Variable Interest Entity

9 Months Ended

Apr. 30, 2024

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 (repaid to) provided by the Company were as follows:

	Three Months Ended April 30,					Nine Months Ended April 30,
	2024			2023		2024		2023
	(in thousands)
Net income of the VIE	$	301		$	43	$	275	$	208
Aggregate funding (repaid to) provided by the Company, net	$	(110	)	$	—	$	127	$	87

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

	April 30, 2024		July 31, 2023
	(in thousands)
Assets:
Cash and equivalents	$	2,529	$	1,596
Restricted cash		8,525		7,848
Trade accounts receivable, net		99		62
Disbursement prefunding		1,375		585
Prepaid expenses		220		197
Other current assets		307		317
Property, plant, and equipment, net		156		272
Other intangibles, net		622		737
Total assets	$	13,833	$	11,614
Liabilities and noncontrolling interests:
Trade accounts payable	$	51	$	—
Accrued expenses		137		70
Settlement liabilities		9,247		7,573
Due to the Company		153		26
Accumulated other comprehensive income		46		21
Noncontrolling interests		4,199		3,924
Total liabilities and noncontrolling interests	$	13,833	$	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.