Other Operating Gain, Net

3 Months Ended

Oct. 31, 2023

Other Income and Expenses [Abstract]

Other Operating Gain, Net

Note 10—Other Operating Gain, Net

The following table summarizes the other operating gain, net by business segment:

	Three Months Ended October 31,
	2023			2022
	(in thousands)
Corporate—Straight Path Communications Inc. class action legal fees	$	(212	)	$	(2,512	)
Corporate—Straight Path Communications Inc. class action insurance claims		684			1,725
Corporate—other		12			—
Fintech—write-off of contingent consideration liability		—			1,565
Fintech—government grants		—			33
Traditional Communications—cable telephony customer indemnification claim		—			(11	)
Total	$	484		$	800

Straight Path Communications Inc. Class Action

As discussed in Note 16, the Company (as well as other defendants) was named in a class action on behalf of the stockholders of the Company’s former subsidiary, Straight Path Communications Inc. (“Straight Path”). The Company incurred legal fees and recorded offsetting gains from insurance claims related to this action in the three months ended October 31, 2023 and 2022. On October 3, 2023, the Court of Chancery of the State of Delaware dismissed all claims against the Company, and found that, contrary to the plaintiffs’ allegations, the class suffered no damages. The plaintiffs will have 30 days from entry of the final order to file an appeal.

Write-off of Contingent Consideration Liability

In September 2022, the Company determined that the requirements for a portion of the contingent consideration payments related to the Leaf acquisition would not be met. The Company recognized a gain on the write-off of this contingent consideration payment obligation.

Government Grants

In the three months ended October 31, 2022, Leaf received payments from government grants for the development and commercialization of blockchain-backed financial technologies.

Indemnification Claim

Beginning in June 2019, as part of a commercial resolution, the Company indemnified a cable telephony customer related to patent infringement claims brought against the customer. On May 8, 2023, the Company and the customer agreed to release the Company from the indemnification agreement in exchange for $3.9 million, which was recorded as an expense in the third quarter of fiscal 2023.