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Description Of Business And Basis Of Presentation
12 Months Ended
Jun. 30, 2025
Description Of Business And Basis Of Presentation [Abstract]  
Description Of Business And Basis Of Presentation
1.
 
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Description of Business
Lesaka Technologies, Inc. (“Lesaka” and collectively
 
with its consolidated subsidiaries, the “Company”), formerly named Net 1
UEPS Technologies, Inc., was incorporated in
 
the State of
 
Florida on May
 
8, 1997. The
 
Company is a
 
provider of financial technology,
or fintech, products and services, primarily in South Africa and neighboring
 
countries,
 
to unbanked and underbanked consumers, and
fintech solutions
 
for merchants
 
operating in
 
formal and
 
informal markets.
 
The Company
 
offers
 
an integrated
 
multiproduct platform
that provides transactional
 
accounts (banking), lending,
 
insurance, payouts, card
 
acquiring, cash
 
management, software and
 
Alternative
Digital Products (“ADP”). ADP includes the Company’s prepaid solutions and supplier
 
enabled payments. By providing a
 
full-service
fintech platform in its connected ecosystem, the Company facilitates the digitization of commerce in its markets and participate in the
secular shift from cash to digital.
Basis of presentation
The accompanying
 
consolidated financial
 
statements include
 
subsidiaries over
 
which Lesaka
 
exercises control
 
and have
 
been
prepared in accordance with accounting principles generally accepted
 
in the United States of America (“GAAP”).
Revision of Previously Issued Financial Statements
In
 
April
 
2025,
 
the
 
Company
 
identified
 
that
 
it
 
had
 
misclassified
 
certain
 
of
 
its
 
long-term
 
borrowings.
 
The
 
Company’s
 
CCC
Revolving Credit Facility was scheduled to be repaid in full on November 2024, at the date of issue of the June 30, 2024 consolidated
financial statements,
 
but this
 
was extended
 
a number
 
of times
 
and was
 
ultimately refinanced
 
in September
 
2025 (refer
 
to Note
 
12).
The
 
Company
 
incorrectly
 
classified
 
amounts
 
due
 
under
 
its
 
CCC
 
Revolving
 
Credit
 
Facility
 
as
 
long-term
 
borrowings
 
instead
 
of
 
as
current portion
 
of long-term borrowings
 
in its audited
 
balance sheet as
 
of June 30,
 
2024. The table
 
below presents the
 
impact of the
revision of the Company’s financial
 
statements for the year ended June 30, 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated balance sheet
As of June 30, 2024
As
previously
reported
Correction
Revised
Current portion of long-term borrowings
$
3,878
$
11,841
$
15,719
Long-term borrowings
$
139,308
$
(11,841)
$
127,467
The
 
correction
 
did
 
not
 
impact
 
the
 
Company’s
 
audited
 
consolidated
 
statements
 
of
 
operations,
 
consolidated
 
statements
 
of
comprehensive (loss) income, consolidated statement of changes
 
in equity, or consolidated statements of cash flows
 
for the year ended
June 30,
 
2024 and,
 
except as
 
noted above,
 
the Company’s
 
audited balance
 
sheet as
 
of June
 
30, 2024.
 
The misclassification
 
did not
affect compliance
 
with any
 
debt covenants.
 
The Company
 
assessed the
 
materiality of
 
this error and
 
change in
 
presentation on
 
prior
period consolidated
 
financial statements in
 
accordance with
 
SEC Staff
 
Accounting Bulletin
 
(“SAB”) No. 99
 
“Materiality” and SAB
No.
 
108,
 
“Considering
 
the
 
Effects
 
of
 
Prior
 
Year
 
Misstatements
 
when
 
Quantifying
 
Misstatements
 
in
 
the
 
Current
 
Year
 
Financial
Statements.” Based
 
on this
 
assessment, the
 
Company has
 
concluded that
 
previously issued
 
financial statements
 
were not
 
materially
misstated based upon overall considerations of both quantitative and qualitative
 
factors.