INVESTMENTS

6 Months Ended

Jan. 31, 2024

Investments, Debt and Equity Securities [Abstract]

The following table summarizes the Company's investments as of January 31, 2024. There were no investments as of July 31, 2023.


	Successor
(in thousands)	January 31, 2024
Convertible loan note investment(a)	$	1,227
Other investments(b)	1,947
Total	$	3,174

(a) The Company entered into a new convertible loan note on October 13, 2023, which matures on March 31, 2025. The Company paid 1.0 million GBP (approximately $1.2 million) to subscribe for an amount of £1.0 million (the "loan principal") of 11.0% 2025 unsecured convertible loan notes issued by the investee (the "CLN Instrument Agreement"). Contemporaneous with the execution of the CLN Instrument Agreement, the Company executed the Equity Warrant Instrument Agreement (“Warrant Agreement”), which provides the Company with the option to convert the outstanding balance into equity shares of the investee at any time before repayment of the outstanding loan principal balance. The Company’s £1.0 million investment in the £20.0 million GBP 11.0% unsecured convertible loan notes provides it with an approximate 5.0% ownership interest on an if-converted basis. The cost basis of the convertible loan note investment was $1.2 million as of January 31, 2024, which also approximates its fair value. Changes in fair value will be recorded in the Company's consolidated statements of operations as the Company elected the fair value option under ASC 825 to account for this investment. In March 2024, the investee reported losses and the need for future financing which may impact the fair value and recoverability of the Company's investment.

(b) The balance consists of multiple common stock investments of public companies.

The amount of net unrealized gains for the three and six months ended January 31, 2024 that relate to equity securities still held as of January 31, 2024 are as follows:


	Successor
	Three months ended January 31,		Six months ended January 31,
(in thousands)	2024		2024
Net gains recognized during the period on equity securities	$	1,043	$	596
Less: Net gains recognized during the period on equity securities sold during the period	859		393
Unrealized net gains recognized during the period on equity securities still held at the end of the period	$	184	$	203

Unrealized gains are recorded in Other gains (losses), net on the condensed consolidated statements of operations. There was no investment activity for the three and six months ended January 31, 2023.