Loans Held For Investment

3 Months Ended

Sep. 30, 2024

LOANS HELD FOR INVESTMENT

Loans held for investment represent funds advanced under either a term loan or 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, 2024		June 30, 2024
Unpaid principal balance (1)	$	56,377	$	44,491
Less: Discount at loan purchase, net of amortization	(1,408)		(1,120)
Less: Allowance for expected credit losses	(6,230)		(4,700)
Loans held for investment, net	$	48,739	$	38,671

(1) The outstanding balance of term loans, originated during fiscal 2024, was $11.2 million and $24.2 million as of September 30, 2024 and June 30, 2024, respectively. There were no term loans originated during the three months ended September 30, 2024.

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. Loans held for investment are considered past due if payment is not received within the terms set by the term loan or line of credit agreement. The outstanding balance of loans held for investment considered past due was not material as of September 30, 2024 and June 30, 2024.