Discontinued Operations

6 Months Ended

Dec. 31, 2020

Discontinued Operations [Abstract]

Discontinued Operations

21.Discontinued operations

The Company determined that, following the disposal of its controlling interest, Net1 Korea (in fiscal 2020) and DNI (in fiscal 2019) should be classified as discontinued operations because the disposal of these businesses represented a strategic shift that would have a major effect on the Company’s operations and financial results. Refer to Note 3 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2020, for additional information regarding the deconsolidation of Net1 Korea and DNI.

The table below presents certain major captions to the Company’s unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows for three and six months ended December 31, 2019, that have not been separately presented on those statements related to the presentation of Net1 Korea as a discontinued operation:

Net1 Korea
	Three months ended		Six months ended
	December 31, 2019		December 31, 2019
Unaudited condensed consolidated statement of operations
Discontinued:
Revenue	$	33,513	$	66,331
Cost of goods sold, IT processing, servicing and support		14,765		29,131
Selling, general and administration		11,975		23,284
Depreciation and amortization		3,207		6,648
Operating income		3,566		7,268
Interest income		261		549
Interest expense		92		100
Net income before tax		3,735		7,717
Income tax expense		1,015		2,062
Net income from discontinued operations	$	2,720	$	5,655
Unaudited condensed consolidated statement of cash flows
Discontinued:
Total net cash provided by operating activities	$	4,371	$	14,565
Total net cash used in investing activities	$	(12,893)	$	(9,805)

The Company retained a continuing involvement in DNI following the disposal of the Company’s controlling interest during the year ended June 30, 2019. The Company recorded earnings under the equity method related to its retained investment in DNI during the six months ended December 31, 2019. The table below presents revenues and expenses between the Company and DNI, after the DNI disposal transaction, during the six months ended December 31, 2019:

DNI
	Three months ended		Six months ended
	December 31, 2019		December 31, 2019
Revenue generated from transactions with DNI	$	-	$	-
Expenses incurred related to transactions with DNI	$	333	$	2,607

The Company received dividends of $0.4 million and $1.1 million from DNI during the three and six months ended December 31, 2019, respectively.