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Balance Sheet Components | 12 Months Ended
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Jun. 30, 2022
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Components | Balance Sheet Components Property, Equipment and Software, net Property, equipment and software, net consisted of the following (in thousands):
|  |  |  | June 30, 2022 |  | June 30, 2021
Internally developed software |  |  |  | $ | 200,621 |  |  | $ | 68,197 |
Leasehold improvements |  |  |  | 16,169 |  |  | 15,212 |
Computer equipment |  |  |  | 10,751 |  |  | 6,707 |
Furniture and equipment |  |  |  | 4,279 |  |  | 5,284 |
Total Property, equipment and software, at cost |  |  |  | $ | 231,820 |  |  | $ | 95,400 |
Less: Accumulated depreciation and amortization |  |  |  | (60,338) |  |  | (32,901) |
Total Property, equipment and software, net |  |  |  | $ | 171,482 |  |  | $ | 62,499 |
Depreciation and amortization expense on property, equipment and software was $29.2 million, $15.4 million and $9.4 million for the years ended June 30, 2022, 2021, and 2020, respectively. Depreciation expense on leasehold improvements, furniture and equipment, and computer equipment is allocated between general and administrative, technology and data analytics, sales and marketing, and processing and servicing based on employee headcount in the consolidated statements of operations and comprehensive loss. Amortization expense on internally developed software is included as a component of technology and data analytics in the consolidated statements of operations and comprehensive loss. For the year ended June 30, 2021, we recorded impairment expense of $1.5 million related to leasehold improvements. No impairment losses related to leasehold improvements were noted during both the years ended June 30, 2022 and 2020. No impairment losses related to property, equipment and software were recorded during the years ended June 30, 2022, 2021, and 2020. Goodwill and Intangible Assets The changes in the carrying amount of goodwill during the years ended June 30, 2022 and 2021 were as follows (in thousands):
Balance as of June 30, 2020 |  | $ | 1,255 |
Additions |  | 508,581 |
Effect of foreign currency translation |  | 6,679 |
Balance as of June 30, 2021 |  | $ | 516,515 |
Additions |  | 33,318 |
Effect of foreign currency translation |  | (10,299) |
Balance as of June 30, 2022 |  | $ | 539,534 |
Refer to Note 5. Acquisitions for a description of additions to goodwill during the years ended June 30, 2022 and 2021. No impairment losses related to goodwill were recorded during the years ended June 30, 2022, 2021, and 2020. Intangible assets consisted of the following (in thousands):
|  | June 30, 2022
|  | Gross |  | Accumulated Amortization |  | Net |  | Weighted Average Remaining Useful Life (in years)
Merchant relationships |  | $ | 38,371 |  |  | $ | (10,281) |  |  | $ | 28,090 |  |  | 3.6
Developed technology |  | 39,782 |  |  | (15,882) |  |  | 23,900 |  |  | 1.9
Assembled workforce |  | 12,490 |  |  | (1,664) |  |  | 10,826 |  |  | 1.3
Trademarks and domains, definite |  | 1,507 |  |  | (802) |  |  | 705 |  |  | 2.4
Trademarks and domains, indefinite |  | 2,146 |  |  | — |  |  | 2,146 |  |  | Indefinite
Other intangibles |  | 350 |  |  | — |  |  | 350 |  |  | Indefinite
Total intangible assets |  | $ | 94,646 |  |  | $ | (28,629) |  |  | $ | 66,017 |  |  |
In connection with the Fast asset acquisition, we also recorded a $12.9 million intangible asset representing the option to purchase developed technology as of June 30, 2022. The asset will not be amortized until the purchase is complete and the asset is placed into service. Refer to Note 5. Acquisitions for a description of the acquisition and assets acquired.
|  | June 30, 2021
|  | Gross |  | Accumulated Amortization |  | Net |  | Weighted Average Remaining Useful Life (in years)
Merchant relationships |  | $ | 38,951 |  |  | $ | (2,192) |  |  | $ | 36,759 |  |  | 4.5
Developed technology |  | 30,176 |  |  | (2,930) |  |  | 27,246 |  |  | 2.8
Trademarks and domains (1) |  | 3,769 |  |  | (194) |  |  | 3,575 |  |  | 3.3
Other intangibles |  | 350 |  |  | — |  |  | 350 |  |  | Indefinite
Total intangible assets |  | $ | 73,246 |  |  | $ | (5,316) |  |  | $ | 67,930 |  |  |
(1)As of June 30, 2021, trademarks and domains included both definite and indefinite intangible assets. Amortization expense for intangible assets was $23.5 million, $4.6 million and nil for the years ended June 30, 2022, 2021 and 2020, respectively. No impairment losses related to intangible assets were recorded during the years ended June 30, 2022, 2021, and 2020. The expected future amortization expense of these intangible assets as of June 30, 2022 is as follows (in thousands):
2023 |  | $ | 29,595 |
2024 |  | 21,686 |
2025 |  | 7,232 |
2026 |  | 4,993 |
2027 and thereafter |  | 15 |
Total amortization expense |  | $ | 63,521 |
Commercial Agreement Assets During the year ended June 30, 2022, we entered into a commercial agreement with Amazon.com Services LLC and Amazon Payments, Inc. ("Amazon") and granted warrants in exchange for certain exclusivity and performance provisions and the benefit of acquiring new users. In connection with the agreements, we recognized an asset of $133.5 million associated with the portion of the warrants that were fully vested upon execution of the agreement. The asset was valued based on the fair value of the warrants on the grant date and represents the probable future economic benefit to be realized over the approximately 3.2 year remaining initial term of the commercial agreement. For the year ended June 30, 2022, we recognized amortization expense of $26.3 million in our consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. Refer to Note 15. Redeemable Convertible Preferred Stock and Stockholders’ Equity for further discussion of the warrants. During the year ended June 30, 2021, we recognized an asset in connection with a commercial agreement with Shopify Inc. (“Shopify”), in which we granted warrants in exchange for the opportunity to acquire new merchant partners. This asset represents the probable future economic benefit to be realized over the expected benefit period and is valued based on the fair value of the warrants on the grant date. We recognized an asset of $270.6 million associated with the fair value of the warrants, which were fully vested as of June 30, 2021. The expected benefit period of the asset was initially estimated to be four years, and the remaining useful life of the asset is reevaluated each reporting period. During the year ended June 30, 2022, the remaining expected benefit period was extended by two years upon the execution of an amendment to the commercial agreement with Shopify which extended the term of the agreement. W e recorded amortization expense related to the commercial agreement asset of $62.2 million and $64.9 million for the years ended June 30, 2022, and 2021, respectively, in our consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. During the year ended June 30, 2021, we recognized an asset in connection with a commercial agreement with an enterprise partner, in which we granted stock appreciation rights in exchange for the benefit of acquiring access to the partner's consumers. This asset represents the probable future economic benefit to be realized over the three-year expected benefit period and is valued based on the fair value of the stock appreciation rights on the grant date. We initially recognized an asset of $25.9 million associated with the fair value of the stock appreciation rights. We recorded amortization expense related to the asset of $8.1 million, and $4.3 million for the years ended June 30, 2022, and 2021, respectively, in our consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. Other Assets Other assets consisted of the following (in thousands):
|  | June 30, 2022 |  | June 30, 2021
Operating lease right-of-use assets |  | $ | 50,671 |  |  | $ | 57,828 |
Derivative instruments |  | 49,983 |  |  | 2,880 |
Equity securities, at cost |  | 43,172 |  |  | 11,278 |
Prepaid expenses |  | 37,497 |  |  | 21,069 |
Prepaid payroll taxes for stock-based compensation |  | 35,172 |  |  | 111,278 |
Processing reserves |  | 26,483 |  |  | 14,042 |
Other receivables |  | 17,221 |  |  | 26,423 |
Other assets |  | 21,368 |  |  | 29,881 |
Total other assets |  | $ | 281,567 |  |  | $ | 274,679 |
Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands)
|  | June 30, 2022 |  | June 30, 2021
Accrued expenses |  | $ | 67,343 |  |  | $ | 47,674 |
Operating lease liability |  | 65,713 |  |  | 74,952 |
Collateral held for derivative instruments |  | 55,779 |  |  | — |
Contingent consideration liability |  | 23,348 |  |  | 153,447 |
Commercial agreement liability |  | — |  |  | 25,357 |
Other liabilities |  | 25,415 |  |  | 22,147 |
Total accrued expenses and other liabilities |  | $ | 237,598 |  |  | $ | 323,577 |
Our acquisition of PayBright included consideration transferred and shares held in escrow, contingent upon the achievement of future milestones. We classified the contingent consideration as a liability and we will continue to remeasure the liability to its fair value at each reporting date until the contingency is resolved. As of June 30, 2022, the fair value of the contingent consideration liability was $23.3 million. For further details on our fair value methodology with respect to the contingent consideration, see Note 14. Fair Value of Financial Assets and Liabilities. During the year ended June 30, 2021, we recognized a liability in connection with a commercial agreement with an enterprise partner of $25.9 million. As of June 30, 2022, we have fully settled this liability.

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI https://asc.fasb.org/topic&trid=2122208 + Details
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