Zedge (ZDGE) 10-Q 16 Mar 21 2021 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jan. 31, 2021	Mar. 10, 2021
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	Jan. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Entity File Number	1-37782
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		12,994,533

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Current assets:
Cash and cash equivalents	$ 13,608	$ 5,111
Trade accounts receivable, net of allowance for doubtful accounts of $0 at January 31, 2021 and July 31, 2020	2,908	1,407
Prepaid expenses	195	123
Other current assets	66	113
Total current assets	16,777	6,754
Property and equipment, net	2,308	2,584
Goodwill	2,329	2,196
Other assets	371	471
Total assets	21,785	12,005
Current liabilities:
Trade accounts payable	275	290
Insurance premium loan payable	81
Accrued expenses and other current liabilities	1,541	1,210
Deferred revenues	1,712	1,338
Total current liabilities	3,609	2,838
Loans Payable	218	218
Other liabilities		64
Total liabilities	3,827	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 January 31, 2021 and July 31, 2020	5	5
Class B common stock, $.01 par value; authorized shares—40,000; 12,916 shares issued and 12,858 shares outstanding at January 31, 2021, and 11,788 shares issued and 11,749 shares outstanding at July 31, 2020	129	118
Additional paid-in capital	31,284	25,725
Accumulated other comprehensive loss	(879)	(1,085)
Accumulated deficit	(12,479)	(15,802)
Treasury stock, 58 shares at January 31, 2021 and 40 shares at July 31, 2020, at cost	(102)	(76)
Total stockholders’ equity	17,958	8,885
Total liabilities and stockholders’ equity	$ 21,785	$ 12,005

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jan. 31, 2021	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	12,916	11,788
Common stock, shares outstanding	12,858	11,749

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Income Statement [Abstract]
Revenues	$ 5,314	$ 2,644	$ 9,076	$ 4,677
Costs and expenses:
Direct cost of revenues (exclusive of amortization of capitalized software and technology development costs included below)	313	308	617	636
Selling, general and administrative	2,159	1,894	4,165	3,839
Depreciation and amortization	324	363	683	868
Income (loss) from operations	2,518	79	3,611	(666)
Interest and other income, net	5	5	5	5
Net gain (loss) resulting from foreign exchange transactions	74	17	34	(39)
Income (loss) before income taxes	2,597	101	3,650	(700)
Provision for income taxes	319	1	327	1
Net Income (loss)	2,278	100	3,323	(701)
Other comprehensive income (loss):
Changes in foreign currency translation adjustment	365	(8)	206	(151)
Total other comprehensive income (loss)	365	(8)	206	(151)
Total comprehensive income (loss)	$ 2,643	$ 92	$ 3,529	$ (852)
Income (loss) per share attributable to Zedge, Inc. common stockholders:
Basic (in Dollars per share)	$ 0.18	$ 0.01	$ 0.27	$ (0.07)
Diluted (in Dollars per share)	$ 0.17	$ 0.01	$ 0.26	$ (0.07)
Weighted-average number of shares used in calculation of income (loss) per share:
Basic (in Shares)	12,633	10,229	12,412	10,212
Diluted (in Shares)	13,431	10,615	12,949	10,212

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, 2019	$ 5	$ 99	23,131	(985)	(15,243)	(47)	6,960
Balance (in Shares) at Jul. 31, 2019	525	9,876
Balance at Jan. 31, 2020	$ 5	$ 100	23,705	(1,136)	(15,944)	(76)	6,654
Balance (in Shares) at Jan. 31, 2020	525	9,980
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
Exercise of stock options			4				4
Exercise of stock options (in Shares)		30
Stock issued for matching contributions to the 401(k) Plan			41				41
Stock issued for matching contributions to the 401(k) Plan (in Shares)		26
Proceeds from sales of Class B Common Stock			275				275
Stock-based compensation		$ 1	156				157
Stock-based compensation (in Shares)		48
Purchase of treasury stock						(7)	(7)
Foreign currency translation adjustment				(8)			(8)
Net Income (loss)					100		100
Balance at Jan. 31, 2020	$ 5	$ 100	23,705	(1,136)	(15,944)	(76)	6,654
Balance (in Shares) at Jan. 31, 2020	525	9,980
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
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
Balance at Jan. 31, 2021	$ 5	$ 129	31,284	(879)	(12,479)	(102)	17,958
Balance (in Shares) at Jan. 31, 2021	525	12,916
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
Exercise of stock options		$ 3	393				396
Exercise of stock options (in Shares)		312
Stock issued for matching contributions to the 401(k) Plan			39				39
Stock issued for matching contributions to the 401(k) Plan (in Shares)		7
Proceeds from sales of Class B Common Stock		$ 8	4,777				4,785
Proceeds from sales of Class B Common Stock (in Shares)		762
Stock-based compensation			113				113
Stock-based compensation (in Shares)		8
Foreign currency translation adjustment				365			365
Net Income (loss)					2,278		2,278
Balance at Jan. 31, 2021	$ 5	$ 129	$ 31,284	$ (879)	$ (12,479)	$ (102)	$ 17,958
Balance (in Shares) at Jan. 31, 2021	525	12,916

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Operating activities
Net income (loss)	$ 3,323	$ (701)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	683	868
Stock-based compensation	389	296
Change in assets and liabilities:
Trade accounts receivable	(1,500)	102
Prepaid expenses and other current assets	156	243
Other assets	36	(13)
Trade accounts payable and accrued expenses	299	(208)
Deferred revenue	375	338
Net cash provided by operating activities	3,761	925
Investing activities
Capitalized software and technology development costs and purchase of equipment	(401)	(417)
Net cash used in investing activities	(401)	(417)
Financing activities
Proceeds from sales of Class B Common Stock	5,000	275
Payment of issuance costs	(215)
Repayment of insurance premium loan payable	(100)	(78)
Proceeds from exercise of stock options	396	4
Purchase of treasury stock in connection with restricted stock vesting	(26)	(29)
Net cash provided by financing activities	5,055	172
Effect of exchange rate changes on cash and cash equivalents	82	(37)
Net increase in cash and cash equivalents	8,497	643
Cash and cash equivalents at beginning of period	5,111	1,609
Cash and cash equivalents at end of period	13,608	2,252
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for income taxes	1	1
Cash payments made for interest expenses	2	$ 2
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	6 Months Ended
	Jan. 31, 2021
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 and six months ended January 31, 2021 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 three 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 - a driver of new installs of the Company’s flagship app. As of January 31, 2021, the Company had $13.6 million of cash and cash equivalents, including a net of $4.8 million raised from the previously announced “at-the-market” offering of shares of the Company’s Class B common stock (see Note 15). 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 six months ended January 31, 2021. 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	6 Months Ended
	Jan. 31, 2021
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 Six Months Ended January 31, January 31, 2021 2020 2021 2020 (in thousands) (in thousands) Advertising revenue $ 4,399 $ 2,260 $ 7,385 $ 3,927 Paid subscription revenue 809 323 1,459 530 Other revenues 106 61 232 220 Total Revenues $ 5,314 $ 2,644 $ 9,076 $ 4,677 Contract Balances Deferred revenues The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. As of January 31, 2021, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,515,000, representing approximately 711,000 active subscribers including those under the account hold implemented by Google Play on November 1, 2020. Account hold is a subscription state that begins when a user's form of payment fails and the three-day grace period has ended without payment resolution. The account hold period lasts for up to 30 days. 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 six months ended January 31, 2021 that was included in the deferred balance at July 31, 2020 was $816,000. The Company also 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 January 31, 2021, and July 31, 2020, the Company’s deferred revenue balance related to Zedge Premium was approximately $197,000 and $169,000, respectively. Total deferred revenues increased $374,000 from $1,338,000 at July 31, 2020 to $1,712,000 at January 31, 2021, primarily attributed to new paid subscriptions sold in the six months ended January 31, 2021. 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	6 Months Ended
	Jan. 31, 2021
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) January 31, 2021 Assets: Foreign exchange forward contracts $ - $ 8 $ - $ 8 Liabilities: Foreign exchange forward contracts $ - $ - $ - $ - 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 January 31, 2021 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	6 Months Ended
	Jan. 31, 2021
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 income (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 January 31, 2021, are as follows: Settlement Date U.S. Dollar Amount NOK Amount Feb-21 200,000 1,818,509 Mar-21 200,000 1,693,583 Apr-21 200,000 1,693,903 May-21 200,000 1,694,083 Total $ 800,000 6,900,078 Settlement Date U.S. Dollar Amount EUR Amount Feb-21 175,000 149,009 Mar-21 200,000 163,480 Apr-21 200,000 163,360 May-21 200,000 163,253 $ 775,000 639,102 The fair value of outstanding derivative instruments recorded in the accompanying consolidated balance sheets were as follows: January 31, July 31, 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 $ 8 $ 10 The effects of derivative instruments on the consolidated statements of comprehensive income (loss) were as follows: Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Six Months Ended Amount of Gain (Loss) Recognized on Derivatives (in thousands) (in thousands) Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized on Derivatives 2021 2020 2021 2020 Foreign exchange forward contracts Net gain (loss) resulting from foreign exchange transactions $ 92 $ 20 51 $ (54 )

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jan. 31, 2021
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: January 31, July 31, (in thousands) Accrued vacation $ 482 $ 392 Accrued income taxes 325 - Accrued payroll taxes 304 274 Operating lease liability 193 232 Due to artists 185 136 Accrued payroll and bonuses 32 132 Other 20 44 Total accrued expenses and other current liabilities $ 1,541 $ 1,210

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jan. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 6—Stock-Based Compensation 2016 Stock Option and Incentive Plan On November 18, 2020, 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 250,000 shares to an aggregate of 1,521,000 shares. This amendment was ratified by the Company’s stockholders at the Annual Meeting of Stockholders held on January 11, 2021. At January 31, 2021, there were 358,000 shares of Class B Stock available for awards under the 2016 Incentive Plan. On November 7, 2019, 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 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. 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 During 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 various 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 60,649 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. In October 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. In December 2020 and January 2021, the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 37,000 shares of Class B Stock to four individuals including company executives and employees, vesting over a three-year period with respect to 15,000 options grants with the remaining 22,000 options grants vesting over a four-year period. Unrecognized compensation expense related to the 37,000 options grants was an aggregate of $141,000 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 November 7, 2019 and January 13, 2020, the Compensation Committee approved equity grants of options to purchase an aggregate of 180,996 shares of Class B Stock to four employees and one consultant. The options vest over a three-year period. Unrecognized compensation expense related to these grants was an aggregate of $242,000 based on the estimated fair value of the options on the grant dates. The unrecognized compensation expense is being recognized on a straight-line basis over the vesting period. In the six months ended January 31, 2021 and 2020, the Company issued 312,287 shares and 29,917 shares respectively of Class B Stock and received $396,000 and $4,000 respectively, in connection with options exercised during the period. At January 31, 2021, unrecognized compensation expense related to unvested stock options was an aggregate of $364,000. Deferred Stock Units In August 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 January 31, 2021, unrecognized compensation expense related to unvested DSUs was an aggregate of $49,000. In the six months ended January 31, 2021, 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 In November 2020, the Compensation Committee and the Corporate Governance Committee of our Board of Directors approved a grant of 92,593 restricted shares of the Company’s Class B Common Stock to our Executive Chairman Michael Jonas. Mr. Jonas agreed to accept all of his compensation for his service as Executive Chairman during fiscal 2021 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 2021 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, 2022, 2023 and 2024.These shares had an aggregate grant date fair value of $350,000 which is being amortized on a straight-line basis over the vesting period. In October 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. On November 7, 2019, the Compensation Committee approved a grant of 30,534 restricted shares of Class B Common Stock to Mr. Elliot Gibber, our Interim Chief Executive Officer in respect of his service in that capacity through the end of Fiscal 2020 (or such shorter period as he shall serve in that capacity). The grant vested on February 7, 2020 and May 7, 2020. These shares had an aggregate grant date fair value of $60,000 which was amortized on a straight-line basis over the vesting period. At January 31, 2020, unrecognized compensation expense related to unvested restricted stock was an aggregate of $30,000. At January 31, 2021, unrecognized compensation expense related to unvested restricted stock awards was an aggregate of $376,000. In the six months ended January 31, 2021 and 2020, the Company purchased 12,005 shares and 18,441 shares respectively of Class B Stock from certain employees for $18,000 and $29,000 respectively, to satisfy tax withholding obligations in connection with the vesting of restricted stock.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jan. 31, 2021
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 Six Months Ended 2021 2020 2021 2020 (in thousands) Basic weighted-average number of shares 12,633 10,229 12,412 10,212 Effect of dilutive securities: Stock options 698 371 472 - Non-vested restricted Class B common stock 73 3 44 - Deferred stock units 27 12 21 - Diluted weighted-average number of shares 13,431 10,615 12,949 10,212 The following shares were excluded from the dilutive earnings per share computations because their inclusion would have been anti-dilutive Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Stock options 14 937 215 1,330 Non-vested restricted Class B common stock - 141 - 172 Deferred stock units - - - 93 Shares excluded from the calculation of diluted earnings per share 14 1,078 215 1,595 For the six months ended January 31, 2020, 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 and DSUs would have been anti-dilutive.

Contingencies

Contingencies	6 Months Ended
	Jan. 31, 2021
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	6 Months Ended
	Jan. 31, 2021
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 two-year 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 January 31, 2021 and July 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 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 January 31, 2021, there were $1.58 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 $157,500.

Business Segment and Geographic

Business Segment and Geographic Information	6 Months Ended
	Jan. 31, 2021
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 the Company’s flagship app 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 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: January 31, 2021 $ 2,231 $ 448 $ 2,679 July 31, 2020 $ 2,513 $ 542 $ 3,055 Total assets: January 31, 2021 $ 17,229 $ 4,556 $ 21,785 July 31, 2020 $ 7,730 $ 4,275 $ 12,005

Operating Leases

Operating Leases	6 Months Ended
	Jan. 31, 2021
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 $220,000 and $317,000 at January 31, 2021 and July 31, 2020, respectively. There were no material changes in the Company's operating and finance leases in the six months ended January 31, 2021, 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	6 Months Ended
	Jan. 31, 2021
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 six months ended January 31, 2021 and for the fiscal year ending July 31, 2021, and reduced its effective tax rate to 7.9% for those periods. The tax expense consists of federal and state taxes based on taxable income and allocated net worth and certain income taxes payable in foreign jurisdictions where our subsidiaries reside. 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	6 Months Ended
	Jan. 31, 2021
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 six months ended January 31, 2021 that are of significance or potential significance to the Company.

Loans Payable

Loans Payable	6 Months Ended
	Jan. 31, 2021
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	6 Months Ended
	Jan. 31, 2021
Sale Of Common Stock [Abstract]
Sales of Class B Common Stock	Note 15—Sales of Class B Common Stock The Company filed with the SEC a Registration Statement on Form S-3 (the “Form S-3”) on November 30, 2020 which became effective on December 4, 2020 to facilitate capital raising. The Registration Statement registered the issuance and sale by the Company of Class B common stock or related securities for gross proceeds to the Company of up to $20 million. 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 (supplementing the Prospectus included in the Form S-3) on December 9, 2020 and contemporaneously entered into an At The Market Offering Agreement with the Sales Agents (the “ATM Sales Agreement”), pursuant to which the Company sold 761,906 shares at an average price of $6.5625 per share for total proceeds of $5 million as of January 28, 2021. In connection with this offering, the Company incurred a total issuance costs of $215,000. The Company intends to use the net proceeds from this offering for working capital and other general corporate purposes. 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 this offering for working capital and other general corporate purposes.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jan. 31, 2021
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 and six months ended January 31, 2021 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 three 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 - a driver of new installs of the Company’s flagship app. As of January 31, 2021, the Company had $13.6 million of cash and cash equivalents, including a net of $4.8 million raised from the previously announced “at-the-market” offering of shares of the Company’s Class B common stock (see Note 15). 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 six months ended January 31, 2021. 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)	6 Months Ended
	Jan. 31, 2021
Revenue [Abstract]
Schedule of revenue by type of service	Three Months Ended Six Months Ended January 31, January 31, 2021 2020 2021 2020 (in thousands) (in thousands) Advertising revenue $ 4,399 $ 2,260 $ 7,385 $ 3,927 Paid subscription revenue 809 323 1,459 530 Other revenues 106 61 232 220 Total Revenues $ 5,314 $ 2,644 $ 9,076 $ 4,677

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jan. 31, 2021
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) January 31, 2021 Assets: Foreign exchange forward contracts $ - $ 8 $ - $ 8 Liabilities: Foreign exchange forward contracts $ - $ - $ - $ - July 31, 2020 Assets: Foreign exchange forward contracts $ - $ 10 $ - $ 10 Liabilities: Foreign exchange forward contracts $ - $ - $ - $ -

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jan. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of outstanding foreign exchange contracts	Settlement Date U.S. Dollar Amount NOK Amount Feb-21 200,000 1,818,509 Mar-21 200,000 1,693,583 Apr-21 200,000 1,693,903 May-21 200,000 1,694,083 Total $ 800,000 6,900,078 Settlement Date U.S. Dollar Amount EUR Amount Feb-21 175,000 149,009 Mar-21 200,000 163,480 Apr-21 200,000 163,360 May-21 200,000 163,253 $ 775,000 639,102
Schedule of fair value of derivative assets and liabilities	January 31, July 31, 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 $ 8 $ 10
Schedule of derivative instruments on consolidated statements of comprehensive loss	Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Six Months Ended Amount of Gain (Loss) Recognized on Derivatives (in thousands) (in thousands) Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized on Derivatives 2021 2020 2021 2020 Foreign exchange forward contracts Net gain (loss) resulting from foreign exchange transactions $ 92 $ 20 51 $ (54 )

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jan. 31, 2021
Payables and Accruals [Abstract]
Schedule of accrued expenses and other current liabilities	January 31, July 31, (in thousands) Accrued vacation $ 482 $ 392 Accrued income taxes 325 - Accrued payroll taxes 304 274 Operating lease liability 193 232 Due to artists 185 136 Accrued payroll and bonuses 32 132 Other 20 44 Total accrued expenses and other current liabilities $ 1,541 $ 1,210

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jan. 31, 2021
Earnings Per Share [Abstract]
Schedule of weighted-average number of shares calculation of basic and diluted earnings per share	Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Basic weighted-average number of shares 12,633 10,229 12,412 10,212 Effect of dilutive securities: Stock options 698 371 472 - Non-vested restricted Class B common stock 73 3 44 - Deferred stock units 27 12 21 - Diluted weighted-average number of shares 13,431 10,615 12,949 10,212
Schedule of shares excluded from the dilutive earnings per share computations	Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Stock options 14 937 215 1,330 Non-vested restricted Class B common stock - 141 - 172 Deferred stock units - - - 93 Shares excluded from the calculation of diluted earnings per share 14 1,078 215 1,595

Business Segment and Geograph_2

Business Segment and Geographic Information (Tables)	6 Months Ended
	Jan. 31, 2021
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: January 31, 2021 $ 2,231 $ 448 $ 2,679 July 31, 2020 $ 2,513 $ 542 $ 3,055 Total assets: January 31, 2021 $ 17,229 $ 4,556 $ 21,785 July 31, 2020 $ 7,730 $ 4,275 $ 12,005

Basis of Presentation and Rec_2

Basis of Presentation and Recently Adopted Accounting Pronouncements (Details) $ in Millions	6 Months Ended
	Jan. 31, 2021USD ($)
Accounting Policies [Abstract]
Cash and cash equivalents	$ 13.6
Net cash	$ 4.8

Revenue (Details)

Revenue (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jan. 31, 2021	Jul. 31, 2020
Revenue (Details) [Line Items]
Unsatisfied performance obligations, description	The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. As of January 31, 2021, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,515,000, representing approximately 711,000 active subscribers including those under the account hold implemented by Google Play on November 1, 2020. Account hold is a subscription state that begins when a user's form of payment fails and the three-day grace period has ended without payment resolution. The account hold period lasts for up to 30 days. 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.
Deferred balance	$ 816,000
Credits, description	The Company also 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.
Zedge Premium [Member]
Revenue (Details) [Line Items]
Deferred balance	$ 1,712,000
Deferred balance	197,000	$ 169,000
Deferred revenues increased	$ 374,000	$ 1,338,000

Revenue (Details) - Schedule of

Revenue (Details) - Schedule of revenue by type of service - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	$ 5,314	$ 2,644	$ 9,076	$ 4,677
Advertising revenue [Member]
Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	4,399	2,260	7,385	3,927
Paid subscription revenue [Member]
Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	809	323	1,459	530
Other revenues [Member]
Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	$ 106	$ 61	$ 232	$ 220

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		Jan. 31, 2021		Jul. 31, 2020
Assets:
Foreign exchange forward contracts		$ 8		$ 10
Liabilities:
Foreign exchange forward contracts
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]	8		10
Liabilities:
Foreign exchange forward contracts			[2]		[3]
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	6 Months Ended
	Jan. 31, 2021USD ($)
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	$ 775,000
Feb-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	175,000
Mar-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
Apr-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
May-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
EUR [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	639,102
EUR [Member] | Feb-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	149,009
EUR [Member] | Mar-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	163,480
EUR [Member] | Apr-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	163,360
EUR [Member] | May-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	163,253
Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	800,000
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] | Mar-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
Western Alliance Bank [Member] | Apr-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000
Western Alliance Bank [Member] | May-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	6,900,078
Western Alliance Bank [Member] | NOK [Member] | Feb-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	1,818,509
Western Alliance Bank [Member] | NOK [Member] | Mar-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	1,693,583
Western Alliance Bank [Member] | NOK [Member] | Apr-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	1,693,903
Western Alliance Bank [Member] | NOK [Member] | May-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	$ 1,694,083

Derivative Instruments (Detai_2

Derivative Instruments (Details) - Schedule of fair value of derivative assets and liabilities - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2021	Jul. 31, 2020
Derivatives not designated or not qualifying as hedging instruments
Balance Sheet Location	Other current assets
Foreign exchange forward contracts, Liabilities	$ 8	$ 10

Derivative Instruments (Detai_3

Derivative Instruments (Details) - Schedule of derivative instruments on consolidated statements of comprehensive income (loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Schedule of derivative instruments on consolidated statements of comprehensive income (loss) [Abstract]
Location of Gain (Loss) Recognized on Derivatives			Net gain (loss) resulting from foreign exchange transactions
Foreign exchange forward contracts	$ 92	$ 20	$ 51	$ (54)

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	$ 482	$ 392
Accrued income taxes	325
Accrued payroll taxes	304	274
Operating lease liability	193	232
Due to artists	185	136
Accrued payroll and bonuses	32	132
Other	20	44
Total accrued expenses and other current liabilities	$ 1,541	$ 1,210

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)

Jan. 13, 2020

Nov. 07, 2019

Jan. 31, 2021

Dec. 31, 2020

Nov. 30, 2020

Oct. 31, 2020

Nov. 18, 2019

Aug. 31, 2019

Jan. 31, 2021

Oct. 31, 2020

Jan. 31, 2020

Jan. 31, 2021

Jan. 31, 2020

Stock-Based Compensation (Details) [Line Items]

Stock, description

the Compensation Committee approved equity grants of options to purchase an aggregate of 180,996 shares of Class B Stock to four employees and one consultant. The options vest over a three-year period. Unrecognized compensation expense related to these grants was an aggregate of $242,000 based on the estimated fair value of the options on the grant dates. The unrecognized compensation expense is being recognized on a straight-line basis over the vesting period.

the Compensation Committee approved equity grants of options to purchase an aggregate of 180,996 shares of Class B Stock to four employees and one consultant. The options vest over a three-year period. Unrecognized compensation expense related to these grants was an aggregate of $242,000 based on the estimated fair value of the options on the grant dates. The unrecognized compensation expense is being recognized on a straight-line basis over the vesting period.

the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 37,000 shares of Class B Stock to four individuals including company executives and employees, vesting over a three-year period with respect to 15,000 options grants with the remaining 22,000 options grants vesting over a four-year period. Unrecognized compensation expense related to the 37,000 options grants was an aggregate of $141,000 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.

the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 37,000 shares of Class B Stock to four individuals including company executives and employees, vesting over a three-year period with respect to 15,000 options grants with the remaining 22,000 options grants vesting over a four-year period. Unrecognized compensation expense related to the 37,000 options grants was an aggregate of $141,000 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.

Shares issued

312,287

29,917

Proceeds From Stock Option Exercised (in Dollars)

$ 396,000

$ 4,000

Unrecognized compensation expense (in Dollars)

376,000

Compensation committee corporate governance committee

the Compensation Committee and the Corporate Governance Committee of our Board of Directors approved a grant of 92,593 restricted shares of the Company’s Class B Common Stock to our Executive Chairman Michael Jonas. Mr. Jonas agreed to accept all of his compensation for his service as Executive Chairman during fiscal 2021 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 2021 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, 2022, 2023 and 2024.These shares had an aggregate grant date fair value of $350,000 which is being amortized on a straight-line basis over the vesting period.

Compensation committee approved grant

the Compensation Committee approved a grant of 30,534 restricted shares of Class B Common Stock to Mr. Elliot Gibber, our Interim Chief Executive Officer in respect of his service in that capacity through the end of Fiscal 2020 (or such shorter period as he shall serve in that capacity). The grant vested on February 7, 2020 and May 7, 2020. These shares had an aggregate grant date fair value of $60,000 which was amortized on a straight-line basis over the vesting period. At January 31, 2020, unrecognized compensation expense related to unvested restricted stock was an aggregate of $30,000.

Amount of share purchase (in Dollars)

$ 4,785,000

$ 275,000

Number of Employees, Total [Member]

Stock-Based Compensation (Details) [Line Items]

Amount of share purchase (in Dollars)

18,000

$ 29,000

2008 Stock Option and Incentive Plan [Member]

Stock-Based Compensation (Details) [Line Items]

Stock, description

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.

Deferred Stock Units [Member]

Stock-Based Compensation (Details) [Line Items]

Unrecognized compensation expense (in Dollars)

139,000

Number of non-executive employees, description

In August 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.

Aggregate value (in Dollars)

49,000

Restricted Stock [Member]

Stock-Based Compensation (Details) [Line Items]

Options granted

10,619

Restricted stock, description

In October 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)

$ 364,000

Class B Stock [Member]

Stock-Based Compensation (Details) [Line Items]

Shares purchased

230,000

12,005

18,441

Aggregate shares

1,271,000

Amount of share purchase (in Dollars)

$ 8,000

Class B Stock [Member] | 2016 Incentive Plan [Member]

Stock-Based Compensation (Details) [Line Items]

Inclusive of the additional

250,000

Aggregate of shares

1,521,000

Class B Stock [Member] | 2016 Incentive Plan [Member]

Stock-Based Compensation (Details) [Line Items]

Options granted

358,000

358,000

358,000

Class B Stock [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 various 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 60,649 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.

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		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Schedule of weighted-average number of shares calculation of basic and diluted earnings per share [Abstract]
Basic weighted-average number of shares	12,633	10,229	12,412	10,212
Effect of dilutive securities:
Stock options	698	371	472
Non-vested restricted Class B common stock	73	3	44
Deferred stock units	27	12	21
Diluted weighted-average number of shares	13,431	10,615	12,949	10,212

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		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	14	1,078	215	1,595
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	14	937	215	1,330
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		141		172
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				93

Contingencies (Details)

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

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - USD ($)	Nov. 16, 2016	Sep. 27, 2016	Jan. 31, 2021
Revolving Credit Facility (Details) [Line Items]
Line of credit maturity date		Sep. 26, 2022
Loan and security agreement with Western Alliance Bank for revolving credit facility	$ 5,000,000	$ 2,500,000
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 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 amount			$ 1,580,000
Available borrowing reduction			$ 157,500
Revolving Credit Facility [Member]
Revolving Credit Facility (Details) [Line Items]
Line of credit facility, borrowing capacity, description			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.
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	Jan. 31, 2021	Jul. 31, 2020
Long-lived assets, net:
Long-lived assets, net	$ 2,679	$ 3,055
Total assets:
Total assets	21,785	12,005
United States [Member]
Long-lived assets, net:
Long-lived assets, net	2,231	2,513
Total assets:
Total assets	17,229	7,730
Foreign [Member]
Long-lived assets, net:
Long-lived assets, net	448	542
Total assets:
Total assets	$ 4,556	$ 4,275

Operating Leases (Details)

Operating Leases (Details) - USD ($)	Jan. 31, 2021	Jul. 31, 2020
Operating Leases [Abstract]
Operating lease right-of-use assets	$ 220,000	$ 317,000

Provision for Income taxes (Det

Provision for Income taxes (Details) - USD ($)	1 Months Ended	6 Months Ended
	Mar. 27, 2020	Jan. 31, 2021	Jul. 31, 2020
Provision for Income taxes (Details) [Line Items]
Net operating loss carryforwards			$ 433,000
Effective tax rate		7.90%
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	Jan. 31, 2021	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	Dec. 04, 2020	Feb. 05, 2020	Jan. 31, 2021	Jan. 31, 2020
Sales of Class B Common Stock (Details) [Line Items]
Gross proceeds			$ 4,800
Sales of class B common stock description			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 (supplementing the Prospectus included in the Form S-3) on December 9, 2020 and contemporaneously entered into an At The Market Offering Agreement with the Sales Agents (the “ATM Sales Agreement”), pursuant to which the Company sold 761,906 shares at an average price of $6.5625 per share for total proceeds of $5 million as of January 28, 2021. In connection with this offering, the Company incurred a total issuance costs of $215,000. The Company intends to use the net proceeds from this offering for working capital and other general corporate purposes.
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.
Common Class B [Member]
Sales of Class B Common Stock (Details) [Line Items]
Gross proceeds	$ 20,000	$ 2,250