Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.5.0.2
Income taxes (Tables)
 12 Months Ended
Jul. 31, 2016
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:

    2016     2015     2014  
Current (provision) benefit:                        
Federal   $ (968 )   $ —     $ —  
State and local     (276 )     (72 )     (68 )
Foreign     (45 )     (25 )     (22 )
Deferred benefit     60       104       18  
Benefit (provision) for income taxes   $ (1,229 )   $ 7     $ (72 )
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

    2016     2015  
Deferred tax assets:                
Federal tax carryforward losses   $ 18,964     $ 35,411  
Provision for uncollectible accounts receivable     1,406       685  
State and local tax carry forward losses     2,757       2,661  
Accrued royalties     146       144  
Stock compensation     616       99  
Depreciation     769       618  
Research and development and other tax credit carryforwards     2,152       1,134  
Foreign tax carryforward losses     2,046       1,476  
Intangibles     2,915       2,951  
Inventory     2,477       2,558  
Accrued expenses     1,321       2,627  
Unrealized foreign exchange     100       98  
Other, net     63       18  
Deferred tax assets     35,732       50,480  
                 
Deferred tax liabilities:                
Deferred patent costs     —       (152 )
Prepaid expenses     (820 )     (676 )
Other, net     —       (31 )
Deferred tax liabilities     (820 )     (859 )
                 
Net deferred tax assets before valuation allowance     34,912       49,621  
Less: valuation allowance     (34,912 )     (49,658 )
Net deferred tax liabilities   $ —     $ (37 )
Schedule of Deferred Tax Liabilities Included In Consolidated Balance Sheets [Table Text Block] Net deferred tax liabilities are included in the consolidated balance sheets as of July 31 as follows:

    2016     2015  
Deferred taxes:                
Current   $ —     $ —  
Non-current     —       37  
    $ —     $ 37  
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:

    2016     2015     2014  
United States operations   $ 48,847     $ (615 )   $ (8,702 )
International operations     (2,332 )     (1,677 )     (1,203 )
Income (loss) before taxes   $ 46,515     $ (2,292 )   $ (9,905 )
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:

    2016     2015     2014  
Federal statutory rate     (34.0 )%     34.0 %     34.0 %
Penalties and other expenses not deductible for income tax return purposes     (1.1 )     (18.6 )     (6.6 )
State income taxes, net of benefit of federal tax deduction     (0.4 )     (0.5 )     0.2  
Change in valuation allowance     32.9       (15.2 )     (16.5 )
State tax law change     —       —       (12.3 )
Other     —       0.6       0.5  
      (2.6 )%     0.3 %     (0.7 )%