Equity-Accounted Investments And Other Long-Term Assets (Tables)

6 Months Ended

Dec. 31, 2023

Ownership Percentage Of Equity-Accounted Investments

December 31,

June 30,

2023

2023

Finbond Group Limited (“Finbond”)

-

%

27.8

%

Sandulela Technology (Pty) Ltd ("Sandulela")

49.0

%

49.0

%

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

50.0

%

50.0

%

Schedule Of Calculation Of Gain (Loss) On Disposal

Three months ended

Six months ended 

December 31,

December 31,

2023

2022

2023

2022

Loss on disposal of Finbond shares:

Consideration received in cash

$

3,508

$

138

$

3,508

$

141

Less: carrying value of Finbond shares sold

(2,112)

(157)

(2,112)

(160)

Less: release of foreign currency translation reserve from

accumulated other comprehensive loss

(1,543)

(97)

(1,543)

(99)

Add: release of stock-based compensation charge related to

equity-accounted investment

147

4

147

4

Loss on sale of Finbond shares

$

-

$

(112)

$

-

$

(114)

Three months

ended September

30,

2022

Gain on disposal of Carbon shares:

Consideration received in cash in September 2022

$

250

Less: carrying value of Carbon

-

Gain on disposal of Carbon shares:

(1)

$

250

(1) The Company does not expect to pay taxes related to the sale of Carbon because the base cost of its investment exceeds the

sales consideration received. The Company does not believe that it will be able to utilize the loss generated because Net1 BV does not

generate taxable income.

Summary Of Movement In Equity-Accounted Investments

Finbond

Other

(1)

Total

Investment in equity

Balance as of June 30, 2023

$

3,040

$

131

$

3,171

Stock-based compensation 

14

-

14

Comprehensive income:

(956)

83

(873)

Other comprehensive income

489

-

489

Equity accounted (loss) earnings

(1,445)

83

(1,362)

Share of net (loss) earnings

(278)

83

(195)

Impairment

(1,167)

-

(1,167)

Dividends received 

-

(54)

(54)

Disposal of Finbond shares

(2,096)

-

(2,096)

Foreign currency adjustment

(2)

(2)

1

(1)

Balance as of December 31, 2023

$

-

$

161

$

161

(1) Includes Sandulela, and SmartSwitch Namibia;

(2) The foreign currency adjustment represents the effects of the fluctuations of the ZAR and Namibian dollar, against the U.S.

dollar on the carrying value.

Summary Of Other Long-Term Asset

December 31,

June 30,

2023

2023

Total equity investments 

$

76,297

$

76,297

Investment in

5

% of Cell C (June 30, 2023:

5

%) at fair value (Note 4)

-

-

Investment in

10

% of MobiKwik (June 30, 2023:

10

%)

(1)

76,297

76,297

Investment in

87.5

% of CPS (June 30, 2023:

87.5

%) at fair value

(1)(2)

-

-

Policy holder assets under investment contracts (Note 7)

216

257

Reinsurance assets under insurance contracts (Note 7)

1,450

1,040

Total other long-term assets

$

77,963

$

77,594

(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.

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 (Note 2)

-

-

-

-

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