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Equity-Accounted Investments And Other Long-Term Assets | 3 Months Ended
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Sep. 30, 2019
Equity-Accounted Investments And Other Long-Term Assets [Abstract] |
Equity-Accounted Investments And Other Long-Term Assets | 6. 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, 2019, 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, 2019 and June 30, 2019, was as follows:
| September |  | June 30, |
| 30, 2019 |  | 2019 |
Bank Frick & Co AG ("Bank Frick") | 35 | % | 35 | %
DNI | 30 | % | 30 | %
Finbond Group Limited ("Finbond") | 29 | % | 29 | %
Carbon Tech Limited ("Carbon"), formerly OneFi Limited | 25 | % | 25 | %
SmartSwitch Namibia (Pty) Ltd ("SmartSwitch Namibia") | 50 | % | 50 | %
V2 Limited ("V2") | 50 | % | 50 | %
Walletdoc Proprietary Limited ("Walletdoc") | 20 | % | 20 | %
DNI During the three months ended September 30, 2019, the Company recorded earnings from DNI that resulted in the carrying value of DNI exceeding the amount that the Company could receive pursuant to the call option granted to DNI in May 2019. The Company has recorded an impairment loss of $0.3 million which represents the difference between the amount that the Company could receive pursuant to the call option and DNI's carrying value. Bank Frick On October 2, 2019, the Company exercised its option to acquire an additional 35% interest in Bank Frick from the Frick Foundation. The Company will pay an amount, the "Option Price Consideration", for the additional 35% interest in Bank Frick, which represents the higher of CHF 46.4 million ($46.5 million at exchange rates on October 2, 2019) or 35% of 15 times the average annual normalized net income of the Bank over the two years ended December 31, 2018. The shares will only transfer on payment of the Option Price Consideration, which shall occur on the later of (i) 180 days after the date of exercise of the option; (ii) in the event of any regulatory approvals being required, 10 days after receipt of approval (either unconditionally or on terms acceptable to both parties); and (iii) 10 days after the date on which the Option Price Consideration is agreed or finally determined. Finbond As of September 30, 2019, the Company owned 268,820,933 shares in Finbond representing approximately 29.0% of its issued and outstanding ordinary shares. Finbond is listed on the Johannesburg Stock Exchange and its closing price on September 30, 2019, the last trading day of the month, was ZAR 3.34 per share. The market value of the Company's holding in Finbond on September 30, 2019, was ZAR 0.9 billion ($59.2 million translated at exchange rates applicable as of September 30, 2019). On August 2, 2019, the Company, pursuant to its election, received an additional 1,148,901 shares in Finbond as a capitalization share issue in lieu of a dividend. V2 Limited In August 2019, the Company made a further equity contribution of $1.3 million to V2 Limited ("V2"). The Company has committed to provide V2 with a further equity contribution of $1.3 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 three months ended September 30, 2019:
|  |  |  |  | Bank |  |  |  |  |  |  |  |  |  |
|  | DNI |  |  | Frick |  |  | Finbond |  |  | Other(1) |  |  | Total |
Investment in equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2019 | $ | 61,030 |  | $ | 47,240 |  | $ | 35,300 |  | $ | 7,398 |  | $ | 150,968 |
Acquisition of shares |  | - |  |  | - |  |  | 274 |  |  | 1,250 |  |  | 1,524 |
Stock-based compensation |  | - |  |  | - |  |  | 71 |  |  | - |  |  | 71 |
Comprehensive income (loss): |  | 728 |  |  | (25 | ) |  | 2,718 |  |  | (131 | ) |  | 3,290 |
Other comprehensive income |  | - |  |  | - |  |  | 2,227 |  |  | - |  |  | 2,227 |
Equity accounted earnings (loss) |  | 728 |  |  | (25 | ) |  | 491 |  |  | (131 | ) |  | 1,063 |
Share of net income |  | 1,463 |  |  | 119 |  |  | 491 |  |  | (131 | ) |  | 1,942 |
Amortization of acquired intangible assets |  | (647 | ) |  | (189 | ) |  | - |  |  | - |  |  | (836 | )
Deferred taxes on acquired intangible assets |  | 181 |  |  | 45 |  |  | - |  |  | - |  |  | 226 |
Dilution resulting from corporate transactions |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Impairment |  | (269 | ) |  | - |  |  | - |  |  | - |  |  | (269 | )
Dividends received |  | (729 | ) |  | - |  |  | (274 | ) |  | (339 | ) |  | (1,342 | )
Foreign currency adjustment(2) |  | (4,357 | ) |  | (868 | ) |  | (2,519 | ) |  | (71 | ) |  | (7,815 | )
Balance as of September 30, 2019 | $ | 56,672 |  | $ | 46,347 |  | $ | 35,570 |  | $ | 8,107 |  | $ | 146,696 |
Investment in loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2019 | $ | - |  | $ | - |  | $ | - |  | $ | 148 |  | $ | 148 |
Foreign currency adjustment(2) |  | - |  |  | - |  |  | - |  |  | (11 | ) |  | (11 | )
Balance as of September 30, 2019
|  | Equity |  | Loans |  | Total
Carrying amount as of: |  |  |  |  |  |
June 30, 2019 | $ | 150,968 | $ | 148 |  | 151,116
September 30, 2019 | $ | 146,696 | $ | 137 | $ | 146,833
(1) Includes Carbon, 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 September 30, 2019, and June 30, 2019:
|  | September 30, |  | June 30,
|  | 2019 |  | 2019
Total equity investments | $ | 26,993 | $ | 26,993
Investment in 15% of Cell C, at fair value (Note 5) |  | - |  | -
Investment in 13% of MobiKwik |  | 26,993 |  | 26,993
Total held to maturity investments |  | - |  | -
Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes |  | - |  | -
Long-term portion of payments to agents in South Korea amortized over the contract period |  | 7,700 |  | 9,564
Policy holder assets under investment contracts (Note 8) |  | 538 |  | 619
Reinsurance assets under insurance contracts (Note 8) |  | 1,053 |  | 1,163
Other long-term assets |  | 5,717 |  | 5,850
Total other long-term assets | $ | 42,001 | $ | 44,189
Summarized below are the components of the Company's equity securities without readily determinable fair value and held to maturity investments as of September 30, 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(A) |  | - |  | - | - |  | -
Total | $ | 26,993 |  | $- | $- | $ | 26,993
(A) The notes have been impaired as discussed in the 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, 2019. Summarized below are the components of the Company's equity securities without readily determinable fair value and held to maturity investments as of June 30, 2019:
|  |  |  | Unrealized |  | Unrealized |  | Carrying
|  | Cost basis |  | holding gains |  | holding losses |  | value
Equity securities: |  |  |  |  |  |  |  |
Investment in MobiKwik | $ | 26,993 | $ | - | $ | - | $ | 26,993
Held to maturity: |  |  |  |  |  |  |  |
Investment in Cedar Cellular notes |  | - |  | - |  | - |  | -
Total | $ | 26,993 | $ | - | $ | - | $ | 26,993
No interest income from the Cedar Cellular note was recorded during the three months ended September 30, 2019. Interest income of $0.2 million related to the investment in Cedar Cellular notes for the three months ended September 30, 2018, 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. 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, 2019:
|  |  |  | Estimated
|  | Cost |  | fair
|  | basis |  | value(1)
Due in one year or less | $ | - | $ | -
Due in one year through five years(2) |  | - |  | -
Due in five years through ten years |  | - |  | -
Due after ten years |  | - |  | -
Total | $ | - | $ | -
(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. (2) The cost basis is zero ($0.0 million).

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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