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Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net | 12 Months Ended
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Jun. 30, 2023
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, 2023, and June 30, 2022, are presented in the table below: June 30, June 30, 2023 2022 Accounts receivable, trade, net $ 11,037 $ 13,904 Accounts receivable, trade, gross 11,546 14,413 Allowance for doubtful accounts receivable, end of period 509 509 Beginning of period 509 267 Reallocation to allowance for doubtful finance loans receivable (1) (418) - Reversed to statement of operations (31) (133) Charged to statement of operations 2,006 779 Utilized (1,646) (154) Foreign currency adjustment 89 (250) Loans provided to Carbon, net of allowance: 2022: $ 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 14,628 14,994 Total accounts receivable, net $ 25,665 $ 28,898 (1) Represents reallocation of a portion of the Merchant allowance for doubtful finance loans receivable as of June 30, 2022, which was included in the allowance for doubtful accounts receivable as of June 30, 2022. 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, 202 3 and 2022, 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 Carbon represents the amount due from the purchaser related to the sale of the Company’s interest in Carbon Tech Limited (“Carbon”), an equity-accounted investment of $ 0.25 million, net of an allowance for doubtful loans receivable of $ 0.25 million and an amount due related to the sale of the loan (refer below), with a face value of $ 3.0 million, which was sold in September 2022 for $ 0.75 million, net of an allowance for doubtful loans receivable of $ 0.75 million, refer to Note 9 for additional information. The loan of $ 3.0 million provided to Carbon 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. In June 2021, the Company determined to create an allowance for doubtful loans receivable of $ 3.0 million due to these circumstances and the 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 was due to mature in August 2022 and forms part of Cell C’s capital structure. The carrying value as of each of June 30, 2023 and 2022, respectively was $ 0 (zero). No interest income from the Cedar Cellular note was recorded during the years ended June 30, 2023, 2022 and 2021, 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 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, 2023 and 2022. 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 of June 30, 2022, other receivables also includes transactions-switching funds receivable of $ 3.3 million which was received in full in November 2022. 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, 2023: 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, 2023, and June 30, 2022, is presented in the table below: June 30, June 30, 2023 2022 Microlending finance loans receivable, net $ 20,605 $ 20,058 Microlending finance loans receivable, gross 22,037 21,452 Allowance for doubtful finance loans receivable, end of period 1,432 1,394 Beginning of period 1,394 2,349 Reversed to statement of operations - (805) Charged to statement of operations 1,452 1,268 Utilized (1,214) (1,179) Foreign currency adjustment (200) (239) Merchant finance loans receivable, net 16,139 13,834 Merchant finance loans receivable, gross 18,289 14,131 Allowance for doubtful finance loans receivable, end of period 2,150 297 Beginning of period 297 - Reallocation from allowance for doubtful accounts receivable (1) 418 - Reversed to statement of operations (1,268) - Charged to statement of operations 3,068 442 Utilized - - Foreign currency adjustment (365) (145) Total finance loans receivable, net $ 36,744 $ 33,892 (1) Represents reallocation of a portion of the Merchant allowance for doubtful finance loans receivable as of June 30, 2022, which was included in the allowance for doubtful accounts receivable as of June 30, 2022. 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. Certain merchant finance loans receivable have been pledged as security for the Company’s revolving credit facility (refer to Note 12). 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.

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