Variable Interest Entity

3 Months Ended

Oct. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity

Note 9—Variable Interest Entity

The Company is the primary beneficiary of a variable interest entity (“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. 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 provided by the Company were as follows:

	Three Months Ended October 31,
	2023		2022
	(in thousands)
Net income of the VIE	$	81	$	140
Aggregate funding provided by the Company, net	$	114	$	97

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

	October 31, 2023		July 31, 2023
	(in thousands)
Assets:
Cash and equivalents	$	1,881	$	1,596
Restricted cash		6,578		7,848
Trade accounts receivable, net		23		62
Disbursement prefunding		1,037		585
Prepaid expenses		294		197
Other current assets		383		317
Property, plant, and equipment, net		219		272
Other intangibles, net		699		737
Total assets	$	11,114	$	11,614
Liabilities and noncontrolling interests:
Trade accounts payable	$	—	$	—
Accrued expenses		86		70
Settlement liabilities		6,882		7,573
Due to the Company		140		26
Accumulated other comprehensive income		1		21
Noncontrolling interests		4,005		3,924
Total liabilities and noncontrolling interests	$	11,114	$	11,614

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.