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Equity-Accounted Investments And Other Long-Term Assets (Tables)
 9 Months Ended
Mar. 31, 2023
Ownership Percentage Of Equity-Accounted Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

 

 

Finbond Group Limited (“Finbond”)

 

27.8

%

 

29.3

%

 

 

Sandulela Technology (Pty) Ltd ("Sandulela")

 

49.0

%

 

49.0

%

 

 

Carbon Tech Limited (“Carbon”)

 

-

%

 

25.0

%

 

 

SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”)

 

50.0

%

 

50.0

%

 
Summary Of Movement In Equity-Accounted Investments

 

 

 

 

 

 

 

 

Finbond

 

Other(1)

 

Total

 

 

Investment in equity

 

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2022

$

5,760

 

$

101

 

$

5,861

 

 

 

 

Stock-based compensation

 

6

 

 

-

 

 

6

 

 

 

 

Comprehensive income:

 

26

 

 

49

 

 

75

 

 

 

 

 

Other comprehensive income

 

2,657

 

 

-

 

 

2,657

 

 

 

 

 

Equity accounted (loss) earnings

 

(2,631)

 

 

49

 

 

(2,582)

 

 

 

 

 

 

Share of net (loss) earnings

 

(1,521)

 

 

49

 

 

(1,472)

 

 

 

 

 

 

Impairment

 

(1,110)

 

 

-

 

 

(1,110)

 

 

 

 

Dividends received

 

-

 

 

(21)

 

 

(21)

 

 

 

 

Disposal of Finbond shares

 

(506)

 

 

-

 

 

(506)

 

 

 

 

Foreign currency adjustment(2)

 

(711)

 

 

(9)

 

 

(720)

 

 

 

Balance as of March 31, 2023

$

4,575

 

$

120

 

$

4,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in loans:

 

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2022

$

-

 

$

-

 

$

-

 

 

 

 

Loans granted

 

-

 

 

112

 

 

112

 

 

 

 

Loans repaid

 

-

 

 

(112)

 

 

(112)

 

 

 

 

Foreign currency adjustment(2)

 

-

 

 

-

 

 

-

 

 

 

Balance as of March 31, 2023

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

Equity

 

Loans

 

Total

 

 

Carrying amount as of :

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2022

$

5,861

 

$

-

 

$

5,861

 

 

 

 

March 31, 2023

$

4,695

 

$

-

 

$

4,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes Carbon, Sandulela, 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.
Summary Of Other Long-Term Asset

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity investments

$

76,297

 

$

76,297

 

 

 

Investment in 5% of Cell C (June 30, 2022: 15%) at fair value (Note 4)

 

-

 

 

-

 

 

 

Investment in 10% of MobiKwik (June 30, 2022: 10%)(1)

 

76,297

 

 

76,297

 

 

 

Investment in 87.5% of CPS (June 30, 2022: 87.5%) at fair value(1)(2)

 

-

 

 

-

 

Policy holder assets under investment contracts (Note 7)

 

270

 

 

371

 

Reinsurance assets under insurance contracts (Note 7)

 

1,502

 

 

1,424

 

 

 

Total other long-term assets

$

78,069

 

$

78,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company determined that MobiKwik and CPS do not have readily determinable fair values and therefore elected to record these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

(2) On October 16, 2020, the High Court of South Africa, Gauteng Division, Pretoria ordered that CPS be placed into liquidation.
Summary Of Components Of Equity Securities Without Readily Determinable Fair Value And Held To Maturity Investments

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Finbond Group Limited [Member]  
Schedule Of Calculation Of Gain (Loss) On Disposal

 

 

 

 

 

 

Three months ended March 31,

 

Nine months ended March 31,

 

 

2023

 

2023

 

Loss on disposal of Finbond shares:

 

 

 

 

 

 

Consideration received in cash

$

254

 

$

395

 

Less: carrying value of Finbond shares sold

 

(349)

 

 

(509)

 

Less: release of foreign currency translation reserve from accumulated other comprehensive loss

 

(243)

 

 

(342)

 

Add: release of stock-based compensation charge related to equity-accounted investment

 

9

 

 

13

 

 

Loss on sale of Finbond shares

$

(329)

 

$

(443)
Carbon [Member]  
Schedule Of Calculation Of Gain (Loss) On Disposal

 

 

 

 

 

 

Three months ended September 30,

 

 

2022

 

Gain on disposal of Carbon shares:

 

 

 

Consideration received in cash in September 2022

$

250

 

Less: carrying value of Carbon

 

-

 

 

Gain on disposal of Carbon shares:(1)

$

250

(1) The Company does not expect to pay taxes related to the sale of Carbon because the base cost of its investment exceeds the sales consideration received. The Company does not believe that it will be able to utilize the loss generated because Net1 BV does not generate taxable income.