Note 14—Business Segment Information

Prior to November 1, 2015, the Company had two reportable business segments, Straight Path Spectrum, which holds, leases, and markets fixed and mobile wireless spectrum, and Straight Path IP Group, which holds intellectual property primarily related to communications over computer networks, and the licensing and other businesses related to this intellectual property. Effective November 1, 2015, a third segment, referred to as Straight Path Ventures, was designated. Straight Path Ventures develops next generation wireless technology for 39 GHz at the Company’s Gigabit Mobility Lab in Plano, Texas.

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, Straight Path Spectrum, and Straight Path Ventures 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. No expenses were allocated to Straight Path Ventures because the amount of management’s time and other resources dedicated to Straight Path Ventures were deemed to be immaterial. Commencing on February 1, 2016, these expenses are being allocated 20% to Straight Path IP Group and 80% to Straight Path Spectrum, except for the following:

	1.	Expenses related to the Gigabit Mobility Lab are being allocated 100% to Straight Path Ventures;

	2.	Employment expenses of our Chief Technology Officer are being allocated 20% to Straight Path IP Group, 20% to Straight Path Spectrum, and 60% to Straight Path Ventures;

	3.	Employment expenses related to one employee are being allocated 20% to Straight Path Spectrum and 80% to Straight Path Ventures;

	4.	Employment expenses related to several other employees are being allocated 100% to Straight Path Spectrum.

The changes in allocations were brought about by the expiration of the licensed patents held by Straight Path IP Group and the increase in activities of Straight Path Ventures. Straight Path IP Group recognized 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 and the increase in activities of Straight Path Ventures, the Company determined to modify the allocation, and in light of the anticipated level of activity in Straight Path IP Group’s enforcement activities and Straight Path Ventures’ development activities, the Company determined that a general 20% allocation to Straight Path IP Group, subject to the specific allocations listed above, represented the appropriate split in light of all factors.

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

	Straight			Straight			Straight
	Path			Path			Path
	Spectrum			IP Group			Ventures			Total

Year Ended July 31, 2017
Revenues	$	658		$	—		$	—		$	658
Loss from operations		(34,976	)		(6,098	)		(1,937	)		(43,011	)

Year Ended July 31, 2016
Revenues	$	461		$	1,695		$	—		$	2,156
Loss from operations		(5,508	)		(2,688	)		(891	)		(9,087	)

Year Ended July 31, 2015
Revenues	$	426		$	12,814		$	—		$	13,240
Income (loss) from operations		(1,641	)		1,907			—			266

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

	Straight		Straight		Straight
	Path		Path		Path
	Spectrum		IP Group		Ventures		Total
	(in thousands)
Total assets
July 31, 2017	$	8,054	$	2,696	$	1,100	$	11,850
July 31, 2016		10,174		2,223		1,100		13,497

None of the Company’s revenues were generated outside of the United States. The Company did not have any assets outside the United States.