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<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Note 1—Basis of Presentation</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The accompanying unaudited combined and consolidated financial statements of Straight Path Communications Inc. and its subsidiaries (“Straight Path”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended October 31, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2014. The balance sheet at July 31, 2013 has been derived from Straight Path’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the combined and consolidated financial statements and footnotes thereto included in Straight Path’s Annual Report on Form 10-K for the fiscal year ended July 31, 2013, as filed with the U.S. Securities and Exchange Commission (the “SEC”).</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Straight Path was incorporated in April 2013. Straight Path’s businesses consist of 100% ownership of Straight Path Spectrum, Inc. (“Straight Path Spectrum”), which holds, leases and markets fixed wireless spectrum licenses, and 84.5% ownership of Straight Path IP Group, Inc. (“Straight Path IP”), which holds intellectual property primarily related to communications over the Internet and the licensing and other businesses related to this intellectual property. The “Company” in these financial statements refers to Straight Path, Straight Path Spectrum, and Straight Path IP on a combined and consolidated basis as if Straight Path existed and owned the above interests in these entities in all periods presented.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company was formerly a subsidiary of IDT Corporation (“IDT”). On July 31, 2013, the Company was spun-off by IDT to its stockholders and became an independent public company (the “Spin-Off”). The Company authorized the issuance of two classes of its common stock, Class A and Class B. The Spin-Off of the Company occurred by way of a pro rata distribution of the Company’s Class A common stock and Class B common stock held by IDT to IDT’s stockholders. On the distribution date, each IDT stockholder received one share of the Company’s Class A common stock for every two shares of IDT Class A common stock and one share of the Company’s Class B common stock for every two shares of IDT Class B common stock held on the record date for the Spin-Off. On July 31, 2013, the Company distributed 0.8 million shares of its Class A common stock (based on 1.6 million shares of IDT Class A common stock that were outstanding on the record date) and 10.7 million shares of its Class B common stock (based on 21.4 million shares of IDT Class B common stock that were outstanding on the record date).</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
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font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company’s fiscal year ends on July 31 of each calendar year. Each reference below to a fiscal year refers to the fiscal year ending in the calendar year indicated (e.g., fiscal 2014 refers to the fiscal year ending July 31, 2014).</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Note 2—Fair Value Measurements</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">At October 31, 2013, the Company did not have any assets or liabilities measured at fair value on a recurring basis.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline; font-size: 10pt;">At October 31, 2013 and July 31, 2013, the carrying amounts of the financial instruments included in cash and cash equivalents, other current assets, accrued expenses and due to IDT Corporation approximated fair value because of the short period of time to maturity. The fair value estimates for cash and cash equivalents were classified as Level 1 and other current assets, accrued expenses and due to IDT Corporation were classified as Level 2 of the fair value hierarchy. The estimated fair value of the Company’s financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting this data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.</font></font></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; margin-left: 0pt; margin-right: 0pt;"><div ><div align="left" style="width: 1583px;"><font style="display: inline; font-family: 'times new roman'; font-size: 8pt;"> </font></div></div></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Note 3—Equity</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Changes in the components of equity were as follows:</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;">
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<td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="10">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</font></div>
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">October 31, 2013</font></div>
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</tr>
<tr>
<td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Attributable</font></div>
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">to Straight Path</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Noncontrolling</font></div>
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Interests</font></div>
</td>
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<td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Total</font></div>
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<td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td valign="bottom" colspan="10">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="64%" valign="bottom"
style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Balance, July 31, 2013</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.7pt;"></font>14,229</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.7pt;"></font>(374</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.7pt;"></font>13,855</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Stock-based compensation</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 41.85pt;"></font>156</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 48.5pt;"></font>—</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 41.85pt;"></font>156</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="64%" valign="bottom" style="text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Net loss</font></div>
</td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 32.95pt;"></font>(391</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 39.6pt;"></font>(26</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;
padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 32.95pt;"></font>(417</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
</tr>
<tr bgcolor="white">
<td width="64%" valign="bottom" style="text-align: left; padding-bottom: 4px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Balance, October 31, 2013</font></div>
</td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.7pt;"></font>13,994</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.7pt;"></font>(400</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.7pt;"></font>13,594</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
</table>
</div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">In the Spin-Off, each holder of an option to purchase IDT Class B common stock received a ratable share in a pool of options to purchase 32,155 shares of the Company’s Class B common stock (which was based on 10% of the outstanding options to purchase 641,567 shares of IDT Class B common stock issued by IDT and the 1 for 2 distribution ratio of the Spin-Off). The exercise price of the Company’s options is $5.67 per share which is equal to the closing price of the Company’s Class B common stock on the first trading day following the consummation of the Spin-Off. The expiration date of the Company’s options is equal to the later of (i) the expiration of the IDT option held by such option holder and (ii) a date on or about the first anniversary of the Spin-Off when the Company’s insiders will be free to trade in shares of the Company under the Company’s insider trading policy. <font style="display: inline;">The options to purchase shares of the Company were issued </font>under the Company’s 2013 Stock Option and Incentive Plan. <font style="display: inline;">The issuance of the 32,155 options to purchase the Company’s shares was accounted for as a modification. No incremental charge was required as a result of the modification.</font></font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal;
orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On August 2, 2013, the Company granted its non-employee directors an aggregate of 3,750 shares of the Company’s Class B common stock with an aggregate fair value on the date of grant of $21,263. These shares vested immediately upon grant. In addition, on August 2, 2013, the Company granted Davidi Jonas, the Company’s Chief Executive Officer and President, 229,608 restricted shares of Class B common stock, and Jonathan Rand, the Company’s Chief Financial Officer and Treasurer, 38,268 restricted shares of Class B common stock. Both grants of restricted shares vest as to one-third of the granted shares on each of August 2, 2014, 2015 and 2016, unless otherwise determined by the Compensation Committee of the Company’s Board of Directors. The aggregate grant date fair value of these grants was $1.5 million, which will be charged to expense on a straight line basis over the vesting period.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On August 6, 2013, the Company granted various consultants an aggregate of 10,100 restricted shares of its Class B common stock. These restricted shares will vest as to one-third of the granted shares in each of August 2014, 2015 and 2016, unless otherwise determined by the Compensation Committee of the Company’s Board of Directors. The aggregate grant date fair value of the grant was $0.1 million, which is being charged to expense on a straight line basis over the vesting period.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Note 4—Loss Per Share</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Basic earnings per share is computed by dividing net income (loss) attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The following shares were excluded from the diluted loss per share computations because their inclusion would have been anti-dilutive:</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff;"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="6"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">October 31,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2012</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td
valign="bottom"><font style="display:
inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" colspan="6"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="76%" valign="bottom"><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Stock options<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">32</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Non-vested restricted Class B common stock<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,279</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,058</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="76%" valign="bottom" style="padding-bottom: 4px;"><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Shares excluded from the calculation of diluted loss per share<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,311</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,058</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal;
letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color:
#ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the three months ended October 31, 2013 and 2012, the diluted loss per share equals basic loss per share because the Company had a net loss and the impact of the assumed exercise of stock options and assumed vesting of restricted stock would have been anti-dilutive.</font></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; margin-left: 0pt; margin-right: 0pt;"><div ><div align="left" style="width: 1583px;"><font style="display: inline; font-family: 'times new roman'; font-size: 8pt;"> </font></div></div></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"><br class="apple-interchange-newline" />Note 5—Related Party Transactions</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">In connection with the Spin-Off, the Company and IDT entered into a Separation and Distribution Agreement and a Tax Separation Agreement to complete the separation of the Company’s businesses from IDT and to distribute the Company’s common stock to IDT’s stockholders. These agreements govern the relationship between the Company and IDT after the distribution and also provide for the allocation of employee benefits, taxes and other liabilities and obligations attributable to periods prior to the distribution. These agreements reflect terms between affiliated parties established without arms-length negotiation. The Company believes that the terms of these agreements equitably reflect the benefits and costs of the Company’s ongoing relationships with IDT.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Pursuant to the Separation and Distribution Agreement, the Company has indemnified IDT and IDT has indemnified the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. The Separation and Distribution Agreement includes, among other things, that IDT is obligated to reimburse the Company for the payment of any liabilities of the Company arising or related to the period prior to the Spin-Off. In the three months ended October 31, 2013, IDT paid $0.1 million pursuant to this obligation, which was recorded as “Income from IDT Corporation payments of liabilities” in the combined and consolidated statement of operations.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company also entered into a Transition Services Agreement, pursuant to which IDT will continue to provide certain services, including, but not limited to information and technology, human resources, payroll, tax, accounts payable, purchasing, treasury, financial systems, investor relations, legal, corporate accounting, internal audit, and facilities for an agreed period following the Spin-Off.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Prior to the Spin-Off, IDT charged the Company for certain transactions and allocated routine expenses based on company specific items. Specifically, IDT allocated payroll, benefits, insurance, facilities and other expenses to the Company, which were included in “Selling, general and administrative” expense in the combined and consolidated statements of operations. In addition, both prior to and subsequent to the Spin-Off, IDT charged the Company for regulatory fees, connectivity charges and legal expenses, which was included in “Direct cost of
revenues” in
the combined and consolidated statements of operations.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Following are the amounts that IDT charged the Company pursuant to the Transition Services Agreement or through intercompany charges for periods prior to the Spin-Off:</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff;"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="6"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">October 31,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2012</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" colspan="6"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="76%" valign="bottom"><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Included in direct cost of revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 10pt;"></font>28</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display:
inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left:
10pt;"></font>306</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Included in selling, general and administrative</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 35.75pt;"></font>254</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 35.75pt;"></font>181</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div> </div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Note 6—Concentration of Customers</font></div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 24pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Straight Path Spectrum’s revenues from transactions with a single customer that amounted to 10% or more of total revenues were as follows:</font></div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div>
<div align="right">
<table style="width: 100%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td width="79%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td width="20%" valign="bottom" style="border-bottom: black 2px solid;" colspan="4">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Three Months Ended</font></div>
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">October 31,</font></div>
</td>
</tr>
<tr>
<td width="79%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">2013</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom: black 2px solid;">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">2012</font></div>
</td>
</tr>
<tr>
<td width="79%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td width="20%" valign="bottom" colspan="4">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">(in thousands)</font></div>
</td>
</tr>
<tr bgcolor="#cceeff">
<td align="left" width="79%" valign="bottom">
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Covad Communications Group<font style="margin-left: 12pt;"></font></font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 10pt;"></font>41</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">na</font></div>
</td>
</tr>
<tr bgcolor="white">
<td width="79%" valign="bottom" style="text-align: left; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">
<div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">AT&T</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 42.4pt;"></font>31</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">na</font></div>
</td>
</tr>
<tr bgcolor="#cceeff">
<td width="79%" valign="bottom" style="text-align: left; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">
<div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Airband Communications</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 42.4pt;"></font>15</font></td>
<td width="1%"
nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">na</font></div>
</td>
</tr>
</table>
</div>
<div style="display: block; text-indent: 0pt;"> </div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">na-less than 10% of total revenues in the period</font></div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 24pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The loss of any of these major customers may have a material adverse effect on the Company’s results of operations and cash flows.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Note 7—Business Segment Information</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company has two reportable business segments, Straight Path Spectrum, which holds, leases and markets fixed wireless spectrum, and Straight Path IP, which holds intellectual property primarily related to communications over the Internet and the licensing and other businesses related to this intellectual property.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. There are no significant asymmetrical allocations to segments.</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Operating results for the business segments of the Company were as follows:</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff;"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Straight
Path</font></div><div
align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Spectrum</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Straight Path</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">IP</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" colspan="10"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended October 31, 2013</font></div></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">107</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">20</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">127</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Loss from operations</font></div></td><td
align="left" width="1%" valign="bottom"><font style="display: inline; font-family:
'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 32.8pt;"></font>(60</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 26.15pt;"></font>(410</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 26.15pt;"></font>(470</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended October 31, 2012</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">141</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">327</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">468</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Loss from operations</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times
new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%"
valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 32.8pt;"></font>(36</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.15pt;"></font>(1,438</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.15pt;"></font>(1,474</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total assets for the business segments of the Company were as follows:</font></div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff;"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Straight Path</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Spectrum</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Straight Path</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">IP</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"
colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight:
bold;"> </font></td><td valign="bottom" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Total assets:</font></div></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">October 31, 2013</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,166</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">9,434</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">15,600</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">July 31, 2013</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 25.05pt;"></font>3,642</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 18.35pt;"></font>12,097</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 18.35pt;"></font>15,739</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;"> </font></td></tr></table></div><div> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Note 8—Commitments and Contingencies</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: 'times new roman'; font-size: 10pt;">Legal Proceedings</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On December 11, 2012, Straight Path IP Group filed a demand for arbitration seeking a declaration that the former Chief Executive Officer of Straight Path IP (the “Former SPIP CEO)’s employment was properly terminated for cause and that the Former SPIP CEO is not entitled to severance or certain equity rights under his employment agreement. On March 15, 2013, the Former SPIP CEO filed a response and counterclaims alleging breach of contract and seeking various forms of relief. Specifically, he is seeking certain declarations related to the termination of his employment, and he is seeking certain payments and the vesting of options to purchase common stock representing 5% of the outstanding common stock of Straight Path IP Group, damages for unpaid compensation and severance, a sum in excess of $35 million in compensatory damages, and punitive damages in an unspecified amount. A portion of those rights and certain of the terms thereof are subject to a dispute between Straight Path IP Group and the Former SPIP CEO. The parties have selected an arbitrator, commenced discovery, and set a case management schedule. The Company does not believe that the Former SPIP CEO’s counterclaims have merit, and is vigorously seeking to enforce its rights, prevail on its claims, and defend against the defendant’s counterclaims. At the current time, the Company cannot reasonably estimate its likely exposure in this matter.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On April 11, 2013, Sipnet EU S.R.O., a Czech company, (“Petitioner”) filed a petition for an <font style="font-style: italic; display: inline;">inter partes</font> review at the United States Patent and Trademark Office (the “USPTO”) for certain claims of U.S. Patent 6,108,704 (“the ’704 Patent”). On October 11, 2013, the USPTO partially granted the request and instituted an <font style="font-style: italic; display: inline;">inter partes</font> review. On October 25, 2013, Straight Path IP Group filed a petition for rehearing, requesting review of the decision, which is pending.  Straight Path IP Group intends to vigorously defend the claims of the ’704 Patent. Although Straight Path IP Group believes that its patents are valid, they may be deemed invalid during the <font style="font-style: italic; display: inline;">inter partes</font> review.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On August 1, 2013, Straight Path IP Group filed complaints in the United States District Court for the Eastern District of Virginia against Bandwidth.com, Inc., Telesphere Networks Ltd., and Vocalocity, Inc. claiming infringement of two of its key patents (U.S. Patent Nos. 6,701,365 and 6,513,066). Straight Path IP Group seeks both damages and injunctive relief from the defendants.
Defendant Bandwidth.com has filed an answer and counterclaim. Defendant Telesphere has filed an answer. On October 18, 2013, Straight Path IP Group filed an Amended Complaint against Vocalocity and an answer to Bandwidth’s counterclaims. On November 20, 2013, Straight Path IP Group filed an answer to Vocalocity’s counterclaim. The court has consolidated the cases, discovery has started, and a scheduling order has been issued setting the final pre-trial conference as February 20, 2014.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;">   </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On August 1, 2013, Straight Path IP Group filed a complaint with the International Trade Commission (“ITC”) to institute an investigation against respondents AmTran Logistics, Inc., AmTran Technology Co., Ltd., LG Electronics, Inc., LG Electronics U.S.A., Inc., LG Electronics MobileComm U.S.A., Inc., Panasonic Corporation, Panasonic Corporation of North America, Sharp Corporation, Sharp Electronics Corporation, Sony Computer Entertainment, Inc., Sony Computer Entertainment America LLC, Sony Computer Entertainment America Inc., Sony Corporation, Sony Corporation of America, Sony Electronics, Inc., Sony Mobile Communications AB, Sony Mobile Communications (USA) Inc., Sony Ericsson Mobile Communications (USA) Inc., Toshiba Corporation, Toshiba America Inc., Toshiba America Information Systems, Inc., and Vizio, Inc. Straight Path IP Group alleges that the respondents infringe three of its key patents (U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121). Straight Path IP Group seeks to exclude the allegedly infringing products from importation into the United States. On September 4, 2013, the ITC instituted the investigation. The respondents filed their answers on October 21, 2013. Discovery is ongoing. The Hearing is set for May 13-20, 2013 with an Initial Determination Date of September 9, 2013 and a Target Date of January 9, 2015.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On August 1, 2013, Straight Path IP Group also filed complaints in the United States District Court for the Eastern District of Virginia against the same respondents in the ITC action, alleging infringement of the same three key patents. Straight Path IP Group seeks damages in these actions. With a co-pending ITC investigation involving the same patents, the defendants are entitled by statute to a stay of the district court proceedings, and all of the matters have been stayed. These actions, except against the LG defendants, have been consolidated. Straight Path IP Group has served the complaints.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On August 23, 2013, Straight Path IP Group filed complaints in the United States District Court for the Eastern District of Texas against Blackberry Ltd., Blackberry Corp., Huawei Investment & Holding Co., Ltd., Huawei Technologies Co., Ltd., Huawei Technologies USA, Inc., Huawei Devices USA, Inc., Samsung Electronics Co. Ltd., Samsung Electronics America, Inc., Samsung Telecommunications America, L.L.C., ZTE Corporation, and ZTE USA, Inc. alleging infringement of three of its key patents (U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121). Straight Path IP Group seeks damages in these actions. The defendants have either been served or have waived service of process. Straight Path IP Group entered into a stipulation dismissing the foreign ZTE entity, ZTE Corporation, without prejudice in exchange for discovery against the remaining ZTE entity, ZTE USA.  The Samsung defendants and ZTE USA have filed Answers. A scheduling order has not been issued.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline;
font-family: 'times new roman'; font-size: 10pt;">On November 5, 2013, Straight Path IP Group filed a complaint in the United States District Court for the Eastern District of Virginia against Vonage Holdings Corp., Vonage America, Inc., and Vonage Marketing LLC claiming infringement of four of its key patents (U.S. Patent Nos. 6,009,469, 6,131,121, 6,513,066, and 6,701,365). Straight Path IP Group seeks both damages and injunctive relief from the defendants. The complaint was served on the defendants on November 8, 2013. The court has not yet entered a scheduling order for this matter.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On December 5, 2013, Sony Corporation filed three petitions at the USPTO for <font style="font-style: italic; display: inline;">inter partes</font> review of certain claims of U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121. Straight Path IP Group will have an opportunity to respond within the next three months and is expected to argue that the petitions should be denied. A decision as to whether the USPTO will grant the petitions is not expected for approximately six months. Although Straight Path IP Group believes that its patents are valid, they may be deemed invalid during the <font style="font-style: italic; display: inline;">inter partes</font> review.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">In addition to the foregoing, the Company may from time to time be subject to other legal proceedings that arise in the ordinary course of business. Although there can be no assurance in this regard, the Company does not expect any of those legal proceedings to have a material adverse effect on the Company’s results of operations, cash flows or financial condition.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: 'times new roman'; font-size: 10pt;">Other Commitments and Contingencies</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The former Chief Executive Officer of Straight Path Spectrum (the “Former SPSI CEO”) is entitled to receive payments from future revenues generated from the leasing, licensing or sale of rights in certain of Straight Path Spectrum’s wireless spectrum licenses. Those payments are to be made out of 50% of the covered revenue and are in a maximum aggregate amount of $4 million. The payments arise under the June 2013 settlement of certain claims and disputes with the Former SPSI CEO and parties related to the Former SPSI CEO.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Straight Path IP generally pays law firms that represent it in litigation against alleged infringers of its intellectual property rights a percentage of the amounts recovered ranging from 0% to 40% depending on several factors. One of such law
firms has the right to 30% of the proceeds from any monetization of the Droplet patent portfolio, as such assets were received in settlement of litigation. The Droplet patent portfolio includes United States Patents Nos. 6,825,780; 6,847,317; 7,844,122; 7,525,463; 8,279,098; </font><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,436,329; 7,679,649 and a number of U.S. and foreign patent applications.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-indent: 24pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 0pt; margin-right: 0pt;">
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<div align="left" style="width: 1583px;"><font style="display: inline; font-family: 'times new roman'; font-size: 8pt;"> </font></div>
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<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div>
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<table style="width: 100%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td valign="bottom" style="border-bottom: black 2px solid;" colspan="10">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Three Months Ended</font></div>
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">October 31, 2013</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
</tr>
<tr>
<td valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td valign="bottom" style="border-bottom: black 2px solid;" colspan="2">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Attributable</font></div>
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">to Straight Path</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td valign="bottom" style="border-bottom: black 2px solid;" colspan="2">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Noncontrolling</font></div>
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Interests</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td valign="bottom" style="border-bottom: black 2px solid;" colspan="2">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Total</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
</tr>
<tr>
<td valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td valign="bottom"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td valign="bottom" colspan="10">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">(in thousands)</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="64%" valign="bottom" style="text-align: left; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">
<div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Balance, July 31, 2013</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 16.7pt;"></font>14,229</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 16.7pt;"></font>(374</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 16.7pt;"></font>13,855</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display:
inline;"> </font></td>
</tr>
<tr bgcolor="white">
<td width="64%" valign="bottom" style="text-align: left; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">
<div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Stock-based compensation</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 41.85pt;"></font>156</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 48.5pt;"></font>—</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 41.85pt;"></font>156</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="64%" valign="bottom" style="padding-bottom: 2px; text-align: left; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">
<div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Net loss</font></div>
</td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 32.95pt;"></font>(391</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 39.6pt;"></font>(26</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 32.95pt;"></font>(417</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td>
</tr>
<tr bgcolor="white">
<td width="64%" valign="bottom" style="padding-bottom: 4px; text-align: left; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">
<div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Balance, October 31, 2013</font></div>
</td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 16.7pt;"></font>13,994</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt;
font-family: times new roman; display: inline;"><font style="margin-left: 16.7pt;"></font>(400</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 16.7pt;"></font>13,594</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
</tr>
</table>
</div>
<div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff;"><br class="apple-interchange-newline" /><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"></font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="6"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">October 31,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2012</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" colspan="6"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="76%" valign="bottom"><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Stock options<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">32</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Non-vested restricted Class B common stock<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,279</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color:
black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display:
inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,058</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="76%" valign="bottom" style="padding-bottom: 4px;"><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Shares excluded from the calculation of diluted loss per share<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,311</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,058</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div> </div>
<div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff;"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="6"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">October 31,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2012</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" colspan="6"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="76%" valign="bottom"><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Included in direct cost of revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 10pt;"></font>28</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 10pt;"></font>306</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Included in selling, general and administrative</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 35.75pt;"></font>254</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new
roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font
style="margin-left: 35.75pt;"></font>181</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div> </div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div>
<div align="right">
<table style="width: 100%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td width="79%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td width="20%" valign="bottom" style="border-bottom: black 2px solid;" colspan="4">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Three Months Ended</font></div>
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">October 31,</font></div>
</td>
</tr>
<tr>
<td width="79%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">2013</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom: black 2px solid;">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">2012</font></div>
</td>
</tr>
<tr>
<td width="79%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td>
<td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td>
<td width="20%" valign="bottom" colspan="4">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">(in thousands)</font></div>
</td>
</tr>
<tr bgcolor="#cceeff">
<td align="left" width="79%" valign="bottom">
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Covad Communications Group<font style="margin-left: 12pt;"></font></font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 10pt;"></font>41</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">na</font></div>
</td>
</tr>
<tr bgcolor="white">
<td width="79%" valign="bottom" style="text-align: left; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">
<div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">AT&T</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 42.4pt;"></font>31</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">na</font></div>
</td>
</tr>
<tr bgcolor="#cceeff">
<td width="79%" valign="bottom" style="text-align: left; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt;">
<div style="text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Airband Communications</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="margin-left: 42.4pt;"></font>15</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td>
<td width="9%" valign="bottom">
<div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">na</font></div>
</td>
</tr>
</table>
</div>
<div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff;"><br class="apple-interchange-newline" /><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Straight Path</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Spectrum</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Straight Path</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">IP</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" colspan="10"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended October 31, 2013</font></div></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">107</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;">20</font></td><td width="1%" nowrap="nowrap" valign="bottom"
style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">127</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Loss from operations</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 32.8pt;"></font>(60</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 26.15pt;"></font>(410</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 26.15pt;"></font>(470</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Three Months Ended October 31, 2012</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">141</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">327</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align:
left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman';
font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">468</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Loss from operations</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 32.8pt;"></font>(36</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.15pt;"></font>(1,438</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 16.15pt;"></font>(1,474</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td></tr></table></div><div> </div>
<div align="right" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff;"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Straight Path</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Spectrum</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Straight Path</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">IP</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Total assets:</font></div></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">October 31, 2013</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td
width="9%" valign="bottom" style="text-align:
right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,166</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">9,434</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">15,600</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">July 31, 2013</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 25.05pt;"></font>3,642</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 18.35pt;"></font>12,097</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="margin-left: 18.35pt;"></font>15,739</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div> </div>
0.845
1.00
10100
229608
38268
3750
100000
1500000
21263
5.67
Stock issued by IDT and the 1 for 2 distribution ratio of the Spin-Off
Grants of restricted shares will vest as to one-third of the granted shares on each of August 2, 2014, 2015 and 2016, unless otherwise determined by the Compensation Committee of the Company's Board of Directors.
Grants of restricted shares will vest as to one-third of the granted shares on each of August 2, 2014, 2015 and 2016, unless otherwise determined by the Compensation Committee of the Company's Board of Directors.
32155
641567
1058000
1058000
1311000
32000
1279000
306000
28000
181000
254000
100000
2
0.05
0.05
35000000
0.50
4000000
0.40
0.00
Straight Path IP generally pays law firms that represent it in litigation against alleged infringers of its intellectual property rights a percentage of the amounts recovered ranging from 0% to 40% depending on several factors. One of such law firms has the right to 30% of the proceeds from any monetization of the Droplet patent portfolio, as such assets were received in settlement of litigation.