XML 34 R11.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net | 12 Months Ended
--- | ---
Jun. 30, 2022
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract] |
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net | 4. 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 June 30, 2022, and June 30, 2021, are presented in the table below:
|  |  |  |  | June 30, |  | June 30,
|  |  |  |  | 2022 |  | 2021
| Accounts receivable, trade, net | $ |  | 13,904 |  |  | $ |  | 10,493 |
| Accounts receivable, trade, gross |  |  | 14,413 |  |  |  |  | 10,760 |
| Allowance for doubtful accounts receivable, end of period |  |  | 509 |  |  |  |  | 267 |
|  | Beginning of period |  |  | 267 |  |  |  |  | 253 |
|  | Reversed to statement of operations |  |  | (133) |  |  |  |  | (182) |
|  | Charged to statement of operations |  |  | 779 |  |  |  |  | 232 |
|  | Utilized |  |  | (154) |  |  |  |  | (59) |
|  | Foreign currency adjustment |  |  | (250) |  |  |  |  | 23 |
| Current portion of amount outstanding related to sale of interest in Bank Frick (Note 9) |  |  | - |  |  |  |  | 7,500 |
| Loans provided to Carbon, net of allowance: 2022: $3,000; 2021: $3,000 |  |  | - |  |  |  |  | - |
| Current portion of total held to maturity investments |  |  | - |  |  |  |  | - |
|  |  | Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes |  |  | - |  |  |  |  | - |
| Other receivables |  |  | 14,994 |  |  |  |  | 8,590 |
|  | Total accounts receivable, net | $ |  | 28,898 |  |  | $ |  | 26,583 |
Accounts receivable, trade, gross includes amounts due from customers from the provision of transaction processing services, from the sale of hardware, software licenses and SIM cards and rentals from safe assets and POS equipment. The Company did not record any bad debt expense during the year ended June 30, 2021 and 2020, respectively and bad debts incurred were written off against the allowance for doubtful accounts receivable. Current portion of amount outstanding related to sale of interest in Bank Frick represents the amount due from the purchaser related to the sale of Bank Frick, refer to Note 9 for additional information regarding the sale. The Company received the first scheduled repayment of $7.5 million in October 2021 and the remaining amount of $3.9 million was settled in May 2022, two months ahead of its scheduled July 2022 due date. The total amount received during the year ended June 30, 2022, was $11.4 million. The loan of $3.0 million provided to Carbon Tech Limited (“Carbon”), an equity-accounted investment, was scheduled to be repaid before June 30, 2020, however, Carbon requested a payment holiday as a result of the impact of the COVID-19 pandemic on its business. The parties had not agreed to new repayment terms as of June 30, 2022. However, the Company acknowledges the unexpected and ongoing challenges facing Carbon and determined in June 2021 to create an allowance for doubtful loans receivable of $3.0 million due to these circumstances and ongoing operating losses incurred by Carbon. Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes represents the investment in a note which matured in August 2022 and formed part of Cell C’s capital structure. The carrying value as of each of June 30, 2022 and 2021, respectively was $0 (nil). The note is included in other long-term assets as of June 30, 2021 (refer to Note 9). No interest income from the Cedar Cellular note was recorded during the years ended June 30, 2022, 2021 and 2020, respectively. Interest, if any, on this investment will only be paid, at Cedar Cellular’s election, on its maturity which is in the process of being extended beyond its original date of August 2022. The Company does not expect to recover the amortized cost basis of the Cedar Cellular notes due to its assessment that the equity in Cell C currently has no value which would result in there being no future cash flows to be collected from the debt security on maturity. The recoverability of the debt security will be affected by the proposed recapitalization of Cell C, which is also expected to extend the maturity date of the instrument. The Company could not calculate an effective interest rate on the Cedar Cellular note because the carrying value was zero ($0.0 million) as of June 30, 2022 and 2021. The Company therefore could not calculate the present value of the expected cash flows to be collected from the debt security by discounting these cash flows at the interest rate implicit in the security upon acquisition (at a rate of 24.82%) because there are no future cash flows to discount. Other receivables includes prepayments, deposits, income taxes receivable and other receivables, as well as transactions-switching funds receivables of $3.3 million which the Company considers recoverable. 4. Accounts receivable, net and other receivables and finance loans receivable, net (continued) Contractual maturities of held to maturity investments Summarized below is the contractual maturity of the Company’s held to maturity investment as of June 30, 2022:
|  |  |  |  |  |  |  |  | Cost basis |  |  | Estimated fair 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 assets held by Cedar Cellular, namely, Cedar Cellular’s investment in Cell C. (2) The cost basis is zero ($0.0 million). Finance loans receivable, net The Company’s finance loans receivable, net, as of June 30, 2022, and June 30, 2021, is presented in the table below:
|  |  |  |  | June 30, |  |  | June 30,
|  |  |  |  | 2022 |  |  | 2021
| Microlending finance loans receivable, net | $ |  | 20,058 |  |  | $ |  | 21,142 |
| Microlending finance loans receivable, gross |  |  | 21,452 |  |  |  |  | 23,491 |
| Allowance for doubtful finance loans receivable, end of period |  |  | 1,394 |  |  |  |  | 2,349 |
|  | Beginning of period |  |  | 2,349 |  |  |  |  | 1,858 |
|  | Reversed to statement of operations |  |  | (805) |  |  |  |  | (1,004) |
|  | Charged to statement of operations |  |  | 1,268 |  |  |  |  | 2,060 |
|  | Utilized |  |  | (1,179) |  |  |  |  | (967) |
|  | Foreign currency adjustment |  |  | (239) |  |  |  |  | 402 |
| Merchant finance loans receivable, net |  |  | 13,834 |  |  |  |  | - |
| Merchant finance loans receivable, gross |  |  | 14,131 |  |  |  |  | - |
| Allowance for doubtful finance loans receivable, end of period |  |  | 297 |  |  |  |  | - |
|  | Beginning of period |  |  | - |  |  |  |  | - |
|  | Charged to statement of operations |  |  | 442 |  |  |  |  | - |
|  | Utilized |  |  | - |  |  |  |  | - |
|  | Foreign currency adjustment |  |  | (145) |  |  |  |  | - |
| Working capital finance loans receivable, net |  |  | - |  |  |  |  | - |
| Working capital finance loans receivable, gross |  |  | - |  |  |  |  | - |
| Allowance for doubtful finance loans receivable, end of period |  |  | - |  |  |  |  | - |
|  | Beginning of period |  |  | - |  |  |  |  | 5,800 |
|  | Utilized |  |  | - |  |  |  |  | (5,800) |
|  | Total finance loans receivable, net | $ |  | 33,892 |  |  | $ |  | 21,142 |
Total finance loans receivable, net, comprises microlending finance loans receivable related to the Company’s microlending operations in South Africa as well as its merchant finance loans receivable related to Connect’s lending activities in South Africa. Gross microlending finance loans receivable as of June 30, 2022, was lower than as of June 30, 2021, due to the weaker ZAR compared to the U.S. dollar. In ZAR terms, the loan book increased over the same period by approximately 4%. During the year ended June 30, 2022, the Company adjusted its microlending finance loans receivable allowance provision from 10% of the gross book to 6.5% of the gross book as a result of evidence of lower actual losses incurred on the book which has resulted in an improvement in the collection rate. 4. ACCOUNTS RECEIVABLE, net and OTHER RECEIVABLES and FINANCE LOANS RECEIVABLE, net (continued) Finance loans receivable, net (continued) Merchant finance loans receivable, net, comprises finance loans receivable as of June 30, 2022, related to the Company’s lending operations in South Africa to merchants through Connect. Certain merchant finance loans receivable have been pledged as security for the Company’s revolving credit facility (refer to Note 12). The Company had no working capital finance loans receivable, net as of June 30, 2022 and 2021. The Company created an allowance for doubtful working capital finance loans receivable 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 was then engaged in bankruptcy proceedings. In December 2020, the Company withdrew its claim lodged in the bankruptcy proceedings because it did not believe it would recover the receivable via these proceedings, or via any other process. During the year ended June 30, 2021, the Company utilized the entire allowance for doubtful working capital finance loans receivable against the outstanding receivable.

X
- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2196816 + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_NotesReceivableNetAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration