Discontinued Operations

9 Months Ended

Mar. 31, 2021

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 nine months ended March 31, 2020, 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		Nine months ended
	March 31, 2020		March 31, 2020
Unaudited condensed consolidated statement of operations
Discontinued:
Revenue	$	19,044	$	85,375
Cost of goods sold, IT processing, servicing and support		8,246		37,377
Selling, general and administration		7,278		30,562
Depreciation and amortization		2,004		8,652
Operating income		1,516		8,784
Interest income		129		678
Interest expense		6		106
Net income before tax		1,639		9,356
Income tax expense		892		2,954
Net income from discontinued operations	$	747	$	6,402
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 nine months ended March 31, 2020. The table below presents revenues and expenses between the Company and DNI, after the DNI disposal transaction, during the nine months ended March 31, 2020:

DNI
	Three months ended		Nine months ended
	March 31, 2020		March 31, 2020
Revenue generated from transactions with DNI	$	-	$	-
Expenses incurred related to transactions with DNI	$	295	$	2,902

The Company received dividends of $0.7 million and $1.8 million from DNI during the three and nine months ended March 31, 2020, respectively.