v3.26.3
Related Party Transactions
12 Months Ended
Jul. 31, 2026
Related Party Transactions [Abstract]  
Related Party Transactions

Note 13—Related Party Transactions

 

On June 1, 2016, IDT’s interest in the Company was spun-off by IDT to IDT’s stockholders and the Company became an independent publicly-held company. Following the Spin-Off, IDT charges the Company for services it provides, and the Company charges IDT for services it provides, pursuant to Services Agreements.

 

In fiscal 2026 and 2025, the Company was charged by IDT a total of $131,000 and $126,000, respectively, for legal services. In addition, the Company charged IDT approximately $89,000 and $86,000, respectively, for consulting services provided to IDT by a Zedge employee.  As of July 31, 2026 and 2025, the Company owed IDT $9,000 and $1,000 respectively.

 

The activities between the Company and IDT were as follows (in thousands):

  

July 31,   2026     2025  
Balance at beginning of year   $ 1       2  
Legal services provided by IDT     131       126  
Consulting services provided to IDT     (89 )     (86 )
Cash payments made to IDT     (34 )     (40 )
Due to IDT*   $ 9       1  

 

* Due to IDT is included in accrued expenses and other current liabilities

 

On June 19, 2024, the Company signed a revenue sharing agreement with National Retail Services, Inc. (“NRS”), a wholly owned subsidiary of IDT, whereby the Zedge group of companies (Zedge, Emojipedia and GuruShots) will provide a selection of their digital content for display on NRS’s screens and share in the revenue generated from the resulting advertisements.

 

In fiscal 2026 and 2025 the Company’s revenue generated in accordance to the NRS revenue sharing agreement was $17,000 and $147,000, respectively. As of July 31, 2026 and 2025, the Company was owed $2,000 and $10,000, respectively, from NRS which is included in prepaid expenses and other receivables.

 

July 31,   2026     2025  
Balance at beginning of year   $ (10 )     (19 )
Revenue share from NRS     (17 )     (147 )
Cash payments received from NRS     24       156  
Due from NRS   $ (2 )     (10 )

 

The Company is party to a consulting agreement with Activist Artist Management, LLC (“Activist”), which assists the company in strategic business development. A member of the Company’s Board of Directors and the Chairman of the Audit Committee owns a significant minority stake in Activist. The Company paid $60,000 to Activist in each of the fiscal years ended July 31, 2026 and 2025.