Inventory

12 Months Ended

Jun. 30, 2023

Inventory [Abstract]

Inventory

5. INVENTORY

The Company’s inventory comprised the following categories as of June 30, 2023, and 2022.

June 30,

June 30,

2023

2022

Raw materials

$

2,819

$

2,446

Work in progress

30

147

Finished goods 

24,488

31,633

$

27,337

$

34,226

As of June 30, 2023 and 2022, finished goods includes $

8.6

 million and $

13.7

 million, respectively, of Cell C airtime inventory

that was previously classified as finished goods subject to sale restrictions. In support of Cell C’s liquidity position and pursuant to

Cell C’s recapitalization process, the Company limited the resale of this airtime to its own distribution channels. On September 30,

2022, Cell C concluded its recapitalization process and the Company and Cell C entered into an agreement under which Cell C agreed

to repurchase, from October 2023, up to ZAR

10

 million of Cell C inventory from the Company per month. The amount to be

repurchased by Cell C will be calculated as ZAR

10

 million less the face value of any sales made by the Company during that month.

The Company continued to sell a minimum amount of Cell C airtime through its internal channels in late fiscal 2022/ early fiscal 2023

in support of Cell C’s liquidity position. However, its ability to sell this airtime has increased significantly since the acquisition of

Connect because Connect is a significant reseller of Cell C airtime. As a result, the Company has sold higher volumes of airtime

through this channel than it did prior to the Cell C recapitalization, however, continued sales at these volumes is dependent on

prevailing conditions continuing in the airtime market. If the Company is able to sell at least ZAR

10

 million a month through this

channel from October 1, 2023, then Cell C would not be required to repurchase any airtime from the Company during any specific

month. The Company has agreed to notify Cell C prior to selling any of this airtime, however, there is no restriction placed on the

Company on the sale of the airtime.