Equity Investments (Tables)

12 Months Ended

Jul. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Equity Investments

Equity investments consist of the following:

July 31 (in thousands)	2022		2021
Zedge, Inc. Class B common stock, 42,282 shares at July 31, 2022 and 2021	$	117	$	649
Rafael Holdings, Inc. Class B common stock, 290,214 and 246,565 shares at July 31, 2022 and 2021, respectively		586		12,479
Rafael Holdings, Inc. restricted Class B common stock, nil and 43,649 shares at July 31, 2022 and 2021, respectively		—		2,209
Other marketable equity securities		4,089		3,630
Fixed income mutual funds		12,299		23,467
Current equity investments	$	17,091	$	42,434
Visa Inc. Series C Convertible Participating Preferred Stock (“Visa Series C Preferred”)	$	1,132	$	2,465
Visa Inc. Series A Convertible Participating Preferred Stock (“Visa Series A Preferred”)		1,230		—
Series B and Series C convertible preferred stock—equity method investment		1,001		2,901
Hedge funds		3,238		3,563
Other		825		2,725
Noncurrent equity investments	$	7,426	$	11,654

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)	2022			2021			2020
Balance, beginning of period	$	2,743		$	4,109		$	3,919
Redemption for Visa mandatory release assessment		(1,230	)		(1,870	)		—
Adjustment for observable transactions involving a similar investment from the same issuer		(103	)		510			206
Upward adjustments		—			—			3
Redemptions		(9	)		(6	)		(19	)
Impairments		—			—			—
BALANCE, END OF PERIOD	$	1,401		$	2,743		$	4,109

Schedule of Unrealized (losses) Gains for All Equity Investments

Unrealized gains and losses for all equity investments measured at fair value included the following:

Year ended July 31 (in thousands)	2022			2021		2020
Net (losses) gains recognized during the period on equity investments	$	(19,248	)	$	8,830	$	(336	)
Less: net gains recognized during the period on equity investments redeemed during the period		10			1,090		—
Unrealized (losses) gains recognized during the period on equity investments still held at the reporting date	$	(19,258	)	$	7,740	$	(336	)

The unrealized gains and losses for all equity investments measured at fair value in the table above included the following:

Year ended July 31 (in thousands)	2022			2021		2020
Unrealized (losses) gains recognized during the period on equity investments:
Rafael Class B common stock	$	(14,101	)	$	8,291	$	(195	)
Zedge Class B common stock	$	(533	)	$	591	$	(9	)

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)	2022			2021
Balance, beginning of period	$	2,901		$	—
Purchase of convertible preferred stock		1,051			4,000
Equity in the net loss of investee		(2,224	)		(816	)
Amortization of equity method basis difference		(727	)		(283	)
BALANCE, END OF PERIOD	$	1,001		$	2,901

Summary of Statements of Operations

Summarized financial information of the EMI was as follows:

July 31 (in thousands)	2022			2021
Current assets	$	3,911		$	1,467
Noncurrent assets	$	2,462		$	2,549
Current liabilities	$	(11,480	)	$	(4,041	)
Noncurrent liabilities	$	—		$	(50	)

IDT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(in thousands)	Year ended July 31, 2022			From the date of acquisition to July 31, 2021
REVENUES	$	7,889		$	1,898
COSTS AND EXPENSES:
Direct cost of revenues		9,451			1,937
Selling, general and administrative		5,834			3,388
TOTAL COSTS AND EXPENSES		15,285			5,325
LOSS FROM OPERATIONS		(7,396	)		(3,427	)
Other (expense) income, net		(342	)		101
NET LOSS	$	(7,738	)	$	(3,326	)