Income Taxes (Tables)

12 Months Ended

Jul. 31, 2023

Income Tax [Abstract]

Schedule of Income (Loss) Before Income Taxes

The components of (loss) income before income taxes are as follows:

Fiscal year ended July 31,
(in thousands)	2023			2022
Domestic	$	(6,724	)	$	12,009
Foreign		160			(403	)
(Loss) income before income taxes	$	(6,564	)	$	11,606

Schedule of Provision for (Benefit From) Income Taxes

Provision for (benefit from) income taxes consisted of the following:

Fiscal year ended July 31,
(in thousands)	2023			2022
Current:
Foreign	$	90		$	60
Federal		413			2,163
State		16			53
Total current expense		519			2,276
Deferred:
Foreign		-			44
Federal		(1,004	)		(507	)
State		23			79
Total deferred expense		(981	)		(384	)
(Benefit from) provision for income taxes	$	(462	)	$	1,892

Schedule of Income Taxes Expected at the U.S. Federal Statutory Income Tax Rate and Income Taxes

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

Fiscal year ended July 31,
(in thousands)	2023			2022
U.S federal income tax at statutory rate	$	(1,378	)	$	2,437
State tax (net of federal benefit)		36			120
Change in valuation allowance		(55	)		-
Foreign tax rate differential		(18	)		(12	)
Change in fair value of contingent consideration and goodwill impairment		832			(832	)
Stock-based compensation		306			-
Other		(185	)		179
(Benefit from) provision for income taxes	$	(462	)	$	1,892

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:

July 31,
(in thousands)	2023			2022
Deferred tax assets:
Net operating loss carryforwards (Foreign)	$	1,840		$	1,840
Net operating loss carryforwards (State)		6			66
Reserves and accruals		162			240
Stock-based compensation		483			313
Depreciation and amortization		882			57
Others		309			240
Net deferred tax assets		3,682			2,756
Less valuation allowance		(1,840	)		(1,895	)
Total deferred tax assets	$	1,842		$	861

Schedule of Change in the Valuation Allowance

The change in the valuation allowance is as follows:

Fiscal year ended July 31, (in thousand)	Balance at beginning of year		Additions related to GuruShots acquisition		Deductions			Balance at end of year
2023
Reserves deducted from deferred income taxes, net:
Valuation allowance	$	1,895	$	-	$	(55	)	$	1,840
2022
Reserves deducted from deferred income taxes, net:
Valuation allowance	$	55	$	1,840	$	-		$	1,895