Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.7.0.1
Income taxes (Tables)
 12 Months Ended
Jul. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] The (provision) benefit for income taxes for fiscal years ended July 31 is as follows:

    2017     2016     2015  
Current (provision) benefit:                        
Federal   $ -     $ (968 )   $ —  
State and local     (70)       (276 )     (72 )
Foreign     (12)       (45 )     (25 )
Deferred benefit     -       60       104  
Benefit (provision) for income taxes   $ (82)     $ (1,229 )   $ 7  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] Deferred tax assets and liabilities arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The components of deferred tax assets (liabilities) as of July 31 are as follows:

    2017     2016  
Deferred tax assets:                
Federal tax carryforward losses   $ 18,831     $ 18,964  
Provision for uncollectible accounts receivable     1,392       1,406  
State and local tax carry forward losses     —       2,757  
Accrued royalties     149       146  
Stock compensation     782       616  
Depreciation     804       769  
Research and development and other tax credit carryforwards     2,208       2,152  
Foreign tax carryforward losses     2,420       2,046  
Intangibles     2,888       2,915  
Inventory     2,536       2,477  
Accrued expenses     1,420       1,321  
Unrealized foreign exchange     —       100  
Other, net     69       63  
Deferred tax assets     33,499       35,732  
                 
Prepaid expenses       (863 )     (820 )
Other, net     (55 )     —  
Deferred tax liabilities     (918 )     (820 )
                 
Net deferred tax assets before valuation allowance     32,581       34,912  
Less: valuation allowance     (32,581 )     (34,912 )
Net deferred tax liabilities   $ —     $ —  
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] The components of income (loss) before income taxes consisted of the following for the years ended July 31:

    2017     2016     2015  
United States operations   $ (130 )   $ 48,847     $ (615 )
International operations     (2,292 )     (2,332 )     (1,677 )
Income (loss) before taxes   $ (2,422 )   $ 46,515     $ (2,292 )
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] The (provision) benefit for income taxes was at rates different from U.S. federal statutory rates for the following reasons for the years ended July 31:

    2017     2016     2015  
Federal statutory rate     34.0 %     (34.0 )%     34.0 %
Penalties and other expenses not deductible for income tax return purposes     (14.5 )     (1.1 )     (18.6 )
State income taxes, net of benefit of federal tax deduction     (2.1 )     (0.4 )     (0.5 )
Change in valuation allowance     64.0       32.9       (15.2 )
State tax law change     (82.8 )     —       —  
Other     (2.0 )     —       0.6  
      (3.4 )%     (2.6 )%     0.3 %