SUBSEQUENT EVENTS

6 Months Ended

Jan. 31, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

SPHG Convertible Note Amendment

On March 9, 2023, the Company and SPHG Holdings entered into an amendment to the SPHG Note (the “SPHG Note Amendment”). Pursuant to the SPHG Note Amendment, the maturity date of the SPHG Note was extended six months to September 1, 2024. In addition, the Company repaid $1.0 million in principal amount of the SPHG Note and will be required to repay an additional $1.0 million principal amount of the note on the three month anniversary of the SPHG Note Amendment. In connection with the SPHG Note Amendment, the Company paid SPHG Holdings a cash amendment fee of $0.1 million.

Investment Sale

The Company owns 9.8% of a privately-held software company (the "Investee"), which was acquired in the early 2000s and whose book value was written down to zero in prior years. The Company was not required to account for this Investee as an equity method investment.

On November 11, 2022, the Investee entered into an asset purchase agreement to sell substantially all of its assets for $40.8 million (the "Purchase Price"). The sale was approved by shareholders on December 15, 2022 and closed in February 2023. The Company received the first distribution of approximately $1.9 million on March 10, 2023, which was communicated as 66.8% of the total distribution to the Company. The Investee also communicated that the total distribution to the Company would be approximately $2.8 million, with the remaining amounts to be distributed in the Summer of 2023, Spring of 2024 and the Fall of 2024. When received, the Company will recognize the cash proceeds as other income on the condensed consolidated statement of operations.

Umpqua Credit Facility Amendment

On March 13, 2023, ModusLink and Umpqua Bank entered into an amendment to the Umpqua Revolver (the "Umpqua Revolver Amendment") to extend the expiration date of the facility to March 31, 2025. There were no fees associated with the extension.