Zedge (ZDGE) 10-Q 16 Dec 24 2025 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Oct. 31, 2024	Dec. 12, 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	Oct. 31, 2024
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
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	NYSEAMER
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		13,618,761

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2024	Jul. 31, 2024
Current assets:
Cash and cash equivalents	$ 20,196	$ 19,998
Trade accounts receivable	3,213	3,406
Prepaid expenses and other receivables	754	593
Total current assets	24,163	23,997
Property and equipment, net	2,194	2,306
Intangible assets, net	5,257	5,369
Goodwill	1,812	1,824
Deferred tax assets, net	4,344	4,344
Other assets	428	355
Total assets	38,198	38,195
Current liabilities:
Trade accounts payable	1,389	1,113
Accrued expenses and other current liabilities	2,865	2,969
Deferred revenues	2,425	2,168
Total current liabilities	6,679	6,250
Deferred revenues--non-current	1,266	931
Other liabilities	150	118
Total liabilities	8,095	7,299
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	48,642	48,263
Accumulated other comprehensive loss	(1,861)	(1,832)
Accumulated deficit	(13,452)	(13,113)
Treasury stock, 1,277 shares at October 31, 2024 and 1,051 shares at July 31, 2024, at cost	(3,380)	(2,576)
Total stockholders’ equity	30,103	30,896
Total liabilities and stockholders’ equity	38,198	38,195
Class A Common Stock
Stockholders’ equity:
Common stock value	5	5
Class B Common Stock
Stockholders’ equity:
Common stock value	$ 149	$ 149

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands	Oct. 31, 2024	Jul. 31, 2024
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	1,277	1,051
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	14,896	14,866
Common stock, shares outstanding	13,619	13,815

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Income Statement [Abstract]
Revenues	$ 7,194	$ 7,081
Costs and expenses:
Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below)	461	486
Selling, general and administrative	6,809	5,499
Depreciation and amortization	381	775
(Loss) income from operations	(457)	321
Interest and other income, net	181	81
Net loss resulting from foreign exchange transactions	(14)	(219)
(Loss) income before income taxes	(290)	183
Provision for income taxes	49	198
Net loss	(339)	(15)
Other comprehensive loss:
Changes in foreign currency translation adjustment	(29)	(367)
Total other comprehensive loss	(29)	(367)
Total comprehensive loss	$ (368)	$ (382)
Loss per share attributable to Zedge, Inc. common stockholders:
Basic (in Dollars per share)	$ (0.02)	$ 0
Diluted (in Dollars per share)	$ (0.02)	$ 0
Weighted-average number of shares used in calculation of loss per share:
Basic (in Shares)	14,086	13,975
Diluted (in Shares)	14,086	13,975

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, 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)						6
Foreign currency translation adjustment				(367)			(367)
Net 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, 2024	$ 5	$ 149	48,263	(1,832)	(13,113)	$ (2,576)	30,896
Balance (in Shares) at Jul. 31, 2024	525	14,866				1,051
Exercise of stock options
Stock-based compensation			379				379
Stock-based compensation (in Shares)		30
Purchase of treasury stock						$ (804)	(804)
Purchase of treasury stock (in Shares)						226
Foreign currency translation adjustment				(29)			(29)
Net loss					(339)		(339)
Balance at Oct. 31, 2024	$ 5	$ 149	$ 48,642	$ (1,861)	$ (13,452)	$ (3,380)	$ 30,103
Balance (in Shares) at Oct. 31, 2024	525	14,896				1,277

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Operating activities
Net loss	$ (339)	$ (15)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	16	14
Amortization of intangible assets	112	579
Amortization of capitalized software and technology development costs	253	182
Amortization of deferred financing costs		1
Stock-based compensation	379	507
Impairment of investment in privately-held company		50
Change in assets and liabilities:
Trade accounts receivable	193	(300)
Prepaid expenses and other current assets	(161)	(66)
Other assets	(41)	14
Trade accounts payable and accrued expenses	166	384
Deferred revenue	592	(90)
Net cash provided by operating activities	1,170	1,260
Investing activities
Capitalized software and technology development costs	(146)	(423)
Purchase of property and equipment	(11)	(22)
Net cash used in investing activities	(157)	(445)
Financing activities
Proceeds from exercise of stock options		3
Purchase of treasury stock in connection with share buyback program and stock awards vesting	(804)	(13)
Net cash used in financing activities	(804)	(10)
Effect of exchange rate changes on cash and cash equivalents	(11)	(185)
Net increase in cash and cash equivalents	198	620
Cash and cash equivalents at beginning of period	19,998	18,125
Cash and cash equivalents at end of period	20,196	18,745
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for income taxes	88	36
Cash payments made for interest expenses		$ 46

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Oct. 31, 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 suite of tools that can be used to render images from text or image prompts powered by generative AI, 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 months ended October 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2025 or any other period. The balance sheet at July 31, 2024 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, 2024 (the “2024 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 2024 refers to the fiscal year ended July 31, 2024). Significant Accounting Policies and Estimates There have been no material changes to the Company’s significant accounting policies and critical accounting estimates described in the 2024 Form 10-K. Use of Estimates The preparation of our 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 our 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, our financial condition or operating results will be affected. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. Recently Issued Accounting Pronouncements Segment Reporting: Income Taxes: Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations. 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. The Company is party to a revenue sharing agreement with National Retail Services, Inc. (“NRS”), a wholly owned subsidiary of IDT, under which Zedge and certain of its subsidiaries (Emojipedia and GuruShots) provide a selection of their digital content for display on NR screens and share in the revenue generated from the resulting advertisements. Transactions with these related parties did not have a material impact on the consolidated balance sheets as of October 31, 2024 or July 31, 2024, or the consolidated statements of operations and comprehensive loss for the three months ended October 31, 2024 or 2023.

Revenue

Revenue	3 Months Ended
	Oct. 31, 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 2024 2023 Zedge Marketplace Advertising revenue $ 4,874 $ 4,939 Paid subscription revenue 1,182 976 Other revenues 494 222 Total Zedge Marketplace revenue 6,550 6,137 GuruShots Digital goods and services 644 944 Total revenue $ 7,194 $ 7,081 Contract Balances Contract liabilities consist of deferred revenue, which are recorded for payments received in advance of the satisfaction of performance obligations . 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 $3.4 million related to approximately 698,000 active subscribers, and approximately $2.9 million, related to approximately 669,000 active subscribers, as of October 31, 2024 and July 31, 2024, 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 October 31, 2024, and July 31, 2024, the Company’s deferred revenue balance related to Zedge Premium was approximately $247,000 and $251,000, respectively. The amount of deferred revenue recognized in the three months ended October 31, 2024 that was included in the deferred revenue balance at July 31, 2024 was $0.7 million. Unsatisfied Performance Obligations Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of 30 months or less. 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.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 31, 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 October 31, 2024 Liabilities: Foreign exchange forward contracts $ - $ 58 $ - $ 58 July 31, 2024 Liabilities: Foreign exchange forward contracts $ - $ 51 $ - $ 51 (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market Fair Value of Other Financial Instruments 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 October 31, 2024 and July 31, 2024 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	3 Months Ended
	Oct. 31, 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 October 31, 2024, were as follows: Settlement Date U.S. Dollar Amount NOK Amount Nov-24 225,000 2,349,801 Dec-24 225,000 2,415,510 Jan-25 225,000 2,414,669 Feb-25 225,000 2,413,827 Mar-25 225,000 2,413,035 Apr-25 225,000 2,411,421 May-25 225,000 2,410,245 Total 1,575,000 16,828,508 Settlement Date U.S. Dollar Amount EUR Amount Nov-24 250,000 226,296 Dec-24 275,000 250,500 Jan-25 275,000 250,086 Feb-25 275,000 249,836 Mar-25 275,000 249,487 Apr-25 275,000 248,863 May-25 275,000 248,307 Total 1,900,000 1,723,375 The fair value of outstanding derivative instruments recorded in the accompanying unaudited condensed consolidated balance sheets were as follows (in thousands): October 31, July 31, (in thousands) 2024 2024 Assets and Liabilities Derivatives: Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Accrued expenses and other current liabilities $ 58 $ 51 The effects of derivative instruments on the condensed consolidated statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended Amount of Loss Recognized on Derivatives 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 $ (18 ) $ (282 )

Intangible Assets and Goodwill

Intangible Assets and Goodwill	3 Months Ended
	Oct. 31, 2024
Intangible Assets and Goodwill [Abstract]
Intangible Assets and Goodwill	Note 5—Intangible Assets and Goodwill The following table presents the detail of intangible assets, net as of October 31, 2024 and July 31, 2024 (in thousands): October 31, 2024 July 31, 2024 Gross Accumulated Allocation of Net Carrying Gross Accumulated Allocation of Net Carrying Emojipedia.org and other internet domains acquired 6,711 1,454 - 5,257 6,711 $ 1,342 - 5,369 Acquired developed technology - - - - 3,950 1,422 2,528 - Customer relationships - - - - 7,800 1,403 6,397 - Trade names - - - - 3,570 537 3,033 - Total intangible assets $ 6,711 $ 1,454 - $ 5,257 $ 22,031 $ 4,704 11,958 $ 5,369 Estimated future amortization expense as of October 31, 2024 is as follows (in thousands): Fiscal 2025 $ 336 Fiscal 2026 447 Fiscal 2027 447 Fiscal 2028 447 Fiscal 2029 447 Thereafter 3,133 Total $ 5,257 The Company’s amortization expense for intangible assets were $112,000 and $579,000 for the three months ended October 31, 2024 and 2023, respectively. Goodwill The following table summarizes the changes in the carrying amount of goodwill for the three months ended October 31, 2024 (in thousands). Carrying Amounts Balance as of July 31, 2024 $ 1,824 Impact of currency translation (12 ) Balance as of October 31, 2024 $ 1,812 The total accumulated impairment loss of the Company’s goodwill as of October 31, 2024 was $8.7 million.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Oct. 31, 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 October 31, July 31, 2024 2024 Accrued payroll and bonuses $ 1,248 $ 1,416 Accrued vacation 698 690 Accrued payroll taxes 113 59 Due to artists 203 242 Accrued expenses 326 301 Operating lease liability-current portion 128 85 Derivative liability for foreign exchange contracts 58 51 Accrued income taxes payable 76 123 Due to related party - IDT 15 2 Total accrued expenses and other current liabilities $ 2,865 $ 2,969

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Oct. 31, 2024
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 7—Stock-Based Compensation The Company recognizes stock-based compensation for stock-based awards, including stock options, restricted stock and deferred stock units (“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, the Company recognized stock-based compensation expense for our employees and non-employees as follows (in thousands): Three Months Ended 2024 2023 Stock-based compensation expense $ 379 $ 507 As of October 31, 2024, the Company’s unrecognized stock-based compensation expense was $161,000 for unvested stock options, $3,000 for unvested DSUs and $766,000 for unvested restricted stock including the remaining unpaid amounts portion from the equity portion (in the original aggregate amount of $4 million) of the GuruShots retention bonus pool. In the three months ended October 31, 2024 and 2023, awards of restricted stock and DSUs with respect to 119,000 shares and 124,000 shares, respectively, vested, and in connection with these vesting events, the Company purchased 6,903 shares and 6,328 shares respectively, of our Class B common stock from certain employees for $22,000 and $13,000, respectively, to satisfy tax withholding obligations. On September 7, 2024, DSUs award with both service and market condition with respect to approximately 170,000 shares were canceled without the reversal of compensation expenses of approximately $1.2 million because the market condition was not achieved.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Oct. 31, 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 October 31, 2024 2023 Basic weighted-average number of shares 14,086 13,975 Effect of dilutive securities: Stock options - - Non-vested restricted Class B common stock - - Deferred stock units - - Diluted weighted-average number of shares 14,086 13,975 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 October 31, 2024 2023 Stock options 868 855 Non-vested restricted Class B common stock 208 308 Deferred stock units 2 203 Shares excluded from the calculation of diluted earnings per share 1,078 1,366 For the three months ended October 31, 2024 and 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	3 Months Ended
	Oct. 31, 2024
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 9—Commitments and Contingencies Legal Proceedings The Company may from time to time be subject to other legal proceedings that arise in the ordinary course of business. Although there can be no assurance in this regard, the Company does not expect any of those legal proceedings to have a material adverse effect on the Company’s results of operations, cash flows or financial condition.

Term Loan and Revolving Credit

Term Loan and Revolving Credit Facility	3 Months Ended
	Oct. 31, 2024
Term Loan and Revolving Credit Facility [Abstract]
Term Loan and Revolving Credit Facility	Note 10—Term Loan and Revolving Credit Facility 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, $2 million was advanced in a single-cash advance on the closing date, with the remaining $5 million available for drawdown during twenty-four (24) months after closing. 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. On November 15, 2023, the Company elected to prepay the entire principal amount of $2 million. On October 28, 2024, the Company entered into an Amended and Restated Loan and Security Agreement Modification Agreement with WAB. Pursuant to the modification agreement, WAB agreed to renew the $4 million revolving credit facility for another four-year term through October 28, 2028 and remove certain provisions, including financial covenants, in respect of the $2 million term loan which has been repaid. The Amended Loan Agreement 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 October 31, 2024, there were $3.48 million of outstanding foreign exchange contracts, which reduced the available borrowing under the revolving credit facility by approximately $348,000.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Oct. 31, 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 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 October 31, 2024. There are 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 2024 2023 Revenues: Zedge Marketplace $ 6,550 $ 6,137 GuruShots 644 944 Total $ 7,194 $ 7,081 Segment income (loss) from operations: Zedge Marketplace $ 934 $ 1,654 GuruShots (1,391 ) (1,333 ) Total $ (457 ) $ 321 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: October 31, 2024 $ 6,453 $ 1,426 $ 7,879 July 31, 2024 $ 6,570 $ 1,460 $ 8,030 Total assets: October 31, 2024 $ 32,259 $ 5,939 $ 38,198 July 31, 2024 $ 32,412 $ 5,783 $ 38,195

Operating Leases

Operating Leases	3 Months Ended
	Oct. 31, 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 On August 7, 2024, the Company renewed its lease for the office space in Tel Aviv, Israel for a two-year term. Future minimum lease payments related to this lease renewal are as follows (in thousands): Years ending July 31, Operating Leases 2025 $ 48 2026 58 2027 9 Total future minimum lease payments 115 Less imputed interest 9 Total $ 106 There were no other material changes in the Company’s operating and finance leases in the three months ended October 31, 2024, as compared to the disclosure regarding such leases in the 2024 Form 10-K.

Income Taxes

Income Taxes	3 Months Ended
	Oct. 31, 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, 2025 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 intangible assets and goodwill. As of October 31, 2024, the Company had $6.1 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. 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
	Oct. 31, 2024	Oct. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (339)	$ (15)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Oct. 31, 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)	3 Months Ended
	Oct. 31, 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 suite of tools that can be used to render images from text or image prompts powered by generative AI, 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 months ended October 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2025 or any other period. The balance sheet at July 31, 2024 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, 2024 (the “2024 Form 10-K”), as filed with the U.S. Securities and Exchange Commission (the “SEC”).
Significant Accounting Policies and Estimates	Significant Accounting Policies and Estimates There have been no material changes to the Company’s significant accounting policies and critical accounting estimates described in the 2024 Form 10-K.
Use of Estimates	Use of Estimates The preparation of our 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 our 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, our financial condition or operating results will be affected. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis.
Recent Accounting Pronouncements	Recently Issued Accounting Pronouncements Segment Reporting: Income Taxes: Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.
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. The Company is party to a revenue sharing agreement with National Retail Services, Inc. (“NRS”), a wholly owned subsidiary of IDT, under which Zedge and certain of its subsidiaries (Emojipedia and GuruShots) provide a selection of their digital content for display on NR screens and share in the revenue generated from the resulting advertisements. Transactions with these related parties did not have a material impact on the consolidated balance sheets as of October 31, 2024 or July 31, 2024, or the consolidated statements of operations and comprehensive loss for the three months ended October 31, 2024 or 2023.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Oct. 31, 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 2024 2023 Zedge Marketplace Advertising revenue $ 4,874 $ 4,939 Paid subscription revenue 1,182 976 Other revenues 494 222 Total Zedge Marketplace revenue 6,550 6,137 GuruShots Digital goods and services 644 944 Total revenue $ 7,194 $ 7,081

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 31, 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 October 31, 2024 Liabilities: Foreign exchange forward contracts $ - $ 58 $ - $ 58 July 31, 2024 Liabilities: Foreign exchange forward contracts $ - $ 51 $ - $ 51 (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Oct. 31, 2024
Derivative Instruments [Abstract]
Schedule of Outstanding Contracts	The outstanding contracts at October 31, 2024, were as follows: Settlement Date U.S. Dollar Amount NOK Amount Nov-24 225,000 2,349,801 Dec-24 225,000 2,415,510 Jan-25 225,000 2,414,669 Feb-25 225,000 2,413,827 Mar-25 225,000 2,413,035 Apr-25 225,000 2,411,421 May-25 225,000 2,410,245 Total 1,575,000 16,828,508 Settlement Date U.S. Dollar Amount EUR Amount Nov-24 250,000 226,296 Dec-24 275,000 250,500 Jan-25 275,000 250,086 Feb-25 275,000 249,836 Mar-25 275,000 249,487 Apr-25 275,000 248,863 May-25 275,000 248,307 Total 1,900,000 1,723,375
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 (in thousands): October 31, July 31, (in thousands) 2024 2024 Assets and Liabilities Derivatives: Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments Foreign exchange forward contracts Accrued expenses and other current liabilities $ 58 $ 51
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 Amount of Loss Recognized on Derivatives 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 $ (18 ) $ (282 )

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	3 Months Ended
	Oct. 31, 2024
Intangible Assets and Goodwill [Abstract]
Schedule of Intangible Assets, Net	The following table presents the detail of intangible assets, net as of October 31, 2024 and July 31, 2024 (in thousands): October 31, 2024 July 31, 2024 Gross Accumulated Allocation of Net Carrying Gross Accumulated Allocation of Net Carrying Emojipedia.org and other internet domains acquired 6,711 1,454 - 5,257 6,711 $ 1,342 - 5,369 Acquired developed technology - - - - 3,950 1,422 2,528 - Customer relationships - - - - 7,800 1,403 6,397 - Trade names - - - - 3,570 537 3,033 - Total intangible assets $ 6,711 $ 1,454 - $ 5,257 $ 22,031 $ 4,704 11,958 $ 5,369
Schedule of Estimated Future Amortization Expense	Estimated future amortization expense as of October 31, 2024 is as follows (in thousands): Fiscal 2025 $ 336 Fiscal 2026 447 Fiscal 2027 447 Fiscal 2028 447 Fiscal 2029 447 Thereafter 3,133 Total $ 5,257
Schedule of Carrying Amount of Goodwill	The following table summarizes the changes in the carrying amount of goodwill for the three months ended October 31, 2024 (in thousands). Carrying Amounts Balance as of July 31, 2024 $ 1,824 Impact of currency translation (12 ) Balance as of October 31, 2024 $ 1,812

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Oct. 31, 2024
Accrued Expenses and Other Current Liabilities [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities October 31, July 31, 2024 2024 Accrued payroll and bonuses $ 1,248 $ 1,416 Accrued vacation 698 690 Accrued payroll taxes 113 59 Due to artists 203 242 Accrued expenses 326 301 Operating lease liability-current portion 128 85 Derivative liability for foreign exchange contracts 58 51 Accrued income taxes payable 76 123 Due to related party - IDT 15 2 Total accrued expenses and other current liabilities $ 2,865 $ 2,969

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Oct. 31, 2024
Stock-Based Compensation [Abstract]
Schedule of Recognized Stock-based Compensation	In our accompanying unaudited condensed consolidated statements of operations and comprehensive loss, the Company recognized stock-based compensation expense for our employees and non-employees as follows (in thousands): Three Months Ended 2024 2023 Stock-based compensation expense $ 379 $ 507

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Oct. 31, 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 October 31, 2024 2023 Basic weighted-average number of shares 14,086 13,975 Effect of dilutive securities: Stock options - - Non-vested restricted Class B common stock - - Deferred stock units - - Diluted weighted-average number of shares 14,086 13,975
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 October 31, 2024 2023 Stock options 868 855 Non-vested restricted Class B common stock 208 308 Deferred stock units 2 203 Shares excluded from the calculation of diluted earnings per share 1,078 1,366

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	3 Months Ended
	Oct. 31, 2024
Segment and Geographic Information [Abstract]
Schedule of Operating Segment 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 2024 2023 Revenues: Zedge Marketplace $ 6,550 $ 6,137 GuruShots 644 944 Total $ 7,194 $ 7,081 Segment income (loss) from operations: Zedge Marketplace $ 934 $ 1,654 GuruShots (1,391 ) (1,333 ) Total $ (457 ) $ 321
Schedule of Net Long-Lived Assets and Total Assets	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: October 31, 2024 $ 6,453 $ 1,426 $ 7,879 July 31, 2024 $ 6,570 $ 1,460 $ 8,030 Total assets: October 31, 2024 $ 32,259 $ 5,939 $ 38,198 July 31, 2024 $ 32,412 $ 5,783 $ 38,195

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Oct. 31, 2024
Operating Leases [Abstract]
Schedule of Future Minimum Lease Payments	Future minimum lease payments related to this lease renewal are as follows (in thousands): Years ending July 31, Operating Leases 2025 $ 48 2026 58 2027 9 Total future minimum lease payments 115 Less imputed interest 9 Total $ 106

Revenue (Details)

Revenue (Details) - USD ($)	Oct. 31, 2024	Jul. 31, 2024
Revenue [Line Items]
Deferred revenue balance		$ 2,900,000
Zedge Premium [Member]
Revenue [Line Items]
Deferred revenue balance	$ 247,000
Trade accounts payable		251,000
Subscriptions [Member]
Revenue [Line Items]
Deferred revenue balance	3,400,000
Active Subscribers [Member]
Revenue [Line Items]
Trade accounts payable	$ 698,000	669,000
Deferred Revenue [Member]
Revenue [Line Items]
Deferred revenue balance		$ 700,000

Revenue (Details) - Schedule of

Revenue (Details) - Schedule of Revenue Disaggregated by Segment and Type - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Schedule of Revenue Disaggregated by Segment and Type [Line Items]
Revenue	$ 7,194	$ 7,081
Advertising revenue [Member]
Schedule of Revenue Disaggregated by Segment and Type [Line Items]
Revenue	4,874	4,939
Paid subscription revenue [Member]
Schedule of Revenue Disaggregated by Segment and Type [Line Items]
Revenue	1,182	976
Other revenues [Member]
Schedule of Revenue Disaggregated by Segment and Type [Line Items]
Revenue	494	222
Total Zedge Marketplace revenue [Member]
Schedule of Revenue Disaggregated by Segment and Type [Line Items]
Revenue	6,550	6,137
Digital goods and services [Member]
Schedule of Revenue Disaggregated by Segment and Type [Line Items]
Revenue	$ 644	$ 944

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Schedule of Balance of Assets and Liabilities Measured at Fair Value on a Recurring Basis - USD ($) $ in Thousands	Oct. 31, 2024	Jul. 31, 2024
Liabilities:
Foreign exchange forward contracts	$ 58	$ 51
Fair Value, Recurring [Member] Total | Level 1 [Member]
Liabilities:
Foreign exchange forward contracts
Fair Value, Recurring [Member] Total | Level 2 [Member]
Liabilities:
Foreign exchange forward contracts	58	51
Fair Value, Recurring [Member] Total | Level 3 [Member]
Liabilities:
Foreign exchange forward contracts

Derivative Instruments (Details

Derivative Instruments (Details) - Schedule of Outstanding Contracts - Oct. 31, 2024	USD ($)	NOK (kr)	EUR (€)
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	$ 1,900,000		€ 1,723,375
Nov-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	250,000		226,296
Dec-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	275,000		250,500
Jan-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	275,000		250,086
Feb-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	275,000		249,836
Mar-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	275,000		249,487
Apr-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	275,000		248,863
May-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	275,000		€ 248,307
Foreign Exchange Contract [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	1,575,000	kr 16,828,508
Foreign Exchange Contract [Member] | Nov-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	225,000	2,349,801
Foreign Exchange Contract [Member] | Dec-24 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	225,000	2,415,510
Foreign Exchange Contract [Member] | Jan-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	225,000	2,414,669
Foreign Exchange Contract [Member] | Feb-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	225,000	2,413,827
Foreign Exchange Contract [Member] | Mar-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	225,000	2,413,035
Foreign Exchange Contract [Member] | Apr-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	225,000	2,411,421
Foreign Exchange Contract [Member] | May-25 [Member]
Schedule of Outstanding Contracts [Line Items]
Outstanding contracts	$ 225,000	kr 2,410,245

Derivative Instruments (Detai_2

Derivative Instruments (Details) - Schedule of Fair Value of Outstanding Derivative Instruments - USD ($) $ in Thousands	Oct. 31, 2024	Jul. 31, 2024
Accrued expenses and other current liabilities [Member]
Derivatives not designated or not qualifying as hedging instruments
Foreign exchange forward contracts	$ 58	$ 51

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
	Oct. 31, 2024	Oct. 31, 2023
Net Loss [Member]
Derivatives not designated or not qualifying as hedging instruments
Foreign exchange forward contracts	$ (18)	$ (282)

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Intangible Assets and Goodwill [Abstract]
Amortization	$ 112,000	$ 579,000
Goodwill impairment charge	$ 8,700,000

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details) - Schedule of Intangible Assets, Net - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 31, 2024	Jul. 31, 2024
Gross Carrying Value [Member]
Schedule of Intangible Assets, Net [Line Items]
Gross Carrying Value	$ 6,711	$ 22,031
Gross Carrying Value [Member] | Emojipedia.org and other internet domains acquired [Member]
Schedule of Intangible Assets, Net [Line Items]
Gross Carrying Value	6,711	6,711
Gross Carrying Value [Member] | Acquired developed technology [Member]
Schedule of Intangible Assets, Net [Line Items]
Gross Carrying Value		3,950
Gross Carrying Value [Member] | Customer relationships [Member]
Schedule of Intangible Assets, Net [Line Items]
Gross Carrying Value		7,800
Gross Carrying Value [Member] | Trade names [Member]
Schedule of Intangible Assets, Net [Line Items]
Gross Carrying Value		3,570
Accumulated Amortization [Member]
Schedule of Intangible Assets, Net [Line Items]
Accumulated Amortization	1,454	4,704
Accumulated Amortization [Member] | Emojipedia.org and other internet domains acquired [Member]
Schedule of Intangible Assets, Net [Line Items]
Accumulated Amortization	1,454	1,342
Accumulated Amortization [Member] | Acquired developed technology [Member]
Schedule of Intangible Assets, Net [Line Items]
Accumulated Amortization		1,422
Accumulated Amortization [Member] | Customer relationships [Member]
Schedule of Intangible Assets, Net [Line Items]
Accumulated Amortization		1,403
Accumulated Amortization [Member] | Trade names [Member]
Schedule of Intangible Assets, Net [Line Items]
Accumulated Amortization		537
Allocation of Impairment Loss [Member]
Schedule of Intangible Assets, Net [Line Items]
Allocation of Impairment Loss		11,958
Allocation of Impairment Loss [Member] | Emojipedia.org and other internet domains acquired [Member]
Schedule of Intangible Assets, Net [Line Items]
Allocation of Impairment Loss
Allocation of Impairment Loss [Member] | Acquired developed technology [Member]
Schedule of Intangible Assets, Net [Line Items]
Allocation of Impairment Loss		2,528
Allocation of Impairment Loss [Member] | Customer relationships [Member]
Schedule of Intangible Assets, Net [Line Items]
Allocation of Impairment Loss		6,397
Allocation of Impairment Loss [Member] | Trade names [Member]
Schedule of Intangible Assets, Net [Line Items]
Allocation of Impairment Loss		3,033
Net Carrying Value [Member]
Schedule of Intangible Assets, Net [Line Items]
Net Carrying Value	5,257	5,369
Net Carrying Value [Member] | Emojipedia.org and other internet domains acquired [Member]
Schedule of Intangible Assets, Net [Line Items]
Net Carrying Value	5,257	5,369
Net Carrying Value [Member] | Acquired developed technology [Member]
Schedule of Intangible Assets, Net [Line Items]
Net Carrying Value
Net Carrying Value [Member] | Customer relationships [Member]
Schedule of Intangible Assets, Net [Line Items]
Net Carrying Value
Net Carrying Value [Member] | Trade names [Member]
Schedule of Intangible Assets, Net [Line Items]
Net Carrying Value

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill (Details) - Schedule of Estimated Future Amortization Expense $ in Thousands	Oct. 31, 2024 USD ($)
Schedule of Estimated Future Amortization Expense [Abstract]
Fiscal 2025	$ 336
Fiscal 2026	447
Fiscal 2027	447
Fiscal 2028	447
Fiscal 2029	447
Thereafter	3,133
Total	$ 5,257

Intangible Assets and Goodwil_5

Intangible Assets and Goodwill (Details) - Schedule of Carrying Amount of Goodwill $ in Thousands	3 Months Ended
	Oct. 31, 2024 USD ($)
Schedule of Carrying Amount of Goodwill [Abstract]
Balance beginning	$ 1,824
Impact of currency translation	(12)
Balance ending	$ 1,812

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details)	Oct. 31, 2024	Jul. 31, 2024
Accrued Expenses and Other Current Liabilities [Abstract]
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities

Accrued Expenses and Other Cu_4

Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - USD ($) $ in Thousands	Oct. 31, 2024	Jul. 31, 2024
Schedule of Accrued Expenses and Other Current Liabilities [Abstract]
Accrued payroll and bonuses	$ 1,248	$ 1,416
Accrued vacation	698	690
Accrued payroll taxes	113	59
Due to artists	203	242
Accrued expenses	326	301
Operating lease liability-current portion	128	85
Derivative liability for foreign exchange contracts	58	51
Accrued income taxes payable	76	123
Due to related party - IDT	15	2
Total accrued expenses and other current liabilities	$ 2,865	$ 2,969

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)		3 Months Ended
	Sep. 07, 2024	Oct. 31, 2024	Oct. 31, 2023
Stock-Based Compensation [Line Items]
Award options service period		4 years
Restricted stock units period		3 years
Aggregate amount of shares		4,000,000
Unvested restricted stock amount	1,200,000
Unvested Stock Option [Member]
Stock-Based Compensation [Line Items]
Unrecognized stock-based compensation expense (in Dollars)		$ 161,000
Deferred Stock Units [Member]
Stock-Based Compensation [Line Items]
Unrecognized stock-based compensation expense (in Dollars)		3,000
Remaining shares	170,000
Non Vested Restricted Shares [Member]
Stock-Based Compensation [Line Items]
Unrecognized stock-based compensation expense (in Dollars)		766,000
Class B Common Stock [Member]
Stock-Based Compensation [Line Items]
Payment, Tax Withholding, Share-Based Payment Arrangement (in Dollars)		$ 22,000	$ 13,000
Class B Common Stock [Member] | Deferred Stock Units [Member]
Stock-Based Compensation [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period		119,000	124,000
Shares purchased		6,903	6,328

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - Schedule of Recognized Stock-based Compensation - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Schedule of Recognized Stock-based Compensation [Abstract]
Stock-based compensation expense	$ 379	$ 507

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
	Oct. 31, 2024	Oct. 31, 2023
Schedule of Weighted-Average Number of Shares Basic and Diluted [Abstract]
Basic weighted-average number of shares	14,086	13,975
Effect of dilutive securities:
Stock options
Non-vested restricted Class B common stock
Deferred stock units
Diluted weighted-average number of shares	14,086	13,975

Earnings Per Share (Details) _2

Earnings Per Share (Details) - Schedule of the Dilutive Earnings per Share - shares shares in Thousands	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Schedule of the Dilutive Earnings per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	1,078	1,366
Stock Options [Member]
Schedule of the Dilutive Earnings per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	868	855
Non-vested Restricted Class B Common Stock [Member]
Schedule of the Dilutive Earnings per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	208	308
Deferred Stock Units [Member]
Schedule of the Dilutive Earnings per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share	2	203

Term Loan and Revolving Credi_2

Term Loan and Revolving Credit Facility (Details) - USD ($)					3 Months Ended
	Oct. 28, 2024	Nov. 15, 2023	May 11, 2023	Oct. 28, 2022	Oct. 31, 2024	May 30, 2018	Nov. 16, 2016
Term Loan and Revolving Credit Facility [Line Items]
Term loan facility				$ 7,000,000
Revolving credit	$ 4,000,000			$ 4,000,000
Expiring date				Oct. 28, 2024
Advanced loan	$ 2,000,000	$ 2,000,000			$ 2,000,000
Single-cash advance					5,000,000
Remaining loan			$ 5,000,000
Outstanding loan			$ 0		3,480,000
Borrowing under the revolving credit facility					$ 348,000		$ 5
Revolving credit facility						$ 7,500,000
Foreign exchange reserve percentage					10%
Minimum [Member]
Term Loan and Revolving Credit Facility [Line Items]
Prime rate				0.50%
Maximum [Member]
Term Loan and Revolving Credit Facility [Line Items]
Floor rate				4%

Segment and Geographic Inform_3

Segment and Geographic Information (Details)	3 Months Ended
	Oct. 31, 2024
Zedge Marketplace [Member]
Segment and Geographic Information [Line Items]
Reportable segments	2
GuruShots [Member]
Segment and Geographic Information [Line Items]
Reportable segments	2

Segment and Geographic Inform_4

Segment and Geographic Information (Details) - Schedule of Operating Segment Revenue and Income (loss) from Operations - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Revenues:
Total revenues	$ 7,194	$ 7,081
Segment income (loss) from operations:
Segment income (loss) from operations	(457)	321
Zedge Marketplace [Member]
Revenues:
Total revenues	6,550	6,137
Segment income (loss) from operations:
Segment income (loss) from operations	934	1,654
GuruShots [Member]
Revenues:
Total revenues	644	944
Segment income (loss) from operations:
Segment income (loss) from operations	$ (1,391)	$ (1,333)

Segment and Geographic Inform_5

Segment and Geographic Information (Details) - Schedule of Net Long-Lived Assets and Total Assets - USD ($) $ in Thousands	Oct. 31, 2024	Jul. 31, 2024
Long-lived assets, net:
Long-lived assets, net:	$ 7,879	$ 8,030
Total assets:
Total assets	38,198	38,195
United States [Member]
Long-lived assets, net:
Long-lived assets, net:	6,453	6,570
Total assets:
Total assets	32,259	32,412
Foreign [Member]
Long-lived assets, net:
Long-lived assets, net:	1,426	1,460
Total assets:
Total assets	$ 5,939	$ 5,783

Operating Leases (Details)

Operating Leases (Details) - USD ($)	Oct. 31, 2024	Jul. 31, 2024
Operating Leases [Abstract]
Operating lease right-of-use assets	Other assets	Other assets
Operating lease right of use assets	$ 287,000	$ 214,000

Operating Leases (Details) - Sc

Operating Leases (Details) - Schedule of Future Minimum Lease Payments $ in Thousands	Oct. 31, 2024 USD ($)
Schedule of Future Minimum Lease Payments [Abstract]
2025	$ 48
2026	58
2027	9
Total future minimum lease payments	115
Less imputed interest	9
Total	$ 106

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Oct. 31, 2024 USD ($)
Income Taxes [Abstract]
Deferred tax assets	$ 6.1
Deferred tax assets valuation allowance	$ 1.8