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Basis Of Presentation And Summary Of Significant Accounting Policies | 6 Months Ended
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Dec. 31, 2025
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] |
Basis Of Presentation And Summary Of Significant Accounting Policies | 1. Basis of Presentation 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, 2025 and 2024, 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, 2025. 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. Revision of Previously Issued Financial Statements Understatement of cost and accumulated depreciation for computer equipment In October 2025, the Company identified that it had understated its June 30, 2025, amounts of cost and accumulated depreciation for computer equipment as well as the totals for cost and accumulated depreciation by $ 6.5 million in the notes to the audited consolidated financial statements for the years ended June 30, 2025, 2024 and 2023. The carrying value of property, plant and equipment reported as of June 30, 2025, was not impacted by the error. The Company has recast its accumulated depreciation presented on the condensed consolidated balance sheet as of June 30, 2025, to increase the amount from $ 48,636 to $ 55,086 . 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. Understatement of cost of goods sold, IT processing, servicing and support due to incorrect claim of indirect taxes Subsequent to the issuance of the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2025, it determined that its certain indirect taxes had not been accounted for correctly in its consolidated balance sheet, consolidated statements of operations, consolidated statement of comprehensive loss, consolidated statement of changes in equity, consolidated statement of cash flows and related notes to the consolidated financial statements included in previously filed Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q since June 30, 2022, and these filings were incorrect. In these previous filings, the amount of certain indirect taxes were incorrectly claimed in monthly indirect tax submission to the taxing authority and were incorrectly excluded from the Company’s reported cost of goods sold, IT processing, servicing and support in the consolidated statements of operations and other payables and retained earnings in the consolidated balance sheet. The corrected presentation in the revised consolidated financial statements includes certain indirect taxes in cost of goods sold, IT processing, servicing and support in the consolidated statements of operations and other payables and retained earnings in the consolidated balance sheet The Company has also determined that it may also be liable for penalties and interest related to the indirect taxes not paid in a timely manner and has recorded the penalties in the selling, general and administration expense and the interest in interest expense in the revised consolidated statements of operations. The cumulative sum of the penalties and interest are included in other payables and retained earnings in the revised consolidated balance sheet. The Company has determined that at this time it is more likely than not that it will be unable to claim an income tax deduction related to the error, however, it is performing further analysis of its tax position with its external tax advisors. Therefore, there are no income tax adjustments reflected in these condensed consolidated financial statements related to the correction of this error. 1. Basis of Presentation and Summary of Significant Accounting Policies (continued) Revision of Previously Issued Financial Statements (continued) Understatement of cost of goods sold, IT processing, servicing and support due to incorrect claim of indirect taxes (continued) The Company assessed the materiality of this error and change in presentation on prior period consolidated financial statements in accordance with 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 Company has revised the previous presentations on the condensed consolidated statements of operations for the three and six months ended December 31, 2024, and corrected them in this filing. The Company has also included the impact of the correction for the three months ended September 30, 2025, in the condensed consolidated statements of operations for the six months ended December 31, 2025, included in this filing. The impact of these revisions has increased cost of goods sold, IT processing, servicing and support, selling, general and administration expense and interest expense, and all subtotals from operating income (loss) to net income (loss) attributable to Lesaka for the affected periods. Specifically, for the six months ended December 31, 2025, Cost of goods sold, IT processing, servicing and support increased by $ 0.18 million, Selling, general and administration expense increased by $ 0.06 million, Operating income decreased by $ 0.25 million, Interest expense increased by $ 0.12 million, and Net income (loss) attributable to Lesaka decreased by $ 0.36 million, as a result of the correction to amounts reported for the three months ended September 30, 2025. Basic and Diluted loss per share for the six months ended December 31, 2025, were not impacted by the correction to amounts reported for the three months ended September 30, 2025. The Company has revised the condensed consolidated balance sheet as of June 30, 2025, and corrected it in this filing where these amounts are presented as comparative prior period amounts in other payables and retained earnings and affected subtotals and totals. The tables below present the impact of the revisions to specific captions to the Company’s condensed consolidated balance sheet and condensed consolidated statement of operations for the periods identified. Condensed consolidated balance sheet June 30, 2025 As reported Correction As revised Other payables $ 72,079 $ 3,956 $ 76,035 Accumulated other comprehensive loss (185,664) 38 (185,626) Retained earnings 222,719 (3,994) 218,725 Condensed consolidated statement of operations Three months ended December 31, 2024 As reported Correction As revised (in thousands, except per share data) Cost of goods sold, IT processing, servicing and support $ 130,696 $ 170 $ 130,866 Selling, general and administration 33,777 60 33,837 Interest expense 6,174 92 6,266 Basic income (loss) per share attributable to Lesaka shareholders $ (0.40) $ - $ (0.40) Diluted income (loss) per share attributable to Lesaka shareholders $ (0.40) $ - $ (0.40) Condensed consolidated statement of operations Six months ended December 31, 2024 As reported Correction As revised (in thousands, except per share data) Cost of goods sold, IT processing, servicing and support $ 249,605 $ 336 $ 249,941 Selling, general and administration 58,976 118 59,094 Interest expense 11,206 176 11,382 Basic income (loss) per share attributable to Lesaka shareholders $ (0.51) $ (0.01) $ (0.52) Diluted income (loss) per share attributable to Lesaka shareholders $ (0.51) $ (0.01) $ (0.52) 1. Basis of Presentation and Summary of Significant Accounting Policies (continued) Recent accounting pronouncements adopted In December 2023, the Financial Accounting Standards Board (“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 was effective for the Company beginning July 1, 2025 for its year ended June 30, 2026. Recent accounting pronouncements not yet adopted as of December 31, 2025 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. In July 2025, the FASB issued guidance regarding Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets which amends current guidance to provide a practical expedient (for all entities) and an accounting policy election (for all entities, other than public business entities, that elect the practical expedient) related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Revenue From Contracts With Customers (Topic 606). This guidance is effective for the Company beginning July 1, 2026, and interim reporting periods during that fiscal year. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statements and related disclosures. On September 18, 2025, the FASB issued guidance regarding Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) which amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. The new guidance makes targeted improvements to existing guidance but does not fully align the framework for accounting for internally developed software costs that are subject to ASC 350-40 with the framework applied to software to be sold or marketed externally that is subject to guidance regarding Costs of Software to Be Sold, Leased, or Marketed (Subtopic ASC 985-20) . The new guidance also does not amend the guidance on costs of software licenses that are within the scope of ASC 985 -20. The amendments supersede the guidance on website development costs in guidance regarding Website Development Costs (Subtopic ASC 350-50) and relocate that guidance, along with the recognition requirements for development costs specific to websites, to ASC 350 -40. This guidance is effective for the Company beginning July 1, 2028, and interim reporting periods during that fiscal year. Early adoption is permitted. Entities may apply the guidance prospectively, retrospectively, or via a modified prospective transition method. The modified prospective transition approach would allow entities to account for an in-process project that, before the transition date, met the capitalization requirements but would no longer meet the requirements for capitalization under the new guidance by derecognizing the capitalized costs for that in-process project through a cumulative-effect adjustment to the opening balance of retained earnings. The Company is currently assessing the impact of this guidance on its financial statements and related disclosures. On December 8, 2025, the FASB issued guidance regarding Interim Reporting (Topic 270) which is intended to improve the navigability of the guidance in ASC 270 and clarify when it applies. Under the amendments, an entity is subject to ASC 270 if it provides “interim financial statements and notes in accordance with GAAP.” The updated guidance also addresses the form and content of such financial statements, adds lists to ASC 270 of the interim disclosures required by all other Codification topics, and establishes a principle under which an entity must “disclose events since the end of the last annual reporting period that have a material impact on the entity.” As the FASB stated in the proposed guidance and reiterates in the ASU, the amendments are not intended to “change the fundamental nature of interim reporting or expand or reduce current interim disclosure requirements.” This guidance is effective for the Company beginning July 1, 2028, and interim reporting periods during that fiscal year. Early adoption is permitted. Entities m ay apply the guidance prospectively, retrospectively, or via a modified prospective transition method.

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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://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483426/235-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 205 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205/tableOfContent + Details
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