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Acquisitions | 6 Months Ended
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Jan. 31, 2021
Acquistions [Abstract] |
Acquisitions | Note 9—Acquisitions On December 3, 2020, the Company’s subsidiary IDT International Telecom, Inc. (“IDTIT”) acquired 51% of the issued shares of a company that provides a digital distribution platform facilitating supply and distribution of mobile airtime and data top-ups and other services across borders via a single point application programming interface. The operating results of the acquired company from the date of acquisition, which were not significant, are included in the Company’s consolidated financial statements. The acquisition date fair value of the consideration consisted of the following (in thousands):
Cash paid |  | $ | 2,732 |
Cash acquired |  |  | (344 | )
Cash paid, net of cash acquired |  |  | 2,388 |
Contingent consideration |  |  | 393 |
Total fair value of consideration, net of cash acquired |  | $ | 2,781 |
The contingent consideration of $0.5 million will be paid (a) no later than November 30, 2021 if the acquired company generates EBITDA of no less than $1.0 million between October 1, 2020 and September 30, 2021; or (b) no later than November 30, 2022 if the acquired company generates EBITDA of no less than $1.0 million between October 1, 2021 and September 30, 2022. The acquisition-date fair value of the contingent consideration was estimated using discounted cash flow models. This fair value measurement was based on significant inputs not observable in the market and therefore represents a Level 3 measurement. There was no change in the estimated fair value of the contingent consideration in the period from the acquisition date to January 31, 2021. In addition, IDTIT paid the $0.1 million loan payable from the acquired company to the seller, and the loan payable was assigned to IDTIT. Also, a subsidiary of the Company and the seller entered into a Put/Call Option Agreement related to the 5% of the issued shares of the acquired company that were not sold to IDTIT (“Option Shares”). On February 2, 2021, the seller exercised its option to cause the Company’s subsidiary to purchase the Option Shares for $0.3 million. To date, the purchase of the Options Shares is still in process. The impact of the acquisition’s purchase price allocations on the Company’s consolidated balance sheet was as follows (in thousands):
Trade accounts receivable |  | $ | 656 |
Prepaid expenses |  |  | 1,644 |
Property, plant and equipment |  |  | 75 |
Goodwill |  |  | 1,894 |
Customer relationships (15-year useful lives) |  |  | 1,960 |
Tradenames (20-year useful lives) |  |  | 440 |
Deferred income tax assets |  |  | 197 |
Other assets |  |  | 161 |
Trade accounts payable |  |  | (1,306 | )
Accrued expenses |  |  | (423 | )
Other current liabilities |  |  | (329 | )
Noncontrolling interests |  |  | (2,188 | )
Net assets excluding cash acquired |  | $ | 2,781 |
The goodwill was assigned to the Traditional Communications segment and was attributable primarily to the assembled workforces and the expected synergies from the business combination. The goodwill is not expected to be deductible for income tax purposes. The Company’s pro forma results of operations as if the acquisition occurred on August 1, 2019 were not materially different from the actual results of operations. Ringsouth Europa, S.L. On December 11, 2019, the Company’s subsidiary, net2phone, Inc. acquired 100% of the outstanding shares of Ringsouth Europa, S.L. (“Ringsouth”), a regional provider of cloud communications services to businesses in Spain. The acquisition date fair value of the consideration consisted of the following:
Cash paid |  | $ | 450 |
Contingent consideration |  |  | 375 |
Total fair value of consideration |  | $ | 825 |
Ringsouth’s operating results from the date of acquisition, which were not significant, were included in the Company’s consolidated financial statements. The Company’s pro forma results of operations as if the Ringsouth acquisition occurred on August 1, 2019 were not materially different from the actual results of operations.

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- Definition The entire disclosure for Acquisitions. + References No definition available. + Details
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