INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2023

Income Tax Disclosure [Abstract]

Components of Loss from Continuing Operations before Provision for Income Taxes

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

	Successor		Predecessor
	May 1 to July 31,		August 1, 2022 to April 30,		Fiscal Year Ended July 31,
	2023		2023		2022
	(In thousands)
Income (loss) from operations before income taxes:
U.S.	$	9,866	$	2,021	$	(5,189)
Foreign	(2,115)		7,069		7,321
Total income (loss) from operations before income taxes	$	7,751	$	9,090	$	2,132

Components of Income Tax Expense from Operations

The components of income tax expense from operations consist of the following:

	Successor		Predecessor
	May 1 to July 31,		August 1, 2022 to April 30,		Fiscal Year Ended July 31,
	2023		2023		2022
	(In thousands)
Current (benefit) provision:
Federal	$	72	$	487	$	—
State	(110)		48		429
Foreign	(110)		1,095		1,918
	(148)		1,630		2,347
Deferred (benefit) provision:
Federal	—		—		8,849
State	—		—		76
Foreign	(250)		—		116
	(250)		—		9,041
Total tax (benefit) provision	$	(398)	$	1,630	$	11,388

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are as follows:

	Successor		Predecessor
	July 31, 2023		July 31, 2022
	(In thousands)
Deferred tax assets:
Accruals and reserves	$	2,645	$	4,295
Tax basis in excess of financial basis for intangible and fixed assets	175		901
Lease liability	3,574		2,288
Interest expense disallowance	—		2,357
Credit carry forwards	25		25
Net operating loss and capital loss carry forwards	95,832		474,496
Total gross deferred tax assets	102,251		484,362
Less: valuation allowance	(90,436)		(481,178)
Net deferred tax assets	$	11,815	$	3,184
Deferred tax liabilities:
Financial basis in excess of tax basis for intangible and fixed assets	$	(8,446)	$	(69)
Right of use asset	(3,454)		(2,154)
Convertible debt	(404)		(917)
Total gross deferred tax liabilities	(12,304)		(3,140)
Net deferred tax liabilities	$	(489)	$	44

Reconciliation of Income Tax Expense Attributable to Income from Continuing Operations

Income tax expense attributable to income from continuing operations differs from the expense computed by applying the U.S. federal income tax rate of 21.0% to (loss) income from continuing operations before income taxes as a result of the following:

	Successor		Predecessor
	May 1 to July 31,		August 1, 2022 to April 30,		Fiscal Year Ended July 31,
	2023		2023		2022
			(In thousands)
Computed "expected" income tax expense (benefit)	$	1,627	$	1,909	$	448
Increase (decrease) in income tax expense resulting from:
Change in valuation allowance	(350,469)		(424)		21,703
Foreign tax rate differential	(255)		(50)		56
Nondeductible expenses	459		—		159
Foreign withholding taxes	245		147		134
Foreign other adjustments	(246)		—		951
GILTI	1,141		—		4,775
Addition of uncertain tax position reserves	(430)		11		58
Worthless stock deduction	—		—		(16,860)
State income taxes, net of federal benefit	(1,916)		37		(603)
Expiration of net operating loss	347,462		—		—
Deferred true-up	1,786		—		751
Other	198		—		(184)
Actual income tax (benefit) expense	$	(398)	$	1,630	$	11,388

Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

	Successor		Predecessor
	July 31, 2023		July 31, 2022
	(In thousands)
Balance as of beginning of year	$	571	$	2,140
Additions for current year tax positions	—		—
Currency translation	—		(4)
Reductions for lapses in statute of limitations	(297)		(67)
Reductions for member leaving consolidated group	—		(1,498)
Balance as of end of year	$	274	$	571