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Fair Value Measurements
 3 Months Ended
Oct. 31, 2022
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 3—Fair Value Measurements

 

The following tables present the balance of assets and liabilities measured at fair value on a recurring basis (in thousands):

 

   Level 1   Level 2   Level 3   Total 
October 31, 2022                
Liabilities:                
Contingent consideration-short term  $
        -
   $
       -
   $17   $17 
Contingent consideration-long term  $
-
   $
-
   $1,776   $1,776 
Foreign exchange forward contracts  $
-
   $101   $
-
   $101 
                     
July 31, 2022                    
Liabilities:                    
Contingent consideration-short term  $
-
   $
-
   $215   $215 
Contingent consideration-long term  $
-
   $
-
   $1,728   $1,728 
Foreign exchange forward contracts  $
-
   $141   $
-
   $141 

 

(1) – quoted prices in active markets for identical assets or liabilities

(2) – observable inputs other than quoted prices in active markets for identical assets and liabilities

(3) – no observable pricing inputs in the market

 

Contingent Consideration

 

Contingent consideration related to the business combinations discussed below in Note 5 are classified within Level 3 of the fair value hierarchy as the determination of fair value uses considerable judgement and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability.

 

The following table provides a rollforward of the contingent consideration related to the GuruShots acquisition (in thousands):

 

Balance at July 31, 2022  $1,943 
Change in fair value   (150)
Balance at October 31, 2022  $1,793 

 

The overall fair value of the contingent consideration decreased by $150 thousand during the three months ended October 31, 2022, due primarily to the decrease in the likelihood that certain contingent milestones would be achieved.

 

Fair Value of Other Financial Instruments

 

Fair value of the outstanding foreign exchange forward contracts are marked to market price at the end of each measurement period.

 

The Company’s other financial instruments at October 31, 2022 and July 31, 2022 included trade accounts receivable and trade accounts payable. The carrying amounts of the trade accounts receivable and trade accounts payable approximated fair value due to their short-term nature.