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Related Party Transactions
12 Months Ended
Jul. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

Note 22—Related Party Transactions

 

Rafael Holdings, Inc. including Rafael Pharmaceuticals, Inc.

 

The Company entered into various agreements with Rafael prior to the Rafael Spin-Off including a Separation and Distribution Agreement to effect the separation and provide a framework for the Company's relationship with Rafael after the Rafael Spin-Off, and a Tax Separation Agreement, which sets forth the responsibilities of the Company and Rafael with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the Rafael Spin-Off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods. Pursuant to the Separation and Distribution Agreement, the Company indemnifies Rafael and Rafael indemnifies the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. Pursuant to the Tax Separation Agreement, the Company indemnifies Rafael from all liability for the Company's taxes, other than Rafael and its subsidiaries, for any taxable period, and from all liability for taxes due to the Rafael Spin-Off.

 

In connection with the Rafael Spin-Off, the Company and Rafael entered into a Transition Services Agreement pursuant to which the Company provides to Rafael certain administrative and other services. The Company charged Rafael $0.4 million in fiscal 2019 and $0.2 million in fiscal 2018 subsequent to the Rafael Spin-Off for services provided. In addition, in fiscal 2019 and fiscal 2018 subsequent to the Rafael Spin-Off, the Company collected cash of $0.2 million and $0.3 million, respectively, on behalf of Rafael related to Rafael's parking garage and third-party tenants, while Rafael was in the process of changing its billing and collection systems. At July 31, 2019, other current assets reported in the Company's consolidated balance sheet included net receivable from Rafael of $0.1 million. At July 31, 2018, the Company owed Rafael $0.4 million for cash collected in excess of services rendered.

 

At July 31, 2019 and 2018, the Company held 27,419 and 25,803 shares, respectively, of Rafael Class B common stock (see Note 8).

 

The Company provided certain administrative and other services to Rafael Pharma. The Company charged Rafael Pharma $0.4 million and $0.6 million in fiscal 2018 and fiscal 2017, respectively, for services. At July 31, 2018, other current assets reported in the Company's consolidated balance sheet included receivable from Rafael Pharma of $1.0 million.

 

See Note 4 for certain transactions between the Company and Howard S. Jonas related to Rafael. See Note 21 for the Company's lease commitments with Rafael.

 

Zedge, Inc.

 

In connection with the Zedge Spin-Off, the Company and Zedge entered into a Transition Services Agreement pursuant to which the Company provides to Zedge certain administrative and other services. The Company charged Zedge $0.1 million, $0.3 million and $1.0 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively, for services provided. In addition, in fiscal 2019, Zedge charged the Company $0.1 million for certain services. At July 31, 2019 and 2018, other current assets reported in the Company's consolidated balance sheet included receivables from Zedge of $16,000 and $34,000, respectively.

 

At July 31, 2019 and 2018, the Company held 42,282 shares of Zedge Class B common stock (see Note 8).

 

Straight Path Communications Inc.

 

The Company entered into various agreements with Straight Path prior to the Straight Path Spin-Off including a Separation and Distribution Agreement to effect the separation and provide a framework for the Company's relationship with Straight Path after the spin-off, and a Tax Separation Agreement, which sets forth the responsibilities of the Company and Straight Path 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. Pursuant to the Separation and Distribution Agreement, the Company indemnifies Straight Path and Straight Path indemnifies the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. Pursuant to the Tax Separation Agreement, the Company indemnifies Straight Path from all liability for taxes of Straight Path or any of its subsidiaries or relating to the Straight Path business with respect to taxable periods ending on or before the Straight Path Spin-Off, from all liability for taxes of the Company, other than Straight Path and its subsidiaries, for any taxable period, and from all liability for taxes due to the Straight Path Spin-Off.

 

On April 9, 2017, the Company and Straight Path entered into a binding term sheet providing for the settlement and mutual release of potential indemnification and other claims asserted by each of the Company and Straight Path (see Note 13). In addition, on July 5, 2017, certain of Straight Path stockholders filed a putative class action and derivative complaint against the Company and others (see Note 21).

 

See Note 13 for the Company's sale of its ownership interest in New SPIP to PR-SP.

 

Genie Energy Ltd.

 

On October 28, 2011, the Company completed a pro rata distribution of the common stock of the Company's subsidiary, Genie Energy Ltd. ("Genie"), to the Company's stockholders of record as of the close of business on October 21, 2011 (the "Genie Spin-Off"). The Company entered into a Transition Services Agreement with Genie prior to the Genie Spin-Off, which provides for certain services to be performed by the Company and Genie. The Company charged Genie $1.0 million, $1.3 million and $1.6 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively, for services provided and other items, net of the amounts charged by Genie to the Company. At July 31, 2019 and 2018, other current assets reported in the Company's consolidated balance sheet included receivables from Genie of $0.2 million and $0.3 million, respectively.

 

Other Related Party Transactions

 

The Company provides office space, certain connectivity and other services to Jonas Media Group, a publishing firm owned by Howard S. Jonas. Billings for such services were $15,000, $17,000 and $22,000 in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The balance owed to the Company by Jonas Media Group was $15,000 and $17,000 as of July 31, 2019 and 2018, respectively.

 

The Company obtains insurance policies from several insurance brokers, one of which is IGM Brokerage Corp. ("IGM"). IGM was, until his death in October 2009, owned by Irwin Jonas, father of Howard S. Jonas, and the Company's General Counsel, Joyce J. Mason. IGM is currently owned by Irwin Jonas' widow—the mother of Howard S. Jonas and Joyce Mason. Jonathan Mason, husband of Joyce Mason and brother-in-law of Howard S. Jonas, provides insurance brokerage services via IGM. Based on information the Company received from IGM, the Company believes that IGM received commissions and fees from payments made by the Company to third party brokers in the aggregate amounts of $29,000 in fiscal 2019, $29,000 in fiscal 2018, and $24,000 in fiscal 2017, which fees and commissions inured to the benefit of Mr. Mason. Neither Howard S. Jonas nor Joyce Mason has any ownership or other interest in IGM or the commissions paid to IGM other than via the familial relationships with their mother and Jonathan Mason.

 

Mason and Company Consulting, LLC ("Mason and Co."), a company owned solely by Jonathan Mason, receives an annual fee for the insurance brokerage referral and placement of the Company's health benefit plan with Brown & Brown Metro, Inc. Based on information the Company received from Jonathan Mason, the Company believes that Mason and Co. received from Brown & Brown Metro, Inc. commissions and fees from payments made by the Company in the amount of $24,000 in fiscal 2019, $22,000 in fiscal 2018, and $22,000 in fiscal 2017. Neither Howard S. Jonas nor Joyce Mason has any ownership or other interest in Mason and Co. or the commissions paid to Mason and Co., other than via the familial relationships with Jonathan Mason.

 

Since August 2009, IDT Domestic Telecom, Inc., a subsidiary of the Company, has leased space in a building in the Bronx, New York. Howard S. Jonas and Shmuel Jonas are members of the limited liability company that owns the building. The latest lease, which became effective November 1, 2012, had a one-year term with a one-year renewal option. The parties have continued IDT Domestic Telecom's occupancy of the space on the same terms. Aggregate annual rent under the lease was $60,900.

 

The Company had loans receivable outstanding from employees aggregating $0.2 million at July 31, 2019 and 2018, which are included in "Other current assets" in the accompanying consolidated balance sheets.

 

See Note 18 for sales of shares of the Company's Class B Common Stock to Howard S. Jonas. See Note 19 for the grant to Howard S. Jonas of options to purchase shares of the Company's Class B Common Stock.