XML 65 R48.htm IDEA: XBRL DOCUMENT
v3.25.3

Income Taxes (Tables) | 12 Months Ended
--- | ---
Jul. 31, 2025
Income Taxes [Abstract] |
Schedule of Components of Loss Before Income Taxes | The components of loss before income taxes, including equity in loss of Day Three, are as follows:
|  | For the Years Ended July 31, |
|  | 2025 |  |  | 2024 |
|  | (in thousands) |
Domestic |  | $ | (32,338 | ) |  | $ | (67,653 | )
Foreign |  |  | (858 | ) |  |  | (30 | )
Loss before income taxes |  | $ | (33,196 | ) |  | $ | (67,683 | )
Schedule of Benefit From Income Taxes | Benefit from income taxes consisted of the following:
|  | For the Years Ended July 31, |
|  | 2025 |  |  | 2024 |
|  | (in thousands) |
Current: |  |  |  |  |  |
Foreign |  | $ | — |  |  | $ | 19 |
Federal |  |  | — |  |  |  | — |
State |  |  | (2,388 | ) |  |  | (2,602 | )
Total current benefit |  |  | (2,388 | ) |  |  | (2,583 | )
Deferred: |  |  |  |  |  |  |  |
Foreign |  |  | — |  |  |  | (73 | )
Federal |  |  | (160 | ) |  |  | (17 | )
State |  |  | (5 | ) |  |  | (7 | )
Total deferred benefit |  |  | (165 | ) |  |  | (97 | )
Benefit from income taxes |  | $ | (2,553 | ) |  | $ | (2,680 | )
Schedule of Effective Tax Rate | The reconciliation between the Company’s effective tax rate on loss before income taxes and the statutory tax rate for the years ended July 31, 2025 and July 31, 2024 is as follows:
|  | For the Years Ended July 31, |
|  | 2025 |  |  | 2024 |
|  | (in thousands) |
U.S. federal income tax at statutory rate |  | $ | (6,972 | ) |  | $ | (14,213 | )
Permanent items - Cornerstone Acquisition |  |  | — |  |  |  | 18,871 |
Nondeductible items |  |  | 1,360 |  |  |  | 672 |
State income tax |  |  | (1,739 | ) |  |  | 1,807 |
Rate change |  |  | 140 |  |  |  | — |
Foreign operations |  |  | (34 | ) |  |  | (1 | )
True up and other |  |  | (1,043 | ) |  |  | 627 |
Cornerstone Acquisition impact to deferred tax assets |  |  | — |  |  |  | (51,546 | )
Derecognition of Cornerstone investment due to Cornerstone Acquisition |  |  | — |  |  |  | 23,312 |
Sales of state NOLs |  |  | (2,429 | ) |  |  | (2,613 | )
Orphan Drug Credits |  |  | (1,045 | ) |  |  | — |
Change in valuation allowance |  |  | 9,209 |  |  |  | 20,404 |
Benefit from income taxes |  | $ | (2,553 | ) |  | $ | (2,680 | )
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:
|  | At July 31, |
|  | 2025 |  |  | 2024 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 85,847 |  |  | $ | 61,204 |
Federal tax credits, net of uncertain tax position |  |  | 16,910 |  |  |  | 6,145 |
Capitalized Sec. 174 research and experimental expenditures |  |  | 29,117 |  |  |  | 3,121 |
Stock-based compensation |  |  | 2,354 |  |  |  | 2,486 |
Depreciation |  |  | 340 |  |  |  | 286 |
Reserves and accruals |  |  | 647 |  |  |  | 249 |
Charitable contributions |  |  | 346 |  |  |  | 141 |
Related party interest |  |  | 853 |  |  |  | — |
Disallowed interest expense |  |  | 1,008 |  |  |  | — |
Gross deferred tax assets |  |  | 137,422 |  |  |  | 73,632 |
Less valuation allowance |  |  | (128,403 | ) |  |  | (71,275 | )
Total deferred tax assets, net of valuation allowance |  |  | 9,019 |  |  |  | 2,357 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Unrealized gain |  |  | (199 | ) |  |  | (2,327 | )
Intangible assets |  |  | (8,958 | ) |  |  | (30 | )
Total deferred tax liabilities: |  |  | (9,157 | ) |  |  | (2,357 | )
Deferred tax liability, net |  | $ | (138 | ) |  | $ | — |
Schedule of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with uncertain tax positions is as follows:
|  | At July 31, |
|  | 2025 |  |  | 2024 |
|  | (in thousands) |
Balance, beginning of the year |  | $ | 6,218 |  |  | $ | — |
Additions of tax positions related to the current year |  |  | 1,045 |  |  |  | — |
Additions of tax positions related to the current year – Cyclo Acquisition |  |  | 9,720 |  |  |  | — |
Additions of tax positions related to the prior year |  |  | — |  |  |  | 6,218 |
Balance, end of year |  | $ | 16,983 |  |  | $ | 6,218 |

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