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<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 1—Basis of Presentation</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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 and nine months ended April 30, 2014 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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Straight Path was incorporated in April 2013. Straight Path’s businesses consist of 100% ownership of Straight Path Spectrum, Inc. (“Straight Path Spectrum”) and 84.5% ownership of Straight Path IP Group, Inc. (“Straight Path IP”). Straight Path Spectrum’s wholly-owned subsidiary, Straight Path Spectrum, LLC, holds, leases and markets fixed wireless spectrum, and Straight Path IP 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="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 2—Fair Value Measurements</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">At April 30, 2014, the Company did not have any assets or liabilities measured at fair value on a recurring basis.</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">At April 30, 2014 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></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 3—Equity</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; 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font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Balance, July 31, 2013<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align:
right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.7pt;"></font>14,229</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; 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-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; 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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Stock-based compensation<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 41.85pt;"></font>628</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; 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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 41.85pt;"></font>628</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Net loss<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 72pt;"></font>(1,000</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 32.95pt;"></font>(163</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font><div style="text-align:
right; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 72pt;"></font>(1,163</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Balance, April 30, 2014<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font><div style="text-align: right; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">13,857</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.7pt;"></font>(537</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font><div style="text-align: right; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">13,320</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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 these options to purchase Company stock 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. The options to purchase shares of the Company were issued under the Company’s 2013 Stock Option and Incentive Plan. The issuance of options to purchase 32,155 shares of the Company’s Class B common stock was accounted for as a modification. No incremental charge was required as a result of the modification.</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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 is being charged to expense on a straight line basis over the vesting period.</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">In January 2014, the Company granted its non-employee directors an aggregate of 24,000 shares of the Company’s Class B common stock with an aggregate fair value on the date of grant of $0.2 million. These shares vested immediately upon grant.</font></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 4—<font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Earnings (Loss) Per Share</font></font><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Basic earnings (loss) 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="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following:</font></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman';
font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="14"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: -36pt; margin-right: 0pt; margin-left: 36pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Basic weighted-average number of shares<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,339</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,424</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">10,878</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,424</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: -36pt; margin-right: 0pt; margin-left: 36pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Effect of dilutive securities:</font></div></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%"
valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: 9pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Stock options<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">7</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="52%" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: 9pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">303</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom"
style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom" style="padding-bottom: 4px;"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Diluted weighted-average number of shares<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,649</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,424</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">10,878</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,424</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div
align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="14"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt;">Stock options<font style="font-family: 'times new roman'; font-size: 10pt; margin-left: 12pt;"></font></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">30</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display:
inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="52%" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt;"><font style="font-family: 'times new roman'; font-size: 10pt;"><font style="font-family: 'times new roman'; font-size: 10pt;">Non-vested restricted Class B common stock<font style="font-family: 'times new roman'; font-size: 10pt; margin-left: 12pt;"></font></font></font></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,002</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">474</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,002</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom" style="padding-bottom: 4px;"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Shares excluded from the calculation of diluted loss per share</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,002</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">504</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new
roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,002</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">For the nine months ended April 30, 2014 and the three and nine months ended April 30, 2013, 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></font></div></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 5—Related Party Transactions</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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 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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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 and nine months ended April 30, 2014, IDT paid $0.3 million and $0.4 million, respectively, pursuant to this obligation, which was recorded as “Income from IDT Corporation payments of liabilities” in the combined and consolidated statement of operations.</font></font></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div></div><div style="font: 13px/normal 'times new roman'; text-align: left; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The Company also entered into a Transition Services Agreement, pursuant to which IDT is continuing to provide certain services through July 31, 2014, 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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt;
margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="14"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Included in direct cost of revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">12</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display:
inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">15</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">39</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">40</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt;"><font style="font-family: 'times new roman'; font-size: 10pt;">Included in selling, general and administrative<font style="font-family: 'times new roman'; font-size: 10pt; margin-left: 12pt;"></font></font></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">105</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">162</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">698</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">478</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 6—Concentration of Customers and Gain on Sale of Rights in Wireless Spectrum</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Concentration of Customers</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; 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="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="20%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="4"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td width="79%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td width="79%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="20%" valign="bottom" style="text-align: center;" colspan="4"><div style="text-align: center; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="79%" valign="bottom"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">TelePacific Communications<font style="margin-left: 12pt;"></font></font></div></td><td width="9%" valign="bottom" style="text-align: right;"><div style="text-align: right; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 32.45pt;"></font>na</font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">124</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div><div style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left"
style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">na-less than 10% of total revenues in the period</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;"></font> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Gain on Sale of Rights in Wireless Spectrum</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">In March and April 2012, Straight Path Spectrum closed on the sale of rights in wireless spectrum partitioned and/or disaggregated from eight of its spectrum licenses covering metropolitan areas from its nationwide portfolio. In fiscal 2012, Straight Path Spectrum received cash of $6.8 million in exchange for the rights in the spectrum and recorded a gain of $5.3 million. In fiscal 2013, Straight Path Spectrum settled certain claims made by the Former Chief Executive Officer of Straight Path Spectrum (the “Former SPSI CEO”) and parties related to the Former SPSI CEO in connection with the March and April 2012 sale of rights in wireless spectrum. In the three months ended January 31, 2013, the Company reversed accrued amounts due to the settlement of the claims and recorded a gain of $0.2 million that was included in “Gain on sale of rights in wireless spectrum” in the combined and consolidated statement of operations.</font></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 7—Business Segment Information</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Operating results for the business segments of the Company were as follows:</font><div><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div><div align="left"><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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Straight Path</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Spectrum</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Straight Path IP</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="10"><div align="center"
style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended April 30, 2014</font></div></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">109</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">804</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">913</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Loss from operations<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(117</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 32.8pt;"></font>(60</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(177</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended April 30, 2013</font></div></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%"
valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">120</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">165</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">285</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Loss from operations<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(750</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(138</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(888</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended April 30, 2014</font></div></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family:
'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">325</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,168</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,493</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Loss from operations<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(352</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.15pt;"></font>(1,167</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.15pt;"></font>(1,519</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended April 30, 2013</font></div></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display:
inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">397</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">585</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">982</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Loss from operations<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(670</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.15pt;"></font>(2,099</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.15pt;"></font>(2,769</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Gain on sale of rights in wireless spectrum<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 35.05pt;"></font>150</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 41.7pt;"></font>—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%"
valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 35.05pt;"></font>150</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Total assets for the business segments of the Company were as follows:</font></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Straight Path</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Spectrum</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Straight Path IP</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="2"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Total assets:</font></div></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display:
inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">April 30, 2014<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">5,059</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">21,356</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">26,415</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">July 31, 2013<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 25.05pt;"></font>3,642</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 18.35pt;"></font>12,097</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 18.35pt;"></font>15,739</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div><div> </div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 8—Commitments and Contingencies</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Legal Proceedings</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div style="text-align: left; text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On December 11, 2012, Straight Path IP filed a demand for arbitration seeking a declaration that it properly terminated for cause the employment of the former Chief Executive Officer of Straight Path IP (the “Former SPIP CEO”) and that he 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, including in respect of options to purchase common stock representing 5% of the outstanding common stock of Straight Path IP, damages for unpaid compensation and severance, a sum in excess of $35 million in compensatory damages, and punitive damages in an unspecified amount. In a filing with respect to the arbitration proceeding, the Former SPIP CEO announced his intent to present evidence of a valuation of $5 billion for Straight Path IP, along with his assertion that the market value of Straight Path IP is not a fair representation of his damages related to his alleged equity rights. 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 respondent’s counterclaims. At the current time, the Company cannot reasonably estimate its likely exposure in this matter. Under the terms of the Separation Agreement related to the Spin-Off, IDT is responsible for the costs of the arbitration and will indemnify the Company for liability other than for issuance of equity to the Former SPIP CEO.</font></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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 January 30, 2014, Straight Path IP filed a Patent Owner’s Response, and oral argument is set for July 11, 2014. Straight Path IP intends to vigorously defend the claims of the ’704 Patent. Although Straight Path IP believes that the claims of the’704 Patent are valid, they may be deemed invalid during the <font style="font-style: italic; display: inline;">inter partes</font> review.</font></font></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On August 1, 2013, Straight Path IP 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 patents (U.S. Patent Nos. 6,701,365 and 6,513,066). Straight Path IP seeks both damages and injunctive relief from the defendants. In January 2014, Straight Path IP entered into a confidential settlement and patent license agreement with Bandwidth.com, Inc. On February 26, 2014, the Court issued a <font style="font-style: italic; display: inline;">Markman</font> ruling, which Straight Path IP believes is favorable to its claims. On April 30, 2014, Straight Path IP engaged in mediation with Telesphere and Vocalocity. On May 15, 2014, Straight Path IP entered into a confidential settlement and
patent license agreement with Telesphere. A status conference is currently set for June 23, 2014 to address any outstanding issues before jury trial.</font></font></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div style="text-align: left; text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On August 1, 2013, Straight Path IP 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 alleged that the respondents infringed three of its patents (U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121). Straight Path IP sought to exclude the allegedly infringing products from importation into the United States. On September 4, 2013, the ITC instituted the investigation. In January 2014, Straight Path IP and the Sharp entities entered into a confidential settlement and patent license agreement. On April 23, 2014, Straight Path IP and the Sony entities entered into a confidential settlement and patent license agreement. On May 5, 2014, Straight Path IP and AmTran entered into a confidential settlement and patent license agreement. Also on May 5, 2014, Straight Path IP moved to terminate the ITC investigation to pursue its claims against the remaining respondents in district court. On May 12, 2014, the Administrative Law Judge issued an initial determination granting Straight Path IP’s motion to terminate. On May 27, 2014, Straight Path IP and the Panasonic entities entered into a confidential settlement and patent license agreement.</font></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On August 1, 2013, Straight Path IP 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 patents. Straight Path IP seeks damages in these actions. With a co-pending ITC investigation involving the same patents, the defendants were entitled by statute to a stay of the district court proceedings, and all of the matters have been stayed. Although the ITC action has concluded, the stay has not yet been lifted. These actions, except against the LG defendants, have been consolidated. Straight Path IP has served the complaints. On March 31, 2014, Straight Path IP dismissed the Sharp entities from the district court proceeding based upon Sharp’s compliance with its obligations under the confidential settlement and patent license agreement.</font></font></div><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On April 23, 2014, Straight Path IP and Google, Inc. entered into a confidential license agreement. Although Google was not a party to either the ITC investigation or district court actions described above, Google products and services were identified in a number of allegedly infringing products.</font></div></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On August 23, 2013, Straight Path IP 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 patents (U.S. Patent Nos. 6,108,704, 6,009,469, and 6,131,121). Straight Path IP seeks damages in these actions. Straight Path IP entered into a stipulation dismissing the foreign ZTE entity, ZTE Corporation, without prejudice in exchange for discovery against the remaining ZTE entity, ZTE USA. Discovery has begun, a <font style="font-style: italic; display: inline;">Markman</font> hearing is set for October 2014 and a pretrial conference has been set for October 2015.</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div
align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On November 5, 2013, Straight Path IP 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 patents (U.S. Patent Nos. 6,009,469, 6,131,121, 6,513,066, and 6,701,365). Straight Path IP seeks both damages and injunctive relief from the defendants. In January 2014, the action was transferred to the District Court for the District of New Jersey. A scheduling order has not issued.</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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 filed a Patent Owner’s Preliminary Response on March 21, 2014.  On April 28, 2014, shortly after entering into a confidential settlement and patent license agreement, Sony Corporation and Straight Path IP jointly moved to terminate Sony’s petitions. On May 2, 2014, the USPTO terminated the petitions.</font></font></div><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><div style="text-align: left; text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On May 2, 2014, Straight Path IP filed a complaint against Netflix, Inc. in the United States District Court for the Eastern District of Texas claiming infringement of five of its patents (U.S. Patent Nos. 6,108,704; 6,009,469; 6,701,365; 6,131,121; and 6,513,066). Straight Path IP seeks both damages and injunctive relief in this action.</font></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div><div style="text-align: left; text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On May 19, 2014, VIZIO, Inc. filed an action for declaratory relief of non-infringement of Straight Path’s patents (U.S. Patent Nos. 6,108,704; 6,009,469; and 6,131,121) in the Eastern District of Virginia against Straight Path IP. Straight Path IP has not been served at this time.</font></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On June 5, 2014, Straight Path IP filed an additional complaint against Blackberry Ltd. and Blackberry Corp. in the United States District Court for the Eastern District of Texas, again claiming infringement of three of its patents (U.S. Patent Nos. 6,108,704; 6,009,469; and 6,131,121). The complaint alleges infringement by additional Blackberry functionality. Straight Path IP seeks both damages and injunctive relief in this action. The complaint has not been served at this time.</font></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><div align="left" style="text-indent: 27pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">At April 30, 2014, Straight Path IP’s total license and settlement amounts were an aggregate of $13.2 million, of which $12.3 million was secured subsequent to the Spin-Off. The aggregate license and settlement amounts exclude contingent amounts for which collectability is not reasonably assured. At April 30, 2014, Straight Path IP incurred an aggregate of $6.6 million in expenses directly related to these settlements, which is being recognized ratably in proportion to the revenue recognized.</font></div></div><div align="justify" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div></div></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000;
text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Other Commitments and Contingencies</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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. As of April 30, 2014, the Company has paid $<font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">0.1</font> million to the Former SPSI CEO for this obligation.</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font-family: 'times new roman'; font-size: 10pt; display: inline;">7,679,649 and a number of U.S. and foreign patent applications.</font></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; background-color: #ffffff; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Note 9—Recently Issued Accounting Standard Not Yet Adopted</font></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; background-color: #ffffff; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; background-color: #ffffff; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">In May 2014, the Financial Accounting Standards Board and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard that will supersede most of the current revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (“IFRS”). The goals of the revenue recognition project were to clarify and converge the revenue recognition principles under U.S. GAAP and IFRS and to develop guidance that would streamline and enhance revenue recognition requirements. The Company will adopt this standard on August 1, 2017. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company is evaluating the impact that the standard will have on its consolidated financial statements.</font></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30, 2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Attributable</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">to Straight Path</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Noncontrolling</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Interests</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="10"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Balance, July 31, 2013<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; 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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.7pt;"></font>(374</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display:
inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; 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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Stock-based compensation<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 41.85pt;"></font>628</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; 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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 41.85pt;"></font>628</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Net loss<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 72pt;"></font>(1,000</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 32.95pt;"></font>(163</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font><div style="text-align: right; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 72pt;"></font>(1,163</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Balance, April 30, 2014<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;
border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font><div style="text-align: right; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">13,857</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.7pt;"></font>(537</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font><div style="text-align: right; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">13,320</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="14"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: -36pt; margin-right: 0pt; margin-left: 36pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Basic weighted-average number of shares<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display:
inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,339</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,424</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">10,878</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,424</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: -36pt; margin-right: 0pt; margin-left: 36pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Effect of dilutive securities:</font></div></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: 9pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Stock options<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">7</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td
width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="52%" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: 9pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">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="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">303</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom" style="padding-bottom: 4px;"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Diluted weighted-average number of shares<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,649</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,424</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td
width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">10,878</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">11,424</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div>
<div> </div><table style="width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 10pt; word-spacing: 0px; background-color: #ffffff; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="14"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt;">Stock options<font style="font-family: 'times new roman'; font-size: 10pt; margin-left: 12pt;"></font></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display:
inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">30</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="52%" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt;"><font style="font-family: 'times new roman'; font-size: 10pt;"><font style="font-family: 'times new roman'; font-size: 10pt;">Non-vested restricted Class B common stock<font style="font-family: 'times new roman'; font-size: 10pt; margin-left: 12pt;"></font></font></font></font></font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,002</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">474</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,002</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom" style="padding-bottom: 4px;"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Shares excluded from the calculation of diluted loss per share</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font
style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,002</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">504</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,002</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table>
<div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="14"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Included in direct cost of revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">12</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman';
font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">15</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">39</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">40</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="52%" valign="bottom"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt;"><font style="font-family: 'times new roman'; font-size: 10pt;">Included in selling, general and administrative<font style="font-family: 'times new roman'; font-size: 10pt; margin-left: 12pt;"></font></font></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">105</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">162</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">698</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">478</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div><div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="20%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="4"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">April 30,</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td width="79%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2014</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">2013</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td width="79%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="20%" valign="bottom" style="text-align: center;" colspan="4"><div style="text-align: center; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="79%" valign="bottom"><div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">TelePacific Communications<font style="margin-left: 12pt;"></font></font></div></td><td width="9%" valign="bottom" style="text-align: right;"><div style="text-align: right; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 32.45pt;"></font>na</font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">124</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div>
<div style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 36px; letter-spacing: normal; word-spacing: 0px; white-space: normal; background-color: #ffffff; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 36px; letter-spacing: normal; word-spacing: 0px; white-space: normal; background-color: #ffffff; -webkit-text-stroke-width: 0px;"><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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Straight Path</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Spectrum</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Straight Path IP</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="10"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended April 30, 2014</font></div></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">109</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">804</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%"
valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">913</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Loss from operations<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(117</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 32.8pt;"></font>(60</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(177</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Three Months Ended April 30, 2013</font></div></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -18pt; margin-right: 0pt; margin-left: 18pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">120</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">165</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman';
font-size: 10pt; display: inline;">285</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Loss from operations<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(750</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(138</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(888</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended April 30, 2014</font></div></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">325</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,168</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,493</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left:
9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Loss from operations<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(352</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.15pt;"></font>(1,167</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.15pt;"></font>(1,519</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Nine Months Ended April 30, 2013</font></div></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Revenues<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">397</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">585</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">982</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Loss from operations<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom"
style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 26.15pt;"></font>(670</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.15pt;"></font>(2,099</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 16.15pt;"></font>(2,769</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">)</font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Gain on sale of rights in wireless spectrum<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 35.05pt;"></font>150</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 41.7pt;"></font>—</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 35.05pt;"></font>150</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div>
<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"> </div><div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 27pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><div align="left"><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-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Straight Path</font></div><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Spectrum</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Straight Path IP</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </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; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Total</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td></tr><tr><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom" colspan="2"><div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">(in thousands)</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Total assets:</font></div></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td valign="bottom" colspan="2"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">April 30, 2014<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">5,059</font></td><td width="1%"
nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">21,356</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">26,415</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr><tr bgcolor="white"><td align="left" width="64%" valign="bottom"><div align="left" style="text-indent: -9pt; margin-right: 0pt; margin-left: 9pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">July 31, 2013<font style="margin-left: 12pt;"></font></font></div></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 25.05pt;"></font>3,642</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 18.35pt;"></font>12,097</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="margin-left: 18.35pt;"></font>15,739</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td></tr></table></div></div><div> </div>
1.00
0.845
10100
24000
3750
229608
38268
100000
200000
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
7000
303000
1002000
1002000
1002000
1002000
504000
30000
474000
15000
40000
12000
39000
162000
478000
105000
698000
300000
400000
6800000
2
0.05
35000000
0.50
4000000
100000
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.
5000000000
13200000
6600000
12300000