Note 10 - Variable Interest Entity

9 Months Ended

Apr. 30, 2026

Variable Interest Entity Disclosure [Text Block]

Note 10—Variable Interest Entity

The Company is the primary beneficiary of the Disbursement Payments VIE. The Company consolidates the Disbursement Payments VIE because it has the power to direct the activities of the VIE that most significantly impact its economic performance, and has the obligation to absorb losses of, and the right to receive benefits from, the Disbursement Payments VIE that could potentially be significant to it. The Company does not currently own any equity interest in the Disbursement Payments VIE and thus the net income incurred by the Disbursement Payments VIE was attributed to noncontrolling interests in the accompanying condensed consolidated statements of income.

The Disbursement Payments VIE’s net income and aggregate funding provided by the Company were as follows:

	*Three Months Ended April 30,*				*Nine Months Ended April 30,*
(in thousands)	*2026*		*2025*		*2026*		*2025*
Net income of the VIE	$	509	$	187	$	1,065	$	537

Aggregate funding provided by the Company, net	$	97	$	109	$	371	$	368

The Disbursement Payments VIE’s summarized consolidated balance sheet amounts are as follows:

(in thousands)	*April 30, 2026*		*July 31, 2025*
Assets:
Cash and equivalents	$	3,467	$	3,116
Restricted cash		21,878		11,000
Trade accounts receivable, net		668		244
Disbursement prefunding		4,794		1,400
Prepaid expenses		293		431
Other current assets		186		224
Property, plant, and equipment, net		431		204
Other intangibles, net		318		432
Total assets	$	32,035	$	17,051

Liabilities and noncontrolling interests:
Trade accounts payable	$	206	$	27
Accrued expenses		203		159
Customer funds deposits		23,988		10,701
Due to the Company		1,100		729
Accumulated other comprehensive income		96		58
Noncontrolling interests		6,442		5,377
Total liabilities and noncontrolling interests	$	32,035	$	17,051

The Disbursement Payments VIE’s assets may only be used to settle the Disbursement Payments VIE’s obligations and may not be used for other consolidated entities. The Disbursement Payments VIE’s liabilities are non-recourse to the general credit of the Company’s or its other consolidated entities.