Zedge (ZDGE) 10-K 29 Oct 18 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Jul. 31, 2018	Oct. 25, 2018	Jan. 31, 2018
Entity Registrant Name	Zedge, Inc.
Entity Central Index Key	1,667,313
Trading Symbol	ZDGE
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Document Type	10-K
Document Period End Date	Jul. 31, 2018
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,018
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Public Float			$ 22.9
Class A common stock
Entity Common Stock, Shares Outstanding		524,775
Class B common stock
Entity Common Stock, Shares Outstanding		9,785,452

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Current assets:
Cash and cash equivalents	$ 3,408	$ 4,580
Trade accounts receivable, net of allowance for doubtful accounts of $0 at July 31, 2018 and 2017	1,777	1,712
Prepaid expenses	316	315
Other current assets	302	427
Total current assets	5,803	7,034
Property and equipment, net	3,344	2,678
Goodwill	2,447	2,518
Other assets	125	301
Total assets	11,719	12,531
Current liabilities:
Trade accounts payable	280	33
Accrued expenses	1,428	1,840
Due to IDT Corporation	1	36
Total current liabilities	1,709	1,909
Total liabilities	1,709	1,909
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $.01 par value; authorized shares-2,400; no shares issued
Additional paid-in capital	22,508	21,446
Accumulated other comprehensive loss	(702)	(584)
Accumulated deficit	(11,899)	(10,336)
Total stockholders' equity	10,010	10,622
Total liabilities and stockholders' equity	11,719	12,531
Class A common stock
Stockholders' equity:
Common stock, value	5	5
Total stockholders' equity	5	5
Class B common stock
Stockholders' equity:
Common stock, value	98	91
Total stockholders' equity	$ 98	$ 91

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Allowance for doubtful accounts	$ 0	$ 0
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,400	2,400
Preferred stock, shares issued
Class A common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	2,600	2,600
Common stock, shares issued	525	525
Common stock, shares outstanding	525	525
Class B common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000	40,000
Common stock, shares issued	9,786	9,123
Common stock, shares outstanding	9,786	9,123

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Income Statement [Abstract]
Revenues	$ 10,833	$ 10,031
Costs and expenses:
Direct cost of revenues (exclusive of amortization of capitalized software and technology development costs included below)	1,518	1,567
Selling, general and administrative	9,581	8,468
Depreciation and amortization	1,033	643
Write-off of capitalized software and technology development costs		36
Loss from operations	(1,299)	(683)
Interest and other income	29	19
Net (loss) gain resulting from foreign exchange transactions	(63)	37
Loss before income taxes	(1,333)	(627)
Provision for (benefit from) income taxes	230	(16)
Net loss	(1,563)	(611)
Other comprehensive (loss) income:
Changes in foreign currency translation adjustment	(118)	233
Total other comprehensive (loss) income	(118)	233
Total comprehensive loss	$ (1,681)	$ (378)
Loss per share attributable to Zedge, Inc. common stockholders:
Basic and diluted	$ (0.16)	$ (0.06)
Weighted-average number of shares used in calculation of loss per share:
Basic and diluted	9,803	9,467

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance at Jul. 31, 2016	$ 10,596	$ 5	$ 88	$ 21,045	$ (817)	$ (9,725)
Balance, shares at Jul. 31, 2016		525	8,819
Exercise of stock options	110		$ 3	107
Exercise of stock options, shares			281
Stock-based compensation	275			275
Stock-based compensation, shares			18
Stock issued for matching contributions to the 401(k) Plan	19			19
Stock issued for matching contributions to the 401(k) Plan, shares			5
Foreign currency translation adjustment	233				233
Net loss	(611)					(611)
Balance at Jul. 31, 2017	10,622	$ 5	$ 91	21,446	(584)	(10,336)
Balance, shares at Jul. 31, 2017		525	9,123
Exercise of stock options	232		$ 2	230
Exercise of stock options, shares			172
Stock-based compensation	562		$ 4	558
Stock-based compensation, shares			353
Stock issued for matching contributions to the 401(k) Plan	33			33
Stock issued for matching contributions to the 401(k) Plan, shares			11
Stock issued to FreeForm noteholders	242		$ 1	241
Stock issued to FreeForm noteholders, shares			127
Foreign currency translation adjustment	(118)				(118)
Net loss	(1,563)					(1,563)
Balance at Jul. 31, 2018	$ 10,010	$ 5	$ 98	$ 22,508	$ (702)	$ (11,899)
Balance, shares at Jul. 31, 2018		525	9,786

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Operating activities
Net loss	$ (1,563)	$ (611)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,033	643
Deferred income taxes	172	(28)
Stock-based compensation	595	275
Write-off of capitalized software and technology development costs		36
Stock issued to FreeForm noteholders	242
Change in assets and liabilities:
Trade accounts receivable	(65)	(45)
Prepaid expenses and other current assets	122	(481)
Other assets	5	(8)
Trade accounts payable and accrued expenses	(174)	400
Due to IDT Corporation	(35)	(263)
Deferred revenue		(15)
Net cash provided by (used in) operating activities	332	(97)
Investing activities
Capitalized software and technology development costs and purchase of equipment	(1,702)	(1,506)
Net cash used in investing activities	(1,702)	(1,506)
Financing activities
Proceeds from exercise of stock options	232	166
Net cash provided by financing activities	232	166
Effect of exchange rate changes on cash and cash equivalents	(34)	39
Net decrease in cash and cash equivalents	(1,172)	(1,398)
Cash and cash equivalents at beginning of year	4,580	5,978
Cash and cash equivalents at end of year	3,408	4,580
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for income taxes	$ 31

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	12 Months Ended
	Jul. 31, 2018
Description of Business and Summary of Significant Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Note 1—Description of Business and Summary of Significant Accounting Policies Description of Business The Company provides a content discovery and creation platform with a global audience of more than 34 million monthly active users. The Company’s Zedge app offers an easy, entertaining and immersive way for users to engage with our rich and diverse library of more than one million images and audio clips. Such content is optimal for mobile phone customization, co-creation which allows users to personalize the content with digital stickers for social posting and sharing, and even printing on personalized physical goods like phone cases and apparel, and other uses. Currently, the Company offers wallpapers, stickers, ringtones, notification sounds and video wallpapers. In the future, the Company plans on offering new content verticals and supporting enhanced features furthering its goal of being the hub for all “everything you” content and functionality. The Company conducts business as a single operating segment. The consolidated financial statements include all of the accounts of the Company and Zedge Europe AS, a Norwegian corporation and Zedge Canada, Inc. All significant intercompany accounts and transactions have been eliminated. 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 2018 refers to the fiscal year ended July 31, 2018). The Spin-Off The Company was formerly a majority-owned subsidiary of IDT Corporation (“IDT”). On June 1, 2016, IDT’s interest in the Company was spun-off by IDT to IDT’s stockholders and the Company became an independent public company through a pro rata distribution of the Company’s common stock held by IDT to IDT’s stockholders (the “Spin-Off”). Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Revenue Recognition The Company generates approximately 90% of its revenues from selling its advertising inventory to advertising networks, advertising exchanges, and direct arrangements with advertisers. Advertising networks and advertising exchanges are third party technology platforms that facilitate the buying and selling of media advertising inventory from multiple ad networks. The price of advertising inventory is fixed on an advertising network whereas the price for inventory is determined through bidding on an advertising exchange. The Company recognizes advertising revenue as advertisements are delivered to users through impressions, ad views or app installs (depending on the terms agreed upon with the advertiser), as long as evidence of the arrangement with the payer exists (generally through an executed contract), the price is fixed and determinable, and the Company has assessed collectability as reasonably assured. The advertiser may compensate the Company on a cost-per-impression, cost-per-click, cost-per-action or cost-per-install basis. The remainder of the Company’s revenue is primarily generated from managing and optimizing the advertising inventory of a third-party mobile application publisher, as well as overseeing the billing, collections and reporting related to advertising for this publisher. The Company generally reports its revenue net of amounts due to agencies and brokers because the Company is not the primary obligor in the relevant arrangements, it does not finalize the pricing, and it does not establish or maintain a direct relationship with the advertiser. Certain advertising arrangements that are directly between the Company and advertisers are recognized gross equal to the price paid to the Company by the customer since the Company is the primary obligor and the Company determines the price. Any third party costs related to such direct relationships are recognized as direct cost of revenues. In Zedge Premium, the Company generally report revenue net of the 70% share that is paid to the artists who own the licensed content. The Company recognizes revenue based on reports that it receives from the ad networks and ad exchanges who respectively track and report the installs and impressions and pay the Company based on these reports. Independently the Company compares and reconciles these reports with data from each of the client sites and dispute any differences. Depending on the nature of the advertising agreement the Company records revenue either when we serve an end-user with a paid advertising impression or when a user installs an app from an advertiser who pays for the install. Being that the advertiser simultaneously receives and consumes the benefits provided by Zedge’s performance we view this as our output measure. Payment from the ad partnerships are typically received anywhere between 30-60 days from issuance of the invoice, and any revenue adjustments are already factored into the payment. Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company holds cash and cash equivalents at several major financial institutions, which may exceed FDIC insured limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. The Company routinely assesses the financial strength of its customers. As a result, the Company believes that its accounts receivable credit risk exposure is limited and has not experienced significant write-downs in its accounts receivable balances. In the year ended July 31, 2018, three customers represented 35%, 22% and 14% of the Company’s revenue and in the year ended July 31, 2017 three customers represented 43%, 17% and 10% of the Company’s revenue. At July 31, 2018, three customers represented 46%, 28% and 14% of the Company’s accounts receivable balance and at July 31, 2017, two customers represented 47% and 12% of the Company’s accounts receivable balance. All of these significant customers are advertising exchanges operated by leading companies, and the receivables represent many smaller amounts due from advertisers. Direct Cost of Revenues Direct cost of revenues for the Company consists of fees paid to third parties that provide the Company with internet hosting, content serving and filtering, and marketing automation services. Such costs are charged to expense as incurred. Long-Lived Assets Property and equipment is recorded at cost and depreciated on a straight-line basis over its estimated useful lives, which range as follows: capitalized software and technology development costs—3 years; and other—3, 5, 7, 10 or 20 years. Other is comprised of furniture and fixtures, office equipment, video conference equipment, computer hardware and computer software. The Company tests the recoverability of its long-lived assets with finite useful lives whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company tests for recoverability based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, the Company will record an impairment loss, if any, based on the difference between the estimated fair value and the carrying value of the asset. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such asset using an appropriate discount rate. Cash flow projections and fair value estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record impairments in future periods and such impairments could be material. Capitalized Software and Technology Development Costs The Company accounts for capitalized software and technology development costs in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 350-40. These costs consist of internal development costs on various projects that the Company invested in specific to the various platforms on which the Company operates its service that are capitalized during the application development stage. Capitalized software and technology development costs are included in property and equipment, net and are amortized over the estimated useful life of the software, generally three years. All ordinary maintenance costs are expensed as incurred. Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of the business acquired. Under ASC 350, Intangibles-Goodwill and Other The Company performs its annual, or interim, goodwill impairment test by comparing the fair value of its reporting unit with its carrying amount. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of its reporting unit when measuring the goodwill impairment loss, if applicable. The Company’s estimated fair value substantially exceeded its carrying value in Step 1 of the Company’s annual impairment tests as of May 1st for the years ended July 31, 2018 and 2017. The Company concluded that no goodwill impairment existed in the years ended July 31, 2018 and 2017. The Company uses the market approach (guideline company method) for its Step 1 analysis. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Income Taxes The accompanying financial statements include provisions for federal, state and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in its assessment of a valuation allowance. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. Tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of tax benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability. The Company classifies interest and penalties on income taxes as a component of income tax expense. Contingencies The Company accrues for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the Company records its best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. Earnings Per Share Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: Year ended July 31, 2018 2017 Basic weighted-average number of shares 9,803 9,467 Effect of dilutive securities: Stock options — — Non-vested restricted Class B common stock — — Diluted weighted-average number of shares 9,803 9,467 The following shares were excluded from the diluted earnings per share computation because their inclusion would have been anti-dilutive: Year ended July 31, 2018 2017 Stock options 1,314 1,438 Non-vested restricted Class B common stock 302 53 Shares excluded from the calculation of diluted earnings per share 1,616 1,491 For both fiscal 2018 and fiscal 2017, the diluted earnings per share equals basic earnings per share because the Company had a net loss and the impact of the assumed exercise of stock options and vesting of restricted stock would have been anti-dilutive. Stock-Based Compensation The Company recognizes compensation expense for all of its grants of stock-based awards based on the estimated fair value on the grant date. Compensation cost for awards is recognized using the straight-line method over the vesting period. Stock-based compensation is included in selling, general and administrative expense. Fair Value Measurements Fair value of financial and non-financial assets and liabilities is defined as an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used to measure fair value, which prioritizes the inputs to valuation techniques used to measure fair value, is as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 – unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. Derivative Instruments – Foreign Exchange Forward Contracts The Company’s earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, primarily the U.S. Dollar Functional Currency The U.S. Dollar is the Company’s functional currency. The functional currencies for the Company’s subsidiaries that operate outside of the United States are NOK for Zedge Europe AS and the Canadian Dollar for Zedge Canada, Inc., which are the currencies of the primary economic environments in which they primarily expend cash. The Company translates assets and liabilities denominated in foreign currencies to U.S. Dollars at the exchange rate in effect as of the financial statement date, and translates accounts from the statements of comprehensive using the weighted average exchange rate for the period. Gains or losses resulting from foreign currency translations are recorded in “Accumulated other comprehensive loss” in the accompanying consolidated balance sheets. Foreign currency transaction gains and losses including gains and losses from currency exchange rate changes related to intercompany receivables and payables are reported in “Net (loss) gain resulting from foreign exchange transactions” in the accompanying Allowance for Doubtful Accounts The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on known troubled accounts, historical experience and other currently available evidence. Doubtful accounts are written-off upon final determination that the trade accounts will not be collected. Recently Issued Accounting Standards Not Yet Adopted In June 2018, the FASB issued a new ASU which expands the scope of ASC Topic 718, Compensation - Stock Compensation In February 2018, the FASB issued an ASU to give entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings (accumulated deficits). The new guidance also requires entities to make additional disclosures, regardless of whether reclassification of tax effects is elected. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact that this ASU will have on its consolidated financial statements. In August 2017, the FASB issued an ASU intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the ASU includes certain targeted improvements to simplify the application of hedge accounting guidance in U.S. GAAP. The amendments in this ASU are effective for the Company on August 1, 2019. Early application is permitted. Entities will apply the amendments to cash flow and net investment hedge relationships that exist on the date of adoption using a modified retrospective approach. The presentation and disclosure requirements will be applied prospectively. The Company is evaluating the impact that this ASU will have on its consolidated financial statements. In May 2017, the FASB issued an ASU to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Pursuant to this ASU, an entity should account for the effects of a modification unless all the following are met: (1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified (if the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification); (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The Company will adopt the amendments in this ASU prospectively to an award modified on or after on August 1, 2018. The Company does not expect that the new standard will have a significant impact on its consolidated financial statements. In June 2016, the FASB issued an ASU that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except the losses will be recognized as allowances instead of reductions in the amortized cost of the securities. In addition, an entity will have to disclose significantly more information about allowances, credit quality indicators and past due securities. The new provisions will be applied as a cumulative-effect adjustment to retained earnings. The Company will adopt the new standard on August 1, 2020. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In February 2016, the FASB issued an ASU related to the accounting for leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company will adopt the new standard on August 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard that will supersede most of the current revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (“IFRS”). The goals of the revenue recognition project were to clarify and converge the revenue recognition principles under U.S. GAAP and IFRS and to develop guidance that would streamline and enhance revenue recognition requirements. To accomplish this objective, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company will adopt this standard effective August 1, 2018 using the modified retrospective approach. The Company has identified its main revenue streams, which are advertising revenue, app installs and advertising ops outsourcing. In addition, the Company substantially completed reviewing contracts and other relevant documents for most of its customers that comprises its main revenue streams. Based on this preliminary analysis to date of the adoption of the standard, the Company has not identified a significant impact on its consolidated financial statements, although this is subject to change as the Company completes the process.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Jul. 31, 2018
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 2—Fair Value Measurements The following table presents the balance of assets and liabilities measured at fair value on a recurring basis: Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) July 31, 2018 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ 41 $ - $ 41 July 31, 2017 Assets: Foreign exchange forward contracts $ - $ 137 $ - $ 137 Liabilities: Foreign exchange forward contracts $ - $ - $ - $ - Fair Value of Other Financial Instruments The Company’s other financial instruments at July 31, 2018 and 2017 included trade accounts receivable, trade accounts payable and due to IDT Corporation. The carrying amounts of the trade accounts receivable, trade accounts payable and due to IDT Corporation balances approximated fair value due to their short-term nature.

Derivative Instruments

Derivative Instruments	12 Months Ended
	Jul. 31, 2018
Derivative Instruments [Abstract]
Derivative Instruments	Note 3—Derivative Instruments The primary risk managed by the Company using derivative instruments is foreign exchange risk. Foreign exchange forward contracts are entered into as hedges against unfavorable fluctuations in the U.S. Dollar - NOK exchange rate. Subsequent to the Spin-Off and until November 2016, IDT made available hedging services to the Company pursuant to the Transition Services Agreement. As of November 16, 2016, the Company entered into a Foreign Exchange Agreement with Western Alliance Bank allowing the Company to enter into foreign exchange contracts under its revolving credit facility with the bank (see Note 13). The Company does not apply hedge accounting to these contracts; therefore the changes in fair value are recorded in earnings. By using derivative instruments to mitigate exposures to changes in foreign exchange rates, the Company is exposed to credit risk from the failure of the counterparty to perform under the terms of the contract. The credit or repayment risk is minimized by entering into transactions with high-quality counterparties. The outstanding contracts at July 31, 2018 were as follows: Settlement Date U.S. Dollar Amount NOK Amount Aug-18 500,000 3,994,495 Sep-18 500,000 3,989,945 Oct-18 500,000 3,986,095 Nov-18 500,000 3,983,595 Total 2,000,000 15,954,130 The fair value of outstanding derivative instruments recorded in the accompanying consolidated balance sheets were as follows: July 31, 2018 2017 Assets Derivatives: Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Other current assets $ — $ 137 Liabilities Derivatives: Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Accrued expenses $ 41 $ — The effects of derivative instruments on the consolidated statements of comprehensive loss were as follows: Amount of (Loss) Gain Recognized on Derivatives Year ended July 31, (in thousands) 2018 2017 Derivatives not designated or not qualifying as hedging instruments Location of (Loss) Gain Recognized on Derivatives Foreign exchange forward contracts Net (loss) gain resulting from foreign exchange transactions $ (52 ) $ 105 On August 6, 2018, the Company entered into a series of forward contracts pursuant to the Foreign Exchange Agreement with Western Alliance Bank as follows: Settlement Date U.S. Dollar Amount NOK Amount Dec-18 $ 500,000 4,059,365 Jan-19 500,000 4,053,465 Feb-19 500,000 4,048,715 Total $ 1,500,000 12,161,545 On August 13, 2018, the Company entered into a series of forward contracts pursuant to the Foreign Exchange Agreement with Western Alliance Bank as follows: Settlement Date U.S. Dollar Amount NOK Amount Mar-19 $ 500,000 4,118,040 Apr-19 500,000 4,112,740 May-19 500,000 4,107,440 Jun-19 500,000 4,102,240 Jul-19 500,000 4,097,140 Aug-19 500,000 4,091,590 Total $ 3,000,000 24,629,190

Property and Equipment

Property and Equipment	12 Months Ended
	Jul. 31, 2018
Property and Equipment [Abstract]
Property and Equipment	Note 4—Property and Equipment Property and equipment consisted of the following: July 31, 2018 2017 Capitalized software and technology development costs $ 8,103 $ 6,419 Other 308 297 8,411 6,716 Less accumulated depreciation and amortization (5,067 ) (4,038 ) Total $ 3,344 $ 2,678 Depreciation and amortization expense pertaining to property and equipment was $1,033,000 and $643,000 for the years ended July 31, 2018 and 2017, respectively. In fiscal 2017, the Company decided to abandon certain software and technology projects that were in development. Since these abandoned projects did not have any future benefit, the Company charged to expense the capitalized software and technology development costs for these projects of $36,000 in the year ended July 31, 2017.

Goodwill

Goodwill	12 Months Ended
	Jul. 31, 2018
Goodwill [Abstract]
Goodwill	Note 5—Goodwill The Company’s goodwill related to an acquisition made in a prior period and is carried on the balance sheet of Zedge Europe AS. The table below reconciles the change in the carrying amount of goodwill for the period from July 31, 2016 to July 31, 2018: (in thousands) Balance at July 31, 2016 $ 2,361 Foreign currency translation adjustments 157 Balance at July 31, 2017 2,518 Foreign currency translation adjustments (71 ) Balance at July 31, 2018 $ 2,447

Accrued Expenses

Accrued Expenses	12 Months Ended
	Jul. 31, 2018
Accrued Expenses [Abstract]
Accrued Expenses	Note 6—Accrued Expenses Accrued expenses consist of the following: July 31, (in thousands) 2018 2017 Accrued vacation $ 505 $ 685 Accrued payroll taxes 238 277 Accrued payroll and bonuses 393 250 Accrued severance 83 - Accrued advertising - 184 Accrued income taxes - 36 Accrued professional fees 96 130 Other 113 278 Total accrued expenses $ 1,428 $ 1,840

Equity

Equity	12 Months Ended
	Jul. 31, 2018
Equity [Abstract]
Equity	Note 7—Equity Class A Common Stock and Class B Common Stock The rights of holders of Class A common stock and Class B common stock are identical except for certain voting and conversion rights and restrictions on transferability. The holders of Class A common stock and Class B common stock have the right to receive identical dividends per share if and when declared by the Company’s Board of Directors. In addition, the holders of Class A common stock and Class B common stock have identical and equal priority rights per share in liquidation. The Class A common stock and Class B common stock do not have any other contractual participation rights. The holders of Class A common stock are entitled to three votes per share and the holders of Class B common stock are entitled to one-tenth of a vote per share. Each share of Class A common stock may be converted into one share of Class B common stock, at any time, at the option of the holder. Shares of Class A common stock are subject to certain limitations on transferability that do not apply to shares of Class B common stock.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jul. 31, 2018
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 8—Commitments and Contingencies Legal Proceedings In March 2014, Saregama India, Limited filed a lawsuit against the Company before the Barasat District Court (the “Court”), seeking approximately $1.6 million as damages and an injunction for copyright infringement. The main ground for the lawsuit was an allegation that the Company avails the plaintiff’s sound recordings through the Company’s platform with full knowledge that the sound recordings have been uploaded and are being communicated to the public without obtaining any license from the plaintiff. The Company The Company may from time to time be subject to other legal proceedings that arise in the ordinary course of business. Although there can be no assurance in this regard, the Company does not expect any of those legal proceedings to have a material adverse effect on the Company’s results of operations, cash flows or financial condition. Lease Commitments The Company’s future contractual obligations and other commercial commitments at July 31, 2018 were as follows: Year ended July 31, (in thousands) 2019 2020 2021 2022 Total Real estate leases $ 260 $ 251 $ 271 $ 116 $ 898 Software as a Service (“SaaS”) license 281 100 - - 381 Total contractual obligations $ 541 $ 351 $ 271 $ 116 $ 1,279 Rental expense under operating leases was $328,000 and $289,000 in the years ended July 31, 2018 and 2017, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Jul. 31, 2018
Income Taxes [Abstract]
Income Taxes	Note 9—Income Taxes The components of loss before income taxes are as follows: Year ended July 31, 2018 2017 Domestic $ (1,245 ) $ (717 ) Foreign (88 ) 90 Loss before income taxes $ (1,333 ) $ (627 ) Provision for (benefit from) income taxes consisted of the following: Year ended July 31, 2018 2017 Current: Foreign $ 59 $ 12 Federal — — State (1 ) — Total current expense 58 12 Deferred: Foreign 172 (28 ) Federal — — State — — Total deferred expense 172 (28 ) Provision for (benefit from) income taxes $ 230 $ (16 ) The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes reported were as follows: Year ended July 31, 2018 2017 U.S. federal income tax at statutory rate $ (352 ) $ (213 ) State income tax 136 (165 ) Valuation allowance (182 ) 717 Foreign tax rate differential 10 16 Meals 3 5 Stock compensation and employment credits (10 ) (381 ) Tax Cuts and Jobs Act 393 — Transition Tax 161 — Other 71 5 Provision for (benefit from) income taxes $ 230 $ (16 ) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made broad and significant changes to the U.S. tax code that affects the year ended December 31, 2017, including, but not limited to, a change in the federal rate from 35% to 21% effective January 1, 2018, as well as the requirement to pay a one-time transition tax (“deemed repatriation tax”) on all undistributed earnings of foreign subsidiaries. As a result, Zedge has a blended rate for the fiscal year ended July 31, 2018 of 26.42%. The Company reduced their deferred tax assets by $393,000 with a corresponding decrease to its valuation allowance. The deemed repatriation tax is a tax on previously untaxed earnings and profits of certain foreign subsidiaries. To determine the amount of the tax, the Company must determine, in addition to other factors, the amount of earnings and profits subject to U.S. tax for the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company continues to gather additional information to more precisely compute the amount of deemed repatriation tax, which may be impacted by further legislative technical corrections, amendments and/or revised earnings and profits computations. As of July 31, 2018, the company computed a transition tax of $161,000 which is offset by the net operating loss generated in this fiscal period. Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows: July 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 698 $ 951 Reserves and accruals 215 377 Stock-based compensation 137 76 Net deferred tax assets 1,050 1,404 Less valuation allowance (1,050 ) (1,232 ) Total deferred tax assets — 172 Total deferred tax liabilities — — Deferred tax assets, net $ — $ 172 Deferred tax assets, net are included in “Other assets” in the consolidated balance sheets at July 31, 2017. At July 31, 2018 and 2017, the Company had available Federal and State net operating loss (“NOL”) carryforwards from domestic operations of approximately $2.3 million and $2.0 million, respectively, to offset future taxable income. The Federal and State NOL carryforwards will begin to expire in 2036. The Company generated a net operating loss from foreign operations for the period ended July 31, 2018 of $420,000. Due to its history of losses, the Company believes that it is more-likely-than-not that substantially all of the deferred tax assets will not be realized. Therefore, the Company has a full valuation allowance on all U.S. and foreign deferred tax assets. The change in the valuation allowance is as follows: Year ended July 31 Balance at Additions Deductions Balance at 2018 Reserves deducted from deferred income taxes, net: Valuation allowance $ 1,232 $ — $ (182 ) $ 1,050 2017 Reserves deducted from deferred income taxes, net: Valuation allowance $ 515 $ 717 $ $ 1,232 At July 31, 2018 and 2017, the Company did not have any unrecognized tax benefits and did not anticipate any significant changes to the unrecognized tax benefits within twelve months of this reporting date. In the year ended July 31, 2018, the Company recorded $3,800 interest and penalties on income taxes. At July 31, 2018 and 2017, there was no accrued interest included in income taxes payable. The Company currently remains subject to examinations of its U.S. tax returns as follows: U.S. federal tax return for fiscal 2015 as part of the IDT consolidated tax return and for pre and post spin periods for fiscal 2016 and 2017, state and local tax returns generally for fiscal 2015 to fiscal 2017 and foreign tax returns generally for fiscal 2012 to fiscal 2017. In September 2016, the Company was notified that the Zedge Europe AS tax returns for 2012 and 2016 were going to be audited by the tax authorities in Norway. The initial audit meeting took place in October 2016 and the audit is progressing. No significant issues have been identified at this time. Amounts asserted by taxing authorities or the amount ultimately assessed against the Company could be greater than any accrued amount. Accordingly, provisions may be recorded in the future as estimates are revised or underlying matters are settled or resolved. Imposition of assessments as a result of tax audits could have an adverse effect on the Company’s results of operations, cash flows and financial condition. In connection with the Spin-Off, the Company and IDT entered into various agreements prior to the Spin-Off including a Separation and Distribution Agreement to effect the separation and provide a framework for the Company’s relationship with IDT after the Spin-Off, and a Tax Separation Agreement, which sets forth the responsibilities of the Company and IDT with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the Spin-Off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods. Pursuant to Separation and Distribution Agreement, among other things, the Company indemnifies IDT and IDT indemnifies 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. Pursuant to the Tax Separation Agreement, among other things, IDT indemnifies the Company from all liability for taxes of the Company and any of its subsidiaries or relating to its business with respect to taxable periods ending on or before the Spin-Off, and the Company indemnifies IDT from all liability for taxes of the Company and any of its subsidiaries or relating to its business accruing after the Spin-Off. Notwithstanding the foregoing, the Company is responsible for, and IDT has no obligation to indemnify the Company for, any tax liability of the Company resulting from an audit, examination or other proceeding related to any tax returns that relate solely to it and its subsidiaries regardless of whether such tax return relates to a period prior to or following the Spin-Off. Research and Development Credits As of July 31, 2018 and 2017, the balance of the Company’s receivable from Norway’s SkatteFUNN government program designed to stimulate research and development in Norwegian trade and industry was $208,000 and $260,000, respectively, which was included in “Other current assets” in the consolidated balance sheet and $39,000 and $289,000 was recorded as a reduction of selling, general and administrative expense for the years ended July 31, 2018 and 2017, respectively.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Jul. 31, 2018
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 10—Stock-Based Compensation 2016 Stock Option and Incentive Plan The Company adopted the Zedge, Inc. 2016 Stock Option and Incentive Plan (as amended to date, the “2016 Incentive Plan”), which became effective upon the consummation of the Spin-Off. The 2016 Incentive Plan is intended to provide incentives to executive officers, employees, directors and consultants of the Company. Incentives available under the 2016 Incentive Plan include restricted stock, stock options and stock appreciation rights. The 2016 Incentive Plan is administered by the Compensation Committee of the Company’s Board of Directors. On January 18, 2017, the Company’s stockholders ratified an amendment to the 2016 Incentive Plan to increase the number of shares of the Company’s Class B common stock reserved for the grant of awards thereunder by 500,000 shares. On October 18, 2017, the Company’s Board of Directors amended the 2016 Incentive Plan to increase the number of shares of the Company’s Class B common stock available for the grant of awards thereunder by an additional 350,000 shares to an aggregate of 1,041,000 shares. This amendment was ratified by the Company’s stockholders during Annual Meeting held on January 17, 2018. At July 31, 2018, there were 392,000 shares of the Company’s Class B common stock available for awards under the 2016 Incentive Plan. Pursuant to the 2016 Incentive Plan, the option exercise price for all stock option awards must not be less than the Fair Market Value of the shares of Class B Common Stock covered by the option award on the date of grant. In general, Fair Market Value means the closing sale price per share of Class B Common Stock on the exchange on which the Class B Common Stock is principally traded for the last preceding date on which there was a sale of Class B Common Stock on such exchange. In the years ended July 31, 2018 and 2017 there was no income tax benefit resulting from tax deductions in excess of the compensation cost recognized for the Company’s stock-based compensation. Stock Options The Company’s option awards generally have a maximum term of 10 years from grant date, are exercisable upon vesting unless otherwise designated for early exercise by the Board of Directors at the time of grant and are pursuant to individual written agreements. Prior to the Spin-Off, historical grants generally vested ratably over a three to four-year period. Subsequent to the Spin-Off, grants generally vest over a three-year period. Certain option agreements provide for accelerated vesting of options upon the effective date of an initial public offering or a change in control of the Company. In September 2016, the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved an equity grant of options to purchase 231,327 shares of our Class B common stock to our executive officers, a consultant and a non-executive employee. The options vest over a three-year period. Unrecognized compensation expense related to this grant was an aggregate of $681,000 based on the estimated fair value of the options on the grant date. The unrecognized compensation expense is being recognized on a straight-line basis over the vesting period. In November 2017, the Company cancelled 53,026 shares of this option grant because they exceeded the annual limit of 60,000 shares per grantee as set forth in Article 5(c) of the 2016 Stock Incentive Plan. Simultaneously, the Compensation Committee approved an option grant of 53,026 with similar terms. Unrecognized compensation expense related to this option grant was an aggregate of $85,000 based on the estimated fair value of the options on the grant date. In October 2017, the Compensation Committee approved an equity grant of options to purchase an aggregate of 124,435 shares of our Class B common stock to 55 non-executive employees. The options vest over a three-year period. Unrecognized compensation expense related to this grant was an aggregate of $159,000 based on the estimated fair value of the options on the grant date. In fiscal 2018, the Company received proceeds of $231,810 from the exercise of stock options for which the Company issued 172,239 shares of its Class B common stock. In fiscal 2017, the Company received proceeds of $109,790 from the exercise, during that period, of stock options for which the Company issued 280,700 shares of its Class B common stock. In addition, in fiscal 2017, the Company received proceeds of $56,840 from the exercise, in fiscal 2016, of stock options which was recorded as a receivable as of July 31, 2016. The fair value of stock options was estimated on the date of the grant using a Black-Scholes valuation model (“BSM”) and the assumptions in the following table. Expected volatility is based on historical volatility of the Company’s Class B common stock and other factors. The Company uses historical data on exercise of stock options, post vesting forfeitures and other factors to estimate the expected term of the stock-based payments granted. The risk free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company used the following weighted average assumptions in its BSM pricing model: Year ended July 31, 2018 2017 Expected term 6.0 years 6.1 years Volatility 71 % 81 % Risk free interest rate 2.1 % 1.7 % Dividends — — Grant date fair value $ 1.38 $ 2.41 The following represents option activity for the fiscal years ended July 31, 2018 and 2017, including options granted prior to the spin-off on June 1, 2016 and options granted under the 2016 Incentive Plan adopted on June 2, 2016: Number of Options (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at July 31, 2016 1,440 $ 0.93 Granted 279 3.80 Exercised (281 ) 0.39 Cancelled / forfeited — — Outstanding at July 31, 2017 1,438 $ 1.59 8.22 $ 1,212 Granted 180 2.57 Exercised (172 ) 1.35 Cancelled / forfeited (132 ) 3.29 Outstanding at July 31, 2018 1,314 $ 1.58 7.40 $ 2,055 Exercisable at July 31, 2018 1,057 $ 1.19 7.05 $ 1,962 The total intrinsic value of options exercised during the years ended July 31, 2018 and 2017 was $0.3 million and $0.8 million, respectively. At July 31, 2018, there was $367,000 of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of 2.3 years. Restricted Stock As part of the Spin-Off, holders of IDT restricted Class B common stock and Deferred Stock Units (“DSUs”) received, in respect of those restricted shares and DSUs, one restricted share of the Company’s Class B common stock for every three restricted shares of IDT and one DSU of the Company for every three DSUs of IDT that they owned as of the record date for the Spin-Off (the same ratio as used for shares of our Class B common stock distributed by IDT in connection with the Spin-Off). As such, 111,842 shares of restricted stock and 7,767 DSUs were issued (adjusted for forfeitures) pursuant to the terms of the 2016 Incentive Plan. Such restricted shares of the Company’s Class B common stock are restricted under the same terms as the IDT restricted stock in respect of which they were issued. The restricted shares of the Company’s Class B common stock received in the Spin-Off are subject to forfeiture on the same terms, and their restrictions will lapse at the same time, as the corresponding IDT shares. The fair value of restricted shares of the Company’s Class B common stock is determined based on the closing price of the Company’s Class B common stock on the grant date. Share awards generally vest on a graded basis over three years of service. On July 16, 2018, the remaining 43,107 such restricted shares and the remaining such 3,713 DSUs were vested. In September 2017, the Company entered into an Agreement and Release with Freeform and certain of its former employees, pursuant to which the Company obtained releases for certain employees from their Freeform employment agreements in exchange for the repayment of certain of Freeform’s liabilities. The Company paid Freeform $125,000 in cash to pay its operating liabilities (with any excess to be refunded to the Company), and the Company paid the holders of Freeform’s convertible promissory notes cash of $97,567 and issued the noteholders a total of 126,679 shares of Zedge Class B common stock with a fair value of $242,000 on issuance, which are subject to a two-year lock-up agreement. The Company believes this transaction did not qualify as a business combination under ASU 2017-01, which the Company adopted early on August 1, 2017, and as such accounted for the payment of the Freeform liabilities that aggregated $465,000, as selling, general and administrative expense in the three months ended October 31, 2017. In July 2018, the Company received a $25,000 refund from Freeform. Accordingly, the Company reduced the Freeform acquihire costs from $465,000 to $440,000. In addition to the above payments, the Company granted a total of 192,953 restricted shares of the Company’s Class B common stock to former Freeform employees, which shall vest over a four-year period subject to continued employment. These shares had an aggregate grant date fair value of $369,000 which is being amortized on a straight-line basis over the vesting period. On February 7, 2018, the Compensation Committee and the Corporate Governance Committees of our Board of Directors approved a grant of 108,553 restricted shares of the Company’s Class B Common Stock to our Executive Chairman Michael Jonas. Mr. Jonas has agreed to accept all of his compensation for his service as Executive Chairman during fiscal 2018 in the form of equity in the Company and to make receipt of such equity compensation contingent on the Company achieving certain milestones relative to its fiscal 2018 budget. The grant was made at that time because the milestones previously set were achieved. These shares shall vest in equal amounts on February 7, 2019, 2020 and 2021.These shares had an aggregate grant date fair value of $330,000 which is being amortized on a straight-line basis over the vesting period. In fiscal 2018, the Company granted 49,533 restricted shares of its Class B common stock, which vested immediately, to its non-employee Board of Directors at an average grant date fair value of $3.00 per share. In fiscal 2017, the Company granted 17,349 restricted shares of its Class B common stock, which vested immediately, to its non-employee Board of Directors at a grant date fair value of $3.13 per share. The shares were awarded pursuant to the non-employee Board of Director’s semi-annual grant. At July 31, 2018, there were 301,506 non-vested restricted shares of the Company’s Class B common stock. At July 31, 2018, there was $567,000 of total unrecognized compensation cost related to these non-vested restricted shares, which is expected to be recognized over a weighted-average period of 2.8 years. The following represents restricted shares activity for the fiscal years ended July 31, 2018: Number of Shares Weighted Average Grant Date Fair Value Non-vested stock award award as of July 31, 2017 49,474 NA Granted 301,506 2.32 Vested (47,263 ) NA Forfeited (2,211 ) NA Non-vested stock award award as of July 31, 2018 301,506 $ 2.32 NA: Restricted shares awarded to the holders of IDT restricted Class B common stock as of part of Spin-Off in June, 2016, grant date fair value is not available

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jul. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Note 11—Related Party Transactions Following the Spin-Off, IDT charges the Company for services it provides pursuant to the Transition Services Agreement. The services provided pursuant to the Transition Services Agreement include human resources, payroll, investor relations, legal, accounting, tax, financial systems, management consulting and foreign exchange risk management. As of October 31, 2017, most of these services were discontinued and are being performed directly by Zedge or vendors retained by Zedge. Amounts charged by IDT to the Company are included in “Selling, general and administrative expense” in the consolidated statements of comprehensive loss. The change in the Company’s liability to IDT was as follows: Years ended July 31, 2018 2017 Balance at beginning of year $ 36 $ 299 Payments by IDT on behalf of the Company 303 937 Cash repayments, net of advances (338 ) (1,200 ) Balance at end of year $ 1 $ 36 In the years ended July 31, 2018 and 2017, the Company paid $174,000 and $137,000, respectively, to Braze Inc. (formerly “Appboy, Inc.”) for use of its customer relationship management and lifecycle marketing platform. The former Chief Executive Officer and Co-Founder of Braze, Inc. is a member of the Company’s Board of Directors.

Business Segment and Geographic

Business Segment and Geographic Information	12 Months Ended
	Jul. 31, 2018
Business Segment and Geographic Information [Abstract]
Business Segment and Geographic Information	Note 12—Business Segment and Geographic Information The Company provides a content platform, worldwide, centered on self-expression, attracting both creators looking to promote their content and consumers who utilize such content to express their identity, feelings, tastes and interests. The Company’s platform enables consumers to personalize their mobile devices with mostly free, high-quality ringtones, wallpapers, home screen app icons, widgets and notification sounds. In March 2018, the Company completed its rollout of Net long-lived assets and total assets held outside of the United States, which are located primarily in Norway, were as follows: United States Foreign Total (in thousands) Long-lived assets, net: July 31, 2018 $ 3,234 $ 235 $ 3,469 July 31, 2017 $ 2,537 $ 271 $ 2,808 Total assets: July 31, 2018 $ 7,647 $ 4,072 $ 11,719 July 31, 2017 $ 8,910 $ 3,621 $ 12,531

Revolving Credit Facility

Revolving Credit Facility	12 Months Ended
	Jul. 31, 2018
Revolving Credit Facility [Abstract]
Revolving Credit Facility	Note 13—Revolving Credit Facility As of September 27, 2016, the Company entered into a loan and security agreement with Western Alliance Bank for a revolving credit facility of up to $2.5 million. Advances under this facility may not exceed the lesser of $2.5 million or 80% of the Company’s eligible accounts receivable, subject to certain concentration limits. The revolving credit facility is secured by a lien on substantially all of the Company’s assets. The outstanding principal amount bears interest per annum at the greater of 3.5% or the prime rate plus 1.25%. Interest is payable monthly and all outstanding principal and any accrued and unpaid interest was due on the maturity date of September 27, 2018. The Company is required to pay an annual facility fee of $12,500 to Western Alliance Bank. The Company is also required to comply with various affirmative and negative covenants and to maintain certain financial ratios during the term of the revolving credit facility. The covenants include a prohibition on the Company paying any dividend on its capital stock. The Company may terminate this agreement at any time without penalty or premium provided that it pays down any outstanding principal, accrued interest and bank expenses. At July 31, 2018, there were no amounts outstanding under the revolving credit facility and the Company was in compliance with all of the covenants. Pursuant to a second Loan Security and Modification Agreement dated September 26, 2018, the Company and Western Alliance Bank agreed to extend this $2.5 million revolving credit facility to September 26, 2020 at substantially the same terms and conditions except for the minimum interest rate which has been raised to 5.0% from 3.5% in light of the rising interest rate environment. As of November 16, 2016, the Company entered into a Foreign Exchange Agreement with Western Alliance Bank to allow the Company to enter into foreign exchange contracts not to exceed $5.0 million in the aggregate at any point in time under its revolving credit facility. This limit was raised to approximately $6.5 million pursuant to the Loan and Security Modification Agreement dated May 30, 2018. The available borrowing under the revolving credit facility is reduced by an applicable foreign exchange reserve percentage as determined by Western Alliance Bank, in its reasonable discretion from time to time, which was initially set at 10% of the nominal amount of the foreign exchange contracts in effect at the relevant time. In December 2016, the applicable foreign exchange reserve percentage was changed so that the reduction of available borrowing for major currency forward contracts of less than six months tenor is set at 10% of the nominal amount of the foreign exchange contracts, and for contracts over six months tenor, 12.5% of the nominal amount of the foreign exchange contracts. At July 31, 2018, there were $2.0 million of outstanding foreign exchange contracts with less than six months tenor under the credit facility, and no contracts of greater than six months tenor, which reduced the available borrowing under the revolving credit facility by $200,000. On August 6 and August 13, 2018, we entered into a series of forward contracts valued at $4.5 million in the aggregate, see Note 3 above.

Defined Contribution Plan

Defined Contribution Plan	12 Months Ended
	Jul. 31, 2018
Defined Contribution Plan [Abstract]
Defined Contribution Plan	Note 14—Defined Contribution Plan In September 2016, the Company adopted a 401(k) Plan, effective August 1, 2016, available to all employees meeting certain eligibility criteria. The Plan permits participants to elect pre-tax or after tax salary deferrals that will be contributed to the Plan, not to exceed the limits established by the Internal Revenue Code. The Plan provides for enhanced safe harbor employer matching contributions. All contributions made by participants and safe harbor matching contributions by the Company will be fully vested. The Company’s Class A common stock and Class B common stock are not investment options for elective deferrals by the Plan’s participants. However, matching contributions may be made in shares of the Company. The Company’s cost for matching contributions to the Plan were $33,000 and $19,000 for the years ended July 31, 2018 and 2017, respectively. In lieu of making cash contribution, the Company opted to contribute 11,130 shares and 5,500 shares of the Company’s Class B common stock to the Plan for fiscal 2018 and fiscal 2017 respectively.

Subsequent Event-TreSensa

Subsequent Event-TreSensa	12 Months Ended
	Jul. 31, 2018
Subsequent Event-TreSensa [Abstract]
Subsequent Event-TreSensa	Note 15—Subsequent Event-TreSensa On August 23, 2018, the Company made a $250,000 investment in TreSensa, Inc. (“TreSensa”) representing a less than 1% equity ownership interest on a fully-diluted basis, and concurrently entered into a playable ad distribution agreement with TreSensa under which the Company shall be paid

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jul. 31, 2018
Description of Business and Summary of Significant Accounting Policies [Abstract]
Description of Business	Description of Business The Company provides a content discovery and creation platform with a global audience of more than 34 million monthly active users. The Company’s Zedge app offers an easy, entertaining and immersive way for users to engage with our rich and diverse library of more than one million images and audio clips. Such content is optimal for mobile phone customization, co-creation which allows users to personalize the content with digital stickers for social posting and sharing, and even printing on personalized physical goods like phone cases and apparel, and other uses. Currently, the Company offers wallpapers, stickers, ringtones, notification sounds and video wallpapers. In the future, the Company plans on offering new content verticals and supporting enhanced features furthering its goal of being the hub for all “everything you” content and functionality. The Company conducts business as a single operating segment. The consolidated financial statements include all of the accounts of the Company and Zedge Europe AS, a Norwegian corporation and Zedge Canada, Inc. All significant intercompany accounts and transactions have been eliminated. 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 2018 refers to the fiscal year ended July 31, 2018).
The Spin-Off	The Spin-Off The Company was formerly a majority-owned subsidiary of IDT Corporation (“IDT”). On June 1, 2016, IDT’s interest in the Company was spun-off by IDT to IDT’s stockholders and the Company became an independent public company through a pro rata distribution of the Company’s common stock held by IDT to IDT’s stockholders (the “Spin-Off”).
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
Revenue Recognition	Revenue Recognition The Company generates approximately 90% of its revenues from selling its advertising inventory to advertising networks, advertising exchanges, and direct arrangements with advertisers. Advertising networks and advertising exchanges are third party technology platforms that facilitate the buying and selling of media advertising inventory from multiple ad networks. The price of advertising inventory is fixed on an advertising network whereas the price for inventory is determined through bidding on an advertising exchange. The Company recognizes advertising revenue as advertisements are delivered to users through impressions, ad views or app installs (depending on the terms agreed upon with the advertiser), as long as evidence of the arrangement with the payer exists (generally through an executed contract), the price is fixed and determinable, and the Company has assessed collectability as reasonably assured. The advertiser may compensate the Company on a cost-per-impression, cost-per-click, cost-per-action or cost-per-install basis. The remainder of the Company’s revenue is primarily generated from managing and optimizing the advertising inventory of a third-party mobile application publisher, as well as overseeing the billing, collections and reporting related to advertising for this publisher. The Company generally reports its revenue net of amounts due to agencies and brokers because the Company is not the primary obligor in the relevant arrangements, it does not finalize the pricing, and it does not establish or maintain a direct relationship with the advertiser. Certain advertising arrangements that are directly between the Company and advertisers are recognized gross equal to the price paid to the Company by the customer since the Company is the primary obligor and the Company determines the price. Any third party costs related to such direct relationships are recognized as direct cost of revenues. In Zedge Premium, the Company generally report revenue net of the 70% share that is paid to the artists who own the licensed content. The Company recognizes revenue based on reports that it receives from the ad networks and ad exchanges who respectively track and report the installs and impressions and pay the Company based on these reports. Independently the Company compares and reconciles these reports with data from each of the client sites and dispute any differences. Depending on the nature of the advertising agreement the Company records revenue either when we serve an end-user with a paid advertising impression or when a user installs an app from an advertiser who pays for the install. Being that the advertiser simultaneously receives and consumes the benefits provided by Zedge’s performance we view this as our output measure. Payment from the ad partnerships are typically received anywhere between 30-60 days from issuance of the invoice, and any revenue adjustments are already factored into the payment.
Concentration of Credit Risk and Significant Customers	Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company holds cash and cash equivalents at several major financial institutions, which may exceed FDIC insured limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. The Company routinely assesses the financial strength of its customers. As a result, the Company believes that its accounts receivable credit risk exposure is limited and has not experienced significant write-downs in its accounts receivable balances. In the year ended July 31, 2018, three customers represented 35%, 22% and 14% of the Company’s revenue and in the year ended July 31, 2017 three customers represented 43%, 17% and 10% of the Company’s revenue. At July 31, 2018, three customers represented 46%, 28% and 14% of the Company’s accounts receivable balance and at July 31, 2017, two customers represented 47% and 12% of the Company’s accounts receivable balance. All of these significant customers are advertising exchanges operated by leading companies, and the receivables represent many smaller amounts due from advertisers.
Direct Cost of Revenues	Direct Cost of Revenues Direct cost of revenues for the Company consists of fees paid to third parties that provide the Company with internet hosting, content serving and filtering, and marketing automation services. Such costs are charged to expense as incurred.
Long-Lived Assets	Long-Lived Assets Property and equipment is recorded at cost and depreciated on a straight-line basis over its estimated useful lives, which range as follows: capitalized software and technology development costs—3 years; and other—3, 5, 7, 10 or 20 years. Other is comprised of furniture and fixtures, office equipment, video conference equipment, computer hardware and computer software. The Company tests the recoverability of its long-lived assets with finite useful lives whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company tests for recoverability based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, the Company will record an impairment loss, if any, based on the difference between the estimated fair value and the carrying value of the asset. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such asset using an appropriate discount rate. Cash flow projections and fair value estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record impairments in future periods and such impairments could be material.
Capitalized Software and Technology Development Costs	Capitalized Software and Technology Development Costs The Company accounts for capitalized software and technology development costs in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 350-40. These costs consist of internal development costs on various projects that the Company invested in specific to the various platforms on which the Company operates its service that are capitalized during the application development stage. Capitalized software and technology development costs are included in property and equipment, net and are amortized over the estimated useful life of the software, generally three years. All ordinary maintenance costs are expensed as incurred.
Goodwill	Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of the business acquired. Under ASC 350, Intangibles-Goodwill and Other The Company performs its annual, or interim, goodwill impairment test by comparing the fair value of its reporting unit with its carrying amount. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of its reporting unit when measuring the goodwill impairment loss, if applicable. The Company’s estimated fair value substantially exceeded its carrying value in Step 1 of the Company’s annual impairment tests as of May 1st for the years ended July 31, 2018 and 2017. The Company concluded that no goodwill impairment existed in the years ended July 31, 2018 and 2017. The Company uses the market approach (guideline company method) for its Step 1 analysis.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Income Taxes	Income Taxes The accompanying financial statements include provisions for federal, state and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in its assessment of a valuation allowance. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. Tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of tax benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability. The Company classifies interest and penalties on income taxes as a component of income tax expense.
Contingencies	Contingencies The Company accrues for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the Company records its best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred.
Earnings Per Share	Earnings Per Share Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: Year ended July 31, 2018 2017 Basic weighted-average number of shares 9,803 9,467 Effect of dilutive securities: Stock options — — Non-vested restricted Class B common stock — — Diluted weighted-average number of shares 9,803 9,467 The following shares were excluded from the diluted earnings per share computation because their inclusion would have been anti-dilutive: Year ended July 31, 2018 2017 Stock options 1,314 1,438 Non-vested restricted Class B common stock 302 53 Shares excluded from the calculation of diluted earnings per share 1,616 1,491 For both fiscal 2018 and fiscal 2017, the diluted earnings per share equals basic earnings per share because the Company had a net loss and the impact of the assumed exercise of stock options and vesting of restricted stock would have been anti-dilutive.
Stock-Based Compensation	Stock-Based Compensation The Company recognizes compensation expense for all of its grants of stock-based awards based on the estimated fair value on the grant date. Compensation cost for awards is recognized using the straight-line method over the vesting period. Stock-based compensation is included in selling, general and administrative expense.
Fair Value Measurements	Fair Value Measurements Fair value of financial and non-financial assets and liabilities is defined as an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used to measure fair value, which prioritizes the inputs to valuation techniques used to measure fair value, is as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 – unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.
Derivative Instruments - Foreign Exchange Forward Contracts	Derivative Instruments – Foreign Exchange Forward Contracts The Company’s earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, primarily the U.S. Dollar
Functional Currency	Functional Currency The U.S. Dollar is the Company’s functional currency. The functional currencies for the Company’s subsidiaries that operate outside of the United States are NOK for Zedge Europe AS and the Canadian Dollar for Zedge Canada, Inc., which are the currencies of the primary economic environments in which they primarily expend cash. The Company translates assets and liabilities denominated in foreign currencies to U.S. Dollars at the exchange rate in effect as of the financial statement date, and translates accounts from the statements of comprehensive using the weighted average exchange rate for the period. Gains or losses resulting from foreign currency translations are recorded in “Accumulated other comprehensive loss” in the accompanying consolidated balance sheets. Foreign currency transaction gains and losses including gains and losses from currency exchange rate changes related to intercompany receivables and payables are reported in “Net (loss) gain resulting from foreign exchange transactions” in the accompanying
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on known troubled accounts, historical experience and other currently available evidence. Doubtful accounts are written-off upon final determination that the trade accounts will not be collected.
Recently Issued Accounting Standards Not Yet Adopted	Recently Issued Accounting Standards Not Yet Adopted In June 2018, the FASB issued a new ASU which expands the scope of ASC Topic 718, Compensation - Stock Compensation In February 2018, the FASB issued an ASU to give entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings (accumulated deficits). The new guidance also requires entities to make additional disclosures, regardless of whether reclassification of tax effects is elected. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact that this ASU will have on its consolidated financial statements. In August 2017, the FASB issued an ASU intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the ASU includes certain targeted improvements to simplify the application of hedge accounting guidance in U.S. GAAP. The amendments in this ASU are effective for the Company on August 1, 2019. Early application is permitted. Entities will apply the amendments to cash flow and net investment hedge relationships that exist on the date of adoption using a modified retrospective approach. The presentation and disclosure requirements will be applied prospectively. The Company is evaluating the impact that this ASU will have on its consolidated financial statements. In May 2017, the FASB issued an ASU to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Pursuant to this ASU, an entity should account for the effects of a modification unless all the following are met: (1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified (if the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification); (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The Company will adopt the amendments in this ASU prospectively to an award modified on or after on August 1, 2018. The Company does not expect that the new standard will have a significant impact on its consolidated financial statements. In June 2016, the FASB issued an ASU that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except the losses will be recognized as allowances instead of reductions in the amortized cost of the securities. In addition, an entity will have to disclose significantly more information about allowances, credit quality indicators and past due securities. The new provisions will be applied as a cumulative-effect adjustment to retained earnings. The Company will adopt the new standard on August 1, 2020. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In February 2016, the FASB issued an ASU related to the accounting for leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company will adopt the new standard on August 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard that will supersede most of the current revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (“IFRS”). The goals of the revenue recognition project were to clarify and converge the revenue recognition principles under U.S. GAAP and IFRS and to develop guidance that would streamline and enhance revenue recognition requirements. To accomplish this objective, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company will adopt this standard effective August 1, 2018 using the modified retrospective approach. The Company has identified its main revenue streams, which are advertising revenue, app installs and advertising ops outsourcing. In addition, the Company substantially completed reviewing contracts and other relevant documents for most of its customers that comprises its main revenue streams. Based on this preliminary analysis to date of the adoption of the standard, the Company has not identified a significant impact on its consolidated financial statements, although this is subject to change as the Company completes the process.

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jul. 31, 2018
Description of Business and Summary of Significant Accounting Policies [Abstract]
Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings per share	Year ended July 31, 2018 2017 Basic weighted-average number of shares 9,803 9,467 Effect of dilutive securities: Stock options — — Non-vested restricted Class B common stock — — Diluted weighted-average number of shares 9,803 9,467
Schedule of shares were excluded from the diluted earnings per share	Year ended July 31, 2018 2017 Stock options 1,314 1,438 Non-vested restricted Class B common stock 302 53 Shares excluded from the calculation of diluted earnings per share 1,616 1,491

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Jul. 31, 2018
Fair Value Measurements [Abstract]
Summary of balance of assets and liabilities measured at fair value on a recurring basis	Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) July 31, 2018 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ 41 $ - $ 41 July 31, 2017 Assets: Foreign exchange forward contracts $ - $ 137 $ - $ 137 Liabilities: Foreign exchange forward contracts $ - $ - $ - $ -

Derivative Instruments (Tables)

Derivative Instruments (Tables)	12 Months Ended
	Jul. 31, 2018
Derivative [Line Items]
Schedule of derivative instruments contracts	Settlement Date U.S. Dollar Amount NOK Amount Aug-18 500,000 3,994,495 Sep-18 500,000 3,989,945 Oct-18 500,000 3,986,095 Nov-18 500,000 3,983,595 Total 2,000,000 15,954,130
Schedule of fair value of derivative assets and liabilities	July 31, 2018 2017 Assets Derivatives: Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Other current assets $ — $ 137 Liabilities Derivatives: Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Accrued expenses $ 41 $ —
Schedule of derivative instruments on consolidated statements of comprehensive loss	Year ended July 31, (in thousands) 2018 2017 Derivatives not designated or not qualifying as hedging instruments Location of (Loss) Gain Recognized on Derivatives Foreign exchange forward contracts Net (loss) gain resulting from foreign exchange transactions $ (52 ) $ 105
Western Alliance Bank [Member] | August 6, 2018 [Member]
Derivative [Line Items]
Schedule of derivative instruments contracts	Settlement Date U.S. Dollar Amount NOK Amount Dec-18 $ 500,000 4,059,365 Jan-19 500,000 4,053,465 Feb-19 500,000 4,048,715 Total $ 1,500,000 12,161,545
Western Alliance Bank [Member] | August 13, 2018 [Member]
Derivative [Line Items]
Schedule of derivative instruments contracts	Settlement Date U.S. Dollar Amount NOK Amount Mar-19 $ 500,000 4,118,040 Apr-19 500,000 4,112,740 May-19 500,000 4,107,440 Jun-19 500,000 4,102,240 Jul-19 500,000 4,097,140 Aug-19 500,000 4,091,590 Total $ 3,000,000 24,629,190

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jul. 31, 2018
Property and Equipment [Abstract]
Schedule of property and equipment	July 31, 2018 2017 Capitalized software and technology development costs $ 8,103 $ 6,419 Other 308 297 8,411 6,716 Less accumulated depreciation and amortization (5,067 ) (4,038 ) Total $ 3,344 $ 2,678

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Jul. 31, 2018
Goodwill [Abstract]
Schedule of change in carrying amount of goodwill	(in thousands) Balance at July 31, 2016 $ 2,361 Foreign currency translation adjustments 157 Balance at July 31, 2017 2,518 Foreign currency translation adjustments (71 ) Balance at July 31, 2018 $ 2,447

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Jul. 31, 2018
Accrued Expenses [Abstract]
Summary of accrued expenses	July 31, (in thousands) 2018 2017 Accrued vacation $ 505 $ 685 Accrued payroll taxes 238 277 Accrued payroll and bonuses 393 250 Accrued severance 83 - Accrued advertising - 184 Accrued income taxes - 36 Accrued professional fees 96 130 Other 113 278 Total accrued expenses $ 1,428 $ 1,840

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Jul. 31, 2018
Commitments and Contingencies [Abstract]
Summary of future contractual obligations and other commercial commitments	Year ended July 31, (in thousands) 2019 2020 2021 2022 Total Real estate leases $ 260 $ 251 $ 271 $ 116 $ 898 Software as a Service (“SaaS”) license 281 100 - - 381 Total contractual obligations $ 541 $ 351 $ 271 $ 116 $ 1,279

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jul. 31, 2018
Income Taxes [Abstract]
Schedule of components of loss before income taxes	Year ended July 31, 2018 2017 Domestic $ (1,245 ) $ (717 ) Foreign (88 ) 90 Loss before income taxes $ (1,333 ) $ (627 )
Schedule of provision for (benefit from) income taxes	Year ended July 31, 2018 2017 Current: Foreign $ 59 $ 12 Federal — — State (1 ) — Total current expense 58 12 Deferred: Foreign 172 (28 ) Federal — — State — — Total deferred expense 172 (28 ) Provision for (benefit from) income taxes $ 230 $ (16 )
Schedule of differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes report	Year ended July 31, 2018 2017 U.S. federal income tax at statutory rate $ (352 ) $ (213 ) State income tax 136 (165 ) Valuation allowance (182 ) 717 Foreign tax rate differential 10 16 Meals 3 5 Stock compensation and employment credits (10 ) (381 ) Tax Cuts and Jobs Act 393 — Transition Tax 161 — Other 71 5 Provision for (benefit from) income taxes $ 230 $ (16 )
Schedule of deferred tax assets and deferred tax liabilities	July 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 698 $ 951 Reserves and accruals 215 377 Stock-based compensation 137 76 Net deferred tax assets 1,050 1,404 Less valuation allowance (1,050 ) (1,232 ) Total deferred tax assets — 172 Total deferred tax liabilities — — Deferred tax assets, net $ — $ 172
Schedule of change in the valuation allowance	Year ended July 31 Balance at Additions Deductions Balance at 2018 Reserves deducted from deferred income taxes, net: Valuation allowance $ 1,232 $ — $ (182 ) $ 1,050 2017 Reserves deducted from deferred income taxes, net: Valuation allowance $ 515 $ 717 $ $ 1,232

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Jul. 31, 2018
Summary of weighted average assumptions in BSM pricing model	Year ended July 31, 2018 2017 Expected term 6.0 years 6.1 years Volatility 71 % 81 % Risk free interest rate 2.1 % 1.7 % Dividends — — Grant date fair value $ 1.38 $ 2.41
Summary of stock option activity	Number of Options (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at July 31, 2016 1,440 $ 0.93 Granted 279 3.80 Exercised (281 ) 0.39 Cancelled / forfeited — — Outstanding at July 31, 2017 1,438 $ 1.59 8.22 $ 1,212 Granted 180 2.57 Exercised (172 ) 1.35 Cancelled / forfeited (132 ) 3.29 Outstanding at July 31, 2018 1,314 $ 1.58 7.40 $ 2,055 Exercisable at July 31, 2018 1,057 $ 1.19 7.05 $ 1,962
Restricted Stock [Member]
Summary of stock option activity	Number of Shares Weighted Average Grant Date Fair Value Non-vested stock award award as of July 31, 2017 49,474 NA Granted 301,506 2.32 Vested (47,263 ) NA Forfeited (2,211 ) NA Non-vested stock award award as of July 31, 2018 301,506 $ 2.32

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Jul. 31, 2018
Related Party Transactions [Abstract]
Schedule of change in Company's liability to IDT	Years ended July 31, 2018 2017 Balance at beginning of year $ 36 $ 299 Payments by IDT on behalf of the Company 303 937 Cash repayments, net of advances (338 ) (1,200 ) Balance at end of year $ 1 $ 36

Business Segment and Geograph_2

Business Segment and Geographic Information (Tables)	12 Months Ended
	Jul. 31, 2018
Business Segment and Geographic Information [Abstract]
Schedule of net long-lived assets and total assets by geographic areas	United States Foreign Total (in thousands) Long-lived assets, net: July 31, 2018 $ 3,234 $ 235 $ 3,469 July 31, 2017 $ 2,537 $ 271 $ 2,808 Total assets: July 31, 2018 $ 7,647 $ 4,072 $ 11,719 July 31, 2017 $ 8,910 $ 3,621 $ 12,531

Description of Business and S_4

Description of Business and Summary of Significant Accounting Policies (Details) - shares shares in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company's common stockholders consists of the following:
Basic weighted-average number of shares	9,803	9,467
Effect of dilutive securities:
Stock options
Non-vested restricted Class B common stock
Diluted weighted-average number of shares	9,803	9,467

Description of Business and S_5

Description of Business and Summary of Significant Accounting Policies (Details 1) - shares shares in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	1,616	1,491
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	1,314	1,438
Non-vested restricted Class B common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	302	53

Description of Business and S_6

Description of Business and Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Jul. 31, 2018CustomerSegments	Jul. 31, 2017Customer
Description of Business and Summary of Significant Accounting Policies (Textual)
Number of segments | Segments	1
Description pertaining to income tax	The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability.
Direct cost of revenues, description	Not in fiscal 2018. There will roughly $6750 monthly cost related to Zedge Premium in fiscal 2019.
Capitalized software and technology development costs [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Estimated useful lives of long-lived assets	3 years
Furniture and Fixtures [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Estimated useful lives of long-lived assets	3 years
Office Equipment [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Estimated useful lives of long-lived assets	5 years
Video Conference Equipment [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Estimated useful lives of long-lived assets	7 years
Computer Equipment [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Estimated useful lives of long-lived assets	10 years
Computer Software [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Estimated useful lives of long-lived assets	20 years
Revenue [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	90.00%
Revenue [Member] | Zedge Premium [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	70.00%
Revenue [Member] | Customer one [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	35.00%	43.00%
Number of customers	3	3
Revenue [Member] | Customer two [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	22.00%	17.00%
Number of customers	3	3
Revenue [Member] | Customer three [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	14.00%	10.00%
Number of customers	3	3
Accounts receivable [Member] | Customer one [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	46.00%	47.00%
Number of customers	3	2
Accounts receivable [Member] | Customer two [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	28.00%	12.00%
Number of customers	3	2
Accounts receivable [Member] | Customer three [Member]
Description of Business and Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	14.00%
Number of customers	3

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Assets:
Foreign exchange forward contracts		$ 137
Liabilities:
Foreign exchange forward contracts	41
Fair Value Measurements, Recurring [Member] | Level 1 [Member]
Assets:
Foreign exchange forward contracts
Liabilities:
Foreign exchange forward contracts
Fair Value Measurements, Recurring [Member] | Level 2 [Member]
Assets:
Foreign exchange forward contracts		137
Liabilities:
Foreign exchange forward contracts	41
Fair Value Measurements, Recurring [Member] | Level 3 [Member]
Assets:
Foreign exchange forward contracts
Liabilities:
Foreign exchange forward contracts

Derivative Instruments (Details

Derivative Instruments (Details)	12 Months Ended
	Jul. 31, 2018USD ($)	Jul. 31, 2018NOK (kr)
Derivative [Line Items]
Amount	$ 2,000,000	kr 15,954,130
Aug-18 [Member]
Derivative [Line Items]
Settlement Date	Aug. 31, 2018	Aug. 31, 2018
Amount	$ 500,000	kr 3,994,495
Sep-18 [Member]
Derivative [Line Items]
Settlement Date	Sep. 30, 2018	Sep. 30, 2018
Amount	$ 500,000	kr 3,989,945
Oct-18 [Member]
Derivative [Line Items]
Settlement Date	Oct. 31, 2018	Oct. 31, 2018
Amount	$ 500,000	kr 3,986,095
Nov-18 [Member]
Derivative [Line Items]
Settlement Date	Nov. 30, 2018	Nov. 30, 2018
Amount	$ 500,000	kr 3,983,595

Derivative Instruments (Detai_2

Derivative Instruments (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Other current assets [Member]
Derivatives not designated or not qualifying as hedging instruments
Assets Derivatives: Foreign exchange forward contracts		$ 137
Balance Sheet Location, Foreign exchange forward contracts, description	Other current assets	Other current assets
Accrued expenses [Member]
Derivatives not designated or not qualifying as hedging instruments
Liabilities Derivatives: Foreign exchange forward contracts	$ 41
Balance Sheet Location, Foreign exchange forward contracts, description	Accrued expenses	Accrued expenses

Derivative Instruments (Detai_3

Derivative Instruments (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Derivatives not designated or not qualifying as hedging instruments
Foreign exchange forward contracts	$ (52)	$ 105
Location of (Loss) Gain Recognized on Derivatives	Net (loss) gain resulting from foreign exchange transactions.	Net (loss) gain resulting from foreign exchange transactions.

Derivative Instruments (Detai_4

Derivative Instruments (Details 3)	1 Months Ended				12 Months Ended
	Aug. 13, 2018USD ($)	Aug. 13, 2018NOK (kr)	Aug. 06, 2018USD ($)	Aug. 06, 2018NOK (kr)	Jul. 31, 2018USD ($)	Jul. 31, 2018NOK (kr)
Derivative [Line Items]
Amount					$ 2,000,000	kr 15,954,130
Subsequent Event [Member] | Western Alliance Bank [Member]
Derivative [Line Items]
Amount	$ 3,000,000	kr 24,629,190	$ 1,500,000	kr 12,161,545
Subsequent Event [Member] | Western Alliance Bank [Member] | Dec-18 [Member]
Derivative [Line Items]
Settlement Date			Dec. 31, 2018	Dec. 31, 2018
Amount			$ 500,000	kr 4,059,365
Subsequent Event [Member] | Western Alliance Bank [Member] | Jan-19 [Member]
Derivative [Line Items]
Settlement Date			Jan. 31, 2019	Jan. 31, 2019
Amount			$ 500,000	kr 4,053,465
Subsequent Event [Member] | Western Alliance Bank [Member] | Feb-19 [Member]
Derivative [Line Items]
Settlement Date			Feb. 28, 2019	Feb. 28, 2019
Amount			$ 500,000	kr 4,048,715

Derivative Instruments (Detai_5

Derivative Instruments (Details 4)	1 Months Ended				12 Months Ended
	Aug. 13, 2018USD ($)	Aug. 13, 2018NOK (kr)	Aug. 06, 2018USD ($)	Aug. 06, 2018NOK (kr)	Jul. 31, 2018USD ($)	Jul. 31, 2018NOK (kr)
Derivative [Line Items]
Amount					$ 2,000,000	kr 15,954,130
Subsequent Event [Member] | Western Alliance Bank [Member]
Derivative [Line Items]
Amount	$ 3,000,000	kr 24,629,190	$ 1,500,000	kr 12,161,545
Subsequent Event [Member] | Western Alliance Bank [Member] | Mar-19 [Member]
Derivative [Line Items]
Settlement Date	Mar. 31, 2019	Mar. 31, 2019
Amount	$ 500,000	kr 4,118,040
Subsequent Event [Member] | Western Alliance Bank [Member] | Apr-19 [Member]
Derivative [Line Items]
Settlement Date	Apr. 30, 2019	Apr. 30, 2019
Amount	$ 500,000	kr 4,112,740
Subsequent Event [Member] | Western Alliance Bank [Member] | May-19 [Member]
Derivative [Line Items]
Settlement Date	May 31, 2019	May 31, 2019
Amount	$ 500,000	kr 4,107,440
Subsequent Event [Member] | Western Alliance Bank [Member] | Jun-19 [Member]
Derivative [Line Items]
Settlement Date	Jun. 30, 2019	Jun. 30, 2019
Amount	$ 500,000	kr 4,102,240
Subsequent Event [Member] | Western Alliance Bank [Member] | Jul-19 [Member]
Derivative [Line Items]
Settlement Date	Jul. 31, 2019	Jul. 31, 2019
Amount	$ 500,000	kr 4,097,140
Subsequent Event [Member] | Western Alliance Bank [Member] | Aug-19 [Member]
Derivative [Line Items]
Settlement Date	Aug. 31, 2019	Aug. 31, 2019
Amount	$ 500,000	kr 4,091,590

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Property and Equipment [Abstract]
Capitalized software and technology development costs	$ 8,103	$ 6,419
Other	308	297
Property and equipment, gross	8,411	6,716
Less accumulated depreciation and amortization	(5,067)	(4,038)
Total	$ 3,344	$ 2,678

Property and Equipment (Detai_2

Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Property and Equipment (Textual)
Depreciation and amortization expense	$ 1,033,000	$ 643,000
Write-off of capitalized software and technology development costs		$ 36,000

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Goodwill [Abstract]
Beginning Balance	$ 2,518	$ 2,361
Foreign currency translation adjustments	(71)	157
Ending Balance	$ 2,447	$ 2,518

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Accrued Expenses [Abstract]
Accrued vacation	$ 505	$ 685
Accrued payroll taxes	238	277
Accrued payroll and bonuses	393	250
Accrued severance	83
Accrued advertising		184
Accrued income taxes		36
Accrued professional fees	96	130
Other	113	278
Total accrued expenses	$ 1,428	$ 1,840

Equity (Details)

Equity (Details)	12 Months Ended
	Jul. 31, 2018
Equity (Textual)
Common stock, voting rights	The holders of Class A common stock are entitled to three votes per share and the holders of Class B common stock are entitled to one-tenth of a vote per share. Each share of Class A common stock may be converted into one share of Class B common stock, at any time, at the option of the holder.

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Jul. 31, 2018USD ($)
Year ended July 31,
2,019	$ 541
2,020	351
2,021	271
2,022	116
Total	1,279
Real estate leases [Member]
Year ended July 31,
2,019	260
2,020	251
2,021	271
2,022	116
Total	898
Software as a Service ("SaaS") license [Member]
Year ended July 31,
2,019	281
2,020	100
2,021
2,022
Total	$ 381

Commitments and Contingencies_3

Commitments and Contingencies (Details Textual) - USD ($)	Mar. 31, 2014	Jul. 31, 2018	Jul. 31, 2017
Commitments and Contingencies (Textual)
Rental expense under operating leases		$ 328,000	$ 289,000
Lawsuit approximate amount	$ 1,600,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Income Taxes [Abstract]
Domestic	$ (1,245)	$ (717)
Foreign	(88)	90
Loss before income taxes	$ (1,333)	$ (627)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Current:
Foreign	$ 59	$ 12
Federal
State	(1)
Total current expense	58	12
Deferred:
Foreign	172	(28)
Federal
State
Total deferred expense	172	(28)
Provision for (benefit from) income taxes	$ 230	$ (16)

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Effective income tax rate reconciliation
U.S. federal income tax at statutory rate	$ (352)	$ (213)
State income tax	136	(165)
Valuation allowance	(182)	717
Foreign tax rate differential	10	16
Meals	3	5
Stock compensation and employment credits	(10)	(381)
Tax Cuts and Jobs Act	393
Transition Tax	161
Other	71	5
Provision for (benefit from) income taxes	$ 230	$ (16)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Deferred tax assets:
Net operating loss carryforwards	$ 698	$ 951
Reserves and accruals	215	377
Stock-based compensation	137	76
Net deferred tax assets	1,050	1,404
Less valuation allowance	(1,050)	(1,232)
Total deferred tax assets		172
Total deferred tax liabilities
Deferred tax assets, net		$ 172

Income Taxes (Details 4)

Income Taxes (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Change in the valuation allowance for deferred tax assets
Balance at beginning of year	$ 1,232	$ 515
Additions charged to costs and expenses		717
Deductions	(182)
Balance at end of year	$ 1,050	$ 1,232

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 22, 2017	Jul. 31, 2018	Jul. 31, 2017
Income Taxes (Textual)
Interest and penalties on income taxes		$ 3,800
Federal and state net operating loss carryforwards expire date		Jul. 31, 2036
Net operating loss ("NOL") carryforwards, Foreign		$ 420,000
Deferred tax assets, decrease in valuation allowance		(182,000)	717,000
Transition tax		$ 161,000
Blended rate		26.42%
Other current assets		$ 302,000	427,000
Selling, general and administrative expense		9,581,000	8,468,000
Tax Act [Member]
Income Taxes (Textual)
Deferred tax assets, decrease in valuation allowance		393,000
Maximum [Member]
Income Taxes (Textual)
Change in the federal rate	35.00%
Minimum [Member]
Income Taxes (Textual)
Change in the federal rate	21.00%
Federal operating loss carryforward [Member]
Income Taxes (Textual)
Net operating loss ("NOL") carryforwards		2,300,000
State operating loss carryforward [Member]
Income Taxes (Textual)
Net operating loss ("NOL") carryforwards		2,000,000
Norway SkatteFUNN [Member]
Income Taxes (Textual)
Other current assets		208,000	260,000
Selling, general and administrative expense		$ 39,000	$ 289,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - Stock options [Member] - $ / shares	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	6 years	6 years 1 month 6 days
Volatility	71.00%	81.00%
Risk free interest rate	2.10%	1.70%
Dividends
Grant date fair value	$ 1.38	$ 2.41

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details 1) - Stock options [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Number of Options, Beginning	1,438	1,440
Granted, Number of Options	180	279
Exercised, Number of Options	(172)	(281)
Cancelled / forfeited, Number of Options	(132)
Outstanding, Number of Options, Ending	1,314	1,438
Exercisable, Number of Options	1,057
Outstanding, Weighted-Average Exercise Price, Beginning	$ 1.59	$ 0.93
Granted, Weighted-Average Exercise Price	2.57	3.80
Exercised, Weighted-Average Exercise Price	1.35	0.39
Cancelled / forfeited, Weighted-Average Exercise Price	3.29
Outstanding, Weighted-Average Exercise Price, Ending	1.58	$ 1.59
Exercisable, Weighted-Average Exercise Price	$ 1.19
Outstanding, Weighted-Average Remaining Contractual Term (in years)	7 years 4 months 24 days	8 years 2 months 19 days
Exercisable, Weighted-Average Remaining Contractual Term (in years)	7 years 18 days
Outstanding, Aggregate Intrinsic Value	$ 2,055	$ 1,212
Exercisable, Aggregate Intrinsic Value	$ 1,962

Stock-Based Compensation (Det_3

Stock-Based Compensation (Details 2) - Restricted Stock [Member]	12 Months Ended
	Jul. 31, 2018$ / sharesshares
Number of Shares
Non-vested stock award | shares	49,474
Granted | shares	301,506
Vested | shares	(47,263)
Forfeited | shares	(2,211)
Non-vested stock award | shares	301,506
Weighted Average Grant Date Fair Value
Non-vested stock award | $ / shares
Granted | $ / shares	2.32
Vested | $ / shares
Forfeited | $ / shares
Non-vested stock award | $ / shares	$ 2.32

Stock-Based Compensation (Det_4

Stock-Based Compensation (Details Textual)	Oct. 31, 2017USD ($)Employeesshares	Jul. 16, 2018shares	Feb. 07, 2018USD ($)shares	Nov. 30, 2017USD ($)shares	Oct. 18, 2017shares	Sep. 30, 2017USD ($)shares	Jan. 18, 2017shares	Sep. 30, 2016USD ($)shares	Jul. 31, 2018USD ($)$ / sharesshares	Jul. 31, 2017USD ($)$ / sharesshares
Stock-Based Compensation (Textual)
Proceeds from exercise of stock options | $									$ 232,000	$ 166,000
Unrecognized compensation cost, non-vested stock options | $	$ 159,000							$ 681,000
Restricted stock shares issued		43,107
Equity grant of options to purchase	124,435							231,327
Options vest period	3 years							3 years
Entity Number of Employees | Employees	55
Restricted shares, vested		3,713
Free Form Development Inc [Member]
Stock-Based Compensation (Textual)
Operating liabilities | $						$ 125,000
Convertible promissory notes | $						97,567
Selling, general and administrative expense | $						$ 465,000
Acquihire costs refund | $									25,000
Acquihire costs reduced | $									$ 440,000
Class B common stock [Member]
Stock-Based Compensation (Textual)
Shares issued									172,239	280,700
Restricted stock shares issued										17,349
Granted fair value | $ / shares									$ 3	$ 3.13
Restricted shares to former Freeform employees, shares									49,533
Non-vested restricted shares									301,506
Total unrecognized compensation cost | $									$ 567,000
Weighted-average remaining contractual term (in years)									2 years 9 months 18 days
Class B common stock [Member] | Free Form Development Inc [Member]
Stock-Based Compensation (Textual)
Options vest period						4 years
Convertible promissory notes, shares						126,679
Convertible promissory notes, fair value | $						$ 242,000
Restricted shares to former Freeform employees, shares						192,953
Restricted shares to former Freeform employees, value | $						$ 369,000
Class B common stock [Member] | Free Form Development Inc [Member] | Executive Chairman Michael Jonas [Member]
Stock-Based Compensation (Textual)
Restricted shares to former Freeform employees, shares			108,553
Aggregate grant date fair value amortized | $			$ 330,000
Restricted Stock [Member]
Stock-Based Compensation (Textual)
Granted fair value | $ / shares
Non-vested restricted shares									301,506	49,474
Restricted Stock [Member] | Class B common stock [Member]
Stock-Based Compensation (Textual)
Restricted stock shares issued									111,842
Deferred stock units									7,767
Stock options [Member]
Stock-Based Compensation (Textual)
Stock options exercisable upon vesting term									10 years
Proceeds from exercise of stock options | $									$ 231,810	$ 109,790
Intrinsic value of options | $									300,000	800,000
Unrecognized compensation cost, non-vested stock options | $									$ 367,000
Stock options weighted average period									2 years 3 months 19 days
Stock option vesting period, description									Prior to the Spin-Off, historical grants generally vested ratably over a three to four-year period. Subsequent to the Spin-Off, grants generally vest over a three-year period.
Collection of receivable from stockholder for stock option exercise | $										$ 56,840
Shares, cancelled									132
Weighted-average remaining contractual term (in years)									7 years 18 days
2016 Stock Option and Incentive Plan [Member]
Stock-Based Compensation (Textual)
Stock available for grant of awards					350,000
2016 Stock Option and Incentive Plan [Member] | Class B common stock [Member]
Stock-Based Compensation (Textual)
Share available for awards					1,041,000				392,000
Stock available for grant of awards							500,000
Option grant [Member]
Stock-Based Compensation (Textual)
Unrecognized compensation cost, non-vested stock options | $				$ 85,000
Shares, cancelled				53,026
Annual limit of shares per grantee				60,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Related Party Transactions [Abstract]
Balance at beginning of year	$ 36	$ 299
Payments by IDT on behalf of the Company	303	937
Cash repayments, net of advances	(338)	(1,200)
Balance at end of year	$ 1	$ 36

Related Party Transactions (D_2

Related Party Transactions (Details Textual) - USD ($)	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Appboy, Inc. [Member]
Related Party Transactions (Textual)
Related party payments	$ 174,000	$ 137,000

Business Segment and Geograph_3

Business Segment and Geographic Information (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Business Segment Information [Line Items]
Long-lived assets, net	$ 3,469	$ 2,808
Total assets	11,719	12,531
United States [Member]
Business Segment Information [Line Items]
Long-lived assets, net	3,234	2,537
Total assets	7,647	8,910
Foreign [Member]
Business Segment Information [Line Items]
Long-lived assets, net	235	271
Total assets	$ 4,072	$ 3,621

Business Segment and Geograph_4

Business Segment and Geographic Information (Details Textual)	12 Months Ended
	Jul. 31, 2018Segments
Business Segment and Geographic Information Details (Textual)
Number of operating segments	1

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - USD ($)	1 Months Ended		12 Months Ended
	Nov. 16, 2016	Sep. 27, 2016	Jul. 31, 2018
Revolving Credit Facility (Textual)
Loan and security agreement with Western Alliance Bank for revolving credit facility		$ 2,500,000
Line of credit facility, borrowing capacity, description			Advances under this facility may not exceed the lesser of $2.5 million or 80% of the Company's eligible accounts receivable, subject to certain concentration limits.
Interest rate, description			The outstanding principal amount bears interest per annum at the greater of 3.5% or the prime rate plus 1.25%.
Line of credit maturity date		Sep. 27, 2018
Line of credit facility annual fee		$ 12,500
Forward contracts, description			On August 6 and August 13, 2018, we entered into a series of forward contracts valued at $4.5 million in the aggregate
Foreign Exchange Agreement [Member]
Revolving Credit Facility (Textual)
Loan and security agreement with Western Alliance Bank for revolving credit facility	$ 5,000,000
Line of credit facility, borrowing capacity, description	The Company entered into a Foreign Exchange Agreement with Western Alliance Bank to allow the Company to enter into foreign exchange contracts not to exceed $5.0 million in the aggregate at any point in time under its revolving credit facility. This limit was raised to approximately $6.5 million pursuant to the Loan and Security Modification Agreement dated May 30, 2018. The available borrowing under the revolving credit facility is reduced by an applicable foreign exchange reserve percentage as determined by Western Alliance Bank, in its reasonable discretion from time to time, which was initially set at 10% of the nominal amount of the foreign exchange contracts in effect at the relevant time.		The revolving credit facility is reduced by an applicable foreign exchange reserve percentage as determined by Western Alliance Bank, in its reasonable discretion from time to time, which was initially set at 10% of the nominal amount of the foreign exchange contracts in effect at the relevant time.
Foreign exchange, description	This limit was raised to approximately $6.5 million pursuant to the Loan and Security Modification Agreement dated May 30, 2018.		In December 2016, the applicable foreign exchange reserve percentage was changed so that the reduction of available borrowing for major currency forward contracts of less than six months tenor is set at 10% of the nominal amount of the foreign exchange contracts, and for contracts over six months tenor, 12.5% of the nominal amount of the foreign exchange contracts.
Outstanding foreign exchange contracts amount			$ 2,000,000
Available borrowing reduction			$ 200,000
Loan Security and Modification Agreement [Member]
Revolving Credit Facility (Textual)
Revolving credit facility, description			Pursuant to a second Loan Security and Modification Agreement dated September 26, 2018, the Company and Western Alliance Bank agreed to extend this $2.5 million revolving credit facility to September 26, 2020 at substantially the same terms and conditions except for the minimum interest rate which has been raised to 5.0% from 3.5% in light of the rising interest rate environment.

Defined Contribution Plan (Deta

Defined Contribution Plan (Details) - USD ($) shares in Thousands	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Defined Contribution Plan Disclosure [Line Items]
Contribution plan cost	$ 33,000	$ 19,000
Class B common stock [Member]
Defined Contribution Plan Disclosure [Line Items]
Contributed plan, shares issued	11	5

Subsequent Event-TreSensa (Deta

Subsequent Event-TreSensa (Details) - Subsequent Event [Member] - TreSensa, Inc. [Member]	Aug. 23, 2018USD ($)
Subsequent Event-TreSensa (Textual)
Investment	$ 250,000
Equity ownership interest on a fully-diluted basis	1.00%