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Income Taxes
 6 Months Ended
Jan. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 13 – INCOME TAXES

 

During the six months ended January 31, 2022 and 2021, the Company recognized an income tax provision of $0 on loss before income tax of $131,397, and $0 on a loss before income tax of $9,851, respectively. The change in income tax expense in relation to the loss before income tax during the six months ended January 31, 2022 compared to the six months ended January 31, 2021 was primarily due to differences in the amount of taxable (loss) income in the various taxing jurisdictions and the associated valuation allowances. As of January 31, 2022 and 2021, the Company recorded valuation allowances for the total deferred tax asset balances, which included a net increase of approximately $31.7 million, primarily due to the impairment of the investment in Rafael Pharmaceuticals, which has been fully reserved for.

 

The Company anticipates that its assumptions and estimates may change as a result of future guidance and interpretation from the Internal Revenue Service, the SEC, the FASB, and various other taxing jurisdictions. In particular, the Company anticipates that the U.S. state jurisdictions will continue to determine and announce their conformity with or decoupling from the Tax Act, either in its entirety or with respect to specific provisions. Legislative and interpretive actions could result in adjustments to the Company’s balances.