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Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
 6 Months Ended
Dec. 31, 2024
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract]  
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
3.
 
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 December 31, 2024, and June 30, 2024, are presented in
the table below:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
June 30,
2024
2024
Accounts receivable, trade, net
 
$
21,407
$
13,262
Accounts receivable, trade, gross
 
23,258
14,503
Allowance for doubtful accounts receivable, end of period
1,851
1,241
Beginning of period
1,241
509
Reversed to statement of operations
(200)
(511)
Charged to statement of operations
 
1,385
1,305
Utilized
 
(493)
(67)
Foreign currency adjustment
 
(82)
5
Current portion of amount outstanding related to sale of interest in Carbon,
 
net of
allowance: December 2024: $
750
; June 2024: $
750
-
-
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
 
24,796
23,405
Total accounts receivable,
 
net and other receivables
$
46,203
$
36,667
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 an
 
amount due
 
related to
 
the sale
 
of the
loan in Carbon Tech
 
Limited (“Carbon”), 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. 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 December 31,
 
2024, and
June 30, 2024, respectively was $
0
 
(zero).
Other receivables include prepayments, deposits, income taxes receivable and
 
other receivables.
3.
 
Accounts receivable, net and other receivables and
 
finance loans receivable, net (continued)
Finance loans receivable, net
The Company’s finance
 
loans receivable, net, as of December 31, 2024, and June 30, 2024, is presented
 
in the table below:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
June 30,
2024
2024
Microlending finance loans receivable, net
$
35,196
$
28,184
Microlending finance loans receivable, gross
37,642
30,131
Allowance for doubtful finance loans receivable, end of period
2,446
1,947
Beginning of period
1,947
1,432
Reversed to statement of operations
 
(162)
(210)
Charged to statement of operations
 
1,927
2,454
Utilized
 
(1,166)
(1,795)
Foreign currency adjustment
 
(100)
66
Merchant finance loans receivable, net
14,333
15,874
Merchant finance loans receivable, gross
17,375
18,571
Allowance for doubtful finance loans receivable, end of period
3,042
2,697
Beginning of period
2,697
2,150
Reversed to statement of operations
 
(23)
(359)
Charged to statement of operations
 
1,093
2,479
Utilized
 
(607)
(1,672)
Foreign currency adjustment
 
(118)
99
Total finance
 
loans receivable, net
 
$
49,529
$
44,058
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 $
13.6
 
million as of December 31, 2024 have been pledged as
security for the Company’s
 
revolving credit facility (refer to Note 9).
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
nine 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 5 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 June
 
30, 2024 and December 31,
 
2024, was
6.50
%. The performing component (that
 
is, outstanding loan payments
not in
 
arrears) of
 
the book
 
exceeds more
 
than
98
%, of
 
the outstanding
 
lending book
 
as of each
 
of June
 
30, 2024
 
and December
 
31,
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 5 related to the Company risk management
 
process related to these receivables.
The Company 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
 
June
 
30,
 
2024
 
and
 
December
 
31,
 
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.
 
The performing
 
component,
under-performing component and
 
non-performing component of the book represents
 
approximately
85
%,
15
% and
0
%, respectively,
of the outstanding lending book as of December 31, 2024.