Strategic Investments

3 Months Ended

Dec. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Strategic Investments

NOTE 5: STRATEGIC INVESTMENTS

Cash Converters International Limited

As of December 31, 2024, we owned 273,939,157 shares, or approximately 43.7%, of Cash Converters. We acquired our original investment in November 2009 and have increased our ownership through the acquisition of additional shares periodically since that time.

We received cash dividends from Cash Converters of $1.9 million and $1.7 million during the three months ended December 31, 2024 and 2023, respectively.

The following tables present summary financial information for Cash Converters’ most recently reported results as applicable after translation to U.S. dollars:

	June 30,
(in thousands)	2024		2023
Current assets	$	185,649	$	189,563
Non-current assets	133,043		103,595
Total assets	$	318,692	$	293,158
Current liabilities	$	103,771	$	97,630
Non-current liabilities	74,010		58,777
Shareholders’ equity	140,911		136,751
Total liabilities and shareholders’ equity	$	318,692	$	293,158

	Full-Year Ended June 30,
(in thousands)	2024		2023
Gross revenues	$	251,135	$	203,608
Gross profit	$	152,879	$	125,709
Net profit (loss)	$	11,420	$	(65,351)

During the three months ended December 31, 2024, and 2023 we recorded our share of income of $1.6 million and $1.2 million, respectively, from Cash Converters, included in “Equity in net income of unconsolidated affiliates” in the condensed consolidated statements of operations.

See Note 6: Fair Value Measurements for the fair value and carrying value of our investment in Cash Converters.

Founders One, LLC

In fiscal 2022, we invested $15.0 million in exchange for a non-redeemable voting participating preferred equity interest in Founders One, LLC (“Founders”), a then newly-formed entity with one other member. In fiscal 2023, we contributed an additional $15.0 million associated with our preferred interest and loaned Founders $15.0 million in exchange for a Demand Promissory Note secured by the common interest held by the other member. In fiscal 2024, we contributed an additional $15.0 million associated with our preferred interest, bringing our total preferred equity investment in Founders to $45.0 million.

We have an interest in Founders, a variable interest entity, but because the Company is not the primary beneficiary, we do not consolidate Founders. 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. Consequently, our preferred equity investment in Founders is accounted for utilizing the measurement alternative within ASC 321, Investments — Equity Securities. As of December 31, 2024, our $45.0 million carrying value of the preferred equity investment and $15.0 million Demand Promissory Note are included in “Other investments” and “Prepaid expenses and other current assets” in our condensed consolidated balance sheets, respectively. As of December 31, 2024, our maximum exposure for losses related to our investment in Founders was our $45.0 million preferred equity investment and $15.0 million Demand Promissory Note plus accrued and unpaid interest.

See Note 6: Fair Value Measurements for the fair value and carrying value of our loan to Founders.