Other Operating Expense, Net

9 Months Ended

Apr. 30, 2024

Other Income and Expenses [Abstract]

Other Operating Expense, Net

Note 10—Other Operating Expense, Net

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

	Three Months Ended April 30,						Nine Months Ended April 30,
	2024			2023			2024			2023
	(in thousands)
Corporate—Straight Path Communications Inc. class action legal fees	$	(3,157	)	$	(973	)	$	(5,921	)	$	(5,082	)
Corporate—Straight Path Communications Inc. class action insurance claims		—			337			2,869			3,325
Corporate—other		—			—			12			—
Fintech—write-off of intangible asset		(74	)		—			(74	)		—
Fintech—write-off of contingent consideration liability		—			—			—			1,565
Fintech— government grants		—			—			—			382
net2phone—write-off of contingent consideration liability		—			—			73			—
Traditional Communications— cable telephony customer indemnification claim		—			(3,912	)		—			(3,925	)
Traditional Communications— contingent consideration liability		—			(216	)		—			(216	)
Traditional Communications—other		—			—			—			3
Total other operating expense, net	$	(3,231	)	$	(4,764	)	$	(3,041	)	$	(3,948	)

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 and nine months ended April 30, 2024 and 2023. 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.

Contingent Consideration Liabilities

In January 2024, the Company determined that the requirement for a contingent consideration payment related to an acquisition in a prior period would not be met. In addition, 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 gains on the write-off of these contingent consideration payment obligations in the net2phone and Fintech segments. Also, in the three and nine months ended April 30, 2023, the Company increased the estimated fair value of acquisition-related contingent consideration in its Traditional Communications segment by $0.2 million.

Government Grants

In the three and nine months ended April 30, 2023, 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 three and nine months ended April 30, 2023.