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Goodwill And Intangible Assets, Net
 12 Months Ended
Jun. 30, 2025
Goodwill And Intangible Assets, Net [Abstract]  
Goodwill And Intangible Assets, Net
10.
 
GOODWILL AND INTANGIBLE
 
ASSETS,
 
net
Goodwill
Summarized below is the movement in the carrying value of goodwill
 
for the years ended June 30, 2025, 2024 and 2023:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross value
Accumulated
impairment
Carrying value
Balance as of July 1, 2022
$
175,476
$
(12,819)
$
162,657
Impairment loss
-
(7,039)
(7,039)
Foreign currency adjustment
(1)
(22,857)
982
(21,875)
Balance as of June 30, 2023
152,619
(18,876)
133,743
Foreign currency adjustment
(1)
5,280
(472)
4,808
Balance as of June 30, 2024
157,899
(19,348)
138,551
Impairment loss
-
(17,041)
(17,041)
Acquisitions (Note 3)
(2)
76,114
-
76,114
Foreign currency adjustment
(1)
2,096
(325)
1,771
Balance as of June 30, 2025
$
236,109
$
(36,714)
$
199,395
(1) – The foreign currency adjustment represents the effects of the fluctuations between the South African Rand against the U.S.
dollar on the carrying value.
(2) – Represents
 
goodwill arising from
 
the acquisition of Adumo,
 
Recharger, IVAS
 
Namibia and Master
 
Fuel and translated at
the foreign exchange rates applicable on the date the transactions became effective.
 
This goodwill has been allocated to the Merchant
(a portion Adumo, IVAS Namibia and Master Fuel), Consumer (a portion of Adumo) and Enterprise (Recharger) reportable operating
segments.
Goodwill associated with
 
the acquisitions represents the
 
excess of cost
 
over the fair value
 
of net assets
 
acquired. Goodwill arising
from
 
these
 
acquisitions
 
is not
 
deductible
 
for
 
tax
 
purposes.
 
See
 
Note
 
3
 
for
 
the
 
allocation
 
of
 
the
 
purchase
 
price
 
to
 
the fair
 
value
 
of
acquired net assets.
 
10.
 
GOODWILL AND INTANGIBLE
 
ASSETS,
 
net (continued)
Goodwill (continued)
Impairment loss
The Company assesses the carrying
 
value of goodwill for impairment
 
annually, or
 
more frequently,
 
whenever events occur and
circumstances change indicating
 
potential impairment. The Company
 
performs its annual impairment
 
test as at June 30 of
 
each year.
The Company did
 
not perform a qualitative
 
assessment during the
 
years ended June 30,
 
2025, 2024 or
 
2023, respectively.
 
Except as
discussed below, no goodwill
 
has been impaired during the years ended June 30, 2025, 2024 and 2023,
 
respectively.
In order to determine the amount of
 
the goodwill impairments, the estimated fair value of
 
our reporting units’ business assets and
liabilities were compared to the carrying value of
 
their assets and liabilities. The Company
 
used a discounted cash flow model in
 
order
to determine the
 
fair value of
 
the businesses
 
(this is
 
a Level-3 fair
 
value measurement). Based
 
on this
 
analysis, the Company
 
determined
that the carrying value of the reporting units’ business assets and liabilities exceeded
 
their fair value at the reporting date.
In
 
determining
 
the
 
fair
 
value
 
of
 
the
 
reporting
 
units,
 
the
 
Company
 
considered
 
key
 
judgements
 
related
 
to
 
the
 
reporting
 
units’
revenue growth rates, weighted-average cost of capital (“WACC”)
 
applicable to peer and industry comparables of the reporting units,
and
 
the
 
forecast
 
periods
 
used.
 
The
 
Company
 
may
 
record
 
an
 
impairment
 
loss in
 
future
 
if
 
actual
 
growth
 
rates
 
are
 
lower
 
than
 
those
included in the Company’s discounted cash flow model. Furthermore, use of a higher weighted-average cost of capital may
 
also result
in an impairment loss in the future.
Year ended
 
June 30, 2025 goodwill impairment loss
The Company
 
recognized an impairment
 
loss of $
17.0
 
million as a
 
result of its
 
annual impairment
 
analysis related to
 
goodwill
allocated to its Connect Cash
 
and Adumo Technologies reporting units within its Merchant segment,
 
its Adumo Payouts reporting unit
within
 
Consumer
 
segment
 
and
 
its
 
EasyPay
 
reporting
 
unit
 
within
 
its
 
Enterprise
 
segment.
 
The
 
impairments
 
are
 
included
 
within
 
the
caption impairment loss in the consolidated statement of operations for
 
the year ended June 30, 2025.
At June 30, 2024,
 
the fair value of
 
the Connect Cash reporting
 
unit exceeded its carrying
 
value by
11
%.The impairment loss in
the Connect Cash
 
reporting unit resulted
 
from a reassessment of
 
the business’ growth prospects
 
in the context
 
of its strategic market
positioning, optimized capital expenditures and increase WACC
 
over prior years.
 
The impairment loss in the
 
Adumo Technologies
 
reporting unit resulted from a reassessment
 
of the business’ growth prospects,
a strategic decision to exit low return
 
and sub-optimal merchants’ contracts.
The impairment loss in the Adumo Payouts reporting
 
unit resulted from a reassessment of the business’ growth
 
prospects of the
reporting unit with lower revenue and therefore lower free cash flow generation expected compared to when performing the purchase
price allocation.
Easypay was acquired
 
in fiscal 2006.
 
At June 30,
 
2024, the fair
 
value of the
 
EasyPay reporting unit
 
exceeded is carrying
 
value
by
318
%. The impairment loss in the EasyPay reporting unit during the year ended June 30, 2025, resulted from a reassessment of the
business’ growth and the expected impact on its future cash flows as a result the cash outflows
 
expected from initiatives to modernize
its existing technology platform to retain and expand its product offering
 
and customer base.
 
The fair
 
value of
 
the ISV
 
and Humble
 
reporting unit
 
s
 
(both allocated
 
to Merchant)
 
included in
 
the Company’s
 
acquisition of
Adumo
 
did
 
not substantially
 
exceed
 
the
 
carrying
 
value
 
of their
 
respective
 
reporting
 
unit.
 
The
 
fair
 
value
 
of
 
the
 
ISV
 
reporting
 
unit
exceeded the carrying value by
2.4
% and Humble exceeded the carrying value
 
by
1
%. As of June 30,
 
2025, carrying value of goodwill
allocated
 
to
 
ISV
 
and
 
Humble
 
was
 
$
34.0
 
million
 
and
 
$
1.5
 
million,
 
respectively.
 
All
 
other
 
reporting
 
units’
 
fair
 
value
 
exceeded
 
the
carrying value of the reporting unit by at least
28
%.
 
10.
 
GOODWILL AND INTANGIBLE
 
ASSETS,
 
net (continued)
Goodwill (continued)
Impairment loss (continued)
Year ended
 
June 30, 2025 goodwill impairment loss (continued)
The table below
 
presents the impairment
 
per reporting unit
 
for the year
 
ended June 30,
 
2025 and the
 
revenue growth rates,
 
WACC
and forecast period for
 
reporting units used
 
in the discounted
 
cash flow models
 
for the June
 
30, 2025 and June
 
30, 2024, and
 
for entities
acquiring during the current fiscal year, the information
 
used in the purchase price allocation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments and reporting units
with impairments
Impairment
Remaining
goodwill
Range of
revenue
growth rates
(%)
Terminal
revenue
growth rates
(%)
WACC
 
(%)
Forecast
period
 
(years)
Merchant
$
9,268
$
22,283
Connect Cash
5,688
22,283
Used at June 30, 2025
3.2
 
-
23
6.0
15.6
5
 
Used at June 30, 2024
10
 
-
13.9
5.0
14.7
5
 
Adumo Technologies
3,580
-
Used at June 30, 2025
(
10
) -
37
(10.0)
18.5
5
 
Used at acquisition
6.7
 
-
14.9
N/A
18.9
Consumer
2,197
6,027
Adumo Payouts
2,197
6,027
Used at June 30, 2025
7.5
 
-
40.2
6.0
18.2
5
 
Used at acquisition
11.8
 
-
26.6
N/A
18.9
4
 
Enterprise
5,576
3,533
EasyPay
5,576
3,533
Used at June 30, 2025
6
 
-
65.6
6.0
22.5
10
 
Used at June 30, 2024
(
21.7
) -
6.9
6.0
14.7
5
 
Total
$
17,041
$
31,843
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant
Consumer
Enterprise
Carrying value
Balance as of July 1, 2022
$
137,640
$
-
$
25,017
$
162,657
Impairment loss
-
-
(7,039)
(7,039)
Foreign currency adjustment
(1)
(18,523)
-
(3,352)
(21,875)
Balance as of June 30, 2023
119,117
-
14,626
133,743
Foreign currency adjustment
(1)
4,279
-
529
4,808
Balance as of June 30, 2024
123,396
-
15,155
138,551
Impairment loss
(9,268)
(2,197)
(5,576)
(17,041)
Acquisitions (Note 3)
63,808
8,423
3,883
76,114
Foreign currency adjustment
(1)
1,698
(199)
272
1,771
Balance as of June 30, 2025
$
179,634
$
6,027
$
13,734
$
199,395
(1) – The foreign currency adjustment
 
represents the effects of the fluctuations between
 
the South African Rand, against the
 
U.S.
dollar on the carrying value.
10.
 
GOODWILL AND INTANGIBLE
 
ASSETS,
 
net
Intangible assets
Intangible assets acquired
Summarized below
 
is the
 
fair value
 
of intangible
 
assets acquired,
 
translated at
 
the exchange
 
rate applicable
 
as of
 
the relevant
acquisition dates, and the weighted-average amortization period:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value as of
acquisition date
Weighted-average
amortization
period (in years)
Finite-lived intangible asset:
Acquired during the year ended June 30, 2025:
Adumo – technology assets
$
13,998
3
 
-
7
Adumo – customer relationships
11,185
5
 
-
10
Adumo – brands
3,623
10
 
-
15
Recharger – technology assets
1,161
4
Recharger – customer relationships
15,010
5
Genisus Risk – technology assets
$
69
0.1
On acquisition of
 
these businesses, the
 
Company recognized an
 
aggregate deferred
 
tax liability of approximately
 
$
12.2
 
million
related to the acquisition of intangible assets during the year ended
 
June 30, 2025.
Change in useful lives for certain brand and trademark intangible assets
During early calendar
 
2025, the
 
Company’s executive considered the
 
unification of the
 
Company’s merchant segments operations
and
 
the realignment
 
of the
 
Company’s
 
brands under
 
the master
 
brand
 
“Lesaka”. The
 
Company’s
 
Board of
 
Directors
 
approved
 
the
realignment of certain of the Company’s brands to the master brand in May 2025. The Company has identified the steps and timing to
realign the
 
affected
 
brands under
 
the master
 
brand and
 
expects to
 
have complete
 
alignment by
 
February 2027,
 
with certain
 
brands
expected to be
 
aligned by December
 
2025. The change
 
in brands
 
has resulted in
 
a change in
 
the useful lives
 
of certain of
 
the Company’s
brand and trademark intangible assets which has resulted in an increase in amortization expense of $
2.6
 
million during the year ended
June 30, 2025. The change in the useful lives resulted in a $
1.9
 
million increase in the Company’s net loss from continuing operations
for the year ended June 30, 2025, and did not have a significant impact on loss per
 
share. The change did not impact prior periods.
 
 
10.
 
GOODWILL AND INTANGIBLE
 
ASSETS,
 
net (continued)
Intangible assets (continued)
Impairment loss
The Company
 
assesses the carrying
 
value of
 
intangible assets
 
for impairment
 
whenever events
 
occur or
 
circumstances change
indicating that the carrying amount of the intangible asset may not be recoverable.
No
 
intangible assets have been impaired during the
years ended June
 
30, 2025, 2024
 
and 2023, respectively,
 
except for intangible
 
assets of $
1.8
 
million related to
 
Adumo Technologies
which were fully impaired
 
during the year ended
 
June 30, 2025. The
 
impairment was identified during
 
the Company’s annual goodwill
impairment testing. The method for determining fair
 
value is discussed above under Goodwill—Impairment loss. The
 
impairment loss
related to the
 
impairment of the
 
intangible assets is
 
included in the
 
caption Impairment loss
 
in the
 
consolidated statements of
 
operations.
Summarized below is the carrying value and accumulated amortization of the intangible assets as of June 30, 2025, and June 30,
2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2025
As of June 30, 2024
Gross
carrying
value
Accumulated
amortization
and
impairment
Net
carrying
value
Gross
carrying
value
Accumulated
amortization
Net
carrying
value
Finite-lived intangible assets:
Software, integrated
platform and unpatented
technology
(1)
$
137,099
$
(41,925)
$
95,174
$
115,213
$
(25,763)
$
89,450
Customer relationships
(1)
53,369
(18,568)
34,801
25,880
(14,030)
11,850
FTS patent
 
2,158
(2,158)
-
2,107
(2,107)
-
Brands and trademarks
(1)
18,233
(8,993)
9,240
14,353
(4,300)
10,053
Total finite-lived
intangible assets
 
$
210,859
$
(71,644)
$
139,215
$
157,553
$
(46,200)
$
111,353
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 
June 30,
 
2025 balances
 
include the
 
intangible
 
assets acquired
 
as part
 
of the
 
Adumo acquisition
 
in October
 
2024, and
 
the
Recharger and Genisus Risk acquisitions in March 2025.
Aggregate
 
amortization
 
expense on
 
the finite-lived
 
intangible assets
 
for
 
the
 
years
 
ended June
 
30,
 
2025,
 
2024
 
and
 
2023,
 
was
approximately $
22.0
 
million, $
14.4
 
million and $
15.0
 
million, respectively.
Future estimated annual amortization expense for the next five
 
fiscal years and thereafter, using the exchange rates that prevailed
on June
 
30, 2025, is
 
presented in the
 
table below.
 
Actual amortization
 
expense in future
 
periods could differ
 
from this estimate
 
as a
result of acquisitions, changes in useful lives, exchange rate fluctuations and other
 
relevant factors.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2026
$
30,204
Fiscal 2027
20,576
Fiscal 2028
20,080
Fiscal 2029
19,389
Fiscal 2030
17,986
Thereafter
30,980
Total future
 
estimated annual amortization expense
$
139,215