Zedge (ZDGE) 10-Q 14 Dec 20 2021 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Oct. 31, 2020	Dec. 10, 2020
Document Information Line Items
Entity Registrant Name	Zedge, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--07-31
Amendment Flag	false
Entity Central Index Key	0001667313
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Oct. 31, 2020
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Class A Common Stock
Document Information Line Items
Entity Common Stock, Shares Outstanding		524,775
Class B Common Stock
Document Information Line Items
Entity Common Stock, Shares Outstanding		11,999,012

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Current assets:
Cash and cash equivalents	$ 6,252	$ 5,111
Trade accounts receivable, net of allowance for doubtful accounts of $0 at October 31, 2020 and July 31, 2020	1,961	1,407
Prepaid expenses	261	123
Other current assets	76	113
Total current assets	8,550	6,754
Property and equipment, net	2,436	2,584
Goodwill	2,091	2,196
Other assets	390	471
Total assets	13,467	12,005
Current liabilities:
Trade accounts payable	365	290
Insurance premium loan payable	142
Accrued expenses and other current liabilities	1,198	1,210
Deferred revenues	1,559	1,338
Total current liabilities	3,264	2,838
Loans Payable	218	218
Other liabilities	3	64
Total liabilities	3,485	3,120
Commitments and contingencies (Notes 8 and 11)
Stockholders’ equity:
Preferred stock, $.01 par value; authorized shares—2,400; no shares issued
Class A common stock, $.01 par value; authorized shares—2,600; 525 shares issued and outstanding at October 31, 2020 and July 31, 2020	5	5
Class B common stock, $.01 par value; authorized shares—40,000; 11,827 shares issued and 11,769 shares outstanding at October 31, 2020, and 11,789 shares issued and 11,749 outstanding at July 31, 2020	118	118
Additional paid-in capital	25,962	25,725
Accumulated other comprehensive loss	(1,244)	(1,085)
Accumulated deficit	(14,757)	(15,802)
Treasury stock, 58 shares at October 31, 2020 and 40 shares at July 31, 2020, at cost	(102)	(76)
Total stockholders’ equity	9,982	8,885
Total liabilities and stockholders’ equity	$ 13,467	$ 12,005

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Allowance for doubtful accounts (in Dollars)	$ 0	$ 0
Preferred stock par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,400	2,400
Preferred stock, shares issued
Treasury stock, shares	58	40
Class A common stock
Common stock, par value (in Dollars per share)	$ 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 (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000	40,000
Common stock, shares issued	11,827	11,789
Common stock, shares outstanding	11,769	11,749

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Income Statement [Abstract]
Revenues	$ 3,762	$ 2,033
Costs and expenses:
Direct cost of revenues (exclusive of amortization of capitalized software and technology development costs included below)	304	328
Selling, general and administrative	2,006	1,945
Depreciation and amortization	359	505
Income (loss) from operations	1,093	(745)
Interest and other income (expense), net	1
Net loss resulting from foreign exchange transactions	(41)	(56)
Income (loss) before income taxes	1,053	(801)
Provision for income taxes	8
Net Income (loss)	1,045	(801)
Other comprehensive loss:
Changes in foreign currency translation adjustment	(159)	(143)
Total other comprehensive loss	(159)	(143)
Total comprehensive income (loss)	$ 886	$ (944)
Income (loss) per share attributable to Zedge, Inc. common stockholders:
Basic (in Dollars per share)	$ 0.09	$ (0.08)
Diluted (in Dollars per share)	$ 0.08	$ (0.08)
Weighted-average number of shares used in calculation of income (loss) per share:
Basic (in Shares)	12,191	10,196
Diluted (in Shares)	12,496	10,196

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Class A Common Stock	Class B Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock	Total
Balance at Jul. 31, 2019	$ 5	$ 99	$ 23,131	$ (985)	$ (15,243)	$ (47)	$ 6,960
Balance (in Shares) at Jul. 31, 2019	525	9,876
Stock-based compensation			98				98
Purchase of treasury stock						(22)	(22)
Foreign currency translation adjustment				(143)			(143)
Net Income (loss)					(801)		(801)
Balance at Oct. 31, 2019	$ 5	$ 99	23,229	(1,128)	(16,044)	(69)	6,092
Balance (in Shares) at Oct. 31, 2019	525	9,876
Balance at Jul. 31, 2020	$ 5	$ 118	25,725	(1,085)	(15,802)	(76)	8,885
Balance (in Shares) at Jul. 31, 2020	525	11,788
Stock-based compensation			237				237
Stock-based compensation (in Shares)		39
Purchase of treasury stock						(26)	(26)
Foreign currency translation adjustment				(159)			(159)
Net Income (loss)					1,045		1,045
Balance at Oct. 31, 2020	$ 5	$ 118	$ 25,962	$ (1,244)	$ (14,757)	$ (102)	$ 9,982
Balance (in Shares) at Oct. 31, 2020	525	11,827

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Operating activities
Net income (loss)	$ 1,045	$ (801)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	359	505
Stock-based compensation	237	98
Change in assets and liabilities:
Trade accounts receivable	(554)	68
Prepaid expenses and other current assets	80	207
Other assets	19	(13)
Trade accounts payable and accrued expenses	80	192
Deferred revenue	221	96
Net cash provided by operating activities	1,487	352
Investing activities
Capitalized software and technology development costs and purchase of equipment	(215)	(213)
Net cash used in investing activities	(215)	(213)
Financing activities
Repayment of insurance premium loan payable	(40)	(31)
Purchase of treasury stock in connection with restricted stock vesting	(26)	(22)
Net cash used in financing activities	(66)	(53)
Effect of exchange rate changes on cash and cash equivalents	(65)	(36)
Net increase in cash and cash equivalents	1,141	50
Cash and cash equivalents at beginning of period	5,111	1,609
Cash and cash equivalents at end of period	6,252	1,659
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for interest expenses	1	$ 1
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Note payable issued for insurance premium financing	$ 181

Basis of Presentation and Recen

Basis of Presentation and Recently Adopted Accounting Pronouncements	3 Months Ended
	Oct. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation and Recently Adopted Accounting Pronouncements	Note 1—Basis of Presentation and Recently Adopted Accounting Pronouncements Basis of Presentation The accompanying unaudited consolidated financial statements of Zedge, Inc. and its subsidiary, Zedge Europe AS (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended October 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2021 or any other period. The balance sheet at July 31, 2020 has been derived from the Company’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2020, as filed with the U.S. Securities and Exchange Commission (the “SEC”). 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 2021 refers to the fiscal year ending July 31, 2021). COVID-19 Impacts on Financial and Operational Results The COVID-19 pandemic has caused widespread economic disruption impacting the Company in a number of ways, most notably, with a significant decrease in global advertising spend in the third quarter of fiscal 2020, followed by a rebound in the following two consecutive quarters. The Company expects the extent of the impact on its financial and operational results will continue to depend on the duration and severity of the economic disruption caused by the COVID-19 pandemic, including demand for new phones sales worldwide which drives the new installs of the Company’s flagship app. As of October 31, 2020, the Company had $6.3 million of cash and cash equivalents. The Company has developed certain contingency plans to preserve liquidity if such actions become necessary due to worsening economic conditions, including those related to the COVID-19 pandemic. At the current time, the Company does not believe taking such actions would be prudent nor, does it expect to need to take such actions based on its current forecasts. The Company believes that its existing cash and cash equivalents, together with cash generated by operations will be sufficient to meet its working capital and capital expenditure requirements for the foreseeable future when accounting for the ill effects of the COVID-19 pandemic. The Company considered the impacts of the COVID-19 pandemic on its significant estimates and judgments used in applying its accounting policies in the three months ended October 31, 2020. In light of the pandemic, there is a greater degree of uncertainty in applying these judgments and depending on the duration and severity of the pandemic, changes to its estimates and judgments could result in a meaningful impact to its financial statements in future periods. Recently Adopted Accounting Pronouncements In June 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued Accounting Standard Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) In August 2018, the FASB issued Accounting Standard Update No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ,

Revenue

Revenue	3 Months Ended
	Oct. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue	Note 2—Revenue Disaggregation of Revenue The following table summarizes revenue by type of monetization mechanisms of the Zedge app for the periods presented: Three Months Ended October 31, 2020 2019 (in thousands) Advertising revenue $ 2,986 $ 1,667 Paid subscription revenue 650 207 Other revenues 126 159 Total Revenues $ 3,762 $ 2,033 Contract Balances Deferred revenues The Company records deferred revenues when users purchase or earn Zedge Credits. Unused Zedge Credits represent the value of the Company’s unsatisfied performance obligation to its users. Revenue is recognized when Zedge App users use Zedge Credits to acquire Zedge Premium content or upon expiration of the Zedge Credits upon 180 days of account inactivity. As of October 31, 2020, and July 31, 2020, the Company’s deferred revenue balance related to Zedge Premium was approximately $177,000 and $169,000, respectively. The Company also records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. As of October 31, 2020, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,382,000, representing approximately 609,000 active subscribers. As of July 31, 2020, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,169,000, representing approximately 504,000 active subscribers. The amount of revenue recognized in the three months ended October 31, 2020 that was included in the deferred balance at July 31, 2020 was $429,000. Total deferred revenues increased $221,000 from $1,338,000 at July 31, 2020 to $1,559,000 at October 31, 2020, primarily attributed to new paid subscriptions sold in the three months ended October 31, 2020. Significant Judgments The advertising networks and advertising exchanges to which we sell our inventory track and report the impressions and installs to Zedge and Zedge recognizes revenues based on these reports. The networks and exchanges base their payments off of those reports and Zedge independently compares the data to each of the client sites to validate the imported data and identify any differences. The number of impressions and installs delivered by the advertising networks and advertising exchanges is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. Practical Expedients The Company expenses the fees retained by Google Play related to subscription revenue when incurred as marketing expense because the duration of the contracts for which the Company pays commissions are less than one year. These costs are included in the selling, general and administrative expenses of the Consolidated Statements of Comprehensive Income (Loss).

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3—Fair Value Measurements The following tables present 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) October 31, 2020 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ 41 $ - $ 41 July 31, 2020 Assets: Foreign exchange forward contracts $ - $ 10 $ - $ 10 Liabilities: Foreign exchange forward contracts $ - $ $ - $ - (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market Fair Value of Other Financial Instruments The Company’s other financial instruments at October 31, 2020 and July 31, 2020 included trade accounts receivable, trade accounts payable, and loans payable. The carrying amounts of the trade accounts receivable, trade accounts payable, and loan payables approximated fair value due to their short-term nature.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Oct. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Note 4—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 (USD) to Norwegian Kroner (NOK) and USD to Euro (EUR) exchange rates. The Company is party to 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 9). The Company does not apply hedge accounting to these contracts, and therefore the changes in fair value are recorded in consolidated statements of comprehensive loss. 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 October 31, 2020, are as follows: Settlement Date U.S. Dollar Amount NOK Amount Nov-20 200,000 1,819,209 Dec-20 200,000 1,819,109 Jan-21 200,000 1,818,709 Feb-21 200,000 1,818,509 Total $ 800,000 7,275,536 Settlement Date U.S. Dollar Amount EUR Amount Nov-20 175,000 149,365 Dec-20 175,000 149,276 Jan-21 175,000 149,111 Feb-21 175,000 149,009 $ 700,000 596,761 The fair value of outstanding derivative instruments recorded in the accompanying consolidated balance sheets were as follows: October 31, July 31, 2020 2020 Assets and Liabilities Derivatives: Balance Sheet Location (in thousands) Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Other current assets $ - $ 10 Foreign exchange forward contracts Accrued expenses and other current liabilities $ 41 $ - The effects of derivative instruments on the consolidated statements of comprehensive income (loss) were as follows: Amount of Loss Recognized on Derivatives Three Months Ended October 31, Amount of Loss Recognized on Derivatives (in thousands) Derivatives not designated or not qualifying as hedging instruments Location of Loss Recognized on Derivatives 2020 2019 Foreign exchange forward contracts Net loss resulting from foreign exchange transactions $ (41 ) $ (74 )

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Oct. 31, 2020
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Note 5—Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: October 31, July 31, 2020 2020 (in thousands) Accrued vacation $ 414 $ 392 Accrued payroll taxes 223 274 Accrued payroll and bonuses 33 132 Operating lease liability 227 232 Derivative liability 41 - Accrued professional fees 29 - Due to artists 159 136 Other 72 44 Total accrued expenses and other current liabilities $ 1,198 $ 1,210

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Oct. 31, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 6—Stock-Based Compensation 2016 Stock Option and Incentive Plan On November 7, 2019, the Company’s Board of Directors amended the Company’s 2016 Stock Option and Incentive Plan (as amended to date, 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 230,000 shares, to an aggregate of 1,271,000 shares. This amendment was ratified by the Company’s stockholders at the Annual Meeting of Stockholders held on January 13, 2020. At October 31, 2020, there were 162,000 shares of Class B Stock available for awards under the 2016 Incentive Plan. On November 18, 2020, 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 250,000 shares to an aggregate of 1,521,000 shares. This amendment is subject to ratification by the Company’s stockholders during the Annual Meeting of Stockholders to be held on January 11, 2021. Pursuant to the 2016 Incentive Plan, the option exercise price for all stock option awards that are designated as “Incentive Stock Options” 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. Stock Options In the three months ended October 31, 2020, the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 90,849 shares of Class B Stock to twenty individuals including company executives, employees and consultants. Options with respect to 30,000 shares vested upon grant with the remaining options with respect to 60,849 shares vesting over a three-year period. Grant date fair value related to the 30,000 vested options was $32,000 which was expensed immediately. Unrecognized compensation expense related to the 60,849 options grants was an aggregate of $64,000 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. On October 19, 2020, the Compensation Committee extended the expiration date of options to purchase approximately 182,000 shares of the Company’s Class B Common Stock held by one of the Company’s executive officers, from October 31, 2021 to May 31, 2026. Such options are fully vested and were granted under the Company’s 2008 Stock Option and Incentive Plan. The options have an exercise price of $1.73 per share. Compensation expense related to this modification was $78,000 and was fully expensed on the modification date. At October 31, 2020, unrecognized compensation expense related to unvested stock options was an aggregate of $255,000. Deferred Stock Units On August 28, 2019, the Compensation Committee approved the grant of 90,000 Deferred Stock Units (DSUs) to 11 of its non-executive employees based in Norway and Lithuania. Each DSU represents a right to receive one share of Class B Common Stock upon vesting. The DSUs vest over a four-year period from August 1, 2019. On the grant date, unrecognized compensation expense related to this grant was an aggregate of $139,000 based on the estimated fair value of the DSUs on the grant date. The unrecognized compensation expense is being recognized on a straight-line basis over the vesting period. At October 31, 2020, unrecognized compensation expense related to unvested DSUs was an aggregate of $54,000. In the three months ended October 31, 2020, the Company purchased 5,625 shares of Class B Stock from various employees for $8,000 to satisfy tax withholding obligations in connection with the vesting of DSUs. Restricted Stock Awards On October 19, 2020, the Compensation Committee approved a grant of 10,619 restricted shares of Class B Common Stock to each of Mr. Elliot Gibber and Mr. Howard Jonas which vest immediately. These shares had an aggregate grant date fair value of $30,000 and have been fully amortized accordingly. At October 31, 2020, unrecognized compensation expense related to unvested restricted stock awards was an aggregate of $88,000. In the three months ended October 31, 2020 and 2019, the Company purchased 12,005 shares and 14,114 shares respectively of Class B Stock from former Freeform employees for $18,000 and $22,000 respectively, to satisfy tax withholding obligations in connection with the vesting of restricted stock.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Oct. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Share	Note 7—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, issuances to be made on the vesting of unvested DSUs and the 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: Three Months Ended 2020 2019 (in thousands) Basic weighted-average number of shares 12,191 10,196 Effect of dilutive securities: Stock options 292 - Non-vested restricted Class B common stock 11 - Deferred stock units 2 - Diluted weighted-average number of shares 12,496 10,196 The following shares were excluded from the dilutive earnings per share computations because their inclusion would have been anti-dilutive: Three Months Ended 2020 2019 (in thousands) Stock options 917 1,231 Non-vested restricted Class B common stock 34 154 Deferred stock units - 90 Shares excluded from the calculation of diluted earnings per share 951 1,475 For the three months ended October 31, 2019, the diluted earnings per share equals basic earnings per share because the Company incurred a net loss during that period and the impact of the assumed exercise of stock options and vesting of restricted stock would have been anti-dilutive.

Contingencies

Contingencies	3 Months Ended
	Oct. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 8—Contingencies Legal Proceedings In March 2014, Saregama India, Limited filed a lawsuit against the Company before the Barasat District Court, seeking approximately $1.6 million as damages and an injunction for copyright infringement. Saregama India alleged that the Company made available Saregama India’s sound recordings through the Company’s platform with full knowledge that the sound recordings had been uploaded and were being communicated to the public without obtaining any license from Saregama India. On August 20, 2019, the Court lifted the injunction and, subsequently, Saregama India executed a consent pursuant to which the case against the Company was dismissed. 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.

Revolving Credit Facility

Revolving Credit Facility	3 Months Ended
	Oct. 31, 2020
Debt Disclosure [Abstract]
Revolving Credit Facility	Note 9—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 for an initial two year term which was extended twice for another two years term expiring September 26, 2022. At the Company’s request in September 2020, advances under this facility have been reduced to the lesser of $2.0 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. Effective with the September 2020 extension, the outstanding principal amount bears interest per annum at the greater of 3.5% or the prime rate plus 1.25%. Previously the interest rate was capped at 5.0%. Interest is payable monthly and all outstanding principal and any accrued and unpaid interest is due on the maturity date of September 26, 2022. The Company is required to pay an annual facility fee of $10,000 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 October 31, 2020, there were no amounts outstanding under the revolving credit facility and the Company was in compliance with all of the covenants. 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 nine 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 October 31, 2020, there were $1.5 million of outstanding foreign exchange contracts with less than six months tenor under the credit facility, which reduced the available borrowing under the revolving credit facility by $150,000.

Business Segment and Geographic

Business Segment and Geographic Information	3 Months Ended
	Oct. 31, 2020
Segment Reporting [Abstract]
Business Segment and Geographic Information	Note 10—Business Segment and Geographic Information The Company is a leading app developer focusing on mobile phone personalization and entertainment. “Zedge Wallpapers and Ringtones,” the Company’s flagship app, is a hub for self-expression used by millions for mobile phone personalization, social content and fandom art. The app enables consumers to showcase who they are, what they like, and amplify their persona. Zedge Premium, the Company’s in-app marketplace, enables content creators, ranging the gamut from world class celebrities to emerging artists, to display their talent and sell their content to our users. “Shortz – Chat Stories by Zedge” offers serialized, short-form fiction stories delivered as text-messaging conversations and soon to be available as mini-podcasts. The Company’s apps run on its flexible and proven state-of-the-art digital publishing platform. The Company conducts business as a single operating segment. 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: October 31, 2020 $ 2,355 $ 470 $ 2,825 July 31, 2020 $ 2,513 $ 542 $ 3,055 Total assets: October 31, 2020 $ 9,444 $ 4,023 $ 13,467 July 31, 2020 $ 7,730 $ 4,275 $ 12,005

Operating Leases

Operating Leases	3 Months Ended
	Oct. 31, 2020
Operating Leases [Abstract]
Operating Leases	Note 11— Operating Leases The Company has operating leases primarily for office space. Operating lease right-of-use assets recorded and included in other assets were $250,000 and $317,000 at October 31, 2020 and July 31, 2020, respectively. Future lease payments under operating leases as of October 31, 2020 were as follows (in thousands): Operating Leases 2021 $ 176 2022 62 Total future minimum lease payments 238 Less imputed interest 8 Total $ 230 Reconciliation of lease liabilities as shown in the consolidated balance sheets Operating lease liabilities, short-term $ 227 Other liabilities 3 Total lease liabilities $ 230 There were no material changes in the Company’s operating and finance leases in the three months ended October 31, 2020, as compared to the disclosure in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020.

Provision for Income taxes

Provision for Income taxes	3 Months Ended
	Oct. 31, 2020
Income Tax Disclosure [Abstract]
Provision for Income taxes	Note 12—Provision for Income taxes At July 31, 2020, the Company had available U.S. federal and state net operating loss (“NOL”) carryforwards from domestic operations of approximately $5.6 million and $5.9 million, respectively, to offset future taxable income, the Company also had available NOL carryforwards of approximately $433,000 to offset future foreign taxable income. The Company expects to utilize these NOL carryforwards to offset the taxable income for the three months ended October 31, 2020 and for the fiscal year ending July 31, 2021, and reduced its effective tax rate to 0% for those periods. The tax expense consists of minimum state taxes based on allocated net worth and certain income taxes payable in foreign jurisdictions where the Company’s subsidiary resides. On March 27, 2020, the CARES Act was signed into law. The Act contains several new or changed income tax provisions, including but not limited to the following: increased limitation threshold for determining deductible interest expense, class life changes to qualified improvements (in general, from 39 years to 15 years), and the ability to carry back net operating losses incurred from tax years 2018 through 2020 up to the five preceding tax years. Most of these provisions are either not applicable or have no material effect on the Company.

Recently Issued Accounting Stan

Recently Issued Accounting Standards Not Yet Adopted	3 Months Ended
	Oct. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards Not Yet Adopted	Note 13—Recently Issued Accounting Standards Not Yet Adopted Recently Issued Accounting Standards Not Yet Adopted In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes With the exception of the accounting standards discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the three months ended October 31, 2020 that are of significance or potential significance to the Company.

Loans Payable

Loans Payable	3 Months Ended
	Oct. 31, 2020
Loans Payable [Abstract]
Loans Payable	Note 14—Loans Payable On August 1, 2020, the Company obtained a loan of $181,000 to pay for certain insurance coverage, repayable in nine equal installments of $20,490 starting from September 1, 2020 which represented a 3.89% annual percentage interest rate. On July 16, 2019, the Company obtained a loan of $140,000 to pay for certain insurance coverage, repayable in nine equal installments of $15,976 starting from September 1, 2019 which represented a 4.79% annual percentage interest rate. The Company obtained a loan under the Paycheck Protection Program (PPP) of the CARES Act in the amount of $218,000 from Western Alliance Bank, a loan servicer and the Company’s lender (see Note 9), on April 22, 2020. The Company used these proceeds in full for payroll purposes for U.S. employees during the covered period provided under the PPP and therefore expects that all or most of this loan will be forgiven. Any portion of the loan that is not forgiven will be due two years after inception of the loan. The loan has a 1% fixed interest rate and does not require collateral or personal guarantees. The Company submitted the PPP Loan Forgiveness Application Form 3508EZ on November 25, 2020.

Sales of Class B Common Stock

Sales of Class B Common Stock	3 Months Ended
	Oct. 31, 2020
Sale Of Common Stock [Abstract]
Sales of Class B Common Stock	Note 15—Sales of Class B Common Stock On February 5, 2020, the Company closed on its registered direct offering of 1,734,459 shares of its Class B common stock for gross proceeds of $2.25 million. The Company sold 1,657,813 shares at a purchase price of $1.28 per share which represented a 20% discount from the 10 Day Volume Weighted Average Price (VWAP) through January 31, 2020, and certain Company insiders purchased an additional 76,646 shares at a purchase price of $1.67 per share, the closing price on February 3, 2020. In connection with this offering, the Company incurred a total issuance costs of $141,000. The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes. The Company filed a Form S-3 on November 30, 2020 which became effective on December 4, 2020 to facilitate additional capital raising. On November 30, 2020, the Company engaged National Securities Corp. and H.C. Wainwright & Co, LLC (the “Sales Agents”) to act as the Company’s exclusive co-Sales Agents in connection with the Company’s “at-the-market” offering of shares of the Company’s Class B common stock up to $5 million. The Company filed a Prospectus Supplement on December 9, 2020 and contemporaneously entered into an At Market Issuance Sales Agreement with the Sales Agents (the “ATM Sales Agreement”), pursuant to which sales will be made only upon instructions by the Company to the Sales Agents, and the Company cannot provide any assurances that it will issue any shares pursuant to the ATM Sales Agreement.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Oct. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements of Zedge, Inc. and its subsidiary, Zedge Europe AS (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended October 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2021 or any other period. The balance sheet at July 31, 2020 has been derived from the Company’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2020, as filed with the U.S. Securities and Exchange Commission (the “SEC”). 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 2021 refers to the fiscal year ending July 31, 2021).
COVID-19 Impacts on Financial and Operational Results	COVID-19 Impacts on Financial and Operational Results The COVID-19 pandemic has caused widespread economic disruption impacting the Company in a number of ways, most notably, with a significant decrease in global advertising spend in the third quarter of fiscal 2020, followed by a rebound in the following two consecutive quarters. The Company expects the extent of the impact on its financial and operational results will continue to depend on the duration and severity of the economic disruption caused by the COVID-19 pandemic, including demand for new phones sales worldwide which drives the new installs of the Company’s flagship app. As of October 31, 2020, the Company had $6.3 million of cash and cash equivalents. The Company has developed certain contingency plans to preserve liquidity if such actions become necessary due to worsening economic conditions, including those related to the COVID-19 pandemic. At the current time, the Company does not believe taking such actions would be prudent nor, does it expect to need to take such actions based on its current forecasts. The Company believes that its existing cash and cash equivalents, together with cash generated by operations will be sufficient to meet its working capital and capital expenditure requirements for the foreseeable future when accounting for the ill effects of the COVID-19 pandemic. The Company considered the impacts of the COVID-19 pandemic on its significant estimates and judgments used in applying its accounting policies in the three months ended October 31, 2020. In light of the pandemic, there is a greater degree of uncertainty in applying these judgments and depending on the duration and severity of the pandemic, changes to its estimates and judgments could result in a meaningful impact to its financial statements in future periods.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In June 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued Accounting Standard Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) In August 2018, the FASB issued Accounting Standard Update No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ,

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Oct. 31, 2020
Disclosure Text Block [Abstract]
Schedule of revenue by type of service	Three Months Ended October 31, 2020 2019 (in thousands) Advertising revenue $ 2,986 $ 1,667 Paid subscription revenue 650 207 Other revenues 126 159 Total Revenues $ 3,762 $ 2,033

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 31, 2020
Fair Value Disclosures [Abstract]
Schedule 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) October 31, 2020 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ 41 $ - $ 41 July 31, 2020 Assets: Foreign exchange forward contracts $ - $ 10 $ - $ 10 Liabilities: Foreign exchange forward contracts $ - $ $ - $ -

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Oct. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of outstanding foreign exchange contracts	Settlement Date U.S. Dollar Amount NOK Amount Nov-20 200,000 1,819,209 Dec-20 200,000 1,819,109 Jan-21 200,000 1,818,709 Feb-21 200,000 1,818,509 Total $ 800,000 7,275,536 Settlement Date U.S. Dollar Amount EUR Amount Nov-20 175,000 149,365 Dec-20 175,000 149,276 Jan-21 175,000 149,111 Feb-21 175,000 149,009 $ 700,000 596,761
Schedule of fair value of derivative assets and liabilities	October 31, July 31, 2020 2020 Assets and Liabilities Derivatives: Balance Sheet Location (in thousands) Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Other current assets $ - $ 10 Foreign exchange forward contracts Accrued expenses and other current liabilities $ 41 $ -
Schedule of derivative instruments on consolidated statements of comprehensive loss	Amount of Loss Recognized on Derivatives Three Months Ended October 31, Amount of Loss Recognized on Derivatives (in thousands) Derivatives not designated or not qualifying as hedging instruments Location of Loss Recognized on Derivatives 2020 2019 Foreign exchange forward contracts Net loss resulting from foreign exchange transactions $ (41 ) $ (74 )

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Oct. 31, 2020
Payables and Accruals [Abstract]
Schedule of accrued expenses and other current liabilities	October 31, July 31, 2020 2020 (in thousands) Accrued vacation $ 414 $ 392 Accrued payroll taxes 223 274 Accrued payroll and bonuses 33 132 Operating lease liability 227 232 Derivative liability 41 - Accrued professional fees 29 - Due to artists 159 136 Other 72 44 Total accrued expenses and other current liabilities $ 1,198 $ 1,210

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Oct. 31, 2020
Earnings Per Share [Abstract]
Schedule of weighted-average number of shares calculation of basic and diluted earnings per share	Three Months Ended 2020 2019 (in thousands) Basic weighted-average number of shares 12,191 10,196 Effect of dilutive securities: Stock options 292 - Non-vested restricted Class B common stock 11 - Deferred stock units 2 - Diluted weighted-average number of shares 12,496 10,196
Schedule of shares excluded from the dilutive earnings per share computations	Three Months Ended 2020 2019 (in thousands) Stock options 917 1,231 Non-vested restricted Class B common stock 34 154 Deferred stock units - 90 Shares excluded from the calculation of diluted earnings per share 951 1,475

Business Segment and Geograph_2

Business Segment and Geographic Information (Tables)	3 Months Ended
	Oct. 31, 2020
Segment Reporting [Abstract]
Schedule of net long-lived assets and total assets held outside of the United States	United States Foreign Total (in thousands) Long-lived assets, net: October 31, 2020 $ 2,355 $ 470 $ 2,825 July 31, 2020 $ 2,513 $ 542 $ 3,055 Total assets: October 31, 2020 $ 9,444 $ 4,023 $ 13,467 July 31, 2020 $ 7,730 $ 4,275 $ 12,005

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Oct. 31, 2020
Operating Leases [Abstract]
Schedule of future lease payments	Operating Leases 2021 $ 176 2022 62 Total future minimum lease payments 238 Less imputed interest 8 Total $ 230 Reconciliation of lease liabilities as shown in the consolidated balance sheets Operating lease liabilities, short-term $ 227 Other liabilities 3 Total lease liabilities $ 230

Basis of Presentation and Rec_2

Basis of Presentation and Recently Adopted Accounting Pronouncements (Details) $ in Millions	Oct. 31, 2020USD ($)
Accounting Policies [Abstract]
Cash and cash equivalents	$ 6.3

Revenue (Details)

Revenue (Details) - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2020	Jul. 31, 2020
Revenue (Details) [Line Items]
Credits, description	The Company records deferred revenues when users purchase or earn Zedge Credits. Unused Zedge Credits represent the value of the Company’s unsatisfied performance obligation to its users. Revenue is recognized when Zedge App users use Zedge Credits to acquire Zedge Premium content or upon expiration of the Zedge Credits upon 180 days of account inactivity.
Unsatisfied performance obligations, description	The Company also records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. As of October 31, 2020, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,382,000, representing approximately 609,000 active subscribers. As of July 31, 2020, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,169,000, representing approximately 504,000 active subscribers.
Zedge Premium [Member]
Revenue (Details) [Line Items]
Deferred revenue	$ 177,000	$ 169,000
Total deferred revenues	1,559,000	429,000
Deferred revenues increased	$ 1,338,000	$ 221,000

Revenue (Details) - Schedule of

Revenue (Details) - Schedule of revenue by type of service - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	$ 3,762	$ 2,033
Advertising revenue [Member]
Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	2,986	1,667
Paid subscription revenue [Member]
Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	650	207
Other revenues [Member]
Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	$ 126	$ 159

Fair Value Measurements (Detai

Fair Value Measurements (Details) - Schedule of balance of assets and liabilities measured at fair value on a recurring basis - USD ($) $ in Thousands		Oct. 31, 2020	Jul. 31, 2020
Assets:
Foreign exchange forward contracts			$ 10
Liabilities:
Foreign exchange forward contracts		$ 41
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]
Assets:
Foreign exchange forward contracts	[1]
Liabilities:
Foreign exchange forward contracts	[1]
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]
Assets:
Foreign exchange forward contracts	[2]		10
Liabilities:
Foreign exchange forward contracts	[2]	41
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]
Assets:
Foreign exchange forward contracts	[3]
Liabilities:
Foreign exchange forward contracts	[3]
[1]	quoted prices in active markets for identical assets or liabilities
[2]	observable inputs other than quoted prices in active markets for identical assets and liabilities
[3]	no observable pricing inputs in the market

Derivative Instruments (Details

Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts	3 Months Ended
	Oct. 31, 2020USD ($)
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	$ 700,000
Nov-20 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	175,000
Dec-20 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	175,000
Jan-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	175,000
Feb-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	175,000
EUR [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	596,761
EUR [Member] | Nov-20 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	149,365
EUR [Member] | Dec-20 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	149,276
EUR [Member] | Jan-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	149,111
EUR [Member] | Feb-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	149,009
Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	800,000
Western Alliance Bank [Member] | Nov-20 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
Western Alliance Bank [Member] | Dec-20 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
Western Alliance Bank [Member] | Jan-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
Western Alliance Bank [Member] | Feb-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
Western Alliance Bank [Member] | NOK [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	7,275,536
Western Alliance Bank [Member] | NOK [Member] | Nov-20 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	1,819,209
Western Alliance Bank [Member] | NOK [Member] | Dec-20 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	1,819,109
Western Alliance Bank [Member] | NOK [Member] | Jan-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	1,818,709
Western Alliance Bank [Member] | NOK [Member] | Feb-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	$ 1,818,509

Derivative Instruments (Detai_2

Derivative Instruments (Details) - Schedule of fair value of derivative assets and liabilities - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Jul. 31, 2020
Schedule of fair value of derivative assets and liabilities [Abstract]
Balance Sheet Location	Other current assets
Foreign exchange forward contracts, Assets		$ 10
Balance Sheet Location	Accrued expenses and other current liabilities
Foreign exchange forward contracts, Liabilities	$ 41

Derivative Instruments (Detai_3

Derivative Instruments (Details) - Schedule of derivative instruments on consolidated statements of comprehensive loss - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Schedule of derivative instruments on consolidated statements of comprehensive loss [Abstract]
Statement of Comprehensive Loss Location	Net loss resulting from foreign exchange transactions
Foreign exchange forward contracts	$ (41)	$ (74)

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Schedule of accrued expenses and other current liabilities [Abstract]
Accrued vacation	$ 414	$ 392
Accrued payroll taxes	223	274
Accrued payroll and bonuses	33	132
Operating lease liability	227	232
Derivative liability	41
Accrued professional fees	29
Due to artists	159	136
Other	72	44
Total accrued expenses and other current liabilities	$ 1,198	$ 1,210

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	Nov. 18, 2020	Oct. 19, 2020	Aug. 07, 2020	Nov. 07, 2019	Aug. 28, 2019	Oct. 31, 2020	Oct. 31, 2019
Stock-Based Compensation (Details) [Line Items]
Unrecognized compensation expense (in Dollars)						$ 88,000
Number of Employees, Total [Member]
Stock-Based Compensation (Details) [Line Items]
Amount of share purchase (in Dollars)						18,000	$ 22,000
Deferred Stock Units [Member]
Stock-Based Compensation (Details) [Line Items]
Unrecognized compensation expense (in Dollars)					$ 139,000	54,000
Number of non-executive employees, description					On August 28, 2019, the Compensation Committee approved the grant of 90,000 Deferred Stock Units (DSUs) to 11 of its non-executive employees based in Norway and Lithuania.
Restricted Stock [Member]
Stock-Based Compensation (Details) [Line Items]
Options granted		10,619
Restricted stock, description			On October 19, 2020, the Compensation Committee approved a grant of 10,619 restricted shares of Class B Common Stock to each of Mr. Elliot Gibber and Mr. Howard Jonas which vest immediately.
Aggregate grant date fair value (in Dollars)		$ 30,000
Employee Stock [Member]
Stock-Based Compensation (Details) [Line Items]
Unrecognized compensation expense (in Dollars)						$ 255,000
Common Class B [Member]
Stock-Based Compensation (Details) [Line Items]
Shares purchased						12,005	14,114
Common Class B [Member] | 2016 Incentive Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Inclusive of the additional				230,000
Aggregate of shares				1,271,000
Common Class B [Member] | 2016 Incentive Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Options granted						162,000
Common Class B [Member] | Subsequent Event [Member] | 2016 Incentive Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Inclusive of the additional	250,000
Aggregate of shares	1,521,000
Common Class B [Member] | Employee Stock [Member]
Stock-Based Compensation (Details) [Line Items]
Stock, description						the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 90,849 shares of Class B Stock to twenty individuals including company executives, employees and consultants. Options with respect to 30,000 shares vested upon grant with the remaining options with respect to 60,849 shares vesting over a three-year period. Grant date fair value related to the 30,000 vested options was $32,000 which was expensed immediately. Unrecognized compensation expense related to the 60,849 options grants was an aggregate of $64,000 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.
Common Class B [Member] | Board of Directors [Member]
Stock-Based Compensation (Details) [Line Items]
Shares of the Company's Class B common stock		182,000
Stock exercise price per share (in Dollars per share)		$ 1.73
Unrecognized compensation expense (in Dollars)		$ 78,000
Deferred Stock Units [Member]
Stock-Based Compensation (Details) [Line Items]
Options granted					90,000	5,625
Tax withholding obligations (in Dollars)						$ 8,000

Earnings Per Share (Details) -

Earnings Per Share (Details) - Schedule of weighted-average number of shares calculation of basic and diluted earnings per share - shares shares in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Schedule of weighted-average number of shares calculation of basic and diluted earnings per share [Abstract]
Basic weighted-average number of shares	12,191	10,196
Effect of dilutive securities:
Stock options	292
Non-vested restricted Class B common stock	11
Deferred stock units	2
Diluted weighted-average number of shares	12,496	10,196

Earnings Per Share (Details) _2

Earnings Per Share (Details) - Schedule of shares excluded from the dilutive earnings per share computations - shares shares in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	951	1,475
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	917	1,231
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	34	154
Deferred stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share		90

Contingencies (Details)

Contingencies (Details) $ in Millions	Mar. 31, 2014USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency, Damages Sought, Value	$ 1.6

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - USD ($)	Nov. 16, 2016	Sep. 27, 2016	Oct. 31, 2020	Nov. 16, 2020
Revolving Credit Facility (Details) [Line Items]
Loan and security agreement with Western Alliance Bank for revolving credit facility		$ 2,500,000
Line of credit maturity date		Sep. 26, 2022
Line of credit facility annual fee		$ 10,000
Foreign exchange, description			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 nine 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 amount			$ 1,500,000
Available borrowing reduction			$ 150,000
Subsequent Event [Member]
Revolving Credit Facility (Details) [Line Items]
Loan and security agreement with Western Alliance Bank for revolving credit facility				$ 5,000,000
Revolving Credit Facility [Member]
Revolving Credit Facility (Details) [Line Items]
Line of credit facility, borrowing capacity, description			advances under this facility have been reduced to the lesser of $2.0 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%. Previously the interest rate was capped at 5.0%. Interest is payable monthly and all outstanding principal and any accrued and unpaid interest is due on the maturity date of September 26, 2022.
Foreign Exchange Contract [Member]
Revolving Credit Facility (Details) [Line Items]
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.

Business Segment and Geograph_3

Business Segment and Geographic Information (Details) - Schedule of net long-lived assets and total assets held outside of the United States - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Long-lived assets, net:
Long-lived assets, net	$ 2,825	$ 3,055
Total assets:
Total assets	13,467	12,005
United States [Member]
Long-lived assets, net:
Long-lived assets, net	2,355	2,513
Total assets:
Total assets	9,444	7,730
Foreign [Member]
Long-lived assets, net:
Long-lived assets, net	470	542
Total assets:
Total assets	$ 4,023	$ 4,275

Operating Leases (Details)

Operating Leases (Details) - USD ($)	Oct. 31, 2020	Oct. 31, 2019
Operating Leases [Abstract]
Operating lease right-of-use assets	$ 250,000	$ 317,000

Operating Leases (Details) - Sc

Operating Leases (Details) - Schedule of future lease payments $ in Thousands	Oct. 31, 2020USD ($)
Schedule of future lease payments [Abstract]
2021	$ 176
2022	62
Total future minimum lease payments	238
Less imputed interest	8
Total	230
Reconciliation of lease liabilities as shown in the consolidated balance sheets
Operating lease liabilities, short-term	227
Other liabilities	3
Total lease liabilities	$ 230

Provision for Income taxes (Det

Provision for Income taxes (Details) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 27, 2020	Oct. 31, 2020	Jul. 31, 2020
Provision for Income taxes (Details) [Line Items]
Net operating loss carryforwards			$ 433,000
Effective tax rate		0.00%
Income tax provisions, description	The Act contains several new or changed income tax provisions, including but not limited to the following: increased limitation threshold for determining deductible interest expense, class life changes to qualified improvements (in general, from 39 years to 15 years), and the ability to carry back net operating losses incurred from tax years 2018 through 2020 up to the five preceding tax years.
Federal Operating Loss Carryforward [Member]
Provision for Income taxes (Details) [Line Items]
Net operating loss carryforwards, domestic			5,600,000
State Operating Loss Carryforward [Member]
Provision for Income taxes (Details) [Line Items]
Net operating loss carryforwards, domestic			$ 5,900,000

Loans Payable (Details)

Loans Payable (Details) - USD ($)	Aug. 02, 2020	Jul. 16, 2019	Oct. 31, 2020	Apr. 22, 2020
Loans Payable [Abstract]
Insurance coverage	$ 181,000	$ 140,000
Installment fee	$ 20,490	$ 15,976
Annual percentage interest rate	3.89%	4.79%
Loan received				$ 218,000
Fixed interest rate			1.00%

Sales of Class B Common Stock (

Sales of Class B Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 30, 2020	Feb. 05, 2020	Oct. 31, 2020	Jan. 31, 2020
Sales of Class B Common Stock (Details) [Line Items]
Direct offering shares		1,734,459
Shares issued				1,657,813
Shares issued price per share				$ 1.28
Weighted average discount rate				20.00%
Sale of common stock, description			certain Company insiders purchased an additional 76,646 shares at a purchase price of $1.67 per share, the closing price on February 3, 2020. In connection with this offering, the Company incurred a total issuance costs of $141,000.
Sale of stock	$ 5,000
Class B common stock [Member]
Sales of Class B Common Stock (Details) [Line Items]
Gross proceeds		$ 2,250