v3.26.1
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
 9 Months Ended
Mar. 31, 2026
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, 2026, and June 30, 2025, are presented in the
table below:
March 31,
June 30,
2026
2025
Accounts receivable, trade, net
$
19,674
$
16,433
Accounts receivable, trade, gross
22,163
18,186
Less: Allowance for doubtful accounts receivable, end of period
2,489
1,753
Beginning of period
1,753
1,241
Reversed to statement of operations
(258)
(521)
Charged to statement of operations
1,395
1,856
Write-offs
(473)
(847)
Deconsolidation
(4)
-
Foreign currency adjustment
76
24
Current portion of amount outstanding related to sale of interest in Carbon,
net of
allowance: March 2026: $
750
; June 2025: $
750
-
-
Amount due from VantagePay,
net of allowance: March 2026: $
0
; June 2025: $
1,500
2,027
-
Other receivables
23,782
26,092
Total accounts receivable,
net and other receivables
$
45,483
$
42,525
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
balances
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
is 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.
The Company previously provided
Vantage
Africa Limited (“VantagePay”)
with a working capital facility
of $
1.5
million. The
Company created an allowance for
credit losses related to
loans receivable of $
1.5
million during the year
ended June 30, 2021, related
to the
full amount
outstanding as
of June
30, 2021.
This amount
was still
outstanding
as of
June 30,
2025. The
Company recently
entered into discussions
with VantagePay
regarding steps to recover
the amount outstanding,
and the Company believes
that there is
sufficient
evidence
to
support
the
recoverability
of
the
amount
due
from
VantagePay
.
The
Company
recorded
a
reversal
of
the
allowance
for
credit
losses
of
$
1.5
million
previously
recognized
during
the
three
and
nine
months
ended
March
31,
2026.
The
Company also recognized outstanding interest of $
0.5
million during the three and nine months ended March 31, 2026.
O
ther 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, 2026, and June 30, 2025, is presented in the table below:
March 31,
June 30,
2026
2025
Microlending finance loans receivable, net
$
76,694
$
52,492
Microlending finance loans receivable, gross
82,025
56,140
Less: Allowance for doubtful finance loans receivable, end of period
5,331
3,648
Beginning of period
3,648
1,947
Reversed to statement of operations
-
(161)
Charged to statement of operations
6,461
4,301
Write-offs
(4,934)
(2,499)
Foreign currency adjustment
156
60
Merchant finance loans receivable, net
22,717
21,618
Merchant finance loans receivable, gross
25,713
23,214
Less: Allowance for doubtful finance loans receivable, end of period
2,996
1,596
Beginning of period
1,596
2,697
Reversed to statement of operations
(119)
(22)
Charged to statement of operations
1,832
2,576
Write-offs
(384)
(3,709)
Foreign currency adjustment
71
54
Total finance
loans receivable, net
$
99,411
$
74,110
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 $
21.9
million as
of March
31, 2026
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, 2025 and March 31, 2026, was
6.5
%. The performing component (that is, outstanding loan payments not in
arrears)
of the
book exceeds
more
than
98
% and
99
%, of
the outstanding
lending book
as of
June 30,
2025, and
March 31,
2026,
respectively.
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
o
f 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, 2025 and March 31, 2026, was approximately
1.14
%. 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
95
%,
4
%
and
1
%, respectively, of the outstanding lending book as of June 30, 2025.
The performing component, under-performing component
and non-performing component of the book represents approximately
91
%,
8
% and
1
%, respectively, of the outstanding lending book
as of March 31, 2026.