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Subsequent Events
 12 Months Ended
Jul. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events

Note 19—Subsequent Events


Acquisition


Pursuant to an Asset Purchase Agreement, on August 1, 2021, the Company consummated the acquisition of substantially all of the assets of Emojipedia Pty Ltd, a proprietary company organized under the laws of Australia. The total purchase price of the assets is not expected to exceed $7 million. $4.8 million was funded into an escrow account on July 30, 2021 which is classified in other assets on the Consolidated Balance Sheet at July 31, 2021 and was paid at closing. The balance will be determined based on an incentive structure linked to EBITDA generated from emojipedia.org during the first four month period following the closing and paid out on the six-month and twelve month anniversary of the Closing.


The assets purchased include emojipeida.org, a set of smaller websites, a bank of emoji related URLs and other assets related to the Seller’s business, including World Emoji Day, the annual World Emoji Awards, and Emojitracker.


Although the Company has not finalized its analysis, the Company anticipates that this acquisition does not qualify as a business combination under FASB ASC 805, Business Combinations, and anticipates it will be accounted for it as asset acquisition. Additionally, the Company does not believe this acquisition meets the new prescribed significance tests under Rule 1-02(w) of Regulation S-X which took effect on January 1, 2021 and regards this acquisition as an insignificant business.


Foreign Exchange Forward Contracts


On August 26, 2021, the Company entered into the following foreign exchange forward contracts with Western Alliance Bank:


Settlement Date  U.S. Dollar Amount   NOK Amount 
Dec-21   225,000    1,966,794 
Jan-22   225,000    1,967,244 
Feb-22   225,000    1,967,896 
Mar-22   225,000    1,968,684 
Apr-22   225,000    1,969,696 
May-22   225,000    1,970,619 
           
Total  $1,350,000    11,810,933 

Settlement Date  U.S. Dollar Amount   EUR Amount 
Dec-21   225,000    189,340 
Jan-22   225,000    189,165 
Feb-22   225,000    189,037 
Mar-22   225,000    188,926 
Apr-22   225,000    188,800 
May-22   225,000    188,673 
           
Total  $1,350,000    1,133,940