ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Jul. 31, 2023

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

The following tables reflect the components of "Accrued expenses" and "Other current liabilities":

	Successor		Predecessor
	July 31, 2023		July 31, 2022
Accrued Expenses	(In thousands)
Accrued compensation	$	6,891	$	5,099
Accrued audit, tax and legal	5,696		4,564
Accrued taxes	2,811		3,344
Accrued price concessions	2,981		4,549
Accrued occupancy costs	1,412		1,671
Accrued IT costs	831		1,108
Accrued other	6,152		8,061
Total accrued expenses	$	26,774	$	28,396

	Successor		Predecessor
	July 31, 2023		July 31, 2022
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	—	$	9,435
Deferred revenue - current	2,574		2,705
Other	1,970		1,342
Total other current liabilities	$	4,544	$	13,482

As of July 31, 2022, the Company had accrued pricing liabilities of approximately $9.4 million. As previously reported by the Company, several principal adjustments were made to its historic financial statements for periods ended on or before January 31, 2012, the most significant of which related to the treatment of vendor rebates in its pricing policies. Where the retention of a rebate or a mark-up was determined to have been inconsistent with a client contract, the Company concluded that these amounts were not properly recorded as revenue. Accordingly, revenue was reduced by an equivalent amount for the period that the rebate was estimated to have been affected. A corresponding liability for the same amount was recorded in that period (referred to as accrued pricing liabilities).

The Company’s historical practice has been to derecognize the accrued pricing liabilities by customer depending upon which state the customer or former customer is located in and that state’s applicable statutes of limitations and escheatment laws. The amounts previously derecognized were recorded in Other gains, net in the Company’s consolidated statements of operations.

In connection with the Exchange Transaction discussed in Note 1 - "Nature of Operations", Steel Holdings recognized the Company's assets and liabilities acquired at fair value in accordance with ASC 805. As of the acquisition date, Steel Holdings determined the fair value of the accrued pricing liability to be zero as Steel Holdings believes it is remote there would be any potential payments to the Company's customers or former customers for the rebates. As such, as of July 31, 2023, the balance of accrued pricing liabilities was reduced to zero with a corresponding offset to goodwill recognized in connection with pushdown accounting.