Annual report pursuant to Section 13 and 15(d)

Fair Value of Financial Instruments

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Fair Value of Financial Instruments
12 Months Ended
Jul. 31, 2015
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

Note 4Fair Value of Financial Instruments

 

Financial assets and liabilities are measured at fair value, which is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value:

 

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Level 1 — Quoted prices in active markets for identical assets or liabilities.

 

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Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

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Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

At July 31, 2015 and 2014, respectively, approximately $90,000 and $0, respectively, was recorded in other long-term assets relating to a long-term certificate of deposit, which is classified within Level 1.