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Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
 9 Months Ended
Mar. 31, 2025
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 March 31, 2025, and June 30, 2024, are presented in the
table below:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
June 30,
2025
2024
Accounts receivable, trade, net
 
$
18,037
$
13,262
Accounts receivable, trade, gross
 
19,881
14,503
Less: Allowance for doubtful accounts receivable, end of period
1,844
1,241
Beginning of period
1,241
509
Reversed to statement of operations
(85)
(511)
Charged to statement of operations
 
1,444
1,305
Utilized
 
(732)
(67)
Foreign currency adjustment
 
(24)
5
Current portion of amount outstanding related to sale of interest in Carbon,
 
net of
allowance: March 2025: $
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
 
18,090
23,405
Total accounts receivable,
 
net and other receivables
$
36,127
$
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 March 31, 2025, 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 March 31, 2025, and June 30, 2024, is presented in the table below:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
June 30,
2025
2024
Microlending finance loans receivable, net
$
41,188
$
28,184
Microlending finance loans receivable, gross
44,050
30,131
Less: Allowance for doubtful finance loans receivable, end of period
2,862
1,947
Beginning of period
1,947
1,432
Reversed to statement of operations
 
(160)
(210)
Charged to statement of operations
 
2,772
2,454
Utilized
 
(1,663)
(1,795)
Foreign currency adjustment
 
(34)
66
Merchant finance loans receivable, net
20,073
15,874
Merchant finance loans receivable, gross
23,731
18,571
Less: Allowance for doubtful finance loans receivable, end of period
3,658
2,697
Beginning of period
2,697
2,150
Reversed to statement of operations
 
(22)
(359)
Charged to statement of operations
 
1,750
2,479
Utilized
 
(725)
(1,672)
Foreign currency adjustment
 
(42)
99
Total finance
 
loans receivable, net
 
$
61,261
$
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 $
19.2
 
million as
 
of March
 
31, 2025
 
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 March 31, 2025,
 
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 March 31, 2025.
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 March 31, 2025, 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
88
%,
11
%
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
88
%,
11
% and
1
%,
 
respectively,
 
of
 
the outstanding
 
lending
book as of March 31, 2025.