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Equity-Accounted Investments And Other Long-Term Assets (Tables)
 12 Months Ended
Jun. 30, 2022
Ownership Percentage Of Equity-Accounted Investments

 

 

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

 

 

2022

 

2021

 

Finbond Group Limited (“Finbond”)

29

%

 

31

%

 

Sandulela Technology Proprietary Limited ("Sandulela")

49

%

 

-

%

 

Carbon

25

%

 

25

%

 

SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”)

50

%

 

50

%
Summary Of Movement In Equity-Accounted Investments

 

 

 

 

 

 

 

 

Finbond

 

Bank Frick

 

Other(1)

 

Total

 

Investment in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2020

$

30,876

 

$

29,739

 

$

4,601

 

$

65,216

 

 

 

Stock-based compensation

 

(25)

 

 

-

 

 

-

 

 

(25)

 

 

 

Comprehensive (loss) income:

 

(23,976)

 

 

1,156

 

 

(4,025)

 

 

(26,845)

 

 

 

 

Other comprehensive income

 

(1,967)

 

 

-

 

 

-

 

 

(1,967)

 

 

 

 

Equity accounted (loss) earnings

 

(22,009)

 

 

1,156

 

 

(4,025)

 

 

(24,878)

 

 

 

 

 

Share of net income (loss)

 

(4,359)

 

 

1,156

 

 

(531)

 

 

(3,734)

 

 

 

 

 

Impairment

 

(17,650)

 

 

-

 

 

(3,494)

 

 

(21,144)

 

 

 

Dividends received

 

-

 

 

-

 

 

(194)

 

 

(194)

 

 

 

Sale of Bank Frick and Walletdoc

 

-

 

 

(32,892)

 

 

(13)

 

 

(32,905)

 

 

 

Foreign currency adjustment(2)

 

2,947

 

 

1,997

 

 

(187)

 

 

4,757

 

 

 

Balance as of June 30, 2021

 

9,822

 

 

-

 

 

182

 

 

10,004

 

 

 

Stock-based compensation

 

14

 

 

-

 

 

-

 

 

14

 

 

 

Comprehensive (loss) income:

 

(2,426)

 

 

-

 

 

16

 

 

(2,410)

 

 

 

 

Other comprehensive income

 

1,239

 

 

-

 

 

-

 

 

1,239

 

 

 

 

Equity accounted (loss) earnings

 

(3,665)

 

 

-

 

 

16

 

 

(3,649)

 

 

 

 

 

Share of net income (loss)

 

(3,665)

 

 

-

 

 

16

 

 

(3,649)

 

 

 

Dividends received

 

-

 

 

-

 

 

(155)

 

 

(155)

 

 

 

Sale of shares in equity-accounted investment

 

(630)

 

 

-

 

 

-

 

 

(630)

 

 

 

Equity-accounted investment acquired in business combination (Note 3)

 

-

 

 

-

 

 

74

 

 

74

 

 

 

Foreign currency adjustment(2)

 

(1,020)

 

 

-

 

 

(16)

 

 

(1,036)

 

 

Balance as of June 30, 2022

$

5,760

 

$

-

 

$

101

 

$

5,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2020

$

-

 

$

-

 

$

620

 

$

620

 

 

 

Loans repaid

 

-

 

 

-

 

 

(134)

 

 

(134)

 

 

 

Loans granted

 

-

 

 

-

 

 

1,238

 

 

1,238

 

 

 

Allowance for doubtful loans

 

-

 

 

-

 

 

(1,738)

 

 

(1,738)

 

 

 

Foreign currency adjustment(2)

 

-

 

 

-

 

 

14

 

 

14

 

 

Balance as of June 30, 2021

 

-

 

 

-

 

 

-

 

 

-

 

 

 

Foreign currency adjustment(2)

 

-

 

 

-

 

 

-

 

 

-

 

 

Balance as of June 30, 2022

$

-

 

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

Loans

 

Total

 

Carrying amount as of :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

 

 

$

10,004

 

$

-

 

$

10,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

 

 

$

5,861

 

$

-

 

$

5,861

(1) Includes Carbon, Sandulela, SmartSwitch Namibia, V2 and Walletdoc;

(2) The foreign currency adjustment represents the effects of the fluctuations of the Swiss franc, ZAR, Nigerian naira and Namibian dollar, against the U.S. dollar on the carrying value.

9.Equity-accounted investments and other long-term assets (continued)
Summary Financial Information Of Equity-Accounted Investments

 

 

 

 

 

 

 

 

 

Finbond(1)

Bank Frick(2)

DNI

Other(3)

 

Balance sheet, as of

 

 

February 28

 

June 30

 

June 30

 

Various

 

 

Current assets(4)

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

$

n/a

$

n/a

$

n/a

$

25,160

 

 

 

2021

 

 

n/a

 

n/a

 

n/a

 

24,151

 

 

Long-term assets

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

300,253

 

n/a

 

n/a

 

4,934

 

 

 

2021

 

 

278,941

 

n/a

 

n/a

 

5,013

 

 

Current liabilities(4)

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

n/a

 

n/a

 

n/a

 

28,025

 

 

 

2021

 

 

n/a

 

n/a

 

n/a

 

27,002

 

 

Long-term liabilities

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

234,154

 

n/a

 

n/a

 

5,733

 

 

 

2021

 

 

200,622

 

n/a

 

n/a

 

5,734

 

 

Non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

11,781

 

n/a

 

n/a

 

-

 

 

 

2021

 

 

13,090

 

-

 

n/a

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of operations, for the period ended

 

February 28

 

June 30(2)

 

June 30(5)

 

Various

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

80,656

 

n/a

 

n/a

 

4,100

 

 

 

2021

 

 

95,847

 

35,641

 

n/a

 

6,420

 

 

 

2020

 

 

161,378

 

37,864

 

68,983

 

7,842

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

(21,017)

 

n/a

 

n/a

 

323

 

 

 

2021

 

 

(18,980)

 

3,860

 

n/a

 

(2,406)

 

 

 

2020

 

 

17,483

 

4,815

 

24,563

 

(5,064)

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

(18,379)

 

n/a

 

n/a

 

182

 

 

 

2021

 

 

(15,466)

 

3,303

 

n/a

 

(2,534)

 

 

 

2020

 

 

14,449

 

4,053

 

17,092

 

(5,116)

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

(16,432)

 

n/a

 

n/a

 

182

 

 

 

2021

 

 

(17,889)

 

3,303

 

n/a

 

(2,534)

 

 

 

2020

 

$

6,433

$

4,053

$

15,772

$

(5,014)

(1) Finbond balances included were derived from its publicly available information and presented for its years ended February;

(2) Bank Frick disposed of in February 2021. Statement of operations information for Bank Frick is for the period from July 1, 2020 to January 31, 2021, and the full twelve months for fiscal 2020.

(3) Includes Carbon, SmartSwitch Namibia, Sandulela, Revix, Walletdoc and V2, as appropriate. Balance sheet information for Carbon, Sandulela, and SmartSwitch Namibia is as of June 30, 2022 and 2021, respectively. Statement of operations information for Carbon, SmartSwitch Namibia, Revix, and V2 for the year ended June 30, and Walletdoc for the year ended February 28/29 (as appropriate);

(4) Bank Frick and Finbond are banks and do not present current and long-term assets and liabilities. All assets and liabilities of these two entities are included under the long-term caption;

(5) Statement of operations information for DNI is for the period from July 1, 2019 to March 31, 2020.

9.Equity-accounted investments and other long-term assets (continued)
Summary Of Other Long-Term Asset

 

 

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

 

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity investments

$

76,297

 

$

76,297

 

 

 

Investment in 10% (2021: 11%) of MobiKwik(1)

 

76,297

 

 

76,297

 

 

 

Investment in 15% of Cell C, at fair value (Note 6)

 

-

 

 

-

 

 

 

Investment in 87.50% of CPS (Note 24)(1)(2)

 

-

 

 

-

 

Total held to maturity investments

 

-

 

 

-

 

 

 

Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes(3)

 

-

 

 

-

 

Long-term portion of amount due related to sale of interest in Bank Frick(4)

 

-

 

 

3,890

 

Policy holder assets under investment contracts (Note 11)

 

371

 

 

381

 

Reinsurance assets under insurance contracts (Note 11)

 

1,424

 

 

1,298

 

 

 

Total other long-term assets

$

78,092

 

$

81,866

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company determined that MobiKwik and CPS do not have readily determinable fair values and therefore elected to record these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

(2) On October 16, 2020, the High Court of South Africa, Gauteng Division, Pretoria ordered that CPS be placed into liquidation.

(3) The note is included in accounts receivable, net and other receivables as of June 30, 2022 (refer to Note 4).

(4) Long-term portion of amount due related to sale of interest in Bank Frick represents the amount that was due by the purchaser in July 2022, but was actually received in May 2022.
Summary Of Components Of Equity Securities Without Readily Determinable Fair Value And Held To Maturity Investments

 

 

 

 

 

 

 

 

 

 

 

Cost basis

 

 

Unrealized holding

 

 

Unrealized holding

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

 

 

gains

 

 

losses

 

 

value

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in Mobikwik

$

26,993

 

$

49,304

 

$

-

 

$

76,297

 

 

Investment in CPS

 

-

 

 

-

 

 

-

 

 

-

 

Held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in Cedar Cellular notes

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total

$

26,993

 

$

49,304

 

$

-

 

$

76,297

 

 

 

 

 

 

 

 

 

 

 

Cost basis

 

 

Unrealized holding

 

 

Unrealized holding

 

 

Carrying

 

 

 

 

 

 

 

 

 

 

 

 

 

gains

 

 

losses

 

 

value

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in MobiKwik

$

26,993

 

$

49,304

 

$

-

 

$

76,297

 

 

Investment in CPS

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in Cedar Cellular notes

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

Total

$

26,993

 

$

49,304

 

$

-

 

$

76,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary Of Contractual Maturity Of Investment

 

 

 

 

 

 

 

 

 

Cost basis

 

 

Estimated fair value(1)

 

 

Due in one year or less

$

-

 

$

-

 

 

Due in one year through five years(2)

 

-

 

 

-

 

 

Due in five years through ten years

 

-

 

 

-

 

 

Due after ten years

 

-

 

 

-

 

 

 

 

Total

$

-

 

$

-

 

(1) The estimated fair value of the Cedar Cellular note has been calculated utilizing the Company’s portion of the assets held by Cedar Cellular, namely, Cedar Cellular’s investment in Cell C.

(2) The cost basis is zero ($0.0 million).
Finbond Group Limited [Member]  
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

 

 

 

 

 

 

Year ended June 30

 

 

 

2022

 

 

Loss on disposal of Finbond shares:

 

 

 

 

Consideration received in cash

$

865

 

 

Less: carrying value of Finbond shares sold

 

(630)

 

 

Less: release of foreign currency translation reserve from accumulated other comprehensive loss

 

(620)

 

 

Add: release of stock-based compensation charge related to equity-accounted investment

 

9

 

 

 

Loss on sale of Finbond shares

$

(376)

 
Disposal Of DNI On April 1, 2020 [Member]  
Schedule Of Calculation Of Gain (Loss) On Disposal

 

 

 

 

 

 

April 1

 

 

 

2020

 

 

Consideration received in cash on April 1, 2020 - 26,886,310 shares

$

42,477

 

 

Consideration received with note on April 1, 2020 - present value of note - 3,508,455 shares

 

5,354

 

 

Less: transaction costs

 

(1,010)

 

 

Less: carrying value of DNI

 

(36,508)

 

 

Less: release of foreign currency translation reserve from accumulated other comprehensive loss

 

(11,323)

 

 

 

Loss on sale of DNI before tax

 

(1,010)

 

 

 

Taxes related to sale of DNI

 

-

 

 

 

 

Capital gains tax related to sale of DNI(1)

 

2,475

 

 

 

 

Utilization of capital loss carryforwards(1)

 

(2,475)

 

 

 

 

 

Loss on disposal of DNI after tax

$

(1,010)

 
Disposal Of Bank Frick on February 3, 2021 [Member]  
Schedule Of Calculation Of Gain (Loss) On Disposal

 

 

 

 

 

 

February

 

 

2021

 

Loss on sale of Bank Frick:

 

 

 

Consideration received in cash on February 3, 2021

$

18,600

 

Consideration received with note on February 3, 2021, refer to (Note 4)

 

11,400

 

Less: transaction costs

 

(42)

 

Less: carrying value of Bank Frick

 

(32,892)

 

Add: release of foreign currency translation reserve from accumulated other comprehensive loss

 

2,462

 

 

Loss on sale of Bank Frick(1)

$

(472)

(1) The Company did not pay taxes related to the sale of Bank Frick because the base cost of its investment exceeded the sales consideration received. The Company does not believe that it will be able to utilize any capital loss, if any, generated because Net1 LI does not own any other capital assets and has since been deregistered.