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Leases

6 Months Ended

Dec. 31, 2022

16.Leases

The Company has entered into leasing arrangements classified as operating leases under accounting guidance. These leasing arrangements relate primarily to the lease of its corporate head office, administration offices and branch locations through which the Company operates its financial services business in South Africa. The Company’s operating leases have remaining lease terms of between one and five years. The Company also operates parts of its financial services business from locations which it leases for a period of less than one year. The Company’s operating lease expense during each of the three months ended December 31, 2022 and 2021 was $0.8 million, respectively. The Company’s operating lease expense during the six months ended December 31, 2022 and 2021 was $1.6 million and $1.8 million, respectively. The Company does not have any significant leases that have not commenced as of December 31, 2022.

The Company has also entered into short-term leasing arrangements, primarily for the lease of branch locations and other locations, to operate its financial services business in South Africa. The Company’s short-term lease expense during the three months ended December 31, 2022 and 2021, was $ 0.9 million and $ 1.3 million, respectively. The Company’s short-term lease expense during the six months ended December 31, 2022 and 2021, was $ 2.0 million and $ 2.6 million, respectively.

The following table presents supplemental balance sheet disclosure related to the Company’s right-of-use assets and its operating lease liabilities as of December 31, 2022 and June 30, 2022:

	December 31,		June 30,
	2022		2022
Right of use assets obtained in exchange for lease obligations:
Weighted average remaining lease term (years)		2.77		2.14
Weighted average discount rate (percent)		9.3		9.3

The maturities of the Company’s operating lease liabilities as of December 31, 2022, are presented below:

Maturities of operating lease liabilities
Year ended June 30,
2023 (excluding six months to December 31, 2022)	$	1,428
2024		2,058
2025		1,207
2026		944
2027		961
Thereafter		849
Total undiscounted operating lease liabilities		7,447
Less imputed interest		1,253
Total operating lease liabilities, included in		6,194
Operating lease liability - current		2,078
Operating lease liability - long-term	$	4,116