Income Taxes (Tables)

12 Months Ended

Jul. 31, 2022

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)	2022		2021		2020
Domestic	$	25,025	$	60,969	$	13,380
Foreign		9,858		4,255		4,338
INCOME BEFORE INCOME TAXES	$	34,883	$	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)	2022			2021
Deferred income tax assets:
Bad debt reserve	$	959		$	1,011
Accrued expenses		3,570			3,456
Stock options and restricted stock		42			980
Charitable contributions		730			778
Depreciation		(640	)		(373	)
Unrealized gain		2,895			(1,826	)
Net operating loss		40,733			49,368
Deferred revenue		—			(352	)
Total deferred income tax assets		48,289			53,042
Valuation allowance		(11,588	)		(11,540	)
NET DEFERRED INCOME TAX ASSETS	$	36,701		$	41,502

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)	2022			2021			2020
Current:
Federal	$	(45	)	$	—		$	—
State and local		(863	)		(512	)		(46	)
Foreign		(729	)		(811	)		(177	)
		(1,637	)		(1,323	)		(223	)
Deferred:
Federal		(2,596	)		26,408			8,345
State and local		(19	)		(57	)		12
Foreign		(1,626	)		6,639			(4,434	)
		(4,241	)		32,990			3,923
(PROVISION FOR) BENEFIT FROM INCOME TAXES	$	(5,878	)	$	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)	2022			2021			2020
U.S. federal income tax at statutory rate	$	(7,325	)	$	(13,697	)	$	(3,721	)
Valuation allowance		1,147			47,862			15,470
Foreign tax rate differential		(1,059	)		(190	)		(3,702	)
Nondeductible expenses		2,044			(636	)		(813	)
Other		1			299			88
Foreign restructuring		—			(1,510	)		(3,266	)
State and local income tax, net of federal benefit		(686	)		(461	)		(356	)
(PROVISION FOR) BENEFIT FROM INCOME TAXES	$	(5,878	)	$	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
2022
Reserves deducted from deferred income taxes, net:
Valuation allowance	$	11,540	$	48	$	—		$	11,588
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