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Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net | 6 Months Ended
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Dec. 31, 2023
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, 2023, and June 30, 2023, are presented in the table below: December 31, June 30, 2023 2023 Accounts receivable, trade, net $ 13,169 $ 11,037 Accounts receivable, trade, gross 13,591 11,546 Allowance for doubtful accounts receivable, end of period 422 509 Beginning of period 509 509 Reallocation to allowance for doubtful finance loans receivable - (418) Reversed to statement of operations (227) (31) Charged to statement of operations 586 2,005 Utilized (458) (1,645) Foreign currency adjustment 12 89 Current portion of amount outstanding related to sale of interest in Carbon, net of allowance: December 2023: $ 750 ; June 2023: $ 750 - - 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 27,945 14,628 Total accounts receivable, net and other receivables $ 41,114 $ 25,665 Trade receivables include amounts due from customers which generally have a very short-term life from date of invoice or service provided to settlement. The duration is less than a year in all cases and generally less than 30 days in many instances. The short-term nature of these exposures often results in balances at month-end that are disproportionately small compared to the total invoiced amounts. The month-end outstanding balance are more volatile than the monthly invoice amounts because they are affected by operational timing issues and the fact that a balance is outstanding at month-end is not necessarily an indication of increased risk but rather a matter of operational timing. 2. Accounts receivable, net and other receivables and finance loans receivable, net (continued) Accounts receivable, net and other receivables (continued) Credit risk in respect of trade receivables are generally not significant and the Company has not developed a sophisticated model for these basic credit exposures. The Company determined to use a lifetime loss rate by expressing write-off experience as a percentage of corresponding invoice amounts (as opposed to outstanding balances). The allowance for credit losses related to these receivables has been calculated by multiplying the lifetime loss rate with recent invoice/origination amounts. Management actively monitors performance of these receivables over short periods of time. Different balances have different rules to identify an account in distress but, generally speaking, account balances in distress are identified very early and specific allowances are immediately created. Subsequent recovery from distressed accounts are generally limited. 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 as of June 30, 2023, and an amount due related to the sale of the loan, 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 5 for additional information. The Company received the outstanding $ 0.25 million related to the sale of the equity-accounted investment in October 2023, and has reversed the allowance for doubtful loans receivable of $ 0.25 million during the six months ended December 31, 2023. 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, 2023, and June 30, 2023, respectively was $ 0 (zero). Other receivables includes prepayments, deposits, income taxes receivable and other receivables. 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, 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 December 31, 2023, and June 30, 2023, is presented in the table below: December 31, June 30, 2023 2023 Microlending finance loans receivable, net $ 25,686 $ 20,605 Microlending finance loans receivable, gross 27,483 22,037 Allowance for doubtful finance loans receivable, end of period 1,797 1,432 Beginning of period 1,432 1,394 Reversed to statement of operations (86) - Charged to statement of operations 1,188 1,452 Utilized (787) (1,214) Foreign currency adjustment 50 (200) Merchant finance loans receivable, net 13,370 16,139 Merchant finance loans receivable, gross 16,315 18,289 Allowance for doubtful finance loans receivable, end of period 2,945 2,150 Beginning of period 2,150 297 Reallocation from allowance for doubtful accounts receivable - 418 Reversed to statement of operations (202) (1,268) Charged to statement of operations 1,430 3,068 Utilized (521) - Foreign currency adjustment 88 (365) Total finance loans receivable, net $ 39,056 $ 36,744 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 with an aggregate balance of $ 13.1 million as of December 31, 2023 have been pledged as security for the Company’s revolving credit facility (refer to Note 8). Allowance for credit losses Microlending finance loans receivable Microlending finance loans receivable related to the Company’s microlending operations in South Africa whereby it provides unsecured short-term loans to qualifying customers. Loans to customers have a tenor of up to six months , with the majority of loans originated having a tenor of six months . The Company analyses this lending book as a single portfolio because the loans within the portfolio have similar characteristics and management uses similar processes to monitor and assess the credit risk of the lending book. Refer to Note 4 related to the Company risk management process related to these receivables. The Company has operated this lending book for more than five years and uses historical default experience over the lifetime of loans in order to calculate a lifetime loss rate for the lending book. The allowance for credit losses related to these microlending finance loans receivables is calculated by multiplying the lifetime loss rate with the month end outstanding lending book. The lifetime loss rate as of each of July 1, 2023 and December 31, 2023, was 6.50 %. The performing component (that is, outstanding loan payments not in arrears) of the book exceeds more than 99 % of outstanding lending book as of December 31, 2023. Merchant finance loans receivable Merchant finance loans receivable related to the Company’s Merchant lending activities in South Africa whereby it provides unsecured short-term loans to qualifying customers. Loans to customers have a tenor of up to twelve months , with the majority of loans originated having a tenor of approximately eight months . The Company analyses this lending book as a single portfolio because the loans within the portfolio have similar characteristics and management uses similar processes to monitor and assess the credit risk of the lending book. Refer to Note 4 related to the Company risk management process related to these receivables. The Company has recently (in the past two years ) commenced lending to merchant customers and uses historical default experience over the lifetime of loans generated thus far in order to calculate a lifetime loss rate for the lending book. The allowance for credit losses related to these merchant finance loans receivables is calculated by adding together actual receivables in default plus multiplying the lifetime loss rate with the month-end outstanding lending book. The lifetime loss rate as of each of July 1, 2023 and December 31, 2023, was approximately 1.18 %. The performing component (that is, outstanding loan payments not in arrears), under- performing component (that is, outstanding loan payments that are in arrears) and non-performing component (that is, outstanding loans for which payments appeared to have ceased) of the book represents approximately 82 %, 14 % and 4 %, respectively, of the outstanding lending book as of December 31, 2023.

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