v3.25.2
Other Operating Expense, Net
 12 Months Ended
Jul. 31, 2025
Other Income and Expenses [Abstract]  
Other Operating Expense, Net

Note 13—Other Operating Expense, Net

 

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

  

Year ended July 31 (in thousands)  2025   2024   2023 
Corporate —Straight Path Communications Inc. class action legal fees  $(527)   $(7,237)  $(5,785)
Corporate —Straight Path Communications Inc. class action insurance claims   —    2,869    3,845 
Corporate—legal fees associated with settlement of litigation   

(1,575

)   

—

    

—

 
Corporate—Grow New Jersey Assistance Act tax credit   —    —    1,600 
Corporate—other   

(1,000

)    12    — 
Fintech—write-off of intangible asset   —    (74)   — 
Fintech—write-off of contingent consideration liability   —    1,765    1,565 
Fintech—government grants   —    —    382 
net2phone—write-off of equipment   (635)    —    (133)
net2phone—write-off of contingent consideration liability   —    73    — 
net2phone—other   3    (17)   — 
National Retail Solutions—settlement of litigation   

(2,401

)   

—

    

—

 
National Retail Solutions—write-off of capitalized internal use software costs   —    (45)   — 
National Retail Solutions—other   —    (105)   — 
Traditional Communications—write-off of equipment   (222)   

—

    

—

 
Traditional Communications—write-off of capitalized internal use software costs   —    (237)   (1,419)
Traditional Communications—cable telephony customer indemnification claim   —    —    (3,925)
Traditional Communications—increase in contingent consideration liability   

—

    —    (216)
Traditional Communications—other   15    51    (329)
TOTAL  $(6,342)   $(2,945)  $(4,415)

 

Straight Path Communications Inc. Class Action

 

As discussed in Note 22, 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 fiscal 2024, the Company received the final payment from its insurance policy for these claims. 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. On January 14, 2025, the plaintiff filed a notice of appeal of the Final Order and Judgment to the Supreme Court of the State of Delaware to appeal the Final Order and Judgment. On April 22, 2025, the Company filed its answering brief to the appeal. Oral argument is scheduled for October 2025.

 

Settlement of Litigation

 

In fiscal 2025, the Company recorded an aggregate expense of $4.0 million related to the settlement of litigation, of which $1.6 million was included in Corporate and $2.4 million was included in the NRS segment.

 

Grow New Jersey Assistance Act Tax Credit

 

In September 2017, the Company, the Company’s subsidiary IDT Domestic Telecom, Inc. (“IDT DT”), and certain other affiliates were certified by the New Jersey Economic Development Authority (“NJEDA”) as having met the requirements of the Grow New Jersey Assistance Act Tax Credit Program. The program provides for credits against a corporation’s New Jersey corporate business tax liability for maintaining a minimum number of employees in New Jersey, and that tax credits may be sold subject to certain conditions. On June 5, 2023, the Company received a 2019 tax credit certificate for $1.8 million from the NJEDA. In August 2023, the Company sold the certificate for cash of $1.6 million.

 

Contingent Consideration Liabilities

 

In fiscal 2024 and fiscal 2023, the Company recognized gains on the write-off of contingent consideration payment obligations in the Fintech segment of $1.8 million and $1.6 million, respectively, and, in fiscal 2024, the Company recognized a gain on the write-off of a contingent consideration payment obligation in the net2phone segment of $0.1 million. In fiscal 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 fiscal 2023, the Fintech segment received payments from government grants for the development and commercialization of blockchain-backed financial technologies.

 

Write-off of Capitalized Internal Use Software Costs

 

In fiscal 2024 and fiscal 2023, the Company reduced its unamortized capitalized internal use software costs for internal use software that was taken out of service and recorded expense of $0.3 million and $1.4 million, respectively.

 

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.