XML 22 R10.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Inventory
9 Months Ended
Mar. 31, 2024
Inventory [Abstract]  
Inventory
3.
 
Inventory
The Company’s inventory
 
comprised the following categories as of March 31, 2024, and June 30, 2023:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
June 30,
2024
2023
Raw materials
$
2,437
$
2,819
Work-in-progress
299
30
Finished goods
19,053
24,488
$
21,789
$
27,337
As of March 31,
 
2024 and June 30, 2023,
 
finished goods includes $
6.0
 
million and $
8.6
 
million, respectively,
 
of Cell C airtime
inventory
 
that was
 
previously classified
 
as finished
 
goods subject
 
to sale
 
restrictions.
 
In support
 
of Cell
 
C’s
 
liquidity position
 
and
pursuant
 
to
 
Cell
 
C’s
 
recapitalization
 
process,
 
the
 
Company
 
limited
 
the
 
resale
 
of
 
this
 
airtime
 
to
 
its
 
own
 
distribution
 
channels.
 
On
September 30, 2022, Cell C
 
concluded its recapitalization process and
 
the Company and Cell C
 
entered into an agreement under which
Cell C agreed to repurchase, from October
 
2023, up to ZAR
10
 
million of Cell C inventory from the
 
Company per month. The amount
to be repurchased by Cell C is calculated as ZAR
10
 
million less the face value of any sales made by the Company during that month.
The Company’s ability to sell this airtime has increased significantly since the acquisition of Connect because Connect is
 
a significant
reseller of
 
Cell C airtime.
 
As a
 
result, the
 
Company has
 
sold higher
 
volumes of
 
airtime through
 
this channel
 
than it
 
did prior
 
to the
Cell C
 
recapitalization,
 
however,
 
continued
 
sales at
 
these volumes
 
is dependent
 
on prevailing
 
conditions
 
continuing in
 
the airtime
market. If the Company is able to sell at least ZAR
10
 
million a month through this channel from October 1, 2023, then Cell C would
not be
 
required to
 
repurchase any
 
airtime from
 
the Company
 
during any
 
specific month.
 
The Company
 
has agreed
 
to notify
 
Cell C
prior to selling any of this airtime, however, there is no
 
restriction placed on the Company on the sale of the airtime