22.
COMMITMENTS AND CONTINGENCIES
Capital commitments
As
of
June
30,
2026
and
2025,
the
Company
had
outstanding
capital
commitments
of
approximately
$
0.6
0.2
Purchase obligations
As of June 30,
2026 and 2025, the
Company had purchase
obligations totaling $
5.7
2.9
million, respectively.
The
purchase
obligations
as
of
June
30,
2026,
primarily
relate
to
POS
devices,
components
for
safe
assets
and
inventory
that
will
be
delivered to the Company and sold to customers in fiscal 2027.
Guarantees
The South African
Revenue Service and
certain of the
Company’s customers,
suppliers and other
business partners have
asked
the Company
to provide
them with
guarantees, including
standby letters
of credit,
issued by
South African
banks. The
Company is
required to procure these guarantees for these third parties to operate
its business.
Nedbank has
issued guarantees
to these
third parties
amounting to
ZAR
2.1
0.1
million, translated
at exchange
rates
applicable
as
of
June
30,
2026)
thereby
utilizing
part
of
the
Company’s
short-term
facilities.
The
Company
pays
commission
of
between
0.47
% per annum to
1.84
% per annum of the face
value of these guarantees and does
not recover any of the commission
from
third parties.
RMB has
issued
guarantees
to
these
third
parties
amounting
to
ZAR
70.2
4.3
million,
translated
at
exchange
rates
applicable as of June 30, 2026) thereby utilizing part of the Company’s
short-term facilities.
The Company has not recognized any obligation related to
these guarantees in its consolidated balance sheet as of
June 30, 2026.
The maximum potential
amount that the Company
could pay under
these guarantees is ZAR
72.3
4.4
exchange rates applicable
as of June 30, 2026).
As discussed in Note
12, the Company
has ceded and pledged
certain bank accounts
to Nedbank
as security
for these
guarantees
with an
aggregate value
of ZAR
2.1
0.1
million translated
at exchange
rates
applicable as
of June
30, 2026).
The guarantees
have reduced
the amount
available under
its indirect
and derivative
facilities in
the
Company’s short-term credit facility described
in Note 12.
Contingencies
The
Company
is
subject
to
a
variety
of
insignificant
claims
and
suits
that
arise
from
time
to
time
in
the
ordinary
course
of
business. Management
currently believes
that the
resolution of
these other
matters, individually
or in
the aggregate,
will not
have a
material adverse impact on the Company’s
financial position, results of operations or cash flows.