Business Segment Information

6 Months Ended

Jan. 31, 2016

Business Segment Information [Abstract]

Business Segment Information

Note 8—Business Segment Information

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 computer networks, and the licensing and other businesses related to this intellectual property.

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.

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.

The Company allocates all of the corporate general and administrative expenses of Straight Path to Straight Path IP Group and Straight Path Spectrum based upon the relative time of management and other corporate resources expended relative to each business as well as the revenues earned by each division. For all periods through January 31, 2016, these were allocated 80% to Straight Path IP Group and 20% to Straight Path Spectrum. Commencing on February 1, 2016, these expenses will be allocated 20% to Straight Path IP Group and 80% to Straight Path Spectrum. The change was brought about by the expiration of the licensed patents. Straight Path IP Group has been recognizing revenues over the terms of the settlements and license agreements related to such patents entered into in prior periods. With the expiration of the key patents, the Company determined to modify the allocation, and in light of the favorable decision in the Sipnet Appeal (see Note 9), and the ability to recommence enforcement activities with respect to the six years prior to expiration, the Company determined that a 20% allocation to Straight Path IP Group represented the appropriate split in light of all factors.

Operating results for the business segments of the Company were as follows:

	Straight Path Spectrum			Straight Path IP			Total
	(in thousands)
Three Months Ended January 31, 2016
Revenues	$	112		$	-		$	112
Loss from operations		(965	)		(1,656	)		(2,621	)
Three Months Ended January 31, 2015
Revenues	$	93		$	2,688		$	2,781
(Loss) income from operations		(412	)		250			(162	)
Six Months Ended January 31, 2016
Revenues	$	217		$	1,598		$	1,815
Loss from operations		(1,299	)		(2,013	)		(3,312	)
Six Months Ended January 31, 2015
Revenues	$	189		$	7,415		$	7,604
Income (loss) from operations		(709	)		2,159			1,450

Total assets for the business segments of the Company were as follows:

	Straight Path Spectrum		Straight Path IP		Total
	(in thousands)
Total assets:
January 31, 2016 (Unaudited)	$	5,999	$	10,899	$	16,898
July 31, 2015		5,637		14,601		20,238