Operating Segments

3 Months Ended

Sep. 30, 2022

Operating Segments [Abstract]

Operating Segments

17.Operating segments

Operating segments

The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, and the countries in which the entity holds material assets or reports material revenues. A description of the Company’s operating segments is contained in Note 21 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2022.

The reconciliation of the reportable segment’s revenue to revenue from external customers for the three months ended September 30, 2022 and 2021, is as follows:

			Revenue
			Reportable Segment			Inter-segment		From external customers
Consumer			$	15,004	$	-	$	15,004
Merchant				109,437		29		109,408
Other				374		-		374
	Total for the three months ended September 30, 2022		$	124,815	$	29	$	124,786
Consumer			$	17,164	$	-	$	17,164
Merchant				17,072		159		16,913
Other				427		-		427
		Total for the three months ended September 30, 2021	$	34,663	$	159	$	34,504

The Company evaluates segment performance based on segment earnings before interest, tax, depreciation and amortization (“EBITDA”), adjusted for items mentioned in the next sentence (“Segment Adjusted EBITDA”). The Company does not allocate depreciation and amortization, impairment of goodwill or other intangible assets, certain lease charges (“Lease adjustments”), other items (including gains or losses on disposal of investments, fair value adjustments to equity securities, stock-based compensation charges, fair value adjustments to currency options), interest income, interest expense, income tax expense or loss from equity-accounted investments to its reportable segments. The Lease adjustments reflect lease charges and the Stock-based compensation adjustments reflect stock-based compensation expense and are both excluded from the calculation of Segment Adjusted EBITDA and are therefore reported as reconciling items to reconcile the reportable segments’ Segment Adjusted EBITDA to the Company’s loss before income tax expense.

The reconciliation of the reportable segments’ measures of profit or loss to loss before income tax expense for the three months ended September 30, 2022 and 2021, is as follows:

				Three months ended
				September 30,
			2022		2021
Reportable segments measure of profit or loss			$	6,499	$	(7,281)
	Operating loss: Corporate/Eliminations			(2,898)		(1,816)
	Lease adjustments			(812)		(924)
	Stock-based compensation charge adjustments			(1,462)		(309)
	Depreciation and amortization			(5,998)		(895)
	Gain on disposal of equity-accounted investments			248		-
	Interest income			411		389
	Interest expense			(4,036)		(816)
		Loss before income tax expense (benefit)	$	(8,048)	$	(11,652)

17.Operating segments (continued)

The following tables summarize segment information that is prepared in accordance with GAAP for the three months ended September 30, 2022 and 2021:

							Three months ended
							September 30,
						2022		2021
Revenues
	Consumer					$	15,004	$	17,164
	Merchant						109,437		17,072
	Other						374		427
		Total reportable segment revenue					124,815		34,663
Segment Adjusted EBITDA
	Consumer						(1,394)		(9,356)
	Merchant						7,852		1,932
	Other						41		143
		Total Segment Adjusted EBITDA					6,499		(7,281)
		Corporate/Eliminations					(2,898)		(1,816)
			Subtotal				3,601		(9,097)
				Less: Lease adjustments			812		924
				Less: Stock-based compensation adjustments			1,462		309
				Less: Depreciation and amortization			5,998		895
					Total operating loss		(4,671)		(11,225)
Depreciation and amortization
	Consumer						245		652
	Merchant						1,789		210
	Other						12		15
		Subtotal: Operating segments					2,046		877
		Corporate/Eliminations					3,952		18
			Total				5,998		895
Expenditures for long-lived assets
	Consumer						628		642
	Merchant						3,868		56
	Other						5		-
		Subtotal: Operating segments					4,501		698
		Corporate/Eliminations					-		-
			Total			$	4,501	$	698

The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented.