Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v2.4.0.8
Income taxes (Tables)
 12 Months Ended
Jul. 31, 2013
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:

    2013     2012     2011  
Current (provision) benefit:                        
Federal   $ —     $ —     $ 8  
State and local     (46 )     (49 )     (161 )
Foreign     (1 )     (61 )     33  
Deferred benefit (provision)     759       1,762       (17 )
Benefit (provision) for income taxes   $ 712     $ 1,652     $ (137 )
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] The components of deferred tax assets (liabilities) as of July 31 are as follows:

    2013     2012  
Deferred tax assets:                
Federal tax carryforward losses   $ 34,836     $ 29,531  
Provision for uncollectible accounts receivable     920       1,263  
State and local tax carry forward losses     3,791       2,914  
Accrued royalties     143       143  
Stock compensation     317       450  
Depreciation     625       445  
Research and development and other tax credit carryforwards     1,013       795  
Foreign tax carryforward losses     772       108  
Intangibles     2,980       2,903  
Inventory     1,249       1,630  
Accrued expenses     1,622       909  
Other, net     19       15  
Deferred tax assets     48,287       41,106  
                 
Deferred tax liabilities:                
Deferred patent costs     (132 )     (139 )
Prepaid expenses     (695 )     (613 )
Other, net     (37 )     (31 )
Deferred tax liabilities     (864 )     (783 )
                 
Net deferred tax assets (liabilities) before valuation allowance     47,423       40,323  
Less: valuation allowance     (47,623 )     (41,261 )
Net deferred tax liabilities   $ (200 )   $ (938 )
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:

    2013     2012  
Deferred taxes:                
Current   $ —     $ —  
Non-current     200       938  
    $ 200     $ 938  
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] The components of loss before income taxes consisted of the following for the years ended July 31:

    2013     2012     2011  
United States operations   $ (15,419 )   $ (31,817 )   $ (12,284 )
International operations     (3,530 )     (9,104 )     (539 )
Loss before taxes   $ (18,949 )   $ (40,921 )   $ (12,823 )
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] The benefit (provision) for income taxes were at rates different from U.S. federal statutory rates for the following reasons for the years ended July 31:

    2013     2012     2011  
Federal statutory rate     34.0 %     34.0 %     34.0 %
Expenses not deductible for income tax return purposes     (0.9 )     (0.5 )     (2.3 )
State income taxes, net of benefit of federal tax deduction     2.5       0.9       1.0  
Change in valuation allowance     (32.7 )     (23.2 )     (34.6 )
Impairment of goodwill     —       (7.1 )     —  
Reversal of tax reserve     —       —       0.1  
Other     0.9       (0.1 )     0.7  
      3.8 %     4.0 %     (1.1 )%