Variable Interest Entity

9 Months Ended

Apr. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity

Note 10—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 from (repaid to) the Company were as follows:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2022		2021		2022			2021
	(in thousands)
Net income of the VIE	$	72	$	—	$	72		$	—
Aggregate funding from (repaid to) the Company, net	$	1	$	—	$	(95	)	$	—

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

	April 30, 2022		July 31, 2021
	(in thousands)
Assets:
Cash and equivalents	$	1,570	$	1,364
Restricted cash		4,896		3,848
Trade accounts receivable, net		29		91
Prepaid expenses		91		344
Other current assets		1,160		858
Due from the Company		87		—
Property, plant, and equipment, net		520		637
Other intangibles, net		927		1,042
Total assets	$	9,280	$	8,184
Liabilities and noncontrolling interests:
Trade accounts payable	$	2	$	312
Accrued expenses		46		26
Other current liabilities		5,792		4,491
Due to the Company		—		8
Accumulated other comprehensive income (loss)		14		(7	)
Noncontrolling interests		3,426		3,354
Total liabilities and noncontrolling interests	$	9,280	$	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.