Related Party Transactions

12 Months Ended

Jul. 31, 2017

Note 11—Related Party Transactions

Prior to the Spin-Off, IDT charged the Company for certain transactions and allocated routine expenses based on company specific items covered under a Master Services Agreement. This agreement provided for, among other things: (1) the allocation between the Company and IDT of employee benefits, taxes and other liabilities and obligations; (2) services to be provided by IDT relating to human resources and employee benefits administration; and (3) finance, accounting, tax, facilities and legal services to be provided by IDT to the Company. Following the Spin-Off, IDT charges the Company for services it provides pursuant to the Transition Services Agreement. The services provided pursuant to the Transition Services Agreement include human resources, payroll, investor relations, legal, accounting, tax, financial systems, management consulting and foreign exchange risk management. IDT’s charges are included in “Selling, general and administrative expense” in the consolidated statements of comprehensive (loss) income.

The change in the Company’s liability to IDT was as follows:

Years ended July 31, (in thousands)	2017			2016
Balance at beginning of year	$	299		$	369
Payments by IDT on behalf of the Company		937			2,122
Cash repayments, net of advances		(1,200	)		(2,192	)
Balance at end of year	$	36		$	299

In the years ended July 31, 2017 and 2016, the Company paid $137,000 and $141,000, respectively, to Appboy, Inc. for use of its customer relationship management and lifecycle marketing platform. The Chief Executive Officer and Co-Founder of Appboy, Inc. is a member of the Company’s Board of Directors.