Straight Path Communications 10-Q 17 Mar 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jan. 31, 2014	Mar. 12, 2014	Mar. 12, 2014
		Common Class A [Member]	Common Class B [Member]
Entity Registrant Name	'Straight Path Communications Inc.	'	'
Entity Central Index Key	'0001574460	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--07-31	'	'
Document Type	'10-Q	'	'
Document Period End Date	31-Jan-14	'	'
Document Fiscal Period Focus	'Q2	'	'
Document Fiscal Year Focus	'2014	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Common Stock, Shares Outstanding	'	787,163	11,007,934

Combined_and_Consolidated_Bala

Combined and Consolidated Balance Sheets (USD $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, unless otherwise specified
Current Assets:	'	'
Cash and cash equivalents	$14,295	$15,000
Trade accounts receivable, net of allowance for doubtful accounts of $4 at January 31, 2014 and July 31, 2013	3,841	60
Other current assets	1,075	90
Total current assets	19,211	15,150
Prepaid expenses	846	239
Intangibles	350	350
Total assets	20,407	15,739
Current liabilities:	'	'
Trade accounts payable	7	1
Accrued expenses	3,345	1,473
Due to IDT Corporation	159	'
Deferred revenue	2,224	145
Income taxes payable	15	15
Total current liabilities	5,750	1,634
Deferred revenue - long-term portion	1,589	250
Total liabilities	7,339	1,884
Commitments and contingencies	'	'
Straight Path Communications stockholders' equity:	'	'
Preferred stock, $.01 par value; authorized shares - 3,000; no shares issued	'	'
Additional paid-in capital	14,609	14,114
Accumulated deficit	-1,118	'
Total Straight Path Communications stockholders'equity	13,609	14,229
Noncontrolling interests	-541	-374
Total equity	13,068	13,855
Total liabilities and equity	20,407	15,739
Class A common stock	'	'
Straight Path Communications stockholders' equity:	'	'
Common stock value	8	8
Class B common stock	'	'
Straight Path Communications stockholders' equity:	'	'
Common stock value	$110	$107

Combined_and_Consolidated_Bala1

Combined and Consolidated Balance Sheets (Parenthetical) (USD $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, except Per Share data, unless otherwise specified
Net of allowance for doubtful accounts	$4	$4
Preferred stock, Par value	$0.01	$0.01
Preferred stock, Shares authorized	3,000	3,000
Preferred stock, Shares issued	'	'
Common Stock [Member] | Class A common stock	'	'
Common stock, Par value	$0.01	$0.01
Common stock, Shares authorized	2,000	2,000
Common stock, Shares issued	787	787
Common stock, Shares outstanding	787	787
Common Stock [Member] | Class B common stock	'	'
Common stock, Par value	$0.01	$0.01
Common stock, Shares authorized	40,000	40,000
Common stock, Shares issued	11,008	10,693
Common stock, Shares outstanding	11,008	10,693

Combined_and_Consolidated_Stat

Combined and Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Statements of Operations [Abstract]	'	'	'	'
Revenues	$453	$229	$580	$697
Costs and expenses:	'	'	'	'
Direct cost of revenues	283	104	311	410
Selling, general and administrative	1,042	683	1,611	2,319
Total costs and expenses	1,325	787	1,922	2,729
Gain on sale of rights in wireless spectrum	'	150	'	150
Loss from operations	-872	-408	-1,342	-1,882
Interest income	4	3	7	6
Income from IDT Corporation payments of liabilities	'	'	50	'
Loss before income taxes	-868	-405	-1,285	-1,876
Provision for income taxes	'	-12	'	-12
Net loss	-868	-417	-1,285	-1,888
Net loss attributable to noncontrolling interests	141	81	167	291
Net loss attributable to Straight Path Communications Inc.	($727)	($336)	($1,118)	($1,597)
Basic and diluted loss per share attributable to Straight Path Communications Inc. stockholders	($0.07)	($0.03)	($0.11)	($0.14)
Weighted-average number of shares used in calculation of basic and diluted loss per share	10,784	11,425	10,646	11,425

Combined_and_Consolidated_Stat1

Combined and Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Operating activities	'	'
Net loss	($1,285)	($1,888)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Stock-based compensation	498	1,226
Change in assets and liabilities:	'	'
Trade accounts receivable, net	-3,781	-18
Other current assets and prepaid expenses,	-1,592	-134
Trade accounts payable and accrued expenses	1,878	-434
Due to IDT Corporation	159	'
Deferred revenue	3,418	134
Net cash used in operating activities	-705	-1,114
Financing activities	'	'
Funding provided by IDT Corporation, net of repayments	'	720
Net cash provided by financing activities	'	720
Net (decrease) increase in cash and cash equivalents	-705	-394
Cash and cash equivalents at beginning of period	15,000	2,598
Cash and cash equivalents at end of period	14,295	2,204
Supplemental schedule of non-cash investing and financing activities	'	'
Amount due to IDT Corporation contributed to equity	'	$720

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Jan. 31, 2014
Basis of Presentation [Abstract]	'
Basis of Presentation	'
	Note 1—Basis of Presentation
	The accompanying unaudited combined and consolidated financial statements of Straight Path Communications Inc. and its subsidiaries (“Straight Path”) 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 footnotes 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, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2014. The balance sheet at July 31, 2013 has been derived from Straight Path’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the combined and consolidated financial statements and footnotes thereto included in Straight Path’s Annual Report on Form 10-K for the fiscal year ended July 31, 2013, as filed with the U.S. Securities and Exchange Commission (the “SEC”).
	Straight Path was incorporated in April 2013. Straight Path’s businesses consist of 100% ownership of Straight Path Spectrum, Inc. (“Straight Path Spectrum”), which holds, leases and markets fixed wireless spectrum licenses, and 84.5% ownership of Straight Path IP Group, Inc. (“Straight Path IP”), which holds intellectual property primarily related to communications over the Internet and the licensing and other businesses related to this intellectual property. The “Company” in these financial statements refers to Straight Path, Straight Path Spectrum, and Straight Path IP on a combined and consolidated basis as if Straight Path existed and owned the above interests in these entities in all periods presented.
	The Company was formerly a subsidiary of IDT Corporation (“IDT”). On July 31, 2013, the Company was spun-off by IDT to its stockholders and became an independent public company (the “Spin-Off”). The Company authorized the issuance of two classes of its common stock, Class A and Class B. The Spin-Off of the Company occurred by way of a pro rata distribution of the Company’s Class A common stock and Class B common stock held by IDT to IDT’s stockholders. On the distribution date, each IDT stockholder received one share of the Company’s Class A common stock for every two shares of IDT Class A common stock and one share of the Company’s Class B common stock for every two shares of IDT Class B common stock held on the record date for the Spin-Off. On July 31, 2013, the Company distributed 0.8 million shares of its Class A common stock (based on 1.6 million shares of IDT Class A common stock that were outstanding on the record date) and 10.7 million shares of its Class B common stock (based on 21.4 million shares of IDT Class B common stock that were outstanding on the record date).
	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 2014 refers to the fiscal year ending July 31, 2014).

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Jan. 31, 2014
Fair Value Measurements [Abstract]	'
Fair Value Measurements	'
	Note 2—Fair Value Measurements
	At January 31, 2014, the Company did not have any assets or liabilities measured at fair value on a recurring basis.
	At January 31, 2014 and July 31, 2013, the carrying amounts of the financial instruments included in cash and cash equivalents, other current assets, accrued expenses and due to IDT Corporation approximated fair value because of the short period of time to maturity. The fair value estimates for cash and cash equivalents were classified as Level 1 and other current assets, accrued expenses and due to IDT Corporation were classified as Level 2 of the fair value hierarchy. The estimated fair value of the Company’s financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting this 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.

Equity

Equity	6 Months Ended
	Jan. 31, 2014
Equity [Abstract]	'
Equity	'
	Note 3—Equity
	Changes in the components of equity were as follows:
		Six Months Ended
		31-Jan-14
		Attributable			Noncontrolling			Total
		to Straight Path			Interests
		(in thousands)
	Balance, July 31, 2013	$	14,229		$	(374	)	$	13,855
	Stock-based compensation		498			—			498
	Net loss		(1,118	)		(167	)		(1,285	)
	Balance, January 31, 2014	$	13,609		$	(541	)	$	13,068
	In the Spin-Off, each holder of an option to purchase IDT Class B common stock received a ratable share in a pool of options to purchase 32,155 shares of the Company’s Class B common stock (which was based on 10% of the outstanding options to purchase 641,567 shares of IDT Class B common stock issued by IDT and the 1 for 2 distribution ratio of the Spin-Off). The exercise price of the Company’s options is $5.67 per share, which is equal to the closing price of the Company’s Class B common stock on the first trading day following the consummation of the Spin-Off. The expiration date of the Company’s options is equal to the later of (i) the expiration of the IDT option held by such option holder and (ii) a date on or about the first anniversary of the Spin-Off when the Company’s insiders will be free to trade in shares of the Company under the Company’s insider trading policy. The options to purchase shares of the Company were issued under the Company’s 2013 Stock Option and Incentive Plan. The issuance of the 32,155 options to purchase the Company’s shares was accounted for as a modification. No incremental charge was required as a result of the modification.
	On August 2, 2013, the Company granted its non-employee directors an aggregate of 3,750 shares of the Company’s Class B common stock with an aggregate fair value on the date of grant of $21,263. These shares vested immediately upon grant. In addition, on August 2, 2013, the Company granted Davidi Jonas, the Company’s Chief Executive Officer and President, 229,608 restricted shares of Class B common stock, and Jonathan Rand, the Company’s Chief Financial Officer and Treasurer, 38,268 restricted shares of Class B common stock. Both grants of restricted shares vest as to one-third of the granted shares on each of August 2, 2014, 2015 and 2016, unless otherwise determined by the Compensation Committee of the Company’s Board of Directors. The aggregate grant date fair value of these grants was $1.5 million, which will be charged to expense on a straight line basis over the vesting period.
	On August 6, 2013, the Company granted various consultants an aggregate of 10,100 restricted shares of its Class B common stock. These restricted shares will vest as to one-third of the granted shares in each of August 2014, 2015 and 2016, unless otherwise determined by the Compensation Committee of the Company’s Board of Directors. The aggregate grant date fair value of the grant was $0.1 million, which is being charged to expense on a straight line basis over the vesting period.
	In January 2014, the Company granted its non-employee directors an aggregate of 24,000 shares of the Company’s Class B common stock with an aggregate fair value on the date of grant of $0.2 million. These shares vested immediately upon grant.

Loss_Per_Share

Loss Per Share	6 Months Ended
	Jan. 31, 2014
Loss Per Share [Abstract]	'
Loss Per Share	'
	Note 4—Loss Per Share
	Basic earnings per share is computed by dividing net income (loss) 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 following shares were excluded from the diluted loss per share computations because their inclusion would have been anti-dilutive:
		Three Months Ended				Six Months Ended
		January 31,				January 31,
		2014		2013		2014		2013
		(in thousands)
	Stock options		30		—		30		—
	Non-vested restricted Class B common stock		474		1,002		474		1,002
	Shares excluded from the calculation of diluted loss per share		504		1,002		504		1,002
	For the three and six months ended January 31, 2014 and 2013, the diluted loss per share equals basic loss per share because the Company had a net loss and the impact of the assumed exercise of stock options and assumed vesting of restricted stock would have been anti-dilutive.

Related_Party_Transactions

Related Party Transactions	6 Months Ended
	Jan. 31, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	Note 5—Related Party Transactions
	In connection with the Spin-Off, the Company and IDT entered into a Separation and Distribution Agreement and a Tax Separation Agreement to complete the separation of the Company’s businesses from IDT and to distribute the Company’s common stock to IDT’s stockholders. These agreements govern the relationship between the Company and IDT after the distribution and provide for the allocation of employee benefits, taxes and other liabilities and obligations attributable to periods prior to the distribution. These agreements reflect terms between affiliated parties established without arms-length negotiation. The Company believes that the terms of these agreements equitably reflect the benefits and costs of the Company’s ongoing relationships with IDT.
	Pursuant to the Separation and Distribution Agreement, the Company has indemnified IDT and IDT has indemnified the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. The Separation and Distribution Agreement includes, among other things, that IDT is obligated to reimburse the Company for the payment of any liabilities of the Company arising or related to the period prior to the Spin-Off. In the three and six months ended January 31, 2014, IDT paid nil and $0.1 million, respectively, pursuant to this obligation, which was recorded as “Income from IDT Corporation payments of liabilities” in the combined and consolidated statement of operations.
	The Company also entered into a Transition Services Agreement, pursuant to which IDT will continue to provide certain services, including, but not limited to information and technology, human resources, payroll, tax, accounts payable, purchasing, treasury, financial systems, investor relations, legal, corporate accounting, internal audit, and facilities for an agreed period following the Spin-Off.
	Prior to the Spin-Off, IDT charged the Company for certain transactions and allocated routine expenses based on company specific items. Specifically, IDT allocated payroll, benefits, insurance, facilities and other expenses to the Company, which were included in “Selling, general and administrative” expense in the combined and consolidated statements of operations. In addition, both prior to and subsequent to the Spin-Off, IDT charged the Company for regulatory fees, connectivity charges and legal expenses, which was included in “Direct cost of revenues” in the combined and consolidated statements of operations.
	Following are the amounts that IDT charged the Company pursuant to the Transition Services Agreement or through intercompany charges for periods prior to the Spin-Off:
		Three Months Ended				Six Months Ended
		January 31,				January 31,
		2014		2013		2014		2013
		(in thousands)
	Included in direct cost of revenues	$	19	$	13	$	28	$	25
	Included in selling, general and administrative		319		135		592		316

Concentration_of_Customers_and

Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum	6 Months Ended
	Jan. 31, 2014
Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum [Abstract]	'
Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum	'
	Note 6—Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum
	Concentration of Customers
	Straight Path Spectrum’s revenues from transactions with a single customer that amounted to 10% or more of total revenues were as follows:
		Six Months Ended
		January 31,
		2014		2013
		(in thousands)
	TelePacific Communications	$	83	$	83
	AT&T		59	na
	na-less than 10% of total revenues in the period
	The loss of either of these major customers may have a material adverse effect on the Company’s results of operations and cash flows.
	Gain on Sale of Rights in Wireless Spectrum
	In March and April 2012, Straight Path Spectrum closed on the sale of rights in wireless spectrum partitioned and/or disaggregated from eight of its spectrum licenses covering metropolitan areas from its nationwide portfolio. In fiscal 2012, Straight Path Spectrum received cash of $6.8 million in exchange for the rights in the spectrum and recorded a gain of $5.3 million. In fiscal 2013, Straight Path Spectrum settled certain claims made by the Former Chief Executive Officer of Straight Path Spectrum (the “Former SPSI CEO”) and parties related to the Former SPSI CEO in connection with the March and April 2012 sale of rights in wireless spectrum. In the three months ended January 31, 2013, the Company reversed accrued amounts due to the settlement of the claims and recorded a gain of $0.2 million that was included in “Gain on sale of rights in wireless spectrum” in the combined and consolidated statement of operations.

Business_Segment_Information

Business Segment Information	6 Months Ended
	Jan. 31, 2014
Business Segment Information [Abstract]	'
Business Segment Information	'
	Note 7—Business Segment Information
	The Company has two reportable business segments, Straight Path Spectrum, which holds, leases and markets fixed wireless spectrum, and Straight Path IP, which holds intellectual property primarily related to communications over the Internet and the licensing and other businesses related to this intellectual property.
	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. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. There are no significant asymmetrical allocations to segments.
	Operating results for the business segments of the Company were as follows:
		Straight Path			Straight Path			Total
		Spectrum			IP
		(in thousands)
	Three Months Ended January 31, 2014
	Revenues	$	109		$	344		$	453
	Loss from operations		(175	)		(697	)		(872	)
	Three Months Ended January 31, 2013
	Revenues	$	136		$	93		$	229
	Income (loss) from operations		116			(524	)		(408	)
	Gain on sale of rights in wireless spectrum		150			—			150
	Six Months Ended January 31, 2014
	Revenues	$	216		$	364		$	580
	Loss from operations		(235	)		(1,107	)		(1,342	)
	Six Months Ended January 31, 2013
	Revenues	$	277		$	420		$	697
	Income (loss) from operations		80			(1,962	)		(1,882	)
	Gain on sale of rights in wireless spectrum		150			—			150
	Total assets for the business segments of the Company were as follows:
		Straight Path			Straight Path			Total
		Spectrum			IP
					(in thousands)
	Total assets:
	31-Jan-14	$	6,037		$	14,370		$	20,407
	31-Jul-13		3,642			12,097			15,739

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
	Jan. 31, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	Note 8—Commitments and Contingencies
	Legal Proceedings
	On December 11, 2012, Straight Path IP filed a demand for arbitration seeking a declaration that the former Chief Executive Officer of Straight Path IP (the “Former SPIP CEO”)’s employment was properly terminated for cause and that the Former SPIP CEO is not entitled to severance or certain equity rights under his employment agreement. On March 15, 2013, the Former SPIP CEO filed a response and counterclaims alleging breach of contract and seeking various forms of relief. Specifically, he is seeking certain declarations related to the termination of his employment, and he is seeking certain payments, including in respect of options to purchase common stock representing 5% of the outstanding common stock of Straight Path IP, damages for unpaid compensation and severance, a sum in excess of $35 million in compensatory damages, and punitive damages in an unspecified amount. In a recent filing with respect to the arbitration proceeding, the Form SPIP CEO announced his intent to present evidence of a valuation of $5 billion for Straight Path IP, along with his assertion that the market value of Straight Path IP is/was not a fair representation of his damages related to his alleged equity rights. The parties have selected an arbitrator, commenced discovery, and set a case management schedule. The Company does not believe that the Former SPIP CEO’s counterclaims have merit, and is vigorously seeking to enforce its rights, prevail on its claims, and defend against the defendant’s counterclaims. At the current time, the Company cannot reasonably estimate its likely exposure in this matter. Under the terms of the Separation Agreement related to the Spin-Off, IDT is responsible for the costs of the arbitration and will indemnify the Company for liability other than for issuance of equity to the Former SPIP CEO.
	On April 11, 2013, Sipnet EU S.R.O., a Czech company, (“Petitioner”) filed a petition for an inter partes review at the United States Patent and Trademark Office (the “USPTO”) for certain claims of U.S. Patent 6,108,704 (“the ’704 Patent”). On October 11, 2013, the USPTO partially granted the request and instituted an inter partes review. On January 30, 2014, Straight Path IP filed a Patent Owner’s Response, and oral argument is set for July 11, 2014. Straight Path IP intends to vigorously defend the claims of the ’704 Patent. Although Straight Path IP believes that its patents are valid, they may be deemed invalid during the inter partes review.
	On August 1, 2013, Straight Path IP filed complaints in the United States District Court for the Eastern District of Virginia against Bandwidth.com, Inc., Telesphere Networks Ltd., and Vocalocity, Inc. claiming infringement of two of its patents (U.S. Patent Nos. 6,701,365 and 6,513,066). Straight Path IP seeks both damages and injunctive relief from the defendants. In January 2014, Straight Path IP entered into a confidential settlement and patent license agreement with Bandwidth.com, Inc. Discovery has concluded and the defendants, Telesphere and Vocalocity, have filed motions for summary judgment. On February 26, 2014, the Court issued a Markman ruling, which Straight Path IP believes is favorable to its claims. Trial is currently set for June 23, 2014, although the defendants have filed a motion to sever the trials, which may potentially require an additional trial.
	On August 1, 2013, Straight Path IP filed a complaint with the International Trade Commission (“ITC”) to institute an investigation against respondents AmTran Logistics, Inc., AmTran Technology Co., Ltd., LG Electronics, Inc., LG Electronics U.S.A., Inc., LG Electronics MobileComm U.S.A., Inc., Panasonic Corporation, Panasonic Corporation of North America, Sharp Corporation, Sharp Electronics Corporation, Sony Computer Entertainment, Inc., Sony Computer Entertainment America LLC, Sony Computer Entertainment America Inc., Sony Corporation, Sony Corporation of America, Sony Electronics, Inc., Sony Mobile Communications AB, Sony Mobile Communications (USA) Inc., Sony Ericsson Mobile Communications (USA) Inc., Toshiba Corporation, Toshiba America Inc., Toshiba America Information Systems, Inc., and Vizio, Inc. Straight Path IP alleges that the respondents infringe three of its patents (U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121). Straight Path IP seeks to exclude the allegedly infringing products from importation into the United States. On September 4, 2013, the ITC instituted the investigation. Discovery is ongoing. The Hearing is set for May 13-20, 2014 with an Initial Determination Date of September 9, 2014 and a Target Date of January 9, 2015. In January 2014, Straight Path IP, Sharp Corporation, and Sharp Electronics Corporation jointly filed a motion in the ITC to terminate the investigation, and the parties entered into a confidential settlement and patent license agreement.
	On August 1, 2013, Straight Path IP also filed complaints in the United States District Court for the Eastern District of Virginia against the same respondents in the ITC action, alleging infringement of the same three patents. Straight Path IP seeks damages in these actions. With a co-pending ITC investigation involving the same patents, the defendants are entitled by statute to a stay of the district court proceedings, and all of the matters have been stayed. These actions, except against the LG defendants, have been consolidated. Straight Path IP has served the complaints.
	On August 23, 2013, Straight Path IP filed complaints in the United States District Court for the Eastern District of Texas against Blackberry Ltd., Blackberry Corp., Huawei Investment & Holding Co., Ltd., Huawei Technologies Co., Ltd., Huawei Technologies USA, Inc., Huawei Devices USA, Inc., Samsung Electronics Co. Ltd., Samsung Electronics America, Inc., Samsung Telecommunications America, L.L.C., ZTE Corporation, and ZTE USA, Inc. alleging infringement of three of its patents (U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121). Straight Path IP seeks damages in these actions. Straight Path IP entered into a stipulation dismissing the foreign ZTE entity, ZTE Corporation, without prejudice in exchange for discovery against the remaining ZTE entity, ZTE USA. Discovery has begun, a Markman hearing is set for October 2014 and a pretrial conference has been set for October 2015.
	On November 5, 2013, Straight Path IP filed a complaint in the United States District Court for the Eastern District of Virginia against Vonage Holdings Corp., Vonage America, Inc., and Vonage Marketing LLC claiming infringement of four of its patents (U.S. Patent Nos. 6,009,469, 6,131,121, 6,513,066, and 6,701,365). Straight Path IP seeks both damages and injunctive relief from the defendants. In January 2014, the action was transferred to the District Court for the District of New Jersey. A scheduling order has not issued.
	On December 5, 2013, Sony Corporation filed three petitions at the USPTO for inter partes review of certain claims of U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121. Straight Path IP will have an opportunity to respond by March 21, 2014 and is expected to argue that the petitions should be denied. A decision as to whether the USPTO will grant the petitions is not expected for approximately three months from the March 21, 2014 response date. Although Straight Path IP believes that its patents are valid, they may be deemed invalid during the inter partes review.
	In addition to the foregoing, the Company may from time to time be subject to other legal proceedings that arise in the ordinary course of business. Although there can be no assurance in this regard, the Company does not expect any of those legal proceedings to have a material adverse effect on the Company’s results of operations, cash flows or financial condition.
	Other Commitments and Contingencies
	The Former SPSI CEO is entitled to receive payments from future revenues generated from the leasing, licensing or sale of rights in certain of Straight Path Spectrum’s wireless spectrum licenses. Those payments are to be made out of 50% of the covered revenue and are in a maximum aggregate amount of $4 million. The payments arise under the June 2013 settlement of certain claims and disputes with the Former SPSI CEO and parties related to the Former SPSI CEO. As of January 31, 2014, the Company has paid $0.1 million to the Former SPSI CEO for this obligation.
	Straight Path IP generally pays law firms that represent it in litigation against alleged infringers of its intellectual property rights a percentage of the amounts recovered ranging from 0% to 40% depending on several factors. One of such law firms has the right to 30% of the proceeds from any monetization of the Droplet patent portfolio, as such assets were received in settlement of litigation. The Droplet patent portfolio includes United States Patents Nos. 6,825,780; 6,847,317; 7,844,122; 7,525,463; 8,279,098; 7,436,329; 7,679,649 and a number of U.S. and foreign patent applications.

Equity_Tables

Equity (Tables)	6 Months Ended
	Jan. 31, 2014
Equity [Abstract]	'
Changes in the components of equity	'
		Six Months Ended
		31-Jan-14
		Attributable			Noncontrolling			Total
		to Straight Path			Interests
		(in thousands)
	Balance, July 31, 2013	$	14,229		$	(374	)	$	13,855
	Stock-based compensation		498			—			498
	Net loss		(1,118	)		(167	)		(1,285	)
	Balance, January 31, 2014	$	13,609		$	(541	)	$	13,068

Loss_Per_Share_Tables

Loss Per Share (Tables)	6 Months Ended
	Jan. 31, 2014
Loss Per Share [Abstract]	'
Shares were excluded from the diluted earnings per share computations	'
		Three Months Ended				Six Months Ended
		January 31,				January 31,
		2014		2013		2014		2013
		(in thousands)
	Stock options		30		—		30		—
	Non-vested restricted Class B common stock		474		1,002		474		1,002
	Shares excluded from the calculation of diluted loss per share		504		1,002		504		1,002

Related_Party_Transactions_Tab

Related Party Transactions (Tables)	6 Months Ended
	Jan. 31, 2014
Related Party Transactions [Abstract]	'
Schedule expenses incurred by related party charges	'
		Three Months Ended				Six Months Ended
		January 31,				January 31,
		2014		2013		2014		2013
		(in thousands)
	Included in direct cost of revenues	$	19	$	13	$	28	$	25
	Included in selling, general and administrative		319		135		592		316

Concentration_of_Customers_and1

Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum (Tables)	6 Months Ended
	Jan. 31, 2014
Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum [Abstract]	'
Revenues from transactions with a single customer	'
		Six Months Ended
		January 31,
		2014		2013
		(in thousands)
	TelePacific Communications	$	83	$	83
	AT&T		59	na

Business_Segment_Information_T

Business Segment Information (Tables)	6 Months Ended
	Jan. 31, 2014
Business Segment Information [Abstract]	'
Summary of operating results for the business segments	'
		Straight Path			Straight Path			Total
		Spectrum			IP
		(in thousands)
	Three Months Ended January 31, 2014
	Revenues	$	109		$	344		$	453
	Loss from operations		(175	)		(697	)		(872	)
	Three Months Ended January 31, 2013
	Revenues	$	136		$	93		$	229
	Income (loss) from operations		116			(524	)		(408	)
	Gain on sale of rights in wireless spectrum		150			—			150
	Six Months Ended January 31, 2014
	Revenues	$	216		$	364		$	580
	Loss from operations		(235	)		(1,107	)		(1,342	)
	Six Months Ended January 31, 2013
	Revenues	$	277		$	420		$	697
	Income (loss) from operations		80			(1,962	)		(1,882	)
	Gain on sale of rights in wireless spectrum		150			—			150
Summary of total assets for the business segments	'
		Straight Path			Straight Path			Total
		Spectrum			IP
					(in thousands)
	Total assets:
	31-Jan-14	$	6,037		$	14,370		$	20,407
	31-Jul-13		3,642			12,097			15,739

Basis_of_Presentation_Details_

Basis of Presentation (Details Textual)	Jan. 31, 2014	Jul. 31, 2013	Jan. 31, 2014	Jul. 31, 2013	Jan. 31, 2014	Jan. 31, 2014	Jul. 31, 2013	Jul. 31, 2013
In Thousands, unless otherwise specified	Common Stock [Member]	Common Stock [Member]	Common Stock [Member]	Common Stock [Member]	Straight Path Spectrum [Member]	Straight Path IP [Member]	Idt [Member]	Idt [Member]
	Common Class A [Member]	Common Class A [Member]	Common Class B [Member]	Common Class B [Member]			Common Class A [Member]	Common Class B [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)	'	'	'	'	'	'	'	'
Ownership in Straight Path Spectrum	'	'	'	'	100.00%	84.50%	'	'
Common stock shares distributed	787	787	11,008	10,693	'	'	'	'
Common stock, shares outstanding	787	787	11,008	10,693	'	'	1,600	21,400

Equity_Details

Equity (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013	Jul. 31, 2013	Jul. 31, 2012
Equity (Textual) [Abstract]	'	'	'	'	'	'
Beginning balance	'	'	$13,855	'	'	'
Stock-based compensation	'	'	498	1,226	'	'
Net loss	-868	-417	-1,285	-1,888	'	'
Ending Balance	13,068	'	13,068	'	13,855	'
Equity [Member]	'	'	'	'	'	'
Equity (Textual) [Abstract]	'	'	'	'	'	'
Beginning balance	'	'	14,229	'	'	'
Stock-based compensation	'	'	498	'	'	'
Net loss	'	'	-1,118	'	'	'
Ending Balance	13,609	'	13,609	'	'	'
Noncontrolling Interest [Member]	'	'	'	'	'	'
Equity (Textual) [Abstract]	'	'	'	'	'	'
Beginning balance	'	'	-374	'	'	'
Stock-based compensation	'	'	'	'	'	'
Net loss	'	'	-167	'	'	'
Ending Balance	($541)	'	($541)	'	'	'

Equity_Details_Textual

Equity (Details Textual) (USD $)	12 Months Ended	0 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended		1 Months Ended	6 Months Ended	0 Months Ended
	Jul. 31, 2013	Aug. 06, 2013	Jan. 31, 2014	Jul. 31, 2012	Jan. 31, 2014	Jan. 31, 2014	Jan. 31, 2014	Jan. 31, 2014	Aug. 06, 2013
	IDT (Member)	Class B common stock [Member]	Class B common stock [Member]	Class B common stock [Member]	Class B common stock [Member]	Class B common stock [Member]	Class B common stock [Member]	Class B common stock [Member]	Class B common stock [Member]
					Chief Executive Officer [Member]	Chief Financial Officer [Member]	Non Employee Director [Member]	Non Employee Director [Member]	Consultants [Member]
Equity (Textual)	'	'	'	'	'	'	'	'	'
Stock issued during period, Shares	'	'	'	'	229,608	38,268	24,000	3,750	10,100
Aggregate fair value	'	$100,000	$1,500,000	'	'	'	$200,000	$21,263	'
Options exercise price	'	'	$5.67	'	'	'	'	'	'
Distributed shares	'	'	'Stock issued by IDT and the 1 for 2 distribution ratio of the Spin-Off	'	'	'	'	'	'
Description of restricted shares vesting condition	'	'	'	'	'Grants of restricted shares will vest as to one-third of the granted shares on each of August 2, 2014, 2015 and 2016, unless otherwise determined by the Compensation Committee of the Company's Board of Directors.	'Grants of restricted shares will vest as to one-third of the granted shares on each of August 2, 2014, 2015 and 2016, unless otherwise determined by the Compensation Committee of the Company's Board of Directors.	'	'	'
Options to purchase number of shares at time of spin off	641,567	'	'	32,155	'	'	'	'	'

Loss_Per_Share_Details

Loss Per Share (Details)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Earnings Per Share, Diluted, Other Disclosures [Abstract]	'	'	'	'
Shares excluded from the calculation of diluted loss per share	504	1,002	504	1,002
Non-vested restricted Class B common stock [Member]	'	'	'	'
Earnings Per Share, Diluted, Other Disclosures [Abstract]	'	'	'	'
Shares excluded from the calculation of diluted loss per share	474	1,002	474	1,002
Stock options [Member]	'	'	'	'
Earnings Per Share, Diluted, Other Disclosures [Abstract]	'	'	'	'
Shares excluded from the calculation of diluted loss per share	30	'	30	'

Related_Party_Transactions_Det

Related Party Transactions (Details) (Transition Service Agreement [Member], IDT [Member], USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Transition Service Agreement [Member] | IDT [Member]	'	'	'	'
Related Party Transaction, Due from (to) Related Party [Abstract]	'	'	'	'
Included in direct cost of revenues	$19	$13	$28	$25
Included in selling, general and administrative expenses	$319	$135	$592	$316

Related_Party_Transactions_Det1

Related Party Transactions (Details Textual) (IDT (Member), USD $)	3 Months Ended	6 Months Ended
In Millions, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2014
IDT (Member)	'	'
Related Party Transactions Textual [Abstract]	'	'
Income From Payments Of Liabilities	'	$0.10

Concentration_of_Customers_and2

Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Revenues	$453	$229	$580	$697
Straight Path Spectrum [Member]	'	'	'	'
Revenues	109	136	216	277
AT&T[Member] | Straight Path Spectrum [Member]	'	'	'	'
Revenues	'	'	59	'
TelePacific Communications [Member] | Straight Path Spectrum [Member]	'	'	'	'
Revenues	'	'	$83	$83

Concentration_of_Customers_and3

Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum (Details Textual) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended	12 Months Ended	3 Months Ended	6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2013	Jan. 31, 2013	Jul. 31, 2012	Jan. 31, 2013	Jan. 31, 2013
					Straight Path Spectrum [Member]	Straight Path Spectrum [Member]	Straight Path Spectrum [Member]	Straight Path IP [Member]	Straight Path IP [Member]
Concentration Of Customers And Gain On Sale Of Rights In Wireless Spectrum (Textuals)	'	'	'	'	'	'	'	'	'
Cash Received from Exchange of Licenses	'	'	'	'	'	'	$6,800,000	'	'
Gain on Exchange of Licenses	'	$150,000	'	$150,000	$150,000	$150,000	$5,300,000	'	'

Business_Segment_Information_D

Business Segment Information (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013	Jul. 31, 2012
Summary of operating results for the business segments	'	'	'	'	'
Revenues	$453	$229	$580	$697	'
Loss from operations	-872	-408	-1,342	-1,882	'
Gain on sale of rights in wireless spectrum	'	150	'	150	'
Straight Path Spectrum [Member]	'	'	'	'	'
Summary of operating results for the business segments	'	'	'	'	'
Revenues	109	136	216	277	'
Loss from operations	-175	116	-235	80	'
Gain on sale of rights in wireless spectrum	'	150	'	150	5,300
Straight Path IP [Member]	'	'	'	'	'
Summary of operating results for the business segments	'	'	'	'	'
Revenues	344	93	364	420	'
Loss from operations	-697	-524	-1,107	-1,962	'
Gain on sale of rights in wireless spectrum	'	'	'	'	'

Business_Segment_Information_D1

Business Segment Information (Details 1) (USD $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, unless otherwise specified
Summary of total assets for the business segments	'	'
Total assets:	$20,407	$15,739
Straight Path Spectrum [Member]	'	'
Summary of total assets for the business segments	'	'
Total assets:	6,037	3,642
Straight Path IP [Member]	'	'
Summary of total assets for the business segments	'	'
Total assets:	$14,370	$12,097

Business_Segment_Information_D2

Business Segment Information (Details Textual)	6 Months Ended
	Jan. 31, 2014
	Segments
Business Segment Information [Abstract]	'
Reportable Segments	2

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	6 Months Ended		1 Months Ended		6 Months Ended	0 Months Ended
	Jan. 31, 2014	Jan. 31, 2014	Jun. 30, 2013	31-May-11	Jan. 31, 2014	Mar. 15, 2013
	Maximum [Member]	Minimum [Member]	Straight Path Spectrum [Member]	Straight Path IP [Member]	Straight Path IP [Member]	Straight Path IP [Member]
			Former Chief Executive Officer [Member]			Former Chief Executive Officer [Member]
Commitments and Contingencies (Textual)	'	'	'	'	'	'
Outstanding common stock of Straight Path IP Percentage	'	'	'	5.00%	'	5.00%
Compensatory damages	'	'	'	'	'	$35,000,000
Payments to be made from revenue, percentage	'	'	50.00%	'	'	'
Maximum aggregate amount to be covered from revenue	'	'	4,000,000	'	'	'
Cumulative amount paid for payment from future revenues from spectrum obligation	'	'	100,000	'	'	'
Recoverable contingency patents allegedly infringed, percentage	40.00%	0.00%	'	'	'	'
Settlement of litigation, description	'	'	'	'	'Straight Path IP generally pays law firms that represent it in litigation against alleged infringers of its intellectual property rights a percentage of the amounts recovered ranging from 0% to 40% depending on several factors. One of such law firms has the right to 30% of the proceeds from any monetization of the Droplet patent portfolio, as such assets were received in settlement of litigation.	'
Pending arbitration unsubstantiated valuation assertion amount	'	'	'	'	'	$5,000,000,000