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v3.20.1

Operating Segments | 9 Months Ended
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Mar. 31, 2020
Operating Segments [Abstract] |
Operating Segments | 19. Operating segment s 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 21 to the Company’s audited consolidated financial stat ements included in its Annual Report on Form 10-K for the year ended June 30, 2019. As discussed in Note 2, the Company has presented Net1 Korea and DNI as discontinued operations. The reconciliation of the reportable segme nt’s revenue to revenue from external customers for the three months ended March 31, 2020 and 2019, is as follows:
|  |  |  |  |  |  |  | Revenue |
|  |  |  |  |  |  |  | Reportable Segment |  |  | Inter-segment |  |  | From external customers |
| South African transaction processing |  |  | $ | 19 883 |  | $ | 2 071 |  | $ | 17 812 |
| International transaction processing |  |  |  | 20 608 |  |  | - |  |  | 20 608 |
|  | Continuing |  |  |  | 1 564 |  |  | - |  |  | 1 564 |
|  | Discontinued |  |  |  | 19 044 |  |  | - |  |  | 19 044 |
| Financial inclusion and applied technologies |  |  |  | 17 651 |  |  | 513 |  |  | 17 138 |
|  | Total for the three months ended March 31, 2020 |  |  |  | 58 142 |  |  | 2 584 |  |  | 55 558 |
|  |  | Continuing |  |  |  | 39 098 |  |  | 2 584 |  |  | 36 514 |
|  |  | Discontinued |  |  | $ | 19 044 |  | $ | - |  | $ | 19 044 |
| South African transaction processing |  |  | $ | 17 374 |  | $ | 1 300 |  | $ | 16 074 |
| International transaction processing |  |  |  | 34 358 |  |  | - |  |  | 34 358 |
|  | Continuing |  |  |  | 2 302 |  |  | - |  |  | 2 302 |
|  | Discontinued |  |  |  | 32 056 |  |  | - |  |  | 32 056 |
| Financial inclusion and applied technologies |  |  |  | 36 650 |  |  | 598 |  |  | 36 052 |
|  | Continuing |  |  |  | 18 808 |  |  | 598 |  |  | 18 210 |
|  | Discontinued |  |  |  | 17 842 |  |  | - |  |  | 17 842 |
|  |  | Total for the three months ended March 31, 2019 |  |  |  | 88 382 |  |  | 1 898 |  |  | 86 484 |
|  |  |  | Continuing |  |  |  | 38 484 |  |  | 1 898 |  |  | 36 586 |
|  |  |  | Discontinued |  |  | $ | 49 898 |  | $ | - |  | $ | 49 898 |
19. Operating segments (continued) The reconciliation of the reportable segment’s revenue to revenue from external customers for the nine months ended March 31, 2020 and 2019, is as follows:
|  |  |  |  |  |  |  | Revenue |
|  |  |  |  |  |  |  | Reportable Segment |  | Inter-segment |  | From external customers |
| South African transaction processing |  |  | $ | 59 632 |  | $ | 6 450 |  | $ | 53 182 |
| International transaction processing |  |  |  | 88 988 |  |  | - |  |  | 88 988 |
|  | Continuing |  |  |  | 3 613 |  |  | - |  |  | 3 613 |
|  | Discontinued |  |  |  | 85 375 |  |  | - |  |  | 85 375 |
| Financial inclusion and applied technologies |  |  |  | 69 782 |  |  | 1 558 |  |  | 68 224 |
|  | Total for the nine months ended March 31, 2020 |  |  |  | 218 402 |  |  | 8 008 |  |  | 210 394 |
|  |  | Continuing |  |  |  | 133 027 |  |  | 8 008 |  |  | 125 019 |
|  |  | Discontinued |  |  | $ | 85 375 |  | $ | - |  | $ | 85 375 |
| South African transaction processing |  |  | $ | 77 093 |  | $ | 5 753 |  | $ | 71 340 |
| International transaction processing |  |  |  | 111 869 |  |  | - |  |  | 111 869 |
|  | Continuing |  |  |  | 7 862 |  |  | - |  |  | 7 862 |
|  | Discontinued |  |  |  | 104 007 |  |  | - |  |  | 104 007 |
| Financial inclusion and applied technologies |  |  |  | 128 611 |  |  | 2 302 |  |  | 126 309 |
|  | Continuing |  |  |  | 72 274 |  |  | 2 302 |  |  | 69 972 |
|  | Discontinued |  |  |  | 56 337 |  |  | - |  |  | 56 337 |
|  |  | Total for the nine months ended March 31, 2019 |  |  |  | 317 573 |  |  | 8 055 |  |  | 309 518 |
|  |  |  | Continuing |  |  |  | 157 229 |  |  | 8 055 |  |  | 149 174 |
|  |  |  | Discontinued |  |  | $ | 160 344 |  | $ | - |  | $ | 160 344 |
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 los s to income before income taxes for the three and nine months ended March 31, 2020 and 2019, is as follows:
|  |  |  |  | Three months ended |  |  | Nine months ended |
|  |  |  |  | March 31, |  |  | March 31, |
|  |  |  |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
| Reportable segments measure of profit or loss | $ | (10 010) |  | $ | (7 818) |  | $ | (9 152) |  | $ | (31 678) |
|  | Less: Discontinued operations: reportable segments measure of profit or loss |  | (2 753) |  |  | (11 986) |  |  | (14 568) |  |  | (38 796) |
|  | Continuing operations: reportable segments measure of profit or loss |  | (12 763) |  |  | (19 804) |  |  | (23 720) |  |  | (70 474) |
|  | Continuing operations : Operating income - Corporate/Eliminations |  | (1 449) |  |  | (3 972) |  |  | (7 348) |  |  | (12 102) |
|  | Change in fair value of equity securities |  | - |  |  | (26 263) |  |  | - |  |  | (42 099) |
|  | Gain on disposal of FIHRST |  | - |  |  | - |  |  | 9 743 |  |  | - |
|  | Interest income |  | 570 |  |  | 1 204 |  |  | 2 015 |  |  | 4 436 |
|  | Interest expense |  | (1 886) |  |  | (3 092) |  |  | (6 362) |  |  | (8 201) |
|  | Impairment of Cedar Cellular Note |  | - |  |  | (2 622) |  |  | - |  |  | (5 354) |
|  |  | Loss before income taxes | $ | (15 528) |  | $ | (54 549) |  | $ | (25 672) |  | $ | (133 794) |
19. Operating segment s (continued) The following tables summarize segment information that is prepared in accordance with GAAP for the three and nine months ended March 31, 2020 and 2019, with the impact of the deconsolidation of Net1 Korea and DNI included in discontinued operations:
|  |  |  |  |  |  |  |  |  | Three months ended |  |  | Nine months ended |
|  |  |  |  |  |  |  |  |  | March 31, |  |  | March 31, |
|  |  |  |  |  |  |  |  |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
| Revenues |  |  |  |  |  |  |  |  |  |  |  |
|  | South African transaction processing | $ | 19 883 |  | $ | 17 374 |  | $ | 59 632 |  | $ | 77 093 |
|  | International transaction processing |  | 20 608 |  |  | 34 358 |  |  | 88 988 |  |  | 111 869 |
|  |  |  | Continuing |  | 1 564 |  |  | 2 302 |  |  | 3 613 |  |  | 7 862 |
|  |  |  | Discontinued |  | 19 044 |  |  | 32 056 |  |  | 85 375 |  |  | 104 007 |
|  | Financial inclusion and applied technologies |  | 17 651 |  |  | 36 650 |  |  | 69 782 |  |  | 128 611 |
|  |  |  | Continuing |  | 17 651 |  |  | 18 808 |  |  | 69 782 |  |  | 72 274 |
|  |  |  | Discontinued |  | - |  |  | 17 842 |  |  | - |  |  | 56 337 |
|  |  |  |  |  | Total |  | 58 142 |  |  | 88 382 |  |  | 218 402 |  |  | 317 573 |
|  |  |  |  |  |  |  | Continuing |  | 39 098 |  |  | 38 484 |  |  | 133 027 |  |  | 157 229 |
|  |  |  |  |  |  |  | Discontinued |  | 19 044 |  |  | 49 898 |  |  | 85 375 |  |  | 160 344 |
| Operating (loss) income |  |  |  |  |  |  |  |  |  |  |  |
|  | South African transaction processing (1) |  | (8 668) |  |  | (12 954) |  |  | (15 034) |  |  | (28 297) |
|  | International transaction processing |  | (415) |  |  | 1 909 |  |  | 6 186 |  |  | 628 |
|  |  |  | Continuing |  | (3 168) |  |  | (1 939) |  |  | (8 382) |  |  | (13 768) |
|  |  |  | Discontinued |  | 2 753 |  |  | 3 848 |  |  | 14 568 |  |  | 14 396 |
|  | Financial inclusion and applied technologies(1) |  | (927) |  |  | 3 227 |  |  | (304) |  |  | (4 009) |
|  |  |  | Continuing (1) |  | (927) |  |  | (4 911) |  |  | (304) |  |  | (28 409) |
|  |  |  | Discontinued |  | - |  |  | 8 138 |  |  | - |  |  | 24 400 |
|  |  |  |  | Subtotal: Operating segments |  | (10 010) |  |  | (7 818) |  |  | (9 152) |  |  | (31 678) |
|  |  |  |  | Corporate/Eliminations |  | (2 686) |  |  | (13 865) |  |  | (13 132) |  |  | (32 184) |
|  |  |  |  |  | Continuing |  | (1 449) |  |  | (3 972) |  |  | (7 348) |  |  | (12 102) |
|  |  |  |  |  | Discontinued |  | (1 237) |  |  | (9 893) |  |  | (5 784) |  |  | (20 082) |
|  |  |  |  |  |  | Total (1) |  | (12 696) |  |  | (21 683) |  |  | (22 284) |  |  | (63 862) |
|  |  |  |  |  |  |  | Continuing (1) |  | (14 212) |  |  | (23 776) |  |  | (31 068) |  |  | (82 576) |
|  |  |  |  |  |  |  | Discontinued |  | 1 516 |  |  | 2 093 |  |  | 8 784 |  |  | 18 714 |
| Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |
|  | South African transaction processing |  | 631 |  |  | 914 |  |  | 1 956 |  |  | 2 776 |
|  | International transaction processing |  | 917 |  |  | 2 367 |  |  | 4 294 |  |  | 7 937 |
|  |  |  | Continuing |  | 125 |  |  | 106 |  |  | 391 |  |  | 256 |
|  |  |  | Discontinued |  | 792 |  |  | 2 261 |  |  | 3 903 |  |  | 7 681 |
|  | Financial inclusion and applied technologies |  | 329 |  |  | 616 |  |  | 1 096 |  |  | 1 657 |
|  |  |  | Continuing |  | 329 |  |  | 349 |  |  | 1 096 |  |  | 1 044 |
|  |  |  | Discontinued |  | - |  |  | 267 |  |  | - |  |  | 613 |
|  |  |  |  | Subtotal: Operating segments |  | 1 877 |  |  | 3 897 |  |  | 7 346 |  |  | 12 370 |
|  |  |  |  | Corporate/Eliminations |  | 1 280 |  |  | 5 984 |  |  | 4 957 |  |  | 18 158 |
|  |  |  |  |  | Continuing |  | 68 |  |  | 1 973 |  |  | 208 |  |  | 5 008 |
|  |  |  |  |  | Discontinued |  | 1 212 |  |  | 4 011 |  |  | 4 749 |  |  | 13 150 |
|  |  |  |  |  |  | Total |  | 3 157 |  |  | 9 881 |  |  | 12 303 |  |  | 30 528 |
|  |  |  |  |  |  |  | Continuing |  | 1 153 |  |  | 3 342 |  |  | 3 651 |  |  | 9 084 |
|  |  |  |  |  |  |  | Discontinued |  | 2 004 |  |  | 6 539 |  |  | 8 652 |  |  | 21 444 |
| Expenditures for long-lived assets |  |  |  |  |  |  |  |  |  |  |  |
|  | South African transaction processing |  | 44 |  |  | 434 |  |  | 2 065 |  |  | 2 767 |
|  | International transaction processing |  | 985 |  |  | 712 |  |  | 2 278 |  |  | 2 353 |
|  |  |  | Continuing |  | 488 |  |  | 32 |  |  | 775 |  |  | 343 |
|  |  |  | Discontinued |  | 497 |  |  | 680 |  |  | 1 503 |  |  | 2 010 |
|  | Financial inclusion and applied technologies |  | 13 |  |  | 469 |  |  | 150 |  |  | 2 160 |
|  |  |  | Continuing |  | 13 |  |  | 61 |  |  | 150 |  |  | 1 429 |
|  |  |  | Discontinued |  | - |  |  | 408 |  |  | - |  |  | 731 |
|  |  |  |  | Subtotal: Operating segments |  | 1 042 |  |  | 1 615 |  |  | 4 493 |  |  | 7 280 |
|  |  |  |  | Corporate/Eliminations |  | - |  |  | - |  |  | - |  |  | - |
|  |  |  |  |  |  | Total |  | 1 042 |  |  | 1 615 |  |  | 4 493 |  |  | 7 280 |
|  |  |  |  |  |  |  | Continuing |  | 545 |  |  | 527 |  |  | 2 990 |  |  | 4 539 |
|  |  |  |  |  |  |  | Discontinued | $ | 497 |  | $ | 1 088 |  | $ | 1 503 |  | $ | 2 741 |
19. Operating segment s (continued) (1) South African transaction processing and Financial inclusion and applie d 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 o ne, 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.

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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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