Zedge (ZDGE) 10-Q 14 Dec 21 2022 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Oct. 31, 2021	Dec. 10, 2021
Document Information Line Items
Entity Registrant Name	ZEDGE, INC.
Trading Symbol	ZDGE
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, 2021
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-37782
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-3199071
Entity Address, Address Line One	1178 Broadway
Entity Address, Address Line Two	3rd Floor #1450
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	(330)
Local Phone Number	577-3424
Title of 12(b) Security	Class B common stock, par value $.01 per share
Security Exchange Name	NYSE
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		13,861,289

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Current assets:
Cash and cash equivalents	$ 27,249	$ 24,908
Trade accounts receivable, net of allowance of $0 at October 31, 2021 and July 31, 2021	2,816	2,545
Prepaid expenses	322	111
Other current assets	105	49
Total current assets	30,492	27,613
Property and equipment, net	1,891	1,980
Intangible assets, net	6,791
Goodwill	2,361	2,262
Deferred tax assets, net	477	477
Other assets	358	5,145
Total assets	42,370	37,477
Current liabilities:
Trade accounts payable	407	585
Due to seller of Emojipedia	2,094
Accrued expenses and other current liabilities	2,501	1,771
Deferred revenues	1,803	1,821
Total current liabilities	6,805	4,177
Other liabilities	126	145
Total liabilities	6,931	4,322
Commitments and contingencies (Note 8)
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, 2021 and July 31, 2021	5	5
Class B common stock, $.01 par value; authorized shares—40,000; 13,935 shares issued and 13,861 shares outstanding at October 31, 2021, and 13,923 shares issued and 13,865 ouststanding at July 31, 2021	139	139
Additional paid-in capital	41,983	41,664
Accumulated other comprehensive loss	(855)	(997)
Accumulated deficit	(5,499)	(7,554)
Treasury stock, 74 shares at October 31, 2021 and 58 shares at July 31, 2021, at cost	(334)	(102)
Total stockholders’ equity	35,439	33,155
Total liabilities and stockholders’ equity	$ 42,370	$ 37,477

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Net of allowance (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	74	58
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	13,935	13,923
Common stock, shares outstanding	13,861	13,865

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Income Statement [Abstract]
Revenues	$ 6,028	$ 3,762
Costs and expenses:
Direct cost of revenues (exclusive of amortization of capitalized software and technology development costs included below)	310	304
Selling, general and administrative	2,732	2,006
Depreciation and amortization	398	359
Income from operations	2,588	1,093
Interest and other income, net	13	1
Net loss resulting from foreign exchange transactions	(10)	(41)
Income before income taxes	2,591	1,053
Provision for income taxes	536	8
Net Income	2,055	1,045
Other comprehensive income (loss):
Changes in foreign currency translation adjustment	142	(159)
Total other comprehensive income (loss)	142	(159)
Total comprehensive income	$ 2,197	$ 886
Income per share attributable to Zedge, Inc. common stockholders:
Basic (in Dollars per share)	$ 0.14	$ 0.09
Diluted (in Dollars per share)	$ 0.14	$ 0.08
Weighted-average number of shares used in calculation of income per share:
Basic (in Shares)	14,281,000	12,191,000
Diluted (in Shares)	15,031,000	12,496,000

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Class ACommon Stock	Class BCommon Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock	Total
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					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, 2021	$ 5	$ 139	41,664	(997)	(7,554)	(102)	33,155
Balance (in Shares) at Jul. 31, 2021	525	13,923
Stock-based compensation			319				319
Stock-based compensation (in Shares)		12
Purchase of treasury stock						(232)	(232)
Foreign currency translation adjustment				142			142
Net income					2,055		2,055
Balance at Oct. 31, 2021	$ 5	$ 139	$ 41,983	$ (855)	$ (5,499)	$ (334)	$ 35,439
Balance (in Shares) at Oct. 31, 2021	525	13,935

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Operating activities
Net income	$ 2,055	$ 1,045
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	398	359
Stock-based compensation	319	237
Change in assets and liabilities:
Trade accounts receivable	(295)	(554)
Prepaid expenses and other current assets	(279)	80
Other assets	(8)	19
Trade accounts payable and accrued expenses	522	80
Deferred revenue	(18)	221
Net cash provided by operating activities	2,694	1,487
Investing activities
Capitalized software and technology development costs and purchase of equipment	(188)	(215)
Net cash used in investing activities	(188)	(215)
Financing activities
Repayment of insurance premium loan payable		(40)
Purchase of treasury stock in connection with restricted stock vesting	(232)	(26)
Net cash used in financing activities	(232)	(66)
Effect of exchange rate changes on cash and cash equivalents	67	(65)
Net increase in cash and cash equivalents	2,341	1,141
Cash and cash equivalents at beginning of period	24,908	5,111
Cash and cash equivalents at end of period	27,249	6,252
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for income taxes		1
Cash payments made for interest expenses		3
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Acquistion of Emojipedia through release of escrow fund of $4,776, due to seller of $2,118 and legal fee of $12	6,906
Accounts receivable from certain Emojipedia websites collected by Seller	24
Note payable issued for insurance premium financing		$ 181

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) $ in Thousands	3 Months Ended
	Oct. 31, 2021USD ($)
Statement of Cash Flows [Abstract]
Escrow fund	$ 4,776
Due to seller	2,118
Legal fee	$ 12

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Oct. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1—Summary of Significant Accounting Policies 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, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2022 or any other period. The balance sheet at July 31, 2021 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, 2021, 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 2022 refers to the fiscal year ending July 31, 2022). Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ materially from the Company’s estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the global impact of the COVID-19 pandemic. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be affected. The Company bases its estimates on past experience and other assumptions that the Company believes are reasonable under the circumstances, and the Company evaluates these estimates on an ongoing basis. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes With the exception of the accounting standard discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the three months ended October 31, 2021, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021, that are of significance or potential significance to the Company. Significant Accounting Policies Other than intangible assets described below, there have been no material changes to the Company’s significant accounting policies from its Annual Report on Form 10-K for the fiscal year ended July 31, 2021. Intangible Assets Intangible assets (see Note 16) are carried at cost and amortized on a straight-line basis over their estimated useful lives of fifteen years. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. There have been no impairment charges recorded in the three months ended October 31, 2021 presented in the accompanying consolidated financial statements.

Revenue Disaggregation of Reven

Revenue Disaggregation of Revenue	3 Months Ended
	Oct. 31, 2021
Revenue from Contract with Customer [Abstract]
RevenueRevenue Disaggregation of 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, 2021 2020 (in thousands) Advertising revenue $ 4,569 $ 2,986 Paid subscription revenue 960 650 Other revenues 499 126 Total Revenues $ 6,028 $ 3,762 Contract Balances Deferred revenues The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. As of October 31, 2021, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,562,000, representing approximately 763,000 active subscribers including those under the account hold designation 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, 2021, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,603,000, representing approximately 752,000 active subscribers. The amount of revenue recognized in the three months ended October 31, 2021 that was included in the deferred balance at July 31, 2021 was $717,000. 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 October 31, 2021, and July 31, 2021, the Company’s deferred revenue balance related to Zedge Premium was approximately $241,000 and $218,000, respectively. Total deferred revenues decreased by $18,000 from $1,821,000 at July 31, 2021 to $1,803,000 at October 31, 2021, primarily attributed to the decline in new subscriptions sales in the three months ended October 31, 2021 when compared to the prior period. 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.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 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) October 31, 2021 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ - $ - $ - July 31, 2021 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ 54 $ - $ 54 (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, 2021 and July 31, 2021 included trade accounts receivable, trade accounts payable, and due to seller of Emojipedia. The carrying amounts of the trade accounts receivable, trade accounts payable, and due to seller of Emojipedia approximated fair value due to their short-term nature.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Oct. 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. 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, 2021, are as follows: Settlement Date U.S. Dollar Amount NOK Amount Nov-21 200,000 1,683,755 Dec-21 225,000 1,966,794 Jan-22 225,000 1,967,244 Feb-22 225,000 1,967,896 Mar-22 225,000 1,968,684 Apr-22 225,000 1,969,696 May-22 225,000 1,970,619 Total $ 1,550,000 13,494,688 Settlement Date U.S. Dollar Amount EUR Amount Feb-22 250,000 206,463 Dec-21 225,000 189,340 Jan-22 225,000 189,165 Feb-22 225,000 189,037 Mar-22 225,000 188,926 Apr-22 225,000 188,800 May-22 225,000 188,673 Total $ 1,600,000 1,340,404 The fair value of outstanding derivative instruments recorded in the accompanying consolidated balance sheets were as follows: October 31, July 31, Assets and Liabilities Derivatives: Balance Sheet Location 2021 2021 Derivatives not designated or not qualifying as hedging instruments (in thousands) Foreign exchange forward contracts Accrued expenses and other current liabilities $ - $ 54 The effects of derivative instruments on the consolidated statements of comprehensive income were as follows: Amount of Gain (Loss) Recognized on Derivatives Three Months Ended 2021 2020 Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized on Derivatives (in thousands) Foreign exchange forward contracts Net gain (loss) resulting from foreign exchange transactions $ 10 $ (41 )

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Oct. 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: October 31, July 31, 2021 2021 (in thousands) Accrued vacation $ 457 $ 424 Accrued income taxes payable 799 264 Accrued payroll taxes 294 291 Accrued payroll and bonuses 460 374 Operating lease liability 93 86 Derivative liability - 54 Due to artists 262 246 Other 136 32 Total accrued expenses and other current liabilities $ 2,501 $ 1,771

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Oct. 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. On November 10, 2021, 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 325,000 shares to an aggregate of 1,846,000 shares. This amendment is subject to ratification by the Company’s stockholders during the Annual Meeting of Stockholders to be held on January 12, 2022. At October 31, 2021, there were 425,000 shares of Class B Stock available for awards under the 2016 Incentive Plan before accounting for the 204,000 contingently issuable shares related to the DSUs with both service and market conditions discussed below. Stock Options In August and October 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. As of October 31, 2021, the unrecognized compensation expense related to the unvested portion of this grant was $42,500. 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 October 2021, the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 15,250 shares of Class B Stock to three of its non-executive employees based in Lithuania and one consultant, vesting over a four-year period. Unrecognized compensation expense related to the 15,250 options grants was an aggregate of $163,000 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. At October 31, 2021, unrecognized compensation expense related to unvested stock options was an aggregate of $841,000. Deferred Stock Units (DSUs) On September 7, 2021, the Company granted a total of 291,320 DSUs to 64 of its employees and consultants. Each DSU represents the right to receive one share of the Company’s Class B common stock. Vesting of 30% (87,396) of the DSUs is based on the grantee remaining in service to the Company and will take place as to 25% on such DSUs on September 7, 2022, as to an additional 33% of such DSUs on September 7, 2023, and as to the remaining DSUs on September 7, 2024. Vesting of 70% (203,924) of the DSUs is subject to continued service as well as a market condition. Those DSUs will only vest if the grantee remains in service to the Company and only if the aggregate market capitalization of the Company’s equity securities has reached or exceeded $451 million for five consecutive trading days between the grant date and the vest date. Subject to satisfaction of both of those conditions, 25% of such DSUs will vest on September 7, 2022, up to 58% (the 25% eligible to vest in 2022 and an additional 33%) of such DSUs will vest on September 7, 2023, and up to 100% will vest on September 7, 2024. In the event the market capitalization condition has not been met prior to a vesting date, but is met by a subsequent vesting date, all DSUs eligible for vesting prior to that date shall vest. In the event that the market capitalization condition has not been met by September 7, 2024, these 70% of the DSUs shall expire. These 70% DSUs or 203,924 DSUs with market condition have been valued by an outside valuation firm using a Monte Carlo simulation model. The Monte Carlo simulation methodology estimates the future equity value of Zedge on a risk-neutral basis. The outside valuation firm’s mean value indication for a single DSU was $7.19 and their mean standard of error was less than 1%. Total grant date fair value for these 70% DSUs with both time and market condition was approximately $1.5 million. The unrecognized compensation expense is being recognized on a graded vesting method over the vesting period. Total grant date fair value for the remaining 30% DSUs without market-based condition was approximately $1.3 million. The unrecognized compensation expense is being recognized on a straight-line basis over the vesting period. At October 31, 2021, unrecognized compensation expense related to unvested DSUs was an aggregate of $2.6 million. In the three months ended October 31, 2021 and 2020, the Company purchased 4,450 shares and 5,625 shares of Class B Stock from various employees for $72,000 and $8,000, respectively, to satisfy tax withholding obligations in connection with the vesting of DSUs. Restricted Stock Awards 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 were fully vested on grant. These shares had an aggregate grant date fair value of $30,000 and have been fully amortized accordingly. At October 31, 2021, unrecognized compensation expense related to unvested restricted stock awards was an aggregate of $250,000. In the three months ended October 31, 2021 and 2020, the Company purchased 11,665 shares and 12,005 shares respectively of Class B Stock from certain employees for $160,000 and $18,000 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, 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 October 31, 2021 2020 (in thousands) Basic weighted-average number of shares 14,281 12,191 Effect of dilutive securities: Stock options 653 292 Non-vested restricted Class B common stock 75 11 Deferred stock units 22 2 Diluted weighted-average number of shares 15,031 12,496 The following shares were excluded from the dilutive earnings per share computations because their inclusion would have been anti-dilutive: Three Months Ended October 31, 2021 2020 (in thousands) Stock options 65 917 Non-vested restricted Class B common stock - 34 Deferred stock units 171 - Shares excluded from the calculation of diluted earnings per share 236 951

Contingencies

Contingencies	3 Months Ended
	Oct. 31, 2021
Loss Contingency [Abstract]
Contingencies	Note 8—Contingencies Legal Proceedings 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, 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 October 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 October 31, 2021, there were approximately $3.2 million of outstanding foreign exchange contracts with the majority being less than six months tenor under the credit facility, which reduced the available borrowing under the revolving credit facility by $326,250.

Business Segment and Geographic

Business Segment and Geographic Information	3 Months Ended
	Oct. 31, 2021
Business Segment And Geographic Information [Abstract]
Business Segment and Geographic Information	Note 10—Business Segment and Geographic Information The Company provides a content platform, worldwide, centered on self-expression, attracting both creators looking to promote their content and consumers who utilize such content to express their identity, feelings, tastes and interests. The Company’s platform enables consumers to personalize their mobile devices with mostly free, high-quality ringtones, wallpapers, home screen app icons, widgets and notification sounds. The Company conducts business as one 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, 2021 $ 1,814 $ 385 $ 2,199 July 31, 2021 $ 1,900 $ 641 $ 2,541 Total assets: October 31, 2021 $ 37,341 $ 5,029 $ 42,370 July 31, 2021 $ 32,745 $ 4,732 $ 37,477

Operating Leases

Operating Leases	3 Months Ended
	Oct. 31, 2021
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 $230,000 and $243,000 at October 31, 2021 and July 31, 2021, respectively. Future minimum lease payments under non-cancellable leases at October 31, 2021 are as follows (in thousands): Years ending July 31, Operating Leases 2022 $ 70 2023 100 2024 52 Total future minimum lease payments 222 Less imputed interest 3 Total $ 219 There were no other material changes in the Company’s operating and finance leases in the three months ended October 31, 2021, as compared to the disclosure in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021.

Provision for Income Taxes

Provision for Income Taxes	3 Months Ended
	Oct. 31, 2021
Income Tax Disclosure [Abstract]
Provision for Income taxes	Note 12—Provision for Income taxes The Company’s tax provision or benefit for income taxes for interim periods has generally been determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any. Under certain circumstances where the Company is unable to make a reliable estimate of the annual effective tax rate, the accounting guidance permits the use of the actual effective tax rate for the year-to-date period. The Company expects its overall effective tax rate for fiscal year ending July 31, 2022 to be approximately 23.1%. During the three months ended October 31, 2021, the Company accounted for a discrete item related to shares of restricted stock vested during the three months period ended October 31, 2021 with a vesting date fair market value above the grant date fair market value which resulted in a net effective tax rate of 20.7%. As of October 31, 2021, the Company had $477,000 of deferred tax assets for which it has not established a valuation allowance, related to the U.S. federal states and certain international subsidiary. The Company completed its reassessment of the ability to realize these assets and concluded that a valuation allowance was not required. The Company is subject to taxation in the United States and certain foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The material jurisdictions where the Company is subject to potential examination by tax authorities include the United States, Norway and Lithuania.

Loans Payable

Loans Payable	3 Months Ended
	Oct. 31, 2021
Loans Payable [Abstract]
Loans Payable	Note 13—Loans Payable Effective August 1, 2020, the Company obtained a loan of $181,462 to pay for its insurance coverages, repayable in nine equal installments of $20,491 starting from September 1, 2020 which represented a 3.89% annual percentage interest rate. The Company obtained a loan under the Payroll Protection Program (PPP) of the CARES Act in the amount of $218,000 loan 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 (which was extended to 24 weeks). Any portion of the loan that is not forgiven would have been due two years after inception of the loan. On November 25, 2020, the Company submitted the PPP Loan Forgiveness Application Form 3508EZ and on May 21, 2021, the Company was notified that such application for the loan forgiveness has been approved and the loan, including accrued interest, has been deemed satisfied in full by the Small Business Administration to Western Alliance Bank. The Company therefore recorded a gain on forgiveness of debt of $218,000 in the three months ended July 31, 2021.

Sales of Class B Common Stock

Sales of Class B Common Stock	3 Months Ended
	Oct. 31, 2021
Sale Of Common Stock [Abstract]
Sales of Class B Common Stock	Note 14—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 March 16, 2021, the Company filed a prospectus supplement with the SEC which contemplates the sale, for a gross aggregate sale price of up to $10,000,000, of shares of the Company’s Class B common stock, from time to time in “at the market offerings” pursuant to an At Market Issuance Sales Agreement with National Securities Corporation and Maxim Group LLC (the “New Sales Agents”), dated as of March 16, 2021 (the “New ATM Sales Agreement”), pursuant to which we sold 663,686 shares at an average price of $15.0674 per share for total proceeds of $10 million. In connection with this offering, we incurred a total issuance costs of $350,000. We intend to use the net proceeds from this offering for working capital and other general corporate purposes.

Acquisition

Acquisition	3 Months Ended
	Oct. 31, 2021
Asset Acquisition [Abstract]
Acquisition	Note 15—Acquisition Pursuant to an Asset Purchase Agreement, on August 1, 2021 (“Closing”), the Company consummated the acquisition of substantially all of the assets of Emojipedia Pty Ltd, a proprietary company organized under the laws of Australia. The total purchase price of the assets is estimated to be approximately $6.9 million of which $4.8 million was paid on August 2, 2021 with the remaining $2.1 million to be paid out in two equal installments on the six-month and twelve-month anniversary of the Closing. The final determination of the purchase price will be made in the 2 nd The assets purchased include emojipedia.org, a set of smaller websites, a bank of emoji related URLs and other assets related to the seller’s business, including World Emoji Day, the annual World Emoji Awards, and Emojitracker. The transaction does not qualify as a business combination under FASB ASC 805, Business Combinations The results of operations for this acquisition are included in the Company’s consolidated statements of operations since the date of the acquisition. Actual and pro forma revenue and results of operations for this acquisition have not been presented because they do not have a material impact on the consolidated results of operations.

Intangible Assets

Intangible Assets	3 Months Ended
	Oct. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 16—Intangible Assets The following table presents the detail of intangible assets for the three months ended October 31, 2021 (in thousands): Gross Accumulated Net Carrying Balance at July 31, 2021 $ - $ - $ - Emojipedia.org and other internet domains acquired 6,906 115 6,791 Balance at October 31, 2021 $ 6,906 $ 115 $ 6,791 Estimated future amortization expense as of October 31, 2021 is as follows (in thousands): Remainder of fiscal 2022 $ 345 Fiscal 2023 460 Fiscal 2024 460 Fiscal 2025 460 Fiscal 2026 460 Thereafter 4,606 Total $ 6,791

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Oct. 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 months ended October 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2022 or any other period. The balance sheet at July 31, 2021 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, 2021, 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 2022 refers to the fiscal year ending July 31, 2022).
Use of Estimates	Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ materially from the Company’s estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the global impact of the COVID-19 pandemic. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be affected. The Company bases its estimates on past experience and other assumptions that the Company believes are reasonable under the circumstances, and the Company evaluates these estimates on an ongoing basis.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes With the exception of the accounting standard discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the three months ended October 31, 2021, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021, that are of significance or potential significance to the Company.
Significant Accounting Policy [Policy Text Block]	Significant Accounting Policies Other than intangible assets described below, there have been no material changes to the Company’s significant accounting policies from its Annual Report on Form 10-K for the fiscal year ended July 31, 2021.
Intangible Assets	Intangible Assets Intangible assets (see Note 16) are carried at cost and amortized on a straight-line basis over their estimated useful lives of fifteen years. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. There have been no impairment charges recorded in the three months ended October 31, 2021 presented in the accompanying consolidated financial statements.

Revenue Disaggregation of Rev_2

Revenue Disaggregation of Revenue (Tables)	3 Months Ended
	Oct. 31, 2021
Revenue [Abstract]
Schedule of revenue by type of service	Three Months Ended October 31, 2021 2020 (in thousands) Advertising revenue $ 4,569 $ 2,986 Paid subscription revenue 960 650 Other revenues 499 126 Total Revenues $ 6,028 $ 3,762

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 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) October 31, 2021 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ - $ - $ - July 31, 2021 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ 54 $ - $ 54

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Oct. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of outstanding foreign exchange contracts	Settlement Date U.S. Dollar Amount NOK Amount Nov-21 200,000 1,683,755 Dec-21 225,000 1,966,794 Jan-22 225,000 1,967,244 Feb-22 225,000 1,967,896 Mar-22 225,000 1,968,684 Apr-22 225,000 1,969,696 May-22 225,000 1,970,619 Total $ 1,550,000 13,494,688 Settlement Date U.S. Dollar Amount EUR Amount Feb-22 250,000 206,463 Dec-21 225,000 189,340 Jan-22 225,000 189,165 Feb-22 225,000 189,037 Mar-22 225,000 188,926 Apr-22 225,000 188,800 May-22 225,000 188,673 Total $ 1,600,000 1,340,404
Schedule of fair value of outstanding derivative instruments	October 31, July 31, Assets and Liabilities Derivatives: Balance Sheet Location 2021 2021 Derivatives not designated or not qualifying as hedging instruments (in thousands) Foreign exchange forward contracts Accrued expenses and other current liabilities $ - $ 54
Schedule of derivative instruments on consolidated statements of comprehensive income (loss)	Amount of Gain (Loss) Recognized on Derivatives Three Months Ended 2021 2020 Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized on Derivatives (in thousands) Foreign exchange forward contracts Net gain (loss) resulting from foreign exchange transactions $ 10 $ (41 )

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Oct. 31, 2021
Payables and Accruals [Abstract]
Schedule of accrued expenses and other current liabilities	October 31, July 31, 2021 2021 (in thousands) Accrued vacation $ 457 $ 424 Accrued income taxes payable 799 264 Accrued payroll taxes 294 291 Accrued payroll and bonuses 460 374 Operating lease liability 93 86 Derivative liability - 54 Due to artists 262 246 Other 136 32 Total accrued expenses and other current liabilities $ 2,501 $ 1,771

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Oct. 31, 2021
Earnings Per Share [Abstract]
Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings per share	Three Months Ended October 31, 2021 2020 (in thousands) Basic weighted-average number of shares 14,281 12,191 Effect of dilutive securities: Stock options 653 292 Non-vested restricted Class B common stock 75 11 Deferred stock units 22 2 Diluted weighted-average number of shares 15,031 12,496
Schedule of dilutive earnings per share computations	Three Months Ended October 31, 2021 2020 (in thousands) Stock options 65 917 Non-vested restricted Class B common stock - 34 Deferred stock units 171 - Shares excluded from the calculation of diluted earnings per share 236 951

Business Segment and Geograph_2

Business Segment and Geographic Information (Tables)	3 Months Ended
	Oct. 31, 2021
Business Segment And Geographic Information [Abstract]
Schedule of net long lived assets and total assets	United States Foreign Total (in thousands) Long-lived assets, net: October 31, 2021 $ 1,814 $ 385 $ 2,199 July 31, 2021 $ 1,900 $ 641 $ 2,541 Total assets: October 31, 2021 $ 37,341 $ 5,029 $ 42,370 July 31, 2021 $ 32,745 $ 4,732 $ 37,477

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Oct. 31, 2021
Leases [Abstract]
Schedule of future minimum lease payments under non-cancellable leases	Years ending July 31, Operating Leases 2022 $ 70 2023 100 2024 52 Total future minimum lease payments 222 Less imputed interest 3 Total $ 219

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Oct. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Gross Accumulated Net Carrying Balance at July 31, 2021 $ - $ - $ - Emojipedia.org and other internet domains acquired 6,906 115 6,791 Balance at October 31, 2021 $ 6,906 $ 115 $ 6,791
Schedule of estimated future amortization expense	Remainder of fiscal 2022 $ 345 Fiscal 2023 460 Fiscal 2024 460 Fiscal 2025 460 Fiscal 2026 460 Thereafter 4,606 Total $ 6,791

Revenue Disaggregation of Rev_3

Revenue Disaggregation of Revenue (Details) - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2021	Jul. 31, 2021
Revenue Disaggregation of 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 October 31, 2021, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,562,000, representing approximately 763,000 active subscribers including those under the account hold designation 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, 2021, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,603,000, representing approximately 752,000 active subscribers.
Deferred revenue recognized	$ 717,000
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.
Deferred revenue balance	$ 241,000	$ 218,000
Zedge Premium [Member]
Revenue Disaggregation of Revenue (Details) [Line Items]
Deferred revenues decreased	$ 1,803,000
Zedge Premium [Member] | Minimum [Member]
Revenue Disaggregation of Revenue (Details) [Line Items]
Deferred revenues decreased		18,000
Zedge Premium [Member] | Maximum [Member]
Revenue Disaggregation of Revenue (Details) [Line Items]
Deferred revenues decreased		$ 1,821,000

Revenue Disaggregation of Rev_4

Revenue Disaggregation of Revenue (Details) - Schedule of revenue by type of service - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Revenue Disaggregation of Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	$ 6,028	$ 3,762
Advertising revenue [Member]
Revenue Disaggregation of Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	4,569	2,986
Paid subscription revenue [Member]
Revenue Disaggregation of Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	960	650
Other revenues [Member]
Revenue Disaggregation of Revenue (Details) - Schedule of revenue by type of service [Line Items]
Total Revenues	$ 499	$ 126

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, 2021	Jul. 31, 2021
Assets:
Foreign exchange forward contracts
Liabilities:
Foreign exchange forward contracts			54
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Foreign exchange forward contracts	[1]
Liabilities:
Foreign exchange forward contracts	[1]
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Foreign exchange forward contracts	[2]
Liabilities:
Foreign exchange forward contracts	[2]		54
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [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, 2021 € in Thousands, kr in Thousands, $ in Thousands	USD ($)	NOK (kr)	EUR (€)
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	$ 1,600,000		€ 1,340,404
Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	1,550,000	kr 13,494,688
Nov-21 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	200,000	1,683,755
Dec-21 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000	1,966,794
Jan-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000	1,967,244
Feb-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000	1,967,896
Mar-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000	1,968,684
Apr-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000	1,969,696
May-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000	kr 1,970,619
Feb-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	250,000		206,463
Dec-21 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000		189,340
Jan-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000		189,165
Feb-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000		189,037
Mar-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000		188,926
Apr-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	225,000		188,800
May-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding foreign exchange contracts [Line Items]
Amount	$ 225,000		€ 188,673

Derivative Instruments (Detai_2

Derivative Instruments (Details) - Schedule of fair value of outstanding derivative instruments - Foreign exchange forward contracts One [Member] - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Jul. 31, 2021
Derivative Instruments (Details) - Schedule of fair value of outstanding derivative instruments [Line Items]
Balance Sheet Location	Accrued expenses and other current liabilities
Foreign exchange forward contracts		$ 54

Derivative Instruments (Detai_3

Derivative Instruments (Details) - Schedule of derivative instruments on consolidated statements of comprehensive income (loss) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 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	$ 10	$ (41)

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 31, 2021	Jul. 31, 2021
Schedule of accrued expenses and other current liabilities [Abstract]
Accrued vacation	$ 457	$ 424
Accrued income taxes payable	799	264
Accrued payroll taxes	294	291
Accrued payroll and bonuses	460	374
Operating lease liability	93	86
Derivative liability		54
Due to artists	262	246
Other	136	32
Total accrued expenses and other current liabilities	$ 2,501	$ 1,771

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	Nov. 10, 2021	Sep. 07, 2021	Nov. 18, 2020	Oct. 31, 2021	Oct. 31, 2020
Stock-Based Compensation (Details) [Line Items]
Restricted stock, description				the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 15,250 shares of Class B Stock to three of its non-executive employees based in Lithuania and one consultant, vesting over a four-year period. Unrecognized compensation expense related to the 15,250 options grants was an aggregate of $163,000 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.
Unrecognized compensation expense (in Dollars)				$ 841,000
Employees and consultants share		291,320
Vesting shares, description		Vesting of 30% (87,396) of the DSUs is based on the grantee remaining in service to the Company and will take place as to 25% on such DSUs on September 7, 2022, as to an additional 33% of such DSUs on September 7, 2023, and as to the remaining DSUs on September 7, 2024.
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)				$ 250,000
Vesting percentage, description				Vesting of 70% (203,924) of the DSUs is subject to continued service as well as a market condition. Those DSUs will only vest if the grantee remains in service to the Company and only if the aggregate market capitalization of the Company’s equity securities has reached or exceeded $451 million for five consecutive trading days between the grant date and the vest date. Subject to satisfaction of both of those conditions, 25% of such DSUs will vest on September 7, 2022, up to 58% (the 25% eligible to vest in 2022 and an additional 33%) of such DSUs will vest on September 7, 2023, and up to 100% will vest on September 7, 2024. In the event the market capitalization condition has not been met prior to a vesting date, but is met by a subsequent vesting date, all DSUs eligible for vesting prior to that date shall vest. In the event that the market capitalization condition has not been met by September 7, 2024, these 70% of the DSUs shall expire. These 70% DSUs or 203,924 DSUs with market condition have been valued by an outside valuation firm using a Monte Carlo simulation model. The Monte Carlo simulation methodology estimates the future equity value of Zedge on a risk-neutral basis. The outside valuation firm’s mean value indication for a single DSU was $7.19 and their mean standard of error was less than 1%. Total grant date fair value for these 70% DSUs with both time and market condition was approximately $1.5 million. The unrecognized compensation expense is being recognized on a graded vesting method over the vesting period.
Grant date percentage				30.00%
Market based condition (in Dollars)				$ 1,300,000
Compensation expense (in Dollars)				$ 2,600,000
Aggregate grant date value (in Dollars)					$ 30,000
Common Class B [Member]
Stock-Based Compensation (Details) [Line Items]
Shares available for grant	325,000			425,000
Aggregate shares	1,846,000			204,000
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. As of October 31, 2021, the unrecognized compensation expense related to the unvested portion of this grant was $42,500.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 October 2021, the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 15,250 shares of Class B Stock to three of its non-executive employees based in Lithuania and one consultant, vesting over a four-year period. Unrecognized compensation expense related to the 15,250 options grants was an aggregate of $163,000 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 purchased from employees				4,450	5,625
Shares purchased from employees, value (in Dollars)				$ 72,000	$ 8,000
Restricted shares					10,619
Common Class B [Member] | Number of Employees, Total [Member]
Stock-Based Compensation (Details) [Line Items]
Shares purchased from employees				11,665	12,005
Shares purchased from employees, value (in Dollars)				$ 160,000	$ 18,000
Common Class B [Member] | 2016 Incentive Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Shares available for grant			250,000
Aggregate of shares			1,521,000

Earnings Per Share (Details) -

Earnings Per Share (Details) - Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings per share - shares	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings per share [Abstract]
Basic weighted-average number of shares	14,281,000	12,191,000
Stock options	653,000	292,000
Non-vested restricted Class B common stock	75,000	11,000
Deferred stock units	22,000	2,000
Diluted weighted-average number of shares	15,031,000	12,496,000

Earnings Per Share (Details) _2

Earnings Per Share (Details) - Schedule of dilutive earnings per share computations - shares	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares excluded from the calculation of diluted earnings per share	236,000	951,000
Stock options [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares excluded from the calculation of diluted earnings per share	65,000	917,000
Non-vested restricted Class B common stock [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares excluded from the calculation of diluted earnings per share		34,000
Deferred stock units [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares excluded from the calculation of diluted earnings per share	171,000

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - USD ($)	1 Months Ended		3 Months Ended
	Nov. 16, 2016	Sep. 27, 2016	Oct. 31, 2021
Revolving Credit Facility (Details) [Line Items]
Loan and security agreement with Western Alliance Bank for revolving credit facility		$ 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. At October 31, 2021, there were approximately $3.2 million of outstanding foreign exchange contracts with the majority being less than six months tenor under the credit facility, which reduced the available borrowing under the revolving credit facility by $326,250.
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 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 31, 2021	Jul. 31, 2021
Long-lived assets, net:
United States	$ 1,814	$ 1,900
Foreign	385	641
Total	2,199	2,541
Total assets:
United States	37,341	32,745
Foreign	5,029	4,732
Total	$ 42,370	$ 37,477

Operating Leases (Details)

Operating Leases (Details) - USD ($)	Oct. 31, 2021	Jul. 31, 2021
Disclosure Text Block [Abstract]
Other assets	$ 230,000	$ 243,000

Operating Leases (Details) - Sc

Operating Leases (Details) - Schedule of future minimum lease payments under non-cancellable leases - Operating Leases [Member] $ in Thousands	Oct. 31, 2021USD ($)
Operating Leases (Details) - Schedule of future minimum lease payments under non-cancellable leases [Line Items]
2022	$ 70
2023	100
2024	52
Total future minimum lease payments	222
Less imputed interest	3
Total	$ 219

Provision for Income Taxes (Det

Provision for Income Taxes (Details) - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2021	Jul. 31, 2022
Provision for Income Taxes (Details) [Line Items]
Net effective tax rate	20.70%
Deferred tax assets (in Dollars)	$ 477,000
Forecast [Member]
Provision for Income Taxes (Details) [Line Items]
Effective tax rate		23.10%

Loans Payable (Details)

Loans Payable (Details) - USD ($)	1 Months Ended
	Aug. 02, 2020	Jul. 31, 2021	Apr. 22, 2020
Loans Payable [Abstract]
Insurance coverage	$ 181,462
Installment fee	$ 20,491
Annual percentage interest rate	3.89%
Loan received			$ 218,000
Gain of forgiveness of debt		$ 218,000

Sales of Class B Common Stock (

Sales of Class B Common Stock (Details) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 16, 2021	Oct. 31, 2021	Oct. 31, 2020
Sales Agent [Member]
Sales of Class B Common Stock (Details) [Line Items]
Sale of 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.
Class B Common Stock [Member]
Sales of Class B Common Stock (Details) [Line Items]
Gross proceeds		$ 20,000,000
Sale of 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. As of October 31, 2021, the unrecognized compensation expense related to the unvested portion of this grant was $42,500.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 October 2021, the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 15,250 shares of Class B Stock to three of its non-executive employees based in Lithuania and one consultant, vesting over a four-year period. Unrecognized compensation expense related to the 15,250 options grants was an aggregate of $163,000 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.
Gross aggregate sale price	$ 10,000,000
Issuance costs	350,000
Class B Common Stock [Member] | ATM Sales Agreement [Member]
Sales of Class B Common Stock (Details) [Line Items]
Gross proceeds	$ 10,000,000
Shares issued (in Shares)	663,686
Average price per share (in Dollars per share)	$ 15.0674

Acquisition (Details)

Acquisition (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Aug. 02, 2021	Oct. 31, 2021
Asset Acquisition [Abstract]
Total purchase price	$ 6.9
Paid in advance	4.8
Paid in installment	$ 2.1
Estimated useful lives		15 years

Intangible Assets (Details) - S

Intangible Assets (Details) - Schedule of intangible assets $ in Thousands	3 Months Ended
	Oct. 31, 2021USD ($)
Gross Carrying Value [Member]
Intangible Assets (Details) - Schedule of intangible assets [Line Items]
Balance at July 31, 2021
Emojipedia.org and other internet domains acquired	6,906
Balance at October 31, 2021	6,906
Accumulated Amortization [Member]
Intangible Assets (Details) - Schedule of intangible assets [Line Items]
Balance at July 31, 2021
Emojipedia.org and other internet domains acquired	115
Balance at October 31, 2021	115
Net Carrying Value [Member]
Intangible Assets (Details) - Schedule of intangible assets [Line Items]
Balance at July 31, 2021
Emojipedia.org and other internet domains acquired	6,791
Balance at October 31, 2021	$ 6,791

Intangible Assets (Details) -_2

Intangible Assets (Details) - Schedule of estimated future amortization expense $ in Thousands	Oct. 31, 2021USD ($)
Schedule of estimated future amortization expense [Abstract]
Remainder of fiscal 2022	$ 345
Fiscal 2023	460
Fiscal 2024	460
Fiscal 2025	460
Fiscal 2026	460
Thereafter	4,606
Total	$ 6,791