v3.26.1
Equity-Accounted Investments And Other Long-Term Assets
 12 Months Ended
Jun. 30, 2026
Equity-Accounted Investments And Other Long-Term Assets [Abstract]  
Equity-Accounted Investments And Other Long-Term Assets
9.
EQUITY-ACCOUNTED
INVESTMENTS AND OTHER LONG-TERM ASSETS
Equity-accounted investments
The Company’s ownership percentage
in its equity-accounted investments as of June 30, 2026 and 2025, was as follows:
June 30,
June 30,
2026
2025
Sandulela Technology
Proprietary Limited ("Sandulela")
49
%
49
%
SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”)
50
%
50
%
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 15).
Finbond
In December
2023, the
Company sold
its entire
remaining equity
interest in
Finbond which
comprised of
220,523,358
shares,
and which represented approximately
27.8
% of Finbond’s issued and
outstanding ordinary shares immediately
prior to the
sale. Lesaka
SA had pledged, among other things, its entire equity interest in Finbond
as security for its previous South African facilities.
Sale of Finbond shares during the year ended
June 30, 2024
On
August
10,
2023,
the
Company,
through
its
wholly
owned
subsidiary
Net1
Finance
Holdings
(Pty)
Ltd,
entered
into
an
agreement with Finbond to sell its remaining shareholding to Finbond for a cash consideration of ZAR
64.2
million ($
3.5
million), or
ZAR
0.2911
per share. The transaction closed in December 2023. The Company did
no
t record a gain or loss on the disposal because
the sale
proceeds were
equivalent to
the net
carrying value,
including accumulated
reserves, of
the investment
in Finbond
as of
the
disposal
date.
The
cash
proceeds
received
of
ZAR
64.2
million
($
3.5
million)
were
used
to
repay
capitalized
interest
under
our
b
orrowing facilities, refer to Note 12.
9.
EQUITY-ACCOUNTED
INVESTMENTS AND OTHER LONG-TERM ASSETS (continued)
Equity-accounted investments (continued)
Finbond (continued)
Sale of Finbond shares during the year ended
June 30, 2024 (continued)
The following table presents the calculation of the loss on disposal of Finbond shares
during the year ended June 30, 2024:
Year
ended
June 30,
2024
Loss on disposal of Finbond shares:
Consideration received in cash
$
3,508
Less: carrying value of Finbond shares sold
(2,112)
Less: release of foreign currency translation reserve from accumulated other
comprehensive loss
(1,543)
Add: release of stock-based compensation charge related
to equity-accounted investment
147
Loss on sale of Finbond shares
$
-
Finbond impairments
recorded during
the year ended June 30, 2024
The Company performed an impairment assessment of its holding in Finbond, including the foreign currency translation reserve
and other equity
account amounts, as
of September
30, 2023. The
Company recorded
an impairment
loss of $
1.2
million during the
quarter ended September
30, 2023, which
represented the difference
between the determined
fair value of
the Company’s
interest in
Finbond and the Company’s carrying value, including the foreign currency translation reserve (before the impairment). The Company
used the
price of
ZAR
0.2911
referenced in
the August
2023 agreement
referred to
above to
calculate the
determined fair
value for
Finbond.
Carbon
In September 2022, the Company
entered into a binding term sheet to
sell its entire interest, or
25
%, in Carbon for $
0.5
million
and a
loan due from
Carbon, with a
face value of
$
3
million, for $
0.75
million. Both
the equity
interest and
the loan had
a carrying
value of
$
0
(zero) at June
30, 2022.
The Company
received $
0.25
million on closing
and the outstanding
balance due by
Etobicoke
was expected to be paid
as follows: (i) $
0.25
million on September 30,
2023 (the amount was received
in October 2023), and (ii)
the
remaining
amount, of
$
0.75
million in
March 2024
(the amount
has not
been received
as of
June 30,
2026 (refer
to Note
4)). The
Company
has
allocated
the $
0.25
million
received
on closing
to the
sale of
the
equity interest
and
allocated
the subsequent
funds
received first to the sale of the equity interest and then to the loans.
The Company
believed that
the fair value
of the Carbon
shares provided
as security was
$
0
(zero), which
was in line
with the
carrying value as
of June 30, 2022,
and created an allowance
for doubtful loans receivable
related to the $
1.0
million previously due
from Etobicoke.
The Company
did not
incur any significant
transaction costs.
The Company
has included
the gain of
$
0.25
million
related to the sale of the Carbon equity interest in the caption net
gain on disposal of equity-accounted investments in the Company’s
c
onsolidated statements of operations.
9.
EQUITY-ACCOUNTED
INVESTMENTS AND OTHER LONG-TERM ASSETS (continued)
Equity-accounted investments (continued)
Summarized
below is
the movement
in equity-accounted
investments during
the years
ended June
30, 2026
and 2025,
which
includes the investment in equity and the investment in loans provided
to equity-accounted investees:
Other
(1)
Total
Investment in equity
Balance as of June 30, 2024
$
206
$
206
Comprehensive income:
114
114
Other comprehensive income
-
-
Equity accounted earnings
114
114
Share of net income
114
114
Dividends received
(96)
(96)
Sale of shares in equity-accounted investment
(507)
(507)
Equity-accounted investment acquired in business combination (Note
3)
477
477
Foreign currency adjustment
(2)
5
5
Balance as of June 30, 2025
199
199
Comprehensive income:
215
215
Other comprehensive income
-
-
Equity accounted earnings
215
215
Share of net income
215
215
Dividends received
(105)
(105)
Impairment
(34)
(34)
Foreign currency adjustment
(2)
20
20
Balance as of June 30, 2026
$
295
$
295
(1) Includes Sandulela and SmartSwitch Namibia;
(2) The foreign currency
adjustment represents the
effects of the fluctuations
of the ZAR and
Namibian dollar, against
the U.S.
dollar on the carrying value.
Other long-term assets
Summarized below is the breakdown of other long-term assets as of June 30,
2026, and June 30, 2025:
June 30,
June 30,
2026
2025
Total equity investments
$
450
$
-
Investment in
10
% of Cowdi at fair value and loan
(1)
450
-
Investment in Cell C (June 30, 2025:
5
%) at fair value (Note 6)
(2)
-
-
Investment in
87.50
% of CPS (June 30, 2025:
87.50
%) at fair value
(1)(3)
-
-
Insurance investments
4,598
-
Policy holder assets under investment contracts (Note 11)
141
125
Reinsurance assets under insurance contracts (Note 11)
2,416
1,837
Other long-term assets
2,092
1,847
Total other long-term
assets
$
9,697
$
3,809
(1) The Company
determined that Cowdi
and CPS do
not have readily
determinable fair values
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.
(2) The Company disposed of its entire shareholding in Cell C in December 2025,
refer to Note 6 for additional information.
(3) On October 16, 2020, the
High Court of South Africa, Gauteng Division,
Pretoria ordered that Cash Paymaster Services (Pty)
Ltd (“CPS”) be placed into liquidation.
9.
EQUITY-ACCOUNTED
INVESTMENTS AND OTHER LONG-TERM ASSETS (continued)
Other long-term assets (continued)
Cowdi
During the year ended June 30, 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 and they withdraw $
0.2
million during
the year ended
June 30, 2026. Cowdi
had utilized $
0.2
million of the
facility as of
June 30, 2026,
and this amount was
repaid in full
in July 2026.
MobiKwik
The Company
signed a
subscription agreement
with MobiKwik,
which is
one of
India’s
largest independent
mobile payments
networks and buy now
pay later businesses.
Pursuant to the
subscription agreement, the Company agreed
to make an
equity investment
of up to $
40.0
million in MobiKwik over a
24
-month period. The Company made an
initial $
15.0
million investment in August 2016
and a
further
$
10.6
million investment
in June
2017,
under this
subscription
agreement.
During the
year ended
June 30,
2019,
the
Company
paid
$
1.1
million
to
subscribe
for
additional
shares
in
MobiKwik.
The
Company
owned
6,215,620
equity
shares
in
MobiKwik, which as of June 30, 2024, represented approximately
10
% of MobiKwik’s issued share capital.
Refer to 6 for additional
information regarding the determination
of the fair value of
Company’s investment
in MobiKwik. The
Company disposed
of its
entire equity
interest in
MobiKwik for
$
16.4
million during
the year ended
June 30,
2025, and
recorded a
loss of $
59.8
million. This loss comprised
of (i) fair value
adjustments to decrease the
carrying value of its
investment by $
54.2
million
from $
76.3
million as of June 30, 2024, to $
22.1
million as of March 31, 2025, and (ii) a further loss $
5.6
million upon disposal in the
fourth quarter of
fiscal 2025. The
loss is included
in the
caption “Change in
fair value of
equity securities” in
the consolidated statement
of operations for the year ended June 30, 2025.
The
Company
did
not
identify any
observable
transactions
during
the year
ended
June 30,
2024,
and
therefore
there was
no
change in
the fair
value of
MobiKwik during
that year.
During the
year ended
June 30,
2021, MobiKwik
entered into
a number
of
separate agreements
with new
shareholders to
raise additional
capital through
the issuance
of additional
shares. The
Company used
the valuation
from MobiKwik’s
June 2021
capital raise
as the
basis for
its fair
value determination
of $
76.3
million as
of June
30,
2024.
Cell C
On
August
2,
2017,
the
Company,
through
its
subsidiary,
Net1SA,
purchased
75,000,000
class
“A”
shares
of
Cell
C
for
an
aggregate purchase price of ZAR
2.0
billion ($
151.0
million) in cash. The Company funded the transaction through
a combination of
cash and a borrowing facility. Net1 SA has pledged, among other things, its entire equity interest in Cell
C as security for the previous
South African
facilities described
in Note 12.
On September 30,
2022, Cell C
completed its
recapitalization process
which included
the issuance of additional equity instruments by Cell C. The Company’s effective
percentage holding in Cell C’s equity reduced from
15
% to
5
% following the recapitalization. The Company’s investment in Cell C was carried at fair value as of June 30, 2025. Refer to
Note 6 for additional information regarding changes in the fair value of Cell C.
CPS
The Company
deconsolidated
its investment
in CPS
in May
2020. As
of June
30, 2026
and 2025,
respectively,
the Company
owned
87.5
% of CPS’ issued share capital.
9.
EQUITY-ACCOUNTED
INVESTMENTS AND OTHER LONG-TERM ASSETS (continued)
Other long-term assets (continued)
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, 2026:
Cost basis
Unrealized
holding gains
Unrealized
holding losses
Carrying
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 gains
Unrealized
holding losses
Carrying
value
Equity securities:
Investment in CPS
$
-
$
-
$
-
$
-
Held to maturity:
Investment in Cedar Cellular notes
-
-
-
-