Rafael (RFL) 10-Q 11 Jun 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Apr. 30, 2018	Jun. 11, 2018
Entity Registrant Name	Rafael Holdings, Inc.
Entity Central Index Key	1,713,863
Amendment Flag	false
Trading Symbol	RFL
Current Fiscal Year End Date	--07-31
Document Type	10-Q
Document Period End Date	Apr. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Filer Category	Accelerated Filer
Class A common stock
Entity Common Stock, Shares Outstanding		787,163
Class B common stock
Entity Common Stock, Shares Outstanding		11,752,973

Consolidated and Combined Balan

Consolidated and Combined Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Current assets:
Cash and cash equivalents	$ 10,605	$ 11,756
Trade accounts receivable, net of allowance for doubtful accounts of $82 at April 30, 2018 and July 31, 2017	406	264
Marketable securities	30,942
Due from Rafael Pharmaceuticals	1,600
Prepaid expenses and other current assets	645	147
Total current assets	44,198	12,167
Property and equipment, net	50,554	51,160
Investments - Rafael Pharmaceuticals	11,700	13,478
Investments - Other	5,949
Deferred income tax assets, net	8	8,859
Patents	180
In-process research and development	1,575
Other assets	920	540
Total assets	115,084	86,204
Current liabilities:
Trade accounts payable	362	115
Accrued expenses	296	213
Other current liabilities	27	35
Total current liabilities	685	363
(Due from) due to related parties	(621)	23,693
Other liabilities	70	70
Total liabilities	134	24,126
Commitments and contingencies
Rafael Holdings, Inc. stockholders’/members' equity:
Group equity		50,427
Additional paid in capital	103,509
Accumulated deficit	(192)
Accumulated other comprehensive income	1,998	2,316
Total Rafael Holdings, Inc. stockholders’/members' equity	105,441	52,743
Noncontrolling interests	9,509	9,335
Total equity	114,950	62,078
Total liabilities and equity	115,084	86,204
Class A common stock
Rafael Holdings, Inc. stockholders’/members' equity:
Common stock value	8
Class B common stock
Rafael Holdings, Inc. stockholders’/members' equity:
Common stock value	$ 118

Consolidated and Combined Bala3

Consolidated and Combined Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Allowance for doubtful accounts	$ 82	$ 82
Class A common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	787,163
Common stock, shares outstanding	787,163
Class B common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	11,754,835
Common stock, shares outstanding	11,754,835

Consolidated and Combined State

Consolidated and Combined Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Revenues:
Rental - Third Party	$ 400	$ 219	$ 1,085	$ 661
Rental - Related Party	447	854	1,442	2,680
Parking	246	209	630	677
Total revenues	1,093	1,282	3,157	4,018
Costs and expenses:
Selling, general and administrative	1,402	1,035	4,481	2,667
Depreciation and amortization	422	411	1,276	1,233
(Loss) income from operations	(731)	(164)	(2,600)	118
Interest income	(71)	(1)	(75)	(8)
Net losses (gains) resulting from foreign exchange transactions	28	(136)	(90)	(167)
Net gains on sales of marketable securities	(24)		(24)	(167)
Net loss on equity investments			104
Gain on disposal of bonus shares			(246)
(Loss) income before income taxes	(664)	(27)	(2,269)	293
(Benefit from) provision for income taxes	(5)	38	8,438	68
Net (loss) income	(659)	(65)	(10,707)	225
Net loss attributable to noncontrolling interests	128		304
Net (loss) income attributable to Rafael Holdings, Inc.	$ (531)	$ (65)	$ (10,403)	$ 225
(Loss) earnings per share attributable to Rafael Holdings, Inc. common stockholders:
Basic	$ (0.04)	$ (0.01)	$ (0.83)	$ 0.02
Diluted	$ (0.04)	$ (0.01)	$ (0.83)	$ 0.02
Weighted average number of shares used in calculation of (loss) earnings per share:
Basic	12,542	12,542	12,542	12,542
Diluted	12,542	12,542	12,542	12,542

Consolidated and Combined Stat5

Consolidated and Combined Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (531)	$ (65)	$ (10,403)	$ 225
Other comprehensive (loss) income:
Unrealized loss on marketable securities	(311)		(311)
Foreign currency translation adjustments	(85)	22	(10)	27
Comprehensive (loss) income	(1,055)	(43)	(11,028)	252
Comprehensive loss attributable to noncontrolling interests	29		29
Comprehensive (loss) income attributable to Rafael Holdings, Inc.	$ (1,026)	$ (43)	$ (10,999)	$ 252

Consolidated and Combined Stat6

Consolidated and Combined Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Operating activities
Net (loss) income	$ (10,403)	$ 225
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	1,276	1,256
Deferred income taxes	8,851	(72)
Realized gain on disposal of bonus shares	(246)
Realized gain on marketable securities	(24)
Non-cash compensation	616
Interest in the equity of investments	(80)
Change in assets and liabilities:
Accounts and rents receivable	(142)	(40)
Other current assets and prepaid expenses	(392)	(117)
Other assets	(355)	(298)
Accounts payable and accrued expenses	223	155
Other current liabilities	(8)	(7)
Due from related parties	(386)	(1,758)
Other liabilities		178
Net cash used in operating activities	(1,070)	(478)
Investing activities
Purchases of property and equipment	(572)	(1,590)
Proceeds from sale and maturity of marketable securities	436
Purchase of investments		(8,300)
Net cash used in investing activities	(136)	(9,890)
Financing activities
Proceeds from sale of member interests in CS Pharma Holdings, LLC		10,000
Cash advances from related parties, net of repayments		9,767
Net cash used in financing activities		19,767
Effect of exchange rate changes on cash and cash equivalents	55	(9)
Net (decrease) increase in cash and cash equivalents	(1,151)	9,390
Cash and cash equivalents at beginning of period	11,756	2,339
Cash and cash equivalents at end of period	10,605	11,729
Supplemental Schedule of Non-Cash Financing and Investing Activities
Cash payments made for taxes
Cash payments made for interest

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Apr. 30, 2018
Description of Business and Basis of Presentation [Abstract]
Description of Business and Basis of Presentation	Note 1 — Description of Business and Basis of Presentation Description of Business Rafael Holdings, Inc. (“Rafael Holdings”), a Delaware corporation, is comprised of all of the accounts of the following wholly-owned subsidiaries: IDT 225 Old NB Road, LLC, a Delaware Limited Liability Company; IDT Realty LLC, a New Jersey Limited Liability Company; I.D.T. R.E. Holdings, Ltd., an Israeli Company; Broad Atlantic Associates LLC, a Delaware Limited Liability Company; Broad Atlantic Realty LLC, a Delaware Limited Liability Company; Hillview Avenue Realty, a Delaware Limited Liability Company; Hillview Avenue Realty JV, a Delaware Limited Liability Company; IDT Capital Real Estate Holdings LLC, a Delaware Limited Liability Company; and IDT Capital, Inc., a Delaware Corporation. Additionally, it includes the accounts of the 90% owned IDT-Rafael Holdings, LLC, the 50% owned CS Pharma Holdings, LLC, and the majority-owned Lipomedix Pharmaceuticals, Ltd., an Israeli Company. The “Company” in these financial statements refers to Rafael Holdings on this consolidated and combined basis as if Rafael Holdings existed and owned the above interests in these entities in all periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation or combination. Basis of Presentation The accompanying unaudited consolidated and combined financial statements the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended April 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2018. The balance sheet at July 31, 2017 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 combined financial statements and footnotes thereto included elsewhere in the Registration Statement on Form 10-12G filed on February 20, 2018. 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 year 2017 refers to the fiscal year ending July 31, 2017). The Company’s Spin-Off The Company was formerly a subsidiary of IDT Corporation (“IDT”). On March 26, 2018, IDT spun-off the Company to IDT’s stockholders and the Company became an independent public company through a pro rata distribution of the Company’s common stock held by IDT to IDT’s stockholders (the “Spin-Off”). As a result of the Spin-Off, each of IDT’s stockholders received: (i) one share of the Company’s Class A common stock for every two shares of IDT’s Class A common stock held of record on March 13, 2018 (the “Record Date”), and (ii) one share of the Company’s Class B common stock for every two shares of IDT’s Class B common stock held of record on the Record Date. On March 26, 2018, 787,163 shares of the Company’s Class A common stock, and 11,754,835 shares of the Company’s Class B common stock were issued and outstanding, which includes 114,945 restricted stock units issued to employees and consultants in connection with the spin. The Company entered into various agreements with IDT prior to the Spin-Off including a Separation and Distribution Agreement to effect the separation and provide a framework for the Company’s relationship with IDT after the Spin-Off, and a Transition Services Agreement, which provides for certain services to be performed by IDT to facilitate the Company’s transition into a separate publicly-traded company. These agreements provide for, among other things, (1) the allocation between the Company and IDT of employee benefits, taxes and other liabilities and obligations attributable to periods prior to the Spin-Off, (2) transitional services to be provided by IDT relating to human resources and employee benefits administration, and (3) finance, accounting, tax, investor relations and legal services to be provided by IDT to the Company following the Spin-Off. In addition, the Company entered into a Tax Separation Agreement with IDT, which sets forth the responsibilities of the Company and IDT with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the Spin-Off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods.

Acquisition of Lipomedix Pharma

Acquisition of Lipomedix Pharmaceuticals Ltd. ("Lipomedix")	9 Months Ended
	Apr. 30, 2018
Acquisition of Lipomedix Pharmaceuticals Ltd. ("Lipomedix") [Abstract]
Acquisition of Lipomedix Pharmaceuticals Ltd. ("Lipomedix")	Note 2 — Acquisition of Lipomedix Pharmaceuticals Ltd. (“Lipomedix”)- Lipomedix is a development-stage, privately held Israeli company focused on the development of an innovative, safe and effective cancer therapy based on liposome delivery. As a result of its initial $100,000 investment, the Company received approximately 3.2% of the common shares outstanding. During the second quarter of fiscal year 2017, the Company made an additional $300,000 investment in Lipomedix, increasing its ownership to 13.95% of the issued and outstanding ordinary shares, as well as providing Lipomedix with an advance of $200,000. During the fourth quarter of fiscal year 2017, the Company made an additional $1.1 million investment, inclusive of the $200,000 advance, in Lipomedix, increasing its ownership to 38.86% of the issued share capital of the issued and outstanding ordinary shares. As such, the Company began accounting for this investment under the equity method as of and for the fourth quarter of fiscal year 2017. During the fourth quarter of fiscal year 2017, the Company recognized approximately $113,000 as its proportionate share of Lipomedix's loss. As of July 31, 2017, Lipomedix had assets totaling $1.2 million and liabilities totaling $77,000. On November 16, 2017, the Company exercised its option to purchase additional shares in Lipomedix for $900,000, which increased its ownership to 50.6% of the issued and outstanding ordinary shares. As such, the Company began consolidating this investment as of and for the second quarter of fiscal year 2018.

Marketable Securities

Marketable Securities	9 Months Ended
	Apr. 30, 2018
Marketable Securities [Abstract]
Marketable Securities	Note 3 — Marketable Securities The following is a summary of marketable securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: April 30, 2018: Certificates of deposit* $ 13,243 $ — $ (33 ) $ 13,210 Federal Government Sponsored Enterprise notes 3,188 — (28 ) 3,160 International agency notes 522 — (17 ) 505 Mutual funds 5,453 — (70 ) 5,383 Corporate bonds 3,068 — (65 ) 3,003 U.S. Treasury notes 5,358 — (98 ) 5,260 Municipal bonds 421 — — 421 Total $ 31,253 $ — $ (311 ) $ 30,942 * Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market. Proceeds from maturities and sales of available-for-sale securities were $436,000 and $0 in the three and nine months ended April 30, 2018 and 2017, respectively. The gross realized gains that were included in earnings as a result of sales were $24,000 in the three and nine months ended April 30, 2018, and $0 in the three and nine months ended April 30, 2017. There were no gross realized losses that were included in earnings as a result of sales in the three and nine months ended April 30, 2018 and 2017. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities. The contractual maturities of the Company’s available-for-sale debt securities at April 30, 2018 were as follows: Fair Value (in thousands) Within one year $ 13,465 After one year through five years 12,335 After five years through ten years — After ten years — Total $ 25,800 The following available-for-sale securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized: Unrealized Losses Fair Value (in thousands) April 30, 2018: Certificates of deposit $ (33 ) $ 10,403 Federal Government Sponsored Enterprise notes (28 ) 3,160 International agency notes (17 ) 505 Corporate bonds (70 ) 5,369 Equity (65 ) 3,003 U.S. Treasury notes (98 ) 5,260 Municipal bonds — 421 Total $ (311 ) $ 28,121 The Company did not own any marketable securities as of July 31, 2017.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Apr. 30, 2018
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 4 — Fair Value Measurements The following table presents the balance of assets measured at fair value on a recurring basis: (in thousands) Level 1 (1) Level 2 (2) Level 3 (3) Total April 30, 2018 Available-for-sale securities: Marketable Securities $ 10,643 $ 20,299 $ — $ 30,942 Rafael Pharmaceuticals convertible promissory notes — — 6,300 6,300 Total $ 10,643 $ 20,299 $ 6,300 $ 37,242 July 31, 2017 Available-for-sale securities: Rafael Pharmaceuticals convertible promissory notes $ — $ — $ 6,300 $ 6,300 Total $ — $ — $ 6,300 $ 6,300 (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 At April 30, 2018 and July 31, 2017, the Company did not have any liabilities measured at fair value on a recurring basis. At April 30, 2018 and July 31, 2017, the fair value of the Rafael Pharmaceuticals convertible promissory notes, which were classified as Level 3, was estimated based on a valuation of Rafael Pharmaceuticals by reference to recent transactions in its securities, the September 2016 Series D Convertible Note investment, as well as utilizing a discounted cash flow technique under the Income Approach and other factors that could not be corroborated by the market. The following table summarizes the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). There were no liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in the three and nine months ended April 30, 2018 or 2017. Three Months Ended Nine Months Ended 2018 2017 2018 2017 (in thousands) Balance, beginning of period $ 6,300 $ 4,200 $ 6,300 $ 2,000 Purchases — — — 2,200 Balance, end of period $ 6,300 $ 4,200 $ 6,300 $ 4,200 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ — $ — $ — $ — At April 30, 2018 and July 31, 2017, the Company had $5.9 million and $0, respectively, in investments in hedge funds and in securities in another entity that are not liquid, which were included in “Investments - Other” in the accompanying consolidated balance sheets. The Company’s related investments are accounted for using the cost method; therefore these investments are not measured at fair value. Fair Value of Other Financial Instruments The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. Cash and cash equivalents, other current assets, customer deposits and other current liabilities. Other assets and other liabilities. The Company’s financial instruments include accounts and rents receivable, accounts payable, and due from related parties. The recorded carrying amount of accounts and rents receivable, accounts payable and due from related approximates their fair value due to their short-term nature. Other than noted above, the Company did not have any other assets or liabilities that were measured at fair value on a recurring basis as of April 30, 2018 or July 31, 2017.

(Loss) Earnings Per Share

(Loss) Earnings Per Share	9 Months Ended
	Apr. 30, 2018
(Loss) Earnings Per Share [Abstract]
(Loss) Earnings Per Share	Note 5 — (Loss) Earnings Per Share Basic (loss) 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 (loss) 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 and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share attributable to the Company’s common stockholders consists of the following: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Basic weighted-average number of shares 12,541,998 12,541,998 12,541,998 12,541,998 In the three and nine months ended April 30, 2018 and in the three months ended April 30, 2017, the diluted loss per share computation equals basic loss per share because the Company had a net loss and the impact of the assumed exercise of stock options and the vesting of restricted stock would have been anti-dilutive. For all periods prior to the Spin-Off, the Company utilized the number of shares distributed in the Spin-Off as the denominator for historical earnings per share for each period presented.

Establishment of Valuation Allo

Establishment of Valuation Allowance for Deferred Tax Asset	9 Months Ended
	Apr. 30, 2018
Establishment of Valuation Allowance for Deferred Tax Asset / Income Taxes [Abstract]
Establishment of Valuation Allowance for Deferred Tax Asset	Note 6 — Establishment of Valuation Allowance for Deferred Tax Asset Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the amendments to related party leases effective August 1, 2017, which, in comparison to fiscal year 2017, will reduce revenues by approximately $1.7 million annually through 2025. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections for future growth. On the basis of this evaluation, a valuation allowance of $8.4 million was recorded to reserve for the entirety of the Company’s domestic deferred tax asset during the first quarter of fiscal 2018. The amount of the deferred tax asset considered realizable could be adjusted if estimates of future taxable income during the carryforward period are increased, or if additional weight is given to subjective evidence, such as the Company’s projections for growth.

Investment in Rafael Pharmaceut

Investment in Rafael Pharmaceuticals, Inc. ("Rafael Pharmaceuticals")	9 Months Ended
	Apr. 30, 2018
Investment in Rafael Pharmaceuticals, Inc. ("Rafael Pharmaceuticals") [Abstract]
Investment in Rafael Pharmaceuticals, Inc. ("Rafael Pharmaceuticals")	Note 7 — Investment in Rafael Pharmaceuticals, Inc. (“Rafael Pharmaceuticals”) Rafael Pharmaceuticals is a clinical stage, oncology-focused pharmaceutical company committed to the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. On December 7, 2015, IDT approved an investment of up to $10 million in Rafael Pharmaceuticals. $2 million of this investment was funded as of July 31, 2016, as follows: $500,000 funded upon signing the Subscription and Loan Agreement during the second quarter of fiscal year 2016; and $1.5 million funded during the third quarter of fiscal year 2016. The initial $2 million investment was in exchange for Rafael Pharmaceuticals 3.5% convertible promissory notes due in fiscal year 2018. To date, the Company has not accrued interest on this note, as collection cannot be reasonably assured; however, the Company has received an independent appraisal indicating the fair value of its investment in Rafael Pharmaceuticals exceeds the carrying value. On September 16, 2016, the Company made an additional $8 million investment in exchange for Rafael Pharmaceuticals' 3.5% convertible promissory notes due in fiscal year 2018. The Company owns its interests/rights in Rafael Pharmaceuticals through a 90%-owned non-operating subsidiary, IDT-Rafael Holdings, LLC. (“IDT-Rafael Holdings”). IDT-Rafael Holdings holds warrants to purchase a significant stake in Rafael Pharmaceuticals, as well as other equity and governance rights in Rafael Pharmaceuticals, and owns 50% of CS Pharma Holdings, LLC (“CS Pharma”), a non-operating entity which holds the convertible debt and other rights to purchase equity interests in Rafael Pharmaceuticals. Those interests/rights include: 1. $10,000,000 of Series D Convertible Notes of Rafael Pharmaceuticals held by CS Pharma; 2. A warrant to purchase 56% of the capital stock of Rafael Pharmaceuticals — the right to exercise the first $10,000,000 worth of the warrant is held by CS Pharma; and the remainder is held directly by IDT-Rafael Holdings; and 3. Certain governance rights, including appointment of directors. On March 2, 2017, Howard Jonas, IDT’s Chairman of the Board, and Chairman of the Board of Rafael Pharmaceuticals, purchased 10% of IDT-Rafael Holdings for a purchase price of $1 million, which represented 10% of the Company’s cost basis in IDT-Rafael Holdings. Accordingly, we hold an effective 45% indirect interest in the assets held by CS Pharma, including its cash. Separately, Howard Jonas and Deborah Jonas jointly own $525,000 of Series C Convertible Notes of Rafael Pharmaceuticals, and The Howard S. and Deborah Jonas Foundation owns $525,000 of Series C Notes of Rafael Pharmaceuticals. Additionally, the Company previously owned the contractual right to receive "Bonus Shares" for an additional 10% of the outstanding capital stock of Rafael Pharmaceuticals that are issued only upon achieving certain milestones. If the milestones are met, Bonus Shares are to be issued without any additional payment. On September 12, 2017, IDT’s Compensation Committee, Corporate Governance Committee and Board of Directors approved a compensatory arrangement with Howard S. Jonas related to this right to receive additional Rafael Pharmaceutical shares. In connection with this arrangement, IDT-Rafael Holdings distributed this right to its members such that the Company received the right to 9% of the outstanding capital stock of Rafael Pharmaceuticals and Mr. Jonas received the right to 1% of the outstanding capital stock of Rafael Pharmaceuticals. In addition, as compensation for assuming the role of Chairman of the Board of the Company, and to create additional incentive to contribute to its success, on September 19, 2017, the Company assigned its right to receive 9% of the outstanding capital stock of Rafael Pharmaceuticals to Mr. Jonas. The right is further transferable by Mr. Jonas, in his discretion. The Rafael Pharmaceuticals Series D Note earns interest at 3.5% per annum, with principal and accrued interest due and payable on September 16, 2018. The Series D Note is convertible at the holder’s option into shares of Rafael Pharmaceuticals’ Series D Preferred Stock. The Series D Note also includes a mandatory conversion into Rafael Pharmaceuticals common stock upon a qualified initial public offering, and conversion at the holder’s option upon an unqualified financing event. In all cases, the Series D Note conversion price is based on the applicable financing purchase price. IDT-Rafael Holdings and CS Pharma were issued warrants to purchase shares of capital stock of Rafael Pharmaceuticals representing up to 56% of the then issued and outstanding capital stock of Rafael Pharmaceuticals, on an as-converted and fully diluted basis. The right to exercise warrants as to the first $10 million thereof is held by CS Pharma and the remainder is owned by IDT-Rafael Holdings. The warrant expires on December 31, 2020. Currently, if the Company desires to raise additional financing from unaffiliated parties in connection with its exercise of its warrant or other current rights to invest in Rafael Pharmaceuticals (but not including the Rafael Pharmaceuticals rights held by CS Pharma), it first must give the other CS Pharma holders the opportunity to provide such financing on a pro rata basis. The exercise price of the warrant is the lower of 70% of the price sold in an equity financing, or $1.25 per share, subject to certain adjustments. The minimum initial and subsequent exercises of the warrant shall be for such number of shares that will result in at least $5 million of gross proceeds to Rafael Pharmaceuticals, or such lesser amount as represents 5% of the outstanding capital stock of Rafael Pharmaceuticals, or such lesser amount as may then remain unexercised. The warrant will expire upon the earlier of December 31, 2020 or a qualified initial public offering or liquidation event of Rafael Pharmaceuticals. As of April 30, 2018, and based on current shares issued and outstanding of Rafael Pharmaceuticals, the Company would need to pay approximately $71 million to exercise the warrant in full and approximately $56 million to purchase a 51% controlling stake. On an as-converted and fully diluted basis (for all convertible securities of Rafael Pharmaceuticals outstanding), the Company would need approximately $122 million to exercise the warrant in full and approximately $98 million to purchase a 51% controlling stake in Rafael Pharmaceuticals. Given the Company’s anticipated available cash upon the Spin-Off, the Company would not be able to exercise the warrant in its entirety and the Company may never be able to exercise the warrant in full. The Company serves as the managing member of IDT-Rafael Holdings and IDT-Rafael Holdings serves as the managing member of CS Pharma, with broad authority to make all key decisions regarding their respective holdings. Any distributions that are made to CS Pharma from Rafael Pharmaceuticals that are in turn distributed by CS Pharma, will need to be made pro rata to all members, which would entitle IDT-Rafael Holdings to 50% (based on current ownership) of such distributions. Similarly, if IDT-Rafael Holdings were to distribute proceeds it receives from CS Pharma, it would do so on a pro rata basis, entitled the Company to 90% (based on current ownership) of such distributions. The Company’s investment in Rafael Pharmaceuticals, which is included in “Investments – Rafael Pharmaceuticals” in the accompanying consolidated and combined balance sheets, consists of the following: (in thousands) (Unaudited) July 31, Convertible promissory note (at fair value) $ 6,300 $ 6,300 Warrants (at cost) 5,400 5,400 Right to receive additional shares (at cost) — 400 Total investment in Rafael Pharmaceuticals $ 11,700 $ 12,100 As of March 26, 2017, IDT had provided Rafael Pharmaceuticals with $1.6 million in working capital financing that remained outstanding. The related receivable from Rafael Pharmaceutical was transferred by IDT to the Company as of the Spin-Off. Rafael Pharmaceuticals is a variable interest entity; however, the Company has determined that it is not the primary beneficiary as is does not have the power to direct the activities of Rafael Pharmaceuticals that most significantly impact Rafael Pharmaceuticals’ economic performance. On May 18, 2018, the Company entered into an arrangement with Rafael Pharmaceuticals to lend Rafael Pharmaceuticals up to $1.7 million at an interest rate of 3.5%, compounded quarterly. At Rafael Pharmaceuticals’ request, and in the Company’s discretion, the Company will advance amounts to the borrower, not to exceed $1.7 million in the aggregate. This loan is due and payable with 30 days’ notice at the lender’s demand, not to occur before June 30, 2018. As of June 11, 2018, $800,000 had been advanced to Rafael Pharmaceuticals under this arrangement.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Apr. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Note 8 — Related Party Transactions The Company maintains a balance due from/to related parties, which relate to rental income paid by various companies under common control to IDT to the Company, partially offset by charges for services provided to the Company by IDT and payroll costs for the Company's personnel that are paid by IDT. Historically, this also related to cash advances for investments. On March 26, 2018, IDT transferred assets to Rafael such that, at the time of the Spin-Off, we had approximately $44 million in cash and cash equivalents and liquid marketable securities and approximately $4.0 million in interests in hedge funds. Additionally, IDT transferred approximately $2.0 million in securities in another entity that are not liquid. The cash and cash equivalents and liquid marketable securities figure includes $10 million held in CS Pharma, a controlled entity of which we are an effective 45% owner. Additionally, $23.6 million in outstanding intercompany debt between IDT and Rafael Holdings as of the distribution date was converted to equity and there was no indebtedness from Rafael Holdings to IDT immediately following the Spin-Off. Prior to the Spin-Off, IDT advanced $900,000 and $9.4 million to the Company during the nine months ended April 30, 2018 and April 30, 2017, respectively to invest in Rafael Pharmaceuticals and Lipomedix. Prior to the Spin-Off and in conjunction with a Transition Services Agreement subsequent to the Spin-Off, IDT charges the Company for certain transactions and allocates routine expenses for, among other things: (1) the allocation between the Company and IDT of employee benefits, taxes and other liabilities and obligations; (2) services provided by IDT relating to human resources and employee benefits administration; (3) the allocation of responsibilities relating to employee compensation and benefit plans and programs and other related matters; and (4) finance, accounting, tax and legal services provided by IDT to the Company. In all periods presented prior to the Spin-Off, the Company was included in IDTs consolidated federal income tax return. The change in the Company’s liability to IDT was as follows: Nine Months Ended (in thousands) 2018 (unaudited) 2017 (unaudited) Balance at beginning of period $ 23,693 $ 15,145 Payments by IDT on behalf of the Company 385 703 Rental revenues earned from IDT (1,468 ) (2,461 ) Cash repayments, net of advances 885 19,767 Capitalized investment by IDT (24,116 ) — Balance at end of period $ (621 ) $ 33,154 The Company amended all of its related party leases as of August 1, 2017. The related party leases expire in April 2025 and are for 88,631 square feet and include two parking spots per thousand square feet of space leased at 520 Broad Street and for 12,400 square feet in Israel. The annual rent will be approximately $2.0 million. The related parties have the right to terminate theses leases upon four months’ notice, and upon early termination will pay a termination penalty equal to 25% of the portion of the rent due over the course of the remaining term. Related parties will have the right to lease an additional 25,000 square feet in the building located at 520 Broad Street on the same terms as the base lease, and other rights to a further 25,000 square feet should all available space be leased to other tenants. Upon expiration of the lease, these related parties have the right to renew the leases for another five years. On April 26, 2018, the Board of Directors of Rafael Holdings, Inc. (the “Company”) and its Corporate Governance Committee approved an arrangement with Howard S. Jonas, the Chairman of the Board, Chief Executive Officer and controlling stockholder of the Company, related to the purchase of shares of Class B common stock of the Company by Mr. Jonas. Under the arrangement, subject to approval of the stockholders of the Company, Mr. Jonas has agreed to purchase 1,254,200 shares of Class B common stock (representing ten percent of the issued and outstanding equity of the Company) at a price per share of $6.89, which was the closing price for the Class B common stock on the New York Stock Exchange on April 26, 2018 (the last closing price before approval of the arrangement) for an aggregate purchase price of $8,641,438. The investment is intended to provide the Company with working capital and to support growth initiatives, including additional investments in the real estate and pharmaceutical industries and in companies in which we own interests. The arrangement is subject to approval of the stockholders of the Company, and no shares will be issued unless such approval is obtained. Mr. Jonas has agreed to vote in favor of the arrangement when it is submitted to the stockholders. The Company has agreed to present the matter to its stockholders at the next meeting of stockholders to be held. Mr. Jonas paid $864,144 of the purchase price (10.0% of the total purchase price) on May 31, 2018. The remainder of the purchase price will be payable following approval of the stockholders of the Company, and the shares will be issued upon payment of in full. On May 18, 2018, the Company entered into an arrangement with Rafael Pharmaceuticals to lend Rafael Pharmaceuticals up to $1.7 million at an interest rate of 3.5%, compounded quarterly. At Rafael Pharmaceuticals’ request, and in the Company’s discretion, the Company will advance amounts to the borrower, not to exceed $1.7 million in the aggregate. This loan is due and payable with 30 days’ notice at the lender’s demand, not to occur before June 30, 2018. As of June 11, 2018, $800,000 had been advanced to Rafael Pharmaceuticals under this arrangement.

Income Taxes

Income Taxes	9 Months Ended
	Apr. 30, 2018
Establishment of Valuation Allowance for Deferred Tax Asset / Income Taxes [Abstract]
Income Taxes	Note 9 — Income Taxes Tax Cuts and Jobs Act On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018”, which is commonly referred to as “The Tax Cuts and Jobs Act” (the “Tax Act”). The Tax Act reduces the U.S. federal statutory corporate tax rate from 35.0% to 21.0% effective January 1, 2018, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred (“transition tax”), and makes other changes to the U.S. income tax code. Due to the Company’s July 31 fiscal year-end, the lower corporate income tax rate is phased in, resulting in a blended U.S. federal statutory tax rate of approximately 26.9% for the Company’s fiscal year ending July 31, 2018, and 21.0% for the Company’s fiscal years thereafter. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), expressing its views regarding the Financial Accounting Standards Board (“FASB”)’s Accounting Standards Codification 740, Income Taxes As of April 30, 2018, the Company had not completed its accounting for the income tax effects of the Tax Act. The reduction in the corporate tax rate is not expected to impact the Company’s results of operations or financial position in the foreseeable future because the income tax benefit from the reduced tax rate will be offset by the valuation allowance. The transition tax is based on total post-1986 earnings and profits which were previously deferred from U.S. income taxes. The Company expects to utilize net operating loss carryforwards to offset any transition tax that it may incur. Therefore, the Company did not record any provisional income tax expense for the transition tax for its foreign subsidiaries. At April 30, 2018, the undistributed earnings of the Company’s foreign subsidiaries continued to be permanently reinvested. The Company is currently reevaluating the need to repatriate future earnings of its foreign subsidiaries due to the reduction in cash, cash equivalents, and marketable securities because of the Rafael Spin-Off. The Company has not provided for additional income or withholding taxes for the undistributed earnings or for any additional outside basis differences with respect to the foreign entities. The Company continues to review the anticipated impacts of the global intangible low taxed income (“GILTI”) and base erosion anti-abuse tax (“BEAT”), which are not effective until August 1, 2018. The Company has not recorded any impact associated with either GILTI or BEAT in the nine months ended April 30, 2018. The Company anticipates that its assumptions and estimates may change as a result of future guidance and interpretation from the Internal Revenue Service, the SEC, the FASB, and various other taxing jurisdictions. In particular, the Company anticipates that the U.S. state jurisdictions will continue to determine and announce their conformity or decoupling from the Tax Act, either in its entirety or with respect to specific provisions. Legislative and interpretive actions could result in adjustments to the Company’s provisional estimates when the accounting for the income tax effects of the Tax Act is completed. The Company will continue to evaluate the impact of the Tax Act on its financial statements, and will record the effect of any reasonable changes in its estimates and adjustments.

Business Segment Information

Business Segment Information	9 Months Ended
	Apr. 30, 2018
Business Segment Information [Abstract]
Business Segment Information	Note 10 — Business Segment Information The Company conducts business as two operating segments, Pharmaceuticals and Real Estate. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. Beginning in the second quarter of fiscal 2018, the Pharmaceuticals segment is comprised of debt interests and warrants in Rafael Pharmaceuticals and a majority equity interest in Lipomedix Pharmaceuticals. Comparative results have been reclassified and restated as if the Pharmaceuticals segment existed for all periods presented. To date, the Pharmaceuticals segment has not generated any revenues. The Real Estate segment includes the Company’s real estate holdings, including the building at 520 Broad Street in Newark, New Jersey that houses IDT’s headquarters and its associated public garage, an office/data center building in Piscataway, New Jersey and a portion of a building in Israel that hosts offices for IDT and certain affiliates. The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its Real Estate segment based primarily on income (loss) from operations and its Pharmaceuticals segment based primarily on research and development efforts and results of clinical trials. All investments in Rafael Pharmaceuticals and assets, expenses and expenses associated with Lipomedix are tracked separately in the Pharmaceuticals segment. All corporate costs are allocated to the Real Estate segment. Operating results for the business segments of the Company are as follows: (in thousands) Pharmaceuticals Real Estate Total Three Months Ended April 30, 2018 Revenues $ — $ 1,093 $ 1,093 (Loss) income from operations (258 ) (473 ) (731 ) Three Months Ended April 30, 2017 Revenues $ — $ 1,282 $ 1,282 Loss from operations — (164 ) (164 ) Nine Months Ended April 30, 2018 Revenues $ — $ 3,157 $ 3,157 (Loss) income from operations (631 ) (1,969 ) (2,600 ) Nine Months Ended April 30, 2017 Revenues $ — $ 4,018 $ 4,018 Income from operations — 118 118 Geographic Information Revenues from tenants located outside of the United States were generated entirely from related parties located in Israel. Revenues from these non-United States customers as a percentage of total revenues were as follows (revenues by country are determined based on the location of the related facility): Nine months ended April 30, 2018 (unaudited) April 30, 2017 (unaudited) Revenue from tenants located in Israel 3 % 5 % Net long-lived assets and total assets held by the Company were located as follows: (in thousands) United States Foreign Total April 30, 2018 (unaudited) Long-lived assets, net $ 67,270 $ 3,616 $ 70,886 Total assets 110,699 4,385 115,084 July 31, 2017 Long-lived assets, net $ 71,674 $ 2,363 $ 74,037 Total assets 83,675 2,529 86,204

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 30, 2018
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 11 — Commitments and Contingencies Legal Proceedings The Company may from time to time be subject to legal proceedings that may 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.

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Apr. 30, 2018
Marketable Securities [Abstract]
Schedule of marketable securities	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: April 30, 2018: Certificates of deposit* $ 13,243 $ — $ (33 ) $ 13,210 Federal Government Sponsored Enterprise notes 3,188 — (28 ) 3,160 International agency notes 522 — (17 ) 505 Mutual funds 5,453 — (70 ) 5,383 Corporate bonds 3,068 — (65 ) 3,003 U.S. Treasury notes 5,358 — (98 ) 5,260 Municipal bonds 421 — — 421 Total $ 31,253 $ — $ (311 ) $ 30,942 * Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market.
Schedule of contractual maturities of the Company's available-for-sale debt securities	Fair Value (in thousands) Within one year $ 13,465 After one year through five years 12,335 After five years through ten years — After ten years — Total $ 25,800
Schedule of available-for-sale securities were in an unrealized loss position	Unrealized Losses Fair Value (in thousands) April 30, 2018: Certificates of deposit $ (33 ) $ 10,403 Federal Government Sponsored Enterprise notes (28 ) 3,160 International agency notes (17 ) 505 Corporate bonds (70 ) 5,369 Equity (65 ) 3,003 U.S. Treasury notes (98 ) 5,260 Municipal bonds — 421 Total $ (311 ) $ 28,121

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Apr. 30, 2018
Fair Value Measurements [Abstract]
Summary of balance of assets measured at fair value on a recurring basis	(in thousands) Level 1 (1) Level 2 (2) Level 3 (3) Total April 30, 2018 Available-for-sale securities: Marketable Securities $ 10,643 $ 20,299 $ — $ 30,942 Rafael Pharmaceuticals convertible promissory notes — — 6,300 6,300 Total $ 10,643 $ 20,299 $ 6,300 $ 37,242 July 31, 2017 Available-for-sale securities: Rafael Pharmaceuticals convertible promissory notes $ — $ — $ 6,300 $ 6,300 Total $ — $ — $ 6,300 $ 6,300 (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
Summary of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)	Three Months Ended Nine Months Ended 2018 2017 2018 2017 (in thousands) Balance, beginning of period $ 6,300 $ 4,200 $ 6,300 $ 2,000 Purchases — — — 2,200 Balance, end of period $ 6,300 $ 4,200 $ 6,300 $ 4,200 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ — $ — $ — $ —

(Loss) Earnings Per Share (Tabl

(Loss) Earnings Per Share (Tables)	9 Months Ended
	Apr. 30, 2018
(Loss) Earnings Per Share [Abstract]
Summary of weighted-average number of shares used in the calculation of basic and diluted (loss) earnings per share	Three Months Ended Nine Months Ended 2018 2017 2018 2017 Basic weighted-average number of shares 12,541,998 12,541,998 12,541,998 12,541,998

Investment in Rafael Pharmace21

Investment in Rafael Pharmaceuticals, Inc. ("Rafael Pharmaceuticals") (Tables)	9 Months Ended
	Apr. 30, 2018
Investment in Rafael Pharmaceuticals, Inc. ("Rafael Pharmaceuticals") [Abstract]
Schedule of consolidated and combined balance sheets	(in thousands) (Unaudited) July 31, Convertible promissory note (at fair value) $ 6,300 $ 6,300 Warrants (at cost) 5,400 5,400 Right to receive additional shares (at cost) — 400 Total investment in Rafael Pharmaceuticals $ 11,700 $ 12,100

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Apr. 30, 2018
Related Party Transactions [Abstract]
Schedule of change in Company's liability to IDT	Nine Months Ended (in thousands) 2018 (unaudited) 2017 (unaudited) Balance at beginning of period $ 23,693 $ 15,145 Payments by IDT on behalf of the Company 385 703 Rental revenues earned from IDT (1,468 ) (2,461 ) Cash repayments, net of advances 885 19,767 Capitalized investment by IDT (24,116 ) — Balance at end of period $ (621 ) $ 33,154

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Apr. 30, 2018
Business Segment Information [Abstract]
Schedule of operating results for the business segments	(in thousands) Pharmaceuticals Real Estate Total Three Months Ended April 30, 2018 Revenues $ — $ 1,093 $ 1,093 (Loss) income from operations (258 ) (473 ) (731 ) Three Months Ended April 30, 2017 Revenues $ — $ 1,282 $ 1,282 Loss from operations — (164 ) (164 ) Nine Months Ended April 30, 2018 Revenues $ — $ 3,157 $ 3,157 (Loss) income from operations (631 ) (1,969 ) (2,600 ) Nine Months Ended April 30, 2017 Revenues $ — $ 4,018 $ 4,018 Income from operations — 118 118
Schedule of revenue from tenants by geographic areas	Nine months ended April 30, 2018 (unaudited) April 30, 2017 (unaudited) Revenue from tenants located in Israel 3 % 5 %
Schedule of net long-lived assets and total assets by geographic areas	(in thousands) United States Foreign Total April 30, 2018 (unaudited) Long-lived assets, net $ 67,270 $ 3,616 $ 70,886 Total assets 110,699 4,385 115,084 July 31, 2017 Long-lived assets, net $ 71,674 $ 2,363 $ 74,037 Total assets 83,675 2,529 86,204

Description of Business and B24

Description of Business and Basis of Presentation (Details) - shares	1 Months Ended	9 Months Ended
	Mar. 26, 2018	Apr. 30, 2018	Jul. 31, 2017
Employees [Member]
Description of Business and Basis of Presentation (Textual)
Restricted stock units issued	114,945
Consultants [Member]
Description of Business and Basis of Presentation (Textual)
Restricted stock units issued	114,945
IDT-Rafael Holdings, LLC [Member]
Description of Business and Basis of Presentation (Textual)
Effective ownership percentage		90.00%
Spin-off common stock, description		(i) one share of the Company’s Class A common stock for every two shares of IDT’s Class A common stock held of record on March 13, 2018 (the “Record Date”), and (ii) one share of the Company’s Class B common stock for every two shares of IDT’s Class B common stock held of record on the Record Date.
CS Pharma Holdings, LLC [Member]
Description of Business and Basis of Presentation (Textual)
Effective ownership percentage		50.00%
Class A common stock [Member]
Description of Business and Basis of Presentation (Textual)
Common stock, shares issued		787,163
Common stock, shares outstanding		787,163
Class A common stock [Member] | IDT Corporation [Member]
Description of Business and Basis of Presentation (Textual)
Common stock, shares issued	787,163
Common stock, shares outstanding	787,163
Class B common stock [Member]
Description of Business and Basis of Presentation (Textual)
Common stock, shares issued		11,754,835
Common stock, shares outstanding		11,754,835
Class B common stock [Member] | IDT Corporation [Member]
Description of Business and Basis of Presentation (Textual)
Common stock, shares issued	11,754,835
Common stock, shares outstanding	11,754,835

Marketable Securities (Details)

Marketable Securities (Details) $ in Thousands	9 Months Ended
	Apr. 30, 2018USD ($)
Available-for-sale securities:
Amortized Cost	$ 31,253
Gross Unrealized Gains
Gross Unrealized Losses	(311)
Fair Value	30,942
Municipal bonds [Member]
Available-for-sale securities:
Amortized Cost	421
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	421
Mutual funds [Member]
Available-for-sale securities:
Amortized Cost	5,453
Gross Unrealized Gains
Gross Unrealized Losses	(70)
Fair Value	5,383
Certificates of deposit [Member]
Available-for-sale securities:
Amortized Cost	13,243	[1]
Gross Unrealized Gains		[1]
Gross Unrealized Losses	(33)	[1]
Fair Value	13,210	[1]
Federal Government Sponsored Enterprise notes [Member]
Available-for-sale securities:
Amortized Cost	3,188
Gross Unrealized Gains
Gross Unrealized Losses	(28)
Fair Value	3,160
International agency notes [Member]
Available-for-sale securities:
Amortized Cost	522
Gross Unrealized Gains
Gross Unrealized Losses	(17)
Fair Value	505
Corporate bonds [Member]
Available-for-sale securities:
Amortized Cost	3,068
Gross Unrealized Gains
Gross Unrealized Losses	(65)
Fair Value	3,003
U.S. Treasury notes [Member]
Available-for-sale securities:
Amortized Cost	5,358
Gross Unrealized Gains
Gross Unrealized Losses	(98)
Fair Value	$ 5,260
[1]	Each of the Company's certificates of deposit has a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market.

Marketable Securities (Details

Marketable Securities (Details 1) $ in Thousands	Apr. 30, 2018USD ($)
Marketable Securities [Abstract]
Within one year	$ 13,465
After one year through five years	12,335
After five years through ten years
After ten years
Total	$ 25,800

Marketable Securities (Detail27

Marketable Securities (Details 2) $ in Thousands	Apr. 30, 2018USD ($)
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	$ (311)
Fair Value	28,121
Certificates of deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	33
Fair Value	10,403
Federal Government Sponsored Enterprise notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	28
Fair Value	3,160
International agency notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	17
Fair Value	505
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	70
Fair Value	5,369
Equity [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	65
Fair Value	3,003
U.S. Treasury notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	98
Fair Value	5,260
Municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	0
Fair Value	$ 421

Marketable Securities (Detail28

Marketable Securities (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Marketable Securities (Textual)
Proceeds from maturities and sales of available-for-sale securities	$ 436,000		$ 0
Realized gains from sales of available-for-sale securities	24,000	$ 0	24,000	$ 0
Realized losses from sales of available-for-sale securities

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		Apr. 30, 2018	Jul. 31, 2017
Available-for-sale securities:
Marketable Securities		$ 30,942
Fair Value Measurements, Recurring basis [Member]
Available-for-sale securities:
Marketable Securities		30,942
Rafael Pharmaceuticals convertible promissory notes		6,300	6,300
Total		37,242	6,300
Fair Value Measurements, Recurring basis [Member] | Level 1 [Member]
Available-for-sale securities:
Marketable Securities	[1]	10,643
Rafael Pharmaceuticals convertible promissory notes	[1]
Total	[1]	10,643
Fair Value Measurements, Recurring basis [Member] | Level 2 [Member]
Available-for-sale securities:
Marketable Securities	[2]	20,299
Rafael Pharmaceuticals convertible promissory notes	[2]
Total	[2]	20,299
Fair Value Measurements, Recurring basis [Member] | Level 3 [Member]
Available-for-sale securities:
Marketable Securities	[3]
Rafael Pharmaceuticals convertible promissory notes	[3]	6,300	6,300
Total	[3]	$ 6,300	$ 6,300
[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 Measurements (Deta30

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Balance, beginning of period			$ 6,300	$ 2,000
Balance, end of period	$ 6,300	$ 4,200	6,300	4,200
Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Balance, beginning of period	6,300	4,200	6,300	2,000
Purchases				2,000
Balance, end of period	6,300	4,200	6,300	4,200
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period

Fair Value Measurements (Deta31

Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Fair Value Measurements (Textual)
Fair value of investments in hedge funds	$ 5,900	$ 0

(Loss) Earnings Per Share (Deta

(Loss) Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Weighted-average number of shares used in the calculation of basic and diluted earnings per share
Basic weighted-average number of shares	12,542	12,542	12,542	12,542

Establishment of Valuation Al33

Establishment of Valuation Allowance for Deferred Tax Asset (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2018
Establishment of Valuation Allowance for Deferred Tax Asset (Textual)
Deferred revenue, description		A significant piece of objective negative evidence evaluated was the amendments to related party leases effective August 1, 2017, which, in comparison to fiscal year 2017, will reduce revenues by approximately $1.7 million annually through 2025.
Valuation allowance	$ 8.4

Investment in Rafael Pharmace34

Investment in Rafael Pharmaceuticals, Inc. ("Rafael Pharmaceuticals") (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Schedule of consolidated balance sheets
Convertible promissory note (at fair value)	$ 6,300	$ 6,300
Warrants (at cost)	5,400	5,400
Right to receive additional shares (at cost)		400
Total investment in Rafael Pharmaceuticals	$ 11,700	$ 12,100

Investment in Rafael Pharmace35

Investment in Rafael Pharmaceuticals, Inc. ("Rafael Pharmaceuticals") (Details Textual) - USD ($)

Dec. 07, 2015

May 18, 2018

Mar. 02, 2017

Sep. 16, 2016

Apr. 30, 2018

Apr. 30, 2017

Jul. 31, 2016

Sep. 19, 2017

Sep. 12, 2017

Jul. 31, 2017

Mar. 26, 2017

Jan. 31, 2017

Apr. 30, 2016

Jan. 31, 2016

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Warrants expiry date

Dec. 31, 2020

Principal amount

Additional amount of investment funded

$ 11,700,000

$ 12,100,000

Exercise price of warrants or rights, description

The exercise price of the warrant is the lower of 70% of the price sold in an equity financing, or $1.25 per share, subject to certain adjustments. The minimum initial and subsequent exercises of the warrant shall be for such number of shares that will result in at least $5 million of gross proceeds to Rafael Pharmaceuticals, or such lesser amount as represents 5% of the outstanding capital stock of Rafael Pharmaceuticals, or such lesser amount as may then remain unexercised.

CS Pharma Holdings, LLC [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Ownership percentage in non-operating subsidiary

45.00%

50.00%

Ownership percentage in subsidiary and holds percentage of interest

90.00%

Exercise warrants value

$ 10,000,000

IDT-Rafael Holdings [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Ownership percentage in non-operating subsidiary

50.00%

Percentage of capital stock

10.00%

Working capital financing remained outstanding

$ 1,600,000

Outstanding debt

$ 23,600,000

Rafael Pharmaceuticals [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Ownership percentage in non-operating subsidiary

90.00%

Ownership percentage in subsidiary and holds percentage of interest

51.00%

Exercise of warrants purchases, description

The Company would need to pay approximately $71 million to exercise the warrant in full and approximately $56 million to purchase a 51% controlling stake. On an as-converted and fully diluted basis (for all convertible securities of Rafael Pharmaceuticals outstanding), the Company would need approximately $122 million to exercise the warrant in full and approximately $98 million to purchase a 51% controlling stake in Rafael Pharmaceuticals. Given the Company's anticipated available cash upon the Spin-Off, the Company would not be able to exercise the warrant in its entirety and the Company may never be able to exercise the warrant in full.

Warrants expiry date

Dec. 31, 2020

Amount of investment

$ 10,000,000

Additional amount of investment funded

$ 56,000,000

$ 2,000,000

$ 1,500,000

$ 500,000

Exercise warrants value

$ 10,000,000

Percentage of exercise warrants value

56.00%

Percentage of bonus shares received

10.00%

9.00%

Exercise price of warrants or rights, description

IDT-Rafael Holdings and CS Pharma were issued warrants to purchase shares of capital stock of Rafael Pharmaceuticals representing up to 56% of the then issued and outstanding capital stock of Rafael Pharmaceuticals, on an as-converted and fully diluted basis.

Payments for exercise of warrants

$ 71,000,000

Lipomedix Pharmaceuticals Ltd. [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Additional amount of investment funded

100,000

$ 300,000

Convertible Debt Securities [Member] | Rafael Pharmaceuticals [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Exercise warrants value

$ 122,000,000

Convertible promissory note (Series D Note) [Member] | Rafael Pharmaceuticals [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Convertible promissory note, rate of interest

3.50%

Convertible promissory note, maturity date

Sep. 16, 2018

Exercise warrants value

$ 10,000,000

Purchase of exercise the warrant

$ 98,000,000

Subsequent Event [Member] | Rafael Pharmaceuticals [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Description of arrangement

The Company entered into an arrangement with Rafael Pharmaceuticals to lend up to $1.7 million at an interest rate of 3.5%, compounded quarterly. At Rafael Pharmaceuticals' request, and in the Company's discretion, the Company will advance amounts to the borrower, not to exceed $1.7 million. This loan is due and payable with 30 days' notice at the lender's demand, not to occur before June 30, 2018.

Convertible Notes Payable [Member] | Rafael Pharmaceuticals [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Convertible promissory note, rate of interest

3.50%

3.50%

Convertible promissory note, maturity date

Jul. 31, 2018

Jul. 31, 2018

Amount of investment

$ 8,000,000

$ 2,000,000

Howard Jonas [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Percentage of bonus shares issued

9.00%

Howard Jonas [Member] | IDT-Rafael Holdings [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Purchase price

$ 1,000,000

Howard Jonas [Member] | Rafael Pharmaceuticals [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Percentage of bonus shares received

1.00%

The Howard S. and Deborah Jonas Foundation [Member] | Series C Convertible Notes [Member] | Rafael Pharmaceuticals [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Principal amount

525,000

Howard Jonas and Deborah Jonas [Member] | Series C Convertible Notes [Member] | Rafael Pharmaceuticals [Member]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Principal amount

$ 525,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Related Party Transactions [Abstract]
Balance at beginning of period	$ 23,693	$ 15,145
Payments by IDT on behalf of the Company	385	703
Rental revenues earned from IDT	(1,468)	(2,461)
Cash repayments, net of advances	885	19,767
Capitalized investment by IDT	(24,116)
Balance at end of period	$ (621)	$ 33,154

Related Party Transactions (D37

Related Party Transactions (Details Textual) - USD ($)	Jun. 11, 2018	May 31, 2018	May 18, 2018	Apr. 26, 2018	Apr. 30, 2018	Apr. 30, 2017	Mar. 26, 2018	Jul. 31, 2017	Jul. 31, 2016
Related Party Transactions (Textual)
Advances to invest in Rafael Pharmaceuticals and Lipomedix					$ 900,000	$ 9,400,000
Cash and cash equivalents					$ 10,605,000	$ 11,729,000		$ 11,756,000	$ 2,339,000
Class B common stock [Member]
Related Party Transactions (Textual)
Agreed to purchase, shares				1,254,200
Agreed to purchase issued and outstanding, percentage				10.00%
Agreed to purchase price				$ 6.89
Purchase price				$ 8,641,438
Rafael Pharmaceuticals [Member]
Related Party Transactions (Textual)
Cash and cash equivalents							$ 44,000,000
Marketable securities							4,000,000
Additional securities							2,000,000
Rafael Pharmaceuticals [Member] | Subsequent Event [Member]
Related Party Transactions (Textual)
Description of leasing arrangements			The Company entered into an arrangement with Rafael Pharmaceuticals to lend up to $1.7 million at an interest rate of 3.5%, compounded quarterly. At Rafael Pharmaceuticals' request, and in the Company's discretion, the Company will advance amounts to the borrower, not to exceed $1.7 million. This loan is due and payable with 30 days' notice at the lender's demand, not to occur before June 30, 2018.
Advances to invest in Rafael Pharmaceuticals and Lipomedix	$ 800,000
Cs Pharma Holdings [Member]
Related Party Transactions (Textual)
Cash and cash equivalents							$ 10,000,000
Effective ownership percentage							45.00%
August 1, 2017 [Member]
Related Party Transactions (Textual)
Lease expiration date					Apr. 30, 2025
Description of leasing arrangements					The related party leases expire in April 2025 and are for 88,631 square feet and include two parking spots per thousand square feet of space leased at 520 Broad Street and for 12,400 square feet in Israel. The annual rent will be approximately $2.0 million. The related parties have the right to terminate theses leases upon four months' notice, and upon early termination will pay a termination penalty equal to 25% of the portion of the rent due over the course of the remaining term. Related parties will have the right to lease an additional 25,000 square feet in the building located at 520 Broad Street on the same terms as the base lease, and other rights to a further 25,000 square feet should all available space be leased to other tenants.
Renewal term of lease					5 years
Description of annual rent					The annual rent will be approximately $2.0 million.
Mr. Jonas [Member] | Subsequent Event [Member]
Related Party Transactions (Textual)
Purchase price		$ 864,144
Total purchase price percentage		10.00%

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Apr. 30, 2018
U.S. federal statutory tax rate for fiscal year ending July 31, 2018	26.90%
U.S. federal statutory tax rate for fiscal years thereafter	21.00%
Maximum [Member]
U.S. federal statutory corporate tax rate	35.00%
Minimum [Member]
U.S. federal statutory corporate tax rate	21.00%

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Segment Reporting Information [Line Items]
Revenues	$ 1,093	$ 1,282	$ 3,157	$ 4,018
(Loss) income from operations	(731)	(164)	(2,600)	118
Pharmaceuticals [Member]
Segment Reporting Information [Line Items]
Revenues
(Loss) income from operations	(258)		(631)
Real Estate [Member]
Segment Reporting Information [Line Items]
Revenues	1,093	1,282	3,157	4,018
(Loss) income from operations	$ (473)	$ (164)	$ (1,969)	$ 118

Business Segment Information 40

Business Segment Information (Details1)	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Geographic Concentration Risk [Member]
Segment Reporting Information [Line Items]
Revenue from tenants located in Israel	3.00%	5.00%

Business Segment Information 41

Business Segment Information (Details 2) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Segment Reporting Information [Line Items]
Long-lived assets, net	$ 70,886	$ 74,037
Total Assets	115,084	86,204
United States [Member]
Segment Reporting Information [Line Items]
Long-lived assets, net	67,270	71,674
Total Assets	110,699	83,675
Foreign [Member]
Segment Reporting Information [Line Items]
Long-lived assets, net	3,616	2,363
Total Assets	$ 4,385	$ 2,529

Business Segment Information 42

Business Segment Information (Details Textual)	9 Months Ended
	Apr. 30, 2018Segments
Business Segment Information (Textual)
Number of operating segments	2