Straight Path Communications 10-Q 12 Dec 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 31, 2016	Dec. 12, 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	Oct. 31, 2016
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017
Entity Filer Category	Accelerated Filer
Class A Common Stock
Entity Common Stock, Shares Outstanding		787,163
Class B Common Stock
Entity Common Stock, Shares Outstanding		11,675,909

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2016	Jul. 31, 2016
Current assets:
Cash and cash equivalents	$ 9,561	$ 11,361
Trade accounts receivable, net of allowance for doubtful accounts of $0 and $0, respectively	47	40
Prepaid expenses and other current assets	1,634	1,627
Total current assets	11,242	13,028
Intangible assets	365	365
Other assets	105	104
Total Assets	11,712	13,497
Current liabilities:
Trade accounts payable	1,067	684
Accrued expenses	522	1,042
Deferred revenue	174	73
Income taxes payable	223	225
Total current liabilities	1,986	2,024
Deferred revenue - long-term portion	86	92
Total liabilities	2,072	2,116
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	24,100	21,589
Accumulated deficit	(12,356)	(8,225)
Treasury stock, 40 shares at cost	(428)	(428)
Total Straight Path Communications Inc. stockholders' equity	11,441	13,058
Noncontrolling interests	(1,801)	(1,677)
Total equity	9,640	11,381
Total liabilities and equity	11,712	13,497
Class A Common Stock
Straight Path Communications Inc. stockholders' equity:
Common stock value	8	8
Class B Common Stock
Straight Path Communications Inc. stockholders' equity:
Common stock value	$ 117	$ 114

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Oct. 31, 2016	Jul. 31, 2016
Net of allowance for doubtful accounts	$ 0	$ 0
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000	3,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Treasury stock, shares	40	40
Common Stock | Class A Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	2,000	2,000
Common stock, shares issued	787	787
Common stock, shares outstanding	787	787
Common Stock | Class B Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000	40,000
Common stock, shares issued	11,716	11,431
Common stock, shares outstanding	11,676	11,391

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Statements of Operations [Abstract]
Revenues	$ 159	$ 1,703
Costs and expenses:
Direct cost of revenues	41	782
Research and development	160
Selling, general and administrative	4,235	1,612
Total costs and expenses	4,436	2,394
Loss from operations	(4,277)	(691)
Other income:
Interest income	7	10
Other income	22
Total other income	29	10
Loss before income taxes	(4,248)	(681)
Provision for income taxes	(7)	(6)
Net loss	(4,255)	(687)
Net loss attributable to noncontrolling interests	124	55
Net loss attributable to Straight Path Communications Inc.	$ (4,131)	$ (632)
Loss per share attributable to Straight Path Communications Inc. stockholders:
Basic and diluted	$ (0.34)	$ (0.05)
Weighted-average number of shares used in calculation of loss per share:
Basic and diluted	12,018	11,810

Consolidated Statement of Equit

Consolidated Statement of Equity (Unaudited) - 3 months ended Oct. 31, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common StockClass A Common Stock	Common StockClass B Common Stock	Additional Paid-In Capital	Accumulated Deficit	Treasury Stock	Noncontrolling Interests
Balance at Jul. 31, 2016	$ 11,381	$ 8	$ 114	$ 21,589	$ (8,225)	$ (428)	$ (1,677)
Balance (in shares) at Jul. 31, 2016		787	11,431
Common stock issued for compensation	2,417		$ 3	2,414
Common stock issued for compensation (in shares)			285
Stock-based compensation	97			97
Net loss	(4,255)				(4,131)		(124)
Balance at Oct. 31, 2016	$ 9,640	$ 8	$ 117	$ 24,100	$ (12,356)	$ (428)	$ (1,801)
Balance (in shares) at Oct. 31, 2016		787	11,716

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Operating activities:
Net loss	$ (4,255)	$ (687)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for compensation	2,417	598
Stock-based compensation	97
Changes in assets and liabilities:
Trade accounts receivable, net	(7)	(2)
Prepaid expenses - related to settlements and licensing		783
Prepaid expenses and other current assets	(7)	(81)
Prepaid expenses - development agreement		(1,000)
Other assets	(1)	5
Trade accounts payable	383	(94)
Accrued expenses	(520)	(232)
Deferred revenue	95	(1,603)
Income taxes payable	(2)
Net cash used in operating activities	(1,800)	(2,313)
Net decrease in cash and cash equivalents	(1,800)	(2,313)
Cash and cash equivalents at beginning of period	11,361	18,620
Cash and cash equivalents at end of period	9,561	16,307
Supplemental cash flow information
Cash paid during the period for income taxes	$ 7	$ 3

Basis of Presentation

Basis of Presentation	3 Months Ended
	Oct. 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. 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, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2017. The balance sheet at July 31, 2016 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 consolidated financial statements and footnotes thereto included in Straight Path’s Annual Report on Form 10-K for the fiscal year ended July 31, 2016, as filed with the U.S. Securities and Exchange Commission (the “SEC”). Straight Path Communications Inc., a Delaware corporation, was incorporated in April 2013. Straight Path owns 100% of Straight Path Spectrum, Inc. (“Straight Path Spectrum”) and Straight Path Ventures, LLC (“Straight Path Ventures”), and 84.5% of Straight Path IP Group, Inc. (“Straight Path IP Group”). In these financial statements, the terms “the Company,” “Straight Path,” “we,” “us,” and “our” refer to Straight Path, Straight Path Spectrum, Straight Path Ventures, Straight Path IP Group, and their respective subsidiaries 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 2017 refers to the fiscal year ending July 31, 2017).

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recent Pronouncements	3 Months Ended
	Oct. 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, 2016. 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 2014-15, “ Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Effective August 1, 2016, the Company adopted ASU 2015-01, “ Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items Effective August 1, 2016, the Company adopted ASU 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis Effective August 1, 2016, the Company adopted ASU 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) Leases (Topic 840) In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers In May 2016, the FASB issued ASU 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash The Company does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.

Fair Value Measures

Fair Value Measures	3 Months Ended
	Oct. 31, 2016
Fair Value Measures [Abstract]
Fair Value Measures	Note 3— Fair Value Measures At October 31, 2016 and July 31, 2016, the Company did not have any assets or liabilities measured at fair value on a recurring basis. At October 31, 2016 and July 31, 2016, the carrying amounts of the financial instruments included in cash and cash equivalents, trade accounts receivable, prepaid expenses and other current assets, trade accounts payable, and accrued expenses approximated fair value due to their short-term nature.

Equity

Equity	3 Months Ended
	Oct. 31, 2016
Equity [Abstract]
Equity	Note 4—Equity Issuances of Class B Common Stock: Class B common stock activity for the three months ended October 31, 2016 was as follows: 1. The Company issued 120,000 shares to Davidi Jonas, the Company’s Chief Executive Officer and President, as compensation. 2. The Company issued 108,000 shares to officers and 56,000 shares to other employees as compensation. 3. The Company issued 1,250 shares to a consultant as compensation. See Note 5 - 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 our employees to satisfy their tax withholding obligations in connection with the lapsing of restrictions on awards of restricted stock. The cost 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, 2016 and July 31, 2016, there were 39,693 shares of treasury stock totaling approximately $428,000.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Oct. 31, 2016
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 5—Stock-Based Compensation Stock Options: Effective as of July 31, 2013, the Company adopted the 2013 Stock Option and Incentive Plan (as amended and restated to date, the “2013 Plan”). As of January 12, 2016, there are 1,503,532 shares of the Company’s Class B common stock reserved for the grant of awards under the 2013 Plan. No stock options were issued in the three months ended October 31, 2016. Stock-based compensation is included in selling, general and administrative and amounted to approximately $97,000 and $0 for the three months ended October 31, 2016 and 2015, respectively. Common Stock: From time to time, the Company issues Class B common stock (and options to purchase Class B common stock – options covered just above) to non-employee directors, officers, other employees, and other service providers. Issuances of Class B common stock included in stock-based compensation for the three months ended October 31, 2016 are as follows: In October 2016, the Company granted officers and employees 164,000 restricted shares of Class B common stock. The shares will vest over a two-to-four-year period. The aggregate fair value of the grant was approximately $4,392,000 which is being charged to expense on a straight-line basis over the vesting periods. In addition, in October 2016, the Company issued 120,000 restricted shares of Class B common stock 1. 60,000 shares which vested immediately. The aggregate fair value of the grant was $1,866,000 which was charged to expense in the period issued. 2. 60,000 shares which will vest over a three-year period. The aggregate fair value of the grant was $1,866,000 which is being charged to expense on a straight-line basis over the vesting period. The Company issued 1,250 restricted shares of Class B common stock The aggregate fair value of the grant 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 approximately $2,417,000 and $598,000 for the three months ended October 31, 2016 and 2015, respectively. As of October 31, 2016, there was approximately $8,030,000 of total unrecognized compensation cost related to issued but non-vested restricted shares. The Company expects to recognize the unrecognized compensation cost as follows: Fiscal 2017 - $2,581,000, Fiscal 2018 - $2,781,000, Fiscal 2019 - $1,990,000, fiscal 2020 - $615,000 and Fiscal 2021 - $63,000.

(Loss) Earnings Per Share

(Loss) Earnings Per Share	3 Months Ended
	Oct. 31, 2016
(Loss) Earnings Per Share [Abstract]
(Loss) Earnings Per Share	Note 6— (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 sets forth the number of Class B shares of common stock issuable upon the exercise of stock options which were excluded from the diluted per share calculation even though the exercise price was less than the average market price of the Class B common shares and non-vested restricted Class B common stock because the effect of including these potential shares was anti-dilutive due to the net loss incurred during that period: Three Months Ended 2016 2015 (in thousands) Stock options 3 2 Non-vested restricted Class B common stock 118 239 Shares excluded from the calculation of diluted loss per share 121 241 The following table sets forth the number of stock options to purchase Class B common stock which were excluded from the diluted per share calculation because the exercise price was greater than the average market price of the Class B common shares: Three Months Ended 2016 2015 (in thousands) Stock options 88 —

Related Party Transactions

Related Party Transactions	3 Months Ended
	Oct. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 7—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, 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. No payments were received in Fiscal 2016 or through October 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 months ended October 31, 2016 and 2015.

Concentration of Customers

Concentration of Customers	3 Months Ended
	Oct. 31, 2016
Concentration of Customers [Abstract]
Concentration of Customers	Note 8—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 2016 2015 (in thousands) Customer 1 $ 48 $ 41 Customer 2 41 21 Customer 3 21 15 Customer 4 16 * * below 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, 2016
Income Taxes [Abstract]
Income Taxes	Note 9—Income Taxes The Company recorded no federal income tax expense for Fiscal 2017 and Fiscal 2016 because the estimated annual effective tax rate was zero. As of October 31, 2016, the Company continues to provide a valuation allowance against its net deferred tax assets since the Company believes it is more likely than not that its deferred tax assets will not be realized. The provision for both the three months ended October 31, 2016 and 2015 represents state income taxes. The federal return of Straight Path for the year ended July 31, 2015 is currently under audit by the Internal Revenue Service (“IRS”). As the audit has not been completed, the Company cannot determine if the IRS will assess additional tax, interest, and penalties.

Business Segment Information

Business Segment Information	3 Months Ended
	Oct. 31, 2016
Business Segment Information [Abstract]
Business Segment Information	Note 10—Business Segment Information Prior to November 1, 2015, the Company had two reportable business segments, Straight Path Spectrum, which holds, leases, and markets fixed wireless spectrum, and Straight Path IP Group, which holds intellectual property primarily related to communications over computer networks, and the licensing and other businesses related to this intellectual property. Effective November 1, 2015, a third segment, referred to as Straight Path Ventures, has been designated. Straight Path Ventures focuses on developing next generation wireless technology for 39 GHz at the Company’s Gigabit Mobility Lab in Plano, Texas. 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, Straight Path Spectrum, and Straight Path Ventures 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. No expenses were allocated to Straight Path Ventures because they were deemed to be immaterial. Commencing on February 1, 2016, these expenses are being allocated 20% to Straight Path IP Group and 80% to Straight Path Spectrum, except for the following: expenses related to the Gigabit Mobility Lab are being allocated 100% to Straight Path Ventures; employment expenses of our Chief Technology Officer are being allocated 20% to Straight Path IP Group, 20% to Straight Path Spectrum, and 60% to Straight Path Ventures; and employment expenses related to another employee are being allocated 20% to Straight Path Spectrum and 80% to Straight Path Ventures. The changes in allocations were brought about by the expiration of the licensed patents held by Straight Path IP Group and the increase in activities of Straight Path Ventures. 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 and the increase in activities of Straight Path Ventures, the Company determined to modify the allocation, and in light of the anticipated level of activity in Straight Path IP Group’s enforcement activities and Straight Path Ventures’ development activities, the Company determined that a general 20% allocation to Straight Path IP Group, subject to the specific allocations listed above, represented the appropriate split in light of all factors. Operating results for the business segments of the Company were as follows: Straight Straight Straight Path Path Path Spectrum IP Group Ventures Total Three Months Ended October 31, 2016 Revenues $ 159 $ — $ — $ 159 Loss from operations (2,985 ) (875 ) (417 ) (4,277 ) Three Months Ended October 31, 2015 Revenues $ 105 $ 1,598 $ — $ 1,703 Loss from operations (334 ) (357 ) — (691 ) Total assets for the business segments of the Company were as follows: Straight Straight Straight Path Path Path Spectrum IP Group Ventures Total (in thousands) Total assets October 31, 2016 $ 8,583 $ 2,029 $ 1,100 $ 11,712 July 31, 2016 10,174 2,223 1,100 13,497 None of the Company’s revenues were generated outside of the United States for either Fiscal 2017 or Fiscal 2016. The Company did not have any assets outside the United States at October 31, 2016 or July 31, 2016.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Oct. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 11—Commitments and Contingencies Legal Proceedings Regulatory Enforcement Allegations were made in an anonymous report released in November 2015 regarding the circumstances under which certain of our spectrum licenses were renewed by the Federal Communications Commission (the “FCC” or the “Commission”) in 2011 and 2012. The Company retained Morgan Lewis, a leading multi-national law firm, to conduct an independent investigation into these allegations. Morgan Lewis, with assistance from Kroll, completed its investigation and reported the results to the Company. We met with the FCC and shared the investigators’ conclusions, and the Company subsequently provided certain additional information requested by the FCC. On September 20, 2016, the Company received a letter of inquiry from the FCC requesting additional documents and information regarding the Registrant’s 39 GHz (38.6 – 40.0 GHz) and 28 GHz (27.5 – 28.35 GHz) spectrum licenses. Straight Path intends to continue to cooperate with the FCC in this matter, and hopes to bring it to a satisfactory resolution in a timely manner. We cannot, at this time, give any assurances as to how the FCC may proceed in this matter. If the FCC were to conclude that we have not complied with its rules, it may impose fines and/or additional reporting or operational requirements, condition or revoke our licenses, and/or take other action. If the FCC were to revoke a significant portion of our licenses or impose material conditions on the use of our licenses, it could have a material adverse effect on the value of our spectrum licenses and our ability to generate revenues from utilization of our spectrum assets. Putative Class 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., and 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. Sipnet Appeal and Related IPRs On April 11, 2013, Sipnet EU S.R.O. (“Sipnet”), a Czech company, filed a petition for an inter partes As discussed in more detail below, following the CAFC’s decision in Sipnet, the PTAB denied all then-pending petitions for IPR of Straight Path IP Group’s patents, and the petitioners have appealed those denials to the CAFC. On August 22, 2014, Samsung Electronics Co., Ltd. (“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. On June 15, 2015, Cisco Systems, Inc. (“Cisco”) and Avaya, Inc. (“Avaya”) joined this instituted IPR. 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. On May 5, 2016, Samsung filed a notice of appeal to the CAFC. On May 6, 2016, Cisco and Avaya also filed notices of appeal. On October 31, 2014, LG Electronics Inc. et al. (“LG”), Toshiba Corporation et al. (“Toshiba”), Vizio, Inc. (“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 IPRs. On November 10, 2015, the PTAB granted petitions filed by Cisco and Avaya to join these IPRs. On November 24, 2015, the PTAB granted related petitions filed by Verizon Services Corp. and Verizon Business Network Services Inc. (the “Verizon affiliates”) to join for the ‘704 and ‘469 Patents. On May 9, 2016, the PTAB issued a final written decision holding that the petitioners failed to show that any claims of the ‘704 Patent were unpatentable. The PTAB also held that the petitioners failed to show that the majority of the claims of the ‘469 and ‘121 Patents were unpatentable. On May 20, 2016, the petitioners filed a notice of appeal to the CAFC, and this appeal was consolidated with the appeal of the Samsung IPR discussed above. On October 14, 2016, the appellants filed their opening brief. The respondents filed their opposition brief on December 7, 2016, and the appellants’ reply brief is due on December 28, 2016. 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 April 6, 2016, the PTAB denied the petition, finding that the petitioners had not demonstrated a reasonable likelihood that any challenged claim was unpatentable. This decision was not appealed to the CAFC. Patent Enforcement Following the CAFC’s decision in Sipnet and the PTAB’s decisions in the related IPRs, Straight Path IP Group has taken steps to re-commence its patent enforcement actions in federal district court that had been stayed or dismissed without prejudice during the pendency of the Sipnet Appeal and related IPRs. 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 were consolidated (the “consolidated action”) and assigned to Judge Anthony J. Trenga. 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 (the “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, and the Virginia court later formally severed the Amazon action from the consolidated action. In November 2014, the parties jointly moved to stay the consolidated action and the Amazon action pending the completion of the Sipnet Appeal and related IPRs. On November 4, 2014, the court granted the stay. On May 23, 2016, Straight Path IP Group filed status reports with the court in both the consolidated action and the Amazon action requesting that the stay be lifted, and the defendants filed a statement and request for leave to file a motion to continue the stay. The court held oral argument, and on August 8, 2016, the court continued the stay pending the outcome of the defendants’ appeals of the PTAB’s denial of their IPRs. 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 Samsung IPR petitions. On May 31, 2016, Straight Path IP Group filed a notice informing the court of the results of the Samsung IPR and the Sipnet Appeal and requesting that the stay be lifted. On June 2, 2016, the defendants filed a notice asserting that the stay should remain pending their appeal of the PTAB’s decision in the Samsung IPR. The court has not ruled on Straight Path IP Group’s request. On September 24, 2014, Straight Path IP Group filed complaints against each of Apple, Inc. (“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 June 21, 2016, Straight Path IP Group filed new complaints against Avaya and Cisco alleging that certain of their products infringe four of Straight Path IP Group’s patents. On August 5, 2016, Avaya filed its answer, affirmative defenses, and counterclaims for declaratory judgments of noninfringement and invalidity of Straight Path IP Group’s patents, and the parties have commenced discovery. Also on August 5, 2016, Cisco filed its answer and affirmative defenses, and the parties have commenced discovery. On June 24, 2016, Straight Path IP Group filed a new complaint against Apple alleging that its FaceTime product infringes five of Straight Path IP Group’s patents. On August 5, 2016, Apple filed a partial motion to dismiss as well as its answer, affirmative defenses, and counterclaims for declaratory judgments of noninfringement and invalidity of Straight Path IP Group’s patents, and the parties have commenced discovery. Following oral argument, on October 21, 2016, the court granted in part and denied in part Apple’s motion. The court dismissed one claim as to the ‘469 Patent but denied Apple’s motion with respect to the other four patents at issue in the litigation. 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 on 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. On June 7, 2016, Straight Path IP Group filed a new complaint in the United States District Court for the Southern District of New York against the original Verizon parties as well as Verizon affiliate Cellco Partnership d/b/a Verizon Wireless, alleging that defendants’ IP telephony products such as FIOS Digital Voice, Unified Communications and Collaboration, Verizon Enterprise Solutions VoIP, Virtual Communications Express, Voice over LTE, and related hardware and software infringe the ‘704, ‘469 and ‘365 Patents. On August 5, 2016, Verizon filed its answer and affirmative defenses, and the parties commenced discovery. On September 13, 2016, Verizon filed a motion to stay the litigation pending a decision from the CAFC in the appeal of the Samsung IPR. On October 18, 2016, the court granted Verizon’s motion and stayed the litigation. 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. Federal Communications Commission (“FCC”) License Renewal Our spectrum licenses in the local multipoint distribution service (“LMDS”) and 39 GHz bands have historically been granted for ten-year terms. On April 20, 2016, the FCC granted our application to renew our LMDS BTA license for the LMDS A1 band (27.5 – 28.35 GHz) that covers parts of the New York City BTA for a ten-year period, until February 1, 2026. We have 15 other LMDS A1 licenses; nine of these licenses currently have a renewal date of August 10, 2018, and six of these licenses have a renewal date of September 21, 2018. However, following the adoption of the Upper Microwave Flexible Use (“UMFU”) Report and Order, the next build-out date for these 16 LMDS A1 licenses is June 1, 2024, not at the renewal deadline. It is likely that the FCC will separate the renewal and build-out deadlines for licenses that contain both A1 spectrum (for which mobile capabilities were adopted in the UMFU Report and Order) and A2 and A3 spectrum (for which mobile capabilities were not added). Of the 15 BTAs in which we hold LMDS A2 band (29.1 – 29.25 GHz) and A3 band (31.075 – 31.225 GHz) spectrum, nine licenses currently have a renewal and possible build-out date of August 10, 2018 and six of these licenses currently have a renewal and possible build-out date of September 21, 2018. The UMFU Report and Order does not affect the LMDS B band spectrum. Of our 117 LMDS B band (31.0 – 31.075 GHz and 31.225 – 31.300 GHz) spectrum, five licenses currently have a renewal and build-out date of August 10, 2018 and 112 licenses currently have a renewal and build-out date of September 21, 2018. The UMFU Report and Order build-out date of June 1, 2024 also applies to our 828 39 GHz licenses, which currently have a renewal date of October 18, 2020. For further discussion, please see “ Regulatory Enforcement 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 $71,000 and $3,000 was incurred to the Former SPSI CEO for this obligation for Fiscal 2017 and Fiscal 2016, respectively.

Summary of Significant Accoun18

Summary of Significant Accounting Policies and Recent Pronouncements (Policies)	3 Months Ended
	Oct. 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, 2016. 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 2014-15, “ Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Effective August 1, 2016, the Company adopted ASU 2015-01, “ Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items Effective August 1, 2016, the Company adopted ASU 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis Effective August 1, 2016, the Company adopted ASU 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) Leases (Topic 840) In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers In May 2016, the FASB issued ASU 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash The Company does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.

(Loss) Earnings Per Share (Tabl

(Loss) Earnings Per Share (Tables)	3 Months Ended
	Oct. 31, 2016
(Loss) Earnings Per Share [Abstract]
Summary of shares excluded from the diluted earnings per share computations	Three Months Ended 2016 2015 (in thousands) Stock options 3 2 Non-vested restricted Class B common stock 118 239 Shares excluded from the calculation of diluted loss per share 121 241
Schedule of the exercise price was greater than the average market price of the Class B common shares	Three Months Ended 2016 2015 (in thousands) Stock options 88 —

Concentration of Customers (Tab

Concentration of Customers (Tables)	3 Months Ended
	Oct. 31, 2016
Concentration of Customers [Abstract]
Schedule of revenues from transactions with single customer	Three Months Ended 2016 2015 (in thousands) Customer 1 $ 48 $ 41 Customer 2 41 21 Customer 3 21 15 Customer 4 16 * * below 10%

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Oct. 31, 2016
Business Segment Information [Abstract]
Summary of operating results for the business segments	Straight Straight Straight Path Path Path Spectrum IP Group Ventures Total Three Months Ended October 31, 2016 Revenues $ 159 $ — $ — $ 159 Loss from operations (2,985 ) (875 ) (417 ) (4,277 ) Three Months Ended October 31, 2015 Revenues $ 105 $ 1,598 $ — $ 1,703 Loss from operations (334 ) (357 ) — (691 )
Summary of total assets for the business segments	Straight Straight Straight Path Path Path Spectrum IP Group Ventures Total (in thousands) Total assets October 31, 2016 $ 8,583 $ 2,029 $ 1,100 $ 11,712 July 31, 2016 10,174 2,223 1,100 13,497

Basis of Presentation (Details)

Basis of Presentation (Details)	3 Months Ended
	Oct. 31, 2016
Straight Path [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)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Jul. 31, 2016
Equity (Textual)
Treasury stock, shares	40,000	40,000
Treasury stock, value	$ 428	$ 428
Class B Common Stock [Member] | Officers [Member]
Equity (Textual)
Stock issued during period as compensation	108,000
Class B Common Stock [Member] | Other Employees [Member]
Equity (Textual)
Stock issued during period as compensation	56,000
Class B Common Stock [Member] | Davidi Jonas [Member]
Equity (Textual)
Stock issued during period as compensation	120,000
Class B Common Stock [Member] | Consultant [Member]
Equity (Textual)
Stock issued during period as compensation	1,250

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	Jan. 12, 2016	Oct. 31, 2016	Oct. 31, 2015
Stock-Based Compensation (Textual)
Class B common stock reserved for grant of awards under 2013 Plan	1,503,532
Stock-based compensation is included in selling, general and administrative		$ 97,000
Officers and Employees [Member]
Stock-Based Compensation (Textual)
Granted restricted shares of Class B common stock		164,000
Fair value of granted restricted shares of Class B common stock		$ 4,392,000
Officers and Employees [Member] | Minimum [Member]
Stock-Based Compensation (Textual)
Vesting period		2 years
Officers and Employees [Member] | Maximum [Member]
Stock-Based Compensation (Textual)
Vesting period		4 years
Jonas [Member]
Stock-Based Compensation (Textual)
Granted restricted shares of Class B common stock		120,000
Jonas [Member] | Vested One [Member]
Stock-Based Compensation (Textual)
Granted restricted shares of Class B common stock		60,000
Fair value of granted restricted shares of Class B common stock		$ 1,866,000
Jonas [Member] | Vested Two [Member]
Stock-Based Compensation (Textual)
Granted restricted shares of Class B common stock		60,000
Fair value of granted restricted shares of Class B common stock		$ 1,866,000
Vesting period		3 years
Consultant [Member]
Stock-Based Compensation (Textual)
Granted restricted shares of Class B common stock		1,250
Vesting period		13 months
Common Stock [Member]
Stock-Based Compensation (Textual)
Stock-based compensation is included in selling, general and administrative		$ 2,417,000	$ 598,000
Unrecognized compensation cost related to non-vested restricted shares		8,030,000
Unrecognized compensation cost 2017		2,581,000
Unrecognized compensation cost 2018		2,781,000
Unrecognized compensation cost 2019		1,990,000
Unrecognized compensation cost 2020		615,000
Unrecognized compensation cost 2021		$ 63,000

(Loss) Earnings Per Share (Deta

(Loss) Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Shares excluded from the calculation of diluted earnings (loss) per share	121	241
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	118	239
Stock options [Member]
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Shares excluded from the calculation of diluted earnings (loss) per share	3	2

(Loss) Earnings Per Share (De26

(Loss) Earnings Per Share (Details 1) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Class B Common Stock [Member]
Class of Stock [Line Items]
Stock options	88

Concentration of Customers (Det

Concentration of Customers (Details) - Straight Path Spectrum [Member] - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Customer 1 [Member]
Concentration Risk [Line Items]
Revenue	$ 48	$ 41
Customer 2 [Member]
Concentration Risk [Line Items]
Revenue	41	21
Customer 3 [Member]
Concentration Risk [Line Items]
Revenue	21	15
Customer 4 [Member]
Concentration Risk [Line Items]
Revenue	$ 16		[1]
[1]	below 10%

Concentration of Customers (D28

Concentration of Customers (Details Textual)	3 Months Ended
	Oct. 31, 2016
Straight Path Spectrum's revenues [Member]
Concentration of Customers (Textual)
Concentration risk percentage	10.00%

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Summary of operating results for the business segments
Revenues	$ 159	$ 1,703
Income (loss) from operations	(4,277)	(691)
Straight Path Spectrum [Member]
Summary of operating results for the business segments
Revenues	159	105
Income (loss) from operations	(2,985)	(334)
Straight Path IP Group [Member]
Summary of operating results for the business segments
Revenues		1,598
Income (loss) from operations	(875)	(357)
Straight Path Ventures [Member]
Summary of operating results for the business segments
Revenues
Income (loss) from operations	$ (417)

Business Segment Information 30

Business Segment Information (Details 1) - USD ($) $ in Thousands	Oct. 31, 2016	Jul. 31, 2016
Summary of total assets for the business segments
Total assets:	$ 11,712	$ 13,497
Straight Path Spectrum [Member]
Summary of total assets for the business segments
Total assets:	8,583	10,174
Straight Path IP Group [Member]
Summary of total assets for the business segments
Total assets:	2,029	2,223
Straight Path Ventures [Member]
Summary of total assets for the business segments
Total assets:	$ 1,100	$ 1,100

Business Segment Information 31

Business Segment Information (Details Textual) - Segment	Feb. 01, 2016	Jan. 31, 2016	Nov. 01, 2015
Business Segment Information (Textual)
Reportable Segments			2
Straight Path IP Group [Member]
Business Segment Information (Textual)
Percentage of general and administrative expenses	20.00%	80.00%
Employment expenses of Chief Technology Officer	20.00%
Employee expenses related to another employee	20.00%
Straight Path Spectrum [Member]
Business Segment Information (Textual)
Percentage of general and administrative expenses	80.00%	20.00%
Employment expenses of Chief Technology Officer	20.00%
Straight Path Ventures [Member]
Business Segment Information (Textual)
Percentage of general and administrative expenses	100.00%
Employment expenses of Chief Technology Officer	60.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Jun. 30, 2013	Oct. 31, 2016	Oct. 31, 2015
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%
Subsidiaries [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
Amount incurred for obligation		$ 71,000	$ 3,000
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.