Variable Interest Entity

6 Months Ended

Jan. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Variable Interest Entity

Note 9—Variable Interest Entity

As of May 31, 2021, the Company entered into a Warrant Purchase Agreement with the shareholders of an entity (the variable interest entity, or “VIE”) that operates money transfer businesses. The Company determined that, effective May 31, 2021, it had the power to direct the activities of the VIE that most significantly impact its economic performance, and the Company has the obligation to absorb losses of and the right to receive benefits from the VIE that could potentially be significant to it. The Company therefore determined that it is the primary beneficiary of the VIE, and as a result, the Company consolidates the VIE. The Company does not currently own any interest in the VIE and thus the net income incurred by the VIE was attributed to noncontrolling interests in the accompanying consolidated statements of income.

The VIE’s net income and aggregate funding repaid to the Company by the VIE were as follows:

	Three Months Ended January 31,					Six Months Ended January 31,
	2022			2021		2022			2021
	(in thousands)
Net loss of the VIE	$	(144	)	$	—	$	—		$	—
Aggregate funding repaid to the Company by the VIE, net	$	(93	)	$	—	$	(96	)	$	—

The VIE’s summarized consolidated balance sheet amounts are as follows:

	January 31, 2022		July 31, 2021
	(in thousands)
Assets:
Cash and equivalents	$	1,535	$	1,364
Restricted cash		3,914		3,848
Trade accounts receivable, net		42		91
Prepaid expenses		231		344
Other current assets		693		858
Due from the Company		88		—
Property, plant, and equipment, net		566		637
Other intangibles, net		966		1,042
Total assets	$	8,035	$	8,184
Liabilities and noncontrolling interests:
Trade accounts payable	$	—	$	312
Accrued expenses		27		26
Other current liabilities		4,648		4,491
Due to the Company		—		8
Accumulated other comprehensive loss		6		(7	)
Noncontrolling interests		3,354		3,354
Total liabilities and noncontrolling interests	$	8,035	$	8,184

The VIE’s assets may only be used to settle the VIE’s obligations and may not be used for other consolidated entities. The VIE’s liabilities are non-recourse to the general credit of the Company’s other consolidated entities.