Shareholder Distributions and Earnings and Profits (E&P) |
9 Months Ended |
|---|---|
Apr. 30, 2026 | |
| Shareholder Distributions and Earnings and Profits (E&P) [Abstract] | |
| Shareholder Distributions and Earnings and Profits (E&P) | Note 14—Shareholder Distributions and Earnings and Profits (E&P)
On October 14, 2025, the Company issued a press release announcing that its Board of Directors had declared a quarterly cash dividend of $0.016 per share, aggregating approximately $208,000. The dividend was paid on November 7, 2025, to stockholders of record as of October 24, 2025.
On January 14, 2026, the Company issued a press release announcing that its Board of Directors had declared a quarterly cash dividend of $0.016 per share of its Class A common stock and Class B common stock, aggregating approximately $209,000. The dividend was paid on February 10, 2026, to stockholders of record as of January 30, 2026.
On March 25, 2026, the Company issued a press release announcing that its Board of Directors had declared a quarterly cash dividend of $0.02 per share of its Class A common stock and Class B common stock, aggregating approximately $260,000. The dividend was paid on April 15, 2026, to stockholders of record as of April 6, 2026.
As of each dividend declaration date (in October 2025, January 2026 and March 2026), the Company had accumulated deficits. As a result, in accordance with U.S. GAAP, the distributions were accounted for as returns of capital and recorded as reductions of additional paid-in capital in the accompanying financial statements. The distributions had no impact on the Company’s results of operations for the three or nine months ended April 30, 2026.
For U.S. federal income tax purposes, the Company had accumulated earnings and profits (“E&P”) of approximately $11.4 million, $11.0 million and $10.9 million as of the dividend declaration dates in October 2025, January 2026 and March 2026, respectively. Pursuant to Internal Revenue Code Section 316(a), distributions to shareholders are characterized as dividends to the extent of current or accumulated E&P. As a result, the quarterly distributions were treated as taxable dividends to our shareholders for U.S. federal income tax reporting purposes.
The difference between the book and tax characterization of the distribution results from timing and permanent differences between financial reporting income and taxable income, primarily related to the impairment of intangible assets and stock-based compensation. |