Note 18—Dividends and Distributions

Cash Distributions

During the fiscal year ended July 31, 2026, the Company declared and paid four quarterly cash distributions to its stockholders totaling approximately $940,000. The distributions were as follows (in thousands):

Tax Status of Distributions

For U.S. federal income tax purposes, the tax treatment of distributions to stockholders is determined based on the Company’s current and accumulated earnings and profits (“E&P”), which may differ from income determined in accordance with U.S. GAAP due to differences in the tax and financial reporting treatment of certain items. Based on the Company’s analysis of its current and accumulated E&P, the distributions made during the fiscal year ended July 31, 2026 were determined to constitute taxable dividends for U.S. federal income tax purposes.

Financial Reporting Treatment

For financial reporting purposes, because the Company had an accumulated deficit at the time each distribution was declared, the distributions were recorded as reductions to additional paid-in capital. Accordingly, the distributions had no impact on the Company’s results of operations for the fiscal year ended July 31, 2026.