Annual report pursuant to Section 13 and 15(d)

Accrued Liabilities

Accrued Liabilities
12 Months Ended
Jul. 31, 2021
Payables and Accruals [Abstract]  
Accrued Liabilities

Note 10 - Accrued Liabilities


At July 31, accrued liabilities consist of:


    2021     2020  
Payroll, benefits and commissions   $ 5,856     $ 5,227  
Professional fees     628       710  
Legal     2,554       2,647  
Deferred revenue     2,675       2,526  
Other     2,588       1,723  
    $ 14,301     $ 12,833  


Deferred revenue


In order to increase cash flow to providers of services and suppliers impacted by the pandemic, the Centers for Medicare and Medicaid Services (CMS) expanded its Accelerated and Advance Payment Program to a broader group of Medicare providers. We applied for and received a $2,526 payment advance from this program in April 2020. The recoupment by CMS of our advance payment had been scheduled to begin 120 days after the date of receipt, at which time every claim we submit from that point would be automatically offset to repay the advance payment. Any unrecouped advance balance remaining after 90 days of the recoupment process was to be repaid such that 210 days after receiving the advance it would be entirely repaid. In October 2020, the Continuing Appropriations Act, 2021 and Other Extensions Act amended the repayment terms of the Advance Payment Program. The recoupment period was extended and the automatic recoupment began one year after the date the advance payment was received, which in our case meant recoupment started April 2021. Additionally, during the first 11 months after recoupment begins, the rate will be 25% and repayment will occur through an automatic recoupment of our Medicare payments. At the end of the 11 month period, the recoupment rate will increase. If the total amount of the advance payment is not recovered within 29 months from the date the advance was received, a demand letter for the outstanding balance will be issued. Since the Company has the right to repay the advance at any time, the entire balance is considered current. As of July 31, 2021, the deferred revenue related to the CMS payment advance was $1,847.


Self-Insured Medical Plan


The Company self-funds medical insurance coverage for certain of its U.S. based employees. The risk to the Company is believed to be limited through the use of individual and aggregate stop loss insurance. As of July 31, 2021 and 2020, the Company has established a reserve of $300, which is included in accrued liabilities for payroll, benefits and commissions, for claims that have been reported but not paid and for claims that have been incurred but not reported. The reserve is based upon the Company’s historical payment trends, claim history and current estimates.