LEASES

12 Months Ended

Jul. 31, 2024

Leases [Abstract]

LEASES

LEASES

The Company has operating and finance leases for office space, office equipment, warehouse space and automobiles. The leases have remaining terms of up to five years, some of which include options to purchase, extend or terminate the leases, and management has assessed such terms when determining the lease term for accounting purposes. The Company's current lease arrangements expire through fiscal year 2029.

The Company's leases do not include any residual value guarantees, and therefore none were considered in the calculation of the operating ROU and operating lease liability balances. The Company has leases that contain variable payments, most commonly in the form of common area maintenance charges, which are based on actual costs incurred. These variable payments were excluded from the calculation of the operating ROU asset and operating lease liability balances since they are not fixed or in-substance fixed payments.

For leases with terms greater than 12 months, the Company records the related operating ROU assets and operating lease liabilities at the present value of lease payments over the lease terms. For leases with an initial term of 12 months or less (with purchase options or extension options that are not reasonably certain to be exercised), the Company does not record them on the balance sheet, but instead recognizes lease expense on a straight-line basis over the terms of the leases.

Lease Expense

The components of the Company's lease expense are presented below:

	Successor				Predecessor
	Fiscal Year Ended July 31,		May 1 to July 31,		August 1, 2022 to April 30,
	2024		2023		2023
	(In thousands)
Operating lease cost	$	10,481	$	2,565	$	7,538
Short-term lease expense	1,608		444		1,269
Sublease income	(413)		(171)		(786)
Variable lease cost	—		—		7
Interest on finance lease liabilities	—		—		—
	$	11,676	$	2,838	$	8,028

Lease Commitments

The Company's future minimum lease payments required under operating leases that have commenced as of July 31, 2024 were as follows:

	Operating Leases
	(In thousands)
2025	$	9,454
2026	6,436
2027	4,443
2028	2,094
2029	546
Thereafter	—
Total lease payments	22,973
Less: imputed interest	1,914
Present value of lease payments	21,059
Less: current lease obligations	8,319
Long-term lease obligations	$	12,740

In order to calculate the operating ROU asset and operating lease liability for a lease, a lessee is required to apply a discount rate equal to the rate implicit in the lease whenever that rate is readily determinable. The Company's lease agreements generally do not provide a readily determinable implicit rate, nor is the rate available to the Company from its lessors and, therefore, the Company determines an incremental borrowing rate to determine the present value of the lease payments. The incremental borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease term to obtain an asset of similar value.

Additional Lease Information

Additional information related to the Company's leases as of July 31, 2024 was as follows:

Weighted average remaining lease term:
Operating leases	2.9	years
Weighted average discount rate:
Operating leases		5.5%

Supplemental Cash Flow Information

Supplemental cash flow information related to the cash paid for amounts included in measurement of lease liabilities during the fiscal year ended July 31, 2024 and 2023 was as follows:

	Successor				Predecessor
	Fiscal Year Ended July 31,		May 1 to July 31,		August 1, 2022 to April 30,
	2024		2023		2023
	(In thousands)
Operating cash flows from operating leases	$	10,412	$	2,494	$	7,224
Operating cash flows from finance leases	$	—	$	—	$	—
Financing cash flows from finance leases	$	—	$	—	$	38

LEASES

LEASES

The Company has operating and finance leases for office space, office equipment, warehouse space and automobiles. The leases have remaining terms of up to five years, some of which include options to purchase, extend or terminate the leases, and management has assessed such terms when determining the lease term for accounting purposes. The Company's current lease arrangements expire through fiscal year 2029.

The Company's leases do not include any residual value guarantees, and therefore none were considered in the calculation of the operating ROU and operating lease liability balances. The Company has leases that contain variable payments, most commonly in the form of common area maintenance charges, which are based on actual costs incurred. These variable payments were excluded from the calculation of the operating ROU asset and operating lease liability balances since they are not fixed or in-substance fixed payments.

For leases with terms greater than 12 months, the Company records the related operating ROU assets and operating lease liabilities at the present value of lease payments over the lease terms. For leases with an initial term of 12 months or less (with purchase options or extension options that are not reasonably certain to be exercised), the Company does not record them on the balance sheet, but instead recognizes lease expense on a straight-line basis over the terms of the leases.

Lease Expense

The components of the Company's lease expense are presented below:

	Successor				Predecessor
	Fiscal Year Ended July 31,		May 1 to July 31,		August 1, 2022 to April 30,
	2024		2023		2023
	(In thousands)
Operating lease cost	$	10,481	$	2,565	$	7,538
Short-term lease expense	1,608		444		1,269
Sublease income	(413)		(171)		(786)
Variable lease cost	—		—		7
Interest on finance lease liabilities	—		—		—
	$	11,676	$	2,838	$	8,028

Lease Commitments

The Company's future minimum lease payments required under operating leases that have commenced as of July 31, 2024 were as follows:

	Operating Leases
	(In thousands)
2025	$	9,454
2026	6,436
2027	4,443
2028	2,094
2029	546
Thereafter	—
Total lease payments	22,973
Less: imputed interest	1,914
Present value of lease payments	21,059
Less: current lease obligations	8,319
Long-term lease obligations	$	12,740

In order to calculate the operating ROU asset and operating lease liability for a lease, a lessee is required to apply a discount rate equal to the rate implicit in the lease whenever that rate is readily determinable. The Company's lease agreements generally do not provide a readily determinable implicit rate, nor is the rate available to the Company from its lessors and, therefore, the Company determines an incremental borrowing rate to determine the present value of the lease payments. The incremental borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease term to obtain an asset of similar value.

Additional Lease Information

Additional information related to the Company's leases as of July 31, 2024 was as follows:

Weighted average remaining lease term:
Operating leases	2.9	years
Weighted average discount rate:
Operating leases		5.5%

Supplemental Cash Flow Information

Supplemental cash flow information related to the cash paid for amounts included in measurement of lease liabilities during the fiscal year ended July 31, 2024 and 2023 was as follows:

	Successor				Predecessor
	Fiscal Year Ended July 31,		May 1 to July 31,		August 1, 2022 to April 30,
	2024		2023		2023
	(In thousands)
Operating cash flows from operating leases	$	10,412	$	2,494	$	7,224
Operating cash flows from finance leases	$	—	$	—	$	—
Financing cash flows from finance leases	$	—	$	—	$	38