XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Equity-Accounted Investments And Other Long-Term Assets | 3 Months Ended
--- | ---
Sep. 30, 2018
Equity-Accounted Investments And Other Long-Term Assets [Abstract] |
Equity-Accounted Investments And Other Long-Term Assets | 7. Equity-accounted investments and other long-term assets Refer to Note 9 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2018, for additional information regarding its equity-accounted investments and other long-term assets. Equity-accounted investments The Company's ownership percentage in its equity-accounted investments as of September 30, 2018 and June 30, 2018, was as follows:
| September |  | June 30, |
| 30, 2018 |  | 2018 |
Bank Frick & Co AG ("Bank Frick") | 35 | % | 35 | %
Fanaka Holdings (Pty) Ltd ("Fanaka") | 40 | % | - |
Finbond Group Limited ("Finbond") | 29 | % | 29 | %
OneFi Limited (formerly KZ One) ("OneFi") | 25 | % | 25 | %
SmartSwitch Namibia (Pty) Ltd ("SmartSwitch Namibia") | 50 | % | 50 | %
Speckpack Field Services (Pty) Ltd ("Speckpack") | 50 | % | 50 | %
Walletdoc Proprietary Limited ("Walletdoc") | 20 | % | 20 | %
Finbond As of September 30, 2018, the Company owned 267,672,032 shares in Finbond. Finbond is listed on the Johannesburg Stock Exchange and its closing price on September 28, 2018, the last trading day of the quarter, was R3.60 per share. The market value of the Company's holding in Finbond on September 30, 2018 was ZAR 1.0 billion ($72 million translated at exchange rates applicable as of September 30, 2018). On July 11, 2018, the Company, pursuant to its election, received an additional 6,602,551 shares in Finbond as a capitalization share issue in lieu of a dividend. V2 Limited On October 4, 2018, the Company acquired a 50% voting and economic interest in V2 Limited ("V2") for $2.5 million. V2 is an Africa-focused technology provider dedicated to providing financial inclusion to the roughly one billion underbanked citizens on the continent. The Company has committed to provide V2 with a further equity contribution of $2.5 million and a working capital facility of $5.0 million, which are both subject to the achievement of certain pre-defined objectives. V2 will have access to license Zapper's quick response ("QR") payment technology as well as the Company's various payment solutions such as UEPS/EMV and mobile virtual card. Zapper's QR technology and payment platform is one of the most advanced and complete QR payment offerings, and it has operations currently in South Africa, the United Kingdom and the United States. V2 will partner with Zapper to launch ZappGroup Africa, a company focused on deploying a universal white-label QR payment solution. Summarized below is the movement in equity-accounted investments during the three months ended September 30, 2018:
|  | Bank |  |  |  |  |  |  |  |  |  |
|  | Frick |  |  | Finbond |  |  | Other(1) |  |  | Total |
Investment in equity: |  |  |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2018 | $ | 48,129 |  | $ | 30,958 |  | $ | 6,092 |  | $ | 85,179 |
Acquisition of shares |  | - |  |  | 1,920 |  |  | - |  |  | 1,920 |
Stock-based compensation |  | - |  |  | 77 |  |  | - |  |  | 77 |
Comprehensive income (loss): |  | (588 | ) |  | 7,305 |  |  | 86 |  |  | 6,803 |
Other comprehensive loss |  | - |  |  | 5,430 |  |  | - |  |  | 5,430 |
Equity accounted earnings (loss) |  | (588 | ) |  | 1,875 |  |  | 86 |  |  | 1,373 |
Share of net income |  | 162 |  |  | 1,852 |  |  | 86 |  |  | 2,100 |
Amortization of acquired intangible assets |  | (189 | ) |  | - |  |  | - |  |  | (189 | )
Deferred taxes on acquired intangible assets |  | 45 |  |  | - |  |  | - |  |  | 45 |
Dilution resulting from corporate transactions |  | - |  |  | 23 |  |  | - |  |  | 23 |
Other |  | (606 | ) |  | - |  |  | - |  |  | (606 | )
Dividends received |  | - |  |  | (1,920 | ) |  | - |  |  | (1,920 | )
Return on investment |  | - |  |  | - |  |  | (284 | ) |  | (284 | )
Foreign currency adjustment(2) |  | 435 |  |  | (1,059 | ) |  | (57 | ) |  | (681 | )
Balance as of September 30, 2018 | $ | 47,976 |  | $ | 37,281 |  | $ | 5,837 |  | $ | 91,094 |
Investment in loans: |  |  |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2018 | $ | - |  | $ | - |  | $ | 3,152 |  | $ | 3,152 |
Foreign currency adjustment(2) |  | - |  |  | - |  |  | (5 | ) |  | (5 | )
Balance as of September 30, 2018 | $ | - |  | $ | - |  | $ | 3,147 |  | $ | 3,147 |
|  |  |  |  | Equity |  |  | Loans |  |  | Total |
Carrying amount as of: |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018 |  |  |  | $ | 85,179 |  | $ | 3,152 |  | $ | 88,331 |
September 30, 2018 |  |  |  | $ | 91,094 |  | $ | 3,147 |  | $ | 94,241 |
(1) Includes OneFi, SmartSwitch Namibia, Speckpack, Fanaka and Walletdoc; (2) The foreign currency adjustment represents the effects of the fluctuations of the South African rand, Swiss franc, Nigerian naira and Namibian dollar, and the U.S. dollar on the carrying value. Other long-term assets Summarized below is the breakdown of other long-term assets as of September 30, 2018, and June 30, 2018:
|  | September 30, |  |  | June 30,
|  | 2018 |  |  | 2018
Total equity investments | $ | 194,570 |  | $ | 199,865
Investment in 15% of Cell C, at fair value (Note 6) |  | 167,835 |  |  | 172,948
Investment in 12% of MobiKwik, at fair value(1) |  | 26,735 |  |  | 26,917
Total held to maturity investments |  | 10,551 |  |  | 10,395
Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes |  | 10,551 |  |  | 10,395
Long-term portion of payments to agents in South Korea amortized over the contract period |  | 15,946 |  |  | 17,582
Long-term portion of other finance loans receivable |  | 16,161 |  |  | 12,283
Contingent purchase consideration |  | - |  |  | 9,064
Policy holder assets under investment contracts (Note 9) |  | 598 |  |  | 610
Reinsurance assets under insurance contracts (Note 9) |  | 619 |  |  | 633
Other long-term assets |  | 6,705 |  |  | 5,948
Total other long-term assets | $ | 245,150 |  | $ | 256,380
(1) The Company has determined that MobiKwik does not have readily determinable fair value and has therefore elected to recorded this investment at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company accounted for its investment in MobiKwik at cost as of June 30, 2018. Summarized below are the components of the Company's held to maturity investments as of September 30, 2018:
|  |  |  | Unrealized |  | Unrealized |  |
|  |  |  | holding |  | holding |  | Carrying
|  | Cost basis |  | gains |  | losses |  | value
Held to maturity: |  |  |  |  |  |  |  |
Investment in Cedar Cellular notes | $ | 9,000 | $ | 1,551 | $ | - | $ | 10,551
Total | $ | 9,000 | $ | 1,551 | $ | - | $ | 10,551
Summarized below are the components of the Company's held to maturity investments as of June 30, 2018:
|  |  |  | Unrealized |  | Unrealized |  |
|  |  |  | holding |  | holding |  | Carrying
|  | Cost basis |  | gains |  | losses |  | value
Held to maturity: |  |  |  |  |  |  |  |
Investment in Cedar Cellular notes | $ | 9,000 | $ | 1,395 | $ | - | $ | 10,395
Total | $ | 9,000 | $ | 1,395 | $ | - | $ | 10,395
The unrealized holding gains related to the investment in Cedar Cellular notes were recorded in interest income in the consolidated statement of operations. Interest on this investment will only be paid, at Cedar Cellular's election, on maturity in August 2022. The Company's effective interest rate on the Cedar Cellular note is 19.15% as of September 30, 2018, and it has recognized unrealized holding gains of $0.2 million during the three months ended September 30, 2018, which includes unrealized losses attributable to changes in the effective interest rate. Contractual maturities of held to maturity investments Summarized below is the contractual maturity of the Company's held to maturity investment as of September 30, 2018:
|  |  |  | Estimated |
|  | Cost |  | fair |
|  | basis |  | value(1) |
Due in one year or less | $ | - | $ | - |
Due in one year through five years |  | 9,000 |  | 9,625 |
Due in five years through ten years |  | - |  | - |
Due after ten years |  | - |  | - |
Total | $ | 9,000 | $ | 9,625 |
(1) The estimated fair value of the Cedar Cellular note has been calculated utilizing the Company's portion of the security provided to the Company by Cedar Cellular, namely, Cedar Cellular's investment in Cell C.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration