Equity Investments (Tables)

12 Months Ended

Jul. 31, 2021

Equity Investments

Schedule of Equity Investments

Equity investments consist of the following:

July 31 (dollars in thousands)	2021		2020
Zedge, Inc. Class B common stock, 42,282 shares at July 31, 2021 and 2020	$	649	$	59
Rafael Holdings, Inc. Class B common stock, 246,565 and 27,806 shares at July 31, 2021 and 2020, respectively		12,479		389
Rafael Holdings, Inc. restricted Class B common stock, 43,649 and nil shares at July 31, 2021 and 2020, respectively		2,209		—
Other marketable equity securities		3,630		—
Fixed income mutual funds		23,467		5,516
Current equity investments	$	42,434	$	5,964
Visa Inc. Series C Convertible Participating Preferred Stock (“Visa Series C Preferred”)	$	2,465	$	3,825
Series B convertible preferred stock—equity method investment		2,901		—
Hedge funds		3,563		4,783
Other		2,725		225
Noncurrent equity investments	$	11,654	$	8,833

Schedule of Carrying Value of Equity Investments

The changes in the carrying value of the Company’s equity investments without readily determinable fair values for which the Company elected the measurement alternative was as follows:

Year ended July 31 (in thousands)	2021			2020
Balance, beginning of period	$	4,109		$	3,919
Redemption for Visa mandatory release assessment		(1,870	)		—
Adjustment for observable transactions involving a similar investment from the same issuer		510			206
Upward adjustments		—			3
Redemptions		(6	)		(19	)
Impairments		—			—
BALANCE, END OF PERIOD	$	2,743		$	4,109

Schedule of Unrealized (losses) Gains for All Equity Investments

Unrealized gains and losses for all equity investments included the following:

Year ended July 31 (in thousands)	2021		2020
Net gains (losses) recognized during the period on equity investments	$	8,830	$	(336	)
Less: net gains recognized during the period on equity investments redeemed during the period		1,090		—
Unrealized gains (losses) recognized during the period on equity investments still held at the reporting date	$	7,740	$	(336	)

Summary of Changes in Equity Method Investments

The following table summarizes the change in the balance of the Company’s equity method investment:

Year ended July 31 (in thousands)	2021			2020
Balance, beginning of period	$	—		$	—
Purchase of series B convertible preferred stock		4,000			—
Equity in the net loss of investee		(816	)		—
Amortization of equity method basis difference		(283	)		—
BALANCE, END OF PERIOD	$	2,901		$	—

Summary of Statements of Operations

Summarized financial information of the EMI was as follows:

July 31, 2021 (in thousands)
Current assets	$	1,467
Noncurrent assets	$	2,549
Current liabilities	$	(4,041	)
Noncurrent liabilities	$	(50	)

From the date of acquisition to July 31, 2021 (in thousands)
REVENUES	$	1,898
COSTS AND EXPENSES:
Direct cost of revenues		1,937
Selling, general and administrative		3,388
TOTAL COSTS AND EXPENSES		5,325
LOSS FROM OPERATIONS		(3,427	)
Other income, net		101
NET LOSS	$	(3,326	)

On August 10, 2021, the Company paid $1.1 million to purchase shares of the EMI’s series C convertible preferred stock and additional shares of the EMI’s series B convertible preferred stock. These purchases increased the Company’s ownership of the outstanding shares of the EMI to 26.57% on an as converted basis.