21. Discontinued operation - DNI

The Company determined that the disposal of its controlling interest in DNI is a discontinued operation because it represented a strategic shift that will have a major effect on the Company's operations and financial results as a result of the sale of a significant portion of its investment in DNI. Refer to Note 3 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 the deconsolidation of DNI. The table below presents the impact of the deconsolidation of DNI on certain major captions to the Company's unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows for three months ended September 30, 2019 and 2018, that have not been separately presented on those statements:


DNI
		Three months
		ended
		September 30,
		2018
Unaudited condensed consolidated statement of operations
Discontinued:
Revenue	$	18,787
Cost of goods sold, IT processing, servicing and support		10,211
Selling, general and administration		457
Depreciation and amortization		2,936
Operating income		5,182
Interest income		275
Interest expense		201
Net income before tax		5,256
Income tax expense		1,515
Net income before earnings from equity-accounted investments		3,741
Earnings from equity-accounted investments⁽¹⁾	$	(102	)
Unaudited condensed consolidated statement of cash flows
Discontinued:
Total net cash (used in) provided by operating activities	$	(3,518	)
Total net cash (used in) provided by investing activities		(139	)

(1) Earnings from equity-accounted investments for the three months ended September 30, 2018, represents earnings attributed to equity-accounted investment owned by DNI and included in the Company's results as a result of the consolidation of DNI.

The Company retained a continuing involvement in DNI through its 30% interest in DNI (refer to Note 6). The Company expects to retain an interest in DNI for less than 12 months. The Company recorded earnings under the equity method related to its retained investment in DNI during the three months ended June 30, 2019, refer to Note 6. The table below presents revenues and expenses between the Company and DNI, after the DNI disposal transaction, during the three months ended September 30, 2019:


		Three months
		ended
		September 30,
		2019
Revenue generated from transactions with DNI	$	-
Expenses incurred related to transactions with DNI	$	2,274

Refer to Note 6 for the dividends received from DNI under the equity method during the three months ended September 30, 2019.