v3.26.1
Derivative Instruments
 9 Months Ended
Apr. 30, 2026
Derivative Instruments [Abstract]  
Derivative Instruments

Note 4—Derivative Instruments

 

The primary risk managed by the Company using derivative instruments is foreign exchange risk. Foreign exchange forward contracts are entered into as hedges against unfavorable fluctuations in the USD to NOK and USD to EUR exchange rates. The Company is party to a Foreign Exchange Agreement with Western Alliance Bank allowing the Company to enter into foreign exchange contracts under its revolving credit facility with the bank (see Note 10 Revolving Credit Facility). The Company does not apply hedge accounting to these contracts because these are not qualified as hedging accounting pursuant to ASC 815; therefore the changes in fair value are recorded in the condensed consolidated statements of operations and comprehensive income (loss). By using derivative instruments to mitigate exposures to changes in foreign exchange rates, the Company is exposed to credit risk from the failure of the counterparty to perform under the terms of the contract. The credit or repayment risk is minimized by entering into transactions with high-quality counterparties.

 

As a result of the global restructuring initiated in January 2025, which included the closure of the Company’s Norway operations, the Company no longer has exposure to USD/NOK foreign exchange risk. Accordingly, there were no outstanding NOK forward contracts as of July 31, 2025 or April 30, 2026.

 

The outstanding EUR forward contracts at April 30, 2026 were as follows:

 

Settlement Date   U.S. Dollar
Amount		     EUR
Amount		  
May-26     523,868       450,000  
Jun-26     524,543       450,000  
Jul-26     525,195       450,000  
Aug-26     525,848       450,000  
Total     2,099,453       1,800,000  

 

The fair value of outstanding derivative instruments recorded in the accompanying unaudited condensed consolidated balance sheets were as follows (in thousands):

 

Assets and Liabilities Derivatives:     April 30,
2026		     July 31,
2025		  
Derivatives not designated or not qualifying as hedging instruments   Balance Sheet Location            
Foreign exchange forward contracts   Prepaid expenses and other current assets   $ 18     $ 18  

 

The effects of derivative instruments on the condensed consolidated statements of operations and comprehensive income (loss) were as follows (in thousands):

 

Amount of Income Recognized       Three Months Ended
April 30,		     Nine Months Ended
April 30,		  
on Derivatives     2026     2025     2026     2025  
Derivatives not designated or not qualifying as hedging instruments   Location of income recognized on derivatives            
Foreign exchange forward contracts   Net income resulting from foreign exchange transactions   $ 23     $ 164       30     $ 15