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Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
 12 Months Ended
Jun. 30, 2024
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract]  
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
4.
 
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
 
June 30,
 
2024, and June
 
30, 2023, are
 
presented in the
table below:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
June 30,
2024
2023
Accounts receivable, trade, net
 
$
13,262
$
11,037
Accounts receivable, trade, gross
 
14,503
11,546
Allowance for credit losses, end of period
1,241
509
Beginning of period
509
509
Reallocation to allowance for credit losses
(1)
-
(418)
Reversed to statement of operations
(511)
(31)
Charged to statement of operations
 
1,305
2,005
Utilized
 
(67)
(1,645)
Foreign currency adjustment
 
5
89
Current portion of amount outstanding related to sale of interest in Carbon,
 
net of
allowance: 2024: $
750
 
2023: $
1,000
-
-
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
 
23,405
14,628
Total accounts receivable,
 
net
 
$
36,667
$
25,665
(1) Represents reallocation
 
of a portion of
 
the Merchant allowance for
 
credit losses as of
 
June 30, 2022, which
 
was included in
the allowance for credit losses as of June 30, 2022.
Trade receivables include amounts
 
due from customers
 
which generally have
 
a very
 
short-term life from
 
date of invoice
 
or service
provided to settlement. The duration
 
is less than a year in all cases and
 
generally less than 30 days in many
 
instances. The short-term
nature
 
of
 
these
 
exposures
 
often
 
results
 
in
 
balances
 
at
 
month-end
 
that
 
are
 
disproportionately
 
small
 
compared
 
to
 
the
 
total
 
invoiced
amounts.
 
The
 
month-end
 
outstanding
 
balance
 
are
 
more
 
volatile
 
than
 
the
 
monthly
 
invoice
 
amounts
 
because
 
they
 
are
 
affected
 
by
operational timing issues and
 
the fact that a balance
 
is outstanding at month-end
 
is not necessarily an indication
 
of increased risk but
rather a matter of operational timing.
Credit risk in respect of trade receivables are generally not
 
significant and the Company has not developed a sophisticated model
for these basic
 
credit exposures. The
 
Company determined to
 
use a lifetime
 
loss rate by
 
expressing write-off experience as
 
a percentage
of corresponding
 
invoice amounts
 
(as opposed
 
to outstanding
 
balances). The
 
allowance for credit
 
losses related to
 
these receivables
has
 
been
 
calculated
 
by
 
multiplying
 
the
 
lifetime
 
loss
 
rate
 
with
 
recent
 
invoice/origination
 
amounts.
 
Management
 
actively
 
monitors
performance of these receivables over
 
short periods of time. Different
 
balances have different rules to
 
identify an account in distress.
Once balances
 
in distress are
 
identified, specific
 
allowances are immediately
 
created. Subsequent
 
recovery from distressed
 
accounts
is not significant.
Current portion of amount outstanding related to sale of interest in Carbon represents the amount due from the purchaser related
to the sale of
 
the Company’s interest in Carbon Tech Limited (“Carbon”),
 
which was accounted for
 
as an equity-accounted investment,
of $
0.25
 
million, net of an allowance for doubtful loans receivable of $
0.25
 
million as of June 30, 2023, and an amount due related to
the sale of
 
the loan,
 
with a face
 
value of
 
$
3.0
 
million, which was
 
sold in September
 
2022 for
 
$
0.75
 
million, net of
 
an allowance
 
for
doubtful loans
 
receivable of
 
$
0.75
 
million, refer
 
to Note 9
 
for additional
 
information. The Company
 
received the
 
outstanding $
0.25
million
 
related
 
to the
 
sale of
 
the equity
 
-accounted
 
investment in
 
October
 
2023,
 
and
 
has reversed
 
the allowance
 
for
 
doubtful
 
loans
receivable of
 
$
0.25
 
million during
 
the year
 
ended June
 
30, 2024.
 
The Company
 
has not
 
yet received
 
the outstanding
 
$
0.75
 
million
related to the sale of the $
3.0
 
million loan, and continues to engage with the purchaser to recover
 
the outstanding balance.
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
 
forms part of
 
Cell C’s
 
capital structure. The
 
carrying value as
 
of each of
 
June 30, 2024
 
and 2023,
respectively was $
0
 
(zero).
No
 
interest income from the Cedar Cellular note was recorded during the years ended June 30, 2024, 2023
and 2022, respectively.
 
Interest, if any,
 
on this investment
 
will only be
 
paid, at Cedar
 
Cellular’s election, on
 
its maturity which
 
is in
the process of being extended beyond its original date of August 2022.
 
4.
 
ACCOUNTS RECEIVABLE,
 
net AND OTHER RECEIVABLES
 
and FINANCE LOANS RECEIVABLE,
 
net
(continued)
Accounts receivable, net and other receivables (continued)
The Company does not expect
 
to recover the amortized cost
 
basis of the Cedar
 
Cellular notes due to its
 
assessment that the equity
in Cell
 
C currently
 
has no
 
value
 
which
 
would
 
result in
 
there
 
being
 
no future
 
cash flows
 
to be
 
collected
 
from
 
the debt
 
security
 
on
maturity.
 
The Company could
 
not calculate an
 
effective interest
 
rate on the
 
Cedar Cellular note
 
because the carrying
 
value was zero
($
0.0
 
million) as of June 30, 2024 and 2023. The Company
 
therefore could not calculate the present value of the expected cash flows
to be collected from the debt security by discounting these cash flows at the interest rate implicit in the security upon acquisition (at a
rate of
24.82
%) because there are no future cash flows to discount.
Other receivables include prepayments, deposits, income taxes receivable and
 
other receivables.
Contractual maturities of held to maturity investments
Summarized below is the contractual maturity of the Company’s
 
held to maturity investment as of June 30, 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost basis
Estimated
fair
value
(1)
Due in one year or less
(2)
$
-
$
-
Due in one year through five years
-
-
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 June 30, 2024, and June 30, 2023, is presented in the table
 
below:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
June 30,
2024
2023
Microlending finance loans receivable, net
$
28,184
$
20,605
Microlending finance loans receivable, gross
30,131
22,037
Allowance for credit losses - finance loans receivable, end of period
1,947
1,432
Beginning of period
1,432
1,394
Reversed to statement of operations
 
(210)
-
Charged to statement of operations
 
2,454
1,452
Utilized
 
(1,795)
(1,214)
Foreign currency adjustment
 
66
(200)
Merchant finance loans receivable, net
15,874
16,139
Merchant finance loans receivable, gross
18,571
18,289
Allowance for credit losses - finance loans receivable, end of period
2,697
2,150
Beginning of period
2,150
297
Reallocation from allowance for credit losses
(1)
-
418
Reversed to statement of operations
 
(359)
(1,268)
Charged to statement of operations
 
2,479
3,068
Utilized
 
(1,672)
-
Foreign currency adjustment
 
99
(365)
Total finance
 
loans receivable, net
 
$
44,058
$
36,744
(1) Represents reallocation of
 
a portion of the
 
Merchant allowance for credit losses
 
- finance loans receivable
 
as of June 30,
 
2022,
which was included in the allowance for credit losses as of June 30, 2022.
 
4.
 
ACCOUNTS RECEIVABLE,
 
net AND OTHER RECEIVABLES
 
and FINANCE LOANS RECEIVABLE,
 
net
(continued)
Finance loans receivable, net (continued)
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 with
 
an aggregate balance
 
of $
15.2
 
million as
 
of June 30,
 
2024 have been
 
pledged as security
for the Company’s revolving
 
credit facility (refer to Note 12).
Allowance for credit losses
Microlending finance loans receivable
Microlending finance loans receivable is related to the Company’s
 
microlending operations in South Africa whereby it provides
unsecured short-term
 
loans to qualifying
 
customers. Loans to customers
 
have a tenor
 
of up to
six months
, with the majority
 
of loans
originated having
 
a tenor of
six months
. The Company
 
analyses this lending
 
book as a
 
single portfolio
 
because the
 
loans within the
portfolio have similar characteristics and management uses similar processes to monitor and assess
 
the credit risk of the lending book.
 
Refer to Note 6 related to the Company risk management process related to these
 
receivables.
 
The Company has operated this lending book for more than
five years
 
and uses historical default experience over the lifetime of
loans in order
 
to calculate a
 
lifetime loss rate
 
for the lending
 
book. The allowance
 
for credit losses
 
related to these
 
microlending finance
loans receivables
 
is calculated
 
by multiplying
 
the lifetime
 
loss rate
 
with the
 
month end
 
outstanding lending
 
book. The
 
lifetime loss
rate as of each
 
of July 1, 2023
 
and June 30,
 
2024, was
6.50
%. The performing
 
component (that is, outstanding
 
loan payments not
 
in
arrears) of the book exceeds more than
98
% of outstanding lending book as of June 30, 2024.
Merchant finance loans receivable
Merchant finance loans
 
receivable is related
 
to the Company’s
 
Merchant lending activities
 
in South Africa
 
whereby it provides
unsecured
 
short-term loans
 
to qualifying
 
customers. Loans
 
to customers
 
have a
 
tenor of
 
up to
twelve months
, with
 
the majority
 
of
loans originated having a tenor of approximately
eight months
. The Company analyses this lending book as a single portfolio because
the loans within the portfolio have similar characteristics and management uses similar processes to monitor and assess the credit risk
of the lending book.
 
Refer to Note 6 related to the Company risk management process related to these receivables.
The
 
Company
 
has
 
recently
 
(in
 
the
 
past
three years
)
 
commenced
 
lending
 
to
 
merchant
 
customers
 
and
 
uses
 
historical
 
default
experience over
 
the lifetime of
 
loans generated thus
 
far in order
 
to calculate a
 
lifetime loss rate
 
for the lending
 
book. The allowance
for credit losses related to these merchant finance loans receivables
 
is calculated by adding together actual receivables in
 
default plus
multiplying the lifetime
 
loss rate with the
 
month-end outstanding lending
 
book. The lifetime loss
 
rate as of each
 
of July 1, 2023
 
and
June
 
30,
 
2024,
 
was
 
approximately
1.18
%.
 
The
 
performing
 
component
 
(that
 
is,
 
outstanding
 
loan
 
payments
 
not
 
in
 
arrears),
 
under-
performing
 
component (that
 
is, outstanding
 
loan payments
 
that are
 
in arrears)
 
and non-performing
 
component (that
 
is, outstanding
loans
 
for
 
which
 
payments
 
appeared
 
to have
 
ceased)
 
of the
 
book represents
 
approximately
84
%,
15
% and
1
%,
 
respectively,
 
of the
outstanding lending book as of June 30, 2024.