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Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net

6 Months Ended

Dec. 31, 2020

Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract]

Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net

3. Accounts receivable, net and other receivables and finance loans receivable, net

Accounts receivable, net and other receivables

The Company’s accounts receivable, net, and other receivables as of December 31, 2020, and June 30, 2020, are presented in the table below:

		December 31,		June 30,
		2020		2020

Accounts receivable, trade, net		$	10,288	$	8,458
Accounts receivable, trade, gross			10,647		8,711
Allowance for doubtful accounts receivable, end of period			359		253
	Beginning of period		253		661
	Reversed to statement of operations		-		(155)
	Charged to statement of operations		70		181
	Utilized		(11)		(151)
	Deconsolidation		-		(178)
	Foreign currency adjustment		47		(105)

Taxes refundable related to sale of Net1 Korea			-		19,796
Loans provided to Carbon			3,000		3,000
Current portion of amount outstanding related to sale of remaining interest in DNI			-		2,756
Other receivables			11,159		9,058
	Total accounts receivable, net and other receivables	$	24,447	$	43,068

In January 2020, the Company agreed that the purchaser of Net1 Korea would withhold potential capital gains taxes of approximately $19.8 million (KRW 23.8 billion) from the Net1 Korea transaction price and pay such amounts, on behalf of Net1 BV, to the South Korean tax authorities. Net1 BV commenced a process to claim a refund from the South Korean tax authorities of the potential amount withheld and received this amount of approximately $20.1 million (KRW 23.8 billion) in September 2020.

On October 26, 2020, DNI settled the full amount outstanding of $5.7 million related to sale of the remaining interest in DNI, including the amounts included in other long-term assets, refer to Note 6. The Company received $0.3 million on September 30, 2020, for total receipts of $6.0 million.

Other receivables include prepayments, deposits and other receivables.

Finance loans receivable, net

The Company’s finance loans receivable, net, as of December 31, 2020, and June 30, 2020, is presented in the table below:

		December 31,		June 30,
		2020		2020

Microlending finance loans receivable, net		$	21,620	$	15,879
Microlending finance loans receivable, gross			24,017		17,737
Allowance for doubtful finance loans receivable, end of period			2,397		1,858
	Beginning of period		1,858		3,199
	Reversed to statement of operations		(557)		(492)
	Charged to statement of operations		1,105		1,211
	Utilized		(369)		(1,451)
	Foreign currency adjustment		360		(609)


Working capital finance loans receivable, gross			-		5,800
Allowance for doubtful finance loans receivable, end of period			-		5,800
	Beginning of period		5,800		5,800
	Utilized		(5,800)		-

	Total accounts receivable, net	$	21,620	$	15,879

Gross microlending finance loans receivable as of December 31, 2020, increased compared to June 30, 2020, following subdued lending activity due to COVID-19 restrictions in April and early May 2020. The Company was unable to originate any significant loans in April and early May 2020.

3. Accounts receivable, net and other receivables and finance loans receivable, net (continued)

Finance loans receivable, net (continued)

The Company created an allowance for doubtful working capital finance receivables related to a receivable due from a customer based in the United States during the year ended June 30, 2018. The Company commenced legal proceedings against the customer in 2018. The customer is engaged in bankruptcy proceedings. In December 2020, the Company withdrew its claim lodged in the bankruptcy proceedings because it does not believe it will recover the receivable via these proceedings, or via any other process. In December 2020, the Company utilized the entire allowance for doubtful working capital finance receivables against the outstanding receivable.