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(Loss) Earnings Per Share

6 Months Ended

Dec. 31, 2022

(Loss) Earnings Per Share [Abstract]

(Loss) Earnings Per Share

13.(Loss) Earnings per share

The Company has issued redeemable common stock which is redeemable at an amount other than fair value. Redemption of a class of common stock at other than fair value increases or decreases the carrying amount of the redeemable common stock and is reflected in basic earnings per share using the two-class method. There were no redemptions of common stock, or adjustments to the carrying value of the redeemable common stock during the six months ended December 31, 2022 and 2021. Accordingly, the two-class method presented below does not include the impact of any redemption. The Company’s redeemable common stock is described in Note 14 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2022.

Basic (loss) earnings per share includes shares of restricted stock that meet the definition of a participating security because these shares are eligible to receive non-forfeitable dividend equivalents at the same rate as common stock. Basic (loss) earnings per share has been calculated using the two-class method and basic (loss) earnings per share for the six months ended December 31, 2022 and 2021, reflects only undistributed earnings. The computation below of basic (loss) earnings per share excludes the net loss attributable to shares of unvested restricted stock (participating non-vested restricted stock) from the numerator and excludes the dilutive impact of these unvested shares of restricted stock from the denominator.

Diluted (loss) earnings per share has been calculated to give effect to the number of shares of additional common stock that would have been outstanding if the potential dilutive instruments had been issued in each period. Stock options are included in the calculation of diluted (loss) earnings per share utilizing the treasury stock method and are not considered to be participating securities, as the stock options do not contain non-forfeitable dividend rights. The Company has excluded employee stock options to purchase 76,572 and 143,551 shares of common stock from the calculation of diluted loss per share during the six months ended December 31, 2022, because the effect would be antidilutive.

The calculation of diluted (loss) earnings per share includes the dilutive effect of a portion of the restricted stock granted to employees as these shares of restricted stock are considered contingently returnable shares for the purposes of the diluted (loss) earnings per share calculation and the vesting conditions in respect of a portion of the restricted stock had been satisfied. The vesting conditions for all awards made are discussed in Note 17 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2022.

13.(Loss) Earnings per share (continued)

The following table presents net loss attributable to Lesaka and the share data used in the basic and diluted loss per share computations using the two-class method:

							Three months ended								Six months ended
							December 31,								December 31,
							2022				2021				2022				2021
								(in thousands except								(in thousands except
								percent and								percent and
								per share data)								per share data)
	Numerator:
		Net loss attributable to Lesaka					$	(6,649)			$	(12,406)			$	(17,345)			$	(25,400)
		Undistributed loss						(6,649)				(12,406)				(17,345)				(25,400)
		Percent allocated to common shareholders
		(Calculation 1)						96%				99%				96%				99%
		Numerator for loss per share: basic and diluted					$	(6,377)		$		(12,234)			$	(16,668)			$	(25,080)

	Denominator
		Denominator for basic (loss) earnings per share:
		weighted-average common shares outstanding						60,194				56,413				60,058				56,373
		Effect of dilutive securities:
				Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assuming conversion				60,194				56,413				60,058				56,373

	Loss per share:
		Basic					$	(0.11)			$	(0.22)			$	(0.28)			$	(0.44)
		Diluted					$	(0.11)			$	(0.22)			$	(0.28)			$	(0.44)

	(Calculation 1)
		Basic weighted-average common shares outstanding (A)						60,194				56,413				60,058				56,373
		Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B)						62,763				57,204				62,498				57,093
		Percent allocated to common shareholders
		(A) / (B)						96%				99%				96%				99%

Options to purchase 324,619 shares of the Company’s common stock at prices ranging from $4.87 to $11.23 per share were outstanding during the three and six months ended December 31, 2022, respectively, but were not included in the computation of diluted (loss) earnings per share because the options’ exercise price was greater than the average market price of the Company’s common stock. Options to purchase 270,832 shares of the Company’s common stock at prices ranging from $6.20 to $11.23 per share were outstanding during the three and six months ended December 31, 2021, respectively, but were not included in the computation of diluted (loss) earnings per share because the options’ exercise price was greater than the average market price of the Company’s common stock. The options, which expire at various dates through February 3, 2032, were still outstanding as of December 31, 2022.