XML 23 R10.htm IDEA: XBRL DOCUMENT v3.22.4
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
 6 Months Ended
Dec. 31, 2022
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract]  
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net

2. 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, 2022, and June 30, 2022, are presented in the table below:

 

 

 

 

 

December 31,

 

June 30,

 

 

 

 

 

 

2022

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, trade, net

$

 

12,073

 

 

$

 

13,904

 

 

Accounts receivable, trade, gross

 

 

12,163

 

 

 

 

14,413

 

 

Allowance for doubtful accounts receivable, end of period

 

 

90

 

 

 

 

509

 

 

 

Beginning of period

 

 

509

 

 

 

 

267

 

 

 

Reallocation to allowance for doubtful finance loans receivable(1)

 

 

(418)

 

 

 

 

-

 

 

 

Reversed to statement of operations

 

 

(9)

 

 

 

 

(133)

 

 

 

Charged to statement of operations

 

 

507

 

 

 

 

779

 

 

 

Utilized

 

 

(412)

 

 

 

 

(154)

 

 

 

Foreign currency adjustment

 

 

(87)

 

 

 

 

(250)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of amount outstanding related to sale of interest in Carbon, net of allowance: December 2022: $250

 

 

-

 

 

 

 

-

 

 

Loans provided to Carbon, net of allowance: June 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

 

 

16,146

 

 

 

 

14,994

 

 

 

Total accounts receivable, net and other receivables

$

 

28,219

 

 

$

 

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.

 

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, refer to Note 5 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. The loan was sold in September 2022 for $0.75 million (refer to Note 5).

 

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 December 31, 2022, and June 30, 2022, respectively was $0 (nil).

 

Other receivables includes prepayments, deposits, income taxes receivable and other receivables, and as of June 30, 2022, also includes transactions-switching funds receivable of $3.3 million which was received in full in November 2022.

Contractual maturities of held to maturity investments

 

Summarized below is the contractual maturity of the Company’s held to maturity investment as of December 31, 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 December 31, 2022, and June 30, 2022, is presented in the table below:

 

 

 

 

 

December 31,

 

 

June 30,

 

 

 

 

 

2022

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Microlending finance loans receivable, net

$

 

21,880

 

 

$

 

20,058

 

 

Microlending finance loans receivable, gross

 

 

23,401

 

 

 

 

21,452

 

 

Allowance for doubtful finance loans receivable, end of period

 

 

1,521

 

 

 

 

1,394

 

 

 

Beginning of period

 

 

1,394

 

 

 

 

2,349

 

 

 

Reversed to statement of operations

 

 

-

 

 

 

 

(805)

 

 

 

Charged to statement of operations

 

 

730

 

 

 

 

1,268

 

 

 

Utilized

 

 

(546)

 

 

 

 

(1,179)

 

 

 

Foreign currency adjustment

 

 

(57)

 

 

 

 

(239)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant finance loans receivable, net

 

 

17,794

 

 

 

 

13,834

 

 

Merchant finance loans receivable, gross

 

 

19,705

 

 

 

 

14,131

 

 

Allowance for doubtful finance loans receivable, end of period

 

 

1,911

 

 

 

 

297

 

 

 

Beginning of period

 

 

297

 

 

 

 

-

 

 

 

Reallocation from allowance for doubtful accounts receivable(1)

 

 

419

 

 

 

 

-

 

 

 

Reversed to statement of operations

 

 

(2)

 

 

 

 

-

 

 

 

Charged to statement of operations

 

 

1,301

 

 

 

 

442

 

 

 

Utilized

 

 

-

 

 

 

 

-

 

 

 

Foreign currency adjustment

 

 

(104)

 

 

 

 

(145)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance loans receivable, net

$

 

39,674

 

 

$

 

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 8).