Fair Value Measurements

12 Months Ended

Jul. 31, 2023

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 3—Fair Value Measurements 

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis:

	Level 1		Level 2		Level 3		Level 4
July 31, 2023
Assets:
Foreign exchange forward contracts	$	-	$	19	$	-	$	19
July 31, 2022
Liabilities:
Contingent consideration-short term	$	-	$	-	$	215	$	215
Contingent consideration-long term	$	-	$	-	$	1,728	$	1,728
Foreign exchange forward contracts	$	-	$	141	$	-	$	141

Contingent Consideration

Contingent consideration related to the business combinations discussed below in Note 6, Business Combination and Asset Acquisition are classified within Level 3 of the fair value hierarchy as the determination of fair value uses considerable judgment 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 business acquisition discussed in Note 6, Business Combinations and Assets Acquisition.

	Total			Current			Long-Term
Balance at July 31, 2021	$	-			-			-
Additions		5,904			3,396			2,508
Change in fair value		(3,961	)		(3,181	)		(780	)
Balance at July 31, 2022		1,943			215			1,728
Change in fair value		(1,943	)		(215	)		(1,728	)
Balance at July 31, 2023	$	-		$	-		$	-

The overall fair value of the contingent consideration decreased by $1.9 million during the fiscal year ended July 31, 2023, primarily due 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 July 31, 2023 and 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.