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Income Taxes
 12 Months Ended
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  $
—
   $
—