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Other Operating Gain (Expense), Net

6 Months Ended

Jan. 31, 2023

Other Income and Expenses [Abstract]

Note 10—Other Operating Gain (Expense), Net

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

	2023			2022			2023			2022
	Three Months Ended January 31,						Six Months Ended January 31,
	2023			2022			2023			2022
	(in thousands)
Corporate—Straight Path Communications Inc. class action legal fees	$	(1,597	)	$	(2,694	)	$	(4,109	)	$	(3,671	)
Corporate—Straight Path Communications Inc. class action insurance claims		1,263			1,972			2,988			2,887
Fintech—write-off of contingent consideration liability		—			—			1,565			—
Fintech— government grants		349			—			382			—
net2phone—write-off of contingent consideration liability		—			303			—			303
net2phone—other		—			(10	)		—			(10	)
Traditional Communications— cable telephony customer indemnification claim		(1	)		(12	)		(12	)		(36	)
Traditional Communications—other		3			(1	)		2			(3	)

Total other operating gain (expense), net	$	17		$	(442	)	$	816		$	(530	)

Straight Path Communications Inc. Class Action

As discussed in Note 16, the Company (as well as other defendants) has been named in a pending 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 the three and six months ended January 31, 2023 and 2022.

Write-off of Contingent Consideration Liabilities

In the six months ended January 31, 2023, the Company determined that the requirements for a portion of the contingent consideration payments related to the Leaf acquisition would not be met. In addition, in the three months ended January 31, 2022, the Company determined that the requirements for a contingent consideration payment related to an acquisition in December 2019 would not be met before the expiration date. The Company recognized gains on the write-off of these contingent consideration payment obligations in the Fintech and net2phone segments, respectively.

Government Grants

In the three and six months ended January 31, 2023, Leaf received payments from government grants for the development and commercialization of blockchain-backed financial technologies.

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.