Operating Leases

12 Months Ended

Jul. 31, 2026

Note 10— Operating Leases

The Company has operating leases primarily for office space located in Vilnius, Lithuania and Tel Aviv, Israel.

The Company reviews the impairment of right-of-use assets (“ROU”) assets consistent with the approach applied for the Company’s other long-lived assets. The Company reviews the recoverability of long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations.

In connection with the restructuring we implemented in January 2025 (See Note 17 Restructuring, Impairments, and Related Charges for more details), we determined that the carrying value of the ROU asset for our office in Trondheim were not recoverable and recorded an impairment charge of approximately $140,000 in the fourth quarter of fiscal 2025. The remaining $61,000 lease liabilities as of July 31, 2026 related to the office in Trondheim is included and presented under accrued expenses and other current liabilities. The Company will continue to make lease payments under the lease until the end of the lease term on March 31, 2027, or sooner upon signing of an early lease termination agreement.

The Company’s ROU assets recorded and included in other assets were approximately $226,000 and $64,000 at July 31, 2026 and 2025, respectively.

The following table presents the lease-related assets and liabilities for leases recorded on the consolidated balance sheets (in thousands) as of July 31, 2026 and 2025:

	As of July 31,
	2026		2025
Operating leases:
Other assets	$	226	$	64

Accrued expenses and other current liabilities	$	153	$	144
Other liabilities		126		53
Total operating lease liabilities	$	279	$	196

The following table includes the components of our occupancy costs in our consolidated statements of operations and comprehensive income (loss):

	Years ended July 31,
(In thousands)	2026		2025
Operating lease cost (1)	$	250	$	142
Short-term lease cost	$	10	$	49
Variable lease cost (2)	$	22	$	94

(1)	Operating lease costs include costs associated with fixed lease payments and index-based variable payments that qualified for lease accounting under ASC 842, Leases and complied with the practical expedients and exceptions we elected.

(2)

Variable lease costs include costs that were not fixed at the lease commencement date and are not dependent on an index or rate. These costs were not included in the measurement of lease liabilities and primarily include variable non-lease costs, such as utilities, real estate taxes, insurance and maintenance.

The following table summarizes the weighted average remaining lease term and weighted average discount rate as of July 31, 2026 and 2025:

	As of July 31,
	2026			2025
Weighted average remaining lease term:
Operating leases		2.07 years			1.48 years
Weighted average discount rate:
Operating leases		5.55	%		4.86	%

Future minimum lease payments under non-cancellable leases at July 31, 2026 are as follows (in thousands):

Years ending July 31,	Operating Leases
2027	$	180
2028		112
2029		19
Total future minimum lease payments		311
Less: imputed interest		17
Total	$	294

Effective October 1, 2025, the Company commenced a new lease with a three-year term for a 3,600 square foot office space. The annual lease cost is approximately $103,000, including eight parking spaces.