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Income Taxes (Tables)
12 Months Ended
Jul. 31, 2021
Income Tax Disclosure [Abstract]  
Components of Income Before Income Taxes

The components of income before income taxes are as follows:

 

 

Year ended July 31
(in thousands)
  2021   2020 
Domestic  $60,969   $13,380 
Foreign   4,255    4,338 
INCOME BEFORE INCOME TAXES  $65,224   $17,718 
Significant Components of Deferred Income Taxes

Significant components of the Company’s deferred income tax assets consist of the following:

 

July 31
(in thousands)
  2021   2020 
Deferred income tax assets:          
Bad debt reserve  $1,011   $854 
Accrued expenses   3,456    2,963 
Stock options and restricted stock   980    1,226 
Charitable contributions   778    659 
Depreciation   (373)   (71)
Unrealized gain   (1,826)   (302)
Net operating loss   49,368    62,588 
Deferred revenue   (352)   (705)
Total deferred income tax assets   53,042    67,212 
Valuation allowance   (11,540)   (58,700)
NET DEFERRED INCOME TAX ASSETS  $41,502   $8,512 
Schedule of (Provision for) Benefits from Income Taxes

The (provision for) benefit from income taxes consist of the following:

 

Year ended July 31
(in thousands)
  2021   2020 
Current:          
Federal  $   $ 
State and local   (512)   (46)
Foreign   (811)   (177)
Current   (1,323)   (223)
Deferred:          
Federal   26,408    8,345 
State and local   (57)   12 
Foreign   6,639   (4,434)
Deferred   32,990    3,923 
BENEFIT FROM INCOME TAXES  $31,667   $3,700 
Schedule of Differences Between Income Taxes Expected Federal Statutory Income Taxes

The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows:

 

Year ended July 31
(in thousands)
  2021   2020 
U.S. federal income tax at statutory rate  $(13,697)  $(3,721)
Valuation allowance   47,862    15,470 
Foreign tax rate differential   (190)   (3,702)
Nondeductible expenses   (636)   (813)
Other   299    88 
Foreign restructuring   (1,510)   (3,266)
State and local income tax, net of federal benefit   (461)   (356)
BENEFIT FROM INCOME TAXES  $31,667   $3,700 
Summary of Changes in Valuation Allowance

The change in the valuation allowance is as follows:

 

Year ended July 31
(in thousands)
  Balance at
beginning of
year
   Additions
charged to
costs and
expenses
   Deductions   Balance at
end of year
 
2021                    
Reserves deducted from deferred income taxes, net:                    
Valuation allowance  $58,700   $    835   $(47,995)  $11,540 
2020                    
Reserves deducted from deferred income taxes, net:                    
Valuation allowance  $74,170   $   $(15,470)  $58,700