Cover
Cover - shares | 9 Months Ended | |
Apr. 30, 2021 | Jun. 02, 2021 | |
Schedule of Capitalization, Equity [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Apr. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --07-31 | |
Entity File Number | 1-16371 | |
Entity Registrant Name | IDT CORP | |
Entity Central Index Key | 0001005731 | |
Entity Tax Identification Number | 22-3415036 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 520 Broad Street | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07102 | |
City Area Code | (973) | |
Local Phone Number | 438-1000 | |
Trading Symbol | IDT | |
Security Exchange Name | NYSE | |
Title of 12(g) Security | Class B common stock, par value $.01 per share | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Class A [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,574,326 | |
Common Class B [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,186,856 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 84,017 | $ 84,860 |
Restricted cash and cash equivalents | 110,992 | 116,362 |
Debt securities | 16,852 | 18,363 |
Equity investments | 37,586 | 5,964 |
Trade accounts receivable, net of allowance for doubtful accounts of $6,230 at April 30, 2021 and $6,085 at July 31, 2020 | 42,683 | 44,166 |
Prepaid expenses | 45,960 | 33,115 |
Other current assets | 15,959 | 19,302 |
Total current assets | 354,049 | 322,132 |
Property, plant and equipment, net | 31,110 | 30,061 |
Goodwill | 14,943 | 12,858 |
Other intangibles, net | 6,235 | 3,959 |
Equity investments | 14,922 | 8,833 |
Operating lease right-of-use assets | 8,363 | 9,490 |
Deferred income tax assets, net | 22,530 | 8,512 |
Other assets | 9,747 | 8,905 |
Total assets | 461,899 | 404,750 |
Current liabilities: | ||
Trade accounts payable | 31,386 | 31,147 |
Accrued expenses | 126,119 | 125,544 |
Deferred revenue | 42,771 | 40,114 |
Customer deposits | 110,715 | 115,992 |
Other current liabilities | 16,345 | 12,073 |
Total current liabilities | 327,336 | 324,870 |
Operating lease liabilities | 6,108 | 7,353 |
Other liabilities | 1,295 | 1,388 |
Total liabilities | 334,739 | 333,611 |
Commitments and contingencies | ||
IDT Corporation stockholders’ equity: | ||
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued | ||
Additional paid-in capital | 277,125 | 277,443 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 2,192 and 1,616 shares of Class B common stock at April 30, 2021 and July 31, 2020, respectively | (60,413) | (56,221) |
Accumulated other comprehensive loss | (8,390) | (7,410) |
Accumulated deficit | (81,589) | (139,333) |
Total IDT Corporation stockholders’ equity | 127,029 | 74,772 |
Noncontrolling interests | 131 | (3,633) |
Total equity | 127,160 | 71,139 |
Total liabilities and equity | 461,899 | 404,750 |
Common Class A [Member] | ||
IDT Corporation stockholders’ equity: | ||
Common stock, value | 33 | 33 |
Common Class B [Member] | ||
IDT Corporation stockholders’ equity: | ||
Common stock, value | $ 263 | $ 260 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
Allowance for doubtful accounts | $ 6,230 | $ 6,085 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 3,272,000 | 3,272,000 |
Common stock, shares outstanding | 1,574,000 | 1,574,000 |
Treasury stock, shares | 1,698,000 | 1,698,000 |
Common Class B [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 26,343,000 | 25,961,000 |
Common stock, shares outstanding | 24,151,000 | 24,345,000 |
Treasury stock, shares | 2,192,000 | 1,616,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 373,831 | $ 321,336 | $ 1,057,022 | $ 985,425 |
Costs and expenses: | ||||
Direct cost of revenues (exclusive of depreciation and amortization) | 300,797 | 258,839 | 843,116 | 801,016 |
Selling, general and administrative (i) | 55,148 | 52,630 | 161,591 | 159,853 |
Depreciation and amortization | 4,425 | 5,239 | 13,381 | 15,718 |
Severance | 184 | 602 | 439 | 1,714 |
Total costs and expenses | 360,554 | 317,310 | 1,018,527 | 978,301 |
Other operating gain (expense), net (see Note 10) | 595 | (234) | 1,550 | (3,402) |
Income from operations | 13,872 | 3,792 | 40,045 | 3,722 |
Interest income, net | 125 | 56 | 223 | 525 |
Other income (expense), net | 3,815 | (2,144) | 5,608 | (1,360) |
Income before income taxes | 17,812 | 1,704 | 45,876 | 2,887 |
Benefit from (provision for) income taxes | 18,586 | (1,319) | 12,142 | (3,020) |
Net income (loss) | 36,398 | 385 | 58,018 | (133) |
Net (income) loss attributable to noncontrolling interests | (50) | 133 | (274) | 70 |
Net income (loss) attributable to IDT Corporation | $ 36,348 | $ 518 | $ 57,744 | $ (63) |
Earnings (loss) per share attributable to IDT Corporation common stockholders: | ||||
Basic | $ 1.42 | $ 0.02 | $ 2.27 | $ 0 |
Diluted | $ 1.39 | $ 0.02 | $ 2.23 | $ 0 |
Weighted-average number of shares used in calculation of earnings (loss) per share: | ||||
Basic | 25,530,000 | 26,371,000 | 25,475,000 | 26,323,000 |
Diluted | 26,136,000 | 26,506,000 | 25,903,000 | 26,323,000 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Statement [Abstract] | ||||
Stock-based compensation | $ 275 | $ 810 | $ 1,215 | $ 3,341 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Statement [Abstract] | ||||
Net income (loss) | $ 36,398 | $ 385 | $ 58,018 | $ (133) |
Other comprehensive income (loss): | ||||
Change in unrealized loss on available-for-sale securities | (180) | 84 | (163) | 84 |
Foreign currency translation adjustments | 747 | (647) | (817) | (2,364) |
Other comprehensive income (loss) | 567 | (563) | (980) | (2,280) |
Comprehensive income (loss) | 36,965 | (178) | 57,038 | (2,413) |
Comprehensive (income) loss attributable to noncontrolling interests | (50) | 133 | (274) | 70 |
Comprehensive income (loss) attributable to IDT Corporation | $ 36,915 | $ (45) | $ 56,764 | $ (2,343) |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Common Stock Class A [Member] | Common Stock Class B [Member] |
BALANCE AT JULY 31, 2019 at Jul. 31, 2019 | $ 53,557 | $ 273,313 | $ (51,739) | $ (4,858) | $ (160,763) | $ (2,687) | $ 33 | $ 258 |
Stock-based compensation | 3,341 | 3,339 | 2 | |||||
Distributions to noncontrolling interests | (680) | (680) | ||||||
Other comprehensive loss | (2,280) | (2,280) | ||||||
Exercise of stock options | 276 | 276 | ||||||
Repurchases of Class B common stock through repurchase program | (212) | (212) | ||||||
Restricted Class B common stock purchased from employees | (266) | (266) | ||||||
Net loss | (133) | (63) | (70) | |||||
BALANCE AT APRIL 30, 2020 at Apr. 30, 2020 | 53,603 | 276,928 | (52,217) | (7,138) | (160,826) | (3,437) | 33 | 260 |
BALANCE AT JULY 31, 2019 at Jan. 31, 2020 | 53,393 | 276,118 | (52,005) | (6,575) | (161,344) | (3,094) | 33 | 260 |
Stock-based compensation | 810 | 810 | ||||||
Distributions to noncontrolling interests | (210) | (210) | ||||||
Other comprehensive loss | (563) | (563) | ||||||
Repurchases of Class B common stock through repurchase program | (212) | (212) | ||||||
Net loss | 385 | 518 | (133) | |||||
BALANCE AT APRIL 30, 2020 at Apr. 30, 2020 | 53,603 | 276,928 | (52,217) | (7,138) | (160,826) | (3,437) | 33 | 260 |
BALANCE AT JULY 31, 2019 at Jul. 31, 2020 | 71,139 | 277,443 | (56,221) | (7,410) | (139,333) | (3,633) | 33 | 260 |
Business acquisition | 1,920 | (21) | 1,941 | |||||
Stock-based compensation | 1,215 | 1,212 | 3 | |||||
Distributions to noncontrolling interests | (646) | (646) | ||||||
Other comprehensive loss | (980) | 980 | ||||||
Exercise of stock options | 686 | 686 | ||||||
Repurchases of Class B common stock through repurchase program | (2,849) | (2,849) | ||||||
Restricted Class B common stock purchased from employees | (1,343) | (1,343) | ||||||
Grant of restricted equity in subsidiary (see Note 11). | (2,195) | 2,195 | ||||||
Net loss | 58,018 | 57,744 | 274 | |||||
BALANCE AT APRIL 30, 2020 at Apr. 30, 2021 | 127,160 | 277,125 | (60,413) | (8,390) | (81,589) | 131 | 33 | 263 |
BALANCE AT JULY 31, 2019 at Jan. 31, 2021 | 90,416 | 276,871 | (60,413) | (8,957) | (117,937) | 556 | 33 | 263 |
Business acquisition | (268) | (21) | (247) | |||||
Stock-based compensation | 275 | 275 | ||||||
Distributions to noncontrolling interests | (228) | 228 | ||||||
Other comprehensive loss | 567 | 567 | ||||||
Repurchases of Class B common stock through repurchase program | ||||||||
Net loss | 36,398 | 36,348 | 50 | |||||
BALANCE AT APRIL 30, 2020 at Apr. 30, 2021 | $ 127,160 | $ 277,125 | $ (60,413) | $ (8,390) | $ (81,589) | $ 131 | $ 33 | $ 263 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Operating activities | ||
Net income (loss) | $ 58,018 | $ (133) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 13,381 | 15,718 |
Deferred income taxes | (13,811) | 2,912 |
Provision for doubtful accounts receivable | 1,220 | 2,282 |
Stock-based compensation | 1,215 | 3,341 |
(Gain) loss on investments | (4,923) | 814 |
Change in assets and liabilities: | ||
Trade accounts receivable | 1,626 | 8,374 |
Prepaid expenses, other current assets, and other assets | (7,961) | (13,080) |
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities | (2,154) | (18,894) |
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank) | (11,078) | (67,273) |
Deferred revenue | 2,611 | (4,704) |
Net cash provided by (used in) operating activities | 38,144 | (70,643) |
Investing activities | ||
Capital expenditures | (13,455) | (11,861) |
Payments for acquisitions, net of cash acquired | (2,656) | (450) |
Purchase of Rafael Holdings, Inc. Class B common stock and warrant | (5,000) | |
Exercise of warrant to purchase shares of Rafael Holdings, Inc. Class B common stock | (1,000) | |
Purchase of series B convertible preferred stock in equity method investment | (4,000) | |
Purchases of debt securities and equity investments | (39,347) | (14,790) |
Proceeds from maturities and sales of debt securities and redemptions of equity investments | 18,670 | 4,317 |
Net cash used in investing activities | (46,788) | (22,784) |
Financing activities | ||
Distributions to noncontrolling interests | (646) | (680) |
Repayment of other liabilities. | (69) | (449) |
Proceeds from note payable | 10,000 | |
Repayment of note payable | (10,000) | |
Repayments of borrowings under revolving credit facility | (1,429) | |
Proceeds from borrowings under revolving credit facility | 1,429 | |
Proceeds from exercise of stock options | 686 | 276 |
Repurchases of Class B common stock | (4,192) | (478) |
Net cash used in financing activities | (4,221) | (1,331) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | 6,652 | 4,012 |
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents | (6,213) | (90,746) |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | 201,222 | 257,199 |
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | 195,009 | 166,453 |
Supplemental schedule of non-cash investing and financing activities | ||
Liabilities incurred for acquisition | $ 393 | $ 375 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1— Basis of Presentation The accompanying unaudited consolidated financial statements of IDT Corporation and its subsidiaries (the “Company” or “IDT”) have been prepared 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 of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended April 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2021. The balance sheet at July 31, 2020 has been derived from the Company’s audited financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020, as filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s fiscal year ends on July 31 of each calendar year. Each reference below to a fiscal year refers to the fiscal year ending in the calendar year indicated (e.g., fiscal 2021 refers to the fiscal year ending July 31, 2021). |
Business Segment Information
Business Segment Information | 9 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 2— Business Segment Information As of August 1, 2020, the Company revised its reportable business segments to reflect the growth of its financial technology and cloud communications businesses and their increased contributions to the Company’s consolidated results. The Company now has three The Company’s reportable segments are distinguished by types of service, customers, and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. The accounting policies of the segments are the same as the accounting policies of the Company as a whole. There are no significant asymmetrical allocations to segments. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. The Fintech segment comprises BOSS Revolution Money Transfer, a provider of international money remittance and related value/payment transfer services, and National Retail Solutions (“NRS”), operator of a nationwide point of sale (“POS”) retail network providing payment processing, digital advertising, transaction data, and ancillary services. BOSS Revolution Money Transfer and NRS were previously included in the Company’s Telecom & Payment Services segment. The net2phone-UCaaS segment comprises net2phone’s cloud communications offerings, which were previously included in the Company’s net2phone segment. The Traditional Communications segment includes Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts, BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the United States, and Carrier Services, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide. Traditional Communications also includes net2phone-Platform Services, which provides telephony services to cable operators and other offerings that leverage a common technology platform, as well as smaller communications and payments offerings, many in harvest mode. Most of the Traditional Communications segment was previously included in the Company’s Telecom & Payment Services segment except for net2phone-Platform Services, which was previously included in the Company’s net2phone segment. Corporate costs include compensation, consulting fees, treasury, tax and accounting services, human resources, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, business development, charitable contributions, travel, and other corporate-related general and administrative expenses. Corporate does not generate any revenues, nor does it incur any direct cost of revenues. Operating results for the business segments of the Company were as follows: Schedule of Operating Results of Business Segments (in thousands) Fintech net2phone-UCaaS Traditional Communications Corporate Total Three Months Ended April 30, 2021 Revenues $ 16,644 $ 11,255 $ 345,932 $ — $ 373,831 (Loss) income from operations (1,403 ) (3,684 ) 20,074 (1,115 ) 13,872 Three Months Ended April 30, 2020 Revenues $ 14,684 $ 8,103 $ 298,549 $ — $ 321,336 Income (loss) from operations 142 (3,643 ) 9,503 (2,210 ) 3,792 Nine Months Ended April 30, 2021 Revenues $ 55,229 $ 31,621 $ 970,172 $ — $ 1,057,022 Income (loss) from operations 1,487 (10,744 ) 54,575 (5,273 ) 40,045 Nine Months Ended April 30, 2020 Revenues $ 33,982 $ 23,225 $ 928,218 $ — $ 985,425 (Loss) income from operations (5,705 ) (11,137 ) 27,771 (7,207 ) 3,722 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 3— Revenue Recognition The Company earns revenue from contracts with customers, primarily through the provision of retail telecommunications and payment offerings as well as wholesale international voice and SMS termination. BOSS Revolution Money Transfer, NRS, and net2phone-UCaaS are technology-driven, synergistic businesses that leverage the Company’s core assets, and revenue is primarily recognized at a point in time, and in some cases (mainly net2phone-UCaaS) is recognized over time. Traditional Communications are mostly minute-based, paid-voice communications services, and revenue is primarily recognized at a point in time. The Company’s most significant revenue streams are from Mobile Top-Up, BOSS Revolution Calling, and Carrier Services. Mobile Top-Up and BOSS Revolution Calling are sold direct-to-consumers and through distributors and retailers. Disaggregated Revenues The following table shows the Company’s revenues disaggregated by business segment and service offered to customers: Schedule of Revenues Disaggregated by Business Segment and Service Offered to Customers Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) BOSS Revolution Money Transfer $ 10,259 $ 11,817 $ 38,697 $ 26,679 National Retail Solutions 6,385 2,867 16,532 7,303 Total Fintech 16,644 14,684 55,229 33,982 net2phone-UCaaS 11,255 8,103 31,621 23,225 Mobile Top-Up 132,603 85,139 325,001 237,808 BOSS Revolution Calling 111,412 112,536 342,665 343,731 Carrier Services 88,643 87,435 263,571 302,613 Other 13,274 13,439 38,935 44,066 Total Traditional Communications 345,932 298,549 970,172 928,218 Total $ 373,831 $ 321,336 $ 1,057,022 $ 985,425 The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location. On July 31, 2020, the Company restructured certain operations for tax purposes resulting in the change of geographic sourcing of revenues from the Netherlands to the United States. Schedule of Revenues Disaggregated by Geographic Region (in thousands) Fintech net2phone-UCaaS Traditional Communications Total Three Months Ended April 30, 2021 United States $ 16,644 $ 5,839 $ 240,442 $ 262,925 Outside the United States: United Kingdom — — 92,800 92,800 Netherlands — — 7 7 Other — 5,416 12,683 18,099 Total outside the United States — 5,416 105,490 110,906 Total $ 16,644 $ 11,255 $ 345,932 $ 373,831 (in thousands) Fintech net2phone-UCaaS Traditional Communications Total Three Months Ended April 30, 2020 United States $ 14,684 $ 3,988 $ 205,982 $ 224,654 Outside the United States: United Kingdom — 3 26,360 26,363 Netherlands — — 52,237 52,237 Other — 4,112 13,970 18,082 Total outside the United States — 4,115 92,567 96,682 Total $ 14,684 $ 8,103 $ 298,549 $ 321,336 (in thousands) Fintech net2phone-UCaaS Traditional Communications Total Nine Months Ended April 30, 2021 United States $ 55,229 $ 16,597 $ 776,391 $ 848,217 Outside the United States: United Kingdom — — 154,150 154,150 Netherlands — — 14 14 Other — 15,024 39,617 54,641 Total outside the United States — 15,024 193,781 208,805 Total $ 55,229 $ 31,621 $ 970,172 $ 1,057,022 (in thousands) Fintech net2phone-UCaaS Traditional Communications Total Nine Months Ended April 30, 2020 United States $ 33,982 $ 10,954 $ 626,424 $ 671,360 Outside the United States: United Kingdom — 10 98,304 98,314 Netherlands — — 156,870 156,870 Other — 12,261 46,620 58,881 Total outside the United States — 12,271 301,794 314,065 Total $ 33,982 $ 23,225 $ 928,218 $ 985,425 Remaining Performance Obligations The Company does not have any significant revenue from performance obligations satisfied or partially satisfied in previous reporting periods. The Company’s remaining performance obligations at April 30, 2021 and July 31, 2020 had an original expected duration of one year or less. Accounts Receivable and Contract Balances The timing of revenue recognition may differ from the time of billing to the Company’s customers. Trade accounts receivable in the Company’s consolidated balance sheets represent unconditional rights to consideration. An entity records a contract asset when revenue is recognized in advance of the entity’s right to bill and receive consideration. The Company has not identified any contract assets. Contract liabilities arise when the Company receives consideration or bills its customers prior to providing the goods or services promised in the contract. The primary component of the Company’s contract liability balance is payments received for prepaid BOSS Revolution Calling. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in the Company’s consolidated balance sheets as “Deferred revenue”. The following table presents information about the Company’s contract liability balance: Schedule of Information About Contract Liability Balance 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 21,926 $ 23,572 $ 27,665 $ 31,288 Deferred Customer Contract Acquisition and Fulfillment Costs The Company recognizes as an asset its incremental costs of obtaining a contract with a customer that it expects to recover. The Company charges its direct costs to fulfill contracts to expense as incurred. The Company’s incremental costs of obtaining a contract with a customer are sales commissions paid to acquire customers. The Company applies the practical expedient whereby the Company primarily charges these costs to expense when incurred because the amortization period would be one year or less for the asset that would have been recognized from deferring these costs. For net2phone-UCaaS sales, employees and third parties receive commissions on sales to end users. The Company amortizes the deferred costs over the expected customer relationship period when it is expected to exceed one year. The Company’s deferred customer contract acquisition costs were as follows: Schedule of Deferred Customer Contract Acquisition Costs April 30, 2021 July 31, 2020 (in thousands) Deferred customer contract acquisition costs included in “Other current assets” $ 3,493 $ 2,350 Deferred customer contract acquisition costs included in “Other assets” 3,206 2,384 Total $ 6,699 $ 4,734 The Company’s amortization of deferred customer contract acquisition costs during the periods were as follows: Schedule of Amortization of Deferred Customer Contract Acquisition Costs 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Amortization of deferred customer contract acquisition costs $ 950 $ 616 $ 2,581 $ 1,781 |
Leases
Leases | 9 Months Ended |
Apr. 30, 2021 | |
Leases | |
Leases | Note 4— Leases The Company’s leases primarily consist of operating leases for office space. These leases have remaining terms from one five net2phone-UCaaS has equipment leases that are classified as finance leases, and net2phone-UCaaS is the lessor in various equipment leases that are classified as sales-type finance leases. The assets and liabilities related to these finance leases are not material to the Company’s consolidated balance sheets. On March 26, 2018, the Company completed a pro rata distribution of the common stock that the Company held in the Company’s former subsidiary, Rafael Holdings, Inc. (“Rafael”) to the Company’s stockholders of record as of the close of business on March 13, 2018 (the “Rafael Spin-Off”). Howard S. Jonas, the Chairman of the Company’s Board of Directors, is also the Chairman of the Board of Directors of Rafael. The Company leases office space and parking in Rafael’s building and parking garage located at 520 Broad St, Newark, New Jersey. The Company also leases office space in Israel from Rafael. The Newark lease expires in April 2025 and the Israel lease expires in July 2025. 0.5 1.4 Supplemental disclosures related to the Company’s operating leases were as follows: Schedule of Supplemental Disclosures Related to the Company's Operating Leases 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Operating lease cost $ 700 $ 707 $ 2,125 $ 2,130 Short-term lease cost 217 66 412 198 Total lease cost $ 917 $ 773 $ 2,537 $ 2,328 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 694 $ 687 $ 2,076 $ 2,056 Schedule of Supplemental Disclosures Related Weighted Average Operating Leases April 30, 2021 July 31, 2020 Weighted-average remaining lease term-operating leases 3.5 years 4.2 Weighted-average discount rate-operating leases 2.9 % 3.12 % On September 1, 2020, the Company entered into a new lease with an aggregate operating lease liability of $ 0.6 million. The Company’s aggregate operating lease liability was as follows: Schedule of Aggregate Operating Lease Liability April 30, 2021 July 31, 2020 (in thousands) Operating lease liabilities included in “Other current liabilities” $ 2,516 $ 2,350 Operating lease liabilities included in noncurrent liabilities 6,108 7,353 Total $ 8,624 $ 9,703 Future minimum maturities of operating lease liabilities were as follows (in thousands): Schedule of Future Minimum Maturities of Operating Lease Liabilities Twelve-month period ending April 30: Apr 30, 2021 2022 $ 2,787 2023 2,489 2024 1,949 2025 1,853 2026 33 Thereafter — Total lease payments 9,111 Less imputed interest (487 ) Total operating lease liabilities $ 8,624 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | 9 Months Ended |
Apr. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | Note 5— Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported in the consolidated balance sheets that equals the total of the same amounts reported in the consolidated statements of cash flows: Schedule of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents April 30, 2021 July 31, 2020 (in thousands) Cash and cash equivalents $ 84,017 $ 84,860 Restricted cash and cash equivalents 110,992 116,362 Total cash, cash equivalents, and restricted cash and cash equivalents $ 195,009 $ 201,222 At April 30, 2021 and July 31, 2020, restricted cash and cash equivalents included $ 110.9 million and $ 116.3 million, respectively, in restricted cash and cash equivalents for customer deposits held by IDT Financial Services Limited, the Company’s Gibraltar-based bank. |
Debt Securities
Debt Securities | 9 Months Ended |
Apr. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities | Note 6— Debt Securities The following is a summary of available-for-sale debt securities: Schedule of Available-for-sale Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) April 30, 2021: Certificates of deposit* $ 1,927 $ — $ — $ 1,927 U.S. Treasury bills and notes 1,672 — (28 ) 1,644 Corporate bonds 6,283 21 (112 ) 6,192 Municipal bonds 7,091 — (2 ) 7,089 Total $ 16,973 $ 21 $ (142 ) $ 16,852 July 31, 2020: Certificates of deposit* $ 13,844 $ 58 $ — $ 13,902 U.S. Treasury bills 2,498 — — 2,498 Municipal bonds 1,979 — (16 ) 1,963 Total $ 18,321 $ 58 $ (16 ) $ 18,363 * Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market. Proceeds from maturities and sales of debt securities and redemptions of equity investments were $ 7.1 million and $ 1.6 million in the three months ended April 30, 2021 and 2020, respectively, and $ 18.7 million and $ 4.3 million in the nine months ended April 30, 2021 and 2020, respectively. There were no realized gains or realized losses from sales of debt securities in the three and nine months ended April 30, 2021 and 2020. The Company uses the specific identification method in computing the realized gains and realized losses on the sales of debt securities. The contractual maturities of the Company’s available-for-sale debt securities at April 30, 2021 were as follows: Schedule of Contractual Maturities of Available-for-sale Debt Securities Fair Value (in thousands) Within one year $ 5,048 After one year through five years 5,986 After five years through ten years 5,399 After ten years 419 Total $ 16,852 The following available-for-sale debt securities were in an unrealized loss position for which other-than-temporary impairments were not recognized: Schedule of Available-for-sale Securities, Unrealized Loss Position Unrealized Losses Fair Value (in thousands) April 30, 2021: U.S. Treasury bills and notes $ 28 $ 1,644 Corporate bonds 112 5,535 Municipal bonds 2 5,399 Total $ 142 $ 12,578 July 31, 2020: Municipal bonds $ 16 $ 1,963 At April 30, 2021 and July 31, 2020, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Equity Investments
Equity Investments | 9 Months Ended |
Apr. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Equity Investments | Note 7— Equity Investments Equity investments consist of the following: Schedule of Equity Investments April 30, 2021 July 31, 2020 (in thousands) Zedge, Inc. Class B common stock, 42,282 $ 562 $ 59 Rafael Holdings, Inc. Class B common stock, 28,320 27,806 1,171 389 Rafael Holdings, Inc. restricted Class B common stock, 261,894 nil 10,827 — Other marketable equity securities 1,956 — Fixed income mutual funds 23,070 5,516 Current equity investments $ 37,586 $ 5,964 Visa Inc. Series C Convertible Participating Preferred Stock (“Visa Series C Preferred”) $ 2,343 $ 3,825 Visa Inc. Series A Convertible Participating Preferred Stock (“Visa Series A Preferred”) 2,920 — Series B convertible preferred stock in equity method investment 3,472 — Hedge funds 3,462 4,783 Other 2,725 225 Noncurrent equity investments $ 14,922 $ 8,833 On June 1, 2016, the Company completed a pro rata distribution of the common stock that the Company held in the Company’s subsidiary Zedge, Inc. (“Zedge”) to the Company’s stockholders of record as of the close of business on May 26, 2016. Howard S. Jonas is the Vice-Chairman of the Board of Directors of Zedge. The Company received the Zedge Class B common shares and the unrestricted Rafael Class B common shares set forth in the table above in connection with the lapsing of restrictions on Zedge and Rafael restricted stock held by certain of the Company’s employees and the Company’s payment of taxes related thereto. On December 7, 2020, the Company purchased from Rafael 218,245 newly issued shares of Rafael’s Class B common stock and a warrant to purchase up to 43,649 shares of Rafael’s Class B common stock at an exercise price of $ 22.91 at any time on or after December 7, 2020 and on or prior to June 6, 2022. The aggregate purchase price of $ 5.0 million was allocated $ 4.6 million to the shares and $ 0.4 million to the warrant based on their relative purchase date fair values. The fair value of the warrant on the acquisition date was estimated using a Black-Scholes valuation model that represented a Level 3 measurement. The purchase price was based on a per share price of $ 22.91 , which was the closing price of Rafael’s Class B common stock on the New York Stock Exchange on the trading day immediately preceding the purchase date. On March 15, 2021, the Company exercised the warrant in full and purchased 43,649 shares of Rafael’s Class B common stock for cash of $ 1.0 million. At April 30, 2021, these 261,894 shares of Rafael’s Class B common stock were not available for sale, assignment, or transfer. These restrictions will lapse in June 2021 for 218,245 shares and September 2021 for 43,649 shares. In June 2016, upon the acquisition of Visa Europe Limited by Visa, Inc. (“Visa”), IDT Financial Services Limited received 1,830 13.722 125 6.861 12,500 The changes in the carrying value of the Company’s equity investments without readily determinable fair values for which the Company elected the measurement alternative was as follows: Schedule of Carrying Value of Equity Investments 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 2,223 $ 4,345 $ 4,109 $ 3,919 Redemption for Visa mandatory release assessment — — (1,870 ) — Adjustment for observable transactions involving a similar investment from the same issuer 404 (412 ) 388 14 Redemptions (6 ) — (6 ) — Impairments — — — — Balance, end of the period $ 2,621 $ 3,933 $ 2,621 $ 3,933 In the three months ended April 30, 2021 and the nine months ended April 30, 2021 and 2020, the Company increased the carrying value of the shares of Visa Series C Preferred it held by $ 0.4 million, $ 0.4 14,000 , respectively, and in the three months ended April 30, 2020, the Company decreased the carrying value of the shares of Visa Series C Preferred it held by $ 0.4 million, based on the fair value of Visa Class A common stock and a discount for lack of current marketability. Unrealized gains and losses for all equity investments included the following: Schedule of Unrealized (losses) Gains for All Equity Investments 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Net gains (losses) recognized during the period on equity investments $ 5,435 $ (1,226 ) $ 5,822 $ (817 ) Less: net gains and losses recognized during the period on equity investments sold during the period — — — — Unrealized gains (losses) recognized during the period on equity investments still held at the reporting date $ 5,435 $ (1,226 ) $ 5,822 $ (817 ) Equity Method Investment On February 2, 2021, the Company paid $ 4.0 million to purchase shares of series B convertible preferred stock of a communications company (the equity method investee, or “EMI”). The shares purchased represent 23.95 of the outstanding shares of the EMI on an as converted basis. The Company accounts for this investment using the equity method since the series B convertible preferred stock is in-substance common stock, and the Company can exercise significant influence over the operating and financial policies of the EMI. The following table summarizes the change in the balance of the Company’s equity method investment: Summary of Changes in Equity Method Investments Nine Months Ended April 30, 2021 2020 (in thousands) Balance, beginning of period $ — $ — Purchase of series B convertible preferred stock 4,000 — Equity in the net loss of investee (386 ) — Amortization of equity method basis difference (142 ) — Balance, end of period $ 3,472 $ — The Company determined that on the date of the acquisition, there was a difference of $ 2.7 This basis difference is being amortized over the 6-year estimated life of the customer list. Summarized unaudited statements of operations of the EMI from the date of acquisition was as follows: Summary of Unaudited Statements of Operations Three Months Ended April 30, 2021 2020 (in thousands) Revenues $ 718 $ — Costs and expenses: Direct cost of revenues 804 — Selling, general and administrative 1,525 — Total costs and expenses 2,329 — Loss from operations and net loss $ (1,611 ) $ — |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8— Fair Value Measurements The following table presents the balance of assets and liabilities measured at fair value on a recurring basis: Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) April 30, 2021 Debt securities $ 1,644 $ 15,208 $ — $ 16,852 Equity investments included in current assets 26,759 10,827 — 37,586 Equity investments included in noncurrent assets — 2,920 2,343 5,263 Total $ 28,403 $ 28,955 $ 2,343 $ 59,701 Contingent consideration included in other noncurrent liabilities $ — $ — $ (795 ) $ (795 ) July 31, 2020 Debt securities $ 2,498 $ 15,865 $ — $ 18,363 Equity investments included in current assets 5,964 — — 5,964 Equity investments included in noncurrent assets — — 3,825 3,825 Total $ 8,462 $ 15,865 $ 3,825 $ 28,152 Contingent consideration included in other noncurrent liabilities $ — $ — $ (396 ) $ (396 ) (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market At April 30, 2021 and July 31, 2020, the Company had $ 3.5 4.8 The following table summarizes the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Schedule of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 2,319 $ 4,045 $ 3,825 $ 3,619 Purchase of Rafael Holdings, Inc. warrant — — 354 — Exercise of Rafael Holdings, Inc. warrant (380 ) — (380 ) — Redemption for Visa mandatory release assessment — — (1,870 ) — Total gains (losses) recognized in “Other income (expense), net” 404 (412 ) 414 14 Balance, end of period $ 2,343 $ 3,633 $ 2,343 $ 3,633 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ — $ — $ — $ — The following table summarizes the change in the balance of the Company’s liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Schedule of Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 799 $ 370 $ 396 $ — Transfer into Level 3 from acquisitions (see Note 9) — — 393 375 Total (gains) losses included in “Foreign currency translation adjustment” (4 ) (5 ) 6 (10 ) Balance, end of period $ 795 $ 365 $ 795 $ 365 Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period $ — $ — $ — $ — Fair Value of Other Financial Instruments The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. Cash and cash equivalents, restricted cash and cash equivalents, other current assets, customer deposits, and other current liabilities. Other assets and other liabilities. |
Acquisitions
Acquisitions | 9 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Note 9— Acquisitions On December 3, 2020, the Company’s subsidiary IDT International Telecom, Inc. (“IDTIT”) acquired 51% The acquisition date fair value of the consideration consisted of the following (in thousands): Schedule of Acquisition Date Fair Value of Consideration December 03 2020 Cash paid $ 2,732 Cash acquired (344 ) Cash paid, net of cash acquired 2,388 Contingent consideration 393 Total fair value of consideration, net of cash acquired $ 2,781 The contingent consideration of $ 0.5 The acquisition-date fair value of the contingent consideration was estimated using discounted cash flow models. This fair value measurement was based on significant inputs not observable in the market and therefore represents a Level 3 measurement. There was no change in the estimated fair value of the contingent consideration in the period from the acquisition date to April 30, 2021. The impact of the acquisition’s purchase price allocations on the Company’s consolidated balance sheet was as follows (in thousands): Schedule of Impact of Acquisition's Purchase Price Allocations on Consolidated Balance Sheet April 30, 2020 Trade accounts receivable $ 656 Prepaid expenses 1,644 Property, plant and equipment 75 Goodwill 2,025 Customer relationships ( 15 1,960 Tradenames ( 20 440 Deferred income tax assets 197 Other assets 30 Trade accounts payable (1,306 ) Accrued expenses (423 ) Other current liabilities (329 ) Noncontrolling interests (2,188 ) Net assets excluding cash acquired $ 2,781 Pursuant to a Put/Call Option Agreement related to the 5 0.3 0.2 21,000 The goodwill was assigned to the Traditional Communications segment and was attributable primarily to the assembled workforces and the expected synergies from the business combination. The goodwill is not expected to be deductible for income tax purposes. The Company’s pro forma results of operations as if the acquisition occurred on August 1, 2019 were not materially different from the actual results of operations. Ringsouth Europa, S.L. On December 11, 2019, the Company’s subsidiary, net2phone, Inc. acquired 100% of the outstanding shares of Ringsouth Europa, S.L. (“Ringsouth”), a regional provider of cloud communications services to businesses in Spain. The acquisition date fair value of the consideration consisted of the following (in thousands): Schedule of Acquisition Date Fair Value of Consideration December 11, 2019 Cash paid $ 450 Contingent consideration 375 Total fair value of consideration $ 825 Ringsouth’s operating results from the date of acquisition, which were not significant, were included in the Company’s consolidated financial statements. The Company’s pro forma results of operations as if the Ringsouth acquisition occurred on August 1, 2019 were not materially different from the actual results of operations. |
Other Operating Gain (Expense),
Other Operating Gain (Expense), Net | 9 Months Ended |
Apr. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Operating Gain (Expense), Net | Note 10— Other Operating Gain (Expense), Net The following table summarizes the other operating gain (expense), net by business segment: Schedule of Other Operating Gain (Expense), Net Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Corporate—Straight Path Communications Inc. class action insurance claims net of legal fees/(legal fees net of insurance claims) $ 605 $ 152 $ 601 $ (269 ) net2phone-UCaaS—other, net — — (100 ) (63 ) Fintech—money transfer settlement 45 — 45 — Traditional Communications—gain from sale of rights under class action lawsuit — — 2,000 — Traditional Communications—net2phone indemnification claim (55 ) (386 ) (442 ) (920 ) Traditional Communications—Carrier Services settlement — — (554 ) — Traditional Communications—accrual for non-income related taxes related to a foreign subsidiary — — — (2,150 ) Total other operating gain (expense), net $ 595 $ (234 ) $ 1,550 $ (3,402 ) Straight Path Communications Inc. Class Action On July 31, 2013, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary Straight Path Communications Inc. (“Straight Path”) to the Company’s stockholders of record as of the close of business on July 25, 2013. As discussed in Note 14, there is a pending putative class action on behalf of Straight Path’s stockholders and derivative complaint naming the Company, among others. The Company incurred legal fees of $ 0.3 million and $ 1.2 million in the three months ended April 30, 2021 and 2020, respectively, and $ 2.0 million and $ 2.5 million in the nine months ended April 30, 2021 and 2020, respectively, related to this action. Also, the Company recorded offsetting gains from insurance claims for this matter of $ 0.9 million and $ 1.4 million in the three months ended April 30, 2021 and 2020, respectively, and $ 2.6 million and $ 2.2 million in the nine months ended April 30, 2021 and 2020, respectively. Gain from Sale of Rights under Class Action Lawsuit On December 21, 2020, the Company received $ 2.0 Indemnification Claim In June 2019, as part of a commercial resolution, the Company indemnified a net2phone cable telephony customer related to patent infringement claims brought against the customer. Accrual for Non-Income Related Taxes In the nine months ended April 30, 2020, the Company recorded an accrual for non-income related taxes related to one of its foreign subsidiaries. |
Equity
Equity | 9 Months Ended |
Apr. 30, 2021 | |
Equity: | |
Equity | Note 11— Equity Stock Repurchases The Company has an existing stock repurchase program authorized by its Board of Directors for the repurchase of shares of the Company’s Class B common stock. The Board of Directors authorized the repurchase of up to 8.0 463,792 2.8 40,763 0.2 5.8 In the nine months ended April 30, 2021 and 2020, the Company paid $ 1.3 0.3 109,381 37,348 Deferred Stock Units Equity Incentive Program The Company has an existing equity incentive program in the form of DSUs that, upon vesting, will entitle the grantees to receive shares of the Company’s Class B common stock. On January 5, 2021, the second vesting date under the program, in accordance with the program and based on elections made by certain grantees, the Company issued 283,838 19,919 154,169 2015 Stock Option and Incentive Plan In the nine months ended April 30, 2021 and 2020, the Company received proceeds from the exercise of stock options of $ 0.7 0.3 81,041 32,551 Grant of Restricted Equity in net2phone 2.0, Inc. On December 31, 2020, the previously approved compensatory arrangement with each of Howard S. Jonas and Shmuel Jonas, the Company’s Chief Executive Officer, was finalized. Howard S. Jonas and Shmuel Jonas each received fifty restricted shares 5% The restricted shares will vest if: (a) for any fiscal quarter of net2phone 2.0 between November 1, 2020 and October 31, 2023, net2phone 2.0 records subscription revenue that is at least $18 million, and (b) as of October 31, 2023, the valuation of net2phone 2.0 is $100 million or more. The restricted shares will also vest in the event, prior to October 31, 2023, net2phone 2.0 or its assets are sold at an equity valuation and on a cash-free basis of $100 million or more, regardless of whether the revenue threshold was satisfied prior thereto. The restricted shares entitle each grantee to proceeds only on a sale, spin-off, initial public offering, or other monetization of net2phone 2.0 and have protection from dilution for the first $15 million invested in the net2phone 2.0 following the grant. 0.2 401(k) Plan Matching Contribution – Subsequent Event On May 27, 2021, the Company contributed 35,839 1.0 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 12— Earnings (Loss) Per Share Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share attributable to the Company’s common stockholders consists of the following: Schedule of Weighted-average Number of Shares Used in Calculation of Basic and Diluted Earnings (Loss) Per Share Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Basic weighted-average number of shares 25,530 26,371 25,475 26,323 Effect of dilutive securities: Stock options 295 — 101 — Non-vested restricted Class B common stock 311 135 327 — Diluted weighted-average number of shares 26,136 26,506 25,903 26,323 The following shares were excluded from the calculation of diluted earnings (loss) per share: Schedule of Shares Excluded from the Diluted Earnings (Loss) Per Share Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Stock options — 1,126 713 1,126 Non-vested restricted Class B common stock — — — 520 Shares excluded from the calculation of diluted earnings per share — 1,126 713 1,646 There were no shares excluded from the calculation of diluted earnings per share in the three months ended April 30, 2021. In the nine months ended April 30, 2021 and in the three months ended April 30, 2020, stock options with an exercise price that was greater than the average market price of the Company’s stock during the period were excluded from the diluted earnings per share computation. The diluted loss per share equals basic loss per share in the nine months ended April 30, 2020 because the Company had a net loss and the impact of the assumed exercise of stock options and the vesting of restricted stock would have been anti-dilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Apr. 30, 2021 | |
Equity: | |
Accumulated Other Comprehensive Loss | Note 13— Accumulated Other Comprehensive Loss The accumulated balances for each classification of other comprehensive (loss) income were as follows: Schedule of Accumulated Balances for Each Classification of Other Comprehensive (Loss) Income Unrealized Foreign Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2020 $ 42 $ (7,452 ) $ (7,410 ) Other comprehensive loss attributable to IDT Corporation (163 ) (817 ) (980 ) Balance, April 30, 2021 $ (121 ) $ (8,269 ) $ (8,390 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14— Commitments and Contingencies Coronavirus Disease (COVID-19) The Company continues to monitor and respond to the impacts of the COVID-19 pandemic on all aspects of its business, including its customers, employees, suppliers, vendors, and business partners. Operationally, the Company’s employees transitioned to work-from-home during the third quarter of fiscal 2020 and, to a large degree, continue to work-from-home. Its salespeople and delivery employees continue to serve its independent retailers and channel partners with minimal interruption. COVID-19 had mixed financial impacts on the Company beginning in the third quarter of fiscal 2020 and continuing through the third quarter of fiscal 2021. Legal Proceedings On January 22, 2019, Jose Rosales filed a putative class action against IDT America, IDT Domestic Telecom and IDT International in California state court alleging certain violations of employment law. Plaintiff alleges that these companies failed to compensate members of the putative class in accordance with California law. In August 2019, the Company filed a cross complaint against Rosales alleging trade secret and other violations. The parties are now seeking court approval of a settlement agreement. On April 24, 2018, Sprint Communications Company L.P. filed a patent infringement claim against the Company and certain of its affiliates in the U.S. District Court for the District of Delaware alleging infringement of U.S. Patent Nos. 6,298,064; 6,330,224; 6,343,084; 6,452,932; 6,463,052; 6,473,429; 6,563,918; 6,633,561; 6,697,340; 6,999,463; 7,286,561; 7,324,534; 7,327,728; 7,505,454; and 7,693,131. Plaintiff was seeking damages and injunctive relief. On June 28, 2018, Sprint dismissed the complaint without prejudice. The Company is evaluating the underlying claim, and at this stage, is unable to estimate its potential liability, if any. The Company intends to vigorously defend any claim of infringement of the listed patents. On July 5, 2017, plaintiff JDS1, LLC, on behalf of itself and all other similarly situated stockholders of Straight Path, and derivatively on behalf of Straight Path as nominal defendant, filed a putative class action and derivative complaint in the Court of Chancery of the State of Delaware against the Company, The Patrick Henry Trust (a trust formed by Howard S. Jonas that held record and beneficial ownership of certain shares of Straight Path he formerly held), Howard S. Jonas, and each of Straight Path’s directors. The complaint alleges that the Company aided and abetted Straight Path Chairman of the Board and Chief Executive Officer Davidi Jonas, and Howard S. Jonas in his capacity as controlling stockholder of Straight Path, in breaching their fiduciary duties to Straight Path in connection with the settlement of claims between Straight Path and the Company related to potential indemnification claims concerning Straight Path’s obligations under the Consent Decree it entered into with the Federal Communications Commission (“FCC”), as well as the sale of Straight Path’s subsidiary Straight Path IP Group, Inc. to the Company in connection with that settlement. That action was consolidated with a similar action that was initiated by The Arbitrage Fund. The Plaintiffs are seeking, among other things, (i) a declaration that the action may be maintained as a class action or in the alternative, that demand on the Straight Path Board is excused; (ii) that the term sheet is invalid; (iii) awarding damages for the unfair price stockholders received in the merger between Straight Path and Verizon Communications Inc. for their shares of Straight Path’s Class B common stock; and (iv) ordering Howard S. Jonas, Davidi Jonas, and the Company to disgorge any profits for the benefit of the class Plaintiffs. On August 28, 2017, the Plaintiffs filed an amended complaint. On September 24, 2017, the Company filed a motion to dismiss the amended complaint, which was ultimately denied, and which denial was affirmed by the Delaware Supreme Court. The parties are engaged in discovery. The trial is currently scheduled for December 2021. The Company intends to vigorously defend this matter (see Note 10). At this stage, the Company is unable to estimate its potential liability, if any. In addition to the foregoing, the Company is subject to other legal proceedings that have arisen in the ordinary course of business and have not been finally adjudicated. Although there can be no assurance in this regard, the Company believes that none of the other legal proceedings to which the Company is a party will have a material adverse effect on the Company’s results of operations, cash flows or financial condition. Sales Tax Contingency On June 21, 2018, the United States Supreme Court rendered a decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning certain existing court precedent. The Company has evaluated its state tax filings with respect to the Wayfair decision and is in the process of reviewing its remittance practices. It is possible that one or more jurisdictions may assert that the Company has liability for periods for which it has not collected sales, use or other similar taxes, and if such an assertion or assertions were successful it could materially and adversely affect the Company’s business, financial position, and operating results. One or more jurisdictions may change their laws or policies to apply their sales, use or other similar taxes to the Company’s operations, and if such changes were made it could materially and adversely affect the Company’s business, financial position, and operating results. Regulatory Fees Audit The Company’s 2017 FCC Form 499-A, which reports its calendar year 2016 revenue, is currently under audit by the Universal Service Administrative Company (“USAC”). The Internal Audit Division of USAC issued preliminary audit findings and the Company has, in accordance with audit procedures, appealed certain of the findings. The Company awaits a final decision by USAC on the preliminary audit findings. Depending on the findings contained in the final decision, the Company may further appeal to the FCC. Although a final decision remains pending, the Company has been invoiced $ 2.9 1.8 41.6 40.8 Purchase Commitments At April 30, 2021, the Company had purchase commitments of $ 3.4 Performance Bonds The Company has performance bonds issued through third parties for the benefit of various states in order to comply with the states’ financial requirements for money remittance licenses and telecommunications resellers. At April 30, 2021, the Company had aggregate performance bonds of $19.8 Company Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services, which provides the Company’s international money transfer services in the United States, as substantially restricted and unavailable for other purposes. At April 30, 2021 and July 31, 2020, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $ 15.3 11.0 FCC Investigation of Straight Path Spectrum LLC On September 20, 2016, the Company received a letter of inquiry from the Enforcement Bureau of the FCC requesting certain information and materials related to an investigation of potential violations by Straight Path Spectrum LLC (formerly a subsidiary of the Company and Straight Path) in connection with licenses to operate on the 28 GHz and 39 GHz bands of the Fixed Microwave Services. The Company has cooperated with the FCC in this matter and has responded to the letter of inquiry. If the FCC were to pursue separate action against the Company, the FCC could seek to fine or impose regulatory penalties or civil liability on the Company related to activities during the period of ownership by the Company. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Apr. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Note 15— Other Income (Expense), Net Other income (expense), net consists of the following: Schedule of Other Income (Expense), Net 2021 2020 2021 2020 Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Foreign currency transaction (losses ) gains $ (1,069 ) $ (774 ) $ 396 $ 175 Equity in the net loss of investee (528 ) — (528 ) — Write-off of tax assets related to prior periods — (129 ) — (742 ) Gain (loss) on investments 5,435 (1,226 ) 5,822 (817 ) Other (23 ) (15 ) (82 ) 24 Total other income (expense), net $ 3,815 $ (2,144 ) $ 5,608 $ (1,360 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16— Income Taxes In the three and nine months ended April 30, 2021, the Company released $ 24.0 Income Taxes (Topic 740) |
Recently Issued Accounting Stan
Recently Issued Accounting Standards Not Yet Adopted | 9 Months Ended |
Apr. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards Not Yet Adopted | Note 17 — Recently Issued Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes, In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321) Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), |
Revolving Credit Facility_Subse
Revolving Credit Facility—Subsequent Event | 9 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
Revolving Credit Facility—Subsequent Event | Note 18— Revolving Credit Facility—Subsequent Event The Company’s subsidiary, IDT Telecom, Inc. (“IDT Telecom”), entered into a credit agreement, dated as of May 17, 2021, with TD Bank, N.A. for a revolving credit facility for up to a maximum principal amount of $ 25.0 The principal outstanding bears interest per annum at the Intercontinental Exchange Benchmark Administration Ltd. LIBO rate multiplied by the Regulation D maximum reserve requirement plus 125 to 175 basis points, depending upon IDT Telecom’s leverage ratio as computed for the most recent fiscal quarter. Interest is payable monthly, and all outstanding principal and any accrued and unpaid interest is due in May 2024. IDT Telecom pays a quarterly unused commitment fee on the average daily balance of the unused portion of the $25.0 million commitment of 30 to 85 basis points, depending upon IDT Telecom’s leverage ratio as computed for the most recent fiscal quarter. IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain targets based on financial ratios during the term of the revolving credit facility. IDT Telecom was in compliance with all of the covenants as of the date of this Quarterly Report on Form 10-Q. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results of Business Segments | Operating results for the business segments of the Company were as follows: Schedule of Operating Results of Business Segments (in thousands) Fintech net2phone-UCaaS Traditional Communications Corporate Total Three Months Ended April 30, 2021 Revenues $ 16,644 $ 11,255 $ 345,932 $ — $ 373,831 (Loss) income from operations (1,403 ) (3,684 ) 20,074 (1,115 ) 13,872 Three Months Ended April 30, 2020 Revenues $ 14,684 $ 8,103 $ 298,549 $ — $ 321,336 Income (loss) from operations 142 (3,643 ) 9,503 (2,210 ) 3,792 Nine Months Ended April 30, 2021 Revenues $ 55,229 $ 31,621 $ 970,172 $ — $ 1,057,022 Income (loss) from operations 1,487 (10,744 ) 54,575 (5,273 ) 40,045 Nine Months Ended April 30, 2020 Revenues $ 33,982 $ 23,225 $ 928,218 $ — $ 985,425 (Loss) income from operations (5,705 ) (11,137 ) 27,771 (7,207 ) 3,722 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Business Segment and Service Offered to Customers | The following table shows the Company’s revenues disaggregated by business segment and service offered to customers: Schedule of Revenues Disaggregated by Business Segment and Service Offered to Customers Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) BOSS Revolution Money Transfer $ 10,259 $ 11,817 $ 38,697 $ 26,679 National Retail Solutions 6,385 2,867 16,532 7,303 Total Fintech 16,644 14,684 55,229 33,982 net2phone-UCaaS 11,255 8,103 31,621 23,225 Mobile Top-Up 132,603 85,139 325,001 237,808 BOSS Revolution Calling 111,412 112,536 342,665 343,731 Carrier Services 88,643 87,435 263,571 302,613 Other 13,274 13,439 38,935 44,066 Total Traditional Communications 345,932 298,549 970,172 928,218 Total $ 373,831 $ 321,336 $ 1,057,022 $ 985,425 |
Schedule of Revenues Disaggregated by Geographic Region | The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location. On July 31, 2020, the Company restructured certain operations for tax purposes resulting in the change of geographic sourcing of revenues from the Netherlands to the United States. Schedule of Revenues Disaggregated by Geographic Region (in thousands) Fintech net2phone-UCaaS Traditional Communications Total Three Months Ended April 30, 2021 United States $ 16,644 $ 5,839 $ 240,442 $ 262,925 Outside the United States: United Kingdom — — 92,800 92,800 Netherlands — — 7 7 Other — 5,416 12,683 18,099 Total outside the United States — 5,416 105,490 110,906 Total $ 16,644 $ 11,255 $ 345,932 $ 373,831 (in thousands) Fintech net2phone-UCaaS Traditional Communications Total Three Months Ended April 30, 2020 United States $ 14,684 $ 3,988 $ 205,982 $ 224,654 Outside the United States: United Kingdom — 3 26,360 26,363 Netherlands — — 52,237 52,237 Other — 4,112 13,970 18,082 Total outside the United States — 4,115 92,567 96,682 Total $ 14,684 $ 8,103 $ 298,549 $ 321,336 (in thousands) Fintech net2phone-UCaaS Traditional Communications Total Nine Months Ended April 30, 2021 United States $ 55,229 $ 16,597 $ 776,391 $ 848,217 Outside the United States: United Kingdom — — 154,150 154,150 Netherlands — — 14 14 Other — 15,024 39,617 54,641 Total outside the United States — 15,024 193,781 208,805 Total $ 55,229 $ 31,621 $ 970,172 $ 1,057,022 (in thousands) Fintech net2phone-UCaaS Traditional Communications Total Nine Months Ended April 30, 2020 United States $ 33,982 $ 10,954 $ 626,424 $ 671,360 Outside the United States: United Kingdom — 10 98,304 98,314 Netherlands — — 156,870 156,870 Other — 12,261 46,620 58,881 Total outside the United States — 12,271 301,794 314,065 Total $ 33,982 $ 23,225 $ 928,218 $ 985,425 |
Schedule of Information About Contract Liability Balance | The following table presents information about the Company’s contract liability balance: Schedule of Information About Contract Liability Balance 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 21,926 $ 23,572 $ 27,665 $ 31,288 |
Schedule of Deferred Customer Contract Acquisition Costs | The Company’s deferred customer contract acquisition costs were as follows: Schedule of Deferred Customer Contract Acquisition Costs April 30, 2021 July 31, 2020 (in thousands) Deferred customer contract acquisition costs included in “Other current assets” $ 3,493 $ 2,350 Deferred customer contract acquisition costs included in “Other assets” 3,206 2,384 Total $ 6,699 $ 4,734 |
Schedule of Amortization of Deferred Customer Contract Acquisition Costs | The Company’s amortization of deferred customer contract acquisition costs during the periods were as follows: Schedule of Amortization of Deferred Customer Contract Acquisition Costs 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Amortization of deferred customer contract acquisition costs $ 950 $ 616 $ 2,581 $ 1,781 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Leases | |
Schedule of Supplemental Disclosures Related to the Company's Operating Leases | Supplemental disclosures related to the Company’s operating leases were as follows: Schedule of Supplemental Disclosures Related to the Company's Operating Leases 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Operating lease cost $ 700 $ 707 $ 2,125 $ 2,130 Short-term lease cost 217 66 412 198 Total lease cost $ 917 $ 773 $ 2,537 $ 2,328 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 694 $ 687 $ 2,076 $ 2,056 |
Schedule of Supplemental Disclosures Related Weighted Average Operating Leases | Schedule of Supplemental Disclosures Related Weighted Average Operating Leases April 30, 2021 July 31, 2020 Weighted-average remaining lease term-operating leases 3.5 years 4.2 Weighted-average discount rate-operating leases 2.9 % 3.12 % |
Schedule of Aggregate Operating Lease Liability | Schedule of Aggregate Operating Lease Liability April 30, 2021 July 31, 2020 (in thousands) Operating lease liabilities included in “Other current liabilities” $ 2,516 $ 2,350 Operating lease liabilities included in noncurrent liabilities 6,108 7,353 Total $ 8,624 $ 9,703 |
Schedule of Future Minimum Maturities of Operating Lease Liabilities | Future minimum maturities of operating lease liabilities were as follows (in thousands): Schedule of Future Minimum Maturities of Operating Lease Liabilities Twelve-month period ending April 30: Apr 30, 2021 2022 $ 2,787 2023 2,489 2024 1,949 2025 1,853 2026 33 Thereafter — Total lease payments 9,111 Less imputed interest (487 ) Total operating lease liabilities $ 8,624 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported in the consolidated balance sheets that equals the total of the same amounts reported in the consolidated statements of cash flows: Schedule of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents April 30, 2021 July 31, 2020 (in thousands) Cash and cash equivalents $ 84,017 $ 84,860 Restricted cash and cash equivalents 110,992 116,362 Total cash, cash equivalents, and restricted cash and cash equivalents $ 195,009 $ 201,222 |
Debt Securities (Tables)
Debt Securities (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The following is a summary of available-for-sale debt securities: Schedule of Available-for-sale Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) April 30, 2021: Certificates of deposit* $ 1,927 $ — $ — $ 1,927 U.S. Treasury bills and notes 1,672 — (28 ) 1,644 Corporate bonds 6,283 21 (112 ) 6,192 Municipal bonds 7,091 — (2 ) 7,089 Total $ 16,973 $ 21 $ (142 ) $ 16,852 July 31, 2020: Certificates of deposit* $ 13,844 $ 58 $ — $ 13,902 U.S. Treasury bills 2,498 — — 2,498 Municipal bonds 1,979 — (16 ) 1,963 Total $ 18,321 $ 58 $ (16 ) $ 18,363 * Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market. |
Schedule of Contractual Maturities of Available-for-sale Debt Securities | The contractual maturities of the Company’s available-for-sale debt securities at April 30, 2021 were as follows: Schedule of Contractual Maturities of Available-for-sale Debt Securities Fair Value (in thousands) Within one year $ 5,048 After one year through five years 5,986 After five years through ten years 5,399 After ten years 419 Total $ 16,852 |
Schedule of Available-for-sale Securities, Unrealized Loss Position | The following available-for-sale debt securities were in an unrealized loss position for which other-than-temporary impairments were not recognized: Schedule of Available-for-sale Securities, Unrealized Loss Position Unrealized Losses Fair Value (in thousands) April 30, 2021: U.S. Treasury bills and notes $ 28 $ 1,644 Corporate bonds 112 5,535 Municipal bonds 2 5,399 Total $ 142 $ 12,578 July 31, 2020: Municipal bonds $ 16 $ 1,963 |
Equity Investments (Tables)
Equity Investments (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Equity Investments | Equity investments consist of the following: Schedule of Equity Investments April 30, 2021 July 31, 2020 (in thousands) Zedge, Inc. Class B common stock, 42,282 $ 562 $ 59 Rafael Holdings, Inc. Class B common stock, 28,320 27,806 1,171 389 Rafael Holdings, Inc. restricted Class B common stock, 261,894 nil 10,827 — Other marketable equity securities 1,956 — Fixed income mutual funds 23,070 5,516 Current equity investments $ 37,586 $ 5,964 Visa Inc. Series C Convertible Participating Preferred Stock (“Visa Series C Preferred”) $ 2,343 $ 3,825 Visa Inc. Series A Convertible Participating Preferred Stock (“Visa Series A Preferred”) 2,920 — Series B convertible preferred stock in equity method investment 3,472 — Hedge funds 3,462 4,783 Other 2,725 225 Noncurrent equity investments $ 14,922 $ 8,833 |
Schedule of Carrying Value of Equity Investments | The changes in the carrying value of the Company’s equity investments without readily determinable fair values for which the Company elected the measurement alternative was as follows: Schedule of Carrying Value of Equity Investments 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 2,223 $ 4,345 $ 4,109 $ 3,919 Redemption for Visa mandatory release assessment — — (1,870 ) — Adjustment for observable transactions involving a similar investment from the same issuer 404 (412 ) 388 14 Redemptions (6 ) — (6 ) — Impairments — — — — Balance, end of the period $ 2,621 $ 3,933 $ 2,621 $ 3,933 |
Schedule of Unrealized (losses) Gains for All Equity Investments | Unrealized gains and losses for all equity investments included the following: Schedule of Unrealized (losses) Gains for All Equity Investments 2021 2020 2021 2020 Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Net gains (losses) recognized during the period on equity investments $ 5,435 $ (1,226 ) $ 5,822 $ (817 ) Less: net gains and losses recognized during the period on equity investments sold during the period — — — — Unrealized gains (losses) recognized during the period on equity investments still held at the reporting date $ 5,435 $ (1,226 ) $ 5,822 $ (817 ) |
Summary of Changes in Equity Method Investments | The following table summarizes the change in the balance of the Company’s equity method investment: Summary of Changes in Equity Method Investments Nine Months Ended April 30, 2021 2020 (in thousands) Balance, beginning of period $ — $ — Purchase of series B convertible preferred stock 4,000 — Equity in the net loss of investee (386 ) — Amortization of equity method basis difference (142 ) — Balance, end of period $ 3,472 $ — |
Summary of Unaudited Statements of Operations | Summarized unaudited statements of operations of the EMI from the date of acquisition was as follows: Summary of Unaudited Statements of Operations Three Months Ended April 30, 2021 2020 (in thousands) Revenues $ 718 $ — Costs and expenses: Direct cost of revenues 804 — Selling, general and administrative 1,525 — Total costs and expenses 2,329 — Loss from operations and net loss $ (1,611 ) $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis | The following table presents the balance of assets and liabilities measured at fair value on a recurring basis: Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) April 30, 2021 Debt securities $ 1,644 $ 15,208 $ — $ 16,852 Equity investments included in current assets 26,759 10,827 — 37,586 Equity investments included in noncurrent assets — 2,920 2,343 5,263 Total $ 28,403 $ 28,955 $ 2,343 $ 59,701 Contingent consideration included in other noncurrent liabilities $ — $ — $ (795 ) $ (795 ) July 31, 2020 Debt securities $ 2,498 $ 15,865 $ — $ 18,363 Equity investments included in current assets 5,964 — — 5,964 Equity investments included in noncurrent assets — — 3,825 3,825 Total $ 8,462 $ 15,865 $ 3,825 $ 28,152 Contingent consideration included in other noncurrent liabilities $ — $ — $ (396 ) $ (396 ) (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market |
Schedule of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table summarizes the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Schedule of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 2,319 $ 4,045 $ 3,825 $ 3,619 Purchase of Rafael Holdings, Inc. warrant — — 354 — Exercise of Rafael Holdings, Inc. warrant (380 ) — (380 ) — Redemption for Visa mandatory release assessment — — (1,870 ) — Total gains (losses) recognized in “Other income (expense), net” 404 (412 ) 414 14 Balance, end of period $ 2,343 $ 3,633 $ 2,343 $ 3,633 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ — $ — $ — $ — |
Schedule of Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table summarizes the change in the balance of the Company’s liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Schedule of Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 799 $ 370 $ 396 $ — Transfer into Level 3 from acquisitions (see Note 9) — — 393 375 Total (gains) losses included in “Foreign currency translation adjustment” (4 ) (5 ) 6 (10 ) Balance, end of period $ 795 $ 365 $ 795 $ 365 Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period $ — $ — $ — $ — |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Business Acquisition [Line Items] | |
Schedule of Acquisition Date Fair Value of Consideration | The acquisition date fair value of the consideration consisted of the following (in thousands): Schedule of Acquisition Date Fair Value of Consideration December 03 2020 Cash paid $ 2,732 Cash acquired (344 ) Cash paid, net of cash acquired 2,388 Contingent consideration 393 Total fair value of consideration, net of cash acquired $ 2,781 |
Schedule of Impact of Acquisition's Purchase Price Allocations on Consolidated Balance Sheet | The impact of the acquisition’s purchase price allocations on the Company’s consolidated balance sheet was as follows (in thousands): Schedule of Impact of Acquisition's Purchase Price Allocations on Consolidated Balance Sheet April 30, 2020 Trade accounts receivable $ 656 Prepaid expenses 1,644 Property, plant and equipment 75 Goodwill 2,025 Customer relationships ( 15 1,960 Tradenames ( 20 440 Deferred income tax assets 197 Other assets 30 Trade accounts payable (1,306 ) Accrued expenses (423 ) Other current liabilities (329 ) Noncontrolling interests (2,188 ) Net assets excluding cash acquired $ 2,781 |
Ringsouth Europa SL [Member] | |
Business Acquisition [Line Items] | |
Schedule of Acquisition Date Fair Value of Consideration | Schedule of Acquisition Date Fair Value of Consideration December 11, 2019 Cash paid $ 450 Contingent consideration 375 Total fair value of consideration $ 825 |
Other Operating Gain (Expense_2
Other Operating Gain (Expense), Net (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Gain (Expense), Net | The following table summarizes the other operating gain (expense), net by business segment: Schedule of Other Operating Gain (Expense), Net Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Corporate—Straight Path Communications Inc. class action insurance claims net of legal fees/(legal fees net of insurance claims) $ 605 $ 152 $ 601 $ (269 ) net2phone-UCaaS—other, net — — (100 ) (63 ) Fintech—money transfer settlement 45 — 45 — Traditional Communications—gain from sale of rights under class action lawsuit — — 2,000 — Traditional Communications—net2phone indemnification claim (55 ) (386 ) (442 ) (920 ) Traditional Communications—Carrier Services settlement — — (554 ) — Traditional Communications—accrual for non-income related taxes related to a foreign subsidiary — — — (2,150 ) Total other operating gain (expense), net $ 595 $ (234 ) $ 1,550 $ (3,402 ) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-average Number of Shares Used in Calculation of Basic and Diluted Earnings (Loss) Per Share | The weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share attributable to the Company’s common stockholders consists of the following: Schedule of Weighted-average Number of Shares Used in Calculation of Basic and Diluted Earnings (Loss) Per Share Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Basic weighted-average number of shares 25,530 26,371 25,475 26,323 Effect of dilutive securities: Stock options 295 — 101 — Non-vested restricted Class B common stock 311 135 327 — Diluted weighted-average number of shares 26,136 26,506 25,903 26,323 |
Schedule of Shares Excluded from the Diluted Earnings (Loss) Per Share | The following shares were excluded from the calculation of diluted earnings (loss) per share: Schedule of Shares Excluded from the Diluted Earnings (Loss) Per Share Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Stock options — 1,126 713 1,126 Non-vested restricted Class B common stock — — — 520 Shares excluded from the calculation of diluted earnings per share — 1,126 713 1,646 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Equity: | |
Schedule of Accumulated Balances for Each Classification of Other Comprehensive (Loss) Income | The accumulated balances for each classification of other comprehensive (loss) income were as follows: Schedule of Accumulated Balances for Each Classification of Other Comprehensive (Loss) Income Unrealized Foreign Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2020 $ 42 $ (7,452 ) $ (7,410 ) Other comprehensive loss attributable to IDT Corporation (163 ) (817 ) (980 ) Balance, April 30, 2021 $ (121 ) $ (8,269 ) $ (8,390 ) |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Apr. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expense), Net | Other income (expense), net consists of the following: Schedule of Other Income (Expense), Net 2021 2020 2021 2020 Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Foreign currency transaction (losses ) gains $ (1,069 ) $ (774 ) $ 396 $ 175 Equity in the net loss of investee (528 ) — (528 ) — Write-off of tax assets related to prior periods — (129 ) — (742 ) Gain (loss) on investments 5,435 (1,226 ) 5,822 (817 ) Other (23 ) (15 ) (82 ) 24 Total other income (expense), net $ 3,815 $ (2,144 ) $ 5,608 $ (1,360 ) |
Schedule of Operating Results o
Schedule of Operating Results of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 373,831 | $ 321,336 | $ 1,057,022 | $ 985,425 |
Income (loss) from operations | 13,872 | 3,792 | 40,045 | 3,722 |
Fintech [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 16,644 | 14,684 | 55,229 | 33,982 |
Income (loss) from operations | (1,403) | 142 | 1,487 | (5,705) |
Net2phone-UCaaS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 11,255 | 8,103 | 31,621 | 23,225 |
Income (loss) from operations | (3,684) | (3,643) | (10,744) | (11,137) |
Traditional Communications [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 345,932 | 298,549 | 970,172 | 928,218 |
Income (loss) from operations | 20,074 | 9,503 | 54,575 | 27,771 |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Income (loss) from operations | $ (1,115) | $ (2,210) | $ (5,273) | $ (7,207) |
Business Segment Information (D
Business Segment Information (Details Narrative) | 9 Months Ended |
Apr. 30, 2021Integer | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Schedule of Revenues Disaggrega
Schedule of Revenues Disaggregated by Business Segment and Service Offered to Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 373,831 | $ 321,336 | $ 1,057,022 | $ 985,425 |
Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 16,644 | 14,684 | 55,229 | 33,982 |
Net2phone-UCaaS [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 11,255 | 8,103 | 31,621 | 23,225 |
Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 345,932 | 298,549 | 970,172 | 928,218 |
BOSS Revolution Money Transfer [Member] | Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,259 | 11,817 | 38,697 | 26,679 |
National Retail Solutions [Member] | Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 6,385 | 2,867 | 16,532 | 7,303 |
Mobile Top-Up [Member] | Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 132,603 | 85,139 | 325,001 | 237,808 |
BOSS Revolution Calling [Member] | Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 111,412 | 112,536 | 342,665 | 343,731 |
Carrier Services [Member] | Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 88,643 | 87,435 | 263,571 | 302,613 |
Other [Member] | Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 13,274 | $ 13,439 | $ 38,935 | $ 44,066 |
Schedule of Revenues Disaggre_2
Schedule of Revenues Disaggregated by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 373,831 | $ 321,336 | $ 1,057,022 | $ 985,425 |
Total outside the United States | 110,906 | 96,682 | 208,805 | 314,065 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 262,925 | 224,654 | 848,217 | 671,360 |
UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | 92,800 | 26,363 | 154,150 | 98,314 |
NETHERLANDS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | 7 | 52,237 | 14 | 156,870 |
Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | 18,099 | 18,082 | 54,641 | 58,881 |
Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 16,644 | 14,684 | 55,229 | 33,982 |
Total outside the United States | ||||
Fintech [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 16,644 | 14,684 | 55,229 | 33,982 |
Fintech [Member] | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | ||||
Fintech [Member] | NETHERLANDS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | ||||
Fintech [Member] | Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | ||||
Net2phone-UCaaS [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 11,255 | 8,103 | 31,621 | 23,225 |
Total outside the United States | 5,416 | 4,115 | 15,024 | 12,271 |
Net2phone-UCaaS [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 5,839 | 3,988 | 16,597 | 10,954 |
Net2phone-UCaaS [Member] | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | 3 | 10 | ||
Net2phone-UCaaS [Member] | NETHERLANDS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | ||||
Net2phone-UCaaS [Member] | Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | 5,416 | 4,112 | 15,024 | 12,261 |
Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 345,932 | 298,549 | 970,172 | 928,218 |
Total outside the United States | 105,490 | 92,567 | 193,781 | 301,794 |
Traditional Communications [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 240,442 | 205,982 | 776,391 | 626,424 |
Traditional Communications [Member] | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | 92,800 | 26,360 | 154,150 | 98,304 |
Traditional Communications [Member] | NETHERLANDS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | 7 | 52,237 | 14 | 156,870 |
Traditional Communications [Member] | Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total outside the United States | $ 12,683 | $ 13,970 | $ 39,617 | $ 46,620 |
Schedule of Information About C
Schedule of Information About Contract Liability Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period | $ 21,926 | $ 23,572 | $ 27,665 | $ 31,288 |
Schedule of Deferred Customer C
Schedule of Deferred Customer Contract Acquisition Costs (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Deferred customer contract acquisition costs included in “Other current assets” | $ 3,493 | $ 2,350 |
Deferred customer contract acquisition costs included in “Other assets” | 3,206 | 2,384 |
Total | $ 6,699 | $ 4,734 |
Schedule of Amortization of Def
Schedule of Amortization of Deferred Customer Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Amortization of deferred customer contract acquisition costs | $ 950 | $ 616 | $ 2,581 | $ 1,781 |
Schedule of Supplemental Disclo
Schedule of Supplemental Disclosures Related to the Company's Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Leases | ||||
Operating lease cost | $ 700 | $ 707 | $ 2,125 | $ 2,130 |
Short-term lease cost | 217 | 66 | 412 | 198 |
Total lease cost | 917 | 773 | 2,537 | 2,328 |
Operating cash flows from operating leases | $ 694 | $ 687 | $ 2,076 | $ 2,056 |
Schedule of Supplemental Disc_2
Schedule of Supplemental Disclosures Related Weighted Average Operating Leases (Details) | Apr. 30, 2021 | Jul. 31, 2020 |
Leases | ||
Weighted-average remaining lease term-operating leases | 3 years 6 months | 4 years 2 months 12 days |
Weighted-average discount rate-operating leases | 2.90% | 3.12% |
Schedule of Aggregate Operating
Schedule of Aggregate Operating Lease Liability (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
Leases | ||
Operating lease liabilities included in “Other current liabilities” | $ 2,516 | $ 2,350 |
Operating lease liabilities included in noncurrent liabilities | 6,108 | 7,353 |
Total | $ 8,624 | $ 9,703 |
Schedule of Future Minimum Matu
Schedule of Future Minimum Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
Leases | ||
2022 | $ 2,787 | |
2023 | 2,489 | |
2024 | 1,949 | |
2025 | 1,853 | |
2026 | 33 | |
Thereafter | ||
Total lease payments | 9,111 | |
Less imputed interest | (487) | |
Total operating lease liabilities | $ 8,624 | $ 9,703 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Millions | Sep. 01, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 |
LeasesLineItems [Line Items] | |||||
Operating lease liabilities | $ 0.6 | ||||
Rafael Holdings Inc. [Member] | |||||
LeasesLineItems [Line Items] | |||||
Lease cost | $ 0.5 | $ 0.5 | $ 1.4 | $ 1.4 | |
Newark NJ [Member] | |||||
LeasesLineItems [Line Items] | |||||
Lease expiration description | The Newark lease expires in April 2025 and the Israel lease expires in July 2025. | ||||
Minimum [Member] | |||||
LeasesLineItems [Line Items] | |||||
Lease term | 1 year | 1 year | |||
Maximum [Member] | |||||
LeasesLineItems [Line Items] | |||||
Lease term | 5 years | 5 years |
Schedule of Cash, Cash Equivale
Schedule of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 | Apr. 30, 2020 | Jul. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 84,017 | $ 84,860 | ||
Restricted cash and cash equivalents | 110,992 | 116,362 | ||
Total cash, cash equivalents, and restricted cash and cash equivalents | $ 195,009 | $ 201,222 | $ 166,453 | $ 257,199 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details Narrative) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 110,992 | $ 116,362 |
IDT Financial Services Limited [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 110,900 | $ 116,300 |
Schedule of Available-for-sale
Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 | |
Marketable Securities [Line Items] | |||
Amortized Cost | $ 16,973 | $ 18,321 | |
Gross Unrealized Gains | 21 | 58 | |
Gross Unrealized Losses | (142) | (16) | |
Fair Value | 16,852 | 18,363 | |
Certificates of Deposit [Member] | |||
Marketable Securities [Line Items] | |||
Amortized Cost | [1] | 1,927 | 13,844 |
Gross Unrealized Gains | [1] | 58 | |
Gross Unrealized Losses | [1] | ||
Fair Value | [1] | 1,927 | 13,902 |
US Treasury Bill Securities [Member] | |||
Marketable Securities [Line Items] | |||
Amortized Cost | 1,672 | 2,498 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | (28) | ||
Fair Value | 1,644 | 2,498 | |
Corporate Bond Securities [Member] | |||
Marketable Securities [Line Items] | |||
Amortized Cost | 6,283 | ||
Gross Unrealized Gains | 21 | ||
Gross Unrealized Losses | (112) | ||
Fair Value | 6,192 | ||
Municipal Bonds [Member] | |||
Marketable Securities [Line Items] | |||
Amortized Cost | 7,091 | 1,979 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | (2) | (16) | |
Fair Value | $ 7,089 | $ 1,963 | |
[1] | Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market. |
Schedule of Contractual Maturit
Schedule of Contractual Maturities of Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Within one year | $ 5,048 | |
After one year through five years | 5,986 | |
After five years through ten years | 5,399 | |
After ten years | 419 | |
Total | $ 16,852 | $ 18,363 |
Schedule of Available-for-sal_2
Schedule of Available-for-sale Securities, Unrealized Loss Position (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
DebtSecuritiesDetailsScheduleOfAvailableForSaleSecuritiesUnrealizedLossPositionLineItemsLineItems [Line Items] | ||
Unrealized Losses | $ 142 | |
Fair Value | 12,578 | |
US Treasury Bill Securities [Member] | ||
DebtSecuritiesDetailsScheduleOfAvailableForSaleSecuritiesUnrealizedLossPositionLineItemsLineItems [Line Items] | ||
Unrealized Losses | 28 | |
Fair Value | 1,644 | |
Corporate Bond Securities [Member] | ||
DebtSecuritiesDetailsScheduleOfAvailableForSaleSecuritiesUnrealizedLossPositionLineItemsLineItems [Line Items] | ||
Unrealized Losses | 112 | |
Fair Value | 5,535 | |
Municipal Bonds [Member] | ||
DebtSecuritiesDetailsScheduleOfAvailableForSaleSecuritiesUnrealizedLossPositionLineItemsLineItems [Line Items] | ||
Unrealized Losses | 2 | $ 16 |
Fair Value | $ 5,399 | $ 1,963 |
Debt Securities (Details Narrat
Debt Securities (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | $ 7.1 | $ 1.6 | $ 18.7 | $ 4.3 |
Schedule of Equity Investments
Schedule of Equity Investments (Details) (Parenthetical) - shares | 9 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Jul. 31, 2020 | |
Common Class B [Member] | Zedge Inc [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Number of related party shares received | 42,282 | 42,282 |
Common Class B [Member] | Rafael Holdings Inc. [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Number of related party shares received | 28,320 | 27,806 |
Restricted Common Class B [Member] | Rafael Holdings Inc. [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Number of related party shares received | 261,894 |
Schedule of Equity Investment_2
Schedule of Equity Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Jul. 31, 2020 | |
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Current equity investments | $ 37,586 | $ 5,964 |
Noncurrent equity investments | 14,922 | 8,833 |
Other Marketable Equity Securities [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Current equity investments | 1,956 | |
Mutual Fund [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Current equity investments | 23,070 | 5,516 |
Hedge Funds [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Noncurrent equity investments | 3,462 | 4,783 |
Other Investments [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Noncurrent equity investments | 2,725 | 225 |
Common Class B [Member] | Zedge Inc [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Current equity investments | $ 562 | $ 59 |
Number of related party shares received | 42,282 | 42,282 |
Common Class B [Member] | Rafael Holdings Inc. [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Current equity investments | $ 1,171 | $ 389 |
Number of related party shares received | 28,320 | 27,806 |
Restricted Common Class B [Member] | Rafael Holdings Inc. [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Current equity investments | $ 10,827 | |
Number of related party shares received | 261,894 | |
Series C Preferred Stock [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Noncurrent equity investments | $ 2,343 | 3,825 |
Series A Preferred Stock [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Noncurrent equity investments | 2,920 | |
Series B Convertible Preferred Stock [Member] | ||
EquityInvestmentsDetailsScheduleOfEquityInvestmentsLineItemsLineItems [Line Items] | ||
Noncurrent equity investments | $ 3,472 |
Schedule of Carrying Value of E
Schedule of Carrying Value of Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Schedule Of Carrying Value Of Equity Investments | ||||
Balance, beginning of period | $ 2,223 | $ 4,345 | $ 4,109 | $ 3,919 |
Redemption for Visa mandatory release assessment | (1,870) | |||
Adjustment for observable transactions involving a similar investment from the same issuer | 404 | (412) | 388 | 14 |
Redemptions | (6) | (6) | ||
Impairments | ||||
Balance, end of the period | $ 2,621 | $ 3,933 | $ 2,621 | $ 3,933 |
Schedule of Unrealized (losses)
Schedule of Unrealized (losses) Gains for All Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Schedule Of Unrealized Losses Gains For All Equity Investments | ||||
Net gains (losses) recognized during the period on equity investments | $ 5,435 | $ (1,226) | $ 5,822 | $ (817) |
Less: net gains and losses recognized during the period on equity investments sold during the period | ||||
Unrealized gains (losses) recognized during the period on equity investments still held at the reporting date | $ 5,435 | $ (1,226) | $ 5,822 | $ (817) |
Summary of Changes in Equity Me
Summary of Changes in Equity Method Investments (Details) - USD ($) $ in Thousands | Feb. 02, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 |
Schedule of Capitalization, Equity [Line Items] | |||||
Purchase of series B convertible preferred stock | $ 4,000 | ||||
Equity in the net loss of investee | $ (528) | (528) | |||
Series B Convertible Preferred Stock [Member] | Equity Method Investee [Member] | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Balance, beginning of period | |||||
Purchase of series B convertible preferred stock | $ 4,000 | 4,000 | |||
Equity in the net loss of investee | (386) | ||||
Amortization of equity method basis difference | (142) | ||||
Balance, end of period | $ 3,472 | $ 3,472 |
Summary of Unaudited Statements
Summary of Unaudited Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 373,831 | $ 321,336 | $ 1,057,022 | $ 985,425 |
Selling, general and administrative | 55,148 | 52,630 | 161,591 | 159,853 |
Total costs and expenses | 360,554 | 317,310 | 1,018,527 | 978,301 |
Loss from operations and net loss | $ 13,872 | $ 3,792 | 40,045 | 3,722 |
Equity Method Investee [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 718 | |||
Direct cost of revenues | 804 | |||
Selling, general and administrative | 1,525 | |||
Total costs and expenses | 2,329 | |||
Loss from operations and net loss | $ (1,611) |
Equity Investments (Details Nar
Equity Investments (Details Narrative) - USD ($) | Feb. 02, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 15, 2021 | Dec. 07, 2020 | Sep. 24, 2020 | Jul. 31, 2020 | Jun. 30, 2016 |
Entity Listings [Line Items] | ||||||||||||
Payments to Acquire Equity Method Investments | $ 4,000,000 | |||||||||||
Investment propotional interest | $ 2,700,000 | |||||||||||
Estimated life of investment | This basis difference is being amortized over the 6-year estimated life of the customer list. | |||||||||||
Visa Series C Convertible Participating Preferred Stock [Member] | ||||||||||||
Entity Listings [Line Items] | ||||||||||||
Owned shares | 1,830 | |||||||||||
Convertible shares | 13.722 | |||||||||||
Carrying value of shares increased | $ 400,000 | $ 400,000 | 14,000 | |||||||||
Carrying value of shares decreased | $ 400,000 | |||||||||||
Visa Series A Convertible Participating Preferred Stock [Member] | ||||||||||||
Entity Listings [Line Items] | ||||||||||||
Owned shares | 125 | |||||||||||
Convertible shares | 6.861 | |||||||||||
Visa Series A Convertible Participating Preferred Stock [Member] | Visa Class A Common Stock [Member] | ||||||||||||
Entity Listings [Line Items] | ||||||||||||
Owned shares | 12,500 | |||||||||||
Series B Convertible Preferred Stock [Member] | Equity Method Investee [Member] | ||||||||||||
Entity Listings [Line Items] | ||||||||||||
Payments to Acquire Equity Method Investments | $ 4,000,000 | $ 4,000,000 | ||||||||||
Equity Method Investment, Ownership Percentage | 23.95% | |||||||||||
Rafael Holdings Inc. [Member] | Class B Common [Member] | ||||||||||||
Entity Listings [Line Items] | ||||||||||||
Owned shares | 218,245 | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 43,649 | 43,649 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 22.91 | |||||||||||
Investment Owned, at Fair Value | $ 5,000,000 | |||||||||||
Class of warrant, exercise price of warrants | $ 1,000,000 | |||||||||||
Rafael Holdings Inc. [Member] | Class B Common Stock [Member] | ||||||||||||
Entity Listings [Line Items] | ||||||||||||
Owned shares | 261,894 | 261,894 | ||||||||||
Investment Owned, at Fair Value | $ 4,600,000 | |||||||||||
Shares Issued, Price Per Share | $ 22.91 | |||||||||||
Rafael Holdings Inc. [Member] | Class B Common Stock [Member] | Forecast [Member] | ||||||||||||
Entity Listings [Line Items] | ||||||||||||
Owned shares | 43,649 | 218,245 | ||||||||||
Rafael Holdings Inc. [Member] | Warrants Class B Common Stock [Member] | ||||||||||||
Entity Listings [Line Items] | ||||||||||||
Investment Owned, at Fair Value | $ 400,000 |
Schedule of Balance of Assets M
Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | $ 16,852 | $ 18,363 | ||
Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | 16,852 | 18,363 | ||
Equity investments included in current assets | 37,586 | 5,964 | ||
Equity investments included in noncurrent assets | 5,263 | 3,825 | ||
Total | 59,701 | 28,152 | ||
Contingent consideration included in other noncurrent liabilities | (795) | (396) | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | [1] | 1,644 | 2,498 | |
Equity investments included in current assets | [1] | 26,759 | 5,964 | |
Equity investments included in noncurrent assets | [1] | |||
Total | [1] | 28,403 | 8,462 | |
Contingent consideration included in other noncurrent liabilities | [1] | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | [2] | 15,208 | 15,865 | |
Equity investments included in current assets | [2] | 10,827 | ||
Equity investments included in noncurrent assets | [2] | 2,920 | ||
Total | [2] | 28,955 | 15,865 | |
Contingent consideration included in other noncurrent liabilities | [2] | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | [3] | |||
Equity investments included in current assets | [3] | |||
Equity investments included in noncurrent assets | [3] | 2,343 | 3,825 | |
Total | [3] | 2,343 | 3,825 | |
Contingent consideration included in other noncurrent liabilities | $ (795) | [3] | $ (396) | |
[1] | quoted prices in active markets for identical assets or liabilities | |||
[2] | observable inputs other than quoted prices in active markets for identical assets and liabilities | |||
[3] | no observable pricing inputs in the market |
Schedule of Assets Measured at
Schedule of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||||
Balance, beginning of period | $ 2,319 | $ 4,045 | $ 3,825 | $ 3,619 |
Purchase of Rafael Holdings, Inc. warrant | 354 | |||
Exercise of Rafael Holdings, Inc. warrant | (380) | (380) | ||
Redemption for Visa mandatory release assessment | (1,870) | |||
Total gains (losses) recognized in "Other income (expense), net" | 404 | (412) | 414 | 14 |
Balance, end of period | 2,343 | 3,633 | 2,343 | 3,633 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period |
Schedule of Liabilities Measure
Schedule of Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||||
Balance, beginning of period | $ 799 | $ 370 | $ 396 | |
Transfer into Level 3 from acquisitions (see Note 9) | 393 | 375 | ||
Total (gains) losses included in "Foreign currency translation adjustment" | (4) | (5) | 6 | (10) |
Balance, end of period | 795 | 365 | 795 | 365 |
Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2021 | Jul. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Investment in hedge funds | $ 3.5 | $ 4.8 |
Schedule of Acquisition Date Fa
Schedule of Acquisition Date Fair Value of Consideration (Details) - USD ($) $ in Thousands | Dec. 03, 2020 | Dec. 11, 2019 | Apr. 30, 2021 | Apr. 30, 2020 |
Business Acquisition [Line Items] | ||||
Cash paid, net of cash acquired | $ 2,656 | $ 450 | ||
IDT International Telecom, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 2,732 | |||
Cash acquired | (344) | |||
Cash paid, net of cash acquired | 2,388 | |||
Contingent consideration | 393 | |||
Total fair value of consideration, net of cash acquired | $ 2,781 | |||
Net2phone, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 450 | |||
Contingent consideration | 375 | |||
Total fair value of consideration | $ 825 |
Schedule of Impact of Acquisiti
Schedule of Impact of Acquisition's Purchase Price Allocations on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jul. 31, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 14,943 | $ 12,858 |
IDT International Telecom, Inc [Member] | ||
Business Acquisition [Line Items] | ||
Trade accounts receivable | 656 | |
Prepaid expenses | 1,644 | |
Property, plant and equipment | 75 | |
Goodwill | 2,025 | |
Customer relationships (15-year useful lives) | 1,960 | |
Tradenames (20-year useful lives) | 440 | |
Deferred income tax assets | 197 | |
Other assets | 30 | |
Trade accounts payable | (1,306) | |
Accrued expenses | (423) | |
Other current liabilities | (329) | |
Noncontrolling interests | (2,188) | |
Net assets excluding cash acquired | $ 2,781 |
Schedule of Impact of the Acqui
Schedule of Impact of the Acquisition's Purchase Price Allocations on Consolidated Balance Sheet (Details) (Parenthetical) | 9 Months Ended |
Apr. 30, 2021 | |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 15 years |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 20 years |
Acquisitions (Details Narrative
Acquisitions (Details Narrative) - USD ($) | Mar. 22, 2021 | Apr. 30, 2021 | Dec. 03, 2020 | Dec. 11, 2019 |
IDT International Telecom, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquired percentage | 51.00% | |||
Business Combination, Contingent Consideration Arrangements, Description | The contingent consideration of $0.5 million will be paid (a) no later than November 30, 2021 if the acquired company generates EBITDA (as defined in the purchase agreement) of no less than $1.0 million between October 1, 2020 and September 30, 2021; or (b) no later than November 30, 2022 if the acquired company generates EBITDA of no less than $1.0 million between October 1, 2021 and September 30, 2022. | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 500,000 | |||
Option of shares value | $ 300,000 | |||
IDT International Telecom, Inc [Member] | Noncontrolling Interest [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase of option shares reduction | 200,000 | |||
IDT International Telecom, Inc [Member] | Additional Paid-in Capital [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase of option shares reduction | $ 21,000 | |||
IDT International Telecom, Inc [Member] | Put/Call Option Agreement [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquired percentage | 5.00% | |||
Net2phone, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquired percentage | 100.00% |
Schedule of Other Operating Gai
Schedule of Other Operating Gain (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Corporate-Straight Path Communications Inc. class action insurance claims net of legal fees/(legal fees net of insurance claims) | $ 605 | $ 152 | $ 601 | $ (269) |
net2phone-UCaaS-other, net | (100) | (63) | ||
Fintech-money transfer settlement | 45 | 45 | ||
Traditional Communications-gain from sale of rights under class action lawsuit | 2,000 | |||
Traditional Communications-net2phone indemnification claim | (55) | (386) | (442) | (920) |
Traditional Communications-Carrier Services settlement | (554) | |||
Traditional Communications-accrual for non-income related taxes related to a foreign subsidiary | (2,150) | |||
Total other operating gain (expense), net | $ 595 | $ (234) | $ 1,550 | $ (3,402) |
Other Operating Gain (Expense_3
Other Operating Gain (Expense), Net (Details Narrative) - USD ($) $ in Millions | Dec. 21, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 |
Payment Card Interchange Fee and Merchant Discount Antitrust Litigation [Member] | |||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||
Proceed from sale to third parties | $ 2 | ||||
Straight Path [Member] | |||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||
Legal Fees | $ 0.3 | $ 1.2 | $ 2 | $ 2.5 | |
Unusual or Infrequent Item, or Both, Insurance Proceeds | $ 0.9 | $ 1.4 | $ 2.6 | $ 2.2 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) $ in Thousands | May 27, 2021 | Dec. 31, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Dec. 31, 2020 | Apr. 30, 2021 |
Class of Stock [Line Items] | ||||||
Remaining shares available for repurchase | 5,800,000 | 5,800,000 | ||||
Proceeds from exercise of stock options | $ 686 | $ 276 | ||||
Number of common stock options exercise | 81,041 | 32,551 | ||||
Net2phone, Inc. [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of restricted shares issued | 50 | |||||
Common stock outstanding percentage | 5.00% | |||||
Grant of restricted equity description | The restricted shares will vest if: (a) for any fiscal quarter of net2phone 2.0 between November 1, 2020 and October 31, 2023, net2phone 2.0 records subscription revenue that is at least $18 million, and (b) as of October 31, 2023, the valuation of net2phone 2.0 is $100 million or more. The restricted shares will also vest in the event, prior to October 31, 2023, net2phone 2.0 or its assets are sold at an equity valuation and on a cash-free basis of $100 million or more, regardless of whether the revenue threshold was satisfied prior thereto. The restricted shares entitle each grantee to proceeds only on a sale, spin-off, initial public offering, or other monetization of net2phone 2.0 and have protection from dilution for the first $15 million invested in the net2phone 2.0 following the grant. | |||||
Aggregate estimated fair value on grant date recognized over the vesting period | $ 200 | $ 200 | ||||
Class B Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of shares | 463,792 | 40,763 | ||||
Aggregate purchase price of repurchase | $ 2,800 | $ 200 | ||||
Class B Common Stock [Member] | DSUs [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of common stock issued | 283,838 | |||||
Number of common stock vested | 19,919 | |||||
Number of common stock unvested | 154,169 | |||||
Class B Common Stock [Member] | Employees [Member] | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of shares | 109,381 | 37,348 | ||||
Aggregate purchase price of repurchase | $ 1,300 | $ 300 | ||||
Common Class B [Member] | Subsequent Event [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of newly issued shares, shares | 35,839 | |||||
Number of newly issued shares | $ 1,000 | |||||
Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of repurchase shares authorised | 8,000,000 | 8,000,000 |
Schedule of Weighted-average Nu
Schedule of Weighted-average Number of Shares Used in Calculation of Basic and Diluted Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average number of shares | 25,530,000 | 26,371,000 | 25,475,000 | 26,323,000 |
Effect of dilutive securities: Stock options | 295,000 | 101,000 | ||
Effect of dilutive securities: Non-vested restricted Class B common stock | 311,000 | 135,000 | 327,000 | |
Diluted weighted-average number of shares | 26,136,000 | 26,506,000 | 25,903,000 | 26,323,000 |
Schedule of Shares Excluded fro
Schedule of Shares Excluded from the Diluted Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 1,126,000 | 713,000 | 1,646,000 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 1,126,000 | 713,000 | 1,126,000 | |
Non-vested Restricted Class B Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 520,000 |
Schedule of Accumulated Balance
Schedule of Accumulated Balances for Each Classification of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (7,410) | |||
Other comprehensive loss attributable to IDT Corporation | $ 567 | $ (563) | (980) | $ (2,280) |
Ending balance | (8,390) | (8,390) | ||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 42 | |||
Other comprehensive loss attributable to IDT Corporation | (163) | |||
Ending balance | (121) | (121) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (7,452) | |||
Other comprehensive loss attributable to IDT Corporation | (817) | |||
Ending balance | $ (8,269) | $ (8,269) |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Millions | Apr. 30, 2021 | Jul. 31, 2020 |
CommitmentsAndContingenciesDetailsLineItems [Line Items] | ||
Accrued expenses | $ 41.6 | $ 40.8 |
Purchase commitment | 3.4 | |
Performance bonds outstanding | 19.8 | |
Restricted cash and cash equivalents | 15.3 | $ 11 |
Federal Telecommunications Relay Services Fund [Member] | ||
CommitmentsAndContingenciesDetailsLineItems [Line Items] | ||
Regulatory fees audit | 2.9 | |
Universal Service Fund [Member] | ||
CommitmentsAndContingenciesDetailsLineItems [Line Items] | ||
Regulatory fees audit | $ 1.8 |
Schedule of Other Income (Expen
Schedule of Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transaction (losses) gains | $ (1,069) | $ (774) | $ 396 | $ 175 |
Equity in the net loss of investee | (528) | (528) | ||
Write-off of tax assets related to prior periods | (129) | (742) | ||
Gain (loss) on investments | 5,435 | (1,226) | 5,822 | (817) |
Other | (23) | (15) | (82) | 24 |
Total other income (expense), net | $ 3,815 | $ (2,144) | $ 5,608 | $ (1,360) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Apr. 30, 2021 | Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Change in valuation allowance | $ 24 | $ 24 |
Revolving Credit Facility_Sub_2
Revolving Credit Facility—Subsequent Event (Details Narrative) - Revolving Credit Facility [Member] - Subsequent Event [Member] - TD Bank [Member] $ in Millions | May 17, 2021USD ($) |
Subsequent Event [Line Items] | |
Line of credit, maximum borrowing capacity | $ 25 |
Line of credit, description | The principal outstanding bears interest per annum at the Intercontinental Exchange Benchmark Administration Ltd. LIBO rate multiplied by the Regulation D maximum reserve requirement plus 125 to 175 basis points, depending upon IDT Telecom’s leverage ratio as computed for the most recent fiscal quarter. Interest is payable monthly, and all outstanding principal and any accrued and unpaid interest is due in May 2024. IDT Telecom pays a quarterly unused commitment fee on the average daily balance of the unused portion of the $25.0 million commitment of 30 to 85 basis points, depending upon IDT Telecom’s leverage ratio as computed for the most recent fiscal quarter. IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain targets based on financial ratios during the term of the revolving credit facility. IDT Telecom was in compliance with all of the covenants as of the date of this Quarterly Report on Form 10-Q. |