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Equity-Accounted Investments And Other Long-Term Assets
 6 Months Ended
Dec. 31, 2024
Equity-Accounted Investments And Other Long-Term Assets [Abstract]  
Equity-Accounted Investments And Other Long-Term Assets
6.
 
Equity-accounted investments and other long-term assets
Refer to Note 9 to the Company’s audited consolidated
 
financial statements included in its Annual Report on Form 10-K for the
year ended June 30, 2024, for additional information regarding its equity-accounted
 
investments and other long-term assets.
Equity-accounted investments
The Company’s
 
ownership percentage in its equity-accounted
 
investments as of December 31,
 
2024, and June 30, 2024, was as
follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
June 30,
2024
2024
Sandulela Technology
 
(Pty) Ltd ("Sandulela")
49.0
%
49.0
%
SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”)
50.0
%
50.0
%
Sale and impairment of Finbond shares during
 
the three and six months ended December 31, 2023
On
 
August
 
10,
 
2023,
 
the
 
Company,
 
through
 
its
 
wholly
 
owned
 
subsidiary
 
Net1
 
Finance
 
Holdings
 
(Pty)
 
Ltd,
 
entered
 
into
 
an
agreement with Finbond to sell its remaining shareholding to Finbond for a cash consideration of ZAR
64.2
 
million ($
3.5
 
million), or
ZAR
0.2911
 
per share. The transaction was subject to certain conditions, including regulatory and shareholder approvals, which were
finalized in
 
December 2023.
 
The cash
 
proceeds received
 
of ZAR
64.2
 
million ($
3.5
 
million) were
 
used to
 
repay capitalized
 
interest
under the Company’s borrowing
 
facilities.
As noted
 
above, the
 
Company
 
entered into
 
an agreement
 
to exit
 
its position
 
in Finbond
 
and
 
the Company
 
considered this
 
an
impairment indicator. The
 
Company is required to include any foreign currency translation reserve
 
and other equity account amounts
in its impairment assessment if it considers exiting an equity method investment. The Company performed an impairment assessment
of its
 
holding in
 
Finbond, including
 
the foreign
 
currency translation
 
reserve and
 
other equity
 
account amounts,
 
as of September
 
30,
2023. The Company recorded an impairment loss of $
1.2
 
million during the quarter ended September 30, 2023, which represented the
difference between
 
the determined fair value
 
of the Company’s
 
interest in Finbond and
 
the Company’s
 
carrying value, including
 
the
foreign currency
 
translation reserve
 
(before the
 
impairment). The
 
Company used
 
the price of
 
ZAR
0.2911
 
referenced in
 
the August
2023 agreement referred to above to calculate the determined fair value for Finbond.
 
6.
 
Equity-accounted investments and other long-term assets (continued)
Equity-accounted investments (continued)
Sale and impairment of Finbond shares during
 
the three and six months ended December 31, 2023
 
(continued)
The Company sold
7,379,656
 
shares in Finbond for
 
cash during the three
 
and six months ended
 
December 31, 2023, respectively.
The
 
Company
 
did
no
t
 
record
 
a
 
gain
 
or
 
loss
 
on
 
the
 
disposal
 
because
 
the
 
sale
 
proceeds
 
were
 
equivalent
 
to
 
the
 
net
 
carrying
 
value,
including accumulated reserves,
 
of the investment
 
in Finbond as of
 
the disposal date. The
 
following table presents
 
the calculation of
the disposal of Finbond shares during the three and six months ended December
 
31, 2023:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
Loss on disposal of Finbond shares:
Consideration received in cash
$
3,508
Less: carrying value of Finbond shares sold
(2,112)
Less: release of foreign currency translation reserve from
accumulated other comprehensive loss
(1,543)
Add: release of stock-based compensation charge related
 
to
equity-accounted investment
147
Loss on sale of Finbond shares
$
-
Carbon
In September
 
2022, the
 
Company,
 
through its
 
wholly-owned subsidiary,
 
Net1 Applied
 
Technologies
 
Netherlands B.V.
 
(“Net1
BV”),
 
entered
 
into
 
a binding
 
term
 
sheet
 
with the
 
Etobicoke
 
Limited
 
(“Etobicoke”)
 
to sell
 
its entire
 
interest, or
25
%,
 
in Carbon
 
to
Etobicoke for
 
$
0.5
 
million and
 
a loan
 
due from
 
Carbon, with
 
a face
 
value of
 
$
3.0
 
million, to
 
Etobicoke for
 
$
0.75
 
million. Both
 
the
equity interest
 
and the loan
 
had a carrying
 
value of $
0
 
(zero) at June
 
30, 2022.
 
The parties agreed
 
that Etobicoke pledge
 
the Carbon
shares purchased as
 
security for the
 
amounts outstanding under
 
the binding term
 
sheet. The
 
Company received $
0.25
 
million on closing
and the outstanding balance
 
due by Etobicoke
 
was expected to be
 
paid as follows:
 
(i) $
0.25
 
million on September 30,
 
2023 (the amount
was received in October
 
2023), and (ii) the
 
remaining amount, of
 
$
0.75
 
million in March 2024
 
(the amount has not
 
been received as
of December 31, 2024 (refer to Note 3)).
Summarized below is the
 
movement in equity-accounted investments and
 
loans provided to equity-accounted
 
investments during
the six months ended December 31, 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
(1)
Investment in equity
Balance as of June 30, 2024
$
206
Comprehensive income:
77
Other comprehensive income
-
Equity accounted (loss) earnings
77
Share of net (loss) earnings
77
Impairment
-
Dividends received
 
(65)
Equity-accounted investment acquired in business combination (Note
 
2)
477
Disposal of equity accounted investment (Note 2)
(507)
Foreign currency adjustment
(2)
(7)
Balance as of December 31, 2024
$
181
 
 
 
(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.
6.
 
Equity-accounted investments and other long-term assets (continued)
Other long-term assets
Summarized below is the breakdown of other long-term assets as of December
 
31, 2024, and June 30, 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
June 30,
2024
2024
Total equity investments
 
$
42,566
$
76,297
Investment in
5
% of Cell C (June 30, 2024:
5
%) at fair value (Note 5)
-
-
Investment in
8
% of MobiKwik (June 30, 2024:
10
%)
(1)
42,566
76,297
Investment in
87.5
% of CPS (June 30, 2024:
87.5
%) at fair value
(1)(2)
-
-
Policy holder assets under investment contracts (Note 8)
217
216
Reinsurance assets under insurance contracts (Note 8)
1,692
1,469
Other long-term assets
1,607
-
Total other long-term
 
assets
$
46,082
$
77,982
(1) The
 
Company determined
 
that MobiKwik
 
(up until
 
December 2024)
 
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.
Refer to Note 5 for additional information regarding
 
the determination of the fair value of Company’s
 
investment in MobiKwik
as
 
of
 
December
 
31,
 
2024.
 
The
 
Company
 
used
 
this
 
valuation
 
as
 
the
 
basis
 
for
 
its
 
adjustment
 
to
 
decrease
 
the
 
carrying
 
value
 
of
 
its
investment in MobiKwik by $
33.7
 
million from $
76.3
 
million to $
42.6
 
million as of December 31, 2024. The change in the fair value
of MobiKwik for the three and
 
six months ended December 31, 2024,
 
of $
33.7
 
million, is included in the
 
caption “Change in fair value
of equity securities” in the consolidated statement of operations for
 
the three and six months ended December 31, 2024.
Summarized below
 
are the components
 
of the Company’s
 
equity securities without
 
readily determinable
 
fair value and
 
held to
maturity investments as of December 31, 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost basis
Unrealized
holding
Unrealized
holding
Carrying
gains
losses
value
Equity securities:
Investment in CPS
$
-
$
-
$
-
$
-
Held to maturity:
Investment in Cedar Cellular notes (Note 3)
-
-
-
-
Summarized below are the components of the Company’s
 
equity securities without readily determinable fair value and held to
maturity investments as of June 30, 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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