PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for IDT Corporation, including balance sheets, statements of operations, comprehensive income (loss), equity, and cash flows, along with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet indicates an increase in total assets to $461.9 million at April 30, 2021, from $404.8 million at July 31, 2020, primarily driven by equity investments and deferred income tax assets | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :-------------------------- | :---------------------------- | :--------------------------- | | Total assets | $461,899 | $404,750 | | Total liabilities | $334,739 | $333,611 | | Total equity | $127,160 | $71,139 | - Current equity investments increased from **$5,964k** at July 31, 2020, to **$37,586k** at April 30, 2021. Deferred income tax assets, net, also saw a notable increase from **$8,512k** to **$22,530k**[10](index=10&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended April 30, 2021, revenues increased by 16.3% year-over-year, and net income attributable to IDT Corporation surged to $36.3 million from $0.5 million Consolidated Statements of Operations (Three Months Ended April 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :----------------------------------- | :------------------ | :------------------ | :------------- | | Revenues | $373,831 | $321,336 | +16.3% | | Income from operations | $13,872 | $3,792 | +265.8% | | Net income (loss) attributable to IDT Corporation | $36,348 | $518 | +6920.8% | | Basic EPS | $1.42 | $0.02 | +7000.0% | | Diluted EPS | $1.39 | $0.02 | +6850.0% | Consolidated Statements of Operations (Nine Months Ended April 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :----------------------------------- | :------------------ | :------------------ | :------------- | | Revenues | $1,057,022 | $985,425 | +7.3% | | Income from operations | $40,045 | $3,722 | +976.0% | | Net income (loss) attributable to IDT Corporation | $57,744 | $(63) | N/A (from loss to profit) | | Basic EPS | $2.27 | $(0.00) | N/A (from loss to profit) | | Diluted EPS | $2.23 | $(0.00) | N/A (from loss to profit) | [Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The Company reported a comprehensive income attributable to IDT Corporation of $36.9 million for the three months ended April 30, 2021, a significant turnaround from a loss of $(0.045) million in the prior year Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended April 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Net income (loss) | $36,398 | $385 | | Other comprehensive income (loss) | $567 | $(563) | | Comprehensive income (loss) attributable to IDT Corporation | $36,915 | $(45) | Consolidated Statements of Comprehensive Income (Loss) (Nine Months Ended April 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Net income (loss) | $58,018 | $(133) | | Other comprehensive income (loss) | $(980) | $(2,280) | | Comprehensive income (loss) attributable to IDT Corporation | $56,764 | $(2,343) | [Consolidated Statements of Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity increased substantially from $71.1 million at July 31, 2020, to $127.2 million at April 30, 2021, primarily driven by the period's net income which reduced the accumulated deficit - Total Equity increased from **$71,139k** at July 31, 2020, to **$127,160k** at April 30, 2021[21](index=21&type=chunk) - Accumulated Deficit decreased from **$(139,333)k** at July 31, 2020, to **$(81,589)k** at April 30, 2021, reflecting the period's net income[21](index=21&type=chunk) - Repurchases of Class B common stock through the repurchase program totaled **$(2,849)k** for the nine months ended April 30, 2021[21](index=21&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended April 30, 2021, net cash provided by operating activities was $38.1 million, a significant improvement from a net cash outflow of $(70.6) million in the prior year Consolidated Statements of Cash Flows (Nine Months Ended April 30) | Activity | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :-------------------------------------------------------------------- | :------------------ | :------------------ | :------------- | | Net cash provided by (used in) operating activities | $38,144 | $(70,643) | +$108,787k | | Net cash used in investing activities | $(46,788) | $(22,784) | $(24,004)k | | Net cash used in financing activities | $(4,221) | $(1,331) | $(2,890)k | | Net decrease in cash, cash equivalents, and restricted cash and cash equivalents | $(6,213) | $(90,746) | +$84,533k | - Significant investing outflows included purchases of debt securities and equity investments (**$39,347k** in 2021 vs **$14,790k** in 2020) and payments for acquisitions (**$2,656k** in 2021 vs **$450k** in 2020)[30](index=30&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the Company's accounting policies, business segments, revenue recognition, leases, cash management, debt and equity investments, fair value measurements, acquisitions, and other financial items [Note 1—Basis of Presentation](index=11&type=section&id=Note%201%E2%80%94Basis%20of%20Presentation) The unaudited interim financial statements are prepared in accordance with U.S. GAAP for interim information and Form 10-Q instructions, and do not include all disclosures required for complete annual financial statements - Interim financial statements are unaudited and prepared in accordance with U.S. GAAP for interim information and Form 10-Q[32](index=32&type=chunk) - The Company's fiscal year ends on July 31[33](index=33&type=chunk) [Note 2—Business Segment Information](index=11&type=section&id=Note%202%E2%80%94Business%20Segment%20Information) Effective August 1, 2020, the Company revised its reportable business segments to Fintech, net2phone-UCaaS, and Traditional Communications, reflecting the growth and increased contributions of its financial technology and cloud communications businesses - Revised reportable segments as of August 1, 2020: Fintech, net2phone-UCaaS, and Traditional Communications[34](index=34&type=chunk) - Fintech includes BOSS Revolution Money Transfer and National Retail Solutions (NRS). net2phone-UCaaS comprises net2phone's cloud communications offerings. Traditional Communications includes Mobile Top-Up, BOSS Revolution Calling, Carrier Services, and net2phone-Platform Services[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) Segment Revenues and Income (Loss) from Operations (Three Months Ended April 30) | Segment | Revenues 2021 (in thousands) | Revenues 2020 (in thousands) | Income (Loss) from Operations 2021 (in thousands) | Income (Loss) from Operations 2020 (in thousands) | | :------------------------- | :--------------------------- | :--------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Fintech | $16,644 | $14,684 | $(1,403) | $142 | | net2phone-UCaaS | $11,255 | $8,103 | $(3,684) | $(3,643) | | Traditional Communications | $345,932 | $298,549 | $20,074 | $9,503 | | Corporate | $— | $— | $(1,115) | $(2,210) | | **Total** | **$373,831** | **$321,336** | **$13,872** | **$3,792** | [Note 3—Revenue Recognition](index=12&type=section&id=Note%203%E2%80%94Revenue%20Recognition) Revenue is primarily recognized at a point in time for retail telecommunications and payment offerings, and wholesale international voice and SMS termination, with deferred revenue increasing to $42.8 million at April 30, 2021 - The most significant revenue streams are from Mobile Top-Up, BOSS Revolution Calling, and Carrier Services[41](index=41&type=chunk) Disaggregated Revenues by Service (Three Months Ended April 30) | Service | 2021 (in thousands) | 2020 (in thousands) | | :-------------------------- | :------------------ | :------------------ | | BOSS Revolution Money Transfer | $10,259 | $11,817 | | National Retail Solutions | $6,385 | $2,867 | | net2phone-UCaaS | $11,255 | $8,103 | | Mobile Top-Up | $132,603 | $85,139 | | BOSS Revolution Calling | $111,412 | $112,536 | | Carrier Services | $88,643 | $87,435 | | **Total** | **$373,831** | **$321,336** | - Deferred revenue increased to **$42,771k** at April 30, 2021, from **$40,114k** at July 31, 2020. Amortization of deferred customer contract acquisition costs increased to **$950k** for the three months ended April 30, 2021, from **$616k** in the prior year[10](index=10&type=chunk)[48](index=48&type=chunk)[51](index=51&type=chunk) [Note 4—Leases](index=15&type=section&id=Note%204%E2%80%94Leases) The Company's leases primarily consist of operating leases for office space, with remaining terms from one to five years, and an aggregate operating lease liability of $8.6 million at April 30, 2021 - Primary leases are operating leases for office space with remaining terms from one to five years[52](index=52&type=chunk) Total Lease Cost | Period | 2021 (in thousands) | 2020 (in thousands) | | :---------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $917 | $773 | | Nine Months Ended April 30 | $2,537 | $2,328 | - Total operating lease liabilities were **$8,624k** at April 30, 2021, compared to **$9,703k** at July 31, 2020[55](index=55&type=chunk) [Note 5—Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents](index=16&type=section&id=Note%205%E2%80%94Cash,%20Cash%20Equivalents,%20and%20Restricted%20Cash%20and%20Cash%20Equivalents) Total cash, cash equivalents, and restricted cash and cash equivalents decreased to $195.0 million at April 30, 2021, from $201.2 million at July 31, 2020, with restricted cash primarily comprising customer deposits Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :---------------------------------------------------------- | :---------------------------- | :--------------------------- | | Cash and cash equivalents | $84,017 | $84,860 | | Restricted cash and cash equivalents | $110,992 | $116,362 | | **Total** | **$195,009** | **$201,222** | - Restricted cash and cash equivalents primarily include customer deposits held by IDT Financial Services Limited[56](index=56&type=chunk) [Note 6—Debt Securities](index=17&type=section&id=Note%206%E2%80%94Debt%20Securities) Available-for-sale debt securities totaled $16.9 million at April 30, 2021, down from $18.4 million at July 31, 2020, primarily consisting of corporate bonds, municipal bonds, and U.S. Treasury bills and notes Available-for-Sale Debt Securities | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :-------------------------- | :---------------------------- | :--------------------------- | | Total Fair Value | $16,852 | $18,363 | | Gross Unrealized Losses | $(142) | $(16) | Contractual Maturities of Debt Securities (April 30, 2021) | Maturity Period | Fair Value (in thousands) | | :-------------------------- | :------------------------ | | Within one year | $5,048 | | After one year through five years | $5,986 | | After five years through ten years | $5,399 | | After ten years | $419 | | **Total** | **$16,852** | [Note 7—Equity Investments](index=18&type=section&id=Note%207%E2%80%94Equity%20Investments) Current equity investments significantly increased to $37.6 million at April 30, 2021, from $6.0 million at July 31, 2020, primarily due to increased holdings in fixed income mutual funds and Rafael Holdings, Inc. Class B common stock Equity Investments | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :-------------------------- | :---------------------------- | :--------------------------- | | Current equity investments | $37,586 | $5,964 | | Noncurrent equity investments | $14,922 | $8,833 | - The Company purchased **218,245** newly issued shares of Rafael Holdings, Inc. Class B common stock and a warrant for **$5.0 million** in December 2020, and exercised the warrant for **$1.0 million** in March 2021[62](index=62&type=chunk) Net Gains (Losses) Recognized on Equity Investments | Period | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $5,435 | $(1,226) | | Nine Months Ended April 30 | $5,822 | $(817) | - On February 2, 2021, the Company paid **$4.0 million** to purchase shares of series B convertible preferred stock in a communications company, representing **23.95%** of its outstanding shares, and accounts for it using the equity method[67](index=67&type=chunk) [Note 8—Fair Value Measurements](index=20&type=section&id=Note%208%E2%80%94Fair%20Value%20Measurements) The Company measures certain assets and liabilities at fair value on a recurring basis, categorized into Level 1, 2, and 3 inputs, with total assets measured at fair value increasing to $59.7 million at April 30, 2021 Assets Measured at Fair Value (April 30, 2021) | Category | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | | Debt securities | $1,644 | $15,208 | $— | $16,852 | | Equity investments (current assets) | $26,759 | $10,827 | $— | $37,586 | | Equity investments (noncurrent assets) | $— | $2,920 | $2,343 | $5,263 | | **Total** | **$28,403** | **$28,955** | **$2,343** | **$59,701** | - Contingent consideration included in other noncurrent liabilities (Level 3) increased to **$(795)k** at April 30, 2021, from **$(396)k** at July 31, 2020[71](index=71&type=chunk) - Investments in hedge funds (**$3.5 million** at April 30, 2021) are accounted for using the equity method and are not measured at fair value[72](index=72&type=chunk) [Note 9—Acquisitions](index=23&type=section&id=Note%209%E2%80%94Acquisitions) In December 2020, IDTIT acquired 51% of a digital distribution platform company for $2.4 million cash plus $0.4 million in contingent consideration, resulting in $2.0 million in goodwill assigned to the Traditional Communications segment - IDTIT acquired **51%** of a digital distribution platform company on December 3, 2020, for **$2,388k** cash (net of cash acquired) and **$393k** contingent consideration[78](index=78&type=chunk) - Goodwill of **$2,025k** was assigned to the Traditional Communications segment from the December 2020 acquisition[79](index=79&type=chunk) - net2phone acquired **100%** of Ringsouth Europa, S.L. on December 11, 2019, for **$450k** cash and **$375k** contingent consideration[81](index=81&type=chunk) [Note 10—Other Operating Gain (Expense), Net](index=25&type=section&id=Note%2010%E2%80%94Other%20Operating%20Gain%20(Expense),%20Net) Other operating gain (expense), net, significantly improved to a gain of $0.6 million for the three months ended April 30, 2021, from an expense of $(0.2) million in the prior year, driven by insurance claims and a gain from the sale of lawsuit rights Other Operating Gain (Expense), Net | Period | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $595 | $(234) | | Nine Months Ended April 30 | $1,550 | $(3,402) | - Includes a **$2.0 million** gain from the sale of rights under the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation in the nine months ended April 30, 2021[84](index=84&type=chunk) - Corporate segment recorded **$605k** gain (net of legal fees) from Straight Path Communications Inc. class action insurance claims for the three months ended April 30, 2021[82](index=82&type=chunk) [Note 11—Equity](index=27&type=section&id=Note%2011%E2%80%94Equity) The Company repurchased 463,792 shares of Class B common stock for $2.8 million under its stock repurchase program in the nine months ended April 30, 2021, with 5.8 million shares remaining available - Repurchased **463,792** shares of Class B common stock for **$2.8 million** in the nine months ended April 30, 2021, under a program with **5.8 million** shares remaining[88](index=88&type=chunk) - Issued **283,838** shares of Class B common stock for vested Deferred Stock Units (DSUs) on January 5, 2021[90](index=90&type=chunk) - Granted restricted shares in net2phone 2.0, Inc. (**5%** of outstanding common stock) to Howard S. Jonas and Shmuel Jonas, vesting upon achieving **$18 million** in subscription revenue or a **$100 million** valuation by October 31, 2023[92](index=92&type=chunk) [Note 12—Earnings (Loss) Per Share](index=27&type=section&id=Note%2012%E2%80%94Earnings%20(Loss)%20Per%20Share) Basic EPS for the three months ended April 30, 2021, was $1.42, up from $0.02 in the prior year, reflecting the Company's improved profitability Earnings (Loss) Per Share (Three Months Ended April 30) | Metric | 2021 | 2020 | | :----------- | :--- | :--- | | Basic EPS | $1.42 | $0.02 | | Diluted EPS | $1.39 | $0.02 | Earnings (Loss) Per Share (Nine Months Ended April 30) | Metric | 2021 | 2020 | | :----------- | :--- | :--- | | Basic EPS | $2.27 | $(0.00) | | Diluted EPS | $2.23 | $(0.00) | - The weighted-average number of shares used in the diluted EPS calculation for the three months ended April 30, 2021, was **26,136k**, compared to **26,506k** in 2020[96](index=96&type=chunk) [Note 13—Accumulated Other Comprehensive Loss](index=29&type=section&id=Note%2013%E2%80%94Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss increased to $(8.4) million at April 30, 2021, from $(7.4) million at July 31, 2020, primarily due to foreign currency translation adjustments and unrealized losses on available-for-sale securities Accumulated Other Comprehensive Loss | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :----------------------------------- | :---------------------------- | :--------------------------- | | Accumulated Other Comprehensive Loss | $(8,390) | $(7,410) | - Other comprehensive loss attributable to IDT Corporation for the nine months ended April 30, 2021, was **$(980)k**[97](index=97&type=chunk) [Note 14—Commitments and Contingencies](index=29&type=section&id=Note%2014%E2%80%94Commitments%20and%20Contingencies) The Company is monitoring COVID-19 impacts, involved in legal proceedings, and has accrued $41.6 million for FCC-related regulatory fees at April 30, 2021 - COVID-19 led to significant increases in demand for digital consumer offerings (BOSS Revolution Money Transfer, Calling, Mobile Top-Up) and resilience in NRS, but accelerated decline in Carrier Services[127](index=127&type=chunk) - A pending putative class action on behalf of Straight Path's stockholders and derivative complaint naming the Company is scheduled for trial in December 2021[102](index=102&type=chunk) - Accrued expenses included **$41.6 million** at April 30, 2021, for FCC-related regulatory fees. The Company also has aggregate performance bonds of **$19.8 million** outstanding[105](index=105&type=chunk)[107](index=107&type=chunk) [Note 15—Other Income (Expense), Net](index=33&type=section&id=Note%2015%E2%80%94Other%20Income%20(Expense),%20Net) Other income (expense), net, improved significantly to a gain of $3.8 million for the three months ended April 30, 2021, from an expense of $(2.1) million in the prior year, primarily driven by substantial gains on investments Other Income (Expense), Net | Period | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $3,815 | $(2,144) | | Nine Months Ended April 30 | $5,608 | $(1,360) | Gain (Loss) on Investments | Period | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $5,435 | $(1,226) | | Nine Months Ended April 30 | $5,822 | $(817) | - Equity in the net loss of investee was **$(528)k** for both the three and nine months ended April 30, 2021[111](index=111&type=chunk) [Note 16—Income Taxes](index=33&type=section&id=Note%2016%E2%80%94Income%20Taxes) The Company released $24.0 million of its valuation allowance on deferred income tax assets in the three and nine months ended April 30, 2021, based on three consecutive years of profitability in the United States and expected future profitability - Released **$24.0 million** of valuation allowance on deferred income tax assets in the three and nine months ended April 30, 2021[112](index=112&type=chunk) - The primary factors for the release were three consecutive years of profitability in the United States and expected future profitability in both the United States and the United Kingdom[112](index=112&type=chunk) [Note 17—Recently Issued Accounting Standards Not Yet Adopted](index=33&type=section&id=Note%2017%E2%80%94Recently%20Issued%20Accounting%20Standards%20Not%20Yet%20Adopted) The Company is evaluating the impact of new accounting standards, including ASU No. 2016-13 (Credit Losses), ASU No. 2019-12 (Income Taxes), and ASU No. 2020-01 (Equity Investments), all to be adopted in future fiscal years - ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), will be adopted on August 1, 2023[113](index=113&type=chunk) - ASU No. 2019-12, Income Taxes (Topic 740), will be adopted on August 1, 2021[114](index=114&type=chunk) - ASU No. 2020-01, Investments—Equity Securities (Topic 321), will be adopted on August 1, 2021[115](index=115&type=chunk) [Note 18— Revolving Credit Facility—Subsequent Event](index=33&type=section&id=Note%2018%E2%80%94%20Revolving%20Credit%20Facility%E2%80%94Subsequent%20Event) Subsequent to the quarter, IDT Telecom, Inc. entered into a new $25.0 million revolving credit facility with TD Bank, N.A. on May 17, 2021, secured by its assets and maturing in May 2024 - IDT Telecom, Inc. entered into a new **$25.0 million** revolving credit facility with TD Bank, N.A. on May 17, 2021 (subsequent event)[116](index=116&type=chunk) - The facility is secured by primarily all of IDT Telecom's assets, bears interest based on the LIBO rate, and all outstanding principal is due in May 2024[116](index=116&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, including the impact of COVID-19, segment performance, and liquidity - The Company will transition from scaled disclosure available to smaller reporting companies to disclosure requirements applicable to all other companies beginning with its Quarterly Report on Form 10-Q for its first quarter in fiscal 2022, due to its public float exceeding **$200 million**[119](index=119&type=chunk) - COVID-19 had mixed financial impacts, driving significant increases in demand for consumer offerings through digital channels but accelerating the decline in Carrier Services[127](index=127&type=chunk) - The Company expects its cash from operations and current liquid assets to be sufficient to meet working capital and capital expenditure requirements for the twelve-month period ending April 30, 2022[128](index=128&type=chunk)[173](index=173&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) The Company's overall results of operations improved significantly, with total revenues increasing and income from operations surging for both the three and nine months ended April 30, 2021 Consolidated Income from Operations | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $13.9 | $3.8 | +265.8% | | Nine Months Ended April 30 | $40.0 | $3.7 | +975.9% | - Stock-based compensation expense included in consolidated selling, general and administrative expenses decreased to **$0.3 million** (3 months) and **$1.2 million** (9 months) in 2021, from **$0.8 million** and **$3.3 million** in 2020, respectively[167](index=167&type=chunk) [Fintech Segment](index=36&type=section&id=Fintech%20Segment) Fintech revenues increased by 13.3% for the three months and 62.5% for the nine months ended April 30, 2021, primarily driven by the expansion of National Retail Solutions (NRS) POS network Fintech Segment Revenues | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $16.6 | $14.7 | +13.3% | | Nine Months Ended April 30 | $55.2 | $34.0 | +62.5% | - NRS revenues increased by **122.7%** (3 months) and **126.3%** (9 months) due to POS network expansion and growth in payment processing and digital advertising[133](index=133&type=chunk) - BOSS Revolution Money Transfer revenues decreased by **13.2%** (3 months) due to transient foreign exchange market conditions ceasing, but increased by **45.0%** (9 months) due to increased digital transaction volume[133](index=133&type=chunk) Fintech Segment (Loss) Income from Operations | Period | 2021 (in millions) | 2020 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Three Months Ended April 30 | $(1.4) | $0.1 | | Nine Months Ended April 30 | $1.5 | $(5.7) | [net2phone-UCaaS Segment](index=38&type=section&id=net2phone-UCaaS%20Segment) net2phone-UCaaS revenues increased by 38.9% for the three months and 36.1% for the nine months ended April 30, 2021, primarily driven by a 51% growth in seats served and strong subscription revenue growth net2phone-UCaaS Segment Revenues | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $11.3 | $8.1 | +38.9% | | Nine Months Ended April 30 | $31.6 | $23.2 | +36.1% | - Seats served increased **51%** to **210,000** at April 30, 2021, from **139,000** at April 30, 2020. Subscription revenue increased **39.4%** (3 months) and **35.9%** (9 months), led by growth in the U.S. market[142](index=142&type=chunk) net2phone-UCaaS Segment Loss from Operations | Period | 2021 (in millions) | 2020 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Three Months Ended April 30 | $(3.7) | $(3.6) | | Nine Months Ended April 30 | $(10.7) | $(11.1) | [Traditional Communications Segment](index=41&type=section&id=Traditional%20Communications%20Segment) Traditional Communications revenues increased by 15.9% for the three months and 4.5% for the nine months ended April 30, 2021, primarily due to significant growth in Mobile Top-Up, with income from operations more than doubling for both periods Traditional Communications Segment Revenues | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $345.9 | $298.5 | +15.9% | | Nine Months Ended April 30 | $970.2 | $928.2 | +4.5% | - Mobile Top-Up revenues increased by **55.8%** (3 months) and **36.7%** (9 months) due to product expansion and growth across distribution channels[151](index=151&type=chunk) - Carrier Services revenues increased by **1.4%** (3 months) but decreased by **12.9%** (9 months), with minutes of use declining by **26.5%** (3 months) and **29.4%** (9 months) due to global transition away from international voice calling, accelerated by COVID-19[151](index=151&type=chunk)[153](index=153&type=chunk) Traditional Communications Segment Income from Operations | Period | 2021 (in millions) | 2020 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Three Months Ended April 30 | $20.1 | $9.5 | | Nine Months Ended April 30 | $54.6 | $27.8 | [Corporate](index=43&type=section&id=Corporate) Corporate loss from operations decreased for both the three and nine months ended April 30, 2021, primarily due to decreases in stock-based compensation and employee compensation, and offsetting gains from insurance claims Corporate Loss from Operations | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $(1.1) | $(2.2) | +49.6% | | Nine Months Ended April 30 | $(5.3) | $(7.2) | +26.8% | - Corporate general and administrative expense decreased due to lower stock-based compensation and employee compensation[163](index=163&type=chunk) - Recorded offsetting gains from insurance claims for the Straight Path class action of **$0.9 million** (3 months) and **$2.6 million** (9 months) in 2021[164](index=164&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The Company's liquidity position is strong, with $127.6 million in cash, cash equivalents, debt securities, and unrestricted current equity investments, and $26.7 million in working capital at April 30, 2021 - At April 30, 2021, the Company had **$127.6 million** in cash, cash equivalents, debt securities, and unrestricted current equity investments, and working capital of **$26.7 million**[174](index=174&type=chunk) Cash Flows (Nine Months Ended April 30) | Activity | 2021 (in millions) | 2020 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Operating activities | $38.1 | $(70.6) | | Investing activities | $(46.8) | $(22.8) | | Financing activities | $(4.2) | $(1.3) | - Capital expenditures were **$13.5 million** for the nine months ended April 30, 2021, with an anticipated **$18 million to $20 million** for the next twelve months[183](index=183&type=chunk) - The Company repurchased **463,792** shares of Class B common stock for **$2.8 million** in the nine months ended April 30, 2021[195](index=195&type=chunk) [Other Sources and Uses of Resources](index=50&type=section&id=Other%20Sources%20and%20Uses%20of%20Resources) The Company intends to pursue strategic investments and acquisitions to complement, expand, and/or enter into new businesses, seeking opportunities that meet its return-on-investment criteria and contribute to profitable growth and diversification - The Company intends to make strategic investments and acquisitions to complement, expand, and/or enter into new businesses[198](index=198&type=chunk) [Contractual Obligations and Other Commercial Commitments](index=50&type=section&id=Contractual%20Obligations%20and%20Other%20Commercial%20Commitments) Total contractual obligations at April 30, 2021, amounted to $13.9 million, primarily comprising purchase commitments, connectivity obligations, and operating leases Total Contractual Obligations (April 30, 2021) | Obligation Type | Total (in millions) | Less than 1 year (in millions) | 1–3 years (in millions) | 4–5 years (in millions) | After 5 years (in millions) | | :----------------------------------- | :------------------ | :----------------------------- | :---------------------- | :---------------------- | :-------------------------- | | Purchase commitments | $3.4 | $3.4 | $— | $— | $— | | Connectivity obligations | $1.1 | $0.8 | $0.3 | $— | $— | | Operating leases | $9.4 | $3.1 | $4.4 | $1.9 | $— | | **Total** | **$13.9** | **$7.3** | **$4.7** | **$1.9** | **$—** | - The table excludes an aggregate of **$19.8 million** in performance bonds and **$1.3 million** in potential contingent consideration related to business acquisitions due to the uncertainty of the amount and/or timing of any such payments[199](index=199&type=chunk) [Off-Balance Sheet Arrangements](index=50&type=section&id=Off-Balance%20Sheet%20Arrangements) The Company has no significant off-balance sheet arrangements, as defined by SEC regulations, other than indemnification agreements related to the Straight Path spin-off and $19.8 million in performance bonds outstanding - The Company has indemnification agreements with Straight Path related to its spin-off, covering liabilities for federal, state, local, and foreign taxes for periods before and including the spin-off[201](index=201&type=chunk) - Aggregate performance bonds of **$19.8 million** were outstanding at April 30, 2021, issued through third parties for money remittance licenses and telecommunications resellers[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a smaller reporting company, IDT Corporation is not required to provide quantitative and qualitative disclosures about market risks in this Quarterly Report on Form 10-Q - The Company is not required to provide quantitative and qualitative disclosures about market risks as it qualifies as a smaller reporting company[203](index=203&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of April 30, 2021, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer evaluated and concluded that the Company's disclosure controls and procedures were effective as of April 30, 2021[204](index=204&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended April 30, 2021[205](index=205&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings in which the Company is involved is detailed in Note 14 to the Consolidated Financial Statements - Legal proceedings in which the Company is involved are described in Note 14 to the Consolidated Financial Statements[208](index=208&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The Company faces new and ongoing risks, including those related to Brexit's impact on its U.K.-based businesses and financial services, the concentrated voting power of trusts benefiting Howard S. Jonas's children, and potential harm from imminent FCC Orders and rules - Brexit poses risks to U.K.-based businesses, including regulatory complexities, higher costs, and the loss of passporting rights for IDT Financial Services Limited (IDTFS), which previously serviced EU customers[209](index=209&type=chunk)[211](index=211&type=chunk) - Eight trusts for the benefit of Howard S. Jonas's children collectively hold approximately **69.5%** of the combined voting power, which may limit the ability of other stockholders to affect management and creates an anti-takeover effect[212](index=212&type=chunk)[215](index=215&type=chunk) - Imminent FCC Orders and rules, specifically the STIR/SHAKEN caller identification framework, could harm the telecommunications marketplace and the Company, particularly concerning foreign carrier compliance and potential penalties[216](index=216&type=chunk)[218](index=218&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or purchases of shares under the publicly announced repurchase program occurred during the third quarter of fiscal 2021 (February 1 - April 30, 2021) - No shares were purchased under the stock repurchase program during the three months ended April 30, 2021[219](index=219&type=chunk) - As of April 30, 2021, **5.8 million** shares remained available for repurchase under the stock repurchase program[219](index=219&type=chunk) [Item 3. Defaults Upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reported period - None[220](index=220&type=chunk) [Item 4. Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Not applicable[221](index=221&type=chunk) [Item 5. Other Information](index=54&type=section&id=Item%205.%20Other%20Information) There is no other information to report under this item - None[221](index=221&type=chunk) [Item 6. Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, as well as XBRL taxonomy extension documents - Includes certifications of the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2)[222](index=222&type=chunk) - Includes XBRL Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents (Exhibits 101.SCH, CAL, DEF, LAB, PRE) and Cover Page Interactive Data File (Exhibit 104)[222](index=222&type=chunk) SIGNATURES [SIGNATURES](index=56&type=section&id=SIGNATURES) The Quarterly Report on Form 10-Q was duly signed on behalf of IDT Corporation by Shmuel Jonas, Chief Executive Officer, and Marcelo Fischer, Chief Financial Officer, on June 9, 2021 - The report was signed by Shmuel Jonas, Chief Executive Officer, and Marcelo Fischer, Chief Financial Officer, on June 9, 2021[226](index=226&type=chunk)

IDT Corporation (NYSE:IDT) Q3 2021 Results Earnings Conference Call June 3, 2021 5:30 PM ET Company Participants Samuel Jonas - CEO Marcelo Fischer - CFO Conference Call Participants James Smith - Private Investor Brian Warner - Private Investor Operator Good evening, and welcome to the IDT Corporation's Third Quarter Fiscal Year 2021 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the 3-month period ended April 30, 2021. [Operator Instructio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-16371 IDT CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 22-3415036 (State or other jurisdiction of incorporation or organization) (I.R.S. Empl ...

IDT Corp (NYSE:IDT) Q2 2021 Earnings Conference Call March 4, 2021 5:30 PM ET Company Participants Samuel Jonas - CEO Marcelo Fischer - CFO Conference Call Participants Operator Good evening, and welcome to the IDT Corporation's Second Quarter Fiscal Year 2021 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the 3-month period ending January 31, 2021. [Operator Instructions]. After the prepared remarks, Marcelo Fischer, IDT's Chief Financial O ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents IDT Corporation's unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, with detailed explanatory notes for the period ended October 31, 2020 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show a slight increase in total assets and a decrease in total liabilities, leading to an increase in total equity from July 31, 2020, to October 31, 2020 | Metric | Oct 31, 2020 (in thousands) | Jul 31, 2020 (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $74,082 | $84,860 | | Restricted cash and cash equivalents | $114,046 | $116,362 | | Equity investments (current) | $21,036 | $5,964 | | Total current assets | $325,282 | $322,132 | | Total assets | $405,946 | $404,750 | | Total current liabilities | $319,867 | $324,870 | | Total liabilities | $328,363 | $333,611 | | Total equity | $77,583 | $71,139 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a significant turnaround from a net loss in the three months ended October 31, 2019, to net income in the same period of 2020, driven by increased revenues and a substantial improvement in income from operations | Metric | Three Months Ended Oct 31, 2020 (in thousands) | Three Months Ended Oct 31, 2019 (in thousands) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Revenues | $343,425 | $340,200 | | Total costs and expenses | $329,920 | $338,817 | | Income (loss) from operations | $13,253 | $(1,392) | | Net income (loss) attributable to IDT Corporation | $8,288 | $(1,513) | | Basic EPS | $0.32 | $(0.06) | | Diluted EPS | $0.32 | $(0.06) | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company achieved comprehensive income of **$8.6 million** for the three months ended October 31, 2020, a significant improvement from a comprehensive loss of **$2.6 million** in the prior year | Metric | Three Months Ended Oct 31, 2020 (in thousands) | Three Months Ended Oct 31, 2019 (in thousands) | | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income (loss) | $8,415 | $(1,422) | | Other comprehensive income (loss) | $222 | $(1,204) | | Comprehensive income (loss) | $8,637 | $(2,626) | [Consolidated Statements of Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity increased by **$6.4 million** from July 31, 2020, to October 31, 2020, primarily driven by net income and other comprehensive income, partially offset by repurchases of Class B common stock | Metric | Balance at Oct 31, 2020 (in thousands) | Balance at Jul 31, 2020 (in thousands) | | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Total IDT Corporation stockholders' equity | $81,117 | $74,772 | | Noncontrolling interests | $(3,534) | $(3,633) | | Total Equity | $77,583 | $71,139 | - The company repurchased **463,792 shares** of Class B common stock for an aggregate purchase price of **$2.8 million** during the three months ended October 31, 2020[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$18.8 million** in Q1 2020 from a net cash used of **$5.0 million** in Q1 2019, despite increased investing activities leading to an overall net decrease in cash | Metric | Three Months Ended Oct 31, 2020 (in thousands) | Three Months Ended Oct 31, 2019 (in thousands) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by (used in) operating activities | $18,767 | $(4,977) | | Net cash used in investing activities | $(27,263) | $(11,264) | | Net cash (used in) provided by financing activities | $(2,739) | $17 | | Net decrease in cash, cash equivalents, and restricted cash and cash equivalents | $(13,094) | $(4,798) | | Cash, cash equivalents, and restricted cash and cash equivalents at end of period | $188,128 | $252,401 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the consolidated financial statements, covering accounting policies, business segments, revenue recognition, and other financial details [Note 1—Basis of Presentation](index=9&type=section&id=Note%201%E2%80%94Basis%20of%20Presentation) The unaudited interim consolidated financial statements are prepared in accordance with U.S. GAAP and SEC regulations, and the operating results for the three months ended October 31, 2020, are not necessarily indicative of the full fiscal year ending July 31, 2021 - The company's fiscal year ends on **July 31** of each calendar year[24](index=24&type=chunk) - Interim financial statements are unaudited and do not include all information and notes required by U.S. GAAP for complete financial statements[23](index=23&type=chunk) [Note 2—Business Segment Information](index=9&type=section&id=Note%202%E2%80%94Business%20Segment%20Information) Effective August 1, 2020, the company revised its reportable business segments to Fintech, net2phone-UCaaS, and Traditional Communications, reflecting the growth and increased contributions of its financial technology and cloud communications businesses - Company revised reportable business segments to Fintech, net2phone-UCaaS, and Traditional Communications, effective **August 1, 2020**[25](index=25&type=chunk) - Fintech segment comprises BOSS Revolution Money Transfer and National Retail Solutions (NRS)[27](index=27&type=chunk) - Traditional Communications segment includes BOSS Revolution Calling, Mobile Top-Up, Carrier Services, and net2phone-Platform Services[29](index=29&type=chunk) | Segment | 2020 Revenues (in thousands) | 2020 Income (loss) from operations (in thousands) | 2019 Revenues (in thousands) | 2019 (Loss) income from operations (in thousands) | | :--------------------- | :--------------------------- | :------------------------------------------------ | :--------------------------- | :------------------------------------------------ | | Fintech | $20,087 | $3,136 | $9,557 | $(2,670) | | net2phone-UCaaS | $9,628 | $(3,806) | $7,207 | $(3,708) | | Traditional Communications | $313,710 | $15,787 | $323,436 | $7,487 | | Corporate | $— | $(1,864) | $— | $(2,501) | | Total | $343,425 | $13,253 | $340,200 | $(1,392) | [Note 3—Revenue Recognition](index=10&type=section&id=Note%203%E2%80%94Revenue%20Recognition) The company's revenue is primarily recognized at a point in time for most services, with net2phone-UCaaS having some revenue recognized over time, with significant streams from BOSS Revolution Calling, Mobile Top-Up, and Carrier Services - The company's most significant revenue streams are from BOSS Revolution Calling, Mobile Top-Up, and Carrier Services[32](index=32&type=chunk) | Service | 2020 (in thousands) | 2019 (in thousands) | | :---------------------- | :------------------ | :------------------ | | BOSS Revolution Money Transfer | $15,157 | $7,202 | | National Retail Solutions | $4,930 | $2,355 | | net2phone-UCaaS | $9,628 | $7,207 | | Mobile Top-Up | $95,785 | $76,815 | | BOSS Revolution Calling | $116,231 | $116,242 | | Carrier Services | $87,775 | $113,517 | | Other | $13,919 | $16,862 | | Total | $343,425 | $340,200 | | Metric | Oct 31, 2020 (in thousands) | Jul 31, 2020 (in thousands) | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Deferred customer contract acquisition costs (current) | $2,734 | $2,350 | | Deferred customer contract acquisition costs (noncurrent) | $2,581 | $2,384 | | Total | $5,315 | $4,734 | [Note 4—Leases](index=12&type=section&id=Note%204%E2%80%94Leases) The company's leases primarily consist of operating leases for office space, with terms ranging from one to five years, and an aggregate operating lease liability of **$9.7 million** at October 31, 2020 | Metric | 2020 (in thousands) | 2019 (in thousands) | | :------------------ | :------------------ | :------------------ | | Operating lease cost | $729 | $711 | | Short-term lease cost | $65 | $58 | | Total lease cost | $794 | $769 | | Metric | Oct 31, 2020 (in thousands) | Jul 31, 2020 (in thousands) | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Operating lease liabilities (current) | $2,477 | $2,350 | | Operating lease liabilities (noncurrent) | $7,193 | $7,353 | | Total | $9,670 | $9,703 | [Note 5—Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents](index=14&type=section&id=Note%205%E2%80%94Cash,%20Cash%20Equivalents,%20and%20Restricted%20Cash%20and%20Cash%20Equivalents) Total cash, cash equivalents, and restricted cash decreased to **$188.1 million** at October 31, 2020, from **$201.2 million** at July 31, 2020, with **$114.0 million** restricted for customer deposits | Metric | Oct 31, 2020 (in thousands) | Jul 31, 2020 (in thousands) | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $74,082 | $84,860 | | Restricted cash and cash equivalents | $114,046 | $116,362 | | Total | $188,128 | $201,222 | - Restricted cash and cash equivalents included **$114.0 million** (Oct 31, 2020) and **$116.3 million** (Jul 31, 2020) for customer deposits held by IDT Financial Services Limited[48](index=48&type=chunk) [Note 6—Debt Securities](index=14&type=section&id=Note%206%E2%80%94Debt%20Securities) The fair value of available-for-sale debt securities increased to **$23.9 million** at October 31, 2020, from **$18.4 million** at July 31, 2020, primarily due to increased holdings across various debt instruments | Type | Oct 31, 2020 (in thousands) | Jul 31, 2020 (in thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Certificates of deposit | $7,567 | $13,902 | | U.S. Treasury bills and notes | $4,171 | $2,498 (bills only) | | Corporate bonds | $6,231 | $— | | Municipal bonds | $5,921 | $1,963 | | Total | $23,890 | $18,363 | - Proceeds from maturities and sales of debt securities and redemptions of equity investments were **$6.6 million** in the three months ended October 31, 2020, up from **$0.8 million** in the prior year period[50](index=50&type=chunk) [Note 7—Equity Investments](index=15&type=section&id=Note%207%E2%80%94Equity%20Investments) Current equity investments significantly increased to **$21.0 million** at October 31, 2020, from **$6.0 million** at July 31, 2020, primarily driven by an increase in mutual funds and the receipt of Visa Series A Preferred shares | Type | Oct 31, 2020 (in thousands) | Jul 31, 2020 (in thousands) | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Zedge, Inc. Class B common stock | $144 | $59 | | Rafael Holdings, Inc. Class B common stock | $465 | $389 | | Mutual funds | $20,427 | $5,516 | | Current equity investments | $21,036 | $5,964 | | Visa Inc. Series C Convertible Participating Preferred Stock | $1,825 | $3,825 | | Visa Inc. Series A Convertible Participating Preferred Stock | $2,271 | $— | | Hedge funds | $3,427 | $4,783 | | Other (noncurrent) | $2,225 | $225 | | Noncurrent equity investments | $9,748 | $8,833 | - In connection with Visa's first mandatory release assessment, the company received **125 shares** of Visa Series A Preferred and the conversion adjustment for Visa Series C Preferred was reduced[54](index=54&type=chunk) - Net unrealized losses of **$920,000** were recognized on equity investments in the three months ended October 31, 2020, compared to net gains of **$26,000** in the prior year period[57](index=57&type=chunk) [Note 8—Fair Value Measurements](index=17&type=section&id=Note%208%E2%80%94Fair%20Value%20Measurements) Total assets measured at fair value increased to **$49.0 million** at October 31, 2020, from **$28.2 million** at July 31, 2020, primarily due to an increase in Level 1 equity investments | Metric | Oct 31, 2020 (in thousands) | Jul 31, 2020 (in thousands) | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Debt securities | $23,890 | $18,363 | | Equity investments (current) | $21,036 | $5,964 | | Equity investments (noncurrent) | $4,096 | $3,825 | | Total | $49,022 | $28,152 | - Investments in hedge funds (**$3.4 million** at October 31, 2020) are accounted for using the equity method and are not measured at fair value[59](index=59&type=chunk) [Note 9—Other Operating Expense, Net](index=18&type=section&id=Note%209%E2%80%94Other%20Operating%20Expense,%20Net) Other operating expense, net, significantly improved to a net gain of **$252,000** in the three months ended October 31, 2020, from a net expense of **$2.8 million** in the prior year, mainly due to a Carrier Services settlement and lower net legal fees | Item | 2020 (in thousands) | 2019 (in thousands) | | :---------------------------------------------------- | :------------------ | :------------------ | | Corporate—Straight Path Communications Inc. class action insurance claims net of legal fees/(legal fees net of insurance claims) | $302 | $(260) | | Traditional Communications—Carrier Services settlement | $(554) | $— | | Traditional Communications—net2phone indemnification claim | $— | $(365) | | Traditional Communications—accrual for non-income related taxes related to a foreign subsidiary | $— | $(2,150) | | Total other operating expense, net | $(252) | $(2,775) | - In the three months ended October 31, 2020, the company incurred **$0.3 million** in legal fees related to the Straight Path class action, offset by **$0.6 million** in insurance claims[67](index=67&type=chunk) [Note 10—Equity](index=20&type=section&id=Note%2010%E2%80%94Equity) The company repurchased **463,792 shares** of Class B common stock for **$2.8 million** in the three months ended October 31, 2020, with **5.8 million** shares remaining available under its stock repurchase program - The company repurchased **463,792 shares** of Class B common stock for an aggregate purchase price of **$2.8 million** in the three months ended October 31, 2020[70](index=70&type=chunk) - At October 31, 2020, **5.8 million shares** remained available for repurchase under the stock repurchase program[70](index=70&type=chunk) - The company received proceeds from the exercise of stock options of **$0.2 million**, issuing **21,894 shares** of its Class B common stock in the three months ended October 31, 2020[72](index=72&type=chunk) [Note 11—Earnings (Loss) Per Share](index=20&type=section&id=Note%2011%E2%80%94Earnings%20(Loss)%20Per%20Share) Basic and diluted earnings per share were **$0.32** for the three months ended October 31, 2020, a significant improvement from a loss of **$0.06** in the prior year period | Metric | 2020 (in thousands) | 2019 (in thousands) | | :------------------------------------------ | :------------------ | :------------------ | | Basic weighted-average number of shares | 25,534 | 26,279 | | Diluted weighted-average number of shares | 25,861 | 26,279 | - Stock options with an exercise price greater than the average market price of the company's stock (**1.104 million shares**) were excluded from the diluted EPS computation in the three months ended October 31, 2020[74](index=74&type=chunk) [Note 12—Accumulated Other Comprehensive Loss](index=21&type=section&id=Note%2012%E2%80%94Accumulated%20Other%20Comprehensive%20Loss) The accumulated other comprehensive loss decreased to **$7.188 million** at October 31, 2020, from **$7.410 million** at July 31, 2020, primarily due to positive foreign currency translation adjustments | Metric | Balance, Oct 31, 2020 (in thousands) | Balance, Jul 31, 2020 (in thousands) | | :---------------------------------------------------- | :----------------------------------- | :----------------------------------- | | Unrealized Gain (Loss) on Available-for-Sale Securities | $13 | $42 | | Foreign Currency Translation Adjustments | $(7,201) | $(7,452) | | Accumulated Other Comprehensive Loss | $(7,188) | $(7,410) | [Note 13—Commitments and Contingencies](index=21&type=section&id=Note%2013%E2%80%94Commitments%20and%20Contingencies) This section details various commitments and contingencies, including COVID-19 impacts, legal proceedings, sales tax liabilities, regulatory audits, and purchase commitments [Coronavirus Disease (COVID-19)](index=21&type=section&id=Coronavirus%20Disease%20(COVID-19)) COVID-19 had mixed financial impacts, driving increased demand for consumer digital offerings while accelerating the decline in Carrier Services, though the company expects sufficient liquidity for the next 12 months - COVID-19 drove significant increases in demand for BOSS Revolution Money Transfer, BOSS Revolution Calling, and Mobile Top-Up through digital channels[77](index=77&type=chunk) - Carrier Services revenue declined more rapidly following the onset of COVID-19 as business communications shifted from calling to video conferencing[77](index=77&type=chunk) - Management expects cash from operations and current liquidity to be sufficient to meet anticipated working capital and capital expenditure requirements for the twelve-month period ending October 31, 2021[78](index=78&type=chunk) [Legal Proceedings](index=23&type=section&id=Legal%20Proceedings) The company is involved in several legal proceedings, including class actions related to the TCPA and employment law, and a derivative complaint concerning the Straight Path spin-off - A putative class action against IDT Telecom alleging Telephone Consumer Protection Act violations was resolved for a **de minimus amount** in November 2020[80](index=80&type=chunk) - The company is evaluating claims and intends to vigorously defend against a putative class action alleging employment law violations in California[81](index=81&type=chunk) - A pending putative class action and derivative complaint against the company relates to the Straight Path spin-off and alleged breaches of fiduciary duties[84](index=84&type=chunk) [Sales Tax Contingency](index=23&type=section&id=Sales%20Tax%20Contingency) The company is reviewing its state sales tax filings and remittance practices following the Wayfair decision, with potential for jurisdictions to assert liability for uncollected sales taxes - The company is evaluating its state tax filings with respect to the Wayfair decision and is reviewing its remittance practices, with potential for liability for uncollected sales taxes[86](index=86&type=chunk) [Regulatory Fees Audit](index=25&type=section&id=Regulatory%20Fees%20Audit) The company's 2017 FCC Form 499-A is under audit by USAC, with preliminary findings appealed, and accrued expenses include **$40.3 million** for FCC-related regulatory fees - The company's 2017 FCC Form 499-A is currently under audit by the Universal Service Administrative Company (USAC), with preliminary audit findings appealed[87](index=87&type=chunk) - Accrued expenses included **$40.3 million** at October 31, 2020, for FCC-related regulatory fees for the year covered by the audit, as well as prior and subsequent years[87](index=87&type=chunk) [Purchase Commitments](index=25&type=section&id=Purchase%20Commitments) At October 31, 2020, the company had **$2.5 million** in purchase commitments, primarily for certain equipment and services - At October 31, 2020, the company had purchase commitments of **$2.5 million** primarily for certain equipment and services[88](index=88&type=chunk) [Performance Bonds](index=25&type=section&id=Performance%20Bonds) The company has aggregate performance bonds of **$18.0 million** outstanding through third parties to comply with state financial requirements - The company had aggregate performance bonds of **$18.0 million** outstanding at October 31, 2020[89](index=89&type=chunk) [Company Restricted Cash and Cash Equivalents](index=25&type=section&id=Company%20Restricted%20Cash%20and%20Cash%20Equivalents) Unrestricted cash and cash equivalents held by IDT Payment Services, totaling **$9.0 million** at October 31, 2020, are treated as substantially restricted and unavailable for other purposes - Unrestricted cash and cash equivalents held by IDT Payment Services, totaling **$9.0 million** at October 31, 2020, are treated as substantially restricted and unavailable for other purposes[90](index=90&type=chunk) [FCC Investigation of Straight Path Spectrum LLC](index=25&type=section&id=FCC%20Investigation%20of%20Straight%20Path%20Spectrum%20LLC) The company is cooperating with an FCC investigation into potential violations by its former subsidiary, Straight Path Spectrum LLC, with potential for fines or penalties against the company - The company is cooperating with an FCC investigation into potential violations by Straight Path Spectrum LLC, a former subsidiary, with potential for fines or penalties against the company[91](index=91&type=chunk) [Note 14—Other (Expense) Income, Net](index=25&type=section&id=Note%2014%E2%80%94Other%20(Expense)%20Income,%20Net) Other (expense) income, net, shifted to a net expense of **$1.380 million** in the three months ended October 31, 2020, from a net income of **$234,000** in the prior year, primarily due to foreign currency transaction losses and losses on investments | Item | 2020 (in thousands) | 2019 (in thousands) | | :------------------------------------ | :------------------ | :------------------ | | Foreign currency transaction (losses) gains | $(428) | $671 | | Write-off of tax assets related to prior periods | $— | $(474) | | (Losses) gains on investments | $(920) | $26 | | Other | $(32) | $11 | | Total other (expense) income, net | $(1,380) | $234 | [Note 15—Recently Issued Accounting Standards Not Yet Adopted](index=26&type=section&id=Note%2015%E2%80%94Recently%20Issued%20Accounting%20Standards%20Not%20Yet%20Adopted) The company is evaluating the impact of new FASB ASUs on credit losses, income taxes, and equity investments, to be adopted in future fiscal years - The company will adopt ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), on **August 1, 2023**[93](index=93&type=chunk) - The company will adopt ASU No. 2019-12, Income Taxes (Topic 740), on **August 1, 2021**[94](index=94&type=chunk) - The company will adopt ASU No. 2020-01, Investments—Equity Securities (Topic 321), on **August 1, 2021**[95](index=95&type=chunk) [Note 16—Subsequent Event—Purchase of Shares and Warrants from Rafael Holdings, Inc.](index=26&type=section&id=Note%2016%E2%80%94Subsequent%20Event%E2%80%94Purchase%20of%20Shares%20and%20Warrants%20from%20Rafael%20Holdings,%20Inc.) On December 7, 2020, the company purchased **218,245** newly issued shares of Rafael Holdings' Class B common stock and warrants for an additional **43,649 shares** for **$5.0 million** - On **December 7, 2020**, the company purchased **218,245** newly issued shares and warrants to purchase up to **43,649 shares** of Rafael Holdings' Class B common stock for an aggregate consideration of **$5.0 million**[96](index=96&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the three months ended October 31, 2020, highlighting segment performance and liquidity [Forward-Looking Statements](index=27&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information, emphasizing that actual results may differ materially from projections due to various risks and uncertainties - This Quarterly Report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projected results[99](index=99&type=chunk) [Critical Accounting Policies](index=27&type=section&id=Critical%20Accounting%20Policies) The company's critical accounting policies involve significant management judgments and estimates, particularly concerning allowances, goodwill, asset valuation, and tax and regulatory fees - Critical accounting policies include those related to the allowance for doubtful accounts, goodwill, valuation of long-lived assets, income taxes, sales taxes, regulatory agency fees, and direct cost of revenues—disputed amounts[100](index=100&type=chunk) [Recently Issued Accounting Standards Not Yet Adopted](index=27&type=section&id=Recently%20Issued%20Accounting%20Standards%20Not%20Yet%20Adopted) The company is evaluating the impact of new FASB ASUs on credit losses (ASU 2016-13), income taxes (ASU 2019-12), and equity investments (ASU 2020-01) - The company is evaluating the impact of ASU No. 2016-13 (Credit Losses), ASU No. 2019-12 (Income Taxes), and ASU No. 2020-01 (Equity Investments)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) The company's results of operations for the three months ended October 31, 2020, show a significant improvement in income from operations, driven by strong growth in Fintech and net2phone-UCaaS [Coronavirus Disease (COVID-19)](index=28&type=section&id=Coronavirus%20Disease%20(COVID-19)) COVID-19 had mixed financial impacts, boosting demand for consumer digital offerings while accelerating the decline in Carrier Services, with NRS showing resilience and sufficient liquidity expected for 12 months - COVID-19 drove significant increases in demand for BOSS Revolution Money Transfer, BOSS Revolution Calling, and Mobile Top-Up through digital channels[106](index=106&type=chunk) - Carrier Services' revenue declined more rapidly following the onset of COVID-19 as business communications shifted from calling to video conferencing[106](index=106&type=chunk) - National Retail Solutions (NRS) expanded sales of terminals, payment processing, and advertising services due to the resilience of local retailers during COVID-19[106](index=106&type=chunk) [Three Months Ended October 31, 2020 Compared to Three Months Ended October 31, 2019](index=28&type=section&id=Three%20Months%20Ended%20October%2031,%202020%20Compared%20to%20Three%20Months%20Ended%20October%2031,%202019) The company's reportable segments were revised to Fintech, net2phone-UCaaS, and Traditional Communications, showing overall significant improvement in income from operations driven by growth and efficiency - Reportable business segments were revised to Fintech, net2phone-UCaaS, and Traditional Communications, effective **August 1, 2020**[108](index=108&type=chunk) - The company evaluates the performance of its business segments based primarily on income (loss) from operations[108](index=108&type=chunk) [Fintech Segment](index=30&type=section&id=Fintech%20Segment) Fintech revenues more than doubled year-over-year to **$20.1 million**, driven by increased transaction volume in BOSS Revolution Money Transfer's digital channel and NRS expansion, achieving a significant turnaround to operating income | Metric | 2020 (in millions) | 2019 (in millions) | | :-------------------------------- | :----------------- | :----------------- | | Revenues | $20.1 | $9.6 | | Direct cost of revenues | $6.2 | $3.9 | | Selling, general and administrative | $10.4 | $8.1 | | Income (loss) from operations | $3.1 | $(2.7) | - Revenues from BOSS Revolution Money Transfer increased **110.5%** primarily due to increased transaction volume in its digital channel and a benefit from foreign exchange market conditions[112](index=112&type=chunk) - Revenues from National Retail Solutions (NRS) increased **109.3%** driven by the expansion of its POS network and revenue growth from payment processing and digital advertising[113](index=113&type=chunk) - Direct cost of revenues as a percentage of revenues in Fintech decreased **920 basis points** to **30.9%** due to a decrease in BOSS Revolution Money Transfer's direct cost of revenues as a percentage of revenues, largely from increased foreign exchange revenue[115](index=115&type=chunk) [net2phone-UCaaS Segment](index=32&type=section&id=net2phone-UCaaS%20Segment) net2phone-UCaaS revenues increased **33.6%** to **$9.6 million**, primarily driven by growth in the United States and a **58%** increase in seats served to **176,000**, while the segment's operating loss remained relatively stable | Metric | 2020 (in millions) | 2019 (in millions) | | :-------------------------------- | :----------------- | :----------------- | | Revenues | $9.6 | $7.2 | | Direct cost of revenues | $2.0 | $1.5 | | Selling, general and administrative | $10.3 | $8.5 | | Loss from operations | $(3.8) | $(3.7) | - Seats served increased **58%** to **176,000** at October 31, 2020, from **112,000** at October 31, 2019[120](index=120&type=chunk) - Subscription revenue increased **31.7%** to **$9.0 million**, led by growth in the U.S. market[120](index=120&type=chunk) [Traditional Communications Segment](index=32&type=section&id=Traditional%20Communications%20Segment) Traditional Communications revenues decreased **3.0%** to **$313.7 million**, primarily due to a significant decline in Carrier Services, partially offset by strong growth in Mobile Top-Up, while income from operations more than doubled | Metric | 2020 (in millions) | 2019 (in millions) | | :-------------------------------- | :----------------- | :----------------- | | Revenues | $313.7 | $323.4 | | Direct cost of revenues | $265.0 | $274.1 | | Selling, general and administrative | $29.2 | $34.6 | | Income from operations | $15.8 | $7.5 | - Mobile Top-Up revenues increased **24.7%** to **$95.8 million** due to the addition of new mobile partners and increasing demand for data-centric top-up bundles[128](index=128&type=chunk) - Carrier Services revenues decreased **22.7%** to **$87.8 million**, with minutes of use down **32.4%**, as communications globally continued to transition away from international voice calling, accelerated by COVID-19[128](index=128&type=chunk)[130](index=130&type=chunk) - Direct cost of revenues as a percentage of revenues in Traditional Communications decreased **30 basis points** to **84.5%**, primarily due to the continued migration of BOSS Revolution Calling customers to digital platforms[132](index=132&type=chunk) [Corporate](index=35&type=section&id=Corporate) Corporate loss from operations improved to **$1.9 million** from **$2.5 million**, primarily due to a decrease in stock-based compensation and a net gain from Straight Path class action insurance claims offsetting legal fees | Metric | 2020 (in millions) | 2019 (in millions) | | :-------------------------------- | :----------------- | :----------------- | | General and administrative expenses | $(2.2) | $(2.2) | | Other operating gain (expense), net | $0.3 | $(0.3) | | Loss from operations | $(1.9) | $(2.5) | - Corporate general and administrative expense was substantially unchanged, primarily because a decrease in stock-based compensation was mostly offset by an increase in employee compensation[138](index=138&type=chunk) - Other operating gain (expense), net, improved due to **$0.6 million** in insurance claims offsetting **$0.3 million** in legal fees for the Straight Path class action[140](index=140&type=chunk) [Consolidated](index=37&type=section&id=Consolidated) Consolidated income from operations significantly improved to **$13.3 million** from a loss of **$1.4 million**, resulting in net income attributable to IDT Corporation of **$8.3 million**, a substantial turnaround from a **$1.5 million** loss in the prior year | Metric | 2020 (in millions) | 2019 (in millions) | | :---------------------------------------- | :----------------- | :----------------- | | Income (loss) from operations | $13.3 | $(1.4) | | Interest (expense) income, net | $(0.1) | $0.3 | | Other (expense) income, net | $(1.4) | $0.2 | | Provision for income taxes | $(3.4) | $(0.5) | | Net income (loss) attributable to IDT Corporation | $8.3 | $(1.5) | - Stock-based compensation expense included in consolidated selling, general and administrative expenses decreased to **$0.5 million** in the three months ended October 31, 2020, from **$1.4 million** in the prior year period[143](index=143&type=chunk) - The increase in income tax expense was primarily due to differences in the amount of taxable income earned in the various taxing jurisdictions[144](index=144&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company expects sufficient liquidity for the next 12 months, with **$119.0 million** in cash, cash equivalents, debt securities, and current equity investments, and improved operating cash flow despite increased investing activities - As of October 31, 2020, the company had **$119.0 million** in cash, cash equivalents, debt securities, and current equity investments, and working capital of **$5.4 million**[147](index=147&type=chunk) - Unrestricted cash and cash equivalents held by IDT Payment Services, totaling **$9.0 million** at October 31, 2020, are treated as substantially restricted and unavailable for other purposes[148](index=148&type=chunk) | Metric | 2020 (in millions) | 2019 (in millions) | | :-------------------------------------------------------------------- | :----------------- | :----------------- | | Operating activities | $18.8 | $(5.0) | | Investing activities | $(27.3) | $(11.2) | | Financing activities | $(2.7) | $0.0 | | Decrease in cash, cash equivalents, and restricted cash and cash equivalents | $(13.1) | $(4.8) | [Operating Activities](index=38&type=section&id=Operating%20Activities) Net cash provided by operating activities was **$18.8 million** in the three months ended October 31, 2020, a significant improvement from a net use of **$5.0 million** in the prior year, influenced by changes in trade accounts receivable, deferred revenue, and customer deposits - Gross trade accounts receivable increased to **$53.5 million** at October 31, 2020, from **$50.3 million** at July 31, 2020[150](index=150&type=chunk) - Customer deposit liabilities at IDT Financial Services Limited decreased to **$113.7 million** at October 31, 2020, from **$116.0 million** at July 31, 2020, mainly due to the decline of the bank's travel-related programs[152](index=152&type=chunk) [Investing Activities](index=38&type=section&id=Investing%20Activities) Net cash used in investing activities increased to **$27.3 million** in the three months ended October 31, 2020, from **$11.3 million** in the prior year, primarily due to higher purchases of debt securities and equity investments - Capital expenditures were **$4.6 million** in the three months ended October 31, 2020, and are anticipated to be **$18 million to $20 million** for the twelve-month period ending October 31, 2021[154](index=154&type=chunk) - Purchases of debt securities and equity investments increased to **$29.3 million** in the three months ended October 31, 2020, from **$8.2 million** in the prior year period[155](index=155&type=chunk) [Financing Activities](index=40&type=section&id=Financing%20Activities) Net cash used in financing activities was **$2.7 million** in the three months ended October 31, 2020, primarily due to repurchases of Class B common stock totaling **$2.8 million**, with **5.8 million** shares remaining available under the program - The company repurchased **463,792 shares** of Class B common stock for an aggregate purchase price of **$2.8 million** in the three months ended October 31, 2020[159](index=159&type=chunk) - At October 31, 2020, **5.8 million shares** remained available for repurchase under the stock repurchase program[159](index=159&type=chunk) [Other Sources and Uses of Resources](index=40&type=section&id=Other%20Sources%20and%20Uses%20of%20Resources) The company's **$25.0 million** line of credit facility expired in July 2020, and it plans to seek a similar agreement in fiscal 2021, while also pursuing strategic investments and acquisitions - The company's **$25.0 million** line of credit facility expired on **July 15, 2020**, and it will seek to enter into a similar credit agreement in fiscal 2021[161](index=161&type=chunk) - On **December 7, 2020**, the company purchased **218,245** newly issued shares and warrants for **43,649 shares** of Rafael Holdings' Class B common stock for **$5.0 million**[162](index=162&type=chunk) - The company intends to make strategic investments and acquisitions to complement, expand, and/or enter into new businesses[163](index=163&type=chunk) [Contractual Obligations and Other Commercial Commitments](index=40&type=section&id=Contractual%20Obligations%20and%20Other%20Commercial%20Commitments) Total contractual obligations at October 31, 2020, were **$14.7 million**, primarily consisting of purchase commitments, connectivity obligations, and operating leases, excluding performance bonds and potential contingent consideration | Payments Due by Period (in millions) | Total | Less than 1 year | 1–3 years | 4–5 years | After 5 years | | :----------------------------------- | :---- | :--------------- | :-------- | :-------- | :------------ | | Purchase commitments | $2.5 | $2.5 | $— | $— | $— | | Connectivity obligations | $1.3 | $0.8 | $0.5 | $— | $— | | Operating leases | $10.9 | $3.4 | $4.7 | $2.8 | $— | | Total contractual obligations | $14.7 | $6.7 | $5.2 | $2.8 | $— | - The table does not include an aggregate of **$18.0 million** in performance bonds or **$0.8 million** in potential contingent consideration related to the Ringsouth acquisition due to the uncertainty of the amount and/or timing of any such payments[164](index=164&type=chunk) [Off-Balance Sheet Arrangements](index=41&type=section&id=Off-Balance%20Sheet%20Arrangements) The company does not have significant off-balance sheet arrangements, other than indemnification agreements with Straight Path related to its 2013 spin-off and **$18.0 million** in aggregate performance bonds outstanding - The company has indemnification agreements with Straight Path related to its 2013 spin-off, covering liabilities for federal, state, local, and foreign taxes and other obligations[166](index=166&type=chunk) - The company had aggregate performance bonds of **$18.0 million** outstanding at October 31, 2020[167](index=167&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a smaller reporting company, IDT Corporation is not required to provide specific quantitative and qualitative disclosures about market risks in this report - As a smaller reporting company, IDT Corporation is not required to provide the information required by this item[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of October 31, 2020, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of **October 31, 2020**[169](index=169&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended October 31, 2020, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[170](index=170&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the Consolidated Financial Statements for a detailed description of the legal proceedings in which the company is involved - Legal proceedings in which the company is involved are described in Note 13 to the Consolidated Financial Statements included in Item 1 to Part I of this Quarterly Report on Form 10-Q[172](index=172&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) There are no material changes from previously disclosed risk factors, except for new risks related to Brexit, including uncertainties regarding trade deals, potential adverse impacts on UK and European business operations, and the cessation of passporting rights for IDT Financial Services Limited (IDTFS) - New risk factors include those related to the United Kingdom leaving the European Union ("Brexit"), which could have a material adverse impact on the company's United Kingdom and European business operations[173](index=173&type=chunk) - IDT Financial Services Limited (IDTFS), the company's Gibraltar-based bank, will cease to have passporting rights under EU law following the Brexit transition period, potentially limiting its ability to provide services to customers in EU countries[177](index=177&type=chunk) - The company is currently seeking an e-money license issued by an EU country and implementing contingency measures to allow the continuation of IDTFS's services in the European Economic Area[177](index=177&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of fiscal 2021, the company repurchased **464,845 shares** of its Class B common stock for an average price of **$6.11** per share, with **5.8 million** shares remaining available under the stock repurchase program | Period | Total Number of Shares Purchased | Average Price per Share | Number of Shares Purchased as part of Publicly Announced Programs | Maximum Number of Shares that May Yet Be Purchased Under the Programs | | :------------------- | :------------------------------- | :---------------------- | :---------------------------------------------------------------- | :-------------------------------------------------------------------- | | August 1-31, 2020 | 19,864 | $6.51 | 18,811 | 6,213,478 | | September 1–30, 2020 | 444,981 | $6.10 | 444,981 | 5,768,497 | | October 1–31, 2020 | — | $— | — | 5,768,497 | | Total | 464,845 | $6.11 | 463,792 | | - At October 31, 2020, **5.8 million shares** remained available for repurchase under the stock repurchase program[178](index=178&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - There were no defaults upon senior securities[180](index=180&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[180](index=180&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No other information is reported under this item - No other information is reported under this item[180](index=180&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, and XBRL taxonomy documents - Exhibits include certifications of the Chief Executive Officer and Chief Financial Officer (31.1, 31.2, 32.1, 32.2) and XBRL Taxonomy Extension documents[180](index=180&type=chunk) SIGNATURES [SIGNATURES](index=45&type=section&id=SIGNATURES) The report is signed by Shmuel Jonas, Chief Executive Officer, and Marcelo Fischer, Chief Financial Officer, on December 10, 2020, certifying its submission pursuant to the Securities Exchange Act of 1934 - The report was signed by Shmuel Jonas, Chief Executive Officer, and Marcelo Fischer, Chief Financial Officer, on **December 10, 2020**[183](index=183&type=chunk)

IDT Corporation (NYSE:IDT) Q1 2021 Earnings Conference Call December 3, 2020 5:30 PM ET Company Participants Shmuel Jonas – Chief Executive Officer Marcelo Fischer – Chief Financial Officer Conference Call Participants Operator Good evening, and welcome to the IDT Corporation's First Quarter Fiscal Year 2021 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three-month period ended October 31, 2020. During remarks by IDT’s Chief Executive O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to section 13 or 15(d) of the securities exchange act of 1934 for the fiscal year ended July 31, 2020. or ☐ Transition report pursuant to section 13 or 15(d) of the securities exchange act of 1934. Commission File Number: 1-16371 IDT Corporation (Exact name of registrant as specified in its charter) | Delaware | 22-3415036 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorpo ...

IDT Corporation (NYSE:IDT) Q4 2020 Earnings Conference Call October 1, 2020 5:30 PM ET Company Participants Shmuel Jonas - Chief Executive Officer Marcelo Fischer - Chief Financial Officer Operator Good afternoon, and welcome to the IDT Corporation Fourth Quarter and Full Fiscal Year 2020 earnings call. In today's presentation, IDT’s management will discuss IDT’s financial and operational results for the three and 12 month period ended July 31, 2020. During remarks by IDT’s Chief Executive Officer, Shmuel J ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-16371 IDT CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 22-3415036 (State or other jurisdiction of incorporation or organization) (I.R.S. Employ ...

IDT Corporation (NYSE:IDT) Q3 2020 Earnings Conference Call June 4, 2020 5:30 PM ET Company Representatives Samuel Jonas - Chief Executive Officer Marcelo Fischer - Chief Financial Officer Conference Call Participants Operator Good morning or good afternoon, and welcome to the IDT Corporation's Third Quarter Fiscal Year 2020 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three month period ending April 30, 2020. During prepared remarks ...