Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.10.0.1
Income taxes (Tables)
 12 Months Ended
Jul. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] The benefit (provision) for income taxes for fiscal years ended July 31 is as follows:

    2018     2017     2016  
                         
Federal   $ 1,097     $ —     $ (968 )
State and local     —       —       (121 )
Foreign     —       —       (45 )
Deferred benefit     —       —       60  
Benefit (provision) for income taxes   $ 1,097     $ —     $ (1,074 )
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:

    2018     2017  
Deferred tax assets:                
Federal tax carryforward losses   $ 13,975     $ 18,831  
Provision for uncollectible accounts receivable     791       1,392  
State and local tax carry forward losses     352       —  
Accrued royalties     102       149  
Stock compensation     575       782  
Depreciation     581       804  
Research and development and other tax credit carryforwards     1,286       2,208  
Foreign tax carryforward losses     2,771       2,420  
Intangibles     1,811       2,888  
Inventory     1,786       2,536  
Accrued expenses     1,194       1,420  
Other, net     58       69  
Deferred tax assets     25,282       33,499  
                 
Prepaid expenses     (772 )     (863 )
Other, net     (39 )     (55 )
Deferred tax liabilities     (811 )     (918 )
                 
Net deferred tax assets before valuation allowance     24,471       32,581  
Less: valuation allowance     (24,471 )     (32,581 )
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:

    2018     2017     2016  
United States operations   $ (9,540 )   $ (212 )   $ 48,692  
International operations     (1,878 )     (2,292 )     (2,332 )
Income (loss) before taxes   $ (11,418 )   $ (2,504 )   $ 46,360  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] The benefit (provision) for income taxes was at rates different from U.S. federal statutory rates for the following reasons for the years ended July 31:

    2018     2017     2016  
Federal statutory rate     26.4 %     34.0 %     (34.0 )%
Penalties and other expenses not deductible for income tax return purposes     (1.0 )     (14.5 )     (1.1 )
State income taxes, net of benefit of federal tax deduction     —       —       (0.1 )
Change in valuation allowance     73.9       64.0       32.9  
State tax law change     —       (81.1 )     —  
Impact of Tax Act on valuation allowance     (100.1 )     —       —  
AMT refund under Tax Act     9.6       —       —  
Other     0.8       (2.4 )     —  
      9.6 %     — %     (2.3 )%