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Basis of Presentation, Restatement of Financial Statement And Summary Of Significant Accounting Policies | 6 Months Ended
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Dec. 31, 2024
Basis of Presentation, Restatement of Financial Statement And Summary Of Significant Accounting Policies [Abstract] |
Basis of Presentation, Restatement of Financial Statement And Summary Of Significant Accounting Policies | 1. Basis of Presentation, Restatement of Financial Statement and Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements include all majority-owned subsidiaries over which the Company exercises control and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission for Quarterly Reports on Form 10-Q and include all of the information and disclosures required for interim financial reporting. The results of operations for the three and six months ended December 31, 2024 and 2023, are not necessarily indicative of the results for the full year. The Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, accounting policies and financial notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024, except as noted below, there are no material changes to significant accounting policies. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair representation of financial results for the interim periods presented. References to “Lesaka” are references solely to Lesaka Technologies, Inc. References to the “Company” refer to Lesaka and its consolidated subsidiaries, collectively, unless the context otherwise requires. Restatement of Previously Issued Financial Statements Subsequent to the issuance of the Company’s unaudited condensed consolidated financial statements for the three and six months ended December 31, 2024, the Company’s management determined that the Company incorrectly classified and recorded revenue from the sale of certain vouchers on an agent basis instead of as a principal due to a misinterpretation of the accounting implications related to a change in an operating process with its supplier. The Company understated its revenue and cost of goods sold, IT processing, servicing and support by $ 29.4 million and $ 37.4 million in its unaudited condensed consolidated statement of operations for the three and six months ended December 31, 2024, respectively. The correction of the misclassification did not impact the Company’s basic and diluted loss per share, condensed consolidated balance sheet as of December 31, 2024, or its unaudited condensed consolidated statements of comprehensive (loss) income, unaudited condensed consolidated statement of changes in equity and unaudited condensed consolidated statements of cash flows for the three and six months ended December 31, 2024. The tables below present the impact of the restatement on the Company’s unaudited condensed consolidated statement of operations for the three and six months ended December 31, 2024: Three months ended December 31, 2024 As previously reported Restatement adjustment As restated (in thousands) Revenue $ 146,818 $ 29,398 $ 176,216 Cost of goods sold, IT processing, servicing and support $ 101,298 $ 29,398 $ 130,696 Six months ended December 31, 2024 As previously reported Restatement adjustment As restated (in thousands) Revenue $ 292,364 $ 37,420 $ 329,784 Cost of goods sold, IT processing, servicing and support $ 212,185 $ 37,420 $ 249,605 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, but this has been extended to June 30, 2025. 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 unaudited condensed consolidated balance sheet as of December 31, 2024, and its audited consolidated balance sheet as of June 30, 2024. 1. Basis of Presentation, Restatement of Financial Statement and Summary of Significant Accounting Policies (continued) Revision of Previously Issued Financial Statements (continued The table below presents the impact of the revision of the Company’s financial statements as of December 31, 2024 and June 30, 2024: Consolidated balance sheet As previously reported Correction Revised (in thousands) December 31, 2024 Current portion of long-term borrowings $ 68,300 $ 11,453 $ 79,753 Long-term borrowings $ 80,357 $ (11,453) $ 68,904 June 30, 2024 Current portion of long-term borrowings $ 3,878 $ 11,841 $ 15,719 Long-term borrowings $ 139,308 $ (11,841) $ 127,467 The correction of the misclassification 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. The effects of both the restatement relating to the correction of the misclassification of revenue and the revision relating to the correction of the misclassification of long-term borrowings have been corrected in all impacted tables and footnotes throughout these condensed consolidated financial statements. Recent accounting pronouncements adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance regarding Segment Reporting (Topic 280) to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the guidance enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. This guidance is effective for the Company beginning July 1, 2024 for its year ended June 30, 2025, and for interim periods commencing from July 1, 2025 (i.e. for the quarter ended September 30, 2025). Recent accounting pronouncements not yet adopted as of December 31, 2024 In December 2023, the FASB issued guidance regarding Income Taxes (Topic 740) to improve income tax disclosure requirements. The guidance requires entities, on an annual basis, to (1) disclose specific categories in the income tax rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pre-tax income or loss by the applicable statutory income tax rate). This guidance is effective for the Company beginning July 1, 2025. The Company is currently assessing the impact of this guidance on its financial statements and related disclosures. In November 2024, the FASB issued guidance regarding Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) which requires disaggregated disclosure of income statement expenses for public business entities. The guidance does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This guidance is effective for the Company beginning July 1, 2027. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statements and related disclosures.

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- Definition The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/275/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205/tableOfContent + Details
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