XML 42 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Related Party Transactions
12 Months Ended
Jul. 31, 2020
Related Party Transactions [Abstract]  
Related Party Transactions

Note 21—Related Party Transactions

 

Rafael Holdings, Inc.

 

In connection with the Rafael Spin-Off, the Company and Rafael entered into a Transition Services Agreement pursuant to which the Company provides to Rafael certain administrative and other services. The Company charged Rafael $0.4 million and $0.4 million in fiscal 2020 and fiscal 2019, respectively, for services provided. In addition, in fiscal 2019, the Company collected cash of $0.2 million on behalf of Rafael related to Rafael’s parking garage and third-party tenants. At July 31, 2020 and 2019, other current assets reported in the Company’s consolidated balance sheets included net receivable from Rafael of $50,000 and $0.1 million, respectively.

 

At July 31, 2020 and 2019, the Company held 27,806 and 27,419 shares, respectively, of Rafael Class B common stock (see Note 7).

 

See Note 3 for the Company’s lease commitments with Rafael.

 

Straight Path Communications Inc.

 

On July 5, 2017, certain of Straight Path stockholders filed a putative class action and derivative complaint against the Company and others (see Note 20). On September 20, 2016, the Company received a letter of inquiry from the Enforcement Bureau of the FCC requesting certain information and materials related to an investigation of potential violations by Straight Path Spectrum LLC (formerly a subsidiary of the Company and Straight Path) in connection with licenses to operate on the 28 GHz and 39 GHz bands of the Fixed Microwave Services (see Note 20).

 

Genie Energy Ltd.

 

On October 28, 2011, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary, Genie Energy Ltd. (“Genie”), to the Company’s stockholders of record as of the close of business on October 21, 2011 (the “Genie Spin-Off”). The Company entered into a Transition Services Agreement with Genie prior to the Genie Spin-Off, which provides for certain services to be performed by the Company and Genie. The Company charged Genie $1.1 million and $1.0 million in fiscal 2020 and fiscal 2019, respectively, for services provided and other items, net of the amounts charged by Genie to the Company. At July 31, 2020 and 2019, other current assets reported in the Company’s consolidated balance sheets included receivables from Genie of $0.2 million and $0.2 million, respectively.

 

Other Related Party Transactions

 

At July 31, 2020 and 2019, the Company held 42,282 shares of Zedge Class B common stock (see Note 7).

 

The Company provides office space, certain connectivity and other services to Jonas Media Group, a publishing firm owned by Howard S. Jonas. Billings for such services were $15,000 and $15,000 in fiscal 2020 and fiscal 2019, respectively. The balance owed to the Company by Jonas Media Group was $30,000 and $15,000 as of July 31, 2020 and 2019, respectively. In August 2020, the Company reduced its fiscal 2020 and fiscal 2019 billings by $14,000. The adjusted amount owed by Jonas Media Group to the Company was $16,000.

 

Mason and Company Consulting, LLC (“Mason and Co.”), a company owned solely by Jonathan Mason, receives annual commissions and fees for the insurance brokerage referral and placement of certain of the Company’s insurance policies. Jonathan Mason is the husband of Joyce J. Mason, the Company’s General Counsel, and brother-in-law of Howard S. Jonas. Based on information the Company received from Jonathan Mason, the Company believes that Mason and Co. received commissions and fees from payments made by the Company in the aggregate amount of $63,000 in fiscal 2020 and $24,000 in fiscal 2019. Neither Howard S. Jonas nor Joyce Mason has any ownership or other interest in Mason and Co., or the commissions paid to Mason and Co., other than via the familial relationships with Jonathan Mason.

 

In addition, in fiscal 2019, the Company obtained insurance policies from several insurance brokers, one of which was IGM Brokerage Corp. (“IGM”). IGM was owned by Irwin Jonas, father of Howard S. Jonas and Joyce Mason, until his death in October 2009, and then by Irwin Jonas’ widow—the mother of Howard S. Jonas and Joyce Mason. Jonathan Mason provided insurance brokerage services via IGM. Based on information the Company received from IGM, the Company believes that IGM received commissions and fees from payments made by the Company to third party brokers in the aggregate amount of $29,000 in fiscal 2019, which fees and commissions inured to the benefit of Mr. Mason. Neither Howard S. Jonas nor Joyce Mason had any ownership or other interest in IGM or the commissions paid to IGM other than via the familial relationships with their mother and Jonathan Mason.

 

Since August 2009, IDT DT has leased space in a building in the Bronx, New York. Howard S. Jonas and Shmuel Jonas are members of the limited liability company that owns the building. The latest lease, which became effective November 1, 2012, had a one-year term with a one-year renewal option. Since the expiration of this lease and until May 31, 2020, the parties continued IDT DT’s occupancy of the space on the same terms. Aggregate annual rent under the lease was $60,900. On June 1, 2020, IDT DT released the space and moved into smaller space at an annual rent of $18,600.

 

The Company had loans receivable outstanding from employees aggregating $0.2 million and $0.2 million at July 31, 2020 and 2019, respectively, which are included in “Other current assets” in the accompanying consolidated balance sheets.

 

In December 2018, the Company sold shares of its Class B Common Stock to Howard S. Jonas (see Note 17).