  | 3,169 |
Costs and expenses from discontinued operations: |  |  |  |  |  |  |  |
Selling, general and administrative |  |  | 2,683 |  |  |  | 3,392 |
Depreciation and amortization |  |  | 1,317 |  |  |  | 1,390 |
Loss from discontinued operations |  |  | (501 | ) |  |  | (1,613 | )
Other income |  |  | 157 |  |  |  | — |
Interest expense |  |  | (1,486 | ) |  |  | (92 | )
Loss from discontinued operations before income taxes |  |  | (1,830 | ) |  |  | (1,705 | )
Income tax benefit/expense |  |  | — |  |  |  | — |
Net loss from discontinued operations |  | $ | (1,830 | ) |  | $ | (1,705 | )

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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