Loans Held For Investment

3 Months Ended

Sep. 30, 2025

LOANS HELD FOR INVESTMENT

Loans held for investment represent funds advanced under a line of credit agreement, through a partnership with a third-party bank (the Originating Bank Partner). Loans held for investment are included in

prepaid expenses and other current assets in the accompanying consolidated balance sheets and consisted of the following as of the dates presented (in thousands):


	September 30, 2025		June 30, 2025
Unpaid principal balance	$	62,643	$	61,938
Less: Discount at loan purchase, net of amortization	(1,544)		(1,527)
Less: Allowance for expected credit losses	(14,653)		(14,853)
Loans held for investment, net	$	46,446	$	45,558

Credit Quality Information

The Company conducts an eligibility assessment prior to loan origination by the Originating Bank Partner. This process is performed at the invoice level and involves evaluating the invoice repayment likelihood by the respective network members associated with each invoice. Subsequently, the credit quality of these loans is monitored based on the delinquency trends or past due status of the loans held for investment, which are considered the credit quality indicators. Below is a summary of the loans held for investment by class (i.e., past due status) as of the dates presented (in thousands):


	September 30, 2025		June 30, 2025
Current and less than 30 days past due	$	55,997	$	55,540
30 ~ 59 days past due	1,725		1,471
60 ~ 89 days past due	1,799		1,461
90 ~ 119 days past due	1,427		1,685
Over 119 days past due	151		254
Total	$	61,099	$	60,411

Allowance for Credit Losses

Below is a summary of the changes in allowance for credit losses presented (in thousands):


	Three Months Ended September 30,
	2025		2024
Balance, beginning	$	14,853	$	4,700
Provision for expected credit losses	3,906		5,274
Charge-off amounts	(4,364)		(3,898)
Recoveries collected	258		154
Balance, ending	$	14,653	$	6,230

The provision for expected credit losses related to loans held for investments decreased during the three months ended September 30, 2025 compared to the same prior year period mainly due to an immaterial release from the allowance for credit losses attributable to changes in assumptions related to macroeconomic factors. The charge-off amounts and allowance for credit losses related to loans held for investment increased during the three months ended September 30, 2025 compared to the same prior year period due to portfolio growth.