Note 14 - Other Operating Expense, Net

12 Months Ended

Jul. 31, 2026

Other Operating Income and Expense [Text Block]

Note 14—Other Operating Expense, Net

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

(in thousands)
Year ended July 31,	*2026*			*2025*			*2024*
Corporate
Straight Path Communications Inc. class action legal fees, net of reimbursements	$	422		$	(527	)	$	(7,237	)
Straight Path Communications Inc. class action insurance claims		—			—			2,869
Legal fees associated with settlement of litigation		(176	)		(1,575	)		—
Other		117			(1,000	)		12
Fintech
Write-off of intangible assets		—			—			(74	)
Write-off of contingent consideration liability		—			—			1,765
net2phone
Write-off of equipment		(285	)		(635	)		—
Write-off of contingent consideration		—			—			73
Other		—			3			(17	)
NRS
Settlement of litigation		33			(2,401	)		—
Write-off of capitalized internal use software		—			—			(45	)
Other		(479	)		—			(105	)
Traditional Communications
Write-off of equipment		—			(222	)		—
Write-off of capitalized internal use software		—			—			(237	)
Other		25			15			51
TOTAL	$	(343	)	$	(6,342	)	$	(2,945	)

Straight Path Communications Inc. Class Action

As discussed in Note 23, the Company and other parties were named in a putative class action and derivative complaint related to Straight Path Communications Inc. filed in the Court of Chancery of the State of Delaware. The Court dismissed all claims against the Company, and found that, contrary to the plaintiffs’ allegations, the class suffered no damages. The plaintiffs filed an appeal to which the Company answered. Oral argument was held on October 22, 2025, and on December 3, 2025, the Delaware Supreme Court affirmed the favorable decision of the Court of Chancery that dismissed all claims against the Company and found that Plaintiff and the class suffered no damages.

Settlement of Litigation

In fiscal 2026, the Company recorded an aggregate expense of $0.1 million related to the settlement of litigation, of which $0.2 million was included in Corporate, partially offset by less than $0.1 million recorded within the NRS segment in connection with the favorable resolution of a litigation matter.

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.

Contingent Consideration Liabilities

In fiscal 2024, the Company recognized a gain on the write-off of a contingent consideration payment obligation in the Fintech segment of $1.8 million, and a gain on the write-off of a contingent consideration payment obligation in the net2phone segment of $0.1 million.

Write-off of Equipment

In fiscal 2026, the Company reduced its net book value of equipment that was taken out of service and recorded expense of $0.3 million in the net2phone segment.

In fiscal 2025, the Company reduced its net book value of equipment that was taken out of service and recorded expense of $0.9 million, of which $0.6 million was recorded within the net2phone segment and $0.2 million within the Traditional Communications segment.

Write-off of Capitalized Internal Use Software Costs

In fiscal 2024, 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.