Steel Connect (STCN) 10-Q 14 Dec 22 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Oct. 31, 2022	Dec. 07, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2022
Document Transition Report	false
Entity File Number	001-35319
Entity Registrant Name	Steel Connect, Inc.
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000914712
Current Fiscal Year End Date	--07-31
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-2921333
Entity Address, Address Line One	2000 Midway Ln
Entity Address, City or Town	Smyrna
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37167
City Area Code	914
Local Phone Number	461-1276
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		60,657,539
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	STCN
Security Exchange Name	NASDAQ
Series D Preferred Stock
Entity Information [Line Items]
No Trading Symbol	true
Title of 12(b) Security	Rights to Purchase Series D Junior Participating Preferred Stock
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Current Assets
Cash and cash equivalents	$ 59,948	$ 53,142
Accounts receivable, trade, net of allowance for doubtful accounts of $1,004 and $44 at October 31, 2022 and July 31, 2022, respectively	35,680	40,083
Inventories, net	8,991	8,151
Funds held for clients	4,856	4,903
Prepaid expenses and other current assets	3,692	3,551
Total current assets	113,167	109,830
Property and equipment, net	3,504	3,534
Operating lease right-of-use assets	17,491	19,655
Other assets	3,772	4,730
Total assets	137,934	137,749
Current Liabilities
Accounts payable	31,633	30,553
Accrued expenses	27,285	28,396
Funds held for clients	4,856	4,903
Current lease obligations	5,581	6,466
Other current liabilities	13,643	13,482
Total current liabilities	82,998	83,800
Convertible note payable	11,557	11,047
Long-term lease obligations	11,754	12,945
Other long-term liabilities	4,969	3,983
Total long-term liabilities	28,280	27,975
Total liabilities	111,278	111,775
Contingently redeemable preferred stock, $0.01 par value per share. 35,000 shares authorized, issued and outstanding at October 31, 2022 and July 31, 2022	35,180	35,180
Stockholders' deficit:
Preferred stock, $0.01 par value per share. 4,965,000 shares authorized at October 31, 2022 and July 31, 2022; zero shares issued and outstanding at October 31, 2022 and July 31, 2022	0	0
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 60,657,539 issued and outstanding shares at October 31, 2022; 60,529,558 issued and outstanding shares at July 31, 2022	606	605
Additional paid-in capital	7,479,542	7,479,366
Accumulated deficit	(7,488,897)	(7,493,317)
Accumulated other comprehensive income	225	4,140
Total stockholders' deficit	(8,524)	(9,206)
Total liabilities, contingently redeemable preferred stock and stockholders' deficit	$ 137,934	$ 137,749

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Accounts receivable, trade, allowance for doubtful accounts	$ 1,004	$ 44
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	4,965,000	4,965,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,400,000,000	1,400,000,000
Common stock, shares issued (in shares)	60,657,539	60,529,558
Common stock, shares outstanding (in shares)	60,657,539	60,529,558
Contingent Redeemable Preferred Stock
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	35,000	35,000
Preferred stock, shares issued (in shares)	35,000	35,000
Preferred stock, shares outstanding (in shares)	35,000	35,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Income Statement [Abstract]
Net revenue	$ 51,359	$ 44,354
Cost of revenue	37,094	34,948
Gross profit	14,265	9,406
Operating expenses:
Selling, general and administrative	10,386	8,835
Total operating expenses	10,386	8,835
Operating income	3,879	571
Other income (expense):
Interest income	144	3
Interest expense	(826)	(761)
Other gains (losses), net	2,886	(481)
Total other income (expense), net	2,204	(1,239)
Income (loss) from continuing operations before income taxes	6,083	(668)
Income tax expense	1,126	315
Net income (loss) from continuing operations	4,957	(983)
Net loss from discontinued operations	0	(18,511)
Net income (loss)	4,957	(19,494)
Less: Preferred dividends on redeemable preferred stock	(537)	(537)
Net income (loss) attributable to common stockholders	$ 4,420	$ (20,031)
Net income (loss) per common shares - basic
Continuing operations, basic (in usd per share)	$ 0.07	$ (0.02)
Discontinued operations, basic (in usd per share)	0	(0.31)
Basic net income (loss) per share attributable to common stockholders (in usd per share)	0.07	(0.33)
Net income (loss) per common shares - diluted
Continuing operations, diluted (in usd per share)	0.06	(0.02)
Discontinued operations, diluted (in usd per share)	0	(0.31)
Diluted net income (loss) per share attributable to common stockholders (in usd per share)	$ 0.06	$ (0.33)
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted average common shares outstanding, basic (in shares)	60,050	60,307
Weighted average common shares outstanding, diluted (in shares)	78,430	60,307

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 4,957	$ (19,494)
Other comprehensive (loss) income:
Foreign currency translation adjustment	(2,837)	198
Pension liability adjustments	(1,078)	0
Other comprehensive income	(3,915)	198
Comprehensive income (loss)	$ 1,042	$ (19,296)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning balance (in shares) at Jul. 31, 2021		63,099,496
Beginning balance at Jul. 31, 2021	$ 6,212	$ 632	$ 7,478,638	$ (7,480,220)	$ 7,162
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(19,494)			(19,494)
Preferred dividends	(537)			(537)
Issuance of common stock pursuant to employee stock purchase plan (in shares)		168
Restricted stock forfeitures, net of issuance (in shares)		(2,662,010)
Restricted stock grants, net of forfeitures	0	$ (27)	27
Share-based compensation	190		190
Other comprehensive items	198				198
Ending balance (in shares) at Oct. 31, 2021		60,437,654
Ending balance at Oct. 31, 2021	$ (13,431)	$ 605	7,478,855	(7,500,251)	7,360
Beginning balance (in shares) at Jul. 31, 2022	60,529,558	60,529,558
Beginning balance at Jul. 31, 2022	$ (9,206)	$ 605	7,479,366	(7,493,317)	4,140
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,957			4,957
Preferred dividends	(537)			(537)
Restricted stock grants (in shares)		127,981
Restricted stock grants, net of forfeitures	0	$ 1	(1)
Share-based compensation	177		177
Other comprehensive items	$ (3,915)				(3,915)
Ending balance (in shares) at Oct. 31, 2022	60,657,539	60,657,539
Ending balance at Oct. 31, 2022	$ (8,524)	$ 606	$ 7,479,542	$ (7,488,897)	$ 225

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ 4,957,000	$ (19,494,000)
Less: Loss from discontinued operations, net of tax	0	(18,511,000)
Net income (loss) from continuing operations	4,957,000	(983,000)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation	459,000	630,000
Amortization of deferred financing costs	12,000	34,000
Accretion of debt discount	510,000	386,000
Share-based compensation	177,000	191,000
Non-cash lease expense	2,230,000	2,391,000
Bad debt expense (recovery)	960,000	(5,000)
Other (gains) losses, net	(2,885,000)	481,000
Changes in operating assets and liabilities:
Accounts receivable, net	3,026,000	(875,000)
Inventories, net	(1,077,000)	(624,000)
Prepaid expenses and other current assets	(168,000)	737,000
Accounts payable, accrued restructuring and accrued expenses	1,553,000	(2,039,000)
Refundable and accrued income taxes, net	118,000	(268,000)
Other assets and liabilities	(1,620,000)	(3,876,000)
Net cash provided by (used in) operating activities	8,252,000	(3,820,000)
Cash flows from investing activities:
Additions of property and equipment	(548,000)	(363,000)
Proceeds from the disposition of property and equipment	16,000	0
Net cash used in investing activities	(532,000)	(363,000)
Cash flows from financing activities:
Preferred dividend payments	(537,000)	(537,000)
Repayments on capital lease obligations	(19,000)	(18,000)
Proceeds from issuance of common stock	0	1,000
Net cash used in financing activities	(556,000)	(554,000)
Net effect of exchange rate changes on cash, cash equivalents and restricted cash	(405,000)	(121,000)
Net increase (decrease) in cash, cash equivalents and restricted cash	6,759,000	(4,858,000)
Cash, cash equivalents and restricted cash, beginning of period	58,045,000	66,329,000
Cash, cash equivalents and restricted cash, end of period	64,804,000	61,471,000
Cash and cash equivalents, end of period	59,948,000	54,940,000
Restricted cash for funds held for clients, end of period	4,856,000	6,531,000
Cash flows from discontinued operations:
Operating activities	0	(6,606,000)
Investing activities	0	(4,318,000)
Financing activities	0	(1,500,000)
Net cash used in discontinued operations	$ 0	$ (12,424,000)

NATURE OF OPERATIONS

NATURE OF OPERATIONS	3 Months Ended
	Oct. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS Steel Connect, Inc. (the "Company"), is a holding company which operates through its wholly-owned subsidiary ModusLink Corporation ("ModusLink" or "Supply Chain"). ModusLink is a supply chain business process management company serving clients in markets such as consumer electronics, communications, computing, medical devices, software and retail. ModusLink designs and executes elements in its clients' global supply chains to improve speed to market, product customization, flexibility, cost, quality and service. The Company also produces and licenses an entitlement management solution for activation, provisioning, entitlement subscription and data collection from physical goods (connected products) and digital products. Disposition of IWCO Direct On February 25, 2022 (the "Disposal Date"), the Company entered into a transaction agreement (the “Transaction Agreement”) with (a) IWCO Direct Holding Inc. (''IWCO Direct" or "Direct Marketing") and its indirect subsidiaries, (b) Cerberus Business Finance, LLC, in its capacities as collateral agent and administrative agent under a financing agreement (in such capacities, the “Agent”), dated as of December 15, 2017, between IWCO Direct, IWCO Direct’s direct and indirect subsidiaries, the Agent and the lenders party thereto (the “Lenders”) (the “Financing Agreement”), (c) the Lenders, (d) the Lenders or their respective designees listed on the signature pages to the Transaction Agreement under the caption “Participating Lender Purchasers” (the “Participating Lender Purchasers”), (e) SPH Group Holdings LLC (the “Sponsor”) and (f) Instant Web Holdings, LLC (the “Buyer”), an entity owned by the Participating Lender Purchasers. On the Effective Date (as defined in the Transaction Agreement) and pursuant to the terms of the Transaction Agreement, the Company transferred all of its interests in IWCO Direct to the Buyer as part of a negotiated restructuring of the capital structure and certain financial obligations of IWCO Direct under the Financing Agreement as contemplated by the Transaction Agreement. The results of operations of the IWCO Direct business are reported as discontinued operations for the period presented. See Note 4 - "Discontinued Operations" for additional information. All references made to financial data in this Quarterly Report on Form 10-Q are to the Company's continuing operations, unless otherwise specifically noted. Liquidity and Capital Resources Steel Connect, Inc. (as parent company, the “Parent”) Historically, the Parent financed its operations and met its capital requirements primarily through funds generated from operations, the sale of its securities, borrowings from lending institutions and sales of facilities that were not fully utilized. The Parent believes it has access to adequate resources to meet its needs for normal operating costs, capital expenditures, debt obligations and working capital for at least the next twelve months. Upon a redemption request by the holder of the Preferred Stock (as discussed in Note 16 - "Related Party Transactions" and in the Company's Fiscal Year 2022 Form 10-K filed), the Parent believes it is probable that it has access to adequate resources, including cash on hand and potential dividends from ModusLink, to pay the redemption price and continue its operations. As of October 31, 2022, these resources include cash and cash equivalents and ModusLink's credit agreement with Umpqua Bank (the “Umpqua Revolver”), as lender and as agent. The Umpqua Revolver provides for a maximum credit commitment of $12.5 million and a sublimit of $5.0 million for letters of credit and expires on March 16, 2024. There was no balance outstanding on the Umpqua Revolver as of October 31, 2022. See Note 9 - "Debt" for further details regarding the Umpqua Revolver. ModusLink believes that if dividends to the Parent are required, it would have access to adequate resources to meet its operating needs while remaining in compliance with the Umpqua Revolver's covenants over the next twelve months. However, there can be no assurances that ModusLink will continue to have access to its line of credit under the Umpqua Revolver if its financial performance does not satisfy the financial covenants set forth in its financing agreement, which could also result in the acceleration of its debt obligations by its lender, adversely affecting liquidity. As of October 31, 2022 and July 31, 2022, the Company had cash and cash equivalents of $59.9 million and $53.1 million, respectively. As of October 31, 2022, the Company had excess working capital of $30.2 million. Impact of COVID-19 The COVID-19 pandemic (in particular, the emergence of new variants of the virus across the globe) has caused, and may continue to cause, significant disruptions in the U.S. and global economies. Measures taken by national and local governments in the United States and around the world restricted, and in certain jurisdictions continue to restrict, individuals’ daily activities and curtail or cease many businesses’ normal operations. The COVID-19 pandemic has adversely impacted, and may further adversely impact, nearly all aspects of our business and markets, including our workforce and the operations of our clients, suppliers, and business partners. Beginning in March 2020, we experienced impacts to our customers' demand, facility operations, supply chain, availability and productivity of personnel, while also working to comply with rapidly evolving international, federal, state and local restrictions and recommendations on travel and workplace health and safety. We experienced disruptions to our business continuity as a result of temporary closures of certain of ModusLink’s facilities in the third and fourth quarters of fiscal year 2020, as well as the fourth quarter of fiscal year 2021. However, these temporary closures did not have a significant impact on ModusLink’s operations More recently, an outbreak in Mainland China forced temporary lockdown orders from March 14, 2022 to March 20, 2022 in several cities in which ModusLink operates. In April and May 2022, there were further temporary lockdown orders which impacted several ModusLink facilities in China; however, ModusLink was able to resume operations on May 5, 2022 at one site and at another site on May 31, 2022. In July 2022, there were further temporary lockdown orders, which impacted one ModusLink facility in China. In September and October 2022, there were further temporary lockdown orders, which impacted several ModusLink facilities in China. The lockdowns in China have not had a significant impact to ModusLink’s operations through the filing of this Quarterly Report on Form 10-Q. If the situation continues at this level or worsens, however, it could result in a potential adverse impact on our business, results of operations and financial condition. We continue to closely monitor the impact of COVID-19 on all aspects of our business and geographies, including its impact on our clients, employees, suppliers, vendors, business partners and distribution channels. We believe that such impacts could include the continued disruption to the demand for our businesses' products and services; disruptions in or closures of our business operations or those of our customers or suppliers; the impact of the global business and economic environment on liquidity and the availability of capital; increased costs and delays in payments of outstanding receivables beyond normal payment terms; supply chain disruptions; uncertain demand; and the effect of any initiatives or programs that we may undertake to address financial and operational challenges faced by our customers. Despite indications of economic recovery, the severity of the impact of the COVID-19 pandemic on the Company’s business in the future is difficult to predict and will depend on a number of uncertain factors and trends. Such factors and trends include, but are not limited to: the duration and severity of the virus and its current variants; the emergence of new variant strains; the widespread use of vaccines; the impact of the global business and economic environment on liquidity and the availability of capital; the extent and severity of the impact on our customers and suppliers; and U.S. and foreign government actions that have been taken, or may be taken in the future, to mitigate adverse economic or other impacts or to mitigate the spread of the virus and its variants. The Company continues to monitor for any developments or updates to COVID-19 guidelines from public health and governmental authorities, as well as the protection of the health and safety of its personnel, and is continuously working to ensure that its health and safety protocols, business continuity plans and crisis management protocols are in place to help mitigate any negative impacts of the COVID-19 pandemic on the Company’s employees, business or operations. Proposed Merger with Steel Holdings On June 12, 2022, the Company, Steel Partners Holdings L.P. (“Steel Holdings”) and SP Merger Sub, Inc., a wholly owned subsidiary of Steel Holdings (“Merger Sub”), entered into an agreement and plan of merger (the “Merger Agreement”), pursuant to which Merger Sub would merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Steel Holdings. The Merger Agreement provided that each share of the Company’s common stock issued and outstanding immediately prior to the effective time of the Merger (other than dissenting shares and shares owned by the Company, Steel Holdings or any of their respective subsidiaries) would, subject to the terms and conditions set forth in the Merger Agreement, be converted into the right to receive (i) $1.35 in cash, without interest and (ii) one contingent value right to receive a pro rata share of the proceeds received by the Company, Steel Holdings or any of their affiliates with respect to the sale, transfer or other disposition of all or any portion of the assets currently owned by ModusLink within two years of the Merger’s closing date, to the extent such proceeds exceed $80.0 million plus certain related costs and expenses. Steel Holdings and certain of its affiliates also entered into a Voting and Support Agreement, dated as of June 12, 2022 (the “Voting and Support Agreement”), pursuant to which, among other things, they agreed to vote all shares of common stock and Series C Preferred Stock beneficially owned by them in favor of the adoption of the Merger Agreement and the Merger and any alternative acquisition agreement approved by the Company's Board of Directors (acting on the recommendation of the special committee (the “Special Committee”) of independent and disinterested directors formed to consider and negotiate the terms and conditions of the Merger and to make a recommendation to our Board of Directors). Our Board of Directors, acting on the unanimous recommendation of the Special Committee, and the Board of Directors of Steel Partner Holdings GP Inc., the general partner of Steel Holdings, approved the Merger Agreement and the transactions contemplated by the Merger Agreement (such transactions, collectively, the “Transactions”) and resolved to recommend the stockholders adopt the Merger Agreement and approve the Transactions. The Special Committee, which is comprised solely of independent and disinterested directors of the Company who are unaffiliated with Steel Holdings, exclusively negotiated the terms of the Merger Agreement with Steel Holdings, with the assistance of its independent financial and legal advisors. On November 15, 2022, Steel Holdings terminated the Merger Agreement. The Merger Agreement was terminated following the 2021 Annual Meeting of Stockholders of the Company at which the proposal to adopt the Merger Agreement was (a) approved by the affirmative vote of the holders of (i) a majority of the outstanding shares of Series C Preferred Stock, par value $0.01 per share, of the Company and (ii) a majority in voting power of the issued and outstanding shares of common stock and Series C Preferred Stock (voting on an as converted to shares of common stock basis), voting together as a single class, but (b) not approved by a majority of the outstanding shares of common stock not owned, directly or indirectly, by Steel Holdings, and Merger Sub, any other officer or director of the Company or any other person having any equity interest in, or any right to acquire any equity interest in, Merger Sub or any person of which Merger Sub is a direct or indirect subsidiary as required under the Merger Agreement. As a result of the termination of the Merger Agreement, the Voting and Support Agreement, dated as of June 12, 2022, by and among the Company, Steel Holdings and certain of its affiliates, automatically terminated pursuant to its terms.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Oct. 31, 2022
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of a normal recurring nature) considered necessary for fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes for the year ended July 31, 2022 (Fiscal Year 2022), which are contained in the Company's Fiscal Year 2022 Form 10-K filed. The results for the three months ended October 31, 2022 are not necessarily indicative of the results to be expected for the full fiscal year. The year-end condensed consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. All significant intercompany transactions and balances have been eliminated in consolidation. The Company considers events or transactions that occur after the balance sheet date but before the issuance of financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. For the three months ended October 31, 2022, the Company evaluated subsequent events for potential recognition and disclosure through the date these financial statements were filed. Please refer to Note 18 - "Subsequent Events" for further details. Reclassification On the statement of cash flows for the three months ended October 31, 2022 and 2021, the Company reclassified bad debt expense (recovery) as a non-cash adjustment to net income (loss) which totaled $1.0 million and $(5.0) thousand from Accounts receivable, net to Bad debt expense (recovery). This reclassification was made to prior year balances to conform with current reporting and had no impact on net loss or stockholder's deficit.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Oct. 31, 2022
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Issued and Not Yet Implemented In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Loses on Financial Instruments , an ASU that requires measurement and recognition of expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The ASU will be effective for the Company beginning in the first quarter of the fiscal year ending July 31, 2024 on a modified retrospective basis, which requires a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40) . The amendment in this update simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share. The update also requires entities to provide expanded disclosures about the terms and features of convertible instruments, how the instruments have been reported in the entity's financial statements and information about events, conditions and circumstances that can affect the assessment of the amount or timing of an entity's future cash flows related to those instruments. The guidance is effective for interim and annual periods beginning in our fiscal year ending July 31, 2025, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The ASU requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This guidance is effective for all entities for annual periods beginning after December 15, 2021 and early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. Other new pronouncements issued but not effective until after October 31, 2022 are not expected to have a material impact on our financial condition, results of operations or liquidity.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Oct. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	DISCONTINUED OPERATIONS As discussed in Note 1 - "Nature of Operations", on February 25, 2022, the Company completed the disposition of IWCO Direct. The Company received no cash consideration for the disposition (the entire transaction being referred to as the “IWCO Direct Disposal”). As of the Disposal Date and subject to the terms and conditions of the Transaction Agreement, the parties entered into certain mutual releases as fully set forth in the Transaction Agreement. In addition, as part of the overall transaction, the Buyer issued a note in the principal amount of $6.9 million payable to the Company as consideration for intercompany obligations owed by IWCO Direct to the Company (the “Subordinated Note”). The Subordinated Note is subordinated to the obligations under the Financing Agreement (including any amendments or other modifications thereto) and matures on the date that is the earlier of (a) the later of (i) August 25, 2027 and (ii) the date that is six months after the maturity of the Financing Agreement, or (b) the date that is six months after repayment in full of the obligations under the Financing Agreement. Due to the subordinated nature of the Subordinated Note and the assessment of collectability, the Company determined the fair value of the Subordinated Note was zero. The Company deconsolidated IWCO Direct as of the Disposal Date as the Company no longer held a controlling financial interest in IWCO Direct as of that date. The Company did not have any amounts included in accumulated other comprehensive loss associated with IWCO Direct at the time of deconsolidation. The disposal of IWCO Direct represents a strategic shift to exit the direct marketing business and its results are reported as discontinued operations for all periods presented. A summary of the results of the discontinued operations is as follows: Three months ended October 31, 2021 Net revenue $ 81,059 Cost of revenue 75,185 Gross profit 5,874 Operating expenses: Selling, general and administrative 13,170 Amortization of intangible assets 4,182 Total operating expenses 17,352 Operating loss (11,478) Other expense: Interest expense (7,033) Total other expense, net (7,033) Loss from discontinued operations before income taxes (18,511) Income tax expense — Loss from discontinued operations, net of tax $ (18,511)

INVENTORIES, NET

INVENTORIES, NET	3 Months Ended
	Oct. 31, 2022
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES, NET The table below presents the components of Inventories, net: October 31, July 31, (In thousands) Raw materials $ 8,274 $ 7,330 Work-in-process 134 124 Finished goods 583 697 $ 8,991 $ 8,151

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Oct. 31, 2022
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following tables reflect the components of "Accrued expenses" and "Other current liabilities": October 31, July 31, Accrued Expenses (In thousands) Accrued compensation $ 5,781 $ 5,099 Accrued audit, tax and legal 3,841 4,564 Accrued taxes 3,385 3,344 Accrued occupancy costs 1,570 1,671 Accrued IT costs 1,160 1,108 Accrued contract labor 1,009 792 Accrued freight 1,023 782 Accrued other 9,516 11,036 Total accrued expenses $ 27,285 $ 28,396 As of both October 31, 2022 and July 31, 2022, accrued other was primarily comprised of accrued price concessions for customer programs that have unit price or management fee true-ups based on their contract agreements. October 31, July 31, Other Current Liabilities (In thousands) Accrued pricing liabilities $ 9,435 $ 9,435 Deferred revenue - current 2,357 2,705 Other 1,851 1,342 Total other current liabilities $ 13,643 $ 13,482 As of both October 31, 2022 and July 31, 2022, the Company had accrued pricing liabilities of approximately $9.4 million. As previously reported by the Company, several principal adjustments were made to its historic financial statements for periods ending on or before January 31, 2012, the most significant of which related to the treatment of vendor rebates in its pricing policies. Where the retention of a rebate or a mark-up was determined to have been inconsistent with a client contract, the Company concluded that these amounts were not properly recorded as revenue. Accordingly, revenue was reduced by an equivalent amount for the period that the rebate was estimated to have been affected. A corresponding liability for the same amount was recorded in that period (referred to as accrued pricing liabilities). The Company believes that it may not ultimately be required to pay all or any of the accrued pricing liabilities based upon the expiration of statutes of limitations, and due in part to the nature of the interactions with its clients. The remaining accrued pricing liabilities as of October 31, 2022 will be derecognized when there is sufficient information for the Company to conclude that such liabilities are not subject to escheatment and have been extinguished, which may occur through payment, legal release, or other legal or factual determination. The Company has not provided for any provision for interest and or penalties related to escheatment as it has concluded that such is not probable to occur, and any potential interest and penalties cannot be reasonably estimated.

RESTRUCTURING

RESTRUCTURING	3 Months Ended
	Oct. 31, 2022
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING ModusLink Restructuring Activities During the fiscal year ended July 31, 2021, ModusLink implemented a strategic plan to reorganize its sales function and the e-Business operations. The restructuring charges associated with this plan were primarily composed of employee termination costs. In November 2021, ModusLink amended its strategic plan to include reorganizing its supply chain operations and recorded a restructuring charge of approximately $0.9 million during the three months ended January 31, 2022. In July 2022, ModusLink reorganized its supply chain operations in Ireland and recorded a restructuring charge of approximately $0.6 million during the three months ended July 31, 2022. The restructuring charges recorded in fiscal year ended July 31, 2022 were primarily composed of employee termination costs. ModusLink did not incur any restructuring charges during the three months ended October 31, 2022 and October 31, 2021. Changes to the restructuring liability during the three months ended October 31, 2022 were as follows: (in thousands) Balance as of July 31, 2022 $ 892 Costs incurred — Cash payments (551) Non-cash relief of accrual — Change in estimates (25) Balance as of October 31, 2022 $ 316 The restructuring liability is recorded as a component of accrued expenses in the condensed consolidated balance sheets.

LEASES

LEASES	3 Months Ended
	Oct. 31, 2022
Leases [Abstract]
LEASES	LEASES The table below presents the components of the Company's lease expense: Three Months Ended 2022 2021 (In thousands) Operating lease cost $ 2,405 $ 2,510 Short-term lease expense 438 287 Variable lease cost 4 11 Interest on finance lease liabilities — 1 $ 2,847 $ 2,809 Supplemental Cash Flow Information Supplemental cash flow information related to the Company's leases was as follows: Three Months Ended 2022 2021 (In thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 2,207 $ 2,498 Operating cash flows from finance leases $ — $ 1 Financing cash flows from finance leases $ 19 $ 18
LEASES	LEASES The table below presents the components of the Company's lease expense: Three Months Ended 2022 2021 (In thousands) Operating lease cost $ 2,405 $ 2,510 Short-term lease expense 438 287 Variable lease cost 4 11 Interest on finance lease liabilities — 1 $ 2,847 $ 2,809 Supplemental Cash Flow Information Supplemental cash flow information related to the Company's leases was as follows: Three Months Ended 2022 2021 (In thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 2,207 $ 2,498 Operating cash flows from finance leases $ — $ 1 Financing cash flows from finance leases $ 19 $ 18

DEBT

DEBT	3 Months Ended
	Oct. 31, 2022
Debt Disclosure [Abstract]
DEBT	DEBT The components of debt and a reconciliation to the carrying amount of long-term debt is presented in the table below: October 31, July 31, (In thousands) Unsecured 7.50% Convertible Senior Note due March 1, 2024 $ 14,940 $ 14,940 Credit Facilities Umpqua Revolver — — Less: unamortized discounts and issuance costs (a) (3,450) (3,972) Total debt, net $ 11,490 $ 10,968 (a) Amounts include deferred debt issuance costs related to credit facilities of $67 thousand and $79 thousand as of October 31, 2022 and July 31, 2022, respectively, which are presented in Other Assets. 7.50% Convertible Senior Note On February 28, 2019, the Company entered into a 7.50% Convertible Senior Note Due 2024 Purchase Agreement (the "SPHG Note Purchase Agreement") with SPH Group Holdings LLC ("SPHG Holdings"), whereby SPHG Holdings agreed to loan the Company $14.9 million in exchange for a 7.50% Convertible Senior Note due 2024 (the "SPHG Note"). SPHG Holdings has the right, at its option, prior to the close of business on the business day immediately preceding March 1, 2024, the maturity date of the SPHG Note, to convert the SPHG Note or a portion thereof that is $1,000 or an integral multiple thereof, into shares of common stock (if the Company has not received a required stockholder approval) or cash, shares of common stock or a combination of cash and shares of common stock, as applicable (if the Company has received a required stockholder approval), at an initial conversion rate of 421.2655 shares of common stock, which is equivalent to an initial conversion price of approximately $2.37 per share (subject to adjustment as provided in the SPHG Note) per $1,000 principal amount of the SPHG Note, subject to, and in accordance with, the settlement provisions of the SPHG Note. As of October 31, 2022, the if-converted value of the SPHG Note did not exceed the principal value of the SPHG Note. As of October 31, 2022, the remaining period over which the unamortized discount will be amortized is 16 months. As of October 31, 2022 and July 31, 2022, the net carrying value of the SPHG Note was $11.6 million and $11.0 million, respectively. The effective interest rate on the SPHG Note, including accretion of the discount, is 27.8%. The following tables reflect the components of the SPHG Note: October 31, July 31, (In thousands) Carrying amount of equity component $ 8,200 $ 8,200 Principal amount of note $ 14,940 $ 14,940 Unamortized debt discount (3,383) (3,893) Net carrying amount $ 11,557 $ 11,047 Three Months Ended 2022 2021 (In thousands) Interest expense related to contractual interest coupon $ 286 $ 286 Interest expense related to accretion of the discount 510 386 Interest expense related to revolving credit facilities (see below) 30 89 $ 826 $ 761 Umpqua Revolver On March 16, 2022, ModusLink, as borrower, entered into a new credit agreement with Umpqua Bank as lender and as agent. The Umpqua Revolver provides for a maximum credit commitment of $12.5 million and a sublimit of $5.0 million for letters of credit and expires on March 16, 2024. Concurrent with signing the Umpqua Revolver ModusLink submitted a notice of termination to MidCap Financial Trust for its $12.5 million revolving credit facility (the “MidCap Credit Facility”), which was set

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Oct. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Legal Proceedings On April 13, 2018, a purported shareholder, Donald Reith, filed a verified complaint, Reith v. Lichtenstein, et al., 2018-277 (Del. Ch.) in the Delaware Court of Chancery. The complaint alleges class and derivative claims for breach of fiduciary duty and/or aiding and abetting breach of fiduciary duty and unjust enrichment against the Board of Directors, Warren G. Lichtenstein, Glen M. Kassan, William T. Fejes, Jack L. Howard, Jeffrey J. Fenton, Philip E. Lengyel and Jeffrey S. Wald; and stockholders Steel Holdings, Steel Partners, Ltd., SPHG Holdings, Handy & Harman Ltd. and WHX CS Corp. (collectively, the "Steel Parties") in connection with the acquisition of $35.0 million of the Series C Convertible Preferred Stock by SPHG Holdings and equity grants made to Messrs. Lichtenstein, Howard and Fejes on December 15, 2017 (collectively, the "Challenged Transactions"). The Company is named as a nominal defendant. The complaint alleges that although the Challenged Transactions were approved by a Special Committee consisting of the independent members of the Board of Directors (Messrs. Fenton, Lengyel and Wald), the Steel Parties dominated and controlled the Special Committee, who approved the Challenged Transactions in breach of their fiduciary duty. Plaintiff alleges that the Challenged Transactions unfairly diluted stockholders and therefore unjustly enriched Steel Holdings, SPHG Holdings and Messrs. Lichtenstein, Howard and Fejes. The complaint also alleges that the Board of Directors made misleading disclosures in the Company's proxy statement for the 2017 Annual Meeting of Stockholders in connection with seeking approval to amend the 2010 Incentive Award Plan to authorize the issuance of additional shares to accommodate certain shares underlying the equity grants. Remedies requested include rescission of the Series C Convertible Preferred Stock and equity grants, disgorgement of any unjustly obtained property or compensation and monetary damages. On June 8, 2018, defendants moved to dismiss the complaint for failure to plead demand futility and failure to state a claim. On June 28, 2019, the Court denied most of the motion to dismiss allowing the matter to proceed. The defendants answered the complaint on September 6, 2019, denying all liability. On August 13, 2021, the Company, together with certain of its current and former directors of the Board, Warren Lichtenstein, Glen Kassan, William Fejes, Jr., Jack Howard, Jeffrey Fenton and Jeffrey Wald, as well as other named defendants (collectively, the “Defendants”), entered into a memorandum of understanding (the “MOU”) with Donald Reith (the “Plaintiff”) in connection with the settlement of the Reith v. Lichtenstein, et al., C.A. No. 2018-0277-MTZ (Del. Ch. 2018) class and derivative action. A definitive Stipulation of Settlement (the “Stipulation”) incorporating the terms of the MOU was filed with the Court on February 18, 2022. Pursuant to the MOU and Stipulation, and contingent on approval of the terms by the court, the Defendants agreed to cause their directors’ and officers’ liability insurance carriers to pay to the Company $2.75 million in cash. Additionally, under the MOU and separate letter agreements between the Company and such individuals (the “Surrender Agreements”), Messrs. Lichtenstein, Howard and Fejes agreed to surrender to the Company an aggregate 3.3 million shares that they had initially received in December 2017 in consideration for services to the Company. The surrenders and cancellations are in the following amounts: for Mr. Lichtenstein, 1,833,333 vested shares and 300,000 unvested shares; for Mr. Howard, 916,667 vested shares and 150,000 unvested shares; and for Mr. Fejes, 100,000 vested shares. On August 17, 2021, Mr. Lichtenstein and Mr. Howard surrendered the shares required under the MOU, the Stipulation and their respective Surrender Agreements, and in December 2021 Mr. Fejes did the same. All such shares were subsequently cancelled. Pursuant to the MOU and Stipulation, the Company has also agreed to pay the Plaintiff’s counsel legal fees for this matter in an amount up to $2.05 million, if approved by the court. After the parties filed papers in support of court approval of the settlement, and an objector filed papers in opposition to approval of the settlement, and after hearings held on August 12 and August 18, 2022, the parties submitted an amendment to the Stipulation: (i) increasing the proposed total contribution of the insurers to $3.0 million, (ii) reducing Plaintiff’s counsel’s fee request to $1.6 million, and (iii) providing that if the then pending proposed Merger was consummated, the $3 million, minus fees awarded to Plaintiff’s counsel and costs of distribution of up to $125,000, would be distributed to the holders of eligible shares of Common Stock (as defined in the Merger Agreement governing the Merger), other than the Defendants; provided, however, that no distribution is required to be made to any holder whose proportionate share of the distribution would be less than $1.00. On September 23, 2022, the court ruled that it was denying approval of the settlement. At the court’s instruction, the parties provided a status report on October 24, 2022, reporting that the vote on the proposed Merger had been postponed to October 28, 2022, and proposing to file a revised status report on November 23, 2022. The parties filed the status report on November 23, 2022, reporting that due to the termination of the proposed Merger on November 15, 2022, the parties were conferring on the next steps, and therefore proposed providing another status report within 30 days, or on other such date as the court may order. On November 28, 2022, the court issued a minute order advising that no further status updates were required to be filed in the matter and noting that the court would remain available to hear requests for relief as needed. The possible recovery, if any, with respect to this dispute cannot be determined as of the date of this Quarterly Report on Form 10-Q.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Oct. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION Disaggregation of Revenue The following table presents the Company's revenues from contracts with customers disaggregated by major good or service line and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments. Three Months Ended October 31, 2022 2021 (In thousands) Major Goods/Service Lines Supply chain management services $ 50,931 $ 43,942 Other 428 412 $ 51,359 $ 44,354 Timing of Revenue Recognition Services transferred over time $ 51,359 $ 44,354 $ 51,359 $ 44,354 Supply Chain Management Services ModusLink's revenue primarily comes from the sale of supply chain management services to its clients. Amounts billed to customers under these arrangements include revenue attributable to the services performed as well as for materials procured on the customer's behalf as part of its service to them. The majority of these arrangements consist of two distinct performance obligations (i.e., warehousing/inventory management service and a separate kitting/packaging/assembly service), revenue related to each of which is recognized over time as services are performed using an input method based on the level of efforts expended. Other Other revenue consists of cloud-based software subscriptions, software maintenance and support service contracts, and fees for professional services. Revenue related to these arrangements is recognized on a straight-line basis over the term of the agreement or over the term of the agreement in proportion to the costs incurred in satisfying the obligations under the contract. Contract Balances Timing of revenue recognition may differ from timing of invoicing to customers. The Company records contract assets and liabilities related to its contracts with customers as follows: • Accounts receivable when revenue is recognized prior to receipt of cash payments and if the right to such amounts is unconditional and solely based on the passage of time. • Contract asset when the Company recognizes revenue based on efforts expended but the right to such amount is conditional upon satisfaction of another performance obligation. Contract assets are primarily comprised of fees related to marketing solutions offerings and supply chain management services. The Company's contract assets are all short-term in nature and are included in prepaid expenses and other current assets in the condensed consolidated balance sheets. • Deferred revenue when cash payments are received or due in advance of performance. Deferred revenue is primarily comprised of fees related to supply chain management services, cloud-based software subscriptions and software maintenance and support service contracts, which are generally billed in advance. Deferred revenue also includes other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. The deferred revenue balance is classified as a component of other current liabilities and other long-term liabilities on the Company's condensed consolidated balance sheets. The table below presents information for the Company's contract balances: October 31, July 31, (In thousands) Accounts receivable, trade, net $ 35,680 $ 40,083 Contract assets 358 369 Deferred revenue - current $ 2,357 $ 2,705 Deferred revenue - long-term 112 134 Total deferred revenue $ 2,469 $ 2,839 Remaining Performance Obligations Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the three months ended October 31, 2022 and October 31, 2021, were as follows: Three Months Ended 2022 2021 (In thousands) Balance at beginning of period $ 2,839 $ 2,320 Deferral of revenue 271 508 Recognition of deferred amounts upon satisfaction of performance obligation (641) (309) Balance at end of period $ 2,469 $ 2,519 The Company expects to recognize approximately $2.4 million of the deferred revenue over the next twelve months and the remaining $0.1 million beyond that time period. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Oct. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company operates in multiple taxing jurisdictions, both within and outside of the United States. For the three months ended October 31, 2022, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of both October 31, 2022 and July 31, 2022, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $0.8 million. On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law in the United States. Among other provisions, the IRA includes a 15.0% corporate minimum tax rate applied to certain large corporations and a 1.0% excise tax on corporate stock repurchases made after December 31, 2022. We do not expect the IRA to have a material impact on our consolidated financial statements. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security ("CARES") Act into law, which is intended to respond to the COVID-19 pandemic and its impact on the economy, public health, state and local governments, individuals and businesses. The CARES Act contains numerous tax provisions, including temporary changes to the future limitations on interest deductions related to Section 163(j) of the U.S. Internal Revenue Code (the “IRC”). As of October 31, 2022, the Company elected to defer the employer-paid portion of social security taxes, which is expected to provide the Company with approximately $0.3 million of additional liquidity. The remaining deferral is due by December 31, 2022. The Company does not expect the provisions of the CARES Act to have a significant impact on the income tax provision, income tax payable or deferred income tax positions of the Company. Uncertain Tax Positions In accordance with the Company's accounting policy, interest related to unrecognized tax benefits is included in the income tax expense line of the condensed consolidated statements of operations. As of October 31, 2022 and July 31, 2022, the liabilities

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	3 Months Ended
	Oct. 31, 2022
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	EARNINGS (LOSS) PER SHARE The following table reconciles net earnings (loss) per share for the three months ended October 31, 2022 and 2021: Three Months Ended 2022 2021 (In thousands, except per share data) Reconciliation of net income (loss) to net income (loss) attributable to common stockholders after assumed conversions: Net income (loss) from continuing operations $ 4,957 $ (983) Loss from discontinued operations — (18,511) Net income (loss) 4,957 (19,494) Less: Preferred dividends on redeemable preferred stock (537) (537) Net income (loss) attributable to common stockholders $ 4,420 $ (20,031) Effect of dilutive securities: Dividends on preferred stock 537 — Net income (loss) attributable to common stockholders - assuming dilution $ 4,957 $ (20,031) Net income (loss) per common share - basic Net income (loss) from continuing operations $ 0.07 $ (0.02) Net loss from discontinued operations — (0.31) Net income (loss) attributable to common stockholders $ 0.07 $ (0.33) Net income (loss) per common share - diluted Net income (loss) from continuing operations $ 0.06 $ (0.02) Net loss from discontinued operations — (0.31) Net income attributable to common stockholders $ 0.06 $ (0.33) Weighted average common shares outstanding - basic 60,050 60,307 Effect of dilutive securities: Common stock equivalents - Restricted stock and restricted stock shares 523 — Common stock equivalents - Preferred stock 17,857 — Weighted average common shares outstanding - diluted 78,430 60,307 Basic net income (loss) per common share is calculated using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share, if any, gives effect to diluted stock options (calculated based on the treasury stock method), non-vested restricted stock shares purchased under the employee stock purchase plan and shares issuable upon debt or preferred stock conversion (calculated using an as-if converted method). For the three months ended October 31, 2022, $0.8 million of interest expense, net of tax related to convertible debt was excluded from the numerator in the calculation of diluted net income per share as their inclusion would have been antidilutive. For the three months ended October 31, 2021, $0.7 million of interest expense, net of tax impact related to convertible debt and $0.5 million of preferred dividends were excluded from the numerator in the calculation of diluted net loss per share as their inclusion would have been antidilutive. For the three months ended October 31, 2022, 6.3 million common stock equivalent shares (including those related to convertible debt) were excluded from the denominator in the calculation of diluted net income per share as their inclusion would have been antidilutive. For the three months ended October 31, 2021, 24.2 million common stock equivalent shares (including those related to convertible debt and convertible debt and preferred stock) were excluded from the denominator in the calculation of diluted net loss per share as their inclusion would have been antidilutive.

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Oct. 31, 2022
Equity [Abstract]
COMPREHENSIVE INCOME (LOSS)	COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) combines net income (loss) and other comprehensive items. Other comprehensive items represent certain amounts that are reported as components of stockholders' equity in the accompanying condensed consolidated balance sheets. Accumulated other comprehensive items consist of the following: Foreign Pension Total (In thousands) Accumulated other comprehensive income (loss) as of July 31, 2022 $ 6,063 $ (1,923) $ 4,140 Foreign currency translation adjustment (2,837) — (2,837) Pension liability adjustments — (1,078) (1,078) Net current-period other comprehensive income (2,837) (1,078) (3,915) Accumulated other comprehensive income (loss) as of October 31, 2022 $ 3,226 $ (3,001) $ 225 Foreign Pension Total (In thousands) Accumulated other comprehensive income (loss) as of July 31, 2021 $ 9,762 $ (2,600) $ 7,162 Foreign currency translation adjustment 198 — 198 Net current-period other comprehensive income 198 — 198 Accumulated other comprehensive income (loss) as of October 31, 2021 $ 9,960 $ (2,600) $ 7,360 During the year ended July 31, 2020, a Netherlands defined benefit pension plan was amended, so that active participants no longer accrued benefits as of January 1, 2020, which resulted in a pre-tax curtailment gain of $2.4 million recognized in accumulated other comprehensive income (loss). At that time, the active plan participants were moved into a new defined benefit contribution pension plan. During the three months ended October 31, 2022, the Company recorded an increase of approximately $1.1 million to accrued pension liabilities for the defined benefit pension plan as it was determined plan participants are entitled to unconditional indexation of benefits for as long as they remain in active service with the Company.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Oct. 31, 2022
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION Subsequent to the Company’s disposition of the Direct Marketing reportable segment in the IWCO Direct Disposal, the Company has one reportable segment: Supply Chain. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal, finance and share-based compensation, which are not allocated to the Company's reportable segment. The Corporate-level balance sheet information includes cash and cash equivalents, debt and other assets and liabilities which are not allocated to the operations of the Company's operating segment. All significant intra-segment amounts have been eliminated. Management evaluates segment performance based on segment net revenue and operating income (loss). Management evaluates segment performance based on segment net revenue, operating income (loss) and "adjusted operating income (loss)," which is defined as the operating income (loss) excluding net charges related to depreciation, amortization of long-lived asset impairment, share-based compensation and restructuring. These items are excluded because they may be considered to be of a non-operational or non-cash nature. Historically, the Company has recorded significant impairment and restructuring charges, and therefore management uses adjusted operating income (loss) to assist in evaluating the performance of the Company's core operations. Summarized financial information of the Company's continuing operations by operating segment is as follows: Three Months Ended 2022 2021 (In thousands) Net revenue: Supply Chain $ 51,359 $ 44,354 Total segment net revenue 51,359 44,354 Operating income: Supply Chain 5,851 1,973 Total segment operating income 5,851 1,973 Corporate-level activity (1,972) (1,402) Total operating (loss) income 3,879 571 Total other income (expense), net 2,204 (1,239) Income (loss) before income taxes $ 6,083 $ (668) October 31, July 31, (In thousands) Total assets: Supply Chain $ 105,849 $ 101,637 Corporate 32,085 36,112 Total assets $ 137,934 $ 137,749 Summarized financial information of the Company's capital expenditures and depreciation expense for the Supply Chain reportable segment is as follows: Three Months Ended 2022 2021 (In thousands) Capital expenditures $ 548 $ 363 Depreciation expense 459 630 Summarized financial information of the Company's net revenue by geographic location is as follows: Three Months Ended 2022 2021 (In thousands) China $ 17,965 $ 15,966 United States 12,172 10,446 Czech 5,760 2,767 Netherlands 5,351 5,649 Singapore 5,132 5,164 Other 4,979 4,362 $ 51,359 $ 44,354

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Oct. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSAs of October 31, 2022, SPHG Holdings and its affiliates, including Steel Holdings, Handy & Harman Ltd. and Steel Partners Ltd., beneficially owned approximately 49.9% of our outstanding capital stock, including the if-converted value of the SPHG Note and shares of Series C Convertible Preferred Stock that vote on an as-converted basis together with our common stock. Warren G. Lichtenstein, our Interim Chief Executive Officer and the Executive Chairman of our Board, is also the Executive Chairman of Steel Holdings GP. Glen Kassan, our Vice Chairman of the Board of Directors and former Chief Administrative Officer, is an employee of Steel Services. Jack L. Howard, the President and a director of Steel Holdings GP, is also a director. SPHG Note Transaction On February 28, 2019, the Company entered into a SPHG Note Purchase Agreement with SPHG Holdings, whereby SPHG Holdings agreed to loan the Company $14.9 million in exchange for the SPHG Note. As of both October 31, 2022 and July 31, 2022, SPHG Holdings held $14.9 million principal amount of the SPHG Note. As of October 31, 2022 and July 31, 2022, the net carrying value of the SPHG Note was $11.6 million and $11.0 million, respectively. During the three months ended October 31, 2022 and 2021, the Company recognized interest expense of $0.8 million and $0.7 million, respectively, associated with the SPHG Note. Preferred Stock Transaction On December 15, 2017, the Company entered into a Preferred Stock Purchase Agreement with SPHG Holdings, pursuant to which the Company issued 35,000 shares of the Company's newly created Series C Convertible Preferred Stock to SPHG Holdings at a price of $1,000 per share, for an aggregate purchase consideration of $35.0 million. The terms, rights, obligations and preferences of the Series C Convertible Preferred Stock are set forth in the Series C Certificate of Designations, which has been filed with the Secretary of State of the State of Delaware. During each of the three months ended October 31, 2022 and 2021, the Company paid dividends of $0.5 million associated with the Series C Convertible Preferred Stock. On or after December 15, 2022, each holder of Preferred Stock can also require the Company to redeem its Preferred Stock in cash at a price equal to the Liquidation Preference (as defined in Series C Certificate of Designations). STCN Management Services Agreement On June 14, 2019, the Company entered into an agreement (the "STCN Management Services Agreement") with Steel Services Ltd. ("Steel Services"), an indirect wholly-owned subsidiary of Steel Holdings. The Management Services Agreement was effective as of June 1, 2019. Pursuant to the STCN Management Services Agreement, Steel Services provides the Company and its subsidiaries with the non-exclusive services of certain employees, including certain executive officers and other corporate services. In connection with the IWCO Direct Disposal, the monthly fee under the STCN Management Services Agreement was reduced effective on the Disposal Date primarily for the portion of the fee attributable to IWCO Direct. Total expenses incurred related to the STCN Management Services Agreement for the three months ended October 31, 2022 and 2021 were $0.6 million and $0.8 million, respectively. As of October 31, 2022 and July 31, 2022, amounts due to Steel Services was $0.8 million and $1.0 million, respectively. Termination of Proposed Merger with Steel Holdings On November 15, 2022, Steel Holdings terminated the Merger Agreement with Steel Holdings. See Note 1 - "Nature of Operations" for further discussion.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Oct. 31, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement , provides that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. ASC 820 requires the Company to use valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs Level 3: Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the assets or liabilities The carrying value of cash and cash equivalents, accounts receivable, restricted cash, accounts payable, current liabilities and the revolving line of credit under the Umpqua Revolver approximate fair value because of the short maturity of these instruments. We believe that the carrying value of our long-term debt approximates fair value because the stated interest rates of this debt is consistent with current market rates. The carrying value of capital lease obligations approximates fair value, as estimated by using discounted future cash flows based on the Company's current incremental borrowing rates for similar types of borrowing arrangements. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The following tables present the Company's financial assets measured at fair value on a recurring basis as of October 31, 2022 and July 31, 2022, classified by fair value hierarchy: Fair Value Measurements at Reporting Date Using (In thousands) October 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds $ 28,300 $ 28,300 $ — $ — Fair Value Measurements at Reporting Date Using (In thousands) July 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds $ 31,756 $ 31,756 $ — $ — There were no transfers between Levels 1, 2 or 3 during any of the periods presented. When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. When quoted prices in active markets are not available, fair values are determined using pricing models, and the inputs to those pricing models are based on observable market inputs. The inputs to the pricing models are typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis The Company reviews the carrying amounts of these assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss is recognized when the carrying amount of the asset group or reporting unit is not recoverable and exceeds its fair value. The Company estimates the fair values of assets subject to impairment based on the Company's own judgments about the assumptions that market participants would use in pricing the assets and on observable market data, when available. Fair Value of Financial Instruments The Company's financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, customer deposits, accounts payable, restricted cash and debt, and are reflected in the consolidated financial statements at carrying value. With the exception of the SPHG Note and long-term debt, carrying value approximates fair value for these items due to their short-term nature. The Company believes that the carrying value of the liability component of the SPHG Note and our long-term debt approximates fair value because the stated interest rates of this debt is consistent with current market rates. Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets are money market funds. These are valued at quoted market prices in active markets.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Oct. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT The Company evaluated all events and transactions that occurred after October 31, 2022 up through the date the Company issued these consolidated financial statements. The Company owns 9.8% of a privately-held software company (the "Investee"), which was acquired in the early 2000s and whose book value was written down to zero in prior years. The Company was not required to account for this Investee as an equity method investment. On November 11, 2022, the Investee entered into an asset purchase agreement to sell substantially all of its assets for $40.8 million (the "Purchase Price"). The sale is subject to a shareholder vote scheduled to be held on December 15, 2022. If approved, the sale is expected to be completed early in the first quarter of calendar 2023 after which the Company expects to receive an aggregate of approximately $4.0 million of cash proceeds. The first receipt of approximately $3.2 million is expected to occur before the end of the third quarter of the fiscal year ending July 31, 2023, with approximately $0.4 million expected to be received during each of the fiscal years ending July 31, 2024 and 2025. When received, the Company will recognize the cash proceeds as other income on the condensed consolidated statement of operations.

RECENT ACCOUNTING PRONOUNCEME_2

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	3 Months Ended
	Oct. 31, 2022
Accounting Policies [Abstract]
Basis of Accounting	The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of a normal recurring nature) considered necessary for fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes for the year ended July 31, 2022 (Fiscal Year 2022), which are contained in the Company's Fiscal Year 2022 Form 10-K filed. The results for the three months ended October 31, 2022 are not necessarily indicative of the results to be expected for the full fiscal year. The year-end condensed consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP.
Consolidation	All significant intercompany transactions and balances have been eliminated in consolidation.
Adoption of New Accounting Standards and Accounting Standards Issued and Not Yet Implemented	Accounting Standards Issued and Not Yet Implemented In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Loses on Financial Instruments , an ASU that requires measurement and recognition of expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The ASU will be effective for the Company beginning in the first quarter of the fiscal year ending July 31, 2024 on a modified retrospective basis, which requires a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40) . The amendment in this update simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share. The update also requires entities to provide expanded disclosures about the terms and features of convertible instruments, how the instruments have been reported in the entity's financial statements and information about events, conditions and circumstances that can affect the assessment of the amount or timing of an entity's future cash flows related to those instruments. The guidance is effective for interim and annual periods beginning in our fiscal year ending July 31, 2025, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The ASU requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This guidance is effective for all entities for annual periods beginning after December 15, 2021 and early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
Fair Value of Financial Instruments	ASC 820, Fair Value Measurement , provides that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. ASC 820 requires the Company to use valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs Level 3: Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the assets or liabilities

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Oct. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Disposal Groups, Including Discontinued Operations	A summary of the results of the discontinued operations is as follows: Three months ended October 31, 2021 Net revenue $ 81,059 Cost of revenue 75,185 Gross profit 5,874 Operating expenses: Selling, general and administrative 13,170 Amortization of intangible assets 4,182 Total operating expenses 17,352 Operating loss (11,478) Other expense: Interest expense (7,033) Total other expense, net (7,033) Loss from discontinued operations before income taxes (18,511) Income tax expense — Loss from discontinued operations, net of tax $ (18,511)

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	3 Months Ended
	Oct. 31, 2022
Inventory Disclosure [Abstract]
Schedule of inventories, net	The table below presents the components of Inventories, net: October 31, July 31, (In thousands) Raw materials $ 8,274 $ 7,330 Work-in-process 134 124 Finished goods 583 697 $ 8,991 $ 8,151

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Oct. 31, 2022
Payables and Accruals [Abstract]
Components of accrued expenses	The following tables reflect the components of "Accrued expenses" and "Other current liabilities": October 31, July 31, Accrued Expenses (In thousands) Accrued compensation $ 5,781 $ 5,099 Accrued audit, tax and legal 3,841 4,564 Accrued taxes 3,385 3,344 Accrued occupancy costs 1,570 1,671 Accrued IT costs 1,160 1,108 Accrued contract labor 1,009 792 Accrued freight 1,023 782 Accrued other 9,516 11,036 Total accrued expenses $ 27,285 $ 28,396 As of both October 31, 2022 and July 31, 2022, accrued other was primarily comprised of accrued price concessions for customer programs that have unit price or management fee true-ups based on their contract agreements.
Components of other current liabilities	October 31, July 31, Other Current Liabilities (In thousands) Accrued pricing liabilities $ 9,435 $ 9,435 Deferred revenue - current 2,357 2,705 Other 1,851 1,342 Total other current liabilities $ 13,643 $ 13,482

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	3 Months Ended
	Oct. 31, 2022
Restructuring and Related Activities [Abstract]
Schedule of restructuring and related costs	Changes to the restructuring liability during the three months ended October 31, 2022 were as follows: (in thousands) Balance as of July 31, 2022 $ 892 Costs incurred — Cash payments (551) Non-cash relief of accrual — Change in estimates (25) Balance as of October 31, 2022 $ 316

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Oct. 31, 2022
Leases [Abstract]
Lease cost	The table below presents the components of the Company's lease expense: Three Months Ended 2022 2021 (In thousands) Operating lease cost $ 2,405 $ 2,510 Short-term lease expense 438 287 Variable lease cost 4 11 Interest on finance lease liabilities — 1 $ 2,847 $ 2,809 Supplemental cash flow information related to the Company's leases was as follows: Three Months Ended 2022 2021 (In thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 2,207 $ 2,498 Operating cash flows from finance leases $ — $ 1 Financing cash flows from finance leases $ 19 $ 18

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Oct. 31, 2022
Debt Disclosure [Abstract]
Components of debt and reconciliation	The components of debt and a reconciliation to the carrying amount of long-term debt is presented in the table below: October 31, July 31, (In thousands) Unsecured 7.50% Convertible Senior Note due March 1, 2024 $ 14,940 $ 14,940 Credit Facilities Umpqua Revolver — — Less: unamortized discounts and issuance costs (a) (3,450) (3,972) Total debt, net $ 11,490 $ 10,968 (a) Amounts include deferred debt issuance costs related to credit facilities of $67 thousand and $79 thousand as of October 31, 2022 and July 31, 2022, respectively, which are presented in Other Assets.
Net carrying value of SPG note	The following tables reflect the components of the SPHG Note: October 31, July 31, (In thousands) Carrying amount of equity component $ 8,200 $ 8,200 Principal amount of note $ 14,940 $ 14,940 Unamortized debt discount (3,383) (3,893) Net carrying amount $ 11,557 $ 11,047 Three Months Ended 2022 2021 (In thousands) Interest expense related to contractual interest coupon $ 286 $ 286 Interest expense related to accretion of the discount 510 386 Interest expense related to revolving credit facilities (see below) 30 89 $ 826 $ 761

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Oct. 31, 2022
Revenue from Contract with Customer [Abstract]
Summary of reconciliation of the disaggregated revenue	The following table presents the Company's revenues from contracts with customers disaggregated by major good or service line and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments. Three Months Ended October 31, 2022 2021 (In thousands) Major Goods/Service Lines Supply chain management services $ 50,931 $ 43,942 Other 428 412 $ 51,359 $ 44,354 Timing of Revenue Recognition Services transferred over time $ 51,359 $ 44,354 $ 51,359 $ 44,354
Summary of changes in deferred revenue	The table below presents information for the Company's contract balances: October 31, July 31, (In thousands) Accounts receivable, trade, net $ 35,680 $ 40,083 Contract assets 358 369 Deferred revenue - current $ 2,357 $ 2,705 Deferred revenue - long-term 112 134 Total deferred revenue $ 2,469 $ 2,839 Remaining Performance Obligations Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the three months ended October 31, 2022 and October 31, 2021, were as follows: Three Months Ended 2022 2021 (In thousands) Balance at beginning of period $ 2,839 $ 2,320 Deferral of revenue 271 508 Recognition of deferred amounts upon satisfaction of performance obligation (641) (309) Balance at end of period $ 2,469 $ 2,519

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	3 Months Ended
	Oct. 31, 2022
Earnings Per Share [Abstract]
Reconciliation of (loss) earnings per share	The following table reconciles net earnings (loss) per share for the three months ended October 31, 2022 and 2021: Three Months Ended 2022 2021 (In thousands, except per share data) Reconciliation of net income (loss) to net income (loss) attributable to common stockholders after assumed conversions: Net income (loss) from continuing operations $ 4,957 $ (983) Loss from discontinued operations — (18,511) Net income (loss) 4,957 (19,494) Less: Preferred dividends on redeemable preferred stock (537) (537) Net income (loss) attributable to common stockholders $ 4,420 $ (20,031) Effect of dilutive securities: Dividends on preferred stock 537 — Net income (loss) attributable to common stockholders - assuming dilution $ 4,957 $ (20,031) Net income (loss) per common share - basic Net income (loss) from continuing operations $ 0.07 $ (0.02) Net loss from discontinued operations — (0.31) Net income (loss) attributable to common stockholders $ 0.07 $ (0.33) Net income (loss) per common share - diluted Net income (loss) from continuing operations $ 0.06 $ (0.02) Net loss from discontinued operations — (0.31) Net income attributable to common stockholders $ 0.06 $ (0.33) Weighted average common shares outstanding - basic 60,050 60,307 Effect of dilutive securities: Common stock equivalents - Restricted stock and restricted stock shares 523 — Common stock equivalents - Preferred stock 17,857 — Weighted average common shares outstanding - diluted 78,430 60,307

COMPREHENSIVE INCOME (LOSS) (Ta

COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Oct. 31, 2022
Equity [Abstract]
Accumulated other comprehensive items	Accumulated other comprehensive items consist of the following: Foreign Pension Total (In thousands) Accumulated other comprehensive income (loss) as of July 31, 2022 $ 6,063 $ (1,923) $ 4,140 Foreign currency translation adjustment (2,837) — (2,837) Pension liability adjustments — (1,078) (1,078) Net current-period other comprehensive income (2,837) (1,078) (3,915) Accumulated other comprehensive income (loss) as of October 31, 2022 $ 3,226 $ (3,001) $ 225 Foreign Pension Total (In thousands) Accumulated other comprehensive income (loss) as of July 31, 2021 $ 9,762 $ (2,600) $ 7,162 Foreign currency translation adjustment 198 — 198 Net current-period other comprehensive income 198 — 198 Accumulated other comprehensive income (loss) as of October 31, 2021 $ 9,960 $ (2,600) $ 7,360

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Oct. 31, 2022
Segment Reporting [Abstract]
Summarized financial information of continuing operations	Summarized financial information of the Company's continuing operations by operating segment is as follows: Three Months Ended 2022 2021 (In thousands) Net revenue: Supply Chain $ 51,359 $ 44,354 Total segment net revenue 51,359 44,354 Operating income: Supply Chain 5,851 1,973 Total segment operating income 5,851 1,973 Corporate-level activity (1,972) (1,402) Total operating (loss) income 3,879 571 Total other income (expense), net 2,204 (1,239) Income (loss) before income taxes $ 6,083 $ (668) Summarized financial information of the Company's capital expenditures and depreciation expense for the Supply Chain reportable segment is as follows: Three Months Ended 2022 2021 (In thousands) Capital expenditures $ 548 $ 363 Depreciation expense 459 630
Total assets of continuing operations	October 31, July 31, (In thousands) Total assets: Supply Chain $ 105,849 $ 101,637 Corporate 32,085 36,112 Total assets $ 137,934 $ 137,749
Summarized financial information of net revenue from external customers by group of services	Summarized financial information of the Company's net revenue by geographic location is as follows: Three Months Ended 2022 2021 (In thousands) China $ 17,965 $ 15,966 United States 12,172 10,446 Czech 5,760 2,767 Netherlands 5,351 5,649 Singapore 5,132 5,164 Other 4,979 4,362 $ 51,359 $ 44,354

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Oct. 31, 2022
Fair Value Disclosures [Abstract]
Financial assets measured at fair value on recurring basis and classified by fair value hierarchy	The following tables present the Company's financial assets measured at fair value on a recurring basis as of October 31, 2022 and July 31, 2022, classified by fair value hierarchy: Fair Value Measurements at Reporting Date Using (In thousands) October 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds $ 28,300 $ 28,300 $ — $ — Fair Value Measurements at Reporting Date Using (In thousands) July 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds $ 31,756 $ 31,756 $ — $ —

NATURE OF OPERATIONS - Nature o

NATURE OF OPERATIONS - Nature of Operations (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 12, 2022	Nov. 15, 2022	Oct. 31, 2022	Jul. 31, 2022	Mar. 16, 2022
Nature Of Operations [Line Items]
Cash and cash equivalents			$ 59.9	$ 53.1
Working capital deficit			$ (30.2)
Right to receive share, price per share (in usd per share)	$ 1.35
Business acquisition, transaction costs	$ 80
Common stock, par value (in usd per share)			$ 0.01	$ 0.01
Series C Preferred Stock | Subsequent Event
Nature Of Operations [Line Items]
Common stock, par value (in usd per share)		$ 0.01
Moduslink
Nature Of Operations [Line Items]
Business acquisition, period results included in combined entity	2 years
Umpqua Revolver
Nature Of Operations [Line Items]
Line of credit facility, maximum credit commitment			$ 12.5		$ 12.5
Line of credit facility, sublimit borrowing capacity			$ 5		$ 5

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($)	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Accounting Policies [Abstract]
Bad debt expense (recovery)	$ 960,000	$ (5,000)

DISCONTINUED OPERATIONS - Narra

DISCONTINUED OPERATIONS - Narrative (Details)	Feb. 25, 2022 USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Proceeds from divestiture of businesses	$ 0
Disposal groups, including discontinued operations, notes receivable from divestiture of business	6,900,000
Disposal group, including discontinued operation, accounts, notes and loans receivable, net	$ 0

DISCONTINUED OPERATIONS - Sched

DISCONTINUED OPERATIONS - Schedule of Disposal Groups, Including Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations, net of tax	$ 0	$ (18,511)
Discontinued Operations, Disposed of by Sale | IWCO Direct Holdings, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue		81,059
Cost of revenue		75,185
Gross profit		5,874
Selling, general and administrative		13,170
Amortization of intangible assets		4,182
Total operating expenses		17,352
Operating loss		(11,478)
Interest expense		(7,033)
Total other expense, net		(7,033)
Loss from discontinued operations before income taxes		(18,511)
Income tax expense		0
Loss from discontinued operations, net of tax		$ (18,511)

INVENTORIES, NET - Components o

INVENTORIES, NET - Components of Inventories (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 8,274	$ 7,330
Work-in-process	134	124
Finished goods	583	697
Inventories, net	$ 8,991	$ 8,151

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Payables and Accruals [Abstract]
Accrued compensation	$ 5,781	$ 5,099
Accrued audit, tax and legal	3,841	4,564
Accrued taxes	3,385	3,344
Accrued occupancy costs	1,570	1,671
Accrued IT costs	1,160	1,108
Accrued contract labor	1,009	792
Accrued freight	1,023	782
Accrued other	9,516	11,036
Total accrued expenses	$ 27,285	$ 28,396

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Payables and Accruals [Abstract]
Accrued pricing liabilities	$ 9,435	$ 9,435
Deferred revenue - current	2,357	2,705
Other	1,851	1,342
Total other current liabilities	$ 13,643	$ 13,482

ACCRUED EXPENSES AND OTHER CU_4

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Narrative (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Payables and Accruals [Abstract]
Accrued pricing liabilities	$ 9,435	$ 9,435

RESTRUCTURING - Narrative (Deta

RESTRUCTURING - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2022	Jul. 31, 2022	Jan. 31, 2022	Oct. 31, 2021
IWCO Direct's Competitive Improvement Plan | Supply Chain
Restructuring Cost and Reserve [Line Items]
Costs incurred	$ 0	$ 0.6	$ 0.9	$ 0

RESTRUCTURING - Restructuring L

RESTRUCTURING - Restructuring Liability Rollforward (Details) - IWCO Direct's Competitive Improvement Plan - IWCO Direct Holdings, Inc. $ in Thousands	3 Months Ended
	Oct. 31, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 892
Costs incurred	0
Cash payments	(551)
Non-cash relief of accrual	0
Change in estimates	25
Ending balance	$ 316

LEASES - Lease Costs (Details)

LEASES - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Lease, Cost [Abstract]
Operating lease cost	$ 2,405	$ 2,510
Short-term lease expense	438	287
Variable lease cost	4	11
Interest on finance lease liabilities	0	1
Total lease cost	$ 2,847	$ 2,809

LEASES - Supplemental Cash Flow

LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,207	$ 2,498
Operating cash flows from finance leases	0	1
Financing cash flows from finance leases	$ 19	$ 18

DEBT - Component of Debt and Re

DEBT - Component of Debt and Reconciliation (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022	Feb. 28, 2019
Line of Credit Facility [Line Items]
Less: unamortized discounts and issuance costs(a)	$ (3,450)	$ (3,972)
Total debt, net	11,490	10,968
Debt issuance costs, net	67	79
Convertible Notes Payable
Line of Credit Facility [Line Items]
Principal amount of long term debt	14,940	14,940
Convertible Notes Payable | SPHG Holdings
Line of Credit Facility [Line Items]
Total debt, net	11,557	11,047
Debt instrument, stated interest rate			7.50%
Umpqua Revolver
Line of Credit Facility [Line Items]
Revolving credit facility	$ 0	$ 0

DEBT - Additional Information (

DEBT - Additional Information (Details)		3 Months Ended
	Feb. 28, 2019 USD ($) $ / shares	Oct. 31, 2022 USD ($)	Jul. 31, 2022 USD ($)	Mar. 16, 2022 USD ($)
Debt Instrument [Line Items]
Long-term debt		$ 11,490,000	$ 10,968,000
Debt instrument, interest rate, effective percentage		27.80%
Umpqua Revolver
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment		$ 12,500,000		$ 12,500,000
Line of credit facility, sublimit borrowing capacity		5,000,000		5,000,000
Revolving credit facility		600,000
MidCap Credit Facility
Debt Instrument [Line Items]
Line of credit facility, termination amount				$ 12,500,000
Credit facility, readily available borrowing capacity		11,900,000
SPHG Holdings
Debt Instrument [Line Items]
Conversion to common stock	$ 1,000
Initial conversion price (in usd per share) | $ / shares	$ 2.37
Conversion ratio (shares)	0.4212655
Convertible Notes Payable | SPHG Holdings
Debt Instrument [Line Items]
Debt instrument, stated interest rate	7.50%
Principal amount of note	$ 14,900,000	$ 14,940,000	14,940,000
Debt instrument amortization period		16 months
Long-term debt		$ 11,557,000	$ 11,047,000

DEBT - Net Carrying Value of th

DEBT - Net Carrying Value of the Notes (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022	Feb. 28, 2019
Debt Instrument [Line Items]
Carrying amount of equity component	$ 8,200	$ 8,200
Total debt, net	11,490	10,968
SPHG Holdings | Convertible Notes Payable
Debt Instrument [Line Items]
Principal amount of note	14,940	14,940	$ 14,900
Unamortized debt discount	(3,383)	(3,893)
Total debt, net	$ 11,557	$ 11,047

DEBT - Summary of Interest Expe

DEBT - Summary of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 826	$ 761
Umpqua Revolver
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	30	89
SPHG Holdings | Interest expense related to contractual interest coupon
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	286	286
SPHG Holdings | Interest expense related to accretion of the discount
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 510	$ 386

CONTINGENCIES - Additional Info

CONTINGENCIES - Additional Information (Details) - USD ($)	Aug. 18, 2022	Feb. 18, 2022	Aug. 13, 2021	Dec. 15, 2017
Reith v. Lichtenstein
Contingencies [Line Items]
Cash paid to plaintiff			$ 2,750,000
Legal fees	$ 1,600,000	$ 2,050,000
Litigation settlement, amount awarded from other party	3,000,000
Litigation settlement, expense	125,000
Litigation settlement, distribution amount	$ 1
Reith v. Lichtenstein | Director | Restricted Stock
Contingencies [Line Items]
Number of shares surrendered			3,300,000
Reith v. Lichtenstein | Director | Restricted Stock | Warren Lichtenstein
Contingencies [Line Items]
Number of vested shares surrendered			1,833,333
Number of nonvested shares surrendered			300,000
Reith v. Lichtenstein | Director | Restricted Stock | Jack Howard
Contingencies [Line Items]
Number of vested shares surrendered			916,667
Number of nonvested shares surrendered			150,000
Reith v. Lichtenstein | Director | Restricted Stock | William Fejes
Contingencies [Line Items]
Number of vested shares surrendered			100,000
Purchase agreement | SPHG Holdings | Series C convertible preferred stock
Contingencies [Line Items]
Proceeds from issuance of preferred stock				$ 35,000,000

REVENUE RECOGNITION - Disaggreg

REVENUE RECOGNITION - Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Disaggregation of Revenue [Line Items]
Net revenue	$ 51,359	$ 44,354
Supply chain management services
Disaggregation of Revenue [Line Items]
Net revenue	50,931	43,942
Other
Disaggregation of Revenue [Line Items]
Net revenue	428	412
Services transferred over time | Transferred over time
Disaggregation of Revenue [Line Items]
Net revenue	$ 51,359	$ 44,354

REVENUE RECOGNITION - Additiona

REVENUE RECOGNITION - Additional Information (Detail) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022	Oct. 31, 2021	Jul. 31, 2021
Revenue from Contract with Customer [Abstract]
Accounts receivable, trade, net	$ 35,680	$ 40,083
Contract assets	358	369
Deferred revenue - current	2,357	2,705
Deferred revenue - long-term	112	134
Total deferred revenue	$ 2,469	$ 2,839	$ 2,519	$ 2,320

REVENUE RECOGNITION - Summary o

REVENUE RECOGNITION - Summary of Changes in Deferred Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Change in Deferred Revenue
Balance at beginning of period	$ 2,839	$ 2,320
Deferral of revenue	271	508
Recognition of deferred amounts upon satisfaction of performance obligation	(641)	(309)
Balance at end of period	$ 2,469	$ 2,519

REVENUE RECOGNITION - Performan

REVENUE RECOGNITION - Performance Obligations (Details) $ in Millions	Oct. 31, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 2.4
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 0.1
Revenue, remaining performance obligation, expected timing of satisfaction, period

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Income Tax Disclosure [Abstract]
Unrecognized tax benefits related to federal, state and foreign taxes	$ 800	$ 800
Deferred employer-paid portion of social security taxes	300
Liabilities for interest expense related to uncertain tax positions	10	$ 100
Expected unrecognized tax benefits to reverse in the next twelve months	$ 200

EARNINGS (LOSS) PER SHARE - Rec

EARNINGS (LOSS) PER SHARE - Reconciliation of (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Earnings Per Share [Abstract]
Net income (loss) from continuing operations	$ 4,957	$ (983)
Net loss from discontinued operations	0	(18,511)
Net income (loss)	4,957	(19,494)
Less: Preferred dividends on redeemable preferred stock	(537)	(537)
Net income (loss) attributable to common stockholders	4,420	(20,031)
Dividends on preferred stock	537	0
Net income (loss) attributable to common stockholders - assuming dilution	$ 4,957	$ (20,031)
Continuing operations, basic (in usd per share)	$ 0.07	$ (0.02)
Discontinued operations, basic (in usd per share)	0	(0.31)
Basic net income (loss) per share attributable to common stockholders (in usd per share)	0.07	(0.33)
Continuing operations, diluted (in usd per share)	0.06	(0.02)
Discontinued operations, diluted (in usd per share)	0	(0.31)
Diluted net income (loss) per share attributable to common stockholders (in usd per share)	$ 0.06	$ (0.33)
Weighted average common shares outstanding, basic (in shares)	60,050	60,307
Common stock equivalents - Restricted stock and restricted stock shares (in shares)	523	0
Common stock equivalents - Preferred stock (in shares)	17,857	0
Weighted average common shares outstanding, diluted (in shares)	78,430	60,307

EARNINGS (LOSS) PER SHARE - Add

EARNINGS (LOSS) PER SHARE - Additional Information (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	6.3	24.2
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Interest expense excluded from computation of earnings, amount	$ 0.8	$ 0.7
Preferred Dividends
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Interest expense excluded from computation of earnings, amount	$ 0.5

COMPREHENSIVE INCOME (LOSS) - A

COMPREHENSIVE INCOME (LOSS) - Accumulated Other Comprehensive Income Items (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ (9,206)	$ 6,212
Foreign currency translation adjustment	(2,837)	198
Pension liability adjustments	(1,078)	0
Other comprehensive income	(3,915)	198
Ending balance	(8,524)	(13,431)
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	4,140	7,162
Ending balance	225	7,360
Foreign Currency Items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	6,063	9,762
Foreign currency translation adjustment	(2,837)	198
Pension liability adjustments	0
Other comprehensive income	(2,837)	198
Ending balance	3,226	9,960
Pension Items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(1,923)	(2,600)
Foreign currency translation adjustment	0	0
Pension liability adjustments	(1,078)
Other comprehensive income	(1,078)	0
Ending balance	$ (3,001)	$ (2,600)

COMPREHENSIVE INCOME (LOSS) - N

COMPREHENSIVE INCOME (LOSS) - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Oct. 31, 2022	Jul. 31, 2020
Equity [Abstract]
Other comprehensive income (loss), defined benefit plan, settlement and curtailment gain (loss), before tax		$ 2.4
Increase of accrued pension liability	$ 1.1

SEGMENT INFORMATION - Additiona

SEGMENT INFORMATION - Additional Information (Details)	3 Months Ended
	Oct. 31, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	1

SEGMENT INFORMATION - Summarize

SEGMENT INFORMATION - Summarized Financial Information of Continuing Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Segment Reporting Information [Line Items]
Revenue from contracts with customers	$ 51,359	$ 44,354
Operating income	3,879	571
Total other income (expense), net	2,204	(1,239)
Income (loss) from continuing operations before income taxes	6,083	(668)
Operating segments
Segment Reporting Information [Line Items]
Operating income	5,851	1,973
Operating segments | Supply Chain
Segment Reporting Information [Line Items]
Revenue from contracts with customers	51,359	44,354
Operating income	5,851	1,973
Corporate
Segment Reporting Information [Line Items]
Operating income	$ (1,972)	$ (1,402)

SEGMENT INFORMATION - Total Ass

SEGMENT INFORMATION - Total Assets of Continuing Operations (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Segment Reporting Information [Line Items]
Total assets	$ 137,934	$ 137,749
Operating segments | Supply Chain
Segment Reporting Information [Line Items]
Total assets	105,849	101,637
Corporate
Segment Reporting Information [Line Items]
Total assets	$ 32,085	$ 36,112

SEGMENT INFORMATION - Summari_2

SEGMENT INFORMATION - Summarized Financial Information of Capital Expenditures, Depreciation, and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Segment Reporting Information [Line Items]
Capital expenditures	$ 548	$ 363
Depreciation	459	630
Operating segments | Supply Chain
Segment Reporting Information [Line Items]
Capital expenditures	548	363
Depreciation	$ 459	$ 630

SEGMENT INFORMATION - Summari_3

SEGMENT INFORMATION - Summarized Financial Information of Net Revenue from External Customers by Group of Services (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 51,359	$ 44,354
China
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	17,965	15,966
United States
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	12,172	10,446
Czech
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	5,760	2,767
Netherlands
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	5,351	5,649
Singapore
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	5,132	5,164
Other
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 4,979	$ 4,362

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Dec. 15, 2017	Oct. 31, 2022	Oct. 31, 2021	Jul. 31, 2022	Feb. 28, 2019
Related Party Transaction [Line Items]
Long-term debt		$ 11,490		$ 10,968
Interest expense		$ 826	$ 761
Preferred stock, shares issued (in shares)		0		0
Preferred dividends		$ 537	537
SPHG Holdings | Convertible Notes Payable
Related Party Transaction [Line Items]
Principal amount convertible senior notes held of		14,940		$ 14,940	$ 14,900
Long-term debt		11,557		11,047
Interest expense		800	700
Steel Holdings | Convertible debt
Related Party Transaction [Line Items]
Principal amount convertible senior notes held of		14,900		14,900	$ 14,900
Purchase agreement | SPHG Holdings | Series C convertible preferred stock
Related Party Transaction [Line Items]
Preferred dividends		500	500
SPHG Holdings | Purchase agreement | Series C convertible preferred stock
Related Party Transaction [Line Items]
Preferred stock, shares issued (in shares)	35,000
Price per share (in usd per share)	$ 1,000
Proceeds from issuance of preferred stock	$ 35,000
Steel Services Ltd. | Management Services Agreement
Related Party Transaction [Line Items]
Total expenses incurred related to Management Services Agreement and Transfer Agreement		600	$ 800
SP Corporate Services Llc and Steel Services Limited | Management Services Agreement
Related Party Transaction [Line Items]
Amount due to related parties		$ 800		$ 1,000
Steel Connect, Inc. | SPHG Holdings | Steel Connect, Inc.
Related Party Transaction [Line Items]
Ownership percentage in capital stock		49.90%

FAIR VALUE MEASUREMENTS - Finan

FAIR VALUE MEASUREMENTS - Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy (Details) - Fair value, measurements, recurring - Money market funds - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 28,300	$ 31,756
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	28,300	31,756
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 0	$ 0

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent Event - Investee - USD ($) $ in Millions		3 Months Ended		12 Months Ended
	Nov. 11, 2022	Jul. 31, 2023	Jan. 31, 2023	Jul. 31, 2025	Jul. 31, 2024
Subsequent Event [Line Items]
Asset purchases agreement, purchase price	$ 40.8
Asset purchase agreement, aggregate cash proceed expected to received			$ 4
Asset purchase agreement, cash proceed expected to received		$ 3.2		$ 0.4	$ 0.4
Steel Connect, Inc.
Subsequent Event [Line Items]
Noncontrolling interest, ownership percentage by parent	9.80%