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Equity-Accounted Investments And Other Long-Term Assets | 6 Months Ended
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Dec. 31, 2021
Equity-Accounted Investments And Other Long-Term Assets [Abstract] |
Equity-Accounted Investments And Other Long-Term Assets | 5.Equity-accounted investments and other long-term assets Refer to Note 8 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2021, for additional information regarding its equity-accounted investments and other long-term assets. Equity-accounted investments The Company’s ownership percentage in its equity-accounted investments as of December 31, 2021, and June 30, 2021, was as follows:
|  |  |  |  |  |  |  |  |  |  |  |  |  | December 31, |  | June 30, |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2021 |  | 2021 |
| Finbond Group Limited (“Finbond”) |  | 31.5 | % |  | 31.5 | % |
| Carbon Tech Limited (“Carbon”) |  | 25.0 | % |  | 25.0 | % |
| SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”) |  | 50.0 | % |  | 50.0 | % |
Finbond As of December 31, 2021, the Company owned 268,820,933 shares in Finbond representing approximately 31.5% of its issued and outstanding ordinary shares. Finbond is listed on the Johannesburg Stock Exchange (“JSE”) and its closing price on December 31, 2021, the last trading day of the month, was ZAR 0.99 per share. The market value, using the December 31, 2021, closing price, of the Company’s holding in Finbond on December 31, 2021, was ZAR 266.1 million ($16.7 million translated at exchange rates applicable as of December 31, 2021). Summarized below is the movement in equity-accounted investments and loans provided to equity-accounted investments during the six months ended December 31, 2021:
|  |  |  |  |  |  |  | Finbond |  | Other(1) |  | Total |
| Investment in equity |  |  |  |  |  |  |  |  |
|  | Balance as of June 30, 2021 | $ | 9,822 |  | $ | 182 |  | $ | 10,004 |
|  |  | Stock-based compensation |  | 9 |  |  | - |  |  | 9 |
|  |  | Comprehensive loss: |  | (1,800) |  |  | - |  |  | (1,800) |
|  |  |  | Other comprehensive loss |  | (644) |  |  | - |  |  | (644) |
|  |  |  | Equity accounted loss |  | (1,156) |  |  | - |  |  | (1,156) |
|  |  |  |  | Share of net loss |  | (1,156) |  |  | - |  |  | (1,156) |
|  |  | Dividends received |  | - |  |  | (137) |  |  | (137) |
|  |  | Foreign currency adjustment(2) |  | (852) |  |  | (7) |  |  | (859) |
|  | Balance as of December 31, 2021 | $ | 7,179 |  | $ | 38 |  | $ | 7,217 |
|  |  |  |  |  |  |  | Equity |  | Loans |  | Total |
| Carrying amount as of : |  |  |  |  |  |  |  |  |
|  |  | June 30, 2021 | $ | 10,004 |  | $ | - |  | $ | 10,004 |
|  |  | December 31, 2021 | $ | 7,217 |  | $ | - |  | $ | 7,217 |
(1) Includes Carbon and SmartSwitch Namibia. (2) The foreign currency adjustment represents the effects of the fluctuations of the ZAR, Nigerian naira and Namibian dollar against the U.S. dollar on the carrying value. 5.Equity-accounted investments and other long-term assets (continued) Other long-term assets Summarized below is the breakdown of other long-term assets as of December 31, 2021, and June 30, 2021:
|  |  |  |  |  |  |  |  |  |  |  |  | December 31, |  |  | June 30,
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2021 |  |  | 2021
| Total equity investments | $ | 76,297 |  | $ | 76,297
|  |  | Investment in 15% of Cell C, at fair value (Note 4) |  | - |  |  | -
|  |  | Investment in 10% of MobiKwik (June 30, 2021: 12%) |  | 76,297 |  |  | 76,297
|  |  | Investment in 87.5% of CPS(1) |  | - |  |  | -
| Total held to maturity investments |  | - |  |  | -
|  |  | Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes(2) |  | - |  |  | -
| Long-term portion of amount due related to sale of interest in Bank Frick(3) |  | - |  |  | 3,890
| Policy holder assets under investment contracts (Note 7) |  | 342 |  |  | 381
| Reinsurance assets under insurance contracts (Note 7) |  | 1,182 |  |  | 1,298
|  |  | Total other long-term assets | $ | 77,821 |  | $ | 81,866
(1) On October 16, 2020, the High Court of South Africa, Gauteng Division, Pretoria ordered that CPS be placed into liquidation. (2) The note is included in accounts receivable, net and other receivables as of December 31, 2021 (refer to Note 2). (3) Long-term portion of amount due related to sale of interest in Bank Frick as of June 30, 2021, represents the amount due from the purchaser in July 2022 and is included in accounts receivable, net, and other receivables as of December 31, 2021 (refer to Note 2). MobiKwik In October 2021, the Company converted its 310,781 shares of compulsorily convertible cumulative preferences shares to 6,215,620 equity shares in anticipation of MobiKwik’s initial public offering. The Company’s investment percentage remained unchanged following the conversion. The Company’s investment percentage as of December 31, 2021, was 10.2% following an issuance in December 2021, which the Company did not consider as an observable orderly transaction because it was made to an existing shareholder (i.e., a related party to MobiKwik), as well as the issuance of shares into an Employee Share Option Plan. There was no change in the fair value of MobiKwik during the three and six months ended December 31, 2021. In early November 2020, MobiKwik entered into an agreement to raise additional capital through the issuance of additional shares to a new shareholder at a valuation of $135.54 per share. The Company used this valuation as the basis for its adjustment to increase the carrying value in its investment in MobiKwik in the unaudited condensed consolidated statement of operations by $15.1 million from $27.0 million to $42.1 million as of December 31, 2020. The change in the fair value of MobiKwik during the three and six months ended December 31, 2020, of $15.1 million, respectively, is included in the caption “Change in fair value of equity securities” in the unaudited condensed consolidated statement of operations for the three and six months ended December 31, 2020. Summarized below are the components of the Company’s equity securities without readily determinable fair value and held to maturity investments as of December 31, 2021:
|  |  |  |  |  |  |  |  |  |  | Cost basis |  |  | Unrealized holding |  |  | Unrealized holding |  |  | Carrying |
|  |  |  |  |  |  |  |  |  |  |  |  | gains |  |  | losses |  |  | value |
| Equity securities: |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in MobiKwik | $ | 26,993 |  | $ | 49,304 |  | $ | - |  | $ | 76,297 |
|  | Investment in CPS |  | - |  |  | - |  |  | - |  |  | - |
| Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in Cedar Cellular notes (Note 2) |  | - |  |  | - |  |  | - |  |  | - |
|  |  |  | Total | $ | 26,993 |  | $ | 49,304 |  | $ | - |  | $ | 76,297 |
5.Equity-accounted investments and other long-term assets (continued) Other long-term assets (continued) Summarized below are the components of the Company’s equity securities without readily determinable fair value and held to maturity investments as of June 30, 2021:
|  |  |  |  |  |  |  |  |  |  | Cost basis |  |  | Unrealized holding |  |  | Unrealized holding |  |  | Carrying |
|  |  |  |  |  |  |  |  |  |  |  |  | gains |  |  | losses |  |  | value |
| Equity securities: |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in MobiKwik | $ | 26,993 |  | $ | 49,304 |  | $ | - |  | $ | 76,297 |
|  | Investment in CPS |  | - |  |  | - |  |  | - |  |  | - |
| Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in Cedar Cellular notes |  | - |  |  | - |  |  | - |  |  | - |
|  |  |  | Total | $ | 26,993 |  | $ | 49,304 |  | $ | - |  | $ | 76,297 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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