Inventory

9 Months Ended

Mar. 31, 2020

4. Inventory

The Company’s inventory comprised the following categories as of March 31, 2020, and June 30, 2019

	March 31,			June 30,
		2020		2019

Finished goods	$	4 133	$	5 709
Finished goods subject to sale restrictions		15 195		-
	$	19 328	$	5 709

Finished goods subject to sale restrictions represents the sum of (i) $ 10,7 million purchased in September 2019, related to airtime inventory purchased and held for sale to customers that may only be sold by the Company with the express permission of certain South African banks prior to April 1, 2020, and (ii) $ 4,5 million purchased in March 2020, related to airtime inventory purchased that may only be sold by the Company from October 1, 2020.

As discussed in Note 10, the Company obtained additional borrowings from its existing bankers in September 2019 to purchase Cell C airtime from an independent distributor of Cell C airtime. The Company did not pay the vendor for the airtime inventory directly because the parties (the vendor, Cell C, the Company and certain South African banks) agreed that the Company would pay the amount to Cell C to settle amounts payable to Cell C by the vendor in order to inject additional liquidity into Cell C. The Company may not return any unsold airtime inventory to either the vendor or Cell C. The Company agreed to mandatory prepayment terms, which required the Company to use the proceeds from the sale of the airtime inventory to settle certain borrowings, however, these borrowings were settled in full on April 1, 2020. For more information about the amended finance documents, refer to Note 10.