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Equity-Accounted Investments And Other Long-Term Assets | 9 Months Ended
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Mar. 31, 2019
Equity-Accounted Investments And Other Long-Term Assets [Abstract] |
Equity-Accounted Investments And Other Long-Term Assets | 8. 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/A 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 March 31, 2019 and June 30, 2018, was as follows:
| March 31, |  | June 30, |
| 2019 |  | 2018 |
Bank Frick & Co AG ("Bank Frick") | 35 | % | 35 | %
DNI | 38 | % | - |
Finbond Group Limited ("Finbond") | 29 | % | 29 | %
OneFi Limited (formerly KZ One) ("OneFi") | 25 | % | 25 | %
SmartSwitch Namibia (Pty) Ltd ("SmartSwitch Namibia") | 50 | % | 50 | %
V2 Limited ("V2") | 50 | % | - |
Walletdoc Proprietary Limited ("Walletdoc") | 20 | % | 20 | %
DNI The Company consolidated DNI up until March 31, 2019, as disclosed in Note 2. The Company has retained a 38% interest in DNI and uses the equity method to account for its interest in DNI because it has the ability to exert significant influence over the operations of DNI through its shareholding and board representation. Finbond As of March 31, 2019, the Company owned 267,672,032 shares in Finbond. Finbond is listed on the Johannesburg Stock Exchange and its closing price on March 31, 2019, the last trading day of the quarter, was R4.69 per share. The market value of the Company's holding in Finbond on March 31, 2019, was ZAR 1.3 billion ($86.7 million translated at exchange rates applicable as of March 31, 2019). 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. 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. Summarized below is the movement in equity-accounted investments and loans provided to equity-accounted investments during the nine months ended March 31, 2019:
|  |  |  | Bank |  |  |  |  |  |  |  |  |  |
|  | DNI |  | Frick |  |  | Finbond |  |  | Other(1) |  |  | Total |
Investment in equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2018 | $ | - | $ | 48,129 |  | $ | 30,958 |  | $ | 6,092 |  | $ | 85,179 |
Re-measurement of 8% of DNI (Note 2) |  | 14,849 |  | - |  |  | - |  |  | - |  |  | 14,849 |
Re-measurement of 30% of DNI (Note 2) |  | 59,346 |  | - |  |  | - |  |  | - |  |  | 59,346 |
Acquisition of shares |  | - |  | - |  |  | 1,920 |  |  | 2,989 |  |  | 4,909 |
Stock-based compensation |  | - |  | - |  |  | 77 |  |  | - |  |  | 77 |
Comprehensive income (loss): |  | - |  | (1,895 | ) |  | 7,305 |  |  | (318 | ) |  | 5,092 |
Other comprehensive income |  | - |  | - |  |  | 5,430 |  |  | - |  |  | 5,430 |
Equity accounted earnings (loss) |  | - |  | (1,895 | ) |  | 1,875 |  |  | (318 | ) |  | (338 | )
Share of net income |  | - |  | 616 |  |  | 1,852 |  |  | (318 | ) |  | 2,150 |
Amortization of acquired intangible assets |  | - |  | (562 | ) |  | - |  |  | - |  |  | (562 | )
Deferred taxes on acquired intangible assets |  | - |  | 135 |  |  | - |  |  | - |  |  | 135 |
Dilution resulting from corporate transactions |  | - |  | - |  |  | 23 |  |  | - |  |  | 23 |
Other |  | - |  | (2,084 | ) |  | - |  |  | - |  |  | (2,084 | )
Dividends received |  | - |  | - |  |  | (1,920 | ) |  | (454 | ) |  | (2,374 | )
Return on investment |  | - |  | - |  |  | - |  |  | (284 | ) |  | (284 | )
Deconsolidation of DNI (Note 2) |  | - |  | - |  |  | - |  |  | (242 | ) |  | (242 | )
Foreign currency adjustment(2) |  | - |  | (228 | ) |  | (1,921 | ) |  | (50 | ) |  | (2,199 | )
Balance as of March 31, 2019 | $ | 74,195 | $ | 46,006 |  | $ | 36,419 |  | $ | 7,733 |  | $ | 164,353 |
Investment in loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2018 | $ | - | $ | - |  | $ | - |  | $ | 3,152 |  | $ | 3,152 |
Foreign currency adjustment(2) |  | - |  | - |  |  | - |  |  | (8 | ) |  | (8 | )
Balance as of March 31, 2019 | $ | - | $ | - |  | $ | - |  | $ | 3,144 |  | $ | 3,144 |
|  | Equity |  | Loans |  | Total
Carrying amount as of: |  |  |  |  |  |
June 30, 2018 | $ | 85,179 | $ | 3,152 |  |
Continuing | $ | 84,840 | $ | 3,152 | $ | 87,992
Discontinued (Note 2) | $ | 339 | $ | - | $ | 339
March 31, 2019 | $ | 164,353 | $ | 3,144 | $ | 167,497
(1) Includes primarily OneFi, SmartSwitch Namibia, V2 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 March 31, 2019, and June 30, 2018:
|  | March 31, |  | June 30,
|  | 2019 |  | 2018
Total equity investments | $ | 148,934 | $ | 199,865
Investment in 15% of Cell C, at fair value (Note 7) |  | 121,941 |  | 172,948
Investment in 13% of MobiKwik(1) |  | 26,993 |  | 26,917
Total held to maturity investments |  | 6,992 |  | 10,395
Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes |  | 6,992 |  | 10,395
Long-term portion of payments to agents in South Korea amortized over the contract period |  | 11,714 |  | 17,582
Policy holder assets under investment contracts (Note 10) |  | 596 |  | 610
Reinsurance assets under insurance contracts (Note 10) |  | 644 |  | 633
Other long-term assets |  | 6,023 |  | 5,947
Total other long-term assets | $ | 174,903 | $ | 235,032
(1) The Company has determined that MobiKwik does not have readily determinable fair value and has therefore elected to record 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. During the nine months ended March 31, 2019, the Company paid $1.1 million to subscribe for additional shares in MobiKwik. As of March 31, 2019, the Company owned approximately 13% of MobiKwik's issued share capital. Summarized below are the components of the Company's equity securities without readily determinable fair value and held to maturity investments as of March 31, 2019:
|  |  |  | Unrealized |  | Unrealized |  |
|  |  |  | holding |  | holding |  | Carrying
|  | Cost basis |  | gains |  | losses |  | value
Equity securities: |  |  |  |  |  |  |  |
Investment in MobiKwik | $ | 26,993 | $ | - | $ | - | $ | 26,993
Held to maturity: |  |  |  |  |  |  |  |
Investment in Cedar Cellular notes |  | 6,992 |  | - |  | - |  | 6,992
Total | $ | 33,985 | $ | - | $ | - | $ | 33,985
Summarized below are the components of the Company's held to maturity investments as of June 30, 2018:
|  |  |  | Unrealized |  | Unrealized |  |
|  | Cost |  | holding |  | holding |  | Carrying
|  | basis(1) |  | gains(1) |  | losses |  | value
Held to maturity: |  |  |  |  |  |  |  |
Investment in Cedar Cellular notes | $ | 10,395 | $ | - | $ | - | $ | 10,395
Total | $ | 10,395 | $ | - | $ | - | $ | 10,395
(1) An amount of $1.4 million attributed to interest recognized under the Cedar Cellular note was incorrectly included in the unrealized holding gains column as of June 30, 2018, and has been reclassified to the cost basis column. The Company recognized interest income of $0.6 million, related to the Cedar Cellular notes during each of the three months ended March 31, 2019 and 2018, respectively. The Company recognized interest income of $2.0 million and $0.8 million, related to the Cedar Cellular notes during the nine months ended March 31, 2019 and 2018, respectively. 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 24.82% as of March 31, 2019. The Company does not expect to recover the entire amortized cost basis of the Cedar Cellular notes due to a reduction in the amount of future cash flows expected to be collected from the debt security. The Company does not expect to generate any cash flows from the debt security prior to the maturity date in August 2022, and expects to recover approximately $16.0 million at maturity. The Company has calculated the present value of the expected cash flows to be collected from the debt security by discounting these cash flows at the interest rate implicit in the security upon acquisition (at a rate of 24.82%). The present value of the expected cash flows of $7.0 million is less than the amortized cost basis recorded of $9.6 million (before the March 2019 impairment for the three months ended March 31, 2019) and $12.4 million (before the cumulative 2019 impairments for the nine months ended March 31, 2019). Accordingly, the Company recorded an other-than-temporary impairment related to a credit loss of $2.6 million and $5.4 million during the three and nine months ended March 31, 2019, respectively. The impairment of $2.6 million and $5.4 million is included in interest income, net of impairment in the unaudited condensed consolidated statement of operations for the three and nine months ended March 31, 2019, respectively. Contractual maturities of held to maturity investments Summarized below is the contractual maturity of the Company's held to maturity investment as of March 31, 2019:
|  |  |  | Estimated |
|  | Cost |  | fair |
|  | basis |  | value(1) |
Due in one year or less | $ | - | $ | - |
Due in one year through five years |  | 6,992 |  | 6,992 |
Due in five years through ten years |  | - |  | - |
Due after ten years |  | - |  | - |
Total | $ | 6,992 | $ | 6,992 |
(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.

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- 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
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