v3.26.1
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
 12 Months Ended
Jun. 30, 2026
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract]  
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net
4.
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
June 30,
2026, and June
30, 2025, are
presented in the
table below:
June 30,
June 30,
2026
2025
Accounts receivable, trade, net
$
19,329
$
16,433
Accounts receivable, trade, gross
22,536
18,186
Allowance for credit losses, end of period
3,207
1,753
Beginning of period
1,753
1,241
Reversed to statement of operations
(388)
(521)
Charged to statement of operations
2,109
1,856
Write-offs
(526)
(847)
Deconsolidation
(4)
-
Foreign currency adjustment
263
24
Current portion of amount outstanding related to sale of interest in Carbon,
net of
allowance of: 2026: $
750
, 2025: $
750
-
-
Amount due from VantagePay,
net of allowance of: 2026: $
0
, 2025: $
1,500
2,010
-
Other receivables
22,426
26,092
Total accounts receivable,
net
$
43,765
$
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.
Current portion of amount outstanding related to sale of interest in Carbon represents the amount due from the purchaser related
to the sale of
the Company’s interest in Carbon Tech Limited (“Carbon”),
which was accounted for
as an equity-accounted investment,
of $
0.25
million, net of an allowance for doubtful loans receivable of $
0.25
million as of June 30, 2023, and an amount due related to
the sale of
the loan,
with a face
value of
$
3.0
million, which was
sold in September
2022 for
$
0.75
million, net of
an allowance for
doubtful loans
receivable of
$
0.75
million, refer
to Note 9
for additional
information. The Company
received the
outstanding $
0.25
million
related
to the
sale of
the equity
-accounted
investment in
October
2023,
and
has reversed
the allowance
for
doubtful
loans
receivable of
$
0.25
million during
the year
ended June
30, 2024.
The Company
has not
yet received
the outstanding
$
0.75
million
related to the sale of the $
3.0
million loan, and continues to engage with the purchaser to recover
the outstanding balance.
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. In May 2026, the Company
entered
into a
binding head
of terms
agreement
with VantagePay
which outlines
the steps
to recover
the amount
outstanding.
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
year ended June 30, 2026. The
Company also recognized outstanding interest of $
0.5
million during the year ended June 30, 2026.
O
ther receivables include prepayments, deposits, income taxes receivable and
other receivables.
4.
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 June 30, 2026, and June 30, 2025, is presented in the table
below:
June 30,
June 30,
2026
2025
Microlending finance loans receivable, net
$
80,584
$
52,492
Microlending finance loans receivable, gross
85,265
56,140
Allowance for credit losses - finance loans receivable, end of period
4,681
3,648
Beginning of period
3,648
1,947
Reversed to statement of operations
-
(161)
Charged to statement of operations
7,261
4,301
Write-offs
(6,600)
(2,499)
Foreign currency adjustment
372
60
Merchant finance loans receivable, net
23,226
21,618
Merchant finance loans receivable, gross
28,664
23,214
Allowance for credit losses - finance loans receivable, end of period
5,438
1,596
Beginning of period
1,596
2,697
Reversed to statement of operations
(117)
(22)
Charged to statement of operations
3,931
2,576
Write-offs
(459)
(3,709)
Foreign currency adjustment
487
54
Total finance
loans receivable, net
$
103,810
$
74,110
Total finance
loans receivable, net, comprises
the Consumer operating
segment’s microlending
finance loans receivable related
to
the
Company’s
microlending
operations
in
South
Africa
as
well
as
its
Merchants
operating
segment’s
merchant
finance
loans
receivable lending activities in South Africa. Certain merchant finance loans receivable with an aggregate balance of $
22.5
million as
of June 30, 2026 have been pledged as security for the Company’s
revolving credit facility (refer to Note 12).
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 6 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
develop an
expected loss
rate for
the lending
book. The
allowance for
credit losses
related to
these microlending
finance loans receivables is calculated
by multiplying the expected loss
rate with the month end outstanding
lending book. Default is
defined as loans in 90 days in arrears or greater and is primarily driven by missed
or disrupted customer payments, as a result of non-
receipt
of
social
grant
income
and
broader
affordability
pressures.
Loss
outcomes
are
further
influenced
by
limited
post-default
recoveries. The Company continues to undertake recovery activity
for up to six months post
write-off; however, recoveries during this
period are minimal. After six months, collection activity ceases and recoveries
are considered negligible.
4.
ACCOUNTS RECEIVABLE,
net AND OTHER RECEIVABLES
and FINANCE LOANS RECEIVABLE,
net
(continued)
Finance loans receivable, net (continued)
In June
30,
2026, the
Company
reassessed the
expected
loss rate
related
to its
microlending
allowance
for credit
losses. The
assessment
considered
the
performance
of
the
lending
portfolio,
historical
loss
experience,
portfolio
migration
trends,
sensitivity
analyses relating
to larger
loan amounts
and longer
loan terms.
Based on
this review,
the Company’s
concluded that
expected loss
rates should
be reduced
from
6.5
% to
5.5
%.
The review
indicated that,
despite the
introduction of
larger loan
amounts and
longer
repayment
terms,
the
portfolio
continued
to
perform
broadly
in
line
with
expectations
and
the
model-derived
expected
credit
loss
requirement
remained
below
the
historical
expected
loss
ratio,
including
during
periods
of
elevated
delinquency
and
operational
disruptions. The reduction in the expected loss ratio resulted in a
decrease in the allowance for credit losses of $
0.9
million (ZAR
14.0
million, translated at
exchange rates applicable as
of June 30,
2026) which is
included in the
caption selling, general and
administration
to the consolidated
statement of operations
for the year
ended June 30,
2026. The underlying
model methodology,
including the use
of historical lifetime loss experience as the foundation of the expected credit loss estimate, remained
unchanged.
The expected
loss rate as
of June
30, 2026
and 2025, was
5.50
% and
6.50
%, respectively.
The performing
component (that is,
outstanding loan payments not in arrears) of the book exceeds more than
99.0
% and
98.0
% of outstanding lending book as of June 30,
2026 and 2025, 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
of the lending book.
Refer to Note 6 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 develop an
expected loss
rate for the lending book.
A loan is classified as being
in default where a client has
missed seven or more instalments, at
which point
a
full
allowance
for outstanding
capital and
accrued
interest is
raised
as a
top-up
to the
general
provision
level. Upon
default,
the
Company commences
recovery procedures
including the
use of
external debt
collectors, asset
attachment through
the Sheriff
of the
High Court, and judgements against
clients in both their
personal and entity capacities.
An account is
only written off once all
recovery
procedures have failed and management confirms no further recovery
is possible.
The allowance
for credit
losses related
to these
merchant
finance loans
receivables is
calculated by
adding together
(i) actual
receivables in default plus (ii) the month-end outstanding lending book multiplied by the
expected loss rate. The expected loss rate as
of June 30, 2026 and
2025, was approximately
3.21
% and
1.14
%, respectively.
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
92
%,
7
%
and
1
%, respectively, of the outstanding lending book as of June
30, 2026.
The performing component, under-performing component
and non-performing component of the book represents approximately
95
%,
4
% and
1
%, respectively, of the outstanding lending book
as of June 30, 2025.