Zedge (ZDGE) 10-Q 16 Mar 22 2022 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jan. 31, 2022	Mar. 14, 2022
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	Jan. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
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		13,875,275

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jan. 31, 2022	Jul. 31, 2021
Current assets:
Cash and cash equivalents	$ 30,016	$ 24,908
Trade accounts receivable, net of allowance of $0 at January 31, 2022 and July 31, 2021	3,241	2,545
Prepaid expenses	285	111
Other current assets	108	49
Total current assets	33,650	27,613
Property and equipment, net	1,770	1,980
Intangible assets, net	6,488
Goodwill	2,228	2,262
Deferred tax assets, net	527	477
Other assets	318	5,145
Total assets	44,981	37,477
Current liabilities:
Trade accounts payable	417	585
Due to seller of Emojipedia	1,879
Accrued expenses and other current liabilities	2,769	1,771
Deferred revenues	1,782	1,821
Total current liabilities	6,847	4,177
Other liabilities	96	145
Total liabilities	6,943	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 January 31, 2022 and July 31, 2021	5	5
Class B common stock, $.01 par value; authorized shares—40,000; 13,949 shares issued and 13,875 shares outstanding at January 31, 2022, and 13,923 shares issued and 13,865 ouststanding at July 31, 2021	139	139
Additional paid-in capital	42,479	41,664
Accumulated other comprehensive loss	(1,077)	(997)
Accumulated deficit	(3,174)	(7,554)
Treasury stock, 74 shares at January 31, 2022 and 58 shares at July 31, 2021, at cost	(334)	(102)
Total Stockholders’ equity	38,038	33,155
Total liabilities and Stockholders’ equity	$ 44,981	$ 37,477

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jan. 31, 2022	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	13,949	13,923
Common stock, shares outstanding	13,875	13,865

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Jan. 31, 2022	Jan. 31, 2021
Income Statement [Abstract]
Revenues	$ 6,915	$ 5,314	$ 12,943	$ 9,076
Costs and expenses:
Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below)	342	313	652	617
Selling, general and administrative	3,106	2,159	5,838	4,165
Depreciation and amortization	360	324	758	683
Income from operations	3,107	2,518	5,695	3,611
Interest and other income, net	14	5	27	5
Net (loss) gain resulting from foreign exchange transactions	(85)	74	(95)	34
Income before income taxes	3,036	2,597	5,627	3,650
Provision for income taxes	711	319	1,247	327
Net Income	2,325	2,278	4,380	3,323
Other comprehensive (loss) income:
Changes in foreign currency translation adjustment	(222)	365	(80)	206
Total other comprehensive (loss) income	(222)	365	(80)	206
Total comprehensive income	$ 2,103	$ 2,643	$ 4,300	$ 3,529
Income per share attributable to Zedge, Inc. common stockholders:
Basic (in Dollars per share)	$ 0.16	$ 0.18	$ 0.31	$ 0.27
Diluted (in Dollars per share)	$ 0.16	$ 0.17	$ 0.29	$ 0.26
Weighted-average number of shares used in calculation of income per share:
Basic (in Shares)	14,297	12,633	14,289	12,412
Diluted (in Shares)	14,971	13,431	15,007	12,949

Condensed Consolidated Statem_2

Condensed 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	525,000	11,788,000
Stock-based compensation			237				237
Stock-based compensation (in Shares)		39,000
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	525,000	11,827,000
Exercise of stock options		$ 3	393				396
Exercise of stock options (in Shares)		312,000
Stock-based compensation			113				113
Stock-based compensation (in Shares)		8,000
Stock issued for matching contributions to the 401(k) Plan			39				39
Stock issued for matching contributions to the 401(k) Plan (in Shares)		7,000
Proceeds from sales of Class B Common Stock		$ 8	4,777				4,785
Proceeds from sales of Class B Common Stock (in Shares)		762,000
Foreign currency translation adjustment				365			365
Net income					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	525,000	12,916,000
Balance at Jul. 31, 2021	$ 5	$ 139	41,664	(997)	(7,554)	(102)	33,155
Balance (in Shares) at Jul. 31, 2021	525,000	13,923,000
Stock-based compensation			319				319
Stock-based compensation (in Shares)		12,000
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	525,000	13,935,000
Exercise of stock options			7				7
Exercise of stock options (in Shares)		3,000
Stock-based compensation			446				446
Stock-based compensation (in Shares)		6,000
Stock issued for matching contributions to the 401(k) Plan			43				43
Stock issued for matching contributions to the 401(k) Plan (in Shares)		5,000
Foreign currency translation adjustment				(222)			(222)
Net income					2,325		2,325
Balance at Jan. 31, 2022	$ 5	$ 139	$ 42,479	$ (1,077)	$ (3,174)	$ (334)	$ 38,038
Balance (in Shares) at Jan. 31, 2022	525,000	13,949,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Operating activities
Net income	$ 4,380	$ 3,323
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	758	683
Stock-based compensation	808	389
Deferred income taxes	(50)
Change in assets and liabilities:
Trade accounts receivable	(741)	(1,500)
Prepaid expenses and other current assets	(244)	156
Other assets	1	36
Trade accounts payable and accrued expenses	806	299
Deferred revenue	(39)	375
Net cash provided by operating activities	5,679	3,761
Investing activities
Capitalized software and technology development costs and purchase of equipment	(323)	(401)
Net cash used in investing activities	(323)	(401)
Financing activities
Proceeds from sales of Class B Common Stock		5,000
Payment of issuance costs		(215)
Repayment of insurance premium loan payable		(100)
Proceeds from exercise of stock options	7	396
Purchase of treasury stock in connection with restricted stock vesting	(232)	(26)
Net cash (used in) provided by financing activities	(225)	5,055
Effect of exchange rate changes on cash and cash equivalents	(23)	82
Net increase in cash and cash equivalents	5,108	8,497
Cash and cash equivalents at beginning of period	24,908	5,111
Cash and cash equivalents at end of period	30,016	13,608
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for income taxes	309	1
Cash payments made for interest expenses		2
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Acquistion of Emojipedia through release of escrow funds of $4,776, due to seller of $1,923 and legal fee of $12	6,711
Accounts receivable from certain Emojipedia websites collected by Seller	45
Note payable issued for insurance premium financing		$ 181

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) $ in Thousands	6 Months Ended
	Jan. 31, 2022USD ($)
Statement of Cash Flows [Abstract]
Escrow fund	$ 4,776
Due to seller	1,923
Legal fee	$ 12

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jan. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1—Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Zedge, Inc. and its subsidiaries, Zedge Europe AS and Zedge Lithuania UAB (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, 2022 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 fiscal 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 unaudited condensed consolidated financial statements in conformity with U.S. 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 (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) In October 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities From Contracts With Customers With the exception of the standard discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the six months ended January 31, 2022, 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-Net Intangible assets (see Note 16) are carried at cost, less accumulated amortization, unless a determination has been made that their value has been impaired. Intangible assets are 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 six months ended January 31, 2022 presented in the accompanying unaudited condensed consolidated financial statements. Related Party Transactions The Company has certain routine transactions with certain related parties. The related parties and nature of these transactions are described in Note 13 of the consolidated financial statements included in the Form 10-K for the fiscal year ended July 31, 2021.

Revenue

Revenue	6 Months Ended
	Jan. 31, 2022
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 and other revenues, including Emojipedia revenues. for the periods presented: Three Months Ended Six Months Ended January 31, January 31, 2022 2021 2022 2021 (in thousands) (in thousands) Advertising revenue $ 5,437 $ 4,399 $ 10,006 $ 7,385 Paid subscription revenue 953 809 1,913 1,459 Other revenues 525 106 1,024 232 Total revenues $ 6,915 $ 5,314 $ 12,943 $ 9,076 Contract Balances Deferred revenues The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. As of January 31, 2022, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,505,000, representing approximately 762,000 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 six months ended January 31, 2022 that was included in the deferred balance at July 31, 2021 was $1,218,000. 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, 2022, and July 31, 2021, the Company’s deferred revenue balance related to Zedge Premium was approximately $277,000 and $218,000, respectively. Total deferred revenues decreased by $39,000 from $1,821,000 at July 31, 2021 to $1,782,000 at January 31, 2022, primarily attributed to the decline in new subscriptions sales in the three and six months ended January 31, 2022 when compared to the prior periods. 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	6 Months Ended
	Jan. 31, 2022
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, 2022 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ 67 $ - $ 67 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 January 31, 2022 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	6 Months Ended
	Jan. 31, 2022
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 unaudited condensed 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 January 31, 2022, were as follows: Settlement Date U.S. Dollar NOK 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 $ 900,000 7,876,895 Settlement Date U.S. Dollar EUR 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 $ 900,000 755,436 The fair value of outstanding derivative instruments recorded in the accompanying unaudited condensed consolidated balance sheets were as follows: January 31, July 31, Assets and Liabilities Derivatives: Balance Sheet Location 2022 2021 Derivatives not designated or not qualifying as hedging instruments (in thousands) Foreign exchange forward contracts Accrued expenses and other current liabilities $ 67 $ 54 The effects of derivative instruments on the consolidated statements of comprehensive income were as follows: Thre Months Ended Six Months Ended Amount of Gain (Loss) Recognized on Derivatives 2022 2021 2022 2021 Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized (in thousands) (in thousands) Foreign exchange forward contracts Net gain (loss) resulting from foreign exchange transactions $ (127 ) $ 92 (117 ) $ 51

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jan. 31, 2022
Accrued Expenses and Other Current Liabilities [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, 2022 2021 (in thousands) Accrued vacation $ 474 $ 424 Accrued income taxes payable 1,250 264 Accrued payroll taxes 246 291 Accrued payroll and bonuses 211 374 Operating lease liability 91 86 Derivative liability 67 54 Due to artists 337 246 Other 93 32 Total accrued expenses and other current liabilities $ 2,769 $ 1,771

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jan. 31, 2022
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 was ratified by the Company’s stockholders at the Annual Meeting of Stockholders held on January 12, 2022. At January 31, 2022, there were 434,000 shares of Class B common 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 common 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 January 31, 2022 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 common stock to four employees vesting over a three to four year period. Unrecognized compensation expense related to these 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. 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 common 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. In November 2021 and January 2022, the Compensation Committee of the Company’s Board of Directors approved grants of options to purchase an aggregate of 12,500 shares of Class B common stock to three employees vesting over a four-year period. Unrecognized compensation expense related to these options grants was an aggregate of $97,000 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 fair value of each grant of stock options was estimated on the respective date of grant using a Black-Scholes valuation model (“BSM”) and the assumptions in the following table. Expected volatility is based on historical volatility of the Company’s Class B common stock. The Company uses the simplified method to estimate the expected term of the stock-based payments granted due to the limited history of the Company. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company used the following weighted average assumptions in its BSM pricing model: Six months ended January 31, 2022 2021 Expected term 6.0 years 6.0 years Volatility 92.6 % 91.8 % Risk free interest rate 1.4 % 0.5 % Dividends — — At January 31, 2022, unrecognized compensation expense related to unvested stock options was an aggregate of $719,000. 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% (or 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 the remaining 70% (or 203,924) of the DSUs is subject to continued service as well as a market condition (“DSUs with a market condition”). These DSUs will 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 with a market condition 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, the DSUs with a market condition shall expire. The DSUs with a market condition have been valued by the Company using a Monte Carlo simulation model. The Monte Carlo simulation methodology estimates the future equity value of Zedge on a risk-neutral basis. Their 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 DSUs with both service and market conditions 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 January 31, 2022, unrecognized compensation expense related to unvested DSUs was an aggregate of $2.3 million. In the six months ended January 31, 2022 and 2021, the Company purchased 4,450 shares and 5,625 shares of Class B common 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 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 were fully vested on grant. These shares had an aggregate grant date fair value of $30,000 and have been fully expensed accordingly. In our accompanying condensed consolidated statements of operations and comprehensive income, we recognized stock-based compensation of $446,000 and $765,000 for our employees and non-employees for the three and six months period ended January 31, 2022, respectively, and $113,000 and $350,000 for the three and six months period ended January 31, 2021, respectively. At January 31, 2022, unrecognized compensation expense related to unvested restricted stock awards was an aggregate of $222,000. In the six months ended January 31, 2022 and 2021, the Company purchased 11,665 shares and 12,005 shares respectively of Class B common 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	6 Months Ended
	Jan. 31, 2022
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 2022 2021 2022 2021 (in thousands) Basic weighted-average number of shares 14,297 12,633 14,289 12,412 Effect of dilutive securities: Stock options 584 698 624 472 Non-vested restricted Class B common stock 68 73 72 44 Deferred stock units 22 27 22 21 Diluted weighted-average number of shares 14,971 13,431 15,007 12,949 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 2022 2021 2022 2021 (in thousands) (in thousands) Stock options 65 14 57 215 Non-vested restricted Class B common stock - - - - Deferred stock units 289 - 230 - Shares excluded from the calculation of diluted earnings per share 354 14 287 215

Contingencies

Contingencies	6 Months Ended
	Jan. 31, 2022
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	6 Months Ended
	Jan. 31, 2022
Revolving Credit Facility [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, 2022 and July 31, 2021, 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, 2022, there were $1.8 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 $180,000.

Business Segment and Geographic

Business Segment and Geographic Information	6 Months Ended
	Jan. 31, 2022
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, other than goodwill and investment in private company, 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, 2022 $ 8,182 $ 345 $ 8,527 July 31, 2021 $ 1,900 $ 399 $ 2,299 Total assets: January 31, 2022 $ 40,121 $ 4,860 $ 44,981 July 31, 2021 $ 32,745 $ 4,732 $ 37,477

Operating Leases

Operating Leases	6 Months Ended
	Jan. 31, 2022
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 $195,000 and $243,000 at January 31, 2022 and July 31, 2021, respectively. There were no other material changes in the Company’s operating and finance leases in the three and six months ended January 31, 2022, 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	6 Months Ended
	Jan. 31, 2022
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 22.8%. The effective tax rate differed from the United States federal statutory tax rate of 21% due to certain factors with temporary impact primarily related to the equity compensation expenses. During the six months ended January 31, 2022, the Company accounted for a discrete item related to restricted stock windfall (vesting date fair market value above the grant date fair market value) which resulted in a net effective tax rate of 22.1%. Comparatively for the prior period, at July 31, 2020, the Company had available net operating loss (“NOL”) carryforwards from domestic operations of approximately $5.6 million for U.S. federal taxes and $5.9 million for state and local taxes, 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 and reduced its effective tax rate from 21% to 8.9% for the fiscal year ended July 31, 2021. As of January 31, 2022, the Company had $527,000 of deferred tax assets for which it has not established a valuation allowance, related to U.S. federal and state taxes and for a 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	6 Months Ended
	Jan. 31, 2022
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 had been approved and the loan, including accrued interest, had been deemed satisfied in full by the Small Business Administration to Western Alliance Bank. The Company therefore recorded a gain of 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	6 Months Ended
	Jan. 31, 2022
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 contemplated 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	6 Months Ended
	Jan. 31, 2022
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 has been determined to be $6.7 million of which $4.8 million was paid on August 2, 2021 with the remaining $1.9 million to be paid out in two equal installments on the six-month and twelve-month anniversary of the Closing. The final purchase price of $6.7 million was $194,000 lower than initially estimated. The assets purchased include emojipeida.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 asset purchase 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 and Comprehensive Income 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	6 Months Ended
	Jan. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 16—Intangible Assets The following table presents the detail of intangible assets as of July 31, 2021 and January 31, 2022 (in thousands): Estimated future amortization expense as of January 31, 2022 is as follows (in thousands): Remainder of fiscal 2022 $ 223 Fiscal 2023 447 Fiscal 2024 447 Fiscal 2025 447 Fiscal 2026 447 Thereafter 4,477 Total $ 6,488

Subsequent Event

Subsequent Event	6 Months Ended
	Jan. 31, 2022
Subsequent Events [Abstract]
Subsequent Event	Note 17—Subsequent Event On March 4, 2022, the Company entered into foreign exchange contracts as set forth below: Settlement Date U.S. Dollar NOK Jun-22 225,000 1,999,125 Jul-22 225,000 1,999,800 Aug-22 225,000 2,000,025 Sep-22 225,000 2,000,250 Oct-22 225,000 2,000,700 Nov-22 225,000 2,000,925 Total $ 1,350,000 12,000,825 Settlement Date U.S. Dollar EUR Jun-22 225,000 203,381 Jul-22 225,000 203,105 Aug-22 225,000 202,812 Sep-22 225,000 202,484 Oct-22 225,000 202,156 Nov-22 225,000 201,848 Total $ 1,350,000 1,215,787

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jan. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Zedge, Inc. and its subsidiaries, Zedge Europe AS and Zedge Lithuania UAB (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, 2022 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 fiscal 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 unaudited condensed consolidated financial statements in conformity with U.S. 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 (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) In October 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities From Contracts With Customers With the exception of the standard discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the six months ended January 31, 2022, 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	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-Net	Intangible Assets-Net Intangible assets (see Note 16) are carried at cost, less accumulated amortization, unless a determination has been made that their value has been impaired. Intangible assets are 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 six months ended January 31, 2022 presented in the accompanying unaudited condensed consolidated financial statements.
Related Party Transactions	Related Party Transactions The Company has certain routine transactions with certain related parties. The related parties and nature of these transactions are described in Note 13 of the consolidated financial statements included in the Form 10-K for the fiscal year ended July 31, 2021.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jan. 31, 2022
Revenue [Abstract]
Schedule of revenue by type of monetization mechanisms	Three Months Ended Six Months Ended January 31, January 31, 2022 2021 2022 2021 (in thousands) (in thousands) Advertising revenue $ 5,437 $ 4,399 $ 10,006 $ 7,385 Paid subscription revenue 953 809 1,913 1,459 Other revenues 525 106 1,024 232 Total revenues $ 6,915 $ 5,314 $ 12,943 $ 9,076

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jan. 31, 2022
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, 2022 Assets: Foreign exchange forward contracts $ - $ - $ - $ - Liabilities: Foreign exchange forward contracts $ - $ 67 $ - $ 67 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

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jan. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of outstanding contracts	Settlement Date U.S. Dollar NOK 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 $ 900,000 7,876,895 Settlement Date U.S. Dollar EUR 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 $ 900,000 755,436
Schedule of fair value of outstanding derivative instruments	January 31, July 31, Assets and Liabilities Derivatives: Balance Sheet Location 2022 2021 Derivatives not designated or not qualifying as hedging instruments (in thousands) Foreign exchange forward contracts Accrued expenses and other current liabilities $ 67 $ 54
Schedule of derivative instruments on consolidated statements of comprehensive income	Thre Months Ended Six Months Ended Amount of Gain (Loss) Recognized on Derivatives 2022 2021 2022 2021 Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized (in thousands) (in thousands) Foreign exchange forward contracts Net gain (loss) resulting from foreign exchange transactions $ (127 ) $ 92 (117 ) $ 51

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jan. 31, 2022
Accrued Expenses and Other Current Liabilities [Abstract]
Schedule of accrued expenses and other current liabilities	January 31, July 31, 2022 2021 (in thousands) Accrued vacation $ 474 $ 424 Accrued income taxes payable 1,250 264 Accrued payroll taxes 246 291 Accrued payroll and bonuses 211 374 Operating lease liability 91 86 Derivative liability 67 54 Due to artists 337 246 Other 93 32 Total accrued expenses and other current liabilities $ 2,769 $ 1,771

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jan. 31, 2022
Share-based Payment Arrangement [Abstract]
Schedule of weighted average assumptions in its BSM pricing model	Six months ended January 31, 2022 2021 Expected term 6.0 years 6.0 years Volatility 92.6 % 91.8 % Risk free interest rate 1.4 % 0.5 % Dividends — —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jan. 31, 2022
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 Six Months Ended 2022 2021 2022 2021 (in thousands) Basic weighted-average number of shares 14,297 12,633 14,289 12,412 Effect of dilutive securities: Stock options 584 698 624 472 Non-vested restricted Class B common stock 68 73 72 44 Deferred stock units 22 27 22 21 Diluted weighted-average number of shares 14,971 13,431 15,007 12,949
Schedule of dilutive earnings per share computations	Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) (in thousands) Stock options 65 14 57 215 Non-vested restricted Class B common stock - - - - Deferred stock units 289 - 230 - Shares excluded from the calculation of diluted earnings per share 354 14 287 215

Business Segment and Geograph_2

Business Segment and Geographic Information (Tables)	6 Months Ended
	Jan. 31, 2022
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: January 31, 2022 $ 8,182 $ 345 $ 8,527 July 31, 2021 $ 1,900 $ 399 $ 2,299 Total assets: January 31, 2022 $ 40,121 $ 4,860 $ 44,981 July 31, 2021 $ 32,745 $ 4,732 $ 37,477

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jan. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of estimated future amortization expense	Remainder of fiscal 2022 $ 223 Fiscal 2023 447 Fiscal 2024 447 Fiscal 2025 447 Fiscal 2026 447 Thereafter 4,477 Total $ 6,488

Subsequent Event (Tables)

Subsequent Event (Tables)	6 Months Ended
	Jan. 31, 2022
Subsequent Events [Abstract]
Schedule of foreign exchange forward contracts	Settlement Date U.S. Dollar NOK Jun-22 225,000 1,999,125 Jul-22 225,000 1,999,800 Aug-22 225,000 2,000,025 Sep-22 225,000 2,000,250 Oct-22 225,000 2,000,700 Nov-22 225,000 2,000,925 Total $ 1,350,000 12,000,825 Settlement Date U.S. Dollar EUR Jun-22 225,000 203,381 Jul-22 225,000 203,105 Aug-22 225,000 202,812 Sep-22 225,000 202,484 Oct-22 225,000 202,156 Nov-22 225,000 201,848 Total $ 1,350,000 1,215,787

Revenue (Details)

Revenue (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2022	Jan. 31, 2022	Jul. 31, 2021
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, 2022, the Company’s deferred revenue balance related to paid subscriptions was approximately $1,505,000, representing approximately 762,000 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			$ 1,218,000
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		$ 277,000	218,000
Zedge Premium [Member]
Revenue (Details) [Line Items]
Deferred revenues decreased	$ 1,782,000
Zedge Premium [Member] | Minimum [Member]
Revenue (Details) [Line Items]
Deferred revenues decreased			39,000
Zedge Premium [Member] | Maximum [Member]
Revenue (Details) [Line Items]
Deferred revenues decreased			$ 1,821,000

Revenue (Details) - Schedule of

Revenue (Details) - Schedule of revenue by type of monetization mechanisms - Disaggregation of Revenue [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Jan. 31, 2022	Jan. 31, 2021
Revenue (Details) - Schedule of revenue by type of monetization mechanisms [Line Items]
Total Revenues	$ 6,915	$ 5,314	$ 12,943	$ 9,076
Advertising revenue [Member]
Revenue (Details) - Schedule of revenue by type of monetization mechanisms [Line Items]
Total Revenues	5,437	4,399	10,006	7,385
Paid subscription revenue [Member]
Revenue (Details) - Schedule of revenue by type of monetization mechanisms [Line Items]
Total Revenues	953	809	1,913	1,459
Other revenues [Member]
Revenue (Details) - Schedule of revenue by type of monetization mechanisms [Line Items]
Total Revenues	$ 525	$ 106	$ 1,024	$ 232

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, 2022	Jul. 31, 2021
Assets:
Foreign exchange forward contracts
Liabilities:
Foreign exchange forward contracts		67	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]	67	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 contracts - 6 months ended Jan. 31, 2022 € in Thousands, kr in Thousands, $ in Thousands	USD ($)	NOK (kr)	EUR (€)
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	$ 900,000		€ 755,436
Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	900,000	kr 7,876,895
Feb-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	225,000	1,967,896
Mar-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	225,000	1,968,684
Apr-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	225,000	1,969,696
May-22 [Member] | Western Alliance Bank [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	225,000	kr 1,970,619
Feb-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	225,000		189,037
Mar-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	225,000		188,926
Apr-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	225,000		188,800
May-22 [Member]
Derivative Instruments (Details) - Schedule of outstanding contracts [Line Items]
Amount	$ 225,000		€ 188,673

Derivative Instruments (Detai_2

Derivative Instruments (Details) - Schedule of fair value of outstanding derivative instruments - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2021	Jan. 31, 2022
Schedule of fair value of outstanding derivative instruments [Abstract]
Balance Sheet Location	Accrued expenses and other current liabilities
Foreign exchange forward contracts	$ 54	$ 67

Derivative Instruments (Detai_3

Derivative Instruments (Details) - Schedule of derivative instruments on consolidated statements of comprehensive income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Jan. 31, 2022	Jan. 31, 2021
Schedule of derivative instruments on consolidated statements of comprehensive income [Abstract]
Location of Gain (Loss) Recognized on Derivatives			Net gain (loss) resulting from foreign exchange transactions
Foreign exchange forward contracts	$ (127)	$ 92	$ (117)	$ 51

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jan. 31, 2022	Jul. 31, 2021
Schedule of accrued expenses and other current liabilities [Abstract]
Accrued vacation	$ 474	$ 424
Accrued income taxes payable	1,250	264
Accrued payroll taxes	246	291
Accrued payroll and bonuses	211	374
Operating lease liability	91	86
Derivative liability	67	54
Due to artists	337	246
Other	93	32
Total accrued expenses and other current liabilities	$ 2,769	$ 1,771

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	Nov. 10, 2021	Sep. 07, 2021	Jan. 31, 2022	Nov. 30, 2021	Jan. 31, 2021	Dec. 31, 2020	Nov. 30, 2020	Nov. 18, 2020	Oct. 31, 2020	Jan. 31, 2022	Oct. 31, 2021	Jan. 31, 2021	Jan. 31, 2022	Jan. 31, 2021
Stock-Based Compensation (Details) [Line Items]
Unrecognized compensation expense			$ 97,000	$ 97,000		$ 141,000
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 common 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													$ 719,000
Employees and consultants share		291,320
Vesting shares, description		Vesting of 30% (or 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.
Amortized on a straight-line basis							$ 350,000
Aggregate grant date value									$ 30,000
Stock based compensation										$ 446,000		$ 113,000	765,000	$ 350,000
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 January 31, 2022 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													2,300,000
Unrecognized compensation expense													$ 222,000
Vesting percentage, description													Vesting of the remaining 70% (or 203,924) of the DSUs is subject to continued service as well as a market condition (“DSUs with a market condition”). These DSUs will 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 with a market condition 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, the DSUs with a market condition shall expire. The DSUs with a market condition have been valued by the Company using a Monte Carlo simulation model. The Monte Carlo simulation methodology estimates the future equity value of Zedge on a risk-neutral basis. Their 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 DSUs with both service and market conditions 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													$ 1,300,000
Common Class B [Member]
Stock-Based Compensation (Details) [Line Items]
Shares available for grant	325,000		434,000							434,000			434,000
Aggregate shares	1,846,000		12,500	12,500	37,000	37,000							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 common 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 January 31, 2022 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 common stock to four employees vesting over a three to four year period. Unrecognized compensation expense related to these 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. 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 common 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													$ 72,000	$ 8,000
Restricted shares							92,593		10,619
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
Common Class B [Member] | Restricted Stock Awards [Member]
Stock-Based Compensation (Details) [Line Items]
Shares purchased from employees													11,665	12,005
Shares purchased from employees, value													$ 160,000	$ 18,000

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - Schedule of weighted average assumptions in its BSM pricing model - USD ($)	6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Schedule of weighted average assumptions in its BSM pricing model [Abstract]
Expected term	6 years	6 years
Volatility	92.60%	91.80%
Risk free interest rate	1.40%	0.50%
Dividends (in Dollars)

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		6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Jan. 31, 2022	Jan. 31, 2021
Earnings Per Share (Details) - Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings per share [Line Items]
Basic weighted-average number of shares	14,297,000	12,633,000	14,289,000	12,412,000
Effect of dilutive securities:
Diluted weighted-average number of shares	14,971,000	13,431,000	15,007,000	12,949,000
Stock options [Member]
Effect of dilutive securities:
Diluted weighted-average number of shares	584,000	698,000	624,000	472,000
Non-vested restricted Class B common stock [Member]
Effect of dilutive securities:
Diluted weighted-average number of shares	68,000	73,000	72,000	44,000
Deferred stock units [Member]
Effect of dilutive securities:
Diluted weighted-average number of shares	22,000	27,000	22,000	21,000

Earnings Per Share (Details) _2

Earnings Per Share (Details) - Schedule of dilutive earnings per share computations - shares	3 Months Ended		6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Jan. 31, 2022	Jan. 31, 2021
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares excluded from the calculation of diluted earnings per share	354,000	14,000	287,000	215,000
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	14,000	57,000	215,000
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
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	289,000		230,000

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - USD ($)	1 Months Ended		6 Months Ended
	Nov. 16, 2016	Sep. 27, 2016	Jan. 31, 2022
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 January 31, 2022, there were $1.8 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 $180,000.
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	6 Months Ended	12 Months Ended
	Jan. 31, 2022	Jul. 31, 2021
Long-lived assets, net:
United States	$ 8,182	$ 1,900
Foreign	345	399
Total	8,527	2,299
Total assets:
United States	40,121	32,745
Foreign	4,860	4,732
Total	$ 44,981	$ 37,477

Operating Leases (Details)

Operating Leases (Details) - USD ($)	Jan. 31, 2022	Jul. 31, 2021
Leases [Abstract]
Other assets	$ 195,000	$ 243,000

Provision for Income Taxes (Det

Provision for Income Taxes (Details) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
	Jul. 31, 2020	Jan. 31, 2022	Jul. 31, 2022
Provision for Income Taxes (Details) [Line Items]
Effective tax rate		22.10%
U.S. federal net operating loss carryforwards from domestic operations (in Dollars)	$ 5,600,000
State net operating loss carryforwards from domestic operations (in Dollars)	5,900,000
Foreign taxable income (in Dollars)	$ 433,000
Deferred tax assets (in Dollars)		$ 527,000
Forecast [Member]
Provision for Income Taxes (Details) [Line Items]
Effective tax rate			22.80%
Federal statutory tax rate			21.00%
Maximum [Member]
Provision for Income Taxes (Details) [Line Items]
Federal statutory tax rate		21.00%
Minimum [Member]
Provision for Income Taxes (Details) [Line Items]
Federal statutory tax rate		8.90%

Loans Payable (Details)

Loans Payable (Details) - USD ($)	Aug. 01, 2020	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	6 Months Ended
	Mar. 16, 2021	Jan. 31, 2022
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
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 ($)	1 Months Ended	6 Months Ended
	Aug. 02, 2021	Jan. 31, 2022
Asset Acquisition [Abstract]
Total purchase price	$ 6,700,000
Purchase price	4,800,000	$ 6,700,000
Paid in installment	$ 1,900,000
Initial estimated		$ 194,000
Estimated useful lives		15 years

Intangible Assets (Details) - S

Intangible Assets (Details) - Schedule of estimated future amortization expense $ in Thousands	Jan. 31, 2022USD ($)
Schedule of estimated future amortization expense [Abstract]
Remainder of fiscal 2022	$ 223
Fiscal 2023	447
Fiscal 2024	447
Fiscal 2025	447
Fiscal 2026	447
Thereafter	4,477
Total	$ 6,488

Subsequent Event (Details) - Sc

Subsequent Event (Details) - Schedule of foreign exchange forward contracts - Mar. 04, 2022 - Subsequent Event [Member] € in Thousands, kr in Thousands, $ in Thousands	USD ($)	NOK (kr)	EUR (€)
Capital Requirements on Foreign Financial Institutions [Line Items]
Settlement amount	$ 1,350,000	kr 12,000,825	€ 1,215,787
Jun-22 [Member]
Capital Requirements on Foreign Financial Institutions [Line Items]
Settlement amount	225,000	1,999,125	203,381
Jul-22 [Member]
Capital Requirements on Foreign Financial Institutions [Line Items]
Settlement amount	225,000	1,999,800	203,105
Aug-22 [Member]
Capital Requirements on Foreign Financial Institutions [Line Items]
Settlement amount	225,000	2,000,025	202,812
Sep-22 [Member]
Capital Requirements on Foreign Financial Institutions [Line Items]
Settlement amount	225,000	2,000,250	202,484
Oct-22 [Member]
Capital Requirements on Foreign Financial Institutions [Line Items]
Settlement amount	225,000	2,000,700	202,156
Nov-22 [Member]
Capital Requirements on Foreign Financial Institutions [Line Items]
Settlement amount	$ 225,000	kr 2,000,925	€ 201,848