v3.26.1
Equity-Accounted Investments And Other Long-Term Assets
 9 Months Ended
Mar. 31, 2026
Equity-Accounted Investments And Other Long-Term Assets [Abstract]  
Equity-Accounted Investments And Other Long-Term Assets
6.
Equity-accounted investments and other long-term assets
Refer to Note 9 to the Company’s audited consolidated
financial statements included in its Annual Report on Form 10-K for the
year ended June 30, 2025, for additional information regarding its equity
-accounted investments and other long-term assets.
Equity-accounted investments
The
Company’s
ownership
percentage
in its
equity-accounted
investments
as of
March 31,
2026,
and
June 30,
2025, was
as
follows:
March 31,
June 30,
2026
2025
Sandulela Technology
(Proprietary) Limited (“Sandulela”)
49.0
%
49.0
%
SmartSwitch Namibia (Proprietary) Limited (“SmartSwitch Namibia”)
50.0
%
50.0
%
SmartSwitch Namibia
The
Company
recorded
a
loss on
impairment
of
equity-accounted
investment
of
$
0.6
million
during
the
nine
months
ended
March 31, 2026, which primarily includes the release of accumulated other comprehensive
loss (refer to Note 12).
Other long-term assets
Summarized below is the breakdown of other long-term assets as of March
31, 2026, and June 30, 2025:
March 31,
June 30,
2026
2025
Total equity investments
$
250
$
-
Investment in Cell C (June 30, 2025:
5
%) at fair value (Note 5)
(1)
-
-
Investment in
10
% of Cowdi at fair value
(2)
250
-
Investment in
87.5
% of CPS (June 30, 2025:
87.5
%) at fair value
(2)(3)
-
-
Policy holder assets under investment contracts (Note 8)
134
125
Reinsurance assets under insurance contracts (Note 8)
2,312
1,837
Other long-term assets
1,985
1,847
Total other long-term
assets
$
4,681
$
3,809
(1) The Company disposed of its entire shareholding in Cell C in December
2025, refer to Note 5 for additional information.
(2) The Company determined
that Cowdi and CPS do
not have a readily
determinable fair value and
therefore elected to record
its investments
at cost minus impairment, if
any, plus or minus changes resulting
from observable price changes in
orderly transactions
for the identical or a similar investment of the same issuer.
(3) On October 16, 2020,
the High Court of
South Africa, Gauteng Division, Pretoria
ordered that CPS be
placed into liquidation.
6.
Equity-accounted investments and other long-term assets (continued)
Other long-term assets (continued)
During the nine months
ended March 31, 2026,
the Company invested $
0.3
million to acquire a
10
% interest in Cowdi Limited
(“Cowdi”), an entity incorporated in England and Wales,
with operations through a Kenyan wholly-owned subsidiary offering digital
loans to customers in that country.
The Company also extended a $
0.75
million credit facility to Cowdi.
The facility was undrawn as
of March 31, 2026.
The Company previously owned
6,215,620
equity shares of One MobiKwik
Systems Limited (“MobiKwik”). MobiKwik
listed
on
the
National
Stock
Exchange
of
India
(“NSE”)
on
December
18,
2024.
Up
until
its
listing
MobiKwik
did
not
have
a
readily
determinable fair
value and
the Company
elected to
measure its
investment in
MobiKwik at
cost minus
impairment, if
any,
plus or
minus changes
resulting from
observable price
changes in
orderly transactions
for the
identical or
a similar
investment of
the same
issuer (“cost plus or minus changes
in observable prices equity securities”).
From the date of MobiKwik’s
listing, the Company used
MobiKwik’s
closing
price
reported
on
the
NSE
on
the
last
trading
day
related
to
last
day
of
the
Company’s
reporting
period
to
determine the fair value
of the equity securities
owned by the Company.
The Company determined
a fair value per
MobiKwik share
of $
3.56
(INR
304.05
per share at the USD: INR
exchange rates applicable as of
March 31, 2025). The Company
used this valuation
as the basis for its adjustment to decrease the carrying value of its investment in MobiKwik by $
54.2
million from $
76.3
million as of
June 30, 2024, to $
22.1
million as of March 31, 2025. The change in the fair value of MobiKwik for the three and nine months
ended
March 31, 2025, of $
20.4
million and $
54.2
million, respectively, is included in the caption “Change in fair value of equity securities”
in the consolidated statement of
operations for the three and nine months
ended March 31, 2025. The Company
disposed of its entire
shareholding in MobiKwik in June 2025.
Summarized below
are the components
of the Company’s
equity securities without
readily determinable
fair value and
held to
maturity investments as of March 31, 2026:
Cost basis
Unrealized
holding
Unrealized
holding
Carrying
gains
losses
value
Equity securities:
Investment in Cowdi
$
250
$
-
$
-
$
250
Investment in CPS
-
-
-
-
Total
$
250
$
-
$
-
$
250
Summarized below are the components of the Company’s
equity securities without readily determinable fair value and held to
maturity investments as of June 30, 2025:
Cost basis
Unrealized
holding
Unrealized
holding
Carrying
gains
losses
value
Equity securities:
Investment in CPS
$
-
$
-
$
-
$
-
Held to maturity:
Investment in Cedar Cellular notes
-
-
-
-