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Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net

3 Months Ended

Sep. 30, 2022

Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract]

Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net

2. Accounts receivable, net and other receivables and finance loans receivable, net

Accounts receivable, net and other receivables

The Company’s accounts receivable, net, and other receivables as of September 30, 2022, and June 30, 2022, are presented in the table below:

		September 30,		June 30,
		2022		2022

Accounts receivable, trade, net		$	12,332	$	13,904
Accounts receivable, trade, gross			12,604		14,413
Allowance for doubtful accounts receivable, end of period			272		509
	Beginning of period		509		267
	Reversed to statement of operations		(3)		(133)
	Charged to statement of operations		422		779
	Utilized		(414)		(154)
	Foreign currency adjustment		(242)		(250)

Current portion of amount outstanding related to sale of interest in Carbon, net of allowance: September 2022: $250			-		-
Loans provided to Carbon, net of allowance: June 2022: $3,000			-		-
Current portion of total held to maturity investments			-		-
	Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes		-		-
Other receivables			17,024		14,994
	Total accounts receivable, net and other receivables	$	29,356	$	28,898

Current portion of amount outstanding related to sale of interest in Carbon represents the amount due from the purchaser related to the sale of Carbon Tech Limited (“Carbon”), an equity-accounted investment of $0.25 million, net of an allowance for doubtful loans receivable of $0.25 million, refer to Note 5 for additional information.

The loan of $3.0 million provided to Carbon was scheduled to be repaid before June 30, 2020, however, Carbon requested a payment holiday as a result of the impact of the COVID-19 pandemic on its business. The parties had not agreed to new repayment terms as of June 30, 2022. In June 2021, the Company determined to create an allowance for doubtful loans receivable of $3.0 million due to these circumstances and the ongoing operating losses incurred by Carbon. The loan was sold in September 2022 for $0.75 million (refer to Note 5).

Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes represents the investment in a note which was due to mature in August 2022 and formed part of Cell C’s capital structure. The carrying value as of each of September 30, 2022 and June 30, 2022, respectively was $0 (nil).

Other receivables includes prepayments, deposits, income taxes receivable and other receivables, as well as transactions-switching funds receivable of $3.2 million which was received in full in November 2022.

Contractual maturities of held to maturity investments

Summarized below is the contractual maturity of the Company’s held to maturity investment as of September 30, 2022:

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).

Finance loans receivable, net

The Company’s finance loans receivable, net, as of September 30, 2022, and June 30, 2022, is presented in the table below:

		September 30,			June 30,
		2022			2022

Microlending finance loans receivable, net		$	18,227	$		20,058
Microlending finance loans receivable, gross			19,494			21,452
Allowance for doubtful finance loans receivable, end of period			1,267			1,394
	Beginning of period		1,394			2,349
	Reversed to statement of operations		-			(805)
	Charged to statement of operations		264			1,268
	Utilized		(258)			(1,179)
	Foreign currency adjustment		(133)			(239)


Merchant finance loans receivable, net			15,257			13,834
Merchant finance loans receivable, gross			15,770			14,131
Allowance for doubtful finance loans receivable, end of period			513			297
	Beginning of period		297			-
	Reversed to statement of operations		(3)			-
	Charged to statement of operations		366			442
	Utilized		-			-
	Foreign currency adjustment		(147)			(145)


	Total finance loans receivable, net	$	33,484	$		33,892

Total finance loans receivable, net, comprises microlending finance loans receivable related to the Company’s microlending operations in South Africa as well as its merchant finance loans receivable related to Connect’s lending activities in South Africa. Certain merchant finance loans receivable have been pledged as security for the Company’s revolving credit facility (refer to Note 8).