Straight Path Communications 10-Q 11 Mar 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jan. 31, 2016	Mar. 11, 2016
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	Jan. 31, 2016
Document Fiscal Period Focus	Q2
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		11,379,177

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2016	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 15,350	$ 18,620
Trade accounts receivable, net of allowance for doubtful accounts of $0 and $0, respectively	$ 48	82
Prepaid expenses - related to IP settlements and licensing		783
Other current assets	$ 272	273
Total current assets	15,670	$ 19,758
Prepaid expenses - development agreement	700
Property and equipment, net of accumulated depreciation	56
Intangible assets	365	$ 365
Other assets	107	115
Total Assets	16,898	20,238
Current liabilities:
Trade accounts payable	124	238
Accrued expenses	469	828
Deferred revenue	107	1,646
Income taxes payable	225	225
Total current liabilities	925	2,937
Deferred revenue - long-term portion	98	105
Total liabilities	$ 1,023	$ 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	$ 20,397	$ 17,316
(Accumulated deficit) retained earnings	(2,586)	72
Treasury stock, 42 shares at cost	(480)	(480)
Total Straight Path Communications Inc. stockholders' equity	17,453	18,524
Noncontrolling interests	(1,578)	(1,328)
Total equity	15,875	17,196
Total liabilities and equity	16,898	20,238
Class A
Straight Path Communications Inc. stockholders' equity:
Common stock	8	8
Class B
Straight Path Communications Inc. stockholders' equity:
Common stock	$ 114	113
Common stock to be issued
Straight Path Communications Inc. stockholders' equity:
Common stock		$ 1,495

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jan. 31, 2016	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
Preferred stock, Shares outstanding
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	11,420	11,308
Common stock, Shares outstanding	11,378	11,266
Common Stock | 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		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Statements of Operations [Abstract]
Revenues	$ 112	$ 2,781	$ 1,815	$ 7,604
Costs and expenses:
Direct cost of revenues	13	1,338	795	3,446
Research and development	374		374
Selling, general and administrative	2,346	1,605	3,958	2,708
Total costs and expenses	2,733	2,943	5,127	6,154
(Loss) income from operations	(2,621)	(162)	(3,312)	1,450
Other income:
Interest income	10	9	20	18
Other income	390		390	23
Total other income	400	9	410	41
(Loss) income before income taxes	$ (2,221)	(153)	(2,902)	1,491
Provision for income taxes		(100)	(6)	(855)
Net (loss) income	$ (2,221)	(253)	(2,908)	636
Net loss (income) attributable to noncontrolling interests	195	(24)	250	(207)
Net (loss) income attributable to Straight Path Communications Inc.	$ (2,026)	$ (277)	$ (2,658)	$ 429
(Loss) earnings per share attributable to Straight Path Communications Inc. stockholders:
Basic	$ (0.17)	$ (0.02)	$ (0.23)	$ 0.04
Diluted	$ (0.17)	$ (0.02)	$ (0.23)	$ 0.04
Weighted-average number of shares used in calculation of (loss) earnings per share:
Basic	11,854	11,420	11,832	11,409
Diluted	11,854	11,420	11,832	11,837

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - 6 months ended Jan. 31, 2016 - USD ($) shares in Thousands, $ 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	1,586	3,080					$ 1	$ (1,495)
Common stock issued for compensation (in Shares)							112
Common stock issued for exercises of stock options	1	$ 1
Net loss	(2,908)		$ (2,658)		$ (250)
Balance at Jan. 31, 2016	$ 15,875	$ 20,397	$ (2,586)	$ (480)	$ (1,578)	$ 8	$ 114
Balance (in shares) at Jan. 31, 2016						787	11,420

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Operating activities:
Net (loss) income	$ (2,908)	$ 636
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Common stock issued or to be issued for compensation	$ 1,586	1,229
Deferred tax assets		855
Changes in assets and liabilities:
Trade accounts receivable, net	$ 34	(6)
Prepaid expenses - related to IP settlements and licensing	783	2,414
Other current assets	1	$ (99)
Prepaid expenses - development agreement	(700)
Other assets	8	$ 9
Trade accounts payable	(114)	195
Accrued expenses	$ (359)	(487)
Due to IDT Corporation		37
Deferred revenue	$ (1,546)	(4,909)
Income taxes payable		(82)
Net cash used in operating activities	$ (3,215)	$ (208)
Investing activities:
Purchases of property and equipment	(56)
Net cash used in investing activities	(56)
Financing activities:
Common stock issued upon exercise of stock options	$ 1	$ 26
Sale of treasury stock		65
Net cash provided by financing activities	$ 1	91
Net decrease in cash and cash equivalents	(3,270)	(117)
Cash and cash equivalents at beginning of period	18,620	21,232
Cash and cash equivalents at end of period	$ 15,350	21,115
Supplemental schedule of noncash activities
Common stock repurchased for withholding tax purposes		348
Supplemental cash flow information
Cash paid during the period for income taxes	$ 3	$ 82

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jan. 31, 2016
Basis of Presentation [Abstract]
Basis of Presentation	Note 1—Basis of Presentation The accompanying unaudited consolidated financial statements of Straight Path Communications Inc. (“Straight Path”) and its subsidiaries 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, 2016 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 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	6 Months Ended
	Jan. 31, 2016
Summary of Significant Accounting Policies and Recent Pronouncements [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 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 In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) Leases (Topic 840) 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	6 Months Ended
	Jan. 31, 2016
Equity [Abstract]
Equity	Note 3—Equity Issuances of Class B Common Stock: Class B common stock activity for the six months ended January 31, 2016 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. 3. The Company issued 24,000 shares to directors as compensation. Class B common stock activity subsequent to January 31, 2016 was as follows: 1. On March 1, 2016, the Company issued a consultant 1,250 restricted shares of Class B common stock to serve on the Company's technical advisory board. 625 of the shares vest on March 16, 2016, 313 of the shares vest on June 13, 2016 and 312 of the shares vest on October 17, 2016. 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 January 31, 2016 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 restricted shares of 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”) increasing the number of shares of the Company’s Class B common stock available for the grant of awards thereunder by 475,000 shares. The increase was approved by the stockholders on January 12, 2016 at the Company’s annual stockholder meeting. Issuances of Class B common stock included in stock-based compensation for the six months ended January 31, 2016 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 Company’s Chief Financial Officer, 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. On January 5, 2016, the Company granted three of its directors an aggregate of 24,000 restricted shares of Class B common stock. These grants are the annual grants to non-employee directors provided for in the Plan. The shares vested immediately. The aggregate fair value of the grant was approximately $418,000. Stock-based compensation is included in selling, general and administrative expense and amounted to $988,001 and $845,961 for the three months ended January 31, 2016 and 2015, respectively and $1,585,799 and $1,229,223 for the six months ended January 31, 2016 and 2015, respectively. As of January 31, 2016, there was approximately $3.1 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 - $1.0 million, Fiscal 2017 - $1.3 million, Fiscal 2018 - $700,000 and Fiscal 2019 - $127,000.

(Loss) Earnings Per Share

(Loss) Earnings Per Share	6 Months Ended
	Jan. 31, 2016
(Loss) Earnings Per Share [Abstract]
(Loss) Earnings Per Share	Note 4—(Loss) Earnings Per Share Basic (loss) earnings per share is computed by dividing net (loss) income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase would be anti-dilutive. The following table summarizes the components of the earnings (loss) per common share calculation: Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Basic weighted-average number of shares 11,854 11,420 11,832 11,409 Effect of dilutive securities: Shares underlying stock options — — — 7 Non-vested restricted Class B common stock — — — 421 Diluted weighted-average number of shares 11,854 11,420 11,832 11,837 The following shares were excluded from the diluted (loss) earnings per share computations because their inclusion would have been anti-dilutive: Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Stock options 6 7 4 — Non-vested restricted Class B common stock 35 409 173 — Shares excluded from the calculation of diluted (loss) earnings per share 41 416 177 — For the three and six months ended January 31, 2016 and the three months ended January 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	6 Months Ended
	Jan. 31, 2016
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 agreed to indemnify IDT and IDT has agreed to indemnify 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 through January 31, 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 provided by other vendors. The Company and IDT extended the TSA enabling the Company to seek input from IDT on an ad hoc basis if the Company deemed it necessary. No services were provided under the TSA in the three and six months ended January 31, 2016. 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, a payable owed to IDT related to legal expenses totaling $513,481 that were paid 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 Six Months Ended 2016 2015 2016 2015 (in thousands) Included in direct cost of revenues $ — $ — $ — $ — Included in selling, general and administrative — 43 — 464

Concentration of Customers

Concentration of Customers	6 Months Ended
	Jan. 31, 2016
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 Six Months Ended 2016 2015 2016 2015 (in thousands) Customer 1 $ 41 $ 41 $ 83 $ 83 Customer 2 21 21 43 45 Customer 3 15 10 29 20 The loss of any of these major customers may have an adverse effect on the Company’s results of operations and cash flows.

Income Taxes

Income Taxes	6 Months Ended
	Jan. 31, 2016
Income Taxes [Abstract]
Income Taxes	Note 7—Income Taxes As a result of its corporate structure, 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 January 31, 2016 and 2015. 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 January 31, 2016. 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	6 Months Ended
	Jan. 31, 2016
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 holds intellectual property primarily related to communications over computer networks, 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. The Company allocates all of the corporate general and administrative expenses of Straight Path to Straight Path IP Group and Straight Path Spectrum based upon the relative time of management and other corporate resources expended relative to each business as well as the revenues earned by each division. For all periods through January 31, 2016, these were allocated 80% to Straight Path IP Group and 20% to Straight Path Spectrum. Commencing on February 1, 2016, these expenses will be allocated 20% to Straight Path IP Group and 80% to Straight Path Spectrum. The change was brought about by the expiration of the licensed patents. Straight Path IP Group has been recognizing revenues over the terms of the settlements and license agreements related to such patents entered into in prior periods. With the expiration of the key patents, the Company determined to modify the allocation, and in light of the favorable decision in the Sipnet Appeal (see Note 9), and the ability to recommence enforcement activities with respect to the six years prior to expiration, the Company determined that a 20% allocation to Straight Path IP Group represented the appropriate split in light of all factors. Operating results for the business segments of the Company were as follows: Straight Path Straight Path Total (in thousands) Three Months Ended January 31, 2016 Revenues $ 112 $ - $ 112 Loss from operations (965 ) (1,656 ) (2,621 ) Three Months Ended January 31, 2015 Revenues $ 93 $ 2,688 $ 2,781 (Loss) income from operations (412 ) 250 (162 ) Six Months Ended January 31, 2016 Revenues $ 217 $ 1,598 $ 1,815 Loss from operations (1,299 ) (2,013 ) (3,312 ) Six Months Ended January 31, 2015 Revenues $ 189 $ 7,415 $ 7,604 Income (loss) from operations (709 ) 2,159 1,450 Total assets for the business segments of the Company were as follows: Straight Path Straight Path Total (in thousands) Total assets: January 31, 2016 (Unaudited) $ 5,999 $ 10,899 $ 16,898 July 31, 2015 5,637 14,601 20,238

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jan. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 9—Commitments and Contingencies Legal Proceedings Putative Class Action and Shareholder Derivative Action On November 13, 2015, 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 case is captioned Zacharia v. Straight Path Communications, Inc. et al. On January 29, 2016, a shareholder derivative action captioned Hofer v. Jonas et al. Zacharia The Company is aware of press reports regarding the filing of additional complaints for putative class actions revolving around the same alleged facts and circumstances as the Zacharia Hofer The Company intends to vigorously defend against all of 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, filed a petition for an inter partes 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 civil 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 Communications”). Straight Path IP Group is working to develop its plans going forward. Additional IPRs On August 22, 2014, Samsung filed three petitions with the PTAB for IPR of certain claims of the ‘704 Patent and U.S. Patent Nos. 6,009,469 (the “‘469 Patent”) and 6,131,121 (the “‘121 Patent”). On March 6, 2015, the PTAB instituted the requested IPR of these claims based on Samsung’s petitions. On June 15, 2015, Cisco and Avaya joined this instituted IPR. On November 18, 2015, Straight Path IP Group defended these patents at a hearing before the PTAB. The parties filed additional briefing regarding the impact of the CAFC’s decision in the Sipnet Appeal. On March 4, 2016, the PTAB issued a final written decision holding that Samsung failed to show that any claims of the ‘704 and ‘121 Patents were unpatentable. The PTAB also held that Samsung failed to show that the majority of the claims of the ‘469 Patent were unpatentable. We expect that the PTAB’s final decision will positively impact the other IPR proceedings. On October 31, 2014, LG, Toshiba, Vizio, and Hulu LLC (“Hulu”) filed three petitions with the PTAB for IPR of certain claims of the ‘704, ‘469, and ‘121 Patents. On May 15, 2015, the PTAB instituted the requested IPR of these claims. On June 15, 2015, Cisco and Avaya 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. (the “Verizon affiliates”) 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 the Verizon affiliates in the LG IPRs for the ‘704 and ‘469 Patents. The parties filed additional briefing regarding the impact of the CAFC’s decision in the Sipnet Appeal. On February 9, 2016, Straight Path IP Group defended these patents at a hearing before the PTAB. On September 28, 2015, Cisco, Avaya, and the Verizon affiliates filed a petition for an IPR with the PTAB for all claims of U.S. Patent No. 6,701,365 (the “‘365 Patent”). On January 7, 2016, Straight Path IP Group filed its Preliminary Response. Shortly thereafter, the parties filed additional briefing to address the CAFC’s decision in the Sipnet Appeal. This petition is pending. 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 the ‘704, ‘469, and ‘121 Patents and seeking damages related to such infringement. The actions against LG, Toshiba, and Vizio have been consolidated (the “consolidated action”). In October 2014, Hulu intervened in the consolidated 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 in the United States District Court for the Northern District of California seeking declaratory relief of non-infringement of the ‘704, ‘469, and ‘121 Patents based in part on the allegations related to the consolidated action 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 the Eastern District of Virginia. On May 28, 2015, the California court transferred the Amazon action 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 a decision in the Sipnet Appeal. On November 4, 2014, the court granted the stay and also held in abeyance the briefing on Amazon’s motion to intervene. The Amazon action has been stayed but not yet consolidated with the consolidated action. 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 the ‘704, ‘469, and ‘121 Patents 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 Straight Path IP Group’s patents (the ‘704, ‘469, and ’121 Patents and U.S. Patent No. 7,149,208); (b) Avaya’s IP telephony, video conference, and telepresence products such as its Aura Platform infringe four of the Straight Path IP Group’s patents (the ‘704, ‘469, ‘121, and ‘365 Patents); and (c) Cisco’s IP telephony, video conference, and telepresence products such as the Unified Communications Solutions infringe four of Straight Path IP Group’s patents (the ‘704, ‘469, ‘121, and ‘365 Patents). 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 the Verizon affiliates and Verizon Communications in the United States District Court for the Southern District of New York. Straight Path IP Group claims the defendants’ telephony products such as its Advanced Communications Products, including Unified Communications and Collaboration and VOIP infringe three of its patents (the ‘704, ‘469, and ‘365 Patents). On November 24, 2014, Straight Path IP Group dismissed the complaint without prejudice subject to a confidential standstill agreement with the defendants. In light of the favorable outcome in the Sipnet Appeal, Straight Path IP Group is working to develop its plans going forward. 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. Other Legal 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 quantities of the developed equipment on favorable terms. The fee has initially been classified as a prepaid expense in the consolidated balance sheet. Research and development expenses are recognized as the various milestones are met. Research and development expenses recognized under this agreement amounted to $300,000 for both the three and six months ended January 31, 2016. Prepaid expenses total $700,000 at January 31, 2016. 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 Straight Path Spectrum has eight hundred and twenty-eight (828) 39 GHz Economic Area (“EA”) licenses with an expiration date of October 18, 2020. Straight Path Spectrum previously filed substantial service performance filings for its 39 GHz EA licenses, and these showings have been accepted by the FCC, which resulted in the renewal of the licenses through 2020. In addition, Straight Path Spectrum holds one hundred and thirty-three (133) 28 GHz (“LMDS”) 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, which was scheduled to expire on February 1, 2016. The Company filed its application to renew its New York City LMDS license in a timely manner with the FCC and the application for renewal is pending. Under the FCC’s rules, when a licensee timely submits an application for renewal, its authorization remains valid until such time as the FCC acts on the application. Straight Path Spectrum previously filed substantial service performance filings for its other one hundred and thirty-two (132) LMDS BTA licenses, and these showings have been accepted by the FCC, which resulted in the renewal of the licenses through the end of the current period. 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 $30,000 and $7,000 was incurred to the Former SPSI CEO for this obligation for the three months ended January 31, 2016 and 2015, respectively, and approximately $30,000 and $8,000 for the six months ended January 31, 2016 and 2015, respectively.

Summary of Significant Accoun16

Summary of Significant Accounting Policies and Recent Pronouncements (Policies)	6 Months Ended
	Jan. 31, 2016
Summary of Significant Accounting Policies and Recent Pronouncements [Abstract]
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 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 In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) Leases (Topic 840) 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.

(Loss) Earnings Per Share (Tabl

(Loss) Earnings Per Share (Tables)	6 Months Ended
	Jan. 31, 2016
(Loss) Earnings Per Share [Abstract]
Summary of components of the earnings (loss) per common share calculation	Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Basic weighted-average number of shares 11,854 11,420 11,832 11,409 Effect of dilutive securities: Shares underlying stock options — — — 7 Non-vested restricted Class B common stock — — — 421 Diluted weighted-average number of shares 11,854 11,420 11,832 11,837
Summary of shares excluded from the diluted earnings per share computations	Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Stock options 6 7 4 — Non-vested restricted Class B common stock 35 409 173 — Shares excluded from the calculation of diluted (loss) earnings per share 41 416 177 —

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jan. 31, 2016
Related Party Transactions [Abstract]
Schedule of expenses incurred on related party transactions	Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Included in direct cost of revenues $ — $ — $ — $ — Included in selling, general and administrative — 43 — 464

Concentration of Customers (Tab

Concentration of Customers (Tables)	6 Months Ended
	Jan. 31, 2016
Concentration of Customers [Abstract]
Schedule of revenues from transactions with single customer	Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Customer 1 $ 41 $ 41 $ 83 $ 83 Customer 2 21 21 43 45 Customer 3 15 10 29 20

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jan. 31, 2016
Business Segment Information [Abstract]
Summary of operating results for the business segments	Straight Path Straight Path Total (in thousands) Three Months Ended January 31, 2016 Revenues $ 112 $ - $ 112 Loss from operations (965 ) (1,656 ) (2,621 ) Three Months Ended January 31, 2015 Revenues $ 93 $ 2,688 $ 2,781 (Loss) income from operations (412 ) 250 (162 ) Six Months Ended January 31, 2016 Revenues $ 217 $ 1,598 $ 1,815 Loss from operations (1,299 ) (2,013 ) (3,312 ) Six Months Ended January 31, 2015 Revenues $ 189 $ 7,415 $ 7,604 Income (loss) from operations (709 ) 2,159 1,450
Summary of total assets for the business segments	Straight Path Straight Path Total (in thousands) Total assets: January 31, 2016 (Unaudited) $ 5,999 $ 10,899 $ 16,898 July 31, 2015 5,637 14,601 20,238

Basis of Presentation (Details

Basis of Presentation (Details Textual)	6 Months Ended
	Jan. 31, 2016
Straight Path Spectrum [Member]
Basis of Presentation (Textual)
Ownership in straight path spectrum	100.00%
Straight Path IP Group [Member]
Basis of Presentation (Textual)
Ownership in straight path spectrum	84.50%

Equity (Details Textual)

Equity (Details Textual) - Common Class B [Member] - USD ($)	Jan. 05, 2016	Oct. 31, 2015	Jul. 23, 2015	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015	Jul. 31, 2015	Oct. 08, 2015
Equity (Textual)
Number of shares held in treasury stock, shares				41,723		41,723		41,723
Number of shares held in treasury stock, value						$ 480,392		$ 480,392
Stock-based compensation expense				$ 988,001	$ 845,961	1,585,799	$ 1,229,223
Unrecognized compensation cost related to non-vested restricted shares				$ 3,100,000		3,100,000
2,016						1,000,000
2,017						1,300,000
2,018						700,000
2,019						$ 127,000
2013 Plan [Member]
Equity (Textual)
Class B common stock available for the grant of awards									475,000
Davidi Jonas [Member]
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 [Member]
Equity (Textual)
Stock issued during period as compensation, Shares						28,000
Employee [Member] | Restricted Shares [Member]
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.
Directors [Member]
Equity (Textual)
Stock issued during period as compensation, Shares						24,000
Directors [Member] | Restricted Shares [Member]
Equity (Textual)
Restricted shares, granted	24,000
Number of restricted shares issued, value	$ 418,000
Consultant [Member]
Equity (Textual)
Restricted shares, Vested						1,250
Consultant [Member] | March 16, 2016 [Member]
Equity (Textual)
Restricted shares, Vested						625
Consultant [Member] | June 13, 2016 [Member]
Equity (Textual)
Restricted shares, Vested						313
Consultant [Member] | October 17, 2016 [Member]
Equity (Textual)
Restricted shares, Vested						312

(Loss) Earnings Per Share (Deta

(Loss) Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Basic and Diluted weighted-average number of shares [Abstract]
Basic weighted-average number of shares	11,854	11,420	11,832	11,409
Effect of dilutive securities:
Shares underlying stock options				7
Non-vested restricted Class B common stock				421
Diluted weighted-average number of shares	11,854	11,420	11,832	11,837

(Loss) Earnings Per Share (De24

(Loss) Earnings Per Share (Details 1) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Shares excluded from the calculation of diluted earnings (loss) per share	41	416	177
Stock options [Member]
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Shares excluded from the calculation of diluted earnings (loss) per share	6	7	4
Non-vested restricted Class B common stock [Member]
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Shares excluded from the calculation of diluted earnings (loss) per share	35	409	173

Related Party Transactions (Det

Related Party Transactions (Details) - Transition Service Agreement [Member] - IDT [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Related Party Transaction, Due from (to) Related Party [Abstract]
Included in direct cost of revenues
Included in selling, general and administrative		$ 43		$ 464

Related Party Transactions (D26

Related Party Transactions (Details Textual) - IDT [Member] - 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 [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Customer 1 [Member]
Revenue	$ 41	$ 41	$ 83	$ 83
Customer 2 [Member]
Revenue	21	21	43	45
Customer 3 [Member]
Revenue	$ 15	$ 10	$ 29	$ 20

Concentration of Customers (D28

Concentration of Customers (Details Textual)	6 Months Ended
	Jan. 31, 2016
Sales Revenue Net [Member]
Concentration of Customers (Textual)
Concentration risk percentage	10.00%

Income Taxes (Details Textual)

Income Taxes (Details Textual)	6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Income Taxes (Textual)
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		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Summary of operating results for the business segments
Revenues	$ 112	$ 2,781	$ 1,815	$ 7,604
(Loss) income from operations	(2,621)	(162)	(3,312)	1,450
Straight Path Spectrum [Member]
Summary of operating results for the business segments
Revenues	112	93	217	189
(Loss) income from operations	$ (965)	(412)	(1,299)	(709)
Straight Path IP [Member]
Summary of operating results for the business segments
Revenues		2,688	1,598	7,415
(Loss) income from operations	$ (1,656)	$ 250	$ (2,013)	$ 2,159

Business Segment Information 31

Business Segment Information (Details 1) - USD ($) $ in Thousands	Jan. 31, 2016	Jul. 31, 2015
Summary of total assets for the business segments
Total assets:	$ 16,898	$ 20,238
Straight Path Spectrum [Member]
Summary of total assets for the business segments
Total assets:	5,999	5,637
Straight Path IP Group [Member]
Summary of total assets for the business segments
Total assets:	$ 10,899	$ 14,601

Business Segment Information 32

Business Segment Information (Details Textual) - Segment	Feb. 01, 2016	Jan. 31, 2016
Business Segment Information (Textual)
Reportable Segments		2
Straight Path IP Group [Member]
Business Segment Information (Textual)
Percentage of general and administrative expenses		80.00%
Straight Path IP Group [Member] | Subsequent Event [Member]
Business Segment Information (Textual)
Percentage of general and administrative expenses	20.00%
Straight Path Spectrum [Member]
Business Segment Information (Textual)
Percentage of general and administrative expenses		20.00%
Straight Path Spectrum [Member] | Subsequent Event [Member]
Business Segment Information (Textual)
Percentage of general and administrative expenses	80.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Textual)	1 Months Ended		3 Months Ended		6 Months Ended
	Sep. 24, 2014Patent	Jun. 30, 2013USD ($)	Jan. 31, 2016USD ($)	Jan. 31, 2015USD ($)	Jan. 31, 2016USD ($)License	Jan. 31, 2015USD ($)
Commitments and Contingencies (Textual)
Infringe of patents | Patent	4
Prepaid expense fee					$ 1,000,000
Research and development expenses			$ 374,000		374,000
Prepaid expenses			700,000		$ 700,000
Lease expiration date					Dec. 31, 2018
Annual rent					$ 18,000
Minimum [Member]
Commitments and Contingencies (Textual)
Recoverable contingency patents allegedly infringed, percentage					0.00%
Maximum [Member]
Commitments and Contingencies (Textual)
Recoverable contingency patents allegedly infringed, percentage					40.00%
Straight Path Spectrum [Member] | 39 GHz Economic Area [Member]
Commitments and Contingencies (Textual)
License expiration date					Oct. 18, 2020
Straight Path Spectrum [Member] | LMDS 28 GHz range [Member] | NEW YORK [Member]
Commitments and Contingencies (Textual)
License expiration date					Feb. 1, 2016
Straight Path Spectrum [Member] | LMDS 28 GHz range [Member] | Licenses expire on august 10, 2018 [Member]
Commitments and Contingencies (Textual)
Licenses to be expired | License					14
License expiration date					Aug. 10, 2018
Straight Path Spectrum [Member] | LMDS 28 GHz range [Member] | Licenses expire on September 21,2018 [Member]
Commitments and Contingencies (Textual)
Licenses to be expired | License					118
License expiration date					Sep. 21, 2018
Straight Path Spectrum [Member] | Former Chief Executive Officer [Member]
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			$ 30,000	$ 7,000	$ 30,000	$ 8,000
Straight Path IP Group [Member]
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.