Related Party Transactions

9 Months Ended

Apr. 30, 2018

Note 7—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 costs of employee benefits, taxes and other liabilities and obligations; (2) services provided by IDT relating to human resources and employee benefits administration; and (3) finance, accounting, tax, facilities and legal services provided by IDT to the Company. Following the Spin-Off, IDT charges the Company for services it provides pursuant to a Transition Services Agreement entered into effective with the Spin-Off. 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. As of October 31, 2017, most of these services were discontinued and are being performed directly by Zedge or vendors retained by Zedge. Amounts charged by IDT to the Company are included in “Selling, general and administrative expense” in the consolidated statements of comprehensive loss.

	Three Months Ended April 30,						Nine Months Ended April 30,
	2018			2017			2018			2017
	(in thousands)						(in thousands)

Payments by IDT on behalf of the Company	$	14		$	160		$	274		$	798
Cash repayments, net of advances	$	(26	)	$	(181	)	$	(313	)	$	(1,041	)