Leases

9 Months Ended

Apr. 30, 2025

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 3 years. Certain of the Company’s leases have terms that include renewal options that are reasonably certain to be exercised. Certain of the Company’s lease agreements include rental payments adjusted periodically for inflation which are included in the lease liabilities.

The following table summarizes the Company’s right of use assets and associated liabilities of its continuing operations as of the dates indicated:

Leases	Balance Sheet Classification	April 30, 2025		July 31, 2024
Assets
Operating	Right-of-use assets	$	2,472	$	2,836
Total lease assets		$	2,472	$	2,836
Liabilities
Current:
Operating	Current portion of operating lease liabilities	$	881	$	841
Non-current:
Operating	Operating lease liabilities, non-current		1,920		2,403
Total lease liabilities		$	2,801	$	3,244

Components of lease cost were as follows:

	Three months ended April 30,				Nine months ended April 30,
	2025		2024		2025		2024
Operating lease cost – net (a)	$	95	$	141	$	282	$	472

(a) Net of $126 and $378 of sublease income for the three and nine months ended April 30, 2025 and 2024, respectively.

The maturities of the Company’s lease liabilities as of April 30, 2025 are as follows:

Maturity of lease liabilities, years ending July 31,	Operating leases
2025	$	247
2026		989
2027		907
2028		833
2029		43
Total lease payments		3,019
Less: Interest (a)		(218	)
Present value of lease liabilities	$	2,801

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

Lease term and discount rate for the nine months ended April 30 were as follows:

Lease term and discount rate	2025			2024
Weighted-average remaining lease term (years):
Operating leases		3.2 years			4.1 years
Weighted-average discount rate:
Operating leases		5.4	%		5.1	%

See Note 5 for cash flow information on cash paid for amounts included in the measurement of lease liabilities for the nine months ended April 30, 2025 and 2024.