Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v2.4.0.8
Income taxes (Tables)
 12 Months Ended
Jul. 31, 2014
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:

    2014     2013     2012  
Current (provision) benefit:                        
Federal   $ —     $ —     $ —  
State and local     (68 )     (46 )     (49 )
Foreign     (22 )     (1 )     (61 )
Deferred benefit     18       759       1,762  
(Provision) benefit for income taxes   $ (72 )   $ 712     $ 1,652  
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

    2014     2013  
Deferred tax assets:                
Federal tax carryforward losses   $ 35,352     $ 34,836  
Provision for uncollectible accounts receivable     753       920  
State and local tax carry forward losses     2,604       3,791  
Accrued royalties     144       143  
Stock compensation     190       317  
Depreciation     618       625  
Research and development and other tax credit carryforwards     1,085       1,013  
Foreign tax carryforward losses     1,207       772  
Intangibles     2,970       2,980  
Inventory     2,194       1,249  
Accrued expenses     3,103       1,622  
Other, net     15       19  
Deferred tax assets     50,235       48,287  
                 
Deferred tax liabilities:                
Deferred patent costs     (135 )     (132 )
Prepaid expenses     (671 )     (695 )
Unrealized foreign exchange     (118 )     —  
Other, net     (29 )     (37 )
Deferred tax liabilities     (953 )     (864 )
                 
Net deferred tax assets (liabilities) before valuation allowance     49,282       47,423  
Less: valuation allowance     (49,465 )     (47,623 )
Net deferred tax liabilities   $ (183 )   $ (200 )
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 follow

    2014     2013  
Deferred taxes:                
Current   $ —     $ —  
Non-current     183       200  
    $ 183     $ 200  
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:

    2014     2013     2012  
United States operations   $ (8,702 )   $ (15,419 )   $ (31,817 )
International operations     (1,203 )     (3,530 )     (9,104 )
Loss before taxes   $ (9,905 )   $ (18,949 )   $ (40,921 )
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:

    2014     2013     2012  
Federal statutory rate     34 %     34.0 %     34.0 %
Penalties and other expenses not deductible for income tax return purposes     (6.6 )     (0.9 )     (0.5 )
State income taxes, net of benefit of federal tax deduction     0.2       2.5       0.9  
Change in valuation allowance     (16.5 )     (32.7 )     (23.2 )
Impairment of goodwill     —       —       (7.1 ) 
State tax law change     (12.3 )     —       —  
Other     0.5       0.9       (0.1 )
      (0.7 )%     3.8 %     4.0 %