Cover
Cover - shares | 6 Months Ended | |
Jan. 31, 2023 | Mar. 08, 2023 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jan. 31, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --07-31 | |
Entity File Number | 1-16371 | |
Entity Registrant Name | IDT CORPORATION | |
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 | |
Title of 12(b) Security | Class B common stock, par value $.01 per share | |
Trading Symbol | IDT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 1,574,326 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 23,952,533 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 117,811 | $ 98,352 |
Restricted cash and cash equivalents | 89,867 | 91,210 |
Debt securities | 29,777 | 22,303 |
Equity investments | 9,213 | 17,091 |
Trade accounts receivable, net of allowance for doubtful accounts of $6,255 at January 31, 2023 and $5,882 at July 31, 2022 | 47,605 | 64,315 |
Disbursement prefunding | 28,098 | 21,057 |
Prepaid expenses | 14,611 | 17,526 |
Other current assets | 36,559 | 30,773 |
Total current assets | 373,541 | 362,627 |
Property, plant, and equipment, net | 38,303 | 36,866 |
Goodwill | 26,547 | 26,380 |
Other intangibles, net | 8,985 | 9,609 |
Equity investments | 6,687 | 7,426 |
Operating lease right-of-use assets | 6,894 | 7,210 |
Deferred income tax assets, net | 28,913 | 36,701 |
Other assets | 10,641 | 10,275 |
Total assets | 500,511 | 497,094 |
Current liabilities: | ||
Trade accounts payable | 23,229 | 29,080 |
Accrued expenses | 110,580 | 117,109 |
Deferred revenue | 34,998 | 36,531 |
Customer deposits | 86,899 | 85,764 |
Other current liabilities | 32,215 | 36,588 |
Total current liabilities | 287,921 | 305,072 |
Operating lease liabilities | 4,243 | 4,606 |
Other liabilities | 4,944 | 6,588 |
Total liabilities | 297,108 | 316,266 |
Redeemable noncontrolling interest | 10,389 | 10,191 |
IDT Corporation stockholders’ equity: | ||
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued | ||
Additional paid-in capital | 298,649 | 296,005 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 3,830 and 3,613 shares of Class B common stock at January 31, 2023 and July 31, 2022, respectively | (106,906) | (101,565) |
Accumulated other comprehensive loss | (13,711) | (11,305) |
Retained earnings (accumulated deficit) | 9,795 | (15,830) |
Total IDT Corporation stockholders’ equity | 188,138 | 167,615 |
Noncontrolling interests | 4,876 | 3,022 |
Total equity | 193,014 | 170,637 |
Total liabilities, redeemable noncontrolling interest, and equity | 500,511 | 497,094 |
Common Class A [Member] | ||
IDT Corporation stockholders’ equity: | ||
Common stock, value | 33 | 33 |
Common Class B [Member] | ||
IDT Corporation stockholders’ equity: | ||
Common stock, value | $ 278 | $ 277 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 6,255 | $ 5,882 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000 | 35,000 |
Common stock, shares issued | 3,272 | 3,272 |
Common stock, shares outstanding | 1,574 | 1,574 |
Treasury stock shares | 1,698 | 1,698 |
Common Class B [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 27,782 | 27,725 |
Common stock, shares outstanding | 23,952 | 24,112 |
Treasury stock shares | 3,830 | 3,613 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | ||
Income Statement [Abstract] | |||||
Revenues | $ 313,936 | $ 337,058 | $ 635,752 | $ 707,141 | |
Costs and expenses: | |||||
Direct cost of revenues (exclusive of depreciation and amortization) | 222,394 | 257,325 | 454,031 | 548,950 | |
Selling, general and administrative | [1] | 68,153 | 61,070 | 134,017 | 121,177 |
Depreciation and amortization | 5,012 | 4,378 | 9,801 | 8,825 | |
Severance | 213 | 29 | 312 | 67 | |
Total costs and expenses | 295,772 | 322,802 | 598,161 | 679,019 | |
Other operating gain (expense), net (see Note 10) | 17 | (442) | 816 | (530) | |
Income from operations | 18,181 | 13,814 | 38,407 | 27,592 | |
Interest income, net | 810 | 119 | 1,320 | 132 | |
Other income (expense), net | 1,613 | (2,949) | (2,229) | (19,165) | |
Income before income taxes | 20,604 | 10,984 | 37,498 | 8,559 | |
Provision for income taxes | (5,295) | (2,734) | (9,634) | (2,648) | |
Net income | 15,309 | 8,250 | 27,864 | 5,911 | |
Net income attributable to noncontrolling interests | (686) | (763) | (2,239) | (896) | |
Net income attributable to IDT Corporation | $ 14,623 | $ 7,487 | $ 25,625 | $ 5,015 | |
Earnings per share attributable to IDT Corporation common stockholders: | |||||
Basic | $ 0.57 | $ 0.29 | $ 1 | $ 0.20 | |
Diluted | $ 0.57 | $ 0.28 | $ 1 | $ 0.19 | |
Weighted-average number of shares used in calculation of earnings per share: | |||||
Basic | 25,510 | 25,652 | 25,556 | 25,609 | |
Diluted | 25,538 | 26,542 | 25,577 | 26,580 | |
[1]Stock-based compensation included in selling, general and administrative expenses |
Consolidated Statements of In_2
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Statement [Abstract] | ||||
Share based compensation | $ 1,286 | $ 310 | $ 1,858 | $ 595 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Statement [Abstract] | ||||
Net income | $ 15,309 | $ 8,250 | $ 27,864 | $ 5,911 |
Other comprehensive loss: | ||||
Change in unrealized loss on available-for-sale securities | 188 | (212) | (34) | (323) |
Foreign currency translation adjustments | (2,227) | (1,650) | (2,372) | (582) |
Other comprehensive loss | (2,039) | (1,862) | (2,406) | (905) |
Comprehensive income | 13,270 | 6,388 | 25,458 | 5,006 |
Comprehensive (income) attributable to noncontrolling interests | (686) | (763) | (2,239) | (896) |
Comprehensive income attributable to IDT Corporation | $ 12,584 | $ 5,625 | $ 23,219 | $ 4,110 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] Common Class A [Member] | Common Stock [Member] Common Class B [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Beginning balance, value at Jul. 31, 2021 | $ 166,614 | $ 33 | $ 264 | $ 278,021 | $ (60,413) | $ (10,183) | $ (42,858) | $ 1,750 |
Stock-based compensation | 595 | 3 | 592 | |||||
Distributions to noncontrolling interests | (198) | (198) | ||||||
Other comprehensive loss | (905) | (905) | ||||||
Net income | 5,848 | 5,015 | 833 | |||||
Ending balance, value at Jan. 31, 2022 | 162,980 | 33 | 267 | 278,613 | (69,387) | (11,088) | (37,843) | 2,385 |
Restricted Class B common stock purchased from employees | (8,974) | (8,974) | ||||||
Beginning balance, value at Oct. 31, 2021 | 165,298 | 33 | 264 | 278,306 | (60,439) | (9,226) | (45,330) | 1,690 |
Stock-based compensation | 310 | 3 | 307 | |||||
Distributions to noncontrolling interests | (15) | (15) | ||||||
Other comprehensive loss | (1,862) | (1,862) | ||||||
Net income | 8,197 | 7,487 | 710 | |||||
Ending balance, value at Jan. 31, 2022 | 162,980 | 33 | 267 | 278,613 | (69,387) | (11,088) | (37,843) | 2,385 |
Restricted Class B common stock purchased from employees | (8,948) | (8,948) | ||||||
Beginning balance, value at Jul. 31, 2022 | 170,637 | 33 | 277 | 296,005 | (101,565) | (11,305) | (15,830) | 3,022 |
Exercise of stock options | 172 | 172 | ||||||
Stock-based compensation | 1,858 | 1 | 1,857 | |||||
Distributions to noncontrolling interests | (187) | (187) | ||||||
Other comprehensive loss | (2,406) | (2,406) | ||||||
Net income | 27,666 | 25,625 | 2,041 | |||||
Ending balance, value at Jan. 31, 2023 | 193,014 | 33 | 278 | 298,649 | (106,906) | (13,711) | 9,795 | 4,876 |
Repurchases of Class B common stock through repurchase program | (5,006) | (5,006) | ||||||
Restricted Class B common stock purchased from employees | (335) | (335) | ||||||
Stock issued to certain executive officers for bonus payments | 615 | 615 | ||||||
Beginning balance, value at Oct. 31, 2022 | 178,439 | 33 | 278 | 297,191 | (106,906) | (11,672) | (4,828) | 4,343 |
Exercise of stock options | 172 | 172 | ||||||
Stock-based compensation | 1,286 | 1,286 | ||||||
Distributions to noncontrolling interests | (88) | (88) | ||||||
Other comprehensive loss | (2,039) | (2,039) | ||||||
Net income | 15,244 | 14,623 | 621 | |||||
Ending balance, value at Jan. 31, 2023 | $ 193,014 | $ 33 | $ 278 | $ 298,649 | $ (106,906) | $ (13,711) | $ 9,795 | $ 4,876 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Operating activities | ||
Net income | $ 27,864 | $ 5,911 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,801 | 8,825 |
Deferred income taxes | 7,788 | 1,683 |
Provision for doubtful accounts receivable | 915 | 1,289 |
Net unrealized loss from marketable securities | 2,349 | 16,242 |
Stock-based compensation | 1,858 | 595 |
Other | 1,359 | 2,850 |
Change in assets and liabilities: | ||
Trade accounts receivable | 16,298 | (8,045) |
Disbursement prefunding, prepaid expenses, other current assets, and other assets | (11,492) | (8,551) |
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities | (19,344) | (6,313) |
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank) | 15 | (1,862) |
Deferred revenue | (1,795) | (960) |
Net cash provided by operating activities | 35,616 | 11,664 |
Investing activities | ||
Capital expenditures | (10,578) | (8,991) |
Purchase of convertible preferred stock in equity method investment | (1,051) | |
Payments for acquisitions, net of cash acquired | (100) | |
Purchases of debt securities and equity investments | (28,129) | (10,825) |
Proceeds from maturities and sales of debt securities and redemptions of equity investments | 27,531 | 6,068 |
Net cash used in investing activities | (11,176) | (14,899) |
Financing activities | ||
Distributions to noncontrolling interests | (187) | (198) |
Proceeds from other liabilities | 300 | 2,301 |
Repayment of other liabilities. | (2,014) | (1,291) |
Proceeds from borrowings under revolving credit facility | 2,383 | 2,488 |
Repayment of borrowings under revolving credit facility. | (2,383) | (2,488) |
Proceeds from sale of redeemable equity in subsidiary | 10,000 | |
Proceeds from exercise of stock options | 172 | |
Repurchases of Class B common stock | (5,341) | (8,974) |
Net cash (used in) provided by financing activities | (7,070) | 1,838 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | 746 | (4,967) |
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents | 18,116 | (6,364) |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | 189,562 | 226,916 |
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | 207,678 | 220,552 |
Supplemental schedule of non-cash financing activities | ||
Stock issued to certain executive officers for bonus payments | $ 615 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jan. 31, 2023 | |
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 six months ended January 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2023. The balance sheet at July 31, 2022 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, 2022, 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 2023 refers to the fiscal year ending July 31, 2023). |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 2— Business Segment Information As of August 1, 2022, the Company revised its reportable business segments primarily to reflect the growth of its financial technology businesses and their increased contributions to the Company’s consolidated results. The Company’s four 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 is comprised of BOSS Money, a provider of international money remittance and related value/payment transfer services, as well as other, significantly smaller financial services businesses, including Leaf Global Fintech Corporation (“Leaf”), a provider of digital wallet services in emerging markets, the Company’s variable interest entity (“VIE”) that operates money transfer businesses (see Note 9), and IDT Financial Services Limited (“IDT Financial Services”), the Company’s Gibraltar-based bank. The NRS segment is an operator of a nationwide point of sale (“POS”) network providing independent retailers with store management software with credit, debit, and other electronic payment processing, as well as with other ancillary merchant services. NRS’ POS platform provides marketers with digital out-of-home advertising and transaction data. The net2phone segment is comprised of net2phone’s cloud communications offerings. 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 Canada, and IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide. Traditional Communications also includes other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode. Corporate costs mainly 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, 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 National Retail Solutions net2phone Traditional Communications Corporate Total Three Months Ended January 31, 2023 Revenues $ 20,321 $ 19,822 $ 17,794 $ 255,999 $ — $ 313,936 (Loss) income from operations (806 ) 5,374 (575 ) 17,008 (2,820 ) 18,181 Three Months Ended January 31, 2022 Revenues $ 14,599 $ 10,620 $ 13,535 $ 298,304 $ — $ 337,058 (Loss) income from operations (2,271 ) 2,058 (2,866 ) 19,897 (3,004 ) 13,814 Six Months Ended January 31, 2023 Revenues $ 40,208 $ 39,135 $ 34,744 $ 521,665 $ — $ 635,752 Income (loss) from operations 706 10,605 (1,631 ) 34,271 (5,544 ) 38,407 Six Months Ended January 31, 2022 Revenues $ 28,829 $ 20,692 $ 26,448 $ 631,172 $ — $ 707,141 (Loss) income from operations (3,866 ) 3,405 (7,059 ) 40,225 (5,113 ) 27,592 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jan. 31, 2023 | |
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 Money, NRS, and net2phone are technology-driven, synergistic businesses that leverage the Company’s core assets. BOSS Money and NRS’ revenues are primarily recognized at a point in time, and net2phone’s revenue is mainly 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 IDT Global. 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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) BOSS Money $ 17,649 $ 12,029 $ 35,203 $ 24,123 Other 2,672 2,570 5,005 4,706 Total Fintech 20,321 14,599 40,208 28,829 National Retail Solutions 19,822 10,620 39,135 20,692 net2phone 17,794 13,535 34,744 26,448 Mobile Top-Up 106,127 116,246 215,176 244,731 BOSS Revolution Calling 82,831 99,951 169,083 205,920 IDT Global 58,631 73,117 120,242 162,312 Other 8,410 8,990 17,164 18,209 Total Traditional Communications 255,999 298,304 521,665 631,172 Total $ 313,936 $ 337,058 $ 635,752 $ 707,141 The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location: Schedule of Revenues Disaggregated by Geographic Region (in thousands) Fintech National Retail Solutions net2phone Traditional Communications Total Three Months Ended January 31, 2023 United States $ 19,612 $ 19,822 $ 9,514 $ 176,424 $ 225,372 Outside the United States: United Kingdom — — — 69,000 69,000 Other 709 — 8,280 10,575 19,564 Total outside the United States 709 — 8,280 79,575 88,564 Total $ 20,321 $ 19,822 $ 17,794 $ 255,999 $ 313,936 (in thousands) Fintech National Retail Solutions net2phone Traditional Communications Total Three Months Ended January 31, 2022 United States $ 14,166 $ 10,620 $ 7,157 $ 209,065 $ 241,008 Outside the United States: United Kingdom — — — 77,337 77,337 Other 433 — 6,378 11,902 18,713 Total outside the United States 433 — 6,378 89,239 96,050 Total $ 14,599 $ 10,620 $ 13,535 $ 298,304 $ 337,058 (in thousands) Fintech National Retail Solutions net2phone Traditional Communications Total Six Months Ended January 31, 2023 United States $ 38,867 $ 39,135 $ 18,316 $ 361,262 $ 457,580 Outside the United States: United Kingdom — — — 137,940 137,940 Other 1,341 — 16,428 22,463 40,232 Total outside the United States 1,341 — 16,428 160,403 178,172 Total $ 40,208 $ 39,135 $ 34,744 $ 521,665 $ 635,752 (in thousands) Fintech National Retail Solutions net2phone Traditional Communications Total Six Months Ended January 31, 2022 United States $ 27,966 $ 20,692 $ 13,981 $ 445,992 $ 508,631 Outside the United States: United Kingdom — — — 159,080 159,080 Other 863 — 12,467 26,100 39,430 Total outside the United States 863 — 12,467 185,180 198,510 Total $ 28,829 $ 20,692 $ 26,448 $ 631,172 $ 707,141 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 January 31, 2023 and July 31, 2022 primarily 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. The Company would record a contract asset when revenue is recognized in advance of its 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 Company’s contract liability balance is primarily 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 Liabilities Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 17,072 $ 20,152 $ 21,205 $ 24,378 Deferred Customer Contract Acquisition and Fulfillment Costs The Company recognizes its incremental costs of obtaining a contract with a customer that it expects to recover as an asset. The Company’s incremental costs of obtaining a contract with a customer are sales commissions paid to employees and third parties on sales to end users. If the amortization period would be one year or less for the asset that would be recognized from deferring these costs, the Company applies the practical expedient whereby the Company charges these costs to expense when incurred. For net2phone sales, the Company defers these costs and amortizes them over the expected customer relationship period when it is expected to exceed one year. The Company’s costs to fulfill its contracts do not meet the criteria to be recognized as an asset, therefore these costs are charged to expense as incurred. The Company’s deferred customer contract acquisition costs were as follows: Schedule of Deferred Customer Contract Acquisition Costs January 31, 2023 July 31, 2022 (in thousands) Deferred customer contract acquisition costs included in “Other current assets” $ 4,265 $ 4,085 Deferred customer contract acquisition costs included in “Other assets” 3,465 3,469 Total $ 7,730 $ 7,554 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 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Amortization of deferred customer contract acquisition costs $ 1,228 $ 1,030 $ 2,405 $ 2,042 |
Leases
Leases | 6 Months Ended |
Jan. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Leases | Note 4— Leases The Company’s leases primarily consist of operating leases for office space. These leases have remaining terms from less than one year five years net2phone is the lessee under equipment leases that are classified as finance leases. The assets and liabilities related to these finance leases are not material to the Company’s consolidated balance sheets. The Company leases office and parking space in a building and parking garage located at 520 Broad Street, Newark, New Jersey that was previously owned by the Company’s former subsidiary, Rafael Holdings, Inc. (“Rafael”). On August 22, 2022, Rafael sold the building and parking garage to an unrelated third party. The Company’s lease in that building continues with the new owner. The Company leases office space in Israel from Rafael. Howard S. Jonas, the Chairman of the Company (an executive officer position) and the Chairman of the Company’s Board of Directors, is also the Chairman of the Board of Directors and Executive Chairman of Rafael. The Newark lease expires in April 2025 and the Israel lease expires in July 2025. 32,000 0.2 0.5 0.9 Supplemental disclosures related to the Company’s operating leases were as follows: Schedule of Supplemental Disclosures Related to the Company's Operating Leases Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Operating lease cost $ 799 $ 687 $ 1,566 $ 1,387 Short-term lease cost 259 253 528 600 Total lease cost $ 1,058 $ 940 $ 2,094 $ 1,987 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 824 $ 670 $ 1,588 $ 1,365 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 824 670 1,588 1,365 Schedule of Supplemental Disclosures Related Weighted Average Operating Leases January 31, 2023 July 31, 2022 Weighted-average remaining lease term-operating leases 2.7 2.8 Weighted-average discount rate-operating leases 3.6 % 3.0 % In the six months ended January 31, 2023 and 2022, the Company obtained right-of-use assets of $ 1.7 0.7 The Company’s aggregate operating lease liability was as follows: Schedule of Aggregate Operating Lease Liability January 31, 2023 July 31, 2022 (in thousands) Operating lease liabilities included in “Other current liabilities” $ 2,917 $ 2,899 Operating lease liabilities included in noncurrent liabilities 4,243 4,606 Total $ 7,160 $ 7,505 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 January 31: 2024 $ 3,135 2025 2,739 2026 1,076 2027 454 2028 137 Thereafter — Total lease payments 7,541 Less imputed interest (381 ) Total operating lease liabilities $ 7,160 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | 6 Months Ended |
Jan. 31, 2023 | |
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 January 31, 2023 July 31, 2022 (in thousands) Cash and cash equivalents $ 117,811 $ 98,352 Restricted cash and cash equivalents 89,867 91,210 Total cash, cash equivalents, and restricted cash and cash equivalents $ 207,678 $ 189,562 At January 31, 2023 and July 31, 2022, restricted cash and cash equivalents included $ 87.7 86.6 Company Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services, Inc. and IDT Payment Services of New York, LLC, which provide the Company’s international money transfer services in the United States, as substantially restricted and unavailable for other purposes. At January 31, 2023 and July 31, 2022, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $ 31.2 17.3 |
Debt Securities
Debt Securities | 6 Months Ended |
Jan. 31, 2023 | |
Debt Securities, Trading and Available-for-Sale [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) January 31, 2023: U.S. Treasury bills and notes $ 23,854 $ 4 $ (94 ) $ 23,764 Government sponsored enterprises notes 2,512 — (4 ) 2,508 Corporate bonds 3,991 1 (487 ) 3,505 Total $ 30,357 $ 5 $ (585 ) $ 29,777 July 31, 2022: Certificates of deposit* $ 2,000 $ — $ (14 ) $ 1,986 U.S. Treasury bills and notes 13,848 — (114 ) 13,734 Corporate bonds 3,966 1 (416 ) 3,551 Municipal bonds 3,035 — (3 ) 3,032 Total $ 22,849 $ 1 $ (547 ) $ 22,303 * 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 $ 16.1 2.2 27.5 6.1 The contractual maturities of the Company’s available-for-sale debt securities at January 31, 2023 were as follows: Schedule of Contractual Maturities of Available-for-sale Debt Securities Fair Value (in thousands) Within one year $ 22,521 After one year through five years 5,973 After five years through ten years 1,236 After ten years 47 Total $ 29,777 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) January 31, 2023: U.S. Treasury bills and notes $ 94 $ 11,315 Government sponsored enterprises notes 4 2,508 Corporate bonds 487 3,450 Total $ 585 $ 17,273 July 31, 2022: Certificates of deposit $ 14 $ 1,986 U.S. Treasury bills and notes 114 13,734 Corporate bonds 416 3,514 Municipal bonds 3 2,412 Total $ 547 $ 21,646 The following available-for-sale debt securities included in the tables above were in a continuous unrealized loss position for 12 months or longer: Schedule of Continuous Unrealized Loss Position for 12 Months or Longer Unrealized Losses Fair Value (in thousands) January 31, 2023: U.S. Treasury bills and notes $ 87 $ 874 Corporate bonds 475 3,286 Total $ 562 $ 4,160 July 31, 2022: U.S. Treasury bills and notes $ 72 $ 892 Corporate bonds 234 1,731 Total $ 306 $ 2,623 At January 31, 2023 and July 31, 2022, the Company did not intend to sell any of the debt securities included in the table above, and it is not more likely than not that the Company will be required to sell any of these securities before recovery of the unrealized losses, which may be at maturity. |
Equity Investments
Equity Investments | 6 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Investments | Note 7— Equity Investments Equity investments consist of the following: Schedule of Equity Investments January 31, 2023 July 31, 2022 (in thousands) Zedge, Inc. Class B common stock, 42,282 $ 93 $ 117 Rafael Holdings, Inc. Class B common stock, 278,810 290,214 574 586 Other marketable equity securities 1,872 4,089 Fixed income mutual funds 6,674 12,299 Current equity investments $ 9,213 $ 17,091 Visa Inc. Series C Convertible Participating Preferred Stock (“Visa Series C Preferred”) $ 1,225 $ 1,132 Visa Inc. Series A Convertible Participating Preferred Stock (“Visa Series A Preferred”) — 1,230 Series B and Series C convertible preferred stock—equity method investment — 1,001 Hedge funds 3,137 3,238 Other 2,325 825 Noncurrent equity investments $ 6,687 $ 7,426 The Company received the shares of Zedge, Inc. (“Zedge”) Class B common stock and 28,320 261,894 11,404 On July 28, 2022, in connection with Visa Inc.’s second mandatory release assessment, the Company received 58 3.645 58 5,800 1.3 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 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Balance, beginning of period $ 1,374 $ 2,397 $ 1,401 $ 2,743 Adjustment for observable transactions involving a similar investment from the same issuer 120 142 93 (204 ) Impairments — — — — Balance, end of the period $ 1,494 $ 2,539 $ 1,494 $ 2,539 The Company increased the carrying value of the shares of Visa Series C Preferred it held by $ 0.1 0.2 Unrealized gains and losses for all equity investments measured at fair value included the following: Schedule of Unrealized (losses) Gains for All Equity Investments Three Months Ended January 31, Six Months Ended January 31, 2023 2 022 2023 2022 (in thousands) Net losses recognized during the period on equity investments $ (228 ) $ (2,952 ) $ (2,169 ) $ (17,446 ) Less: net gains recognized during the period on equity investments sold during the period 22 25 18 10 Unrealized losses recognized during the period on equity investments still held at the reporting date $ (250 ) $ (2,977 ) $ (2,187 ) $ (17,456 ) The unrealized gains and losses for all equity investments measured at fair value in the table above included the following: Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Unrealized gains (losses) recognized during the period on equity investments: Rafael Class B common stock $ 82 $ (993 ) $ 9 $ (13,486 ) Zedge Class B common stock $ 3 $ (168 ) $ (24 ) $ (330 ) Unrealized losses recognized during the period on equity investments still held at the reporting date $ (250 ) $ (2,977 ) $ (2,187 ) $ (17,456 ) Equity Method Investment On February 2, 2021, the Company paid $ 4.0 1.1 23.95 26.57 The Company accounts for this investment using the equity method since the series B and series C convertible preferred stock are in-substance common stock, and the Company can exercise significant influence over the operating and financial policies of the EMI. The Company determined that on the dates of the acquisitions, there were differences of $ 3.4 1.0 These basis differences are being amortized over the 6-year estimated life of the customer list. As of January 31, 2023 and July 31, 2022, the Company was the holder of secured promissory notes made by the EMI in exchange for loans of an aggregate of $ 3.7 2.5 15 February 2023 The following table summarizes the change in the balance of the Company’s equity method investment: Summary of Changes in Equity Method Investments Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Balance, beginning of period $ 349 $ 3,329 $ 1,001 $ 2,901 Purchase of convertible preferred stock — — — 1,051 Equity in the net loss of investee (542 ) (639 ) (1,012 ) (1,080 ) Amortization of equity method basis difference (181 ) (181 ) (363 ) (363 ) Balance, end of the period $ (374 ) $ 2,509 $ (374 ) $ 2,509 As of January 31, 2023, the balance of the Company’s investment in the EMI was included in “Other current liabilities” in the accompanying consolidated balance sheet. Summarized financial information of the EMI was as follows: Summary of Statements of Operations Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Revenues $ 1,818 $ 1,380 $ 3,691 $ 3,071 Costs and expenses: Direct cost of revenues 1,535 1,443 3,228 2,905 Selling, general and administrative 1,772 774 3,408 2,663 Total costs and expenses 3,307 2,217 6,636 5,568 Loss from operations (1,489 ) (837 ) (2,945 ) (2,497 ) Other expense (498 ) — (842 ) (1 ) Net loss $ (1,987 ) $ (837 ) $ (3,787 ) $ (2,498 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jan. 31, 2023 | |
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) January 31, 2023 Debt securities $ 23,764 $ 6,013 $ — $ 29,777 Equity investments included in current assets 9,213 — — 9,213 Equity investments included in noncurrent assets — — 1,225 1,225 Total $ 32,977 $ 6,013 $ 1,225 $ 40,215 Acquisition consideration included in: Other current liabilities $ — $ — $ (2,275 ) $ (2,275 ) Other noncurrent liabilities — — (4,334 ) (4,334 ) Total $ — $ — $ (6,609 ) $ (6,609 ) July 31, 2022 Debt securities $ 13,734 $ 8,569 $ — $ 22,303 Equity investments included in current assets 17,091 — — 17,091 Equity investments included in noncurrent assets — 1,230 1,132 2,362 Total $ 30,825 $ 9,799 $ 1,132 $ 41,756 Acquisition consideration included in: Other current liabilities $ — $ — $ (2,578 ) $ (2,578 ) Other noncurrent liabilities — — (5,968 ) (5,968 ) Total $ — $ — $ (8,546 ) $ (8,546 ) (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 January 31, 2023 and July 31, 2022, the Company had $ 3.1 3.2 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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Balance, beginning of period $ 1,105 $ 2,119 $ 1,132 $ 2,465 Total gains (losses) recognized in “Other income (expense), net” 120 142 93 (204 ) Balance, end of period $ 1,225 $ 2,261 $ 1,225 $ 2,261 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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Balance, beginning of period $ 6,603 $ 1,015 $ 8,546 $ 1,025 Payments — — (375 ) — Total (gains) losses included in: “Other operating gain (expense), net” — (303 ) (1,565 ) (303 ) “Foreign currency translation adjustment” 6 (9 ) 3 (19 ) Balance, end of period $ 6,609 $ 703 $ 6,609 $ 703 Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period $ — $ — $ — $ — In the six months ended January 31, 2023, the Company paid an aggregate of $ 0.4 1.6 0.3 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. |
Variable Interest Entity
Variable Interest Entity | 6 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Note 9— Variable Interest Entity The Company is the primary beneficiary of a VIE that operates money transfer businesses. The Company determined that, effective May 31, 2021, it had the power to direct the activities of the VIE that most significantly impact its economic performance, and the Company has the obligation to absorb losses of and the right to receive benefits from the VIE that could potentially be significant to it. As a result, the Company consolidates the VIE. The Company does not currently own any interest in the VIE and thus the net income incurred by the VIE was attributed to noncontrolling interests in the accompanying consolidated statements of income. The VIE’s net income (loss) and aggregate funding (repaid to) provided by the Company were as follows: Schedule of Net Income and Aggregate Funding Repaid to the Company by VIE 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Net income (loss) of the VIE $ 25 $ (144 ) $ 165 $ — Aggregate funding (repaid to) provided by the Company, net $ (10 ) $ (93 ) $ 87 $ (96 ) The VIE’s summarized consolidated balance sheet amounts are as follows: VIE’s Summarized Consolidated Balance Sheet January 31,2023 July 31,2022 (in thousands) Assets: Cash and equivalents $ 3,286 $ 1,808 Restricted cash 2,064 4,490 Trade accounts receivable, net 13 31 Prepaid expenses 179 14 Other current assets 1,038 1,387 Due from the Company — 86 Property, plant, and equipment, net 375 467 Other intangibles, net 813 889 Total assets $ 7,768 $ 9,172 Liabilities and noncontrolling interests: Trade accounts payable $ — $ — Accrued expenses 25 20 Other current liabilities 3,990 5,559 Due to the Company 1 — Accumulated other comprehensive loss (15 ) (9 ) Noncontrolling interests 3,767 3,602 Total liabilities and noncontrolling interests $ 7,768 $ 9,172 The VIE’s assets may only be used to settle the VIE’s obligations and may not be used for other consolidated entities. The VIE’s liabilities are non-recourse to the general credit of the Company’s other consolidated entities. |
Other Operating Gain (Expense),
Other Operating Gain (Expense), Net | 6 Months Ended |
Jan. 31, 2023 | |
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 Expense, Net 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Corporate—Straight Path Communications Inc. class action legal fees $ (1,597 ) $ (2,694 ) $ (4,109 ) $ (3,671 ) Corporate—Straight Path Communications Inc. class action insurance claims 1,263 1,972 2,988 2,887 Fintech—write-off of contingent consideration liability — — 1,565 — Fintech— government grants 349 — 382 — net2phone—write-off of contingent consideration liability — 303 — 303 net2phone—other — (10 ) — (10 ) Traditional Communications— cable telephony customer indemnification claim (1 ) (12 ) (12 ) (36 ) Traditional Communications—other 3 (1 ) 2 (3 ) Total other operating gain (expense), net $ 17 $ (442 ) $ 816 $ (530 ) Straight Path Communications Inc. Class Action As discussed in Note 16, the Company (as well as other defendants) has been named in a pending class action on behalf of the stockholders of the Company’s former subsidiary, Straight Path Communications Inc. (“Straight Path”). The Company incurred legal fees and recorded offsetting gains from insurance claims related to this action in the three and six months ended January 31, 2023 and 2022. Write-off of Contingent Consideration Liabilities In the six months ended January 31, 2023, the Company determined that the requirements for a portion of the contingent consideration payments related to the Leaf acquisition would not be met. In addition, in the three months ended January 31, 2022, the Company determined that the requirements for a contingent consideration payment related to an acquisition in December 2019 would not be met before the expiration date. The Company recognized gains on the write-off of these contingent consideration payment obligations in the Fintech and net2phone segments, respectively. Government Grants In the three and six months ended January 31, 2023, Leaf received payments from government grants for the development and commercialization of blockchain-backed financial technologies. Indemnification Claim Beginning in June 2019, as part of a commercial resolution, the Company indemnified a cable telephony customer related to patent infringement claims brought against the customer. |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Note 11— Revolving Credit Facility 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 no 2.4 2.5 The revolving credit facility is secured by primarily all of IDT Telecom’s assets. The principal outstanding bears interest per annum at the Intercontinental Exchange Benchmark Administration Ltd. LIBOR 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 on May 16, 2024. IDT Telecom pays a quarterly unused commitment fee on the average daily balance of the unused portion of the $ 25.0 |
Equity
Equity | 6 Months Ended |
Jan. 31, 2023 | |
Equity: | |
Equity | Note 12— Equity Stock Issued to Certain Executive Officers for Bonus Payments In the six months ended January 31, 2023, certain executive officers of the Company received performance bonuses for fiscal 2022 of an aggregate of $ 1.2 24,543 0.6 2015 Stock Option and Incentive Plan On December 14, 2022, the Company’s stockholders approved an amendment to the Company’s 2015 Stock Option and Incentive Plan to increase the number of shares of the Company’s Class B common stock available for the grant of awards thereunder by an additional 50,000 In the six months ended January 31, 2023, the Company received cash from the exercise of stock options of $ 0.2 12,500 no In the six months ended January 31, 2023, the Company granted 15,000 0.4 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 8.0 203,436 5.0 5.0 In the six months ended January 31, 2023 and 2022, the Company paid $ 0.3 9.0 13,403 200,438 Deferred Stock Units Equity Incentive Program On November 30, 2022, the Company adopted an equity incentive program (under its 2015 Stock Option and Incentive Plan) in the form of grants of DSUs that, upon vesting, will entitle the grantees to receive shares of the Company’s Class B common stock. On December 5, 2022, the Company granted 187,975 25.45 5.1 27.20 4.2 The Company had an existing equity incentive program in the form of DSUs that, upon vesting, entitled the grantees to receive shares of the Company’s Class B common stock. On January 5, 2022, the third and final vesting date under the program, the Company issued 301,296 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 6 Months Ended |
Jan. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Note 13— Redeemable Noncontrolling Interest On September 29, 2021, NRS sold shares of its Class B common stock representing 2.5 10 The shares of NRS’ Class B common stock sold to Alta Fox have been classified as mezzanine equity in the accompanying consolidated balance sheets because they may be redeemed at the option of Alta Fox, although the shares are not mandatorily redeemable. The carrying amount of the shares includes the noncontrolling interest in the net income of NRS. The net income attributable to the mezzanine equity’s noncontrolling interest during the periods were as follows: Schedule of Net Income Attributable to Mezzanine Equity’s Noncontrolling Interest 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Net income of NRS attributable to the mezzanine equity’s noncontrolling interest $ 65 $ 53 $ 198 $ 63 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jan. 31, 2023 | |
Earnings per share attributable to IDT Corporation common stockholders: | |
Earnings Per Share | Note 14— Earnings 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 per share attributable to the Company’s common stockholders consists of the following: Schedule of Weighted-average Number of Shares Used in the Calculation of Basic and Diluted Earnings Per Share 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Basic weighted-average number of shares 25,510 25,652 25,556 25,609 Effect of dilutive securities: Stock options 9 715 11 711 Non-vested restricted Class B common stock 19 175 10 260 Diluted weighted-average number of shares 25,538 26,542 25,577 26,580 There were no |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jan. 31, 2023 | |
Equity: | |
Accumulated Other Comprehensive Loss | Note 15— Accumulated Other Comprehensive Loss The accumulated balances for each classification of other comprehensive loss were as follows: Schedule of Accumulated Balances for Each Classification of Other Comprehensive Loss Unrealized Loss on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2022 $ (546 ) $ (10,759 ) $ (11,305 ) Other comprehensive loss attributable to IDT Corporation (34 ) (2,372 ) (2,406 ) Balance, January 31, 2023 $ (580 ) $ (13,131 ) $ (13,711 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16— 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. Beginning in the fourth quarter of fiscal 2021, certain of the Company’s employees returned to work in the Company’s offices on a hybrid basis. The Company’s salespeople, customer service employees, technicians, and delivery employees continue to serve its independent retailers, channel partners, and customers 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 2022. Legal Proceedings 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. On February 17, 2022, the court denied the Company’s motion for summary judgment. On March 10, 2022, JDS1, LLC withdrew its application to serve as class representative and lead plaintiff. On May 16, 2022, the court denied The Arbitrage Fund’s motion to serve as class representative and lead plaintiff, and approved intervenor Ardell Howard’s motion to serve as class representative. The trial commenced on August 29, 2022 for a period of five days, followed by another five-day period in December 2022. The parties are in the midst of post-trial briefing. Closing statements are scheduled to take place in May 2023. The Company is vigorously defending 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. 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, was audited by the Universal Service Administrative Company (“USAC”). The Internal Audit Division of USAC issued preliminary audit findings and the Company, in accordance with USAC’s audit procedures, appealed certain of the findings. USAC issued a final decision, and the final decision overturned one of the initial findings but left the remaining initial findings in place. The reversal will result in the elimination of a $ 1.8 2.9 31.4 33.2 Purchase Commitments At January 31, 2023, the Company had purchase commitments of $ 5.9 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 January 31, 2023, the Company had aggregate performance bonds of $ 24.2 |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Note 17— Other Income (Expense), Net Other income (expense), net consists of the following: Schedule of Other (Expense) Income, Net 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Foreign currency transaction gains $ 2,480 $ 848 $ 1,451 $ 598 Equity in net loss of investee (723 ) (820 ) (1,375 ) (1,443 ) Losses on investments, net (228 ) (2,952 ) (2,169 ) (17,446 ) Other 84 (25 ) (136 ) (874 ) Total other income (expense), net $ 1,613 $ (2,949 ) $ (2,229 ) $ (19,165 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 18— Income Taxes At January 31, 2023, the Company’s best estimate of the effective tax rate expected to be applicable for fiscal 2023 was 27.7% compared to 16.9% at July 31, 2022. The changes in the estimated effective tax rate were mainly due to stock-based compensation and differences in the amount of taxable income earned in the various taxing jurisdictions. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards Not Yet Adopted | 6 Months Ended |
Jan. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards Not Yet Adopted | Note 19— Recently Issued Accounting Standards Not Yet Adopted In June 2022, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) No. 2022-03, Fair Value Measurement (Topic 820) Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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 National Retail Solutions net2phone Traditional Communications Corporate Total Three Months Ended January 31, 2023 Revenues $ 20,321 $ 19,822 $ 17,794 $ 255,999 $ — $ 313,936 (Loss) income from operations (806 ) 5,374 (575 ) 17,008 (2,820 ) 18,181 Three Months Ended January 31, 2022 Revenues $ 14,599 $ 10,620 $ 13,535 $ 298,304 $ — $ 337,058 (Loss) income from operations (2,271 ) 2,058 (2,866 ) 19,897 (3,004 ) 13,814 Six Months Ended January 31, 2023 Revenues $ 40,208 $ 39,135 $ 34,744 $ 521,665 $ — $ 635,752 Income (loss) from operations 706 10,605 (1,631 ) 34,271 (5,544 ) 38,407 Six Months Ended January 31, 2022 Revenues $ 28,829 $ 20,692 $ 26,448 $ 631,172 $ — $ 707,141 (Loss) income from operations (3,866 ) 3,405 (7,059 ) 40,225 (5,113 ) 27,592 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) BOSS Money $ 17,649 $ 12,029 $ 35,203 $ 24,123 Other 2,672 2,570 5,005 4,706 Total Fintech 20,321 14,599 40,208 28,829 National Retail Solutions 19,822 10,620 39,135 20,692 net2phone 17,794 13,535 34,744 26,448 Mobile Top-Up 106,127 116,246 215,176 244,731 BOSS Revolution Calling 82,831 99,951 169,083 205,920 IDT Global 58,631 73,117 120,242 162,312 Other 8,410 8,990 17,164 18,209 Total Traditional Communications 255,999 298,304 521,665 631,172 Total $ 313,936 $ 337,058 $ 635,752 $ 707,141 |
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: Schedule of Revenues Disaggregated by Geographic Region (in thousands) Fintech National Retail Solutions net2phone Traditional Communications Total Three Months Ended January 31, 2023 United States $ 19,612 $ 19,822 $ 9,514 $ 176,424 $ 225,372 Outside the United States: United Kingdom — — — 69,000 69,000 Other 709 — 8,280 10,575 19,564 Total outside the United States 709 — 8,280 79,575 88,564 Total $ 20,321 $ 19,822 $ 17,794 $ 255,999 $ 313,936 (in thousands) Fintech National Retail Solutions net2phone Traditional Communications Total Three Months Ended January 31, 2022 United States $ 14,166 $ 10,620 $ 7,157 $ 209,065 $ 241,008 Outside the United States: United Kingdom — — — 77,337 77,337 Other 433 — 6,378 11,902 18,713 Total outside the United States 433 — 6,378 89,239 96,050 Total $ 14,599 $ 10,620 $ 13,535 $ 298,304 $ 337,058 (in thousands) Fintech National Retail Solutions net2phone Traditional Communications Total Six Months Ended January 31, 2023 United States $ 38,867 $ 39,135 $ 18,316 $ 361,262 $ 457,580 Outside the United States: United Kingdom — — — 137,940 137,940 Other 1,341 — 16,428 22,463 40,232 Total outside the United States 1,341 — 16,428 160,403 178,172 Total $ 40,208 $ 39,135 $ 34,744 $ 521,665 $ 635,752 (in thousands) Fintech National Retail Solutions net2phone Traditional Communications Total Six Months Ended January 31, 2022 United States $ 27,966 $ 20,692 $ 13,981 $ 445,992 $ 508,631 Outside the United States: United Kingdom — — — 159,080 159,080 Other 863 — 12,467 26,100 39,430 Total outside the United States 863 — 12,467 185,180 198,510 Total $ 28,829 $ 20,692 $ 26,448 $ 631,172 $ 707,141 |
Schedule of Information About Contract Liabilities | The following table presents information about the Company’s contract liability balance: Schedule of Information About Contract Liabilities Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 17,072 $ 20,152 $ 21,205 $ 24,378 |
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 January 31, 2023 July 31, 2022 (in thousands) Deferred customer contract acquisition costs included in “Other current assets” $ 4,265 $ 4,085 Deferred customer contract acquisition costs included in “Other assets” 3,465 3,469 Total $ 7,730 $ 7,554 |
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 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Amortization of deferred customer contract acquisition costs $ 1,228 $ 1,030 $ 2,405 $ 2,042 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Lessee Disclosure [Abstract] | |
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 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Operating lease cost $ 799 $ 687 $ 1,566 $ 1,387 Short-term lease cost 259 253 528 600 Total lease cost $ 1,058 $ 940 $ 2,094 $ 1,987 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 824 $ 670 $ 1,588 $ 1,365 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 824 670 1,588 1,365 |
Schedule of Supplemental Disclosures Related Weighted Average Operating Leases | Schedule of Supplemental Disclosures Related Weighted Average Operating Leases January 31, 2023 July 31, 2022 Weighted-average remaining lease term-operating leases 2.7 2.8 Weighted-average discount rate-operating leases 3.6 % 3.0 % |
Schedule of Aggregate Operating Lease Liability | Schedule of Aggregate Operating Lease Liability January 31, 2023 July 31, 2022 (in thousands) Operating lease liabilities included in “Other current liabilities” $ 2,917 $ 2,899 Operating lease liabilities included in noncurrent liabilities 4,243 4,606 Total $ 7,160 $ 7,505 |
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 January 31: 2024 $ 3,135 2025 2,739 2026 1,076 2027 454 2028 137 Thereafter — Total lease payments 7,541 Less imputed interest (381 ) Total operating lease liabilities $ 7,160 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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 January 31, 2023 July 31, 2022 (in thousands) Cash and cash equivalents $ 117,811 $ 98,352 Restricted cash and cash equivalents 89,867 91,210 Total cash, cash equivalents, and restricted cash and cash equivalents $ 207,678 $ 189,562 |
Debt Securities (Tables)
Debt Securities (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Debt Securities, Trading and Available-for-Sale [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) January 31, 2023: U.S. Treasury bills and notes $ 23,854 $ 4 $ (94 ) $ 23,764 Government sponsored enterprises notes 2,512 — (4 ) 2,508 Corporate bonds 3,991 1 (487 ) 3,505 Total $ 30,357 $ 5 $ (585 ) $ 29,777 July 31, 2022: Certificates of deposit* $ 2,000 $ — $ (14 ) $ 1,986 U.S. Treasury bills and notes 13,848 — (114 ) 13,734 Corporate bonds 3,966 1 (416 ) 3,551 Municipal bonds 3,035 — (3 ) 3,032 Total $ 22,849 $ 1 $ (547 ) $ 22,303 * 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 January 31, 2023 were as follows: Schedule of Contractual Maturities of Available-for-sale Debt Securities Fair Value (in thousands) Within one year $ 22,521 After one year through five years 5,973 After five years through ten years 1,236 After ten years 47 Total $ 29,777 |
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) January 31, 2023: U.S. Treasury bills and notes $ 94 $ 11,315 Government sponsored enterprises notes 4 2,508 Corporate bonds 487 3,450 Total $ 585 $ 17,273 July 31, 2022: Certificates of deposit $ 14 $ 1,986 U.S. Treasury bills and notes 114 13,734 Corporate bonds 416 3,514 Municipal bonds 3 2,412 Total $ 547 $ 21,646 |
Schedule of Continuous Unrealized Loss Position for 12 Months or Longer | The following available-for-sale debt securities included in the tables above were in a continuous unrealized loss position for 12 months or longer: Schedule of Continuous Unrealized Loss Position for 12 Months or Longer Unrealized Losses Fair Value (in thousands) January 31, 2023: U.S. Treasury bills and notes $ 87 $ 874 Corporate bonds 475 3,286 Total $ 562 $ 4,160 July 31, 2022: U.S. Treasury bills and notes $ 72 $ 892 Corporate bonds 234 1,731 Total $ 306 $ 2,623 |
Equity Investments (Tables)
Equity Investments (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Equity Investments | Equity investments consist of the following: Schedule of Equity Investments January 31, 2023 July 31, 2022 (in thousands) Zedge, Inc. Class B common stock, 42,282 $ 93 $ 117 Rafael Holdings, Inc. Class B common stock, 278,810 290,214 574 586 Other marketable equity securities 1,872 4,089 Fixed income mutual funds 6,674 12,299 Current equity investments $ 9,213 $ 17,091 Visa Inc. Series C Convertible Participating Preferred Stock (“Visa Series C Preferred”) $ 1,225 $ 1,132 Visa Inc. Series A Convertible Participating Preferred Stock (“Visa Series A Preferred”) — 1,230 Series B and Series C convertible preferred stock—equity method investment — 1,001 Hedge funds 3,137 3,238 Other 2,325 825 Noncurrent equity investments $ 6,687 $ 7,426 |
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 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Balance, beginning of period $ 1,374 $ 2,397 $ 1,401 $ 2,743 Adjustment for observable transactions involving a similar investment from the same issuer 120 142 93 (204 ) Impairments — — — — Balance, end of the period $ 1,494 $ 2,539 $ 1,494 $ 2,539 |
Schedule of Unrealized (losses) Gains for All Equity Investments | Unrealized gains and losses for all equity investments measured at fair value included the following: Schedule of Unrealized (losses) Gains for All Equity Investments Three Months Ended January 31, Six Months Ended January 31, 2023 2 022 2023 2022 (in thousands) Net losses recognized during the period on equity investments $ (228 ) $ (2,952 ) $ (2,169 ) $ (17,446 ) Less: net gains recognized during the period on equity investments sold during the period 22 25 18 10 Unrealized losses recognized during the period on equity investments still held at the reporting date $ (250 ) $ (2,977 ) $ (2,187 ) $ (17,456 ) The unrealized gains and losses for all equity investments measured at fair value in the table above included the following: Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Unrealized gains (losses) recognized during the period on equity investments: Rafael Class B common stock $ 82 $ (993 ) $ 9 $ (13,486 ) Zedge Class B common stock $ 3 $ (168 ) $ (24 ) $ (330 ) Unrealized losses recognized during the period on equity investments still held at the reporting date $ (250 ) $ (2,977 ) $ (2,187 ) $ (17,456 ) |
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 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Balance, beginning of period $ 349 $ 3,329 $ 1,001 $ 2,901 Purchase of convertible preferred stock — — — 1,051 Equity in the net loss of investee (542 ) (639 ) (1,012 ) (1,080 ) Amortization of equity method basis difference (181 ) (181 ) (363 ) (363 ) Balance, end of the period $ (374 ) $ 2,509 $ (374 ) $ 2,509 |
Summary of Statements of Operations | Summarized financial information of the EMI was as follows: Summary of Statements of Operations Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Revenues $ 1,818 $ 1,380 $ 3,691 $ 3,071 Costs and expenses: Direct cost of revenues 1,535 1,443 3,228 2,905 Selling, general and administrative 1,772 774 3,408 2,663 Total costs and expenses 3,307 2,217 6,636 5,568 Loss from operations (1,489 ) (837 ) (2,945 ) (2,497 ) Other expense (498 ) — (842 ) (1 ) Net loss $ (1,987 ) $ (837 ) $ (3,787 ) $ (2,498 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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) January 31, 2023 Debt securities $ 23,764 $ 6,013 $ — $ 29,777 Equity investments included in current assets 9,213 — — 9,213 Equity investments included in noncurrent assets — — 1,225 1,225 Total $ 32,977 $ 6,013 $ 1,225 $ 40,215 Acquisition consideration included in: Other current liabilities $ — $ — $ (2,275 ) $ (2,275 ) Other noncurrent liabilities — — (4,334 ) (4,334 ) Total $ — $ — $ (6,609 ) $ (6,609 ) July 31, 2022 Debt securities $ 13,734 $ 8,569 $ — $ 22,303 Equity investments included in current assets 17,091 — — 17,091 Equity investments included in noncurrent assets — 1,230 1,132 2,362 Total $ 30,825 $ 9,799 $ 1,132 $ 41,756 Acquisition consideration included in: Other current liabilities $ — $ — $ (2,578 ) $ (2,578 ) Other noncurrent liabilities — — (5,968 ) (5,968 ) Total $ — $ — $ (8,546 ) $ (8,546 ) (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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Balance, beginning of period $ 1,105 $ 2,119 $ 1,132 $ 2,465 Total gains (losses) recognized in “Other income (expense), net” 120 142 93 (204 ) Balance, end of period $ 1,225 $ 2,261 $ 1,225 $ 2,261 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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Balance, beginning of period $ 6,603 $ 1,015 $ 8,546 $ 1,025 Payments — — (375 ) — Total (gains) losses included in: “Other operating gain (expense), net” — (303 ) (1,565 ) (303 ) “Foreign currency translation adjustment” 6 (9 ) 3 (19 ) Balance, end of period $ 6,609 $ 703 $ 6,609 $ 703 Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period $ — $ — $ — $ — |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Net Income and Aggregate Funding Repaid to the Company by VIE | The VIE’s net income (loss) and aggregate funding (repaid to) provided by the Company were as follows: Schedule of Net Income and Aggregate Funding Repaid to the Company by VIE 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Net income (loss) of the VIE $ 25 $ (144 ) $ 165 $ — Aggregate funding (repaid to) provided by the Company, net $ (10 ) $ (93 ) $ 87 $ (96 ) |
VIE’s Summarized Consolidated Balance Sheet | The VIE’s summarized consolidated balance sheet amounts are as follows: VIE’s Summarized Consolidated Balance Sheet January 31,2023 July 31,2022 (in thousands) Assets: Cash and equivalents $ 3,286 $ 1,808 Restricted cash 2,064 4,490 Trade accounts receivable, net 13 31 Prepaid expenses 179 14 Other current assets 1,038 1,387 Due from the Company — 86 Property, plant, and equipment, net 375 467 Other intangibles, net 813 889 Total assets $ 7,768 $ 9,172 Liabilities and noncontrolling interests: Trade accounts payable $ — $ — Accrued expenses 25 20 Other current liabilities 3,990 5,559 Due to the Company 1 — Accumulated other comprehensive loss (15 ) (9 ) Noncontrolling interests 3,767 3,602 Total liabilities and noncontrolling interests $ 7,768 $ 9,172 |
Other Operating Gain (Expense_2
Other Operating Gain (Expense), Net (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expense, Net | The following table summarizes the other operating gain (expense), net by business segment: Schedule of Other Operating Expense, Net 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Corporate—Straight Path Communications Inc. class action legal fees $ (1,597 ) $ (2,694 ) $ (4,109 ) $ (3,671 ) Corporate—Straight Path Communications Inc. class action insurance claims 1,263 1,972 2,988 2,887 Fintech—write-off of contingent consideration liability — — 1,565 — Fintech— government grants 349 — 382 — net2phone—write-off of contingent consideration liability — 303 — 303 net2phone—other — (10 ) — (10 ) Traditional Communications— cable telephony customer indemnification claim (1 ) (12 ) (12 ) (36 ) Traditional Communications—other 3 (1 ) 2 (3 ) Total other operating gain (expense), net $ 17 $ (442 ) $ 816 $ (530 ) |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Net Income Attributable to Mezzanine Equity’s Noncontrolling Interest | Schedule of Net Income Attributable to Mezzanine Equity’s Noncontrolling Interest 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Net income of NRS attributable to the mezzanine equity’s noncontrolling interest $ 65 $ 53 $ 198 $ 63 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Earnings per share attributable to IDT Corporation common stockholders: | |
Schedule of Weighted-average Number of Shares Used in the Calculation of Basic and Diluted Earnings Per Share | The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: Schedule of Weighted-average Number of Shares Used in the Calculation of Basic and Diluted Earnings Per Share 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Basic weighted-average number of shares 25,510 25,652 25,556 25,609 Effect of dilutive securities: Stock options 9 715 11 711 Non-vested restricted Class B common stock 19 175 10 260 Diluted weighted-average number of shares 25,538 26,542 25,577 26,580 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Equity: | |
Schedule of Accumulated Balances for Each Classification of Other Comprehensive Loss | The accumulated balances for each classification of other comprehensive loss were as follows: Schedule of Accumulated Balances for Each Classification of Other Comprehensive Loss Unrealized Loss on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2022 $ (546 ) $ (10,759 ) $ (11,305 ) Other comprehensive loss attributable to IDT Corporation (34 ) (2,372 ) (2,406 ) Balance, January 31, 2023 $ (580 ) $ (13,131 ) $ (13,711 ) |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Expense) Income, Net | Other income (expense), net consists of the following: Schedule of Other (Expense) Income, Net 2023 2022 2023 2022 Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 (in thousands) Foreign currency transaction gains $ 2,480 $ 848 $ 1,451 $ 598 Equity in net loss of investee (723 ) (820 ) (1,375 ) (1,443 ) Losses on investments, net (228 ) (2,952 ) (2,169 ) (17,446 ) Other 84 (25 ) (136 ) (874 ) Total other income (expense), net $ 1,613 $ (2,949 ) $ (2,229 ) $ (19,165 ) |
Schedule of Operating Results o
Schedule of Operating Results of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 313,936 | $ 337,058 | $ 635,752 | $ 707,141 |
Income (loss) from operations | 18,181 | 13,814 | 38,407 | 27,592 |
Fintech [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 20,321 | 14,599 | 40,208 | 28,829 |
Income (loss) from operations | (806) | (2,271) | 706 | (3,866) |
National Retail Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 19,822 | 10,620 | 39,135 | 20,692 |
Income (loss) from operations | 5,374 | 2,058 | 10,605 | 3,405 |
Net2 phone [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 17,794 | 13,535 | 34,744 | 26,448 |
Income (loss) from operations | (575) | (2,866) | (1,631) | (7,059) |
Traditional Communications [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 255,999 | 298,304 | 521,665 | 631,172 |
Income (loss) from operations | 17,008 | 19,897 | 34,271 | 40,225 |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Income (loss) from operations | $ (2,820) | $ (3,004) | $ (5,544) | $ (5,113) |
Business Segment Information (D
Business Segment Information (Details Narrative) | 6 Months Ended |
Jan. 31, 2023 Segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 4 |
Schedule of Revenues Disaggrega
Schedule of Revenues Disaggregated by Business Segment and Service Offered to Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 313,936 | $ 337,058 | $ 635,752 | $ 707,141 |
Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 20,321 | 14,599 | 40,208 | 28,829 |
National Retail Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 19,822 | 10,620 | 39,135 | 20,692 |
Net2 phone [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 17,794 | 13,535 | 34,744 | 26,448 |
Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 255,999 | 298,304 | 521,665 | 631,172 |
BOSS Revolution Money Transfer [Member] | Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 17,649 | 12,029 | 35,203 | 24,123 |
Other [Member] | Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,672 | 2,570 | 5,005 | 4,706 |
Other [Member] | Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,410 | 8,990 | 17,164 | 18,209 |
Mobile Top-Up [Member] | Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 106,127 | 116,246 | 215,176 | 244,731 |
BOSS Revolution Calling [Member] | Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 82,831 | 99,951 | 169,083 | 205,920 |
IDT Global [Member] | Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 58,631 | $ 73,117 | $ 120,242 | $ 162,312 |
Schedule of Revenues Disaggre_2
Schedule of Revenues Disaggregated by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 313,936 | $ 337,058 | $ 635,752 | $ 707,141 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 225,372 | 241,008 | 457,580 | 508,631 |
UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 69,000 | 77,337 | 137,940 | 159,080 |
Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 19,564 | 18,713 | 40,232 | 39,430 |
Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 88,564 | 96,050 | 178,172 | 198,510 |
Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 20,321 | 14,599 | 40,208 | 28,829 |
Fintech [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 19,612 | 14,166 | 38,867 | 27,966 |
Fintech [Member] | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ||||
Fintech [Member] | Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 709 | 433 | 1,341 | 863 |
Fintech [Member] | Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 709 | 433 | 1,341 | 863 |
National Retail Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 19,822 | 10,620 | 39,135 | 20,692 |
National Retail Solutions [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 19,822 | 10,620 | 39,135 | 20,692 |
National Retail Solutions [Member] | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ||||
National Retail Solutions [Member] | Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ||||
National Retail Solutions [Member] | Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ||||
Net2 phone [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 17,794 | 13,535 | 34,744 | 26,448 |
Net2 phone [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 9,514 | 7,157 | 18,316 | 13,981 |
Net2 phone [Member] | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ||||
Net2 phone [Member] | Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,280 | 6,378 | 16,428 | 12,467 |
Net2 phone [Member] | Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,280 | 6,378 | 16,428 | 12,467 |
Traditional Communications [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 255,999 | 298,304 | 521,665 | 631,172 |
Traditional Communications [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 176,424 | 209,065 | 361,262 | 445,992 |
Traditional Communications [Member] | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 69,000 | 77,337 | 137,940 | 159,080 |
Traditional Communications [Member] | Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,575 | 11,902 | 22,463 | 26,100 |
Traditional Communications [Member] | Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 79,575 | $ 89,239 | $ 160,403 | $ 185,180 |
Schedule of Information About C
Schedule of Information About Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
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 | $ 17,072 | $ 20,152 | $ 21,205 | $ 24,378 |
Schedule of Deferred Customer C
Schedule of Deferred Customer Contract Acquisition Costs (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Deferred customer contract acquisition costs included in “Other current assets” | $ 4,265 | $ 4,085 |
Deferred customer contract acquisition costs included in “Other assets” | 3,465 | 3,469 |
Total | $ 7,730 | $ 7,554 |
Schedule of Amortization of Def
Schedule of Amortization of Deferred Customer Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Amortization of deferred customer contract acquisition costs | $ 1,228 | $ 1,030 | $ 2,405 | $ 2,042 |
Schedule of Supplemental Disclo
Schedule of Supplemental Disclosures Related to the Company's Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Lessee Disclosure [Abstract] | ||||
Operating lease cost | $ 799 | $ 687 | $ 1,566 | $ 1,387 |
Short-term lease cost | 259 | 253 | 528 | 600 |
Total lease cost | 1,058 | 940 | 2,094 | 1,987 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 824 | $ 670 | $ 1,588 | $ 1,365 |
Schedule of Supplemental Disc_2
Schedule of Supplemental Disclosures Related Weighted Average Operating Leases (Details) | Jan. 31, 2023 | Jul. 31, 2022 |
Lessee Disclosure [Abstract] | ||
Operating lease, weighted average remaining lease term | 2 years 8 months 12 days | 2 years 9 months 18 days |
Operating lease, weighted average discount rate, percent | 3.60% | 3% |
Schedule of Aggregate Operating
Schedule of Aggregate Operating Lease Liability (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Lessee Disclosure [Abstract] | ||
Operating lease liabilities included in “Other current liabilities” | $ 2,917 | $ 2,899 |
Operating lease liabilities included in noncurrent liabilities | 4,243 | 4,606 |
Total | $ 7,160 | $ 7,505 |
Schedule of Future Minimum Matu
Schedule of Future Minimum Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Lessee Disclosure [Abstract] | ||
2024 | $ 3,135 | |
2025 | 2,739 | |
2026 | 1,076 | |
2027 | 454 | |
2028 | 137 | |
Thereafter | ||
Total lease payments | 7,541 | |
Less imputed interest | (381) | |
Total operating lease liabilities | $ 7,160 | $ 7,505 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Incurred lease cost | $ 799,000 | $ 687,000 | $ 1,566,000 | $ 1,387,000 |
Right of use assets obtained in exchange for new operating lease liabilities | 1,700,000 | 700,000 | ||
Rafael Holdings Inc. [Member] | ||||
Incurred lease cost | $ 32,000 | $ 500,000 | $ 200,000 | $ 900,000 |
Newark [Member] | ||||
Lessee operating lease, description | The Newark lease expires in April 2025 and the Israel lease expires in July 2025. | |||
Minimum [Member] | ||||
Lessee, operating lease, term of contract | 1 year | 1 year | ||
Maximum [Member] | ||||
Lessee, operating lease, term of contract | 5 years | 5 years |
Schedule of Cash, Cash Equivale
Schedule of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2022 | Jul. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 117,811 | $ 98,352 | ||
Restricted cash and cash equivalents | 89,867 | 91,210 | ||
Total cash, cash equivalents, and restricted cash and cash equivalents | $ 207,678 | $ 189,562 | $ 220,552 | $ 226,916 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details Narrative) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Restricted cash and cash equivalents, current | $ 89,867 | $ 91,210 |
Cash and cash equivalents, at carrying value | 117,811 | 98,352 |
IDT Financial Services Limited [Member] | ||
Restricted cash and cash equivalents, current | 87,700 | 86,600 |
IDT Payment Services [Member] | ||
Cash and cash equivalents, at carrying value | $ 31,200 | $ 17,300 |
Schedule of Available-for-sale
Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 | |
Debt Securities, Available-for-Sale, Amortized Cost | $ 30,357 | $ 22,849 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 5 | 1 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (585) | (547) | |
Debt Securities, Available-for-Sale | 29,777 | 22,303 | |
US Treasury Bill Securities [Member] | |||
Debt Securities, Available-for-Sale, Amortized Cost | 23,854 | 13,848 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 4 | ||
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (94) | (114) | |
Debt Securities, Available-for-Sale | 23,764 | 13,734 | |
US Government-sponsored Enterprises Debt Securities [Member] | |||
Debt Securities, Available-for-Sale, Amortized Cost | 2,512 | ||
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | |||
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (4) | ||
Debt Securities, Available-for-Sale | 2,508 | ||
Corporate Bond Securities [Member] | |||
Debt Securities, Available-for-Sale, Amortized Cost | 3,991 | 3,966 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 1 | 1 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (487) | (416) | |
Debt Securities, Available-for-Sale | $ 3,505 | 3,551 | |
Certificates of Deposit [Member] | |||
Debt Securities, Available-for-Sale, Amortized Cost | [1] | 2,000 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | [1] | ||
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | [1] | (14) | |
Debt Securities, Available-for-Sale | [1] | 1,986 | |
Municipal Bonds [Member] | |||
Debt Securities, Available-for-Sale, Amortized Cost | 3,035 | ||
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | |||
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (3) | ||
Debt Securities, Available-for-Sale | $ 3,032 | ||
[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 | Jan. 31, 2023 | Jul. 31, 2022 |
Debt Securities, Trading and Available-for-Sale [Abstract] | ||
Within one year | $ 22,521 | |
After one year through five years | 5,973 | |
After five years through ten years | 1,236 | |
After ten years | 47 | |
Total | $ 29,777 | $ 22,303 |
Schedule of Available-for-sal_2
Schedule of Available-for-sale Securities, Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss | $ 585 | $ 547 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 17,273 | 21,646 |
US Treasury Bill Securities [Member] | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss | 94 | 114 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 11,315 | 13,734 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss | 4 | |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 2,508 | |
Corporate Bond Securities [Member] | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss | 487 | 416 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | $ 3,450 | 3,514 |
Certificates of Deposit [Member] | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss | 14 | |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 1,986 | |
Municipal Bonds [Member] | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss | 3 | |
Debt Securities, Available-for-Sale, Unrealized Loss Position | $ 2,412 |
Schedule of Continuous Unrealiz
Schedule of Continuous Unrealized Loss Position for 12 Months or Longer (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 562 | $ 306 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | 4,160 | 2,623 |
US Treasury Bill Securities [Member] | ||
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 87 | 72 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | 874 | 892 |
Corporate Bond Securities [Member] | ||
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 475 | 234 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 3,286 | $ 1,731 |
Debt Securities (Details Narrat
Debt Securities (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Debt Securities, Trading and Available-for-Sale [Abstract] | ||||
Proceeds from sale and maturity of debt securities, available-for-sale | $ 16.1 | $ 2.2 | $ 27.5 | $ 6.1 |
Schedule of Equity Investments
Schedule of Equity Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Current equity investments | $ 9,213 | $ 17,091 |
Noncurrent equity investments | 6,687 | 7,426 |
Other Marketable Equity Securities [Member] | ||
Current equity investments | 1,872 | 4,089 |
Mutual Fund [Member] | ||
Current equity investments | 6,674 | 12,299 |
Hedge Funds [Member] | ||
Noncurrent equity investments | 3,137 | 3,238 |
Other Investments [Member] | ||
Noncurrent equity investments | 2,325 | 825 |
Common Class B [Member] | Zedge Inc [Member] | ||
Current equity investments | 93 | 117 |
Common Class B [Member] | Rafael Holdings Inc. [Member] | ||
Current equity investments | 574 | 586 |
Series C Convertible Preferred Stock [Member] | Visa Inc [Member] | ||
Noncurrent equity investments | 1,225 | 1,132 |
Series A Convertible Preferred Stock [Member] | Visa Inc [Member] | ||
Noncurrent equity investments | 1,230 | |
Series B and Series C Convertible Preferred Stock [Member] | ||
Noncurrent equity investments | $ 1,001 |
Schedule of Equity Investment_2
Schedule of Equity Investments (Details) (Parenthetical) - Common Class B [Member] - shares | 6 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Jul. 31, 2022 | |
Zedge Inc [Member] | ||
Number of related party shares received | 42,282 | 42,282 |
Rafael Holdings Inc. [Member] | ||
Number of related party shares received | 278,810 | 290,214 |
Schedule of Carrying Value of E
Schedule of Carrying Value of Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Balance, beginning of period | $ 1,374 | $ 2,397 | $ 1,401 | $ 2,743 |
Adjustment for observable transactions involving a similar investment from the same issuer | 120 | 142 | 93 | (204) |
Impairments | ||||
Balance, end of the period | $ 1,494 | $ 2,539 | $ 1,494 | $ 2,539 |
Schedule of Unrealized (losses)
Schedule of Unrealized (losses) Gains for All Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Net losses recognized during the period on equity investments | $ (228) | $ (2,952) | $ (2,169) | $ (17,446) |
Less: net gains recognized during the period on equity investments sold during the period | 22 | 25 | 18 | 10 |
Unrealized losses recognized during the period on equity investments still held at the reporting date | (250) | (2,977) | (2,187) | (17,456) |
Rafael Class B Common Stock [Member] | ||||
Unrealized losses recognized during the period on equity investments still held at the reporting date | 82 | (993) | 9 | (13,486) |
Zedge Class B Common Stock [Member] | ||||
Unrealized losses recognized during the period on equity investments still held at the reporting date | $ 3 | $ (168) | $ (24) | $ (330) |
Summary of Changes in Equity Me
Summary of Changes in Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Purchase of convertible preferred stock | $ 1,051 | |||
Equity in the net loss of investee | $ (723) | $ (820) | (1,375) | (1,443) |
Equity Method Investee [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance, beginning of period | 349 | 3,329 | 1,001 | 2,901 |
Purchase of convertible preferred stock | 1,051 | |||
Equity in the net loss of investee | (542) | (639) | (1,012) | (1,080) |
Amortization of equity method basis difference | (181) | (181) | (363) | (363) |
Balance, end of the period | $ (374) | $ 2,509 | $ (374) | $ 2,509 |
Summary of Statements of Operat
Summary of Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | $ 313,936 | $ 337,058 | $ 635,752 | $ 707,141 | |
Selling, general and administrative | [1] | 68,153 | 61,070 | 134,017 | 121,177 |
Total costs and expenses | 295,772 | 322,802 | 598,161 | 679,019 | |
Loss from operations | 18,181 | 13,814 | 38,407 | 27,592 | |
Other expense | 1,613 | (2,949) | (2,229) | (19,165) | |
Net loss | 15,309 | 8,250 | 27,864 | 5,911 | |
Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 1,818 | 1,380 | 3,691 | 3,071 | |
Direct cost of revenues | 1,535 | 1,443 | 3,228 | 2,905 | |
Selling, general and administrative | 1,772 | 774 | 3,408 | 2,663 | |
Total costs and expenses | 3,307 | 2,217 | 6,636 | 5,568 | |
Loss from operations | (1,489) | (837) | (2,945) | (2,497) | |
Other expense | (498) | (842) | (1) | ||
Net loss | $ (1,987) | $ (837) | $ (3,787) | $ (2,498) | |
[1]Stock-based compensation included in selling, general and administrative expenses |
Equity Investments (Details Nar
Equity Investments (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Aug. 10, 2021 | Feb. 02, 2021 | Aug. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Nov. 30, 2022 | Jul. 31, 2022 | Jul. 28, 2022 | Jul. 31, 2021 | |
Proceeds from sale of common stock | $ 27,531 | $ 6,068 | |||||||||
Payments to Acquire Equity Method Investments | 1,051 | ||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 1,000 | $ 3,400 | |||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Accounting Treatment | These basis differences are being amortized over the 6-year estimated life of the customer list. | ||||||||||
Equity Method Investee [Member] | |||||||||||
Payments to Acquire Equity Method Investments | 1,051 | ||||||||||
Receivable with imputed interest, face amount | $ 3,700 | 3,700 | $ 2,500 | ||||||||
Receivable with imputed interest, effective yield (Interest rate) | 15% | ||||||||||
Receivable with imputed interest, face amount | Feb. 28, 2023 | ||||||||||
Unrestricted Common Class B of Rafael Holdings Inc [Member] | |||||||||||
Related party shares received | 28,320 | ||||||||||
Class B Common Stock [Member] | Rafael Holdings Inc. [Member] | |||||||||||
Owned shares | 11,404 | 261,894 | |||||||||
Visa Series A Convertible Participating Preferred Stock [Member] | |||||||||||
Owned shares | 58 | 58 | |||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 3.645 | ||||||||||
Visa Series A Convertible Participating Preferred Stock [Member] | Visa Class A Common Stock [Member] | |||||||||||
Owned shares | 5,800 | ||||||||||
Proceeds from sale of common stock | $ 1,300 | ||||||||||
Visa Series C Convertible Participating Preferred Stock [Member] | |||||||||||
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | $ 100 | $ 100 | $ 100 | ||||||||
Equity Securities without Readily Determinable Fair Value, Downward Price Adjustment, Annual Amount | $ 200 | ||||||||||
Series B Convertible Preferred Stock [Member] | Equity Method Investee [Member] | |||||||||||
Payments to Acquire Equity Method Investments | $ 4,000 | ||||||||||
Equity Method Investment, Ownership Percentage | 23.95% | ||||||||||
Series C Convertible Preferred Stock [Member] | Equity Method Investee [Member] | |||||||||||
Payments to Acquire Equity Method Investments | $ 1,100 | ||||||||||
Equity Method Investment, Ownership Percentage | 26.57% |
Schedule of Balance of Assets M
Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt securities | $ 29,777 | $ 22,303 | |||
Fair Value, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt securities | 29,777 | 22,303 | |||
Equity investments included in current assets | 9,213 | 17,091 | |||
Equity investments included in noncurrent assets | 1,225 | 2,362 | |||
Total | 40,215 | 41,756 | |||
Acquisition consideration included in other current liabilities | (2,275) | (2,578) | |||
Acquisition consideration included in other noncurrent liabilities | (4,334) | (5,968) | |||
Acquisition consideration included in other liabilities | (6,609) | (8,546) | [1] | ||
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] | 23,764 | 13,734 | ||
Equity investments included in current assets | [1] | 9,213 | 17,091 | ||
Equity investments included in noncurrent assets | [1] | ||||
Total | [1] | 32,977 | 30,825 | ||
Acquisition consideration included in other current liabilities | [1] | ||||
Acquisition consideration included in other noncurrent liabilities | [1] | ||||
Acquisition consideration included in other 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] | 6,013 | 8,569 | ||
Equity investments included in current assets | [2] | ||||
Equity investments included in noncurrent assets | [2] | 1,230 | |||
Total | [2] | 6,013 | 9,799 | ||
Acquisition consideration included in other current liabilities | [2] | ||||
Acquisition consideration included in other noncurrent liabilities | [2] | ||||
Acquisition consideration included in other liabilities | [2] | [1] | |||
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] | 1,225 | 1,132 | ||
Total | [3] | 1,225 | 1,132 | ||
Acquisition consideration included in other current liabilities | [3] | (2,275) | (2,578) | ||
Acquisition consideration included in other noncurrent liabilities | [3] | (4,334) | (5,968) | ||
Acquisition consideration included in other liabilities | $ (6,609) | [3] | $ (8,546) | [1] | |
[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 | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Balance, beginning of period | $ 1,105 | $ 2,119 | $ 1,132 | $ 2,465 |
Total gains (losses) recognized in “Other income (expense), net” | 120 | 142 | 93 | (204) |
Balance, end of period | 1,225 | 2,261 | 1,225 | 2,261 |
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 | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Balance, beginning of period | $ 6,603 | $ 1,015 | $ 8,546 | $ 1,025 |
Payments | (375) | |||
“Other operating gain (expense), net” | (303) | (1,565) | (303) | |
“Foreign currency translation adjustment” | 6 | (9) | 3 | (19) |
Balance, end of period | 6,609 | 703 | 6,609 | 703 |
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 Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jul. 31, 2022 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Investment in hedge funds | $ 3,100 | $ 3,100 | $ 3,200 | ||
Contingent consideration payment | 400 | ||||
Gain on write-off of contingent consideration payment obligation | 1,565 | ||||
Other Operating Income (Expense) [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Gain on write-off of contingent consideration payment obligation | $ 1,600 | $ 300 |
Schedule of Net Income and Aggr
Schedule of Net Income and Aggregate Funding Repaid to the Company by VIE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net income (loss) of the VIE | $ 25 | $ (144) | $ 165 | |
Aggregate funding (repaid to) provided by the Company, net | $ (10) | $ (93) | $ 87 | $ (96) |
VIE_s Summarized Consolidated B
VIE’s Summarized Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Cash and equivalents | $ 117,811 | $ 98,352 |
Trade accounts receivable, net | 47,605 | 64,315 |
Prepaid expenses | 14,611 | 17,526 |
Other current assets | 36,559 | 30,773 |
Property, plant, and equipment, net | 38,303 | 36,866 |
Other intangibles, net | 8,985 | 9,609 |
Total assets | 500,511 | 497,094 |
Trade accounts payable | 23,229 | 29,080 |
Accrued expenses | 110,580 | 117,109 |
Other current liabilities | 32,215 | 36,588 |
Accumulated other comprehensive loss | (13,711) | (11,305) |
Noncontrolling interests | 4,876 | 3,022 |
Total liabilities and noncontrolling interests | 500,511 | 497,094 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Cash and equivalents | 3,286 | 1,808 |
Restricted cash | 2,064 | 4,490 |
Trade accounts receivable, net | 13 | 31 |
Prepaid expenses | 179 | 14 |
Other current assets | 1,038 | 1,387 |
Due from the Company | 86 | |
Property, plant, and equipment, net | 375 | 467 |
Other intangibles, net | 813 | 889 |
Total assets | 7,768 | 9,172 |
Trade accounts payable | ||
Accrued expenses | 25 | 20 |
Other current liabilities | 3,990 | 5,559 |
Due to the Company | 1 | |
Accumulated other comprehensive loss | (15) | (9) |
Noncontrolling interests | 3,767 | 3,602 |
Total liabilities and noncontrolling interests | $ 7,768 | $ 9,172 |
Schedule of Other Operating Exp
Schedule of Other Operating Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Other Income and Expenses [Abstract] | ||||
Corporate—Straight Path Communications Inc. class action legal fees | $ (1,597) | $ (2,694) | $ (4,109) | $ (3,671) |
Corporate—Straight Path Communications Inc. class action insurance claims | 1,263 | 1,972 | 2,988 | 2,887 |
Fintech—write-off of contingent consideration liability | 1,565 | |||
Fintech— government grants | 349 | 382 | ||
net2phone—write-off of contingent consideration liability | 303 | 303 | ||
net2phone—other | (10) | (10) | ||
Traditional Communications— cable telephony customer indemnification claim | (1) | (12) | (12) | (36) |
Traditional Communications—other | 3 | (1) | 2 | (3) |
Total other operating gain (expense), net | $ 17 | $ (442) | $ 816 | $ (530) |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jul. 31, 2022 | May 17, 2021 | |
Line of Credit Facility [Line Items] | ||||
Proceeds from lines of credit | $ 2,383 | $ 2,488 | ||
Repayments of lines of credit | 2,383 | 2,488 | ||
IDT Telecom [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Proceeds from lines of credit | 2,400 | 2,500 | ||
Repayments of lines of credit | 2,400 | $ 2,500 | ||
Revolving Credit Facility [Member] | TD Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 25,000 | |||
Revolving credit amount outstanding | $ 0 | $ 0 | ||
Credit facility, description | The revolving credit facility is secured by primarily all of IDT Telecom’s assets. The principal outstanding bears interest per annum at the Intercontinental Exchange Benchmark Administration Ltd. LIBOR 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 on May 16, 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. | |||
Revolving credit, unused portion amount | $ 25,000 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Dec. 14, 2022 | Dec. 05, 2022 | Jan. 05, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Nov. 30, 2022 | Jul. 31, 2022 | |
Class of Stock [Line Items] | |||||||||
Proceeds from exercise of stock options | $ 172 | ||||||||
Share based compensation | $ 1,286 | $ 310 | $ 1,858 | $ 595 | |||||
Shares remained available for repurchase under stock repurchase program | 5,000,000 | 5,000,000 | |||||||
Deferred Stock Units [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Estimated fair value of DSUs on date of grant | $ 5,100 | $ 5,100 | |||||||
Weighted average grant date fair value per DSU | $ 27.20 | ||||||||
Unrecognized compensation cost related to non-vested DSUs | $ 4,200 | $ 4,200 | |||||||
Common Class B [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Common Class B [Member] | Deferred Stock Units [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Deferred stock units, description | On November 30, 2022, the Company adopted an equity incentive program (under its 2015 Stock Option and Incentive Plan) in the form of grants of DSUs that, upon vesting, will entitle the grantees to receive shares of the Company’s Class B common stock. On December 5, 2022, the Company granted 187,975 DSUs to certain of its executive officers and other employees. Subject to continued full time employment or other service to the Company, the DSUs are scheduled to vest in three equal amounts on each of May 17, 2023, February 21, 2024, and February 25, 2025. The number of shares that will be issuable on each vesting date will vary between 50% to 200% of the number of DSUs that vest on that vesting date, depending on the market price for the underlying Class B common stock on the vesting date relative to the price approved by the Compensation Committee of the Company’s Board of Directors of $25.45 per share (which was based on the market price at the time of the grant). In addition, the grantee will have the right to elect a later vesting date no later than April 14, 2023 for the May 17, 2023 vesting date, and no later than January 19, 2024 for the February 21, 2024 vesting date. A grantee will have the option to elect a later vesting date for one-half or all of the shares scheduled to vest on the then upcoming vesting date and any DSUs that do not vest based on the grantee’s election, will be eligible to vest on the subsequent scheduled vesting date. The Company estimated that the fair value of the DSUs on the date of grant was $5.1 million, which is being recognized on a graded vesting basis over the requisite service periods ending in February 2025. The Company used a risk neutral Monte Carlo simulation method in its valuation of the DSUs, which simulated the range of possible future values of the Company’s Class B common stock over the life of the DSUs. | ||||||||
Number of deferred stock units granted | 187,975 | ||||||||
Share based compensation arrangement by share based payment award, equity instruments other than options, vested in period | 301,296 | ||||||||
Common Class B [Member] | 2015 Stock Option and Incentive Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock additionally authorized | 50,000 | ||||||||
Proceeds from exercise of stock options | $ 200 | ||||||||
Number of exercised of stock options shares | 12,500 | 0 | |||||||
Class B Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Aggregate repurchased shares | 8,000,000 | 8,000,000 | |||||||
Class B common stock shares repurchased | 203,436 | ||||||||
Aggregate purchase price of shares repurchased | $ 5,000 | ||||||||
Executive Officer [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Performance bonus paid in cash stock | $ 1,200 | ||||||||
Executive Officer [Member] | Common Class B [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Issuance of shares | 24,543 | ||||||||
Issuance of shares, value | $ 600 | ||||||||
Employee [Member] | Common Class B [Member] | 2015 Stock Option and Incentive Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock granted | 15,000 | ||||||||
Share based compensation | $ 400 | ||||||||
Employees [Member] | Class B Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Class B common stock shares repurchased | 13,403 | 200,438 | |||||||
Aggregate purchase price of shares repurchased | $ 300 | $ 9,000 | |||||||
Board Of Directors [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common Stock, Par or Stated Value Per Share | $ 25.45 |
Schedule of Net Income Attribut
Schedule of Net Income Attributable to Mezzanine Equity’s Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Common Class B [Member] | National Retail Solutions [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Net income of NRS attributable to the mezzanine equity’s noncontrolling interest | $ 65 | $ 53 | $ 198 | $ 63 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest (Details Narrative) - Common Class B [Member] - National Retail Solutions [Member] $ in Millions | Sep. 29, 2021 USD ($) |
Noncontrolling Interest [Line Items] | |
Capital stock outstanding percentage | 2.50% |
Sale of stock, consideration received on transaction | $ 10 |
Schedule of Weighted-average Nu
Schedule of Weighted-average Number of Shares Used in the Calculation of Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Earnings per share attributable to IDT Corporation common stockholders: | ||||
Basic weighted-average number of shares | 25,510 | 25,652 | 25,556 | 25,609 |
Stock options | 9 | 715 | 11 | 711 |
Non-vested restricted Class B common stock | 19 | 175 | 10 | 260 |
Diluted weighted-average number of shares | 25,538 | 26,542 | 25,577 | 26,580 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Earnings per share attributable to IDT Corporation common stockholders: | ||||
Anti-dilutive earnings per share | 0 | 0 | 0 | 0 |
Schedule of Accumulated Balance
Schedule of Accumulated Balances for Each Classification of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (11,305) | |||
Other comprehensive loss attributable to IDT Corporation | $ (2,039) | $ (1,862) | (2,406) | $ (905) |
Ending balance | (13,711) | (13,711) | ||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (546) | |||
Other comprehensive loss attributable to IDT Corporation | (34) | |||
Ending balance | (580) | (580) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (10,759) | |||
Other comprehensive loss attributable to IDT Corporation | (2,372) | |||
Ending balance | $ (13,131) | $ (13,131) |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 |
Product Liability Contingency [Line Items] | |||
Accrued liabilities | $ 31.4 | $ 33.2 | |
Purchase obligation | 5.9 | ||
Performance bonds outstanding | 24.2 | ||
Universal Service Fund [Member] | |||
Product Liability Contingency [Line Items] | |||
Accrued liabilities | $ 1.8 | ||
Federal Telecommunications Relay Services Fund [Member] | |||
Product Liability Contingency [Line Items] | |||
Accrued liabilities | $ 2.9 |
Schedule of Other (Expense) Inc
Schedule of Other (Expense) Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transaction gains | $ 2,480 | $ 848 | $ 1,451 | $ 598 |
Equity in net loss of investee | (723) | (820) | (1,375) | (1,443) |
Losses on investments, net | (228) | (2,952) | (2,169) | (17,446) |
Other | 84 | (25) | (136) | (874) |
Total other income (expense), net | $ 1,613 | $ (2,949) | $ (2,229) | $ (19,165) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 6 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 27.70% | 16.90% |