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Operating Segments | 9 Months Ended
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Mar. 31, 2019
Operating Segments [Abstract] |
Operating Segments | 18. Operating segments The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets or reports material revenues. A description of the Company's operating segments is contained in Note 22 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. As discussed in Note 2, the Company has presented DNI as a discontinued operation. The reconciliation of the reportable segment's revenue to revenue from external customers for the three months ended March 31, 2019 and 2018, is as follows:
| Revenue
|  |  |  |  |  | From
|  | Reportable |  | Inter- |  | external
|  | Segment |  | segment |  | customers
South African transaction processing | $ | 17,374 | $ | 1,300 | $ | 16,074
International transaction processing |  | 34,358 |  | - |  | 34,358
Financial inclusion and applied technologies |  | 36,650 |  | 598 |  | 36,052
Total for the three months ended March 31, 2019 | $ | 88,382 | $ | 1,898 | $ | 86,484
South African transaction processing | $ | 73,508 | $ | 7,429 | $ | 66,079
International transaction processing |  | 46,240 |  | - |  | 46,240
Financial inclusion and applied technologies |  | 59,574 |  | 9,172 |  | 50,402
Total for the three months ended March 31, 2018 | $ | 179,322 | $ | 16,601 | $ | 162,721
The reconciliation of the reportable segment's revenue to revenue from external customers for the nine months ended March 31, 2019 and 2018, is as follows:
| Revenue
|  |  |  |  |  | From
|  | Reportable |  | Inter- |  | external
|  | Segment |  | segment |  | customers
South African transaction processing | $ | 77,093 | $ | 5,753 | $ | 71,340
International transaction processing |  | 111,869 |  | - |  | 111,869
Financial inclusion and applied technologies |  | 128,611 |  | 2,302 |  | 126,309
Total for the nine months ended March 31, 2019 | $ | 317,573 | $ | 8,055 | $ | 309,518
South African transaction processing | $ | 204,093 | $ | 19,755 | $ | 184,338
International transaction processing |  | 136,447 |  | - |  | 136,447
Financial inclusion and applied technologies |  | 168,018 |  | 25,108 |  | 142,910
Total for the nine months ended March 31, 2018 | $ | 508,558 | $ | 44,863 | $ | 463,695
The Company does not allocate interest income, interest expense or income tax expense to its reportable segments. The Company evaluates segment performance based on segment operating income before acquisition-related intangible asset amortization which represents operating income before acquisition-related intangible asset amortization and allocation of expenses allocated to Corporate/Eliminations, all under GAAP. The reconciliation of the reportable segments measures of profit or loss to income before income taxes for the three and nine months ended March 31, 2019 and 2018, is as follows:
|  | Three months ended |  |  | Nine months ended |
|  | March 31, |  |  | March 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Reportable segments measure of profit or loss | $ | (7,818 | ) | $ | 12,795 |  | $ | (31,678 | ) | $ | 65,579 |
Operating income: Corporate/Eliminations |  | (13,865 | ) |  | (5,231 | ) |  | (32,184 | ) |  | (16,702 | )
Change in fair value of equity securities |  | (26,263 | ) |  | 37,843 |  |  | (42,099 | ) |  | 37,843 |
Loss on disposal of DNI |  | (5,140 | ) |  | - |  |  | (5,140 | ) |  | - |
Interest income, net of impairment |  | (959 | ) |  | 5,154 |  |  | 586 |  |  | 14,903 |
Interest expense |  | (3,493 | ) |  | (2,426 | ) |  | (9,030 | ) |  | (6,872 | )
(Loss) Income before income taxes | $ | (57,538 | ) | $ | 48,135 |  | $ | (119,545 | ) | $ | 94,751 |
The following tables summarize segment information that is prepared in accordance with GAAP for the three and nine months ended March 31, 2019 and 2018, with the impact of the deconsolidation of DNI included in discontinued operations:
|  | Three months ended |  |  | Nine months ended |
|  | March 31, |  |  | March 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |
South African transaction processing | $ | 17,374 |  | $ | 73,508 |  | $ | 77,093 |  | $ | 204,093 |
International transaction processing |  | 34,358 |  |  | 46,240 |  |  | 111,869 |  |  | 136,447 |
Financial inclusion and applied technologies |  | 36,650 |  |  | 59,574 |  |  | 128,611 |  |  | 168,018 |
Continuing |  | 18,808 |  |  | 59,574 |  |  | 72,274 |  |  | 168,018 |
Discontinued |  | 17,842 |  |  | - |  |  | 56,337 |  |  | - |
Total |  | 88,382 |  |  | 179,322 |  |  | 317,573 |  |  | 508,558 |
Continuing |  | 70,540 |  |  | 179,322 |  |  | 261,236 |  |  | 508,558 |
Discontinued |  | 17,842 |  |  | - |  |  | 56,337 |  |  | - |
Operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |
South African transaction processing(1) |  | (12,954 | ) |  | 12,719 |  |  | (28,297 | ) |  | 38,521 |
International transaction processing |  | 1,909 |  |  | (14,892 | ) |  | 628 |  |  | (14,567 | )
Financial inclusion and applied technologies(1) |  | 3,227 |  |  | 14,968 |  |  | (4,009 | ) |  | 41,625 |
Continuing(1) |  | (4,911 | ) |  | 14,968 |  |  | (28,409 | ) |  | 41,625 |
Discontinued |  | 8,138 |  |  | - |  |  | 24,400 |  |  | - |
Subtotal: Operating segments |  | (7,818 | ) |  | 12,795 |  |  | (31,678 | ) |  | 65,579 |
Corporate/Eliminations |  | (13,865 | ) |  | (5,231 | ) |  | (32,184 | ) |  | (16,702 | )
Continuing |  | (6,399 | ) |  | (5,231 | ) |  | (19,465 | ) |  | (16,702 | )
Discontinued |  | (7,466 | ) |  | - |  |  | (12,719 | ) |  | - |
Total(1) |  | (21,683 | ) |  | 7,564 |  |  | (63,862 | ) |  | 48,877 |
Continuing(1) |  | (22,355 | ) |  | 7,564 |  |  | (75,543 | ) |  | 48,877 |
Discontinued |  | 672 |  |  | - |  |  | 11,681 |  |  | - |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |
South African transaction processing |  | 914 |  |  | 1,236 |  |  | 2,776 |  |  | 3,476 |
International transaction processing |  | 2,367 |  |  | 4,668 |  |  | 7,937 |  |  | 13,681 |
Financial inclusion and applied technologies |  | 616 |  |  | 398 |  |  | 1,657 |  |  | 1,062 |
Continuing |  | 349 |  |  | 398 |  |  | 1,044 |  |  | 1,062 |
Discontinued |  | 267 |  |  | - |  |  | 613 |  |  | - |
Subtotal: Operating segments |  | 3,897 |  |  | 6,302 |  |  | 12,370 |  |  | 18,219 |
Corporate/Eliminations |  | 5,984 |  |  | 3,039 |  |  | 18,158 |  |  | 8,811 |
Continuing |  | 3,824 |  |  | 3,039 |  |  | 10,745 |  |  | 8,811 |
Discontinued |  | 2,160 |  |  | - |  |  | 7,413 |  |  | - |
Total |  | 9,881 |  |  | 9,341 |  |  | 30,528 |  |  | 27,030 |
Continuing |  | 7,454 |  |  | 9,341 |  |  | 22,502 |  |  | 27,030 |
Discontinued |  | 2,427 |  |  | - |  |  | 8,026 |  |  | - |
Expenditures for long-lived assets |  |  |  |  |  |  |  |  |  |  |  |
South African transaction processing |  | 434 |  |  | 1,794 |  |  | 2,767 |  |  | 3,171 |
International transaction processing |  | 712 |  |  | 1,990 |  |  | 2,353 |  |  | 3,788 |
Financial inclusion and applied technologies |  | 469 |  |  | 441 |  |  | 2,160 |  |  | 842 |
Continuing |  | 61 |  |  | 441 |  |  | 1,429 |  |  | 842 |
Discontinued |  | 408 |  |  | - |  |  | 731 |  |  | - |
Subtotal: Operating segments |  | 1,615 |  |  | 4,225 |  |  | 7,280 |  |  | 7,801 |
Corporate/Eliminations |  | - |  |  | - |  |  | - |  |  | - |
Total |  | 1,615 |  |  | 4,225 |  |  | 7,280 |  |  | 7,801 |
Continuing |  | 1,207 |  |  | 4,225 |  |  | 6,549 |  |  | 7,801 |
Discontinued | $ | 408 |  | $ | $- |  | $ | 731 |  | $ | $- |
(1) South African transaction processing and Financial inclusion and applies technologies include retrenchment costs for the three months ended March 31, 2019 of: $2,972 (nine months: $3,673) and $1,570 (nine months: $1,570), respectively, for total retrenchment costs for the three months of $4,542 (nine months: $5,243). The retrenchment costs are included in selling, general and administration expense on the unaudited condensed consolidated statement of operations for the three and nine months ended March 31, 2019. The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented. It is impractical to disclose revenues from external customers for each product and service or each group of similar products and services.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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