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Discontinued Operations

3 Months Ended

Sep. 30, 2020

Discontinued Operations [Abstract]

Discontinued Operations

20.Discontinued operations

Following the disposal of its controlling interest in Net1 Korea (in fiscal 2020) and DNI (in fiscal 2019), the Company determined that Net1 Korea and DNI should be classified as discontinued operations because the disposals of these businesses represented a strategic shift that would have a major effect on the Company’s operations and financial results. 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, 2020, for additional information regarding the deconsolidation of Net1 Korea and DNI.

20.Discontinued operations (continued)

The table below presents 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, that have not been separately presented on those statements, related to the presentation of Net1 Korea as a discontinued operation:

		Net1 Korea
				Three months ended
				September 30, 2019
		Unaudited condensed consolidated statement of operations
		Discontinued:
		Revenue		$	32,818
		Cost of goods sold, IT processing, servicing and support			14,366
		Selling, general and administration			11,309
		Depreciation and amortization			3,441
		Operating income			3,702
		Interest income			288
		Interest expense			8
		Net income before tax			3,982
		Income tax expense			1,047
		Net income from discontinued operations		$	2,935
		Unaudited condensed consolidated statement of cash flows
		Discontinued:
		Total net cash provided by operating activities		$	10,194
		Total net cash provided by investing activities		$	3,088

The Company retained a continuing involvement in DNI following the disposal of the Company’s controlling interest during the year ended June 30, 2019. The Company recorded earnings under the equity method related to its retained investment in DNI during the three months ended September 30, 2019. 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

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

The Company received dividends of $0.7 million from DNI during the three months ended September 30, 2019.