Zedge (ZDGE) 10-Q 11 Jun 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Apr. 30, 2024	Jun. 07, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Apr. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Information [Line Items]
Entity Registrant Name	ZEDGE, INC.
Entity Central Index Key	0001667313
Entity File Number	1-37782
Entity Tax Identification Number	26-3199071
Entity Incorporation, State or Country Code	DE
Current Fiscal Year End Date	--07-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Contact Personnel [Line Items]
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
Entity Phone Fax Numbers [Line Items]
City Area Code	(330)
Local Phone Number	577-3424
Entity Listings [Line Items]
Title of 12(b) Security	Class B common stock, par value $.01 per share
Trading Symbol	ZDGE
Security Exchange Name	NYSE
Class A common stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		524,775
Class B common stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		13,946,064

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Current assets:
Cash and cash equivalents	$ 19,925	$ 18,125
Trade accounts receivable	3,325	2,883
Prepaid expenses and other receivables	374	569
Total current assets	23,624	21,577
Property and equipment, net	2,357	2,186
Intangible assets, net	5,481	18,709
Goodwill	1,802	1,961
Deferred tax assets, net	4,492	1,842
Other assets	383	556
Total assets	38,139	46,831
Current liabilities:
Trade accounts payable	1,155	669
Accrued expenses and other current liabilities	3,272	2,676
Deferred revenues	1,998	2,414
Total current liabilities	6,425	5,759
Term loan, net of deferred financing costs		1,985
Deferred revenues--non-current	677
Other liabilities	135	223
Total liabilities	7,237	7,967
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $.01 par value; authorized shares—2,400; no shares issued and outstanding
Additional paid-in capital	47,795	46,122
Accumulated other comprehensive loss	(1,878)	(1,537)
Accumulated deficit	(13,074)	(3,942)
Treasury stock, 899 shares at April 30, 2024 and 833 shares at July 31, 2023, at cost	(2,095)	(1,930)
Total stockholders’ equity	30,902	38,864
Total liabilities and stockholders’ equity	38,139	46,831
Class A Common Stock
Stockholders’ equity:
Common stock value	5	5
Class B Common Stock
Stockholders’ equity:
Common stock value	$ 149	$ 146

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands	Apr. 30, 2024	Jul. 31, 2023
Preferred stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,400	2,400
Preferred stock, shares issued
Preferred stock, shares outstanding
Treasury stock, shares	899	833
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	14,866	14,634
Common stock, shares outstanding	13,967	13,801

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Income Statement [Abstract]
Revenues	$ 7,658	$ 6,726	$ 22,510	$ 20,609
Costs and expenses:
Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below)	455	498	1,399	1,762
Selling, general and administrative	6,752	5,016	18,773	16,713
Depreciation and amortization	583	897	2,120	2,505
Impairment of intangible assets			11,958
Impairment of goodwill		8,727		8,727
Change in fair value of contingent consideration				(1,943)
Loss from operations	(132)	(8,412)	(11,740)	(7,155)
Interest and other income, net	188	84	434	196
Net loss resulting from foreign exchange transactions	(80)	(84)	(223)
Loss before income taxes	(24)	(8,412)	(11,529)	(6,959)
Income tax benefit	(137)	(718)	(2,397)	(702)
Net income (loss)	113	(7,694)	(9,132)	(6,257)
Other comprehensive loss:
Changes in foreign currency translation adjustment	(224)	(214)	(341)	(321)
Total other comprehensive loss	(224)	(214)	(341)	(321)
Total comprehensive loss	$ (111)	$ (7,908)	$ (9,473)	$ (6,578)
Income (loss) per share attributable to Zedge, Inc. common stockholders:
Basic (in Dollars per share)	$ 0.01	$ (0.55)	$ (0.65)	$ (0.44)
Diluted (in Dollars per share)	$ 0.01	$ (0.55)	$ (0.65)	$ (0.44)
Weighted-average number of shares used in calculation of income (loss) per share:
Basic (in Shares)	14,191	14,017	14,077	14,221
Diluted (in Shares)	14,542	14,017	14,077	14,221

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock Class A	Common Stock Class B	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock	Total
Balance at Jul. 31, 2022	$ 5	$ 139	$ 43,609	$ (1,391)	$ 2,160	$ (334)	$ 44,188
Balance (in Shares) at Jul. 31, 2022	525	13,951				74
Stock-based compensation		$ 1	589				590
Stock-based compensation (in Shares)		30
Purchase of treasury stock						$ (310)	(310)
Purchase of treasury stock (in Shares)						130
Foreign currency translation adjustment				(259)			(259)
Net income (loss)					(169)		(169)
Balance at Oct. 31, 2022	$ 5	$ 140	44,198	(1,650)	1,991	$ (644)	44,040
Balance (in Shares) at Oct. 31, 2022	525	13,981				204
Balance at Jul. 31, 2022	$ 5	$ 139	43,609	(1,391)	2,160	$ (334)	44,188
Balance (in Shares) at Jul. 31, 2022	525	13,951				74
Net income (loss)							(6,257)
Balance at Apr. 30, 2023	$ 5	$ 147	45,558	(1,712)	(4,097)	$ (1,788)	38,113
Balance (in Shares) at Apr. 30, 2023	525	14,674				761
Balance at Oct. 31, 2022	$ 5	$ 140	44,198	(1,650)	1,991	$ (644)	44,040
Balance (in Shares) at Oct. 31, 2022	525	13,981				204
Restricted stock issuance in connection with GuruShots acquisition		$ 6	(6)
Restricted stock issuance in connection with GuruShots acquisition (in Shares)		617
Stock-based compensation		$ 1	787				788
Stock-based compensation (in Shares)		76
Purchase of treasury stock						$ (679)	(679)
Purchase of treasury stock (in Shares)						318
Foreign currency translation adjustment				152			152
Net income (loss)					1,606		1,606
Balance at Jan. 31, 2023	$ 5	$ 147	44,979	(1,498)	3,597	$ (1,323)	45,907
Balance (in Shares) at Jan. 31, 2023	525	14,674				522
Stock-based compensation			579				579
Purchase of treasury stock						$ (465)	(465)
Purchase of treasury stock (in Shares)						239
Foreign currency translation adjustment				(214)			(214)
Net income (loss)					(7,694)		(7,694)
Balance at Apr. 30, 2023	$ 5	$ 147	45,558	(1,712)	(4,097)	$ (1,788)	38,113
Balance (in Shares) at Apr. 30, 2023	525	14,674				761
Balance at Jul. 31, 2023	$ 5	$ 146	46,122	(1,537)	(3,942)	$ (1,930)	38,864
Balance (in Shares) at Jul. 31, 2023	525	14,634				833
Exercise of stock options			3				3
Exercise of stock options (in Shares)		2
Stock-based compensation		$ 1	506				507
Stock-based compensation (in Shares)		33
Purchase of treasury stock						$ (13)	(13)
Purchase of treasury stock (in Shares)	0	0				6
Foreign currency translation adjustment				(367)			(367)
Net income (loss)					(15)		(15)
Balance at Oct. 31, 2023	$ 5	$ 147	46,631	(1,904)	(3,957)	$ (1,943)	38,979
Balance (in Shares) at Oct. 31, 2023	525	14,669				839
Balance at Jul. 31, 2023	$ 5	$ 146	46,122	(1,537)	(3,942)	$ (1,930)	38,864
Balance (in Shares) at Jul. 31, 2023	525	14,634				833
Net income (loss)							(9,132)
Balance at Apr. 30, 2024	$ 5	$ 149	47,795	(1,878)	(13,074)	$ (2,095)	30,902
Balance (in Shares) at Apr. 30, 2024	525	14,866				899
Balance at Oct. 31, 2023	$ 5	$ 147	46,631	(1,904)	(3,957)	$ (1,943)	38,979
Balance (in Shares) at Oct. 31, 2023	525	14,669				839
Stock-based compensation		$ 1	682				683
Stock-based compensation (in Shares)		87
Foreign currency translation adjustment				250			250
Net income (loss)					(9,230)		(9,230)
Balance at Jan. 31, 2024	$ 5	$ 148	47,313	(1,654)	(13,187)	$ (1,943)	30,682
Balance (in Shares) at Jan. 31, 2024	525	14,756				839
Stock-based compensation		$ 1	482				483
Stock-based compensation (in Shares)		110
Purchase of treasury stock						$ (152)	(152)
Purchase of treasury stock (in Shares)						60
Foreign currency translation adjustment				(224)			(224)
Net income (loss)					113		113
Balance at Apr. 30, 2024	$ 5	$ 149	$ 47,795	$ (1,878)	$ (13,074)	$ (2,095)	$ 30,902
Balance (in Shares) at Apr. 30, 2024	525	14,866				899

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Apr. 30, 2024	Oct. 31, 2023	Apr. 30, 2023	Oct. 31, 2022	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2023
Operating activities
Net loss	$ 113	$ (15)	$ (7,694)	$ (169)	$ (9,132)	$ (6,257)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation					42	44
Amortization of intangible assets					1,270	1,738
Amortization of capitalized software and technology development costs					808	723
Amortization of deferred financing costs					15	2
Stock-based compensation	482		578		1,673	1,957
Impairment charge of intangible assets					11,958
Impairment of investment in privately-held company					50
Write-off from impairment of goodwill			8,727			8,727	$ 8,727
Change in fair value of contingent consideration						(1,943)
Deferred income taxes					(2,650)	(955)
Change in assets and liabilities:
Trade accounts receivable					(442)	(645)
Prepaid expenses and other current assets					195	(501)
Other assets					34	50
Trade accounts payable and accrued expenses					1,073	653
Deferred revenue					261	(850)
Net cash provided by operating activities					5,155	2,743
Investing activities
Final payment for asset acquisitions						(962)
Capitalized software and technology development costs					(993)	(1,110)
Purchase of property and equipment					(35)	(57)
Net cash used in investing activities					(1,028)	(2,129)
Financing activities
Prepayment of term loan					(2,000)
Proceeds from term loan payable						2,000
Payment of deferred financing costs						(18)
Proceeds from exercise of stock options					3
Purchase of treasury stock in connection with share buyback program and stock awards vesting					(165)	(1,454)
Net cash (used in) provided by financing activities					(2,162)	528
Effect of exchange rate changes on cash and cash equivalents					(165)	(160)
Net increase in cash and cash equivalents					1,800	982
Cash and cash equivalents at beginning of period		$ 18,125		$ 17,085	18,125	17,085
Cash and cash equivalents at end of period	$ 19,925		$ 18,067		19,925	18,067	$ 18,067
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for income taxes					80	711
Cash payments made for interest expenses					$ 66	$ 72

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Apr. 30, 2024
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note 1—Basis of Presentation and Summary of Significant Accounting Policies Description of Business Zedge, Inc. builds digital marketplaces and friendly competitive games around content that people use to express themselves. Our leading products include Zedge Ringtones and Wallpapers, which we refer to as our Zedge App, a freemium digital content marketplace offering mobile phone wallpapers, video wallpapers, ringtones, and notification sounds as well as pAInt, a generative AI wallpaper maker, GuruShots, a skill-based photo challenge game, and Emojipedia, the #1 trusted source for ‘all things emoji’. Our vision is to enable and connect creators who enjoy friendly competitions with a community of prospective consumers in order to drive commerce. Except where the context clearly indicates otherwise, the terms the “Company,” “Zedge” “we,” “us” or “our” refer to Zedge, Inc. and its consolidated subsidiaries. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Zedge, Inc. and its subsidiaries: GuruShots Ltd. (“GuruShots”); 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 8 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 nine months ended April 30, 2024 and 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2024 or any other period. The balance sheet at July 31, 2023 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, 2023 (the “2023 Form 10-K”), 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 2023 refers to the fiscal year ended July 31, 2023). Reportable Segments Effective August 1, 2022, we revised the presentation of segment information to reflect our acquisition of GuruShots. As such, we now report operating results through two reportable segments: Zedge Marketplace and GuruShots, as further discussed in Note 11, Segment and Geographic Information 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 economic environment due to various global events. 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 Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The guidance in ASU 2023-07 seeks to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU require a public entity to disclose the following: significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; an amount for other segment items by reportable segment and a description of its composition; and the title and position of the CODM and how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This ASU requires public entities to provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. ASU 2023-07 clarifies that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 is a requirement for additional disclosure and is not expected to materially impact the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance in this ASU enhances the transparency and decision functionality of income tax disclosures to provide investors information to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flow. The amendments in this ASU require public entities to disclose the following specific categories in the rate reconciliation by both percentages and reporting currency amounts: the effect of state and local income tax, net of federal (national) income tax, foreign tax effects, effects of changes in tax laws or rates enacted in the current period, effects of cross-border tax laws, tax credits, changes in valuation allowances, nontaxable or nondeductible items and changes in unrecognized tax benefits. The amendments in ASU 2023-09 also require public entities to provide additional information for reconciling items that meet the qualitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pre-tax income (loss) by the applicable statutory income tax rate). The ASU requires reporting entities to annually disclose the year-to-date amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign localities. The amendments in this ASU should be applied on a prospective basis and retrospective application is permitted. For public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued. ASU 2023-09 is a requirement for additional disclosure and is not expected to materially impact the consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards, which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of FASB Accounting Standards Codification (FASB ASC) 718, Compensation-Stock Compensation. For public business entities, ASU 2024-01 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued. We are currently evaluating the impact of this accounting standard, but do not expect it to have a material impact on our consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, Codification Improvements-Amendments to Remove References to the Concepts Statements, which removes references to various FASB Concepts Statements. Note that this ASU finalizes amendments proposed in Section A of Proposed ASU No. 2019-800, Codification Improvements, issued in November 2019. For public business entities, ASU 2024-02 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued. We are currently evaluating the impact of this accounting standard, but do not expect it to have a material impact on our consolidated financial statements. Related Party Transactions The Company was formerly a majority-owned subsidiary of IDT Corporation (“IDT”). On June 1, 2016, IDT’s interest in the Company was spun-off by IDT to IDT’s stockholders and the Company became an independent public-held company. IDT charges the Company for services it provides, and the Company charges IDT for services it provides, pursuant to a Transition Services Agreement (“TSA”). The Company is party to a consulting agreement with Activist Artist Management, LLC (“Activist”), which assists the Company in strategic business development. A member of the Company’s Board of Directors owns a significant minority stake in Activist. Transactions with these related parties did not have a material impact to the consolidated balance sheets as of April 30, 2024 or July 31, 2023, or the consolidated statements of operations and comprehensive loss for the three and nine months ended April 30, 2024 and 2023.

Revenue

Revenue	9 Months Ended
	Apr. 30, 2024
Revenue [Abstract]
Revenue	Note 2—Revenue Disaggregation of Revenue The following table presents revenue disaggregated by segment and type (in thousands): Three Months Ended Nine Months Ended April 30, April 30, 2024 2023 2024 2023 Zedge Marketplace Advertising revenue $ 5,461 $ 4,572 $ 15,882 $ 13,691 Paid subscription revenue 1,122 832 3,186 2,598 Other revenues 206 232 710 652 Total Zedge Marketplace revenue 6,789 5,636 19,778 16,941 GuruShots Digital goods and services 869 1,090 2,732 3,668 Total revenue $ 7,658 $ 6,726 $ 22,510 $ 20,609 Contract Balances The Company enters into contracts with its customers, which may give rise to contract liabilities (deferred revenue) and contract assets (unbilled revenue). The payment terms and conditions within the Company’s contracts vary by products or services purchased, substantially all of which are due in less than one year. When the timing of revenue recognition differs from the timing of payments made by customers, the Company recognizes deferred revenue (when customer payment is received in advance of performance). The Company does not have unbilled revenue (when the Company’s performance precedes the billing date). Deferred revenues On April 1, 2022, the AppLovin Corporation paid the Company a one-time integration bonus of $2 million for migrating to their mediation platform. This amount has been amortized over an estimated service period of 24 months that ended March 31, 2024. The Company’s deferred revenue balance related to this bonus was $0 and approximately $0.7 million as of April 30, 2024 and July 31, 2023, respectively. The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. The Company’s deferred revenue balance for paid subscriptions was approximately $2.4 million related to approximately 654,000 active subscribers, and approximately $1.5 million, related to approximately 647,000 active subscribers, as of April 30, 2024 and July 31, 2023, respectively. 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 (“Breakage”). As of April 30, 2024, and July 31, 2023, the Company’s deferred revenue balance related to Zedge Premium was approximately $258,000 and $255,000, respectively. The amount of deferred revenue recognized in the nine months ended April 30, 2024 that was included in the deferred revenue balance at July 31, 2023 was $2.1 million. Significant Judgments The advertising networks and advertising exchanges to which the Company sells its inventory track and report the impressions and revenues 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 revenues 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 and the App Store 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, except for the new lifetime subscriptions we rolled out in August 2023. These costs are included in the selling, general and administrative expenses of the condensed consolidated statements of operations and comprehensive loss.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Apr. 30, 2024
Fair Value Measurements [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 (in thousands): Level 1 Level 2 Level 3 Total April 30, 2024 Liabilities: Foreign exchange forward contracts $ - $ 142 $ - $ 142 July 31, 2023 Assets: Foreign exchange forward contracts $ - $ 19 $ - $ 19 (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 Contingent Consideration Contingent consideration related to business combinations are classified within Level 3 of the fair value hierarchy as the determination of fair value uses considerable judgement and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. The following table provides a rollforward of the contingent consideration related to our acquisition of GuruShots (in thousands): Balance at July 31, 2022 $ 1,943 Change in fair value (1,943 ) Balance at April 30, 2023 $ 0 The overall fair value of the contingent consideration decreased by $1,943,000 during the nine months ended April 30, 2023, due primarily to the decrease in the likelihood that certain contingent milestones would be achieved. Fair Value of Other Financial Instruments Fair value of the outstanding foreign exchange forward contracts are marked to market price at the end of each measurement period. The Company’s other financial instruments at April 30, 2024 and July 31, 2023 included trade accounts receivable and trade accounts payable. The carrying amounts of other assets and liabilities such as prepaid expenses, trade accounts receivable and trade accounts payable approximated fair value due to their short-term nature.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Apr. 30, 2024
Derivative Instruments [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 (“WAB”) allowing the Company to enter into foreign exchange contracts under its revolving credit facility with the bank (see Note 10 Term Loan and Revolving Credit Facility The outstanding contracts at April 30, 2024, were as follows: Settlement Date U.S. Dollar Amount NOK Amount May-24 225,000 2,237,738 Jun-24 225,000 2,357,321 Jul-24 225,000 2,355,836 Aug-24 225,000 2,354,450 Sep-24 225,000 2,353,262 Oct-24 225,000 2,352,197 Nov-24 225,000 2,349,801 Total 1,575,000 16,360,605 Settlement Date U.S. Dollar Amount EUR Amount May-24 225,000 205,142 Jun-24 250,000 227,975 Jul-24 250,000 227,678 Aug-24 250,000 227,337 Sep-24 250,000 227,019 Oct-24 250,000 226,679 Nov-24 250,000 226,296 Total 1,725,000 1,568,126 The fair value of outstanding derivative instruments recorded in the accompanying unaudited condensed consolidated balance sheets were as follows: April 30, July 31, (in thousands) 2024 2023 Assets and Liabilities Derivatives: Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Other current assets $ - $ 19 Foreign exchange forward contracts Accrued expenses and other current liabilities $ 142 $ - The effects of derivative instruments on the condensed consolidated statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended April 30, Nine Months Ended April 30, Amount of Loss Recognized on Derivatives 2024 2023 2024 2023 Derivatives not designated or not qualifying as hedging instruments Location of loss recognized on derivatives Foreign exchange forward contracts Net loss resulting from foreign exchange transactions $ (145 ) $ (122 ) (296 ) $ (58 )

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Apr. 30, 2024
Intangible Assets and Goodwill [Abstract]
Intangible Assets and Goodwill	Note 5—Intangible Assets and Goodwill Intangible assets are initially recorded at fair value and stated net of accumulated amortization and impairments. The Company amortizes its intangible assets that have finite lives using either the straight-line method, or if reliably determinable, based on the pattern in which the economic benefit of the asset is expected to be utilized. Amortization is recorded over the estimated useful lives ranging from 5 to 15 years. The Company evaluates the recoverability of its definite lived intangible assets whenever events or changes in circumstances or business conditions indicate that the carrying value of these assets may not be recoverable based on expectations of future undiscounted cash flows for each asset group. If the carrying value of an asset or asset group exceeds its undiscounted cash flows, the Company estimates the fair value of the assets, generally utilizing a discounted cash flow analysis based on the present value of after-tax cash flows to be generated by the assets using a risk-adjusted discount rate. To estimate the fair value of the assets, the Company uses market participant assumptions pursuant to ASC 820, Fair Value Measurements. During the second quarter of fiscal 2024, in connection with its company-wide strategic planning process as well as evaluating the current operating performance of its GuruShots reporting unit, including product enhancement and marketing, the Company reassessed its short-term and long-term commercial plans for this business. The Company made certain operational and strategic decisions to invest in, and increase its focus on, the long-term success of this business, which resulted in the Company significantly reducing its forecasted revenues and operating results. As a result, the Company identified indicators of impairment and performed an undiscounted cash flow analysis pursuant to ASC 360, Property, Plant, and Equipment - Overall To record the adjustment of the carrying value of the asset group to fair value, the Company recorded an impairment charge of $11.9 million during the second quarter of fiscal 2024. The impairment charge was allocated to the long-lived assets on a pro-rata basis as follows: $2.5 million to acquired developed technology, $6.4 million to customer relationships, and $3.0 million to trade names. The Company believes its assumptions used to determine the fair value of the asset group were reasonable. The following table presents the detail of intangible assets, net as of April 30, 2024 and July 31, 2023 (in thousands): April 30, 2024 July 31, 2023 Gross Carrying Value Accumulated Amortization Allocation of Impairment Loss Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Emojipedia.org and other internet domains acquired 6,711 1,230 - 5,481 6,711 894 5,817 Acquired developed technology 3,950 1,422 2,528 - 3,950 1,028 2,922 Customer relationships 7,800 1,403 6,397 - 7,800 1,013 6,787 Trade names 3,570 537 3,033 - 3,570 387 3,183 Total intangible assets $ 22,031 $ 4,592 11,958 $ 5,481 $ 22,031 $ 3,322 $ 18,709 Estimated future amortization expense as of April 30, 2024 is as follows (in thousands): Fiscal 2024 $ 112 Fiscal 2025 447 Fiscal 2026 447 Fiscal 2027 447 Fiscal 2028 447 Thereafter 3,581 Total $ 5,481 The Company’s amortization expense for intangible assets were $1.3 million and $1.7 million for the nine months ended April 30, 2024 and 2023, respectively. Goodwill Goodwill represents the difference between the purchase price and the fair value of assets and liabilities acquired in a business combination. The Company reviews goodwill yearly, or more frequently whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered, for impairment by initially considering qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, as a basis for determining whether it is necessary to perform a quantitative analysis. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative analysis is performed to identify goodwill impairment. Conversely, if it is determined that it is more likely than not that the fair value of the reporting unit is more than its carrying amount, it is unnecessary to perform a quantitative analysis. The Company may elect to bypass the qualitative assessment and proceed directly to performing a quantitative analysis. The Company has two reporting units and assesses impairment based upon qualitative factors and if necessary, quantitative factors. A reporting unit’s fair value is determined using the income approach and discounted cash flow models by utilizing Level 3 inputs and assumptions such as future cash flows, discount rates, long-term growth rates, market value and income tax considerations. Specifically, the value of each reporting unit is determined on a stand-alone basis from the perspective of a market participant and represents the price estimated to be received in a sale of the reporting unit in an orderly transaction between market participants at the measurement date. The Company then reconciles the values of all reporting units to the market capitalization of the Company. The Company performs its annual goodwill impairment tests on May 1 each year (the first day of fiscal 4 th The following table summarizes the changes in the carrying amount of goodwill for the nine months ended April 30, 2024 and 2023 (in thousands). (in thousands) Carrying Amounts Balance as of July 31, 2023 $ 1,961 Impact of currency translation (159 ) Balance as of April 30, 2024 $ 1,802 Balance as of July 31, 2022 $ 10,788 Goodwill impairment charge (8,727 ) Impact of currency translation (191 ) Balance as of April 30, 2023 $ 1,870 The total accumulated impairment loss of the Company’s goodwill as of April 30, 2024 was $8.7 million. There were no accumulated impairment losses prior to the fiscal year ended July 31, 2022.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Apr. 30, 2024
Accrued Expenses and Other Current Liabilities [Abstract]
Accrued Expenses and Other Current Liabilities	Note 6—Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): April 30, July 31, 2024 2023 Accrued payroll and bonuses $ 1,342 $ 1,136 Accrued vacation 738 593 Accrued payroll taxes 334 237 Due to artists 335 226 Accrued expenses 264 301 Operating lease liability-current portion 97 124 Derivative liability for foreign exchange contracts 142 - Accrued income taxes payable 8 51 Due to related party - IDT 12 8 Total accrued expenses and other current liabilities $ 3,272 $ 2,676

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Apr. 30, 2024
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 7—Stock-Based Compensation 2016 Incentive Plan On March 23, 2022, 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 685,000 shares to an aggregate of 2,531,000 shares, including 626,000 shares for the retention pool for GuruShots employees established under the agreement related to that acquisition. This amendment was ratified by the Company’s stockholders at the Annual Meeting of Stockholders held on January 18, 2023. At April 30, 2024, there were 347,000 shares of Class B common stock available for awards under the 2016 Incentive Plan before accounting for 204,000 contingently issuable shares related to deferred stock units (“DSUs”) with both service and market conditions. Stock-based compensation The Company recognizes stock-based compensation for stock-based awards, including stock options, restricted stock and DSUs based on the estimated fair value of the awards and recognized over the relevant service period and/or market conditions. The Company estimates the fair value of stock options on the measurement date using the Black-Scholes option valuation model. The Company estimates the fair value of the restricted stock and DSU’s with service conditions only using the current market price of the stock. The Company estimates the fair value of the DSU’s with both service and market conditions using the Monte Carlo Simulation valuation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. The Company recognizes stock-based compensation expense related to options and restricted stock units on a straight-line basis over the service period of the award, which is generally 4 years for options and 3 years for restricted stock units. In our accompanying unaudited condensed consolidated statements of operations and comprehensive (loss) income, the Company recognized stock-based compensation expense for our employees and non-employees as follows (in thousands): Three Months Ended April 30, Nine Months Ended April 30, 2024 2023 2024 2023 Stock-based compensation expense $ 482 $ 578 $ 1,673 $ 1,957 As of April 30, 2024, the Company’s unrecognized stock-based compensation expense was $227,000 for unvested stock options, $184,000 for unvested DSUs and $1.4 million for unvested restricted stock including the $4 million portion of the GuruShots retention bonus pool to be paid in the Company’s Class B common stock. In the nine months ended April 30, 2024 and 2023, awards of restricted stock and DSUs with respect to 246,000 shares and 267,000 shares, respectively, vested, and in connection with these vesting events, the Company purchased 6,328 shares and 6,310 shares respectively, of our Class B common stock from certain employees for $13,000 and $17,000, respectively, to satisfy tax withholding obligations. Restricted Stock Awards In November 2023, the Compensation Committee and the Corporate Governance Committee of our Board of Directors approved a grant of 116,208 restricted shares of our Class B common stock to our Executive Chairman Michael Jonas. Mr. Jonas agreed to accept all of his base compensation for his service as Executive Chairman during fiscal 2024 in the form of equity in the Company. These shares shall vest in equal amounts on February 7, 2025, 2026 and 2027. These shares had an aggregate grant date fair value of $380,000 which is being amortized on a straight-line basis over the vesting period. Repricing of Outstanding and Unexercised Options On October 20, 2022, the Board unanimously approved the repricing of all then outstanding and unexercised stock options granted under the 2016 Incentive Plan with exercise prices above the then current market value held by then current employees, executive officers, and consultants of the Company (the “Eligible Stock Options”). Effective October 20, 2022, the exercise price of the eligible stock options was reduced to $2.27, the closing price of its common stock on October 19, 2022. Except for the modification to the exercise price of the Eligible Stock Options, all other terms and conditions of each of the Eligible Stock Options remained in full force and effect. Pursuant to the 2016 Incentive Plan, the Compensation Committee of the Board of Directors, as the administrator of the plan, has discretionary authority, exercisable on such terms and conditions that it deems appropriate under the circumstances, to reduce the exercise price in effect for outstanding options under the 2016 Incentive Plan. In approving the repricing, the Compensation Committee considered the impact of the current exercise prices of outstanding stock options on the incentives provided to employees and consultants, the lack of retention value provided by the outstanding stock options to employees and consultants, and the impact of such options on the capital structure of the Company. As of October 20, 2022, there were 532,750 stock options outstanding under the 2016 Incentive Plan, of which 191,663 outstanding stock options had exercise prices in excess of the market price of the Company’s common stock as of October 20, 2022, which is why the Compensation Committee made the determination to deem all outstanding and unexercised stock options held by current employees, executive officers, and consultants as Eligible Stock Options. Jonathan Reich, the Company’s Chief Executive Officer, and Yi Tsai, the Company’s Chief Financial Officer, held Eligible Stock Options exercisable for an aggregate of 64,898 and 15,000 shares of the Company’s common stock, respectively, which options were repriced. The option repricing resulted in incremental stock-based compensation of $87,000, of which $39,000 was recorded as expense in the three months ended January 31, 2023, and $48,000 will be recognized as expense over the requisite service periods over which the Eligible Stock Options vest.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Apr. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Note 8—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 rights of holders of Class A common stock and Class B common stock are identical except for certain voting and conversion rights and restrictions on transferability. As such, the Company is not required to break out earnings per share by class. 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 (in thousands): Three Months Ended Nine Months Ended April 30, April 30, 2024 2023 2024 2023 Basic weighted-average number of shares 14,191 14,017 14,077 14,221 Effect of dilutive securities: Stock options 349 - - - Non-vested restricted Class B common stock 1 - - - Deferred stock units 1 - - - Diluted weighted-average number of shares 14,542 14,017 14,077 14,221 The following shares were excluded from the dilutive earnings per share computations because their inclusion would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended April 30, April 30, 2024 2023 2024 2023 Stock options 126 855 861 831 Non-vested restricted Class B common stock 181 426 216 426 Deferred stock units 201 237 203 237 Shares excluded from the calculation of diluted earnings per share 508 1,518 1,280 1,494 For the nine months ended April 30, 2024 and for the three and nine months ended April 30, 2023, the diluted earnings per share equals basic earnings per share because the Company incurred a net loss during those periods and the impact of the assumed exercise of stock options and vesting of restricted stock and DSUs would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 30, 2024
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 9—Commitments and Contingencies Commitments In connection with the acquisition of GuruShots, the Company (i) committed to a retention pool of $4 million in cash (in addition to the $4 million portion of the retention pool to be paid in the Company’s Class B common stock discussed in Note 7) to be paid to the founders and employees of GuruShots payable over three years from April 1, 2022 based on the beneficiaries thereof remaining employed by the Company or a subsidiary; and (ii) agreed to invest a minimum in user acquisition in the first 24 months following the closing subject to the acquired users generating minimum ROAS thresholds and payment of an earnout if certain growth targets were met. The Company’s obligations with respect to a potential earnout have been terminated. At the end of the first quarter of fiscal 2024, the Company and the prior owners of GuruShots agreed to withdraw and settle claims related to the purchase agreement pursuant to which the Company purchased the equity of GuruShots, including any dispute about minimum user acquisition spend for GuruShots, any right of the prior owners to an earnout payment and the Company’s claim for indemnification related to alleged misrepresentations in the agreement. 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.

Term Loan and Revolving Credit

Term Loan and Revolving Credit Facility	9 Months Ended
	Apr. 30, 2024
Term Loan and Revolving Credit Facility [Abstract]
Term Loan and Revolving Credit Facility	Note 10—Term Loan and Revolving Credit Facility As of September 27, 2016, the Company entered into a loan and security agreement with WAB for a revolving credit facility of up to $2.5 million for an initial two-year term which was extended twice for another two-year term which expired September 26, 2022 and was amended on October 28, 2022 as discussed below. The revolving credit facility was secured by a lien on substantially all of the Company’s assets. Effective with the September 2020 extension, the outstanding principal amount bore interest per annum at the greater of 3.5% or the prime rate plus 1.25%. Interest was payable monthly and all outstanding principal and any accrued and unpaid interest was due on the maturity date of September 26, 2022. The Company was required to pay an annual facility fee of $10,000 to WAB. The Company was 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 included a prohibition on the Company paying any dividend on its capital stock. On October 28, 2022, the Company entered into an Amended and Restated Loan and Security Agreement (“Amended Loan Agreement”) with WAB. Pursuant to the Amended Loan Agreement, WAB agreed to provide the Company with a new term loan facility in the maximum principal amount of $7 million for a four-year term and a $4 million revolving credit facility for a two-year term expiring October 28, 2024. Amounts outstanding under the term loan and credit facility of the Amended Loan Agreement bear interest at a per annum rate equal to the Prime Rate (as published in The Wall Street Journal) plus 0.5%, with a Prime “floor” rate of 4.00%. Pursuant to the Amended Loan Agreement, the Company discontinued the then existing $2 million revolving credit facility under the prior version of the Loan and Security Agreement. At the time of the discontinuance, there was no outstanding balance on the revolving credit facility. Pursuant to the Amended Loan Agreement, $2 million was advanced in a single-cash advance on October 28, 2022, with the remaining $5 million available for drawdown during twenty-four (24) months after closing. Each drawdown must be in an amount of not less than One Million Dollars ($1,000,000). On May 11, 2023, the Company entered into a Modification Agreement pursuant to which the Company agreed to modify the Amended Loan Agreement to reduce the remaining $5 million availability to $0. Interest accrued under the Amended Loan Agreement is due monthly, and the Company shall make monthly interest-only payments related to the term loan through the eighteen (18) month anniversary of the closing date. From the nineteen (19) month anniversary of the Closing Date through the maturity date, the Company shall repay each outstanding term loan by paying the Applicable Term Advance Amortization Payment equal to 1/12 th th On November 15, 2023, the Company elected to prepay the entire principal amount of $2 million. The Amended Loan Agreement may also require early repayments if certain conditions are met. Borrowings under the Amended Loan Agreement is secured by substantially all of the assets of the Company, its subsidiaries, and certain of its affiliates. The Amended Loan Agreement includes the following financial covenants: a) Debt Service Coverage Ratio b) Maximum Debt to EBITDA Maximum Debt to Quarter Ending EBITDA Ratio October 31, 2022 1.75 to 1.00 January 31, 2023 1.75 to 1.00 April 30, 2023 1.75 to 1.00 July 31, 2023 1.75 to 1.00 October 31, 2023 1.25 to 1.00 April 30, 2024 1.25 to 1.00 April 30, 2024 1.25 to 1.00 July 31, 2024 1.25 to 1.00 Thereafter To be agreed upon The Amended Loan Agreement also includes customary negative covenants, subject to exceptions, which limit transfers, capital expenditures, indebtedness, certain liens, investments, acquisitions, dispositions of assets, restricted payments and the business activities of the Company, as well as customary representations and warranties, affirmative covenants and events of default, including cross defaults and a change of control default. As of November 16, 2016, the Company entered into a Foreign Exchange Agreement with WAB 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 $7.5 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 WAB, in its reasonable discretion from time to time, which was set at 10% of the nominal amount of the foreign exchange contracts in effect at the relevant time. At April 30, 2024, there were $3.3 million of outstanding foreign exchange contracts, which reduced the available borrowing under the revolving credit facility by $330,000.

Segment and Geographic Informat

Segment and Geographic Information	9 Months Ended
	Apr. 30, 2024
Segment and Geographic Information [Abstract]
Segment and Geographic Information	Note 11—Segment and Geographic Information Segment Information Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer as of April 30, 2024. Beginning in the first quarter of fiscal 2023, the Company revised the presentation of segment information to align with changes to how the Company’s CODM manages the business, allocates resources and assesses operating performance reports operating results based on two reportable segments, which are the Zedge Marketplace and GuruShots. The CODM evaluates the performance of each operating segment using revenue and income (loss) from operations. The following table provides information about the Company’s two reportable segments (in thousands): Three Months Ended April 30, Nine Months Ended April 30, 2024 2023 2024 2023 Revenues: Zedge Marketplace $ 6,789 $ 5,636 $ 19,778 $ 16,941 GuruShots 869 1,090 2,732 3,668 Total Revenues $ 7,658 $ 6,726 $ 22,510 $ 20,609 Segment income (loss) from operations: Zedge Marketplace $ 1,197 $ 1,850 $ 4,532 $ 4,785 GuruShots (1,329 ) (10,262 ) (16,272 ) (11,940 ) Total loss from operations $ (132 ) $ (8,412 ) $ (11,740 ) $ (7,155 ) The CODM does not evaluate operating segments using asset information and, accordingly, the Company does not report asset information by segment. Geographic Information Net long-lived assets and total assets held outside of the United States, which are located primarily in Israel and Norway, were as follows (in thousands): United States Foreign Total Long-lived assets, net: April 30, 2024 $ 6,636 $ 1,585 $ 8,221 July 31, 2023 $ 7,054 $ 14,346 $ 21,400 Total assets: April 30, 2024 $ 31,497 $ 6,642 $ 38,139 July 31, 2023 $ 33,401 $ 13,430 $ 46,831

Operating Leases

Operating Leases	9 Months Ended
	Apr. 30, 2024
Operating Leases [Abstract]
Operating Leases	Note 12— Operating Leases The Company has operating leases primarily for office space. Operating lease right-of-use assets recorded and included in other assets were $243,000 and $360,000 at April 30, 2024 and July 31, 2023, respectively. There were no material changes in the Company’s operating and finance leases in the nine months ended April 30, 2024, as compared to the disclosure regarding such leases in the Company’s 2023 Form 10-K.

Income Taxes

Income Taxes	9 Months Ended
	Apr. 30, 2024
Income Taxes [Abstract]
Income Taxes	Note 13—Income Taxes The Company’s tax provision or benefit from income taxes for interim periods has generally been determined using an estimate of its annual effective tax rate applied to year-to-date income and records the discrete tax items in the period to which they relate. In each quarter, the Company updates the estimated annual effective tax rate and makes a year-to-date adjustment to the tax provision as necessary. The Company’s estimated annual effective tax rate for the fiscal year ending July 31, 2024 differs from the U.S. federal statutory tax rate due to certain items primarily related to stock-based compensation expense, jurisdictional mix of earnings, foreign derived intangible income deduction, global intangible low-taxed income and the change in basis differences associated with tax deductible goodwill. As of April 30, 2024, the Company had $6.3 million of deferred tax assets, for which it has established a valuation allowance of $1.8 million, related to U.S. federal and state taxes and for a certain international subsidiary. In connection with the impairment charge of intangible assets of $11.9 million recorded in the nine months period ended April 30, 2024, we recognized $2.6 million in deferred tax assets. 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, Lithuania and Israel.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Apr. 30, 2024	Jan. 31, 2024	Oct. 31, 2023	Apr. 30, 2023	Jan. 31, 2023	Oct. 31, 2022	Apr. 30, 2024	Apr. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 113	$ (9,230)	$ (15)	$ (7,694)	$ 1,606	$ (169)	$ (9,132)	$ (6,257)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Apr. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
	Apr. 30, 2024
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
Description of Business	Description of Business Zedge, Inc. builds digital marketplaces and friendly competitive games around content that people use to express themselves. Our leading products include Zedge Ringtones and Wallpapers, which we refer to as our Zedge App, a freemium digital content marketplace offering mobile phone wallpapers, video wallpapers, ringtones, and notification sounds as well as pAInt, a generative AI wallpaper maker, GuruShots, a skill-based photo challenge game, and Emojipedia, the #1 trusted source for ‘all things emoji’. Our vision is to enable and connect creators who enjoy friendly competitions with a community of prospective consumers in order to drive commerce. Except where the context clearly indicates otherwise, the terms the “Company,” “Zedge” “we,” “us” or “our” refer to Zedge, Inc. and its consolidated subsidiaries.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Zedge, Inc. and its subsidiaries: GuruShots Ltd. (“GuruShots”); 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 8 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 nine months ended April 30, 2024 and 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2024 or any other period. The balance sheet at July 31, 2023 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, 2023 (the “2023 Form 10-K”), 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 2023 refers to the fiscal year ended July 31, 2023).
Reportable Segments	Reportable Segments Effective August 1, 2022, we revised the presentation of segment information to reflect our acquisition of GuruShots. As such, we now report operating results through two reportable segments: Zedge Marketplace and GuruShots, as further discussed in Note 11, Segment and Geographic Information
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 economic environment due to various global events. 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.
Recent Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The guidance in ASU 2023-07 seeks to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU require a public entity to disclose the following: significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; an amount for other segment items by reportable segment and a description of its composition; and the title and position of the CODM and how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This ASU requires public entities to provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. ASU 2023-07 clarifies that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 is a requirement for additional disclosure and is not expected to materially impact the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance in this ASU enhances the transparency and decision functionality of income tax disclosures to provide investors information to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flow. The amendments in this ASU require public entities to disclose the following specific categories in the rate reconciliation by both percentages and reporting currency amounts: the effect of state and local income tax, net of federal (national) income tax, foreign tax effects, effects of changes in tax laws or rates enacted in the current period, effects of cross-border tax laws, tax credits, changes in valuation allowances, nontaxable or nondeductible items and changes in unrecognized tax benefits. The amendments in ASU 2023-09 also require public entities to provide additional information for reconciling items that meet the qualitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pre-tax income (loss) by the applicable statutory income tax rate). The ASU requires reporting entities to annually disclose the year-to-date amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign localities. The amendments in this ASU should be applied on a prospective basis and retrospective application is permitted. For public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued. ASU 2023-09 is a requirement for additional disclosure and is not expected to materially impact the consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards, which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of FASB Accounting Standards Codification (FASB ASC) 718, Compensation-Stock Compensation. For public business entities, ASU 2024-01 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued. We are currently evaluating the impact of this accounting standard, but do not expect it to have a material impact on our consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, Codification Improvements-Amendments to Remove References to the Concepts Statements, which removes references to various FASB Concepts Statements. Note that this ASU finalizes amendments proposed in Section A of Proposed ASU No. 2019-800, Codification Improvements, issued in November 2019. For public business entities, ASU 2024-02 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued. We are currently evaluating the impact of this accounting standard, but do not expect it to have a material impact on our consolidated financial statements.
Related Party Transactions	Related Party Transactions The Company was formerly a majority-owned subsidiary of IDT Corporation (“IDT”). On June 1, 2016, IDT’s interest in the Company was spun-off by IDT to IDT’s stockholders and the Company became an independent public-held company. IDT charges the Company for services it provides, and the Company charges IDT for services it provides, pursuant to a Transition Services Agreement (“TSA”). The Company is party to a consulting agreement with Activist Artist Management, LLC (“Activist”), which assists the Company in strategic business development. A member of the Company’s Board of Directors owns a significant minority stake in Activist. Transactions with these related parties did not have a material impact to the consolidated balance sheets as of April 30, 2024 or July 31, 2023, or the consolidated statements of operations and comprehensive loss for the three and nine months ended April 30, 2024 and 2023.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Apr. 30, 2024
Revenue [Abstract]
Schedule of Revenue Disaggregated by Segment and Type	The following table presents revenue disaggregated by segment and type (in thousands): Three Months Ended Nine Months Ended April 30, April 30, 2024 2023 2024 2023 Zedge Marketplace Advertising revenue $ 5,461 $ 4,572 $ 15,882 $ 13,691 Paid subscription revenue 1,122 832 3,186 2,598 Other revenues 206 232 710 652 Total Zedge Marketplace revenue 6,789 5,636 19,778 16,941 GuruShots Digital goods and services 869 1,090 2,732 3,668 Total revenue $ 7,658 $ 6,726 $ 22,510 $ 20,609

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Apr. 30, 2024
Fair Value Measurements [Abstract]
Schedule of Balance of Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following tables present the balance of assets and liabilities measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Total April 30, 2024 Liabilities: Foreign exchange forward contracts $ - $ 142 $ - $ 142 July 31, 2023 Assets: Foreign exchange forward contracts $ - $ 19 $ - $ 19
Schedule of Contingent Consideration Related Acquisition	The following table provides a rollforward of the contingent consideration related to our acquisition of GuruShots (in thousands): Balance at July 31, 2022 $ 1,943 Change in fair value (1,943 ) Balance at April 30, 2023 $ 0

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Apr. 30, 2024
Derivative Instruments [Abstract]
Schedule of Outstanding Contracts	The outstanding contracts at April 30, 2024, were as follows: Settlement Date U.S. Dollar Amount NOK Amount May-24 225,000 2,237,738 Jun-24 225,000 2,357,321 Jul-24 225,000 2,355,836 Aug-24 225,000 2,354,450 Sep-24 225,000 2,353,262 Oct-24 225,000 2,352,197 Nov-24 225,000 2,349,801 Total 1,575,000 16,360,605 Settlement Date U.S. Dollar Amount EUR Amount May-24 225,000 205,142 Jun-24 250,000 227,975 Jul-24 250,000 227,678 Aug-24 250,000 227,337 Sep-24 250,000 227,019 Oct-24 250,000 226,679 Nov-24 250,000 226,296 Total 1,725,000 1,568,126
Schedule of Fair Value of Outstanding Derivative Instruments	The fair value of outstanding derivative instruments recorded in the accompanying unaudited condensed consolidated balance sheets were as follows: April 30, July 31, (in thousands) 2024 2023 Assets and Liabilities Derivatives: Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Other current assets $ - $ 19 Foreign exchange forward contracts Accrued expenses and other current liabilities $ 142 $ -
Schedule of Derivative Instruments on the Consolidated Statements of Operations and Comprehensive Loss	The effects of derivative instruments on the condensed consolidated statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended April 30, Nine Months Ended April 30, Amount of Loss Recognized on Derivatives 2024 2023 2024 2023 Derivatives not designated or not qualifying as hedging instruments Location of loss recognized on derivatives Foreign exchange forward contracts Net loss resulting from foreign exchange transactions $ (145 ) $ (122 ) (296 ) $ (58 )

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Apr. 30, 2024
Intangible Assets and Goodwill [Abstract]
Schedule of Intangible Assets, Net	The following table presents the detail of intangible assets, net as of April 30, 2024 and July 31, 2023 (in thousands): April 30, 2024 July 31, 2023 Gross Carrying Value Accumulated Amortization Allocation of Impairment Loss Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Emojipedia.org and other internet domains acquired 6,711 1,230 - 5,481 6,711 894 5,817 Acquired developed technology 3,950 1,422 2,528 - 3,950 1,028 2,922 Customer relationships 7,800 1,403 6,397 - 7,800 1,013 6,787 Trade names 3,570 537 3,033 - 3,570 387 3,183 Total intangible assets $ 22,031 $ 4,592 11,958 $ 5,481 $ 22,031 $ 3,322 $ 18,709
Schedule of Estimated Future Amortization Expense	Estimated future amortization expense as of April 30, 2024 is as follows (in thousands): Fiscal 2024 $ 112 Fiscal 2025 447 Fiscal 2026 447 Fiscal 2027 447 Fiscal 2028 447 Thereafter 3,581 Total $ 5,481
Schedule of Carrying Amount of Goodwill	The following table summarizes the changes in the carrying amount of goodwill for the nine months ended April 30, 2024 and 2023 (in thousands). (in thousands) Carrying Amounts Balance as of July 31, 2023 $ 1,961 Impact of currency translation (159 ) Balance as of April 30, 2024 $ 1,802 Balance as of July 31, 2022 $ 10,788 Goodwill impairment charge (8,727 ) Impact of currency translation (191 ) Balance as of April 30, 2023 $ 1,870

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Apr. 30, 2024
Accrued Expenses and Other Current Liabilities [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following (in thousands): April 30, July 31, 2024 2023 Accrued payroll and bonuses $ 1,342 $ 1,136 Accrued vacation 738 593 Accrued payroll taxes 334 237 Due to artists 335 226 Accrued expenses 264 301 Operating lease liability-current portion 97 124 Derivative liability for foreign exchange contracts 142 - Accrued income taxes payable 8 51 Due to related party - IDT 12 8 Total accrued expenses and other current liabilities $ 3,272 $ 2,676

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Apr. 30, 2024
Stock-Based Compensation [Abstract]
Schedule of Operations and Comprehensive (Loss) Income	In our accompanying unaudited condensed consolidated statements of operations and comprehensive (loss) income, the Company recognized stock-based compensation expense for our employees and non-employees as follows (in thousands): Three Months Ended April 30, Nine Months Ended April 30, 2024 2023 2024 2023 Stock-based compensation expense $ 482 $ 578 $ 1,673 $ 1,957

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Apr. 30, 2024
Earnings Per Share [Abstract]
Schedule of Weighted-Average Number of Shares Basic and Diluted	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 (in thousands): Three Months Ended Nine Months Ended April 30, April 30, 2024 2023 2024 2023 Basic weighted-average number of shares 14,191 14,017 14,077 14,221 Effect of dilutive securities: Stock options 349 - - - Non-vested restricted Class B common stock 1 - - - Deferred stock units 1 - - - Diluted weighted-average number of shares 14,542 14,017 14,077 14,221
Schedule of the Dilutive Earnings per Share	The following shares were excluded from the dilutive earnings per share computations because their inclusion would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended April 30, April 30, 2024 2023 2024 2023 Stock options 126 855 861 831 Non-vested restricted Class B common stock 181 426 216 426 Deferred stock units 201 237 203 237 Shares excluded from the calculation of diluted earnings per share 508 1,518 1,280 1,494

Term Loan and Revolving Credi_2

Term Loan and Revolving Credit Facility (Tables)	9 Months Ended
	Apr. 30, 2024
Term Loan and Revolving Credit Facility [Abstract]
Schedule of Maximum Debt	Maximum Debt to Quarter Ending EBITDA Ratio October 31, 2022 1.75 to 1.00 January 31, 2023 1.75 to 1.00 April 30, 2023 1.75 to 1.00 July 31, 2023 1.75 to 1.00 October 31, 2023 1.25 to 1.00 April 30, 2024 1.25 to 1.00 April 30, 2024 1.25 to 1.00 July 31, 2024 1.25 to 1.00 Thereafter To be agreed upon

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	9 Months Ended
	Apr. 30, 2024
Segment and Geographic Information [Abstract]
Schedule of Operating Segment Using Revenue and Income (Loss) from Operations	The CODM evaluates the performance of each operating segment using revenue and income (loss) from operations. The following table provides information about the Company’s two reportable segments (in thousands): Three Months Ended April 30, Nine Months Ended April 30, 2024 2023 2024 2023 Revenues: Zedge Marketplace $ 6,789 $ 5,636 $ 19,778 $ 16,941 GuruShots 869 1,090 2,732 3,668 Total Revenues $ 7,658 $ 6,726 $ 22,510 $ 20,609 Segment income (loss) from operations: Zedge Marketplace $ 1,197 $ 1,850 $ 4,532 $ 4,785 GuruShots (1,329 ) (10,262 ) (16,272 ) (11,940 ) Total loss from operations $ (132 ) $ (8,412 ) $ (11,740 ) $ (7,155 )
Schedule of Net Long-Lived Assets and Total Assets Held Outside of the United States	Net long-lived assets and total assets held outside of the United States, which are located primarily in Israel and Norway, were as follows (in thousands): United States Foreign Total Long-lived assets, net: April 30, 2024 $ 6,636 $ 1,585 $ 8,221 July 31, 2023 $ 7,054 $ 14,346 $ 21,400 Total assets: April 30, 2024 $ 31,497 $ 6,642 $ 38,139 July 31, 2023 $ 33,401 $ 13,430 $ 46,831

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Details)	9 Months Ended
	Apr. 30, 2024
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
Number of segments	2
Percentage of reconciling items	5%

Revenue (Details)

Revenue (Details) - USD ($)			9 Months Ended
	Jul. 31, 2023	Apr. 01, 2022	Apr. 30, 2024
Revenue [Line Items]
Deferred revenue			$ 258,000
Deferred revenue description			The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. The Company’s deferred revenue balance for paid subscriptions was approximately $2.4 million related to approximately 654,000 active subscribers, and approximately $1.5 million, related to approximately 647,000 active subscribers, as of April 30, 2024 and July 31, 2023, respectively.
Deferred Revenue [Member]
Revenue [Line Items]
Payment terms			1 year
Zedge Premium [Member]
Revenue [Line Items]
Deferred revenue	$ 255,000
Deferred revenues decreased	2,100,000
Deferred Revenue [Member]
Revenue [Line Items]
Integration bonus received		$ 2,000,000
Estimated service period		24 months
Deferred revenue	$ 700,000		$ 0

Revenue (Details) - Schedule of

Revenue (Details) - Schedule of Revenue Disaggregated by Segment and Type - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Zedge Marketplace
Revenue	$ 7,658	$ 6,726	$ 22,510	$ 20,609
Advertising revenue [Member]
Zedge Marketplace
Revenue	5,461	4,572	15,882	13,691
Paid subscription revenue [Member]
Zedge Marketplace
Revenue	1,122	832	3,186	2,598
Other revenues [Member]
Zedge Marketplace
Revenue	206	232	710	652
Total Zedge App revenue [Member]
Zedge Marketplace
Revenue	6,789	5,636	19,778	16,941
Digital goods and services [Member]
Zedge Marketplace
Revenue	$ 869	$ 1,090	$ 2,732	$ 3,668

Fair Value Measurements (Detail

Fair Value Measurements (Details)	Apr. 30, 2023 USD ($)
Fair Value Measurements [Abstract]
Fair value of contingent consideration	$ 1,943,000

Fair Value Measurements (Deta_2

Fair Value Measurements (Details) - Schedule of Balance of Assets and Liabilities Measured at Fair Value on a Recurring Basis - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Liabilities:
Foreign exchange forward contracts	$ 142
Assets:
Foreign exchange forward contracts		$ 19
Fair Value, Recurring [Member] Total | Level 1 [Member]
Liabilities:
Foreign exchange forward contracts
Assets:
Foreign exchange forward contracts
Fair Value, Recurring [Member] Total | Level 2 [Member]
Liabilities:
Foreign exchange forward contracts	142
Assets:
Foreign exchange forward contracts		19
Fair Value, Recurring [Member] Total | Level 3 [Member]
Liabilities:
Foreign exchange forward contracts
Assets:
Foreign exchange forward contracts

Fair Value Measurements (Deta_3

Fair Value Measurements (Details) - Schedule of Contingent Consideration Related Acquisition $ in Thousands	9 Months Ended
	Apr. 30, 2023 USD ($)
Schedule of Contingent Consideration Related Acquisition [Abstract]
Balance	$ 1,943
Change in fair value	(1,943)
Balance	$ 0

Derivative Instruments (Details

Derivative Instruments (Details) - Schedule of Outstanding Contracts € in Thousands, kr in Thousands, $ in Thousands	Apr. 30, 2024 USD ($)	Apr. 30, 2024 NOK (kr)	Jul. 31, 2023 USD ($)	Jul. 31, 2023 EUR (€)
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts	$ 1,575,000	kr 16,360,605	$ 1,725,000	€ 1,568,126
May-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts	225,000	2,237,738
Jun-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts	225,000	2,357,321
Jul-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts	225,000	2,355,836
Aug-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts	225,000	2,354,450
Sep-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts	225,000	2,353,262
Oct-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts	225,000	2,352,197
Nov-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts	$ 225,000	kr 2,349,801
May-24 One [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts			225,000	205,142
Jun-24 One [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts			250,000	227,975
Jul-24 One [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts			250,000	227,678
Aug-24 One [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts			250,000	227,337
Sep-24 One [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts			250,000	227,019
Oct-24 One [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts			250,000	226,679
Nov-24 One [Member]
Schedule of Outstanding Contracts [Line Items]
Total outstanding contracts			$ 250,000	€ 226,296

Derivative Instruments (Detai_2

Derivative Instruments (Details) - Schedule of Fair Value of Outstanding Derivative Instruments - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Other current assets [Member]
Schedule of Fair Value of Outstanding Derivative Instruments [Line Items]
Foreign exchange forward contracts		$ 19
Accrued expenses and other current liabilities [Member]
Schedule of Fair Value of Outstanding Derivative Instruments [Line Items]
Foreign exchange forward contracts	$ 142

Derivative Instruments (Detai_3

Derivative Instruments (Details) - Schedule of Derivative Instruments on the Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Derivatives not designated or not qualifying as hedging instruments
Foreign exchange forward contracts	$ (145)	$ (122)	$ (296)	$ (58)

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($)	9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Intangible Assets and Goodwill [Line Items]
Impairment charge	$ 11.9
Acquired developed technology	2,500,000
Customer relationships	6,400,000
Trade names	3,000,000
Amortization expense	1,270,000	$ 1,738,000
Non cash impairment charge	8,700,000
Goodwill impairment charge	8,700,000
Intangible Assets [Member]
Intangible Assets and Goodwill [Line Items]
Amortization expense	$ 1,300,000	$ 1,700,000
WACC [Member]
Intangible Assets and Goodwill [Line Items]
Weighted average discount rate	30.50%
Minimum [Member]
Intangible Assets and Goodwill [Line Items]
Estimated useful lives ranging	5 years
Maximum [Member]
Intangible Assets and Goodwill [Line Items]
Estimated useful lives ranging	15 years

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details) - Schedule of Intangible Assets, Net - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2024	Jul. 31, 2023
Gross Carrying Value [Member]
Schedule of intangible assets [Abstract]
Gross Carrying Value	$ 22,031	$ 22,031
Gross Carrying Value [Member] | Emojipedia.org and other internet domains acquired [Member]
Schedule of intangible assets [Abstract]
Gross Carrying Value	6,711	6,711
Gross Carrying Value [Member] | Acquired developed technology [Member]
Schedule of intangible assets [Abstract]
Gross Carrying Value	3,950	3,950
Gross Carrying Value [Member] | Customer Relationships [Member]
Schedule of intangible assets [Abstract]
Gross Carrying Value	7,800	7,800
Gross Carrying Value [Member] | Trade names [Member]
Schedule of intangible assets [Abstract]
Gross Carrying Value	3,570	3,570
Accumulated Amortization [Member]
Schedule of intangible assets [Abstract]
Accumulated Amortization	4,592	3,322
Accumulated Amortization [Member] | Emojipedia.org and other internet domains acquired [Member]
Schedule of intangible assets [Abstract]
Accumulated Amortization	1,230	894
Accumulated Amortization [Member] | Acquired developed technology [Member]
Schedule of intangible assets [Abstract]
Accumulated Amortization	1,422	1,028
Accumulated Amortization [Member] | Customer Relationships [Member]
Schedule of intangible assets [Abstract]
Accumulated Amortization	1,403	1,013
Accumulated Amortization [Member] | Trade names [Member]
Schedule of intangible assets [Abstract]
Accumulated Amortization	537	387
Allocation of Impairment Loss [Member]
Schedule of intangible assets [Abstract]
Allocation of Impairment Loss	11,958
Allocation of Impairment Loss [Member] | Emojipedia.org and other internet domains acquired [Member]
Schedule of intangible assets [Abstract]
Allocation of Impairment Loss
Allocation of Impairment Loss [Member] | Acquired developed technology [Member]
Schedule of intangible assets [Abstract]
Allocation of Impairment Loss	2,528
Allocation of Impairment Loss [Member] | Customer Relationships [Member]
Schedule of intangible assets [Abstract]
Allocation of Impairment Loss	6,397
Allocation of Impairment Loss [Member] | Trade names [Member]
Schedule of intangible assets [Abstract]
Allocation of Impairment Loss	3,033
Net Carrying Value [Member]
Schedule of intangible assets [Abstract]
Net Carrying Value	5,481	18,709
Net Carrying Value [Member] | Emojipedia.org and other internet domains acquired [Member]
Schedule of intangible assets [Abstract]
Net Carrying Value	5,481	5,817
Net Carrying Value [Member] | Acquired developed technology [Member]
Schedule of intangible assets [Abstract]
Net Carrying Value		2,922
Net Carrying Value [Member] | Customer Relationships [Member]
Schedule of intangible assets [Abstract]
Net Carrying Value		6,787
Net Carrying Value [Member] | Trade names [Member]
Schedule of intangible assets [Abstract]
Net Carrying Value		$ 3,183

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill (Details) - Schedule of Estimated Future Amortization Expense $ in Thousands	Apr. 30, 2024 USD ($)
Schedule of Estimated Future Amortization Expense [Abstract]
Fiscal 2024	$ 112
Fiscal 2025	447
Fiscal 2026	447
Fiscal 2027	447
Fiscal 2028	447
Thereafter	3,581
Total	$ 5,481

Intangible Assets and Goodwil_5

Intangible Assets and Goodwill (Details) - Schedule of Carrying Amount of Goodwill - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2023
Schedule of Carrying Amount of Goodwill [Abstract]
Balance beginning			$ 1,961		$ 10,788
Goodwill impairment charge		$ (8,727)		$ (8,727)	(8,727)
Impact of currency translation			(159)		(191)
Balance ending	$ 1,802	$ 1,870	$ 1,802	$ 1,870	$ 1,870

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Schedule of Accrued Expenses and Other Current Liabilities [Abstract]
Accrued payroll and bonuses	$ 1,342	$ 1,136
Accrued vacation	738	593
Accrued payroll taxes	334	237
Due to artists	335	226
Accrued expenses	264	301
Operating lease liability-current portion	97	124
Derivative liability for foreign exchange contracts	142
Accrued income taxes payable	8	51
Due to related party - IDT	12	8
Total accrued expenses and other current liabilities	$ 3,272	$ 2,676

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 20, 2022	Nov. 30, 2023	Apr. 30, 2024	Jan. 31, 2023	Apr. 30, 2024	Apr. 30, 2023	Mar. 23, 2022
Stock-Based Compensation [Line Items]
Grant term years					4 years
Restricted stock units					3 years
Unrecognized compensation cost (in Dollars)					$ 227,000
Unvested stock options			184,000		184,000
Unvested restricted stock (in Dollars)			$ 4,000,000		$ 4,000,000
Purchased from employees, value (in Dollars)					$ 13,000	$ 17,000
Exercise price of stock option reduced (in Dollars per share)	$ 2.27
Vesting percentage, description					Except for the modification to the exercise price of the Eligible Stock Options, all other terms and conditions of each of the Eligible Stock Options remained in full force and effect.
Exercised outstanding stock option	191,663
Incremental stock-based compensation			349,000
Recognized expense over requisite service period (in Dollars)			$ 48,000		$ 48,000
Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation [Line Items]
Unvested restricted stock (in Dollars)			$ 1,400,000		$ 1,400,000
Restricted Stock [Member]
Stock-Based Compensation [Line Items]
Number of shares, vested					246,000
Aggregate of share granted (in Dollars)		$ 380,000
Deferred Share Unit [Member]
Stock-Based Compensation [Line Items]
Number of shares, vested						267,000
Chief Executive Officer [Member]
Stock-Based Compensation [Line Items]
Number of stock option exercisable			64,898		64,898
Incremental stock-based compensation				87,000
Chief Financial Officer [Member]
Stock-Based Compensation [Line Items]
Number of stock option exercisable			15,000		15,000
Incremental stock-based compensation				39,000
Class B Common Stock [Member]
Stock-Based Compensation [Line Items]
Number of share grant			347,000		347,000
Number of shares			204,000		204,000
Number of shares purchased					6,328	6,310
Class B Common Stock [Member] | Restricted Stock [Member]
Stock-Based Compensation [Line Items]
Restricted shares		116,208
2016 Incentive Plan [Member]
Stock-Based Compensation [Line Items]
Outstanding stock option	532,750
2016 Incentive Plan [Member] | Gurushots Retention Pool [Member]
Stock-Based Compensation [Line Items]
Number of Shares Grant for Retention Under Share Based Payment							626,000
2016 Incentive Plan [Member] | Class B Common Stock [Member]
Stock-Based Compensation [Line Items]
Number of additional share grant							685,000
Number of share grant							2,531,000

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - Schedule of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Schedule of Operations and Comprehensive (Loss) Income [Abstract]
Stock-based compensation expense	$ 482	$ 578	$ 1,673	$ 1,957

Earnings Per Share (Details) -

Earnings Per Share (Details) - Schedule of Weighted-Average Number of Shares Basic and Diluted - shares shares in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Schedule of Weighted-Average Number of Shares Basic and Diluted [Abstract]
Basic weighted-average number of shares	14,191	14,017	14,077	14,221
Effect of dilutive securities:
Stock options	349
Non-vested restricted Class B common stock	1
Deferred stock units	1
Diluted weighted-average number of shares	14,542	14,017	14,077	14,221

Earnings Per Share (Details) _2

Earnings Per Share (Details) - Schedule of the Dilutive Earnings per Share - shares shares in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Schedule of the Dilutive Earnings per Share [Abstract]
Stock options	126	855	861	831
Non-vested restricted Class B common stock	181	426	216	426
Deferred stock units	201	237	203	237
Shares excluded from the calculation of diluted earnings per share	508	1,518	1,280	1,494

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions		9 Months Ended
	Apr. 01, 2022	Apr. 30, 2024
Commitments and Contingencies [Line Items]
Retention amount payable		$ 4
Payable over period	3 years
Class B Common Stock [Member]
Commitments and Contingencies [Line Items]
Retention amount payable		$ 4

Term Loan and Revolving Credi_3

Term Loan and Revolving Credit Facility (Details) - USD ($)					9 Months Ended
	Nov. 15, 2023	May 11, 2023	Oct. 28, 2022	Nov. 16, 2016	Apr. 30, 2024	Sep. 27, 2016
Term Loan and Revolving Credit Facility [Line Items]
Revolving credit facility						$ 2,500,000
Interest rate, description					Interest was payable monthly and all outstanding principal and any accrued and unpaid interest was due on the maturity date of September 26, 2022.
Line of credit facility annual fee					$ 10,000
Amended loan agreement description					On October 28, 2022, the Company entered into an Amended and Restated Loan and Security Agreement (“Amended Loan Agreement”) with WAB. Pursuant to the Amended Loan Agreement, WAB agreed to provide the Company with a new term loan facility in the maximum principal amount of $7 million for a four-year term and a $4 million revolving credit facility for a two-year term expiring October 28, 2024.
Amended loan agreement	$ 2,000,000		$ 2,000,000		$ 2,000,000
Remaining available drawdown			5,000,000
Principal amount			$ 1,000,000
Outstanding term loan percentage					10%
Foreign exchange agreement				$5.0
Loan agreement				$ 7,500,000
Percentage of foreign exchange				10%
Foreign Exchange Contract [Member]
Term Loan and Revolving Credit Facility [Line Items]
Outstanding foreign exchange				$ 3,300,000
Borrowing under the revolving credit facility				$ 330,000
Maximum [Member]
Term Loan and Revolving Credit Facility [Line Items]
Prime rate percentage					3.50%
Interest rate percentage					4%
Loan agreement		$ 5,000,000
Debt service coverage ratio					1.25
Minimum [Member]
Term Loan and Revolving Credit Facility [Line Items]
Prime rate percentage					1.25%
Interest rate percentage					0.50%
Loan agreement		$ 0
Debt service coverage ratio					1

Term Loan and Revolving Credi_4

Term Loan and Revolving Credit Facility (Details) - Schedule of Maximum Debt	9 Months Ended
	Apr. 30, 2024
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	To be agreed upon
Minimum [Member] | October 31, 2022 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.75
Minimum [Member] | January 31, 2023 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.75
Minimum [Member] | April 30, 2023 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.75
Minimum [Member] | July 31, 2023 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.75
Minimum [Member] | October 31, 2023 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.25
Minimum [Member] | April 30, 2024 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.25
Minimum [Member] | April 30, 2024 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.25
Minimum [Member] | July 31, 2024 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.25
Maximum [Member] | October 31, 2022 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.00
Maximum [Member] | January 31, 2023 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.00
Maximum [Member] | April 30, 2023 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.00
Maximum [Member] | July 31, 2023 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.00
Maximum [Member] | October 31, 2023 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.00
Maximum [Member] | April 30, 2024 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.00
Maximum [Member] | April 30, 2024 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.00
Maximum [Member] | July 31, 2024 [Member]
Schedule of Maximum Debt [Line Items]
Balance of Maximum Debt	1.00

Segment and Geographic Inform_3

Segment and Geographic Information (Details) - Schedule of Operating Segment Using Revenue and Income (Loss) from Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Revenues:
Total Revenue	$ 7,658	$ 6,726	$ 22,510	$ 20,609
Segment income (loss) from operations:
Segment income (loss) from operations	(132)	(8,412)	(11,740)	(7,155)
Zedge Marketplace [Member]
Revenues:
Total Revenue	6,789	5,636	19,778	16,941
Segment income (loss) from operations:
Segment income (loss) from operations	1,197	1,850	4,532	4,785
GuruShots [Member]
Revenues:
Total Revenue	869	1,090	2,732	3,668
Segment income (loss) from operations:
Segment income (loss) from operations	$ (1,329)	$ (10,262)	$ (16,272)	$ (11,940)

Segment and Geographic Inform_4

Segment and Geographic Information (Details) - Schedule of Net Long-Lived Assets and Total Assets Held Outside of the United States - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Long-lived assets, net:
Long-lived assets, net	$ 8,221	$ 21,400
Total assets:
Total assets	38,139	46,831
United States [Member]
Long-lived assets, net:
Long-lived assets, net	6,636	7,054
Total assets:
Total assets	31,497	33,401
Foreign [Member]
Long-lived assets, net:
Long-lived assets, net	1,585	14,346
Total assets:
Total assets	$ 6,642	$ 13,430

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Operating Leases [Abstract]
Operating lease right of use assets	$ 243,000	$ 360,000

Income Taxes (Details)

Income Taxes (Details) $ in Millions	9 Months Ended
	Apr. 30, 2024 USD ($)
Income Taxes [Abstract]
Deferred tax assets	$ 6.3
Deferred tax assets valuation allowance	1.8
Impairment charge of intangible assets	11.9
Recognized deferred tax assets	$ 2.6