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Goodwill And Intangible Assets, Net
 12 Months Ended
Jun. 30, 2024
Goodwill And Intangible Assets, Net [Abstract]  
Goodwill And Intangible Assets, Net
10.
 
GOODWILL AND INTANGIBLE
 
ASSETS,
 
net
Goodwill
Summarized below is the movement in the carrying value of goodwill
 
for the years ended June 30, 2024, 2023 and 2022:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross value
Accumulated
impairment
Carrying value
Balance as of July 1, 2021
$
42,949
$
(13,796)
$
29,153
Acquisition of Connect (Note 3)
(2)
153,693
-
153,693
Foreign currency adjustment
(1)
(21,166)
977
(20,189)
Balance as of June 30, 2022
175,476
(12,819)
162,657
Impairment loss
-
(7,039)
(7,039)
Foreign currency adjustment
(1)
(22,857)
982
(21,875)
Balance as of June 30, 2023
152,619
(18,876)
133,743
Foreign currency adjustment
(1)
5,280
(472)
4,808
Balance as of June 30, 2024
$
157,899
$
(19,348)
$
138,551
(1) – The
 
foreign currency
 
adjustment represents
 
the effects
 
of the fluctuations
 
between the South
 
African Rand and
 
the Euro,
against the U.S. dollar on the carrying value.
(2) – Represents
 
goodwill arising from
 
the acquisition of
 
Connect and translated
 
at the foreign exchange
 
rate applicable on the
date the transaction became effective. This goodwill has been
 
allocated to the merchant reportable operating segment.
 
10.
 
GOODWILL AND INTANGIBLE
 
ASSETS,
 
net (continued)
Goodwill (continued)
Goodwill
 
associated
 
with
 
the
 
acquisition
 
of
 
Connect
 
represents the
 
excess
 
of
 
cost
 
over
 
the
 
fair
 
value
 
of
 
acquired
 
net assets.
Connect goodwill
 
is not deductible
 
for tax purposes.
 
See Note 3
 
for the allocation
 
of the purchase
 
price to the
 
fair value of
 
acquired
net assets.
Impairment loss
The Company assesses the carrying
 
value of goodwill for impairment
 
annually, or
 
more frequently,
 
whenever events occur and
circumstances change indicating
 
potential impairment. The Company
 
performs its annual impairment
 
test as at June 30 of
 
each year.
Except as discussed below,
no
 
goodwill has been impaired during the years ended June 30, 2024, 2023
 
and 2022, respectively.
Year ended
 
June 30, 2023 goodwill impairment loss
The Company
 
recognized an
 
impairment loss
 
of $
7.0
 
million as
 
a result
 
of its
 
annual impairment
 
analysis related
 
to goodwill
allocated
 
to
 
its
 
hardware/
 
software
 
support
 
business
 
within
 
its
 
merchant
 
operating
 
segment.
 
The
 
impairment
 
loss
 
resulted
 
from
 
a
reassessment
 
of
 
the
 
business’
 
growth
 
prospects
 
given
 
the
 
change
 
in
 
customer
 
demand
 
as
 
a
 
result
 
of
 
the
 
introduction
 
of
 
cheaper
hardware devices which incorporate
 
software widely adopted by our customers
 
customer-base, coupled with a challenging
 
economic
environment
 
in
 
South
 
Africa.
 
The
 
impairment
 
is
 
included
 
within
 
the
 
caption
 
impairment
 
loss
 
in
 
the
 
consolidated
 
statement
 
of
operations for the year ended June 30, 2023.
In order to determine the
 
amount of the goodwill
 
impairment, the estimated fair value
 
of our hardware/ software support business
assets and liabilities were compared to the carrying
 
value of its assets and liabilities.
 
The Company used a discounted cash flow model
in order
 
to determine
 
the fair
 
value of
 
the business.
 
Based on
 
this analysis,
 
the Company
 
determined that
 
the carrying
 
value of
 
the
business’ assets and liabilities exceeded their fair value at the reporting date.
In the event that there is a deterioration in the Company’s operating segments, or in any other of the Company’s
 
businesses, this
may lead
 
to impairments
 
in future
 
periods.
 
Furthermore, the
 
difficulties of
 
integrating acquired
 
businesses may
 
be increased
 
by the
necessity of integrating personnel with disparate
 
business backgrounds and combining different corporate cultures. The
 
Company also
may not be able to retain key employees or
 
customers of an acquired business or realize cost
 
efficiencies or synergies or other benefits
that it
 
anticipated when
 
selecting its
 
acquisition candidates.
 
Acquisition candidates
 
may have
 
liabilities or
 
adverse operating
 
issues
that the Company fails to discover through due diligence prior to the acquisition. These factors may also lead to impairments in future
periods.
Goodwill has been allocated to the Company’s
 
reportable segments as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
Merchant
Carrying value
Balance as of July 1, 2021
$
-
$
29,153
$
29,153
Acquisition of Connect (Note 3)
-
153,693
153,693
Foreign currency adjustment
(1)
-
(20,189)
(20,189)
Balance as of June 30, 2022
-
162,657
162,657
Impairment loss
-
(7,039)
(7,039)
Foreign currency adjustment
(1)
-
(21,875)
(21,875)
Balance as of June 30, 2023
-
133,743
133,743
Foreign currency adjustment
(1)
-
4,808
4,808
Balance as of June 30, 2024
$
-
$
138,551
$
138,551
(1) –
 
The foreign
 
currency adjustment
 
represents the
 
effects of
 
the fluctuations
 
between the
 
South African
 
rand and
 
the Euro,
against the U.S. dollar on the carrying value.
10.
 
GOODWILL AND INTANGIBLE
 
ASSETS,
 
net
Intangible assets
Intangible assets acquired
Summarized below
 
is the
 
fair value
 
of intangible
 
assets acquired,
 
translated at
 
the exchange
 
rate applicable
 
as of
 
the relevant
acquisition dates, and the weighted-average amortization period:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value as of
acquisition date
Weighted-average
amortization
period (in years)
Finite-lived intangible asset:
Acquired during the year ended June 30, 2022:
Connect – integrated platform
$
142,981
10
 
Connect – customer relationships
20,516
8
 
Connect – brands
$
15,987
10
Impairment loss
The Company
 
assesses the carrying
 
value of
 
intangible assets
 
for impairment
 
whenever events
 
occur or
 
circumstances change
indicating that the carrying amount of the intangible asset may not be recoverable.
No
 
intangible assets have been impaired during the
years ended June 30, 2024, 2023 and 2022, respectively.
Summarized below is the carrying value and accumulated amortization of the intangible assets as of June 30, 2024, and June 30,
2023:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2024
As of June 30, 2023
Gross
carrying
value
Accumulated
amortization
Net
carrying
value
Gross
carrying
value
Accumulated
amortization
Net
carrying
value
Finite-lived intangible assets:
Customer relationships
$
25,880
$
(14,030)
$
11,850
$
24,978
$
(11,565)
$
13,413
Software, integrated
platform and unpatented
technology
115,213
(25,763)
89,450
110,906
(13,711)
97,195
FTS patent
 
2,107
(2,107)
-
2,034
(2,034)
-
Brands and trademarks
 
14,353
(4,300)
10,053
13,852
(2,863)
10,989
Total finite-lived
intangible assets
 
$
157,553
$
(46,200)
$
111,353
$
151,770
$
(30,173)
$
121,597
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate
 
amortization
 
expense on
 
the finite-lived
 
intangible assets
 
for
 
the
 
years
 
ended June
 
30,
 
2024,
 
2023
 
and
 
2022,
 
was
approximately $
14.4
 
million, $
15.0
 
million and $
3.8
 
million, respectively.
Future estimated annual amortization expense for the next five
 
fiscal years and thereafter, using the exchange rates that prevailed
on June
 
30, 2024, is
 
presented in the
 
table below.
 
Actual amortization
 
expense in future
 
periods could differ
 
from this estimate
 
as a
result of acquisitions, changes in useful lives, exchange rate fluctuations and other
 
relevant factors.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2025
$
14,945
Fiscal 2026
14,944
Fiscal 2027
14,888
Fiscal 2028
14,853
Fiscal 2029
14,743
Thereafter
36,980
Total future
 
estimated annual amortization expense
$
111,353