Straight Path Communications 10-Q 10 Dec 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 31, 2015	Dec. 09, 2015
Entity Registrant Name	Straight Path Communications Inc.
Entity Central Index Key	1,574,460
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Document Type	10-Q
Trading Symbol	strp
Document Period End Date	Oct. 31, 2015
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016
Entity Filer Category	Accelerated Filer
Class A
Entity Common Stock, Shares Outstanding		787,163
Class B
Entity Common Stock, Shares Outstanding		11,353,877

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 16,307	$ 18,620
Trade accounts receivable, net of allowance for doubtful accounts of $0 and $0, respectively	84	82
Prepaid expenses - related to settlements and licensing		783
Other current assets	354	273
Total current assets	16,745	19,758
Prepaid expenses - development agreement	1,000
Intangible assets	365	365
Other assets	110	115
Total Assets	18,220	20,238
Current liabilities:
Trade accounts payable	144	238
Accrued expenses	596	828
Deferred revenue	44	1,646
Income taxes payable	225	225
Total current liabilities	1,009	2,937
Deferred revenue - long-term portion	104	105
Total liabilities	$ 1,113	$ 3,042
Commitments and contingencies
Straight Path Communications Inc. stockholders' equity:
Preferred stock, $0.01 par value; 3,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	$ 19,408	$ 17,316
(Accumulated deficit) retained earnings	(560)	72
Treasury stock, 42 shares at cost	(480)	(480)
Total Straight Path Communications Inc. stockholders' equity	18,490	18,524
Noncontrolling interests	(1,383)	(1,328)
Total equity	17,107	17,196
Total liabilities and equity	18,220	20,238
Common Stock | Class A
Straight Path Communications Inc. stockholders' equity:
Common stock	8	8
Total equity	8	8
Common Stock | Class B
Straight Path Communications Inc. stockholders' equity:
Common stock	114	113
Total equity	$ 114	113
Common Stock | To be issued
Straight Path Communications Inc. stockholders' equity:
Common stock		1,495
Total equity		$ 1,495

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Net of allowance for doubtful accounts (in dollars)	$ 0	$ 0
Preferred stock, Par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, Shares authorized	3,000	3,000
Preferred stock, Shares issued	0	0
Preferred stock, Shares outstanding	0	0
Treasury stock, shares	42	42
Common Stock | Class A
Common stock, Par value (in dollars per share)	$ 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 | Class B
Common stock, Par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Shares authorized	40,000	40,000
Common stock, Shares issued	11,396	11,308
Common stock, Shares outstanding	11,354	11,266
Common Stock | To be issued
Common stock, Shares issued	0	60,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Statements of Operations [Abstract]
Revenues	$ 1,703	$ 4,823
Costs and expenses:
Direct cost of revenues	782	2,108
Selling, general and administrative	1,612	1,103
Total costs and expenses	2,394	3,211
(Loss) income from operations	(691)	1,612
Other income:
Interest income	10	9
Other income		23
Total other income	10	32
(Loss) income before income taxes	(681)	1,644
Provision for income taxes	(6)	(755)
Net (loss) income	(687)	889
Net loss (income) attributable to noncontrolling interests	55	(183)
Net (loss) income attributable to Straight Path Communications Inc.	$ (632)	$ 706
Earnings (loss) per share attributable to Straight Path Communications Inc. stockholders:
Basic (in dollars per share)	$ (0.05)	$ 0.06
Diluted (in dollars per share)	$ (0.05)	$ 0.06
Weighted-average number of shares used in calculation of earnings (loss) per share:
Basic (in shares)	11,810	11,398
Diluted (in shares)	11,810	11,803

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (Unaudited) - 3 months ended Oct. 31, 2015 - USD ($) $ in Thousands	Total	Additional Paid-In Capital	(Accumulated Deficit) Retained Earnings	Treasury Stock	Noncontrolling Interests	Class ACommon Stock	Class BCommon Stock	To Be IssuedCommon Stock
Balance at Jul. 31, 2015	$ 17,196	$ 17,316	$ 72	$ (480)	$ (1,328)	$ 8	$ 113	$ 1,495
Balance (in shares) at Jul. 31, 2015						787	11,308
Common stock issued or to be issued for compensation	598	$ 2,092					$ 1	$ (1,495)
Common stock issued for compensation (in Shares)							88
Net loss	(687)		$ (632)		$ (55)
Balance at Oct. 31, 2015	$ 17,107	$ 19,408	$ (560)	$ (480)	$ (1,383)	$ 8	$ 114
Balance (in shares) at Oct. 31, 2015						787	11,396

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Operating activities:
Net (loss) income	$ (687)	$ 889
Adjustments to reconcile net (loss) income to net cash (used in ) provided by operating activities:
Common stock issued or to be issued for compensation	598	383
Deferred tax assets		755
Changes in assets and liabilities:
Trade accounts receivable, net	(2)	(17)
Prepaid expenses - related to settlements and licensing	783	1,140
Other current assets	(81)	(120)
Prepaid expenses - development agreement	(1,000)
Other assets	5	(2)
Trade accounts payable	(94)	276
Accrued expenses	(232)	(497)
Due to IDT Corporation		(6)
Deferred revenue	(1,603)	(2,278)
Income taxes payable		(82)
Net cash (used in) provided by operating activities	(2,313)	441
Financing activities
Common stock issued upon exercise of stock options		7
Net cash provided by financing activities		7
Net (decrease) increase in cash and cash equivalents	(2,313)	448
Cash and cash equivalents at beginning of period	18,620	21,232
Cash and cash equivalents at end of period	16,307	21,680
Supplemental schedule of noncash activities
Common stock withheld for payroll tax purposes		348
Supplemental cash flow information
Cash paid during the period for income taxes	$ 3	$ 82

Basis of Presentation

Basis of Presentation	3 Months Ended
	Oct. 31, 2015
Basis Of Presentation [Abstract]
Basis of Presentation	Note 1—Basis of Presentation The accompanying unaudited 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 months ended October 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2016. The balance sheet at July 31, 2015 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, 2015, as filed with the U.S. Securities and Exchange Commission (the “SEC”). Straight Path, a Delaware corporation, was incorporated in April 2013. Straight Path’s businesses consist of an indirect 100% ownership of Straight Path Spectrum, Inc. (“Straight Path Spectrum”) and an indirect 84.5% ownership of Straight Path IP Group, Inc. (“Straight Path IP Group”). In these financial statements, the "Company” refers to Straight Path, Straight Path Spectrum and Straight Path IP Group on a consolidated basis. All material intercompany balances and transactions have been eliminated in consolidation. 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 (“Class A common stock”) and Class B (“Class B common stock”). 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 approximately 787,000 shares of its 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 2016 refers to the fiscal year ending July 31, 2016).

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recent Pronouncements	3 Months Ended
	Oct. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Recent Pronouncements	Note 2—Summary of Significant Accounting Policies and Recent Pronouncements The Company’s significant accounting policies are described in Note 1 of the Notes to Combined and Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended July 31, 2015. In May 2014, ASU No. 2014-09, “ Revenue from Contracts with Customers ASU 2014-09 was scheduled to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. In August 2015, the FASB issued ASU 2015-14, “R evenue from Contracts with Customers (Topic 606): Deferral of Effective Date In June 2014, ASU 2014-12, “ Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In June 2014, ASU 2014-15, “ Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2015, the FASB issued ASU 2015-01, “ Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In February 2015, the FASB issued ASU NO. 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In November 2015, the FASB issued ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying financial statements.

Equity

Equity	3 Months Ended
	Oct. 31, 2015
Equity [Abstract]
Equity	Note 3—Equity Issuances of Class B Common Stock: Class B common stock activity for the three months ended October 31, 2015 was as follows: 1. The Company issued 28,000 shares to an employee as compensation. 2. The Company issued 60,000 shares to Davidi Jonas (“Jonas”), the Company’s Chief Executive Officer and President, as compensation. See Stock-Based Compensation below for a further discussion. Treasury Stock for Payroll Tax Withholding: Treasury stock consists of shares of Class B common stock that were tendered by employees of ours to satisfy the employees’ tax withholding obligations in connection with the lapsing of restrictions on awards of restricted stock. The fair market value of the shares tendered was based on the trading day immediately prior to the vesting date and the proceeds utilized to pay the withholding taxes due upon such vesting event. At both October 31, 2015 and July 31, 2015, there were 41,723 shares of treasury stock at a value of $480,392. Stock-Based Compensation: From time to time, the Company issues Class B common stock and options to purchase Class B common stock to non-employee directors, officers, employees and other service providers. On October 8, 2015, the Company approved an amendment and restatement of the Company’s 2013 Stock Option and Incentive Plan (“2013 Plan”) that will increase the number of shares of the Company’s Class B common stock available for the grant of awards thereunder by 475,000 shares. The amendment and restatement of the 2013 Plan is subject to stockholder approval and has been placed on the agenda for the upcoming Annual Meeting of Stockholders of the Company. Issuances of Class B common stock included in stock-based compensation for the three months ended October 31, 2015 are as follows: On July 23, 2015, the Compensation Committee of the Board approved the issuance to Jonas of 60,000 shares of Class B common stock for services performed for the entire fiscal year of 2015, ending July 31, 2015, subject to ratification by the CFO Jonathan Rand. The shares vested immediately upon ratification. The aggregate fair value of the issuance was $1,494,900 and was charged as stock compensation in Fiscal 2015. The shares were issued on August 7, 2015. As of July 31, 2015, such shares were classified as common stock to be issued. In October 2015, the Company granted an employee 28,000 restricted shares of Class B common stock. 4,000 of the shares vest on April 4, 2016. The balance of the shares will vest as to one-third of the granted shares on each of October 16, 2016, 2017 and 2018. The aggregate fair value of the grant was $1,052,000 which is being charged to expense on a straight-line basis over the vesting period. Stock-based compensation is included in selling, general and administrative expense and amounted to $597,798 and $383,262 for the three months ended October 31, 2015 and 2014, respectively. As of October 31, 2015, there was approximately $3.7 million of total unrecognized compensation cost related to non-vested restricted shares. The Company expects to recognize the unrecognized compensation cost as follows: Fiscal 2016 - $1.6 million, Fiscal 2017 - $1.3 million, Fiscal 2018 - $700,000 and Fiscal 2019 - $127,000.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	3 Months Ended
	Oct. 31, 2015
Earnings (Loss) Per Share [Abstract]
Earnings (Loss) Per Share	Note 4—Earnings (Loss) Per Share Basic earnings (loss) 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 would be anti-dilutive. Three Months Ended October 31, 2015 2014 (in thousands) Basic weighted-average number of shares 11,810 11,398 Effect of dilutive securities: Shares underlying stock options — 10 Non-vested restricted Class B common stock — 395 Diluted weighted-average number of shares 11,810 11,803 The following shares were excluded from the diluted loss per share computations because their inclusion would have been anti-dilutive: Three Months Ended October 31, 2015 2014 (in thousands) Shares underlying stock options 2 — Non-vested restricted Class B common stock 239 — Shares excluded from the calculation of diluted loss per share 241 — For the three months ended October 31, 2015, 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	3 Months Ended
	Oct. 31, 2015
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, to distribute the Company’s common stock to IDT’s stockholders and set forth certain understandings related to the Spin-Off. These agreements govern the relationship between the Company and IDT after the distribution and also 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 year ended July 31, 2014, IDT paid approximately $386,000 pursuant to this obligation, which was recorded as “Income from IDT Corporation payments of liabilities” in the consolidated statement of operations. No payments were received in Fiscal 2015 or Fiscal 2016. At the Spin-Off, the Company entered into a Transition Services Agreement (“TSA”) with IDT, pursuant to which IDT has provided 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. As of January 1, 2015, all of these services are being provided by other vendors. The Company and IDT have extended the TSA until July 31, 2015 enabling the Company to seek input from IDT on an ad hoc basis if the Company deems necessary. No services were provided under the TSA in the three months ended October 31, 2015. IDT charged the Company for certain transactions and allocates routine expenses based on specific items prior to January 1, 2015. Specifically, IDT allocated payroll, benefits, insurance, facilities and other expenses to the Company, which were included in “Selling, general and administrative expense” in the consolidated statements of operations. In addition, IDT charged the Company for regulatory fees, connectivity charges and legal expenses, which were included in “Direct cost of revenues” in the consolidated statements of operations. In July 2015, legal expenses totaling $513,481 that were paid by IDT on behalf of the Company were forgiven. The Company recognized the transaction as an increase of additional paid-in capital. 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 October 31, 2015 2014 (in thousands) Included in direct cost of revenues $ — $ — Included in selling, general and administrative — 421

Concentration of Customers

Concentration of Customers	3 Months Ended
	Oct. 31, 2015
Concentration of Customers [Abstract]
Concentration of Customers	Note 6—Concentration of Customers Straight Path Spectrum’s revenues from transactions with a single customer that amounted to 10% or more of total Straight Path Spectrum revenues were as follows: Three Months Ended October 31, 2015 2014 (in thousands) Customer 1 $ 41 $ 41 Customer 2 21 24 Customer 3 15 10 The loss of any of these major customers may have a material adverse effect on the Company’s results of operations and cash flows.

Income Taxes

Income Taxes	3 Months Ended
	Oct. 31, 2015
Income Taxes [Abstract]
Income Taxes	Note 7—Income Taxes Because of the way it is structured, Straight Path and its subsidiaries file the following income tax returns. Straight Path Spectrum files its own tax returns. There is no provision for Straight Path Spectrum for Fiscal 2016 and Fiscal 2015 as it incurred a taxable loss in both periods. In addition, there is a 100% valuation allowance against the net operating losses generated by Straight Path Spectrum at both October 31, 2015 and 2014. The operations of Straight Path IP Group are included in the consolidated tax return of Straight Path. There is no provision for Straight Path for Fiscal 2016 as it incurred a taxable loss. In addition, there is a 100% valuation allowance against the net operating losses generated by Straight Path at October 31, 2015. The provision in Fiscal 2016 represents state income taxes. The provision in Fiscal 2015 represents estimated accrual of federal and state income taxes.

Business Segment Information

Business Segment Information	3 Months Ended
	Oct. 31, 2015
Business Segment Information [Abstract]
Business Segment Information	Note 8—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 owns 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 Spectrum Straight Path IP Total (in thousands) Three Months Ended October 31, 2015 Revenues $ 105 $ 1,598 $ 1,703 Loss from operations (334 ) (357 ) (691 ) Three Months Ended October 31, 2014 Revenues $ 96 $ 4,727 $ 4,823 (Loss) income from operations (297 ) 1,909 1,612 Total assets for the business segments of the Company were as follows: Straight Path Spectrum Straight Path IP Total (in thousands) Total assets: October 31, 2015 (unaudited) $ 6,473 $ 11,747 $ 18,220 July 31, 2015 5,637 14,601 20,238 None of the Company’s revenues were generated outside of the United States for either Fiscal 2016 or Fiscal 2015. The Company did not have any assets outside the United States at October 31, 2015 or July 31, 2015.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Oct. 31, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 9—Commitments and Contingencies Legal Proceedings Putative Class Action On November 13, 2015, a complaint for a putative shareholder class action was filed in the federal district court for the District of New Jersey against Straight Path Communications Inc. (the “Company”), Davidi Jonas, and Jonathan Rand (the “individual defendants”). The named plaintiff is Darlan Zacharia, and the action is purportedly brought on behalf of all those who purchased or otherwise acquired our common stock between October 29, 2013, and November 5, 2015. The plaintiff requested that each of the three defendants waive service, and the defendants have until January 15, 2016, to respond to that request and to the complaint. The complaint alleges violations of (i) Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 of the Exchange Act against the Company for materially false and misleading statements that were designed to influence the market relating to Straight Path’s finances and business prospects; and (ii) Section 20(a) of the Exchange Act against the individual defendants for wrongful acts by controlling persons. The allegations center on the claim that the Company made materially false and misleading statements in its public filings and conference calls during the relevant class period concerning the Company’s spectrum licenses and the prospects for its spectrum business. The complaint seeks certification of a class, unspecified damages, fees and costs. The Company is aware of press reports regarding the filing of additional complaints for putative class actions revolving around the same facts and circumstances, but the Company is not aware of any other complaint that was filed or served. The Company intends to vigorously defend these claims, and is in the process of evaluating its strategy and potential exposure. Sipnet Appeal On April 11, 2013, Sipnet EU S.R.O., a Czech company, (“Petitioner”) filed a petition for an inter partes review (“IPR”) at the Patent Trial and Appeals Board of the United States Patent and Trademark Office (the “PTAB”) for certain claims of U.S. Patent 6,108,704 (the “’704 Patent”). On October 9, 2014, the PTAB issued an administrative decision that claims 1-7 and 32-42 of the ’704 Patent are unpatentable. On November 10, 2014, Straight Path IP Group filed a Notice of Appeal at the United States Court of Appeals for the Federal Circuit and at the PTAB (“Sipnet Appeal”). On November 25, 2015, the Federal Circuit Court of Appeals issued a decision in the Sipnet Appeal that reversed the PTAB’s cancellation of all challenged claims, and remanded the matter back to the PTAB Board for proceedings consistent with its opinion. The decision of the PTAB had a materially adverse impact on our intellectual property enforcement efforts. During the pendency of the Sipnet Appeal and outstanding IPRs, all litigation related to the relevant patents that was brought by us as plaintiff had been stayed or dismissed without prejudice, and therefore, we have not moved forward with actions against Samsung Electronics Company et al (“Samsung”), LG Electronics, Inc. et al (“LG”), Toshiba Corporation et al (“Toshiba”), Vizio, Inc. (“Vizio”), Apple Inc. (“Apple”), Avaya Inc. (“Avaya”), Cisco Systems, Inc. (“Cisco”), or Verizon Communications, Inc. (“Verizon”). Straight Path IP Group is working with counsel to developing its plans for re-commencement of its enforcement efforts while awaiting action by the PTAB consistent with the favorable decision in the Sipnet appeal. Additional IPRs On August 22, 2014, Samsung filed three petitions with the PTAB for IPR of certain claims of U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121. Straight Path IP Group filed the Patent Owner’s Preliminary Statement in each of these proceedings on December 9, 2014. On March 6, 2015, the PTAB instituted the requested IPR of these claims based on Samsung’s petitions, citing certain findings in the Sipnet decision. On June 8, 2015, Straight Path IP Group filed its Patent Owner’s Response to the institution. On June 15, 2015, Cisco Systems, Inc. and Avaya Inc. joined this instituted IPR. On November 18, 2015, Straight Path IP Group defended these patents at a hearing before the PTAB. On October 31, 2014, LG, Toshiba, Vizio and Hulu, LLC (“Hulu”) filed three petitions with the PTAB for IPR of certain claims of U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121. Straight Path IP Group filed the Patent Owner’s Preliminary Statements for U.S. Patent No. 6,131,121 on February 18, 2015 and U.S. Patent Nos. 6,108,704 and 6,009,469 on February 20, 2015. On May 15, 2015, the PTAB instituted the requested IPR of these claims based on these petitions, citing certain findings in the Sipnet decision. On June 15, 2015, Cisco Systems, Inc. and Avaya Inc. filed three related petitions and requested to join the instituted IPRs. Also, on June 15, 2015, Verizon Services Corp. and Verizon Business Network Services Inc. filed related petitions on the ’704 and ’121 patents and requested to join the instituted IPRs. On November 10, 2015, the PTAB joined Cisco and Avaya in the three LG IPRs. On November 24, 2015, the PTAB joined Verizon in the LG IPRs for the ’704 patent and the ’469 patent. On September 28, 2015, Cisco, Avaya and Verizon filed a petition for an IPR petition with the PTAB for all claims of U.S. Patent No. 6,701,365. Straight Path IP Group’s Preliminary Response is due in January 2016. This petition has not been granted at this time. Patent Enforcement On August 1, 2013, Straight Path IP Group filed complaints in the United States District Court for the Eastern District of Virginia against LG, Toshiba and Vizio, alleging infringement of three of its patents (U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121), and seeking damages related to such infringement. The actions against LG, Toshiba, and Vizio have been consolidated (“consolidated action”). In October 2014, Hulu intervened in the action as to Hulu’s streaming functionality in the accused products. In that same month, Amazon.com, Inc. (“Amazon”) moved to intervene, sever, and stay claims related to Amazon’s streaming functionality in the accused products. On October 13, 2014, Amazon filed an action seeking declaratory relief of non-infringement of Straight Path IP Group’s U.S. Patent Nos. 6,009,469, 6,108,704, and 6,131,121 in the U.S. District Court for the Northern District of California based in part on the allegations related to the actions in Virginia (“Amazon action”). On December 5, 2014, Straight Path IP Group filed a motion to dismiss Amazon’s complaint, or in the alternative, to transfer venue to Virginia. On May 28, 2015, the California court transferred the matter to Virginia. In November 2014, Straight Path IP Group, defendants, and Hulu jointly moved to stay the consolidated action pending the completion of the defendants’ and Hulu’s IPR petitions of the asserted patents and the completion of the Sipnet Appeal. On November 4, 2014, the court granted the parties’ request and also held the briefing in the Amazon intervention in abeyance. The Amazon action has been stayed but not yet consolidated with the other matters pending in Virginia. On August 23, 2013, Straight Path IP Group filed a complaint in the United States District Court for the Eastern District of Texas against Samsung alleging infringement of three of its patents (U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121) and seeking damages related to such infringement. In September 2014, Straight Path IP Group and Samsung jointly filed a motion to stay the action. On October 29, 2014, the court granted the motion and stayed the action pending the outcome of the Sipnet Appeal and the IPR petitions filed by Samsung. On September 24, 2014, Straight Path IP Group filed complaints against each of Apple, Avaya, and Cisco in the United States District Court for the Northern District of California. Straight Path IP Group claims that (a) Apple’s telecommunications products, including FaceTime software, infringe four of its patents (U.S. Patent Nos. 6,108,704, 6,131,121, 6,701,365, and 7,149,208); that (b) Avaya’s IP telephony, video conference and telepresence products such as Defendant’s Aura Platform infringe four of its patents (U.S. Patent Nos. 6,009,469, 6,108,704, 6,131,121, and 6,701,365); and (c) Cisco’s IP telephony, video conference and telepresence products such as the Unified Communications Solutions infringe four of its patents (U.S. Patent Nos. 6,009,469, 6,108,704, 6,131,121, and 6,701,365). On December 24, 2014, Straight Path IP Group dismissed the complaints against Avaya and Cisco without prejudice. On January 5, 2015, Straight Path IP Group dismissed the complaint against Apple without prejudice. On September 26, 2014, Straight Path IP Group filed a complaint against Verizon in the United States District Court for the Southern District of New York. Straight Path IP Group claims Verizon’s telephony products such as its Advanced Communications Products, including Unified Communications and Collaboration and VOIP infringe three of its patents (U.S. Patent Nos. 6,108,704, 6,131,121, and 6,701,365). On November 24, 2014, Straight Path IP Group dismissed the complaint without prejudice subject to a confidential Standstill Agreement with Verizon. Straight Path IP Group 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. Arbitration with the Former SPIP CEO On December 11, 2012, Straight Path IP Group filed a demand for arbitration seeking a declaration that the former Chief Executive Officer of Straight Path IP (the “Former SPIP CEO”) 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 sought certain declarations related to the termination of his employment, and certain payments and the vesting of options to purchase common stock representing 5% of the outstanding common stock of Straight Path IP Group, damages for unpaid compensation and severance, a sum in excess of $35 million in compensatory damages, and punitive damages in an unspecified amount. On February 26, 2015, the Arbitrator issued his Final Award. The Arbitrator concluded that the Former SPIP CEO is not entitled to any further compensation and does not have any entitlement to equity interests in Straight Path IP Group. On May 27, 2015, the Former SPIP CEO filed a petition in the Supreme Court of the State of New York, County of New York to vacate the arbitration award and requesting damages for $3.5 million. The petition was removed to the United States District Court, Southern District of New York. The Former SPIPG CEO amended the petition to vacate in September 2015, which SPIPG opposed. On November 11, 2015, the District Court issued its opinion and order and denied the Former SPIPG CEO’s petition and confirmed the Arbitration Award. Under the terms of the Separation Agreement between the Company and IDT 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. 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. Agreement with Cambridge Broadband Networks Ltd. (“CBNL”) On September 11, 2015, the Company entered into an agreement with CBNL to expedite production of a 39 GHz point-to-multipoint (“PMP”) radio for a fee of $1,000,000. Terms of the agreement include the following: 1. The agreement provides for several milestones for which the Company can receive refunds of all or a portion of the fee paid if such milestones are not reached. 2. In the event that CBNL does not release a PMP radio by March 2017 (the twenty (20) month anniversary of the effective date of the agreement), the relevant portion of the fee will be refunded to the Company. 3. The agreement provides for penalty fees if CBNL does not meet specific delivery dates. 4. In addition, the agreement enables the Company to purchase approximately 300 of the 39 GHz radios at favorable terms, once they are commercially available. As none of the milestones have been reached as of October 31, 2015, the fee has been classified as a prepaid expense in the consolidated balance sheet. Lease Commitment Effective December 1, 2015, the Company began leasing a laboratory in Plano, Texas. The lease term expires on December 31, 2018 and the average annual rental under the lease is approximately $18,000. FCC License Renewal As of October 24, 2013, Straight Path Spectrum has eight hundred twenty eight (828) 39 GHz Economic Area (“EA”) licenses with an expiration date of October 18, 2020. Straight Path Spectrum has filed its substantial service performance filings for its 39 GHz EA licenses, and these showings have been accepted by the FCC, which is effective for the current period of the licenses, through 2020. In addition, Straight Path Spectrum holds one hundred and thirty three (133) 28 GHz Basic Trading Area (“BTA”) licenses, of which 14 licenses expire on August 10, 2018, 118 licenses expire on September 21, 2018, and the New York City LMDS license expires on February 1, 2016. Straight Path Spectrum has filed its substantial service performance filings for its 28 GHz BTA licenses, and these showings have been accepted by the FCC, which is effective for the current period of the licenses. Other Commitments and Contingencies The former Chief Executive Officer of Straight Path Spectrum (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 $3.25 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. Approximately $0 and $14,000 was incurred to the Former SPSI CEO for this obligation for Fiscal 2016 and Fiscal 2015, respectively.

Summary of Significant Accoun16

Summary of Significant Accounting Policies and Recent Pronouncements (Policies)	3 Months Ended
	Oct. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Recent Pronouncements	Note 2—Summary of Significant Accounting Policies and Recent Pronouncements The Company’s significant accounting policies are described in Note 1 of the Notes to Combined and Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended July 31, 2015. In May 2014, ASU No. 2014-09, “ Revenue from Contracts with Customers ASU 2014-09 was scheduled to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. In August 2015, the FASB issued ASU 2015-14, “R evenue from Contracts with Customers (Topic 606): Deferral of Effective Date In June 2014, ASU 2014-12, “ Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In June 2014, ASU 2014-15, “ Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2015, the FASB issued ASU 2015-01, “ Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In February 2015, the FASB issued ASU NO. 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In November 2015, the FASB issued ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying financial statements.

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	3 Months Ended
	Oct. 31, 2015
Earnings (Loss) Per Share [Abstract]
Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings per share	Three Months Ended October 31, 2015 2014 (in thousands) Basic weighted-average number of shares 11,810 11,398 Effect of dilutive securities: Shares underlying stock options — 10 Non-vested restricted Class B common stock — 395 Diluted weighted-average number of shares 11,810 11,803
Summary of shares excluded from the diluted earnings per share computations	Three Months Ended October 31, 2015 2014 (in thousands) Shares underlying stock options 2 — Non-vested restricted Class B common stock 239 — Shares excluded from the calculation of diluted loss per share 241 —

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Oct. 31, 2015
Related Party Transactions [Abstract]
Schedule of expenses incurred on related party transactions	Three Months Ended October 31, 2015 2014 (in thousands) Included in direct cost of revenues $ — $ — Included in selling, general and administrative — 421

Concentration of Customers (Tab

Concentration of Customers (Tables)	3 Months Ended
	Oct. 31, 2015
Concentration of Customers [Abstract]
Schedule of revenues from transactions with single customer	Three Months Ended October 31, 2015 2014 (in thousands) Customer 1 $ 41 $ 41 Customer 2 21 24 Customer 3 15 10

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Oct. 31, 2015
Business Segment Information [Abstract]
Summary of operating results for the business segments	Straight Path Spectrum Straight Path IP Total (in thousands) Three Months Ended October 31, 2015 Revenues $ 105 $ 1,598 $ 1,703 Loss from operations (334 ) (357 ) (691 ) Three Months Ended October 31, 2014 Revenues $ 96 $ 4,727 $ 4,823 (Loss) income from operations (297 ) 1,909 1,612
Summary of total assets for the business segments	Straight Path Spectrum Straight Path IP Total (in thousands) Total assets: October 31, 2015 (unaudited) $ 6,473 $ 11,747 $ 18,220 July 31, 2015 5,637 14,601 20,238

Basis of Presentation (Detail T

Basis of Presentation (Detail Textuals) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2015	Jul. 31, 2015	Jul. 31, 2013
Common Stock | Class A
Basis of Presentation (Textual)
Common stock shares distributed	787	787	787
Common stock, shares outstanding	787	787
Common Stock | Class B
Basis of Presentation (Textual)
Common stock shares distributed	11,396	11,308	10,700
Common stock, shares outstanding	11,354	11,266
Straight Path Spectrum
Basis of Presentation (Textual)
Ownership in straight path spectrum	100.00%
Straight Path IP
Basis of Presentation (Textual)
Ownership in straight path spectrum	84.50%
IDT | Class B
Basis of Presentation (Textual)
Common stock, shares outstanding			21,400

Equity (Detail Textuals)

Equity (Detail Textuals) - Class B - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jul. 23, 2015	Oct. 31, 2015	Oct. 31, 2014	Jul. 31, 2015	Oct. 08, 2015
Equity (Textual)
Number of shares held in treasury stock, shares		41,723		41,723
Number of shares held in treasury stock, value		$ 480,392		$ 480,392
Stock-based compensation expense		597,798	$ 383,262
Unrecognized compensation cost related to non-vested restricted shares		3,700,000
2,016		1,600,000
2,017		1,300,000
2,018		700,000
2,019		$ 127,000
2013 Plan
Equity (Textual)
Class B common stock available for the grant of awards					475,000
Davidi Jonas
Equity (Textual)
Stock issued during period as compensation, Shares		60,000
Stock issued during period, Shares	60,000
Stock issued during period, Value	$ 1,494,900
Employee
Equity (Textual)
Stock issued during period as compensation, Shares		28,000
Employee | Restricted shares
Equity (Textual)
Restricted shares, granted		28,000
Restricted shares, Vested		4,000
Number of restricted shares issued, value		$ 1,052,000
Description of restricted shares vesting condition		The balance of the shares will vest as to one-third of the granted shares on each of October 16, 2016, 2017 and 2018.

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Basic and Diluted weighted-average number of shares [Abstract]
Basic weighted-average number of shares	11,810	11,398
Effect of dilutive securities:
Shares underlying stock options		10
Non-vested restricted Class B common stock		395
Diluted weighted-average number of shares	11,810	11,803

Earnings (Loss) Per Share (De24

Earnings (Loss) Per Share (Details 1) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Shares excluded from the calculation of diluted loss per share	241
Shares underlying stock options
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Shares excluded from the calculation of diluted loss per share	2
Non-vested restricted Class B common stock
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Shares excluded from the calculation of diluted loss per share	239

Related Party Transactions (Det

Related Party Transactions (Details) - Transition Service Agreement - IDT - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Related Party Transaction, Due from (to) Related Party [Abstract]
Included in direct cost of revenues
Included in selling, general and administrative		$ 421

Related Party Transactions (D26

Related Party Transactions (Detail Textuals) - IDT - USD ($)	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Related Party Transactions (Textual)
Income from IDT Corporation payments of liabilities		$ 386,000
legal expenses	$ 513,481

Concentration of Customers (Det

Concentration of Customers (Details) - Straight Path Spectrum - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Customer 1
Revenue	$ 41	$ 41
Customer 2
Revenue	21	24
Customer 3
Revenue	$ 15	$ 10

Concentration of Customers (D28

Concentration of Customers (Detail Textuals)	3 Months Ended
	Oct. 31, 2015
Sales Revenue Net
Product Information [Line Items]
Concentration risk percentage	10.00%

Income Taxes (Detail Textuals)

Income Taxes (Detail Textuals)	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Income Taxes [Abstract]
Deferred income tax assets valuation allowance percentage	100.00%	100.00%

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Summary of operating results for the business segments
Revenues	$ 1,703	$ 4,823
(Loss) income from operations	(691)	1,612
Straight Path Spectrum
Summary of operating results for the business segments
Revenues	105	96
(Loss) income from operations	(334)	(297)
Straight Path IP
Summary of operating results for the business segments
Revenues	1,598	4,727
(Loss) income from operations	$ (357)	$ 1,909

Business Segment Information 31

Business Segment Information (Details 1) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Summary of total assets for the business segments
Total assets:	$ 18,220	$ 20,238
Straight Path Spectrum
Summary of total assets for the business segments
Total assets:	6,473	5,637
Straight Path IP
Summary of total assets for the business segments
Total assets:	$ 11,747	$ 14,601

Business Segment Information 32

Business Segment Information (Detail Textuals)	3 Months Ended
	Oct. 31, 2015Segment
Business Segment Information [Abstract]
Reportable Segments	2

Commitments and Contingencies (

Commitments and Contingencies (Detail Textuals)	Mar. 15, 2013USD ($)	May. 27, 2015USD ($)	Sep. 24, 2014Patent	Oct. 24, 2013	Jun. 30, 2013USD ($)	Oct. 31, 2015USD ($)License	Jul. 31, 2015USD ($)
Commitments and Contingencies (Textual)
Infringe of patents | Patent			4
Prepaid expense fee						$ 1,000,000
Lease expiration date						Dec. 31, 2018
Annual rent						$ 18,000
Minimum
Commitments and Contingencies (Textual)
Recoverable contingency patents allegedly infringed, percentage						0.00%
Maximum
Commitments and Contingencies (Textual)
Recoverable contingency patents allegedly infringed, percentage						40.00%
Straight Path Spectrum | 39 GHz Economic Area
Commitments and Contingencies (Textual)
License expiration date				Oct. 18, 2020
Straight Path Spectrum | LMDS 28 GHz range | NEW YORK
Commitments and Contingencies (Textual)
License expiration date						Feb. 1, 2016
Straight Path Spectrum | LMDS 28 GHz range | Licenses expire on august 10, 2018
Commitments and Contingencies (Textual)
Licenses to be expired | License						14
License expiration date						Aug. 10, 2018
Straight Path Spectrum | LMDS 28 GHz range | Licenses expire on September 21,2018
Commitments and Contingencies (Textual)
Licenses to be expired | License						118
License expiration date						Sep. 21, 2018
Straight Path Spectrum | Former Chief Executive Officer
Commitments and Contingencies (Textual)
Payments to be made from revenue, percentage					50.00%
Amount of maximum future payment for wireless spectrum licenses					$ 3,250,000
Cumulative amount paid for payment from future revenues from spectrum obligation						$ 0	$ 14,000
Straight Path IP
Commitments and Contingencies (Textual)
Settlement of litigation, description						Straight Path IP Group 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.
Straight Path IP | Former Chief Executive Officer
Commitments and Contingencies (Textual)
Compensatory damages	$ 35,000,000
Arbitration proceedings, collateral		$ 3,500,000
Outstanding common stock of Straight Path IP Percentage	5.00%