Leases

3 Months Ended

Oct. 31, 2023

Leases [Abstract]

Leases

Note 9 - Leases

The Company determines if an arrangement is or contains a lease at contract inception. The Company leases buildings, office space, and equipment through operating leases. Generally, a right-of-use asset, representing the right to use the underlying asset during the lease term, and a lease liability, representing the payment obligation arising from the lease, are recognized on the balance sheet at lease commencement based on the present value of the payment obligation. For operating leases, expense is recognized on a straight-line basis over the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company primarily uses its incremental borrowing rate in determining the present value of lease payments as the Company’s leases generally do not provide an implicit rate.

The Company has lease agreements with (i) right-of-use asset payments and (ii) non-lease components (e.g. payments related to maintenance fees, utilities, etc.) which have generally been combined and accounted for as a single lease component. The Company’s leases have remaining terms of less than 1 year to 4 years, some of which include options to extend the leases for up to 3 years. The Company’s lease terms may include renewal options that are reasonably certain to be exercised and termination options that are reasonably certain not to be exercised.

Certain of the Company’s lease agreements include rental payments adjusted periodically for inflation or a market rate which are included in the lease liabilities.

Leases	Balance Sheet Classification	October 31, 2023		July 31, 2023
Assets
Operating	Right-of-use assets	$	3,405	$	3,626
Total lease assets		$	3,405	$	3,626
Liabilities
Current:
Operating	Current portion of operating lease liabilities	$	920	$	980
Non-current:
Operating	Operating lease liabilities, non-current		2,972		3,160
Total lease liabilities		$	3,892	$	4,140

For the three months ended October 31, components of lease cost were as follows:

Lease Cost	2023		2022
Operating lease cost – net (a)	$	141	$	262

(a) Net of $126 sublease income for the three months ended October 31, 2023.

The maturity of the Company’s lease liabilities as of October 31, 2023 is as follows:

Maturity of lease liabilities, years ending July 31,	Operating leases
2024	$	863
2025		896
2026		886
2027		881
2028		808
Total lease payments		4,334
Less: Interest (a)		(442	)
Present value of lease liabilities	$	3,892

(a) Primarily calculated using the Company’s incremental borrowing rate.

Lease term and discount rate for the for the three months ended October 31 were as follows:

Lease term and discount rate	2023			2022
Weighted-average remaining lease term (years):
Operating leases		4.5 years			5.5 years
Weighted-average discount rate:
Operating leases		5.1	%		5.1	%

See Note 5 for cash flow information on cash paid for amounts included in the measurement of lease liabilities for the three months ended October 31, 2023 and 2022.