Strategic Investments

3 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Strategic Investments

NOTE 6: STRATEGIC INVESTMENTS

Cash Converters International Limited

On October 1, 2021, we purchased an additional 13 million shares of Cash Converters International Limited ("Cash Converters") for $2.5 million. This purchase increased our total ownership in Cash Converters to 236,702,991 shares, representing a 37.72% ownership interest. Additionally, on October 14, 2021, we received a cash dividend of $1.7 million from Cash Converters.

The following tables present summary financial information for Cash Converters most recently reported results at June 30, 2021 after translation to U.S. dollars:

	June 30,
(in thousands)	2021		2020
Current assets	$	167,553	$	157,183
Non-current assets	191,788		172,833
Total assets	$	359,341	$	330,016
Current liabilities	$	61,395	$	68,028
Non-current liabilities	57,511		51,275
Shareholders’ equity	240,435		210,713
Total liabilities and shareholders’ equity	$	359,341	$	330,016

	Half-Year Ended June 30,
(in thousands)	2021		2020
Gross revenues	$	150,165	$	187,025
Gross profit	105,851		112,511
Net profit (loss)	12,081		(7,032)

See Note 7 for the fair value and carrying value of our investment in Cash Converters.

Founders One, LLC

On October 6, 2021, the Company invested $15.0 million in exchange for a non-redeemable voting participating preferred equity interest in Founders One, LLC (“Founders”), a newly-formed entity with one other member. Founders used that $15.0 million to acquire an equity interest in Simple Management Group, Inc. (“SMG”) which owns and operates more than 20 pawn stores principally in the Caribbean region, with plans to build and acquire more stores in that region. The investment in Founders is a variable interest entity but for which the Company is not the primary beneficiary and, therefore, is not consolidated. Further, as we are not the appointed manager, we do not have the ability to direct the activities of the investment entity that most significantly impact its economic performance. This investment in Founders is accounted for utilizing the measurement alternative within ASC 321, Investments — Equity Securities. Our $15.0 million carrying value of the investment is included in “Other Investments” in our consolidated balance sheets. The Company’s maximum exposure for losses in this investment is its contributed investment of $15.0 million.

See Note 7 for the fair value and carrying value of our investment in Founders.