Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2020 | Feb. 02, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-31203 | |
Entity Registrant Name | NET 1 UEPS TECHNOLOGIES, INC. | |
Entity Incorporation State Country Code | FL | |
Entity Tax Identification Number | 98-0171860 | |
Entity Address Line One | President Place, 4 | |
Entity Address Line Two | Cnr. Jan Smuts Avenue and Bolton Road | |
Entity Address, City or Town | Rosebank, Johannesburg | |
Entity Address, Postal Zip Code | 2196 | |
Entity Address Country | ZA | |
City Area Code | 27 | |
Local Phone Number | 11-343-2000 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | UEPS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,614,559 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001041514 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | [1] |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 206,251 | $ 217,671 | |
Restricted cash related to ATM funding (Note 9) | 60,803 | 14,814 | |
Accounts receivable, net and other receivables (Note 3) | 24,447 | 43,068 | |
Finance loans receivable, net (Note 3) | 21,620 | 15,879 | |
Inventory (Note 4) | 20,939 | 19,860 | |
Total current assets before settlement assets | 334,060 | 311,292 | |
Settlement assets | 2,814 | 8,014 | |
Total current assets | 336,874 | 319,306 | |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of- December: $35,954 June: $29,524 | 8,687 | 6,656 | |
OPERATING LEASE RIGHT-OF-USE (Note 17) | 5,112 | 5,395 | |
EQUITY-ACCOUNTED INVESTMENTS (Note 6) | 53,126 | 65,836 | |
GOODWILL (Note 7) | 28,455 | 24,169 | |
INTANGIBLE ASSETS, NET (Note 7) | 536 | 612 | |
DEFERRED INCOME TAXES | 281 | 358 | |
OTHER LONG-TERM ASSETS, including reinsurance assets (Note 6 and 8) | 43,907 | 31,346 | |
TOTAL ASSETS | 476,978 | 453,678 | |
CURRENT LIABILITIES | |||
Short-term credit facilities for ATM funding (Note 9) | 60,803 | 14,814 | |
Accounts payable | 6,109 | 6,287 | |
Other payables (Note 10) | 25,066 | 23,779 | |
Operating lease liability - current (Note 17) | 2,585 | 2,251 | |
Income taxes payable | 984 | 16,157 | |
Total current liabilities before settlement obligations | 95,547 | 63,288 | |
Settlement obligations | 2,814 | 8,015 | |
Total current liabilities | 98,361 | 71,303 | |
DEFERRED INCOME TAXES | 3,262 | 1,859 | |
OPERATING LEASE LIABILITY - LONG TERM (Note 17) | 2,715 | 3,312 | |
OTHER LONG-TERM LIABILITIES, including insurance policy liabilities (Note 8) | 2,400 | 2,012 | |
TOTAL LIABILITIES | 106,738 | 78,486 | |
REDEEMABLE COMMON STOCK | 84,979 | 84,979 | |
EQUITY | |||
COMMON STOCK (Note 11 ) Authorized: 200,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury - December: 56,614,559 June: 57,118,925 | 80 | 80 | |
PREFERRED STOCK Authorized shares: 50,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: December: - June: - | |||
ADDITIONAL PAID-IN-CAPITAL | 302,196 | 301,489 | |
TREASURY SHARES, AT COST: December: 24,891,292 June: 24,891,292 | (286,951) | (286,951) | |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Note 12) | (141,242) | (169,075) | |
RETAINED EARNINGS | 411,178 | 444,670 | |
TOTAL NET1 EQUITY | 285,261 | 290,213 | |
NON-CONTROLLING INTEREST | 0 | 0 | |
TOTAL EQUITY | 285,261 | 290,213 | |
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS' EQUITY | $ 476,978 | $ 453,678 | |
[1] | Derived from audited financial statements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 35,954 | $ 29,524 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 56,614,559 | 57,118,925 |
Common stock, shares outstanding | 56,614,559 | 57,118,925 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury shares, shares outstanding | 24,891,292 | 24,891,292 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | [1] | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Condensed Consolidated Statements Of Operations [Abstract] | ||||||
REVENUE (Note 16) | $ 32,305 | $ 38,918 | $ 67,441 | $ 85,134 | ||
EXPENSE | ||||||
Cost of goods sold, IT processing, servicing and support | 24,339 | 26,746 | 50,799 | 57,452 | ||
Selling, general and administration | 22,097 | 21,418 | 40,625 | 42,040 | ||
Depreciation and amortization | 1,074 | 1,174 | 1,997 | 2,498 | ||
OPERATING LOSS | (15,205) | (10,420) | (25,980) | (16,856) | ||
CHANGE IN FAIR VALUE OF EQUITY SECURITIES (Note 5 and 6) | 15,128 | 0 | 15,128 | 0 | ||
GAIN ON DISPOSAL OF FIHRST (Note 2) | 0 | 9,743 | 0 | 9,743 | ||
LOSS ON DISPOSAL OF EQUITY-ACCOUNTED INVESTMENT (Note 6) | 13 | 0 | 13 | 0 | ||
INTEREST INCOME | 717 | 1,082 | 1,328 | 1,445 | ||
INTEREST EXPENSE | 677 | 3,129 | 1,424 | 4,476 | ||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE | (50) | (2,724) | (10,961) | (10,144) | ||
INCOME TAX EXPENSE (Note 19) | 3,468 | 707 | 2,378 | 1,677 | ||
NET LOSS BEFORE (LOSS) INCOME FROM EQUITY-ACCOUNTED INVESTMENTS | (3,518) | (3,431) | (13,339) | (11,821) | ||
(LOSS) INCOME FROM EQUITY-ACCOUNTED INVESTMENTS (Note 6) | (1,016) | 506 | (20,153) | 1,569 | ||
NET LOSS FROM CONTINUING OPERATIONS | (4,534) | (2,925) | (33,492) | (10,252) | ||
NET INCOME FROM DISCONTINUED OPERATIONS (Note 21) | 0 | 2,720 | 0 | 5,655 | ||
NET LOSS | (4,534) | (205) | (33,492) | (4,597) | ||
NET (LOSS) INCOME ATTRIBUTABLE TO NET1 | (4,534) | (205) | (33,492) | (4,597) | ||
Continuing | (4,534) | (2,925) | (33,492) | (10,252) | ||
Discontinued | $ 0 | $ 2,720 | $ 0 | $ 5,655 | ||
Net (loss) earnings per share, in United States dollars (Note 14): | ||||||
Basic (loss) earnings attributable to Net1 shareholders | $ (0.08) | $ 0 | $ (0.59) | $ (0.08) | ||
Continuing | (0.08) | (0.05) | (0.59) | (0.18) | ||
Discontinued | 0 | 0.05 | 0 | 0.10 | ||
Diluted (loss) earnings attributable to Net1 shareholders | (0.08) | 0 | (0.59) | (0.08) | ||
Continuing | (0.08) | (0.05) | (0.59) | (0.18) | ||
Discontinued | $ 0 | $ 0.05 | $ 0 | $ 0.10 | ||
[1] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Net loss | $ (4,534) | $ (205) | [1] | $ (33,492) | $ (4,597) | [1] |
Other comprehensive income (loss), net of taxes | ||||||
Movement in foreign currency translation reserve | 20,003 | 19,114 | 26,145 | 1,029 | ||
Movement in foreign currency translation reserve related to equity-accounted investments | 0 | (491) | 1,688 | 2,227 | ||
Total other comprehensive income, net of taxes | 20,003 | 20,201 | 27,833 | 4,834 | ||
Comprehensive income (loss) | 15,469 | 19,996 | (5,659) | 237 | ||
Comprehensive income (loss) attributable to Net1 | 15,469 | 19,996 | (5,659) | 237 | ||
FIHRST [Member] | ||||||
Other comprehensive income (loss), net of taxes | ||||||
Release of foreign currency translation reserve related to disposal of FIHRST | $ 0 | $ 1,578 | $ 0 | $ 1,578 | ||
[1] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Changes In Equity - USD ($) $ in Thousands | Total | Common And Treasury Stock [Member] | Treasury Stock [Member] | Number Of Shares, Net Of Treasury [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Parent [Member] | Noncontrolling Interest [Member] | ||
Balance, Number of Shares at Jun. 30, 2019 | 81,459,717 | (24,891,292) | 56,568,425 | ||||||||
Balance at Jun. 30, 2019 | $ 317,342 | $ 80 | $ (286,951) | $ 276,997 | $ 523,028 | $ (195,812) | $ 317,342 | $ 0 | |||
Redeemable Common Stock, Balance at Jun. 30, 2019 | 107,672 | ||||||||||
Stock-based compensation charge (Note 13) | 823 | 823 | 823 | ||||||||
Stock based-compensation charge related to equity-accounted investment (Note 6) | 71 | 71 | 71 | ||||||||
Net loss | (4,597) | (4,597) | (4,597) | 0 | |||||||
Other comprehensive income (Note 12) | $ 4,834 | 4,834 | 4,834 | 0 | |||||||
Balance, Number of Shares at Dec. 31, 2019 | 56,568,425 | 81,459,717 | (24,891,292) | 56,568,425 | |||||||
Balance at Dec. 31, 2019 | $ 318,473 | $ 80 | $ (286,951) | 277,891 | 518,431 | (190,978) | 318,473 | 0 | |||
Redeemable Common Stock, Balance at Dec. 31, 2019 | 107,672 | ||||||||||
Balance, Number of Shares at Sep. 30, 2019 | 81,459,717 | (24,891,292) | 56,568,425 | ||||||||
Balance at Sep. 30, 2019 | 298,041 | $ 80 | $ (286,951) | 277,455 | 518,636 | (211,179) | 298,041 | 0 | |||
Redeemable Common Stock, Balance at Sep. 30, 2019 | 107,672 | ||||||||||
Stock-based compensation charge (Note 13) | 436 | 436 | 436 | ||||||||
Net loss | (205) | (205) | (205) | 0 | |||||||
Other comprehensive income (Note 12) | $ 20,201 | 20,201 | 20,201 | 0 | |||||||
Balance, Number of Shares at Dec. 31, 2019 | 56,568,425 | 81,459,717 | (24,891,292) | 56,568,425 | |||||||
Balance at Dec. 31, 2019 | $ 318,473 | $ 80 | $ (286,951) | 277,891 | 518,431 | (190,978) | 318,473 | 0 | |||
Redeemable Common Stock, Balance at Dec. 31, 2019 | 107,672 | ||||||||||
Balance, Number of Shares at Jun. 30, 2020 | 82,010,217 | (24,891,292) | 57,118,925 | ||||||||
Balance at Jun. 30, 2020 | 290,213 | [1] | $ 80 | $ (286,951) | 301,489 | 444,670 | (169,075) | 290,213 | 0 | ||
Redeemable Common Stock, Balance at Jun. 30, 2020 | [1] | 84,979 | |||||||||
Balance, Number of Shares at Sep. 30, 2020 | 81,530,017 | (24,891,292) | 56,638,725 | ||||||||
Balance at Sep. 30, 2020 | 269,542 | $ 80 | $ (286,951) | 301,946 | 415,712 | (161,245) | 269,542 | 0 | |||
Redeemable Common Stock, Balance at Sep. 30, 2020 | 84,979 | ||||||||||
Balance, Number of Shares at Jun. 30, 2020 | 82,010,217 | (24,891,292) | 57,118,925 | ||||||||
Balance at Jun. 30, 2020 | 290,213 | [1] | $ 80 | $ (286,951) | 301,489 | 444,670 | (169,075) | 290,213 | 0 | ||
Exercise of stock option (Note 13) | $ 18 | $ 0 | 18 | 18 | |||||||
Exercise of stock option (Note 13), shares | 5,834 | 5,834 | 5,834 | ||||||||
Redeemable Common Stock, Balance at Jun. 30, 2020 | [1] | $ 84,979 | |||||||||
Stock-based compensation charge (Note 13) | 928 | 928 | 928 | ||||||||
Reversal of stock-based compensation charge (Note 13) | (297) | (297) | (297) | ||||||||
Reversal of stock-based compensation charge (Note 13), shares | (510,200) | (510,200) | |||||||||
Stock based-compensation charge related to equity-accounted investment (Note 6) | (40) | (40) | (40) | ||||||||
Proceeds from disgorgement of shareholders' short-swing profits (Note 22) | 98 | 98 | 98 | ||||||||
Net loss | (33,492) | (33,492) | (33,492) | 0 | |||||||
Other comprehensive income (Note 12) | $ 27,833 | 27,833 | 27,833 | 0 | |||||||
Balance, Number of Shares at Dec. 31, 2020 | 56,614,559 | 81,505,851 | (24,891,292) | 56,614,559 | |||||||
Balance at Dec. 31, 2020 | $ 285,261 | $ 80 | $ (286,951) | 302,196 | 411,178 | (141,242) | 285,261 | 0 | |||
Redeemable Common Stock, Balance at Dec. 31, 2020 | 84,979 | ||||||||||
Balance, Number of Shares at Sep. 30, 2020 | 81,530,017 | (24,891,292) | 56,638,725 | ||||||||
Balance at Sep. 30, 2020 | 269,542 | $ 80 | $ (286,951) | 301,946 | 415,712 | (161,245) | 269,542 | 0 | |||
Exercise of stock option (Note 13) | 18 | $ 0 | 18 | 18 | |||||||
Exercise of stock option (Note 13), shares | 5,834 | 5,834 | |||||||||
Redeemable Common Stock, Balance at Sep. 30, 2020 | 84,979 | ||||||||||
Stock-based compensation charge (Note 13) | 246 | 246 | 246 | ||||||||
Reversal of stock-based compensation charge (Note 13) | (14) | (14) | (14) | ||||||||
Reversal of stock-based compensation charge (Note 13), shares | (30,000) | (30,000) | |||||||||
Net loss | (4,534) | (4,534) | (4,534) | 0 | |||||||
Other comprehensive income (Note 12) | $ 20,003 | 20,003 | 20,003 | 0 | |||||||
Balance, Number of Shares at Dec. 31, 2020 | 56,614,559 | 81,505,851 | (24,891,292) | 56,614,559 | |||||||
Balance at Dec. 31, 2020 | $ 285,261 | $ 80 | $ (286,951) | $ 302,196 | $ 411,178 | $ (141,242) | $ 285,261 | $ 0 | |||
Redeemable Common Stock, Balance at Dec. 31, 2020 | $ 84,979 | ||||||||||
[1] | Derived from audited financial statements. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Cash flows from operating activities | ||||||
Net loss | $ (4,534) | $ (205) | [1] | $ (33,492) | $ (4,597) | [1] |
Depreciation and amortization | 1,074 | 4,381 | 1,997 | 9,146 | ||
Movement in allowance for doubtful accounts receivable | 100 | (429) | 614 | 83 | ||
Loss from equity-accounted investments (Note 6) | 1,016 | (506) | 20,153 | (1,569) | ||
Movement in allowance for doubtful loans to equity-accounted investments | 661 | 620 | 739 | 620 | ||
Change in fair value of equity securities (Note 5 and 6) | (15,128) | 0 | [1] | (15,128) | 0 | [1] |
Fair value adjustment related to financial liabilities | 790 | 147 | 1,676 | 234 | ||
Interest payable | 42 | 526 | (21) | 1,158 | ||
Gain on disposal of FIHRST (Note 2) | 0 | (9,743) | [1] | 0 | (9,743) | [1] |
Loss on disposal of equity-accounted investment (Note 2) | 13 | 0 | [1] | 13 | 0 | [1] |
Loss (Profit) on disposal of property, plant and equipment | 752 | (49) | 742 | (203) | ||
Stock-based compensation charge (Note 13) | 232 | 436 | 631 | 823 | ||
Dividends received from equity accounted investments | 68 | 380 | 125 | 1,448 | ||
Decrease (Increase) in accounts receivable and finance loans receivable | 6,559 | 8,767 | (1,556) | 3,101 | ||
(Increase) Decrease in inventory | (145) | (682) | 2,214 | (12,995) | ||
(Decrease) Increase in accounts payable and other payables | (3,084) | 3,132 | (3,499) | (264) | ||
(Decrease) Increase in taxes payable | (421) | (2,244) | (15,338) | (956) | ||
Increase (Decrease) in deferred taxes | 26 | (117) | (1,729) | (205) | ||
Net cash (used in) provided by operating activities | (11,979) | 4,414 | (41,859) | (13,919) | ||
Cash flows from investing activities | ||||||
Capital expenditures | (3,023) | (827) | (3,298) | (3,451) | ||
Proceeds from disposal of property, plant and equipment | 75 | 90 | 91 | 303 | ||
Proceeds from disposal of DNI as equity-accounted investment (Note 3) | 5,815 | 0 | 6,144 | 0 | ||
Proceeds from disposal of Net1 Korea, net of cash disposed (Note 2) | 0 | 0 | 20,114 | 0 | ||
Proceeds from disposal of FIHRST, net of cash disposed (Note 2) | 0 | 10,895 | 0 | 10,895 | ||
Investment in equity-accounted investments (Note 6) | 0 | 0 | 0 | (1,250) | ||
Loan to equity-accounted investment (Noe 6) | (1,160) | (612) | (1,238) | (612) | ||
Repayment of loans by equity-accounted investments | 0 | 0 | 0 | 4,268 | ||
Net change in settlement assets | 1,377 | 3,371 | 5,445 | (10,138) | ||
Net cash provided by investing activities | 3,084 | 12,917 | 27,258 | 15 | ||
Cash flows from financing activities | ||||||
Proceeds from bank overdraft (Note 9) | 137,333 | 207,876 | 206,479 | 391,550 | ||
Repayment of bank overdraft (Note 9) | (88,258) | (193,725) | (165,108) | (378,554) | ||
Proceeds from disgorgement of shareholders' short-swing profits (Note 22) | 26 | 0 | 124 | 0 | ||
Proceeds from exercise of stock options | 18 | 0 | 18 | 0 | ||
Long-term borrowings utilized (Note 9) | 0 | 0 | 0 | 14,798 | ||
Repayment of long-term borrowings (Note 9) | 0 | (11,313) | 0 | (11,313) | ||
Guarantee fee | 0 | 0 | 0 | (148) | ||
Finance lease capital repayments | 0 | (26) | 0 | (52) | ||
Net change in settlement obligations | (1,377) | (3,371) | (5,445) | 10,138 | ||
Net cash provided by (used in) financing activities | 47,742 | (559) | 36,068 | 26,419 | ||
Effect of exchange rate changes on cash | 12,296 | 7,508 | 13,102 | 1,053 | ||
Net increase in cash, cash equivalents and restricted cash | 51,143 | 24,280 | 34,569 | 13,568 | ||
Cash, cash equivalents and restricted cash - beginning of period | 215,911 | 110,799 | 232,485 | 121,511 | ||
Cash, cash equivalents and restricted cash - end of period (Note 15) | $ 267,054 | $ 135,079 | $ 267,054 | $ 135,079 | ||
[1] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Basis Of Presentation And Summa
Basis Of Presentation And Summary Of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2020 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation And Summary Of Significant Accounting Policies | 1. Basis of Presentation and Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements include all majority-owned subsidiaries over which the Company exercises control and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission for Quarterly Reports on Form 10-Q and include all of the information and disclosures required for interim financial reporting. The results of operations for the three months ended December 31, 2020 and 2019, are not necessarily indicative of the results for the full year. The Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements, accounting policies and financial notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair representation of financial results for the interim periods presented. References to “Net1” are references solely to Net 1 UEPS Technologies, Inc. References to the “Company” refer to Net1 and its consolidated subsidiaries, collectively, unless the context otherwise requires. Impact of COVID-19 on the Company’s business The COVID-19 pandemic did not impact the Company’s South African operations as severely during the three and six months ended December 31, 2020, compared to the last four months of the year ended June 30, 2020. However, on December 28, 2020, the country moved back to Level 3 restrictions which remain in place as of the date of this report. This level of restrictions is not as severe as that applied during April and May 2020 but is greater than was applied through most of the six months ended December 31, 2020. The increase in restrictions was in response to a second wave of infections, which has been more severe than the first wave. While all the Company’s businesses continue to operate, it has increased preventive measures and it is unclear to what extent activity levels will be affected. The Company has experienced an increase in claims in its life insurance business, which the Company believes is linked to the second wave. The broader implications of COVID-19 on the Company’s results of operations and overall financial performance continue to remain uncertain. While the Company has not incurred significant disruptions thus far from the COVID-19 outbreak, apart from the two months in April and May 2020 when loan origination was curtailed, the Company is unable to accurately predict the impact that COVID-19 will have due to numerous uncertainties, including the severity and duration of the outbreak, actions that may be taken by governmental authorities, the impact on the Company’s customers and other factors. The Company will continue to evaluate the nature and extent of the impact on its business, consolidated results of operations, and financial condition. Recent accounting pronouncements adopted There were no new accounting pronouncements adopted by the Company during the three and six months ended December 31, 2020. Recent accounting pronouncements not yet adopted as of December 31, 2020 In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance regarding Measurement of Credit Losses on Financial Instruments . The guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, an entity is required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for the Company beginning July 1, 2023. The Company is currently assessing the impact of this guidance on its financial statements and related disclosures, but does not expect the impact on its financial results to be material. In August 2018, the FASB issued guidance regarding Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement. The guidance modifies the disclosure requirements related to fair value measurement. This guidance is effective for the Company beginning July 1, 2021. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statement’s disclosure. 1. Basis of Presentation and Summary of Significant Accounting Policies (continued) Recent accounting pronouncements not yet adopted as of December 31, 2020 (continued) In November 2019, the FASB issued guidance regarding Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). The guidance provides a framework to stagger effective dates for future major accounting standards and amends the effective dates for certain major new accounting standards to give implementation relief to certain types of entities, including Smaller Reporting Companies. The Company is a Smaller Reporting Company. Specifically, the guidance changes some effective dates for certain new standards on the following topics in the FASB Codification, namely Derivatives and Hedging (ASC 815); Leases (ASC 842); Financial Instruments — Credit Losses (ASC 326); and Intangibles — Goodwill and Other (ASC 350). The guidance defers the adoption date of guidance regarding Measurement of Credit Losses on Financial Instruments by the Company from July 1, 2020 to July 1, 2023, and defers the adoption guidance regarding Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement by the Company from July 1, 2020 to July 1, 2021. In January 2020, the FASB issued guidance regarding Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815. The guidance clarifies that an entity should consider observable transactions that require an entity to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with U.S GAAP guidance immediately before applying or upon discontinuing the equity method. The guidance also clarifies that, when determining the accounting for certain forward contracts and purchased options an entity should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. This guidance is effective for the Company beginning July 1, 2021. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statement’s disclosure. Restatement of financial statements Related to overstatement of revenue and cost of goods sold, IT processing, servicing and support In November 2020, the Company identified an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support during its assessment and systems development of new products. The Company incorrectly duplicated the recognition of acquiring fees in revenue and recorded an equal and opposite entry in cost of goods sold, IT processing, servicing and support in its unaudited condensed consolidated statement of operations due to the misinterpretation of certain system reports. The error did not impact on the Company’s operating income (loss), net income, balance sheet or cash flows. The Company determined that the error impacted reported results for the period from July 1, 2018 to September 30, 2020. The error impacts the Company’s reported results and the Company has restated its unaudited condensed consolidated statement of operations and certain note presentation, primarily Note 16 (Revenue) and Note 18 (Operating segments) for the three and six months ended December 31, 2019, to correct for the error. The tables below present the impact of the restatement on the Company’s unaudited condensed consolidated statement of operations for the three months ended September 30, 2020, and the three and six months ended December 31, 2019: Unaudited condensed consolidated statement of operations Three months ended September 30, 2020 (1) As reported Correction As restated (in thousands) Revenue $ 37,113 $ ( 1,977) $ 35,136 Cost of goods sold, IT processing, servicing and support $ 28,437 $ ( 1,977) $ 26,460 Three months ended December 31, 2019 As reported Correction As restated (in thousands) Revenue $ 40,567 $ ( 1,649) $ 38,918 Cost of goods sold, IT processing, servicing and support $ 28,395 $ ( 1,649) $ 26,746 Six months ended December 31, 2019 As reported Correction As restated (in thousands) Revenue $ 88,505 $ ( 3,371) $ 85,134 Cost of goods sold, IT processing, servicing and support $ 60,823 $ ( 3,371) $ 57,452 (1) The error for the three months ended December 31, 2020, also impacted the six months ended December 31, 2020, by the same amount and the therefore the amounts reported for the six months ended December 31, 2020, include the correction of the error. 1. Basis of Presentation and Summary of Significant Accounting Policies (continued) Restatement of financial statements (continued) Related to overstatement of revenue and cost of goods sold, IT processing, servicing and support (continued) The table below presents the impact of the restatement on the affected lines in the Processing and Total columns included in the revenue note (Note 16) for the three months ended September 30, 2020, and the three and six months ended December 31, 2019: Three months ended Three months ended Six months ended September 30, 2020 (1) December 31, 2019 Processing Total Processing Total Processing Total Processing fees - as restated $ 16,330 $ 16,929 $ 14,938 $ 16,236 $ 29,132 $ 31,679 As reported 18,307 18,906 16,587 17,885 32,503 35,050 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) South Africa - as restated 14,774 15,373 14,088 15,386 27,083 29,630 As reported 16,751 17,350 15,737 17,035 30,454 33,001 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) Rest of world $ 1,556 $ 1,556 $ 850 $ 850 $ 2,049 $ 2,049 Total revenue, derived from the following geographic locations - as restated $ 21,518 $ 35,136 $ 22,847 $ 38,918 $ 48,940 $ 85,134 As reported 23,495 37,113 24,496 40,567 52,311 88,505 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) South Africa - as restated 19,962 33,580 21,997 38,068 46,891 83,085 As reported 21,939 35,557 23,646 39,717 50,262 86,456 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) Rest of world $ 1,556 $ 1,556 $ 850 $ 850 $ 2,049 $ 2,049 (1) The error for the three months ended December 31, 2020, also impacted the six months ended December 31, 2020, by the same amount and the therefore the amount reported for the six months ended December 31, 2020, includes the correction of the error. The table below presents the impact of the restatement to the Processing operating segment revenue included in the operating segment note (Note 18) for the three months ended September 30, 2020, and the three and six months ended December 31, 2019: Revenue (as restated) Reportable Segment Inter-segment From external customers Processing - as restated (1) $ 22,506 $ 988 $ 21,518 As reported 24,483 988 23,495 Correction ( 1,977) - ( 1,977) Total for the three months ended September 30, 2020 - as restated 36,982 1,846 35,136 As reported 38,959 1,846 37,113 Correction ( 1,977) - ( 1,977) Processing - as restated $ 25,022 $ 2,175 $ 22,847 As reported 26,671 2,175 24,496 Correction ( 1,649) - ( 1,649) Total for the three months ended December 31, 2019 - as restated 42,180 3,262 38,918 As reported 43,829 3,262 40,567 Correction ( 1,649) - ( 1,649) Processing - as restated $ 53,317 $ 4,377 $ 48,940 As reported 56,688 4,377 52,311 Correction ( 3,371) - ( 3,371) Total for the six months ended December 31, 2019 - as restated 91,852 6,718 85,134 As reported 95,223 6,718 88,505 Correction $ ( 3,371) $ - $ ( 3,371) (1) The error for the three months ended December 31, 2020, also impacted the six months ended December 31, 2020, by the same amount and the therefore the amounts reported for the six months ended December 31, 2020, include the correction of the error. |
Disposal Of Controlling Interes
Disposal Of Controlling Interest In FIHRST | 6 Months Ended |
Dec. 31, 2020 | |
Disposal Of Controlling Interest In FIHRST [Abstract] | |
Disposal Of Controlling Interest In FIHRST | 2. Disposal of controlling interest in FIHRST 2020 Disposals December 2019 disposal of FIHRST In November 2019, the Company through its wholly owned subsidiary, Net1 Applied Technologies South Africa Proprietary Limited (“Net1 SA”), entered into an agreement with Transaction Capital Payment Solutions Proprietary Limited, or its nominee, a limited liability private company incorporated in the Republic of South Africa, pursuant to which Net1 SA agreed to sell its entire shareholding in Net1 FIHRST Holdings Proprietary Limited (“FIHRST”) for $ 11.7 million (ZAR 172.2 million). The transaction closed in December 2019. FIHRST was deconsolidated following the closing of the transaction. Net1 SA was obliged to utilize the full purchase price received from the sale of FIHRST to partially settle its obligations under its lending arrangements and applied the proceeds received against its outstanding borrowings. The table below presents the impact of the deconsolidation of FIHRST and the calculation of the net gain recognized on deconsolidation: FIHRST December 31, 2019 Fair value of consideration received $ 11,749 Less: carrying value of FIHRST, comprising 1,870 Cash and cash equivalents 854 Accounts receivable, net 367 Property, plant and equipment, net 64 Goodwill (Note 7) 599 Intangible assets, net 30 Deferred income taxes assets 42 Accounts payable ( 7) Other payables ( 1,437) Income taxes payable ( 220) Released from accumulated other comprehensive income – foreign currency translation reserve (Note 12) 1,578 Settlement assets 17,406 Settlement liabilities ( 17,406) Gain recognized on disposal, before tax 9,879 Taxes related to gain recognized on disposal, comprising: - Capital gains tax 2,418 Release of valuation allowance related to capital losses previously unutilized (1) ( 2,418) Transaction costs 136 Gain recognized on disposal, after tax $ 9,743 (1) Net1 SA recorded a valuation allowance related to capital losses previously generated but not utilized. A portion of these unutilized capital losses was utilized as a result of the disposal of FIHRST and, therefore, the equivalent portion of the valuation allowance created was released. |
Accounts Receivable, Net And Ot
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020, and June 30, 2020 , are presented in the table below: December 31, June 30, 2020 2020 Accounts receivable, trade, net $ 10,288 $ 8,458 Accounts receivable, trade, gross 10,647 8,711 Allowance for doubtful accounts receivable, end of period 359 253 Beginning of period 253 661 Reversed to statement of operations - ( 155) Charged to statement of operations 70 181 Utilized ( 11) ( 151) Deconsolidation - ( 178) Foreign currency adjustment 47 ( 105) Taxes refundable related to sale of Net1 Korea - 19,796 Loans provided to Carbon 3,000 3,000 Current portion of amount outstanding related to sale of remaining interest in DNI - 2,756 Other receivables 11,159 9,058 Total accounts receivable, net and other receivables $ 24,447 $ 43,068 In January 2020, the Company agreed that the purchaser of Net1 Korea would withhold potential capital gains taxes of approximately $ 19.8 million (KRW 23.8 billion) from the Net1 Korea transaction price and pay such amounts, on behalf of Net1 BV, to the South Korean tax authorities. Net1 BV commenced a process to claim a refund from the South Korean tax authorities of the potential amount withheld and received this amount of approximately $ 20.1 million (KRW 23.8 billion) in September 2020. On October 26, 2020, DNI settled the full amount outstanding of $ 5.7 million related to sale of the remaining interest in DNI, including the amounts included in other long-term assets, refer to Note 6. The Company received $ 0.3 million on September 30, 2020, for total receipts of $ 6.0 million. Other receivables include prepayments, deposits and other receivables. Finance loans receivable, net The Company’s finance loans receivable, net, as of December 31, 2020, and June 30, 2020 , is presented in the table below: December 31, June 30, 2020 2020 Microlending finance loans receivable, net $ 21,620 $ 15,879 Microlending finance loans receivable, gross 24,017 17,737 Allowance for doubtful finance loans receivable, end of period 2,397 1,858 Beginning of period 1,858 3,199 Reversed to statement of operations ( 557) ( 492) Charged to statement of operations 1,105 1,211 Utilized ( 369) ( 1,451) Foreign currency adjustment 360 ( 609) Working capital finance loans receivable, gross - 5,800 Allowance for doubtful finance loans receivable, end of period - 5,800 Beginning of period 5,800 5,800 Utilized ( 5,800) - Total accounts receivable, net $ 21,620 $ 15,879 Gross microlending finance loans receivable as of December 31, 2020, increased compared to June 30, 2020, following subdued lending activity due to COVID-19 restrictions in April and early May 2020. The Company was unable to originate any significant loans in April and early May 2020. 3. Accounts receivable, net and other receivables and finance loans receivable, net (continued) Finance loans receivable, net (continued) The Company created an allowance for doubtful working capital finance receivables related to a receivable due from a customer based in the United States during the year ended June 30, 2018. The Company commenced legal proceedings against the customer in 2018. The customer is engaged in bankruptcy proceedings. In December 2020, the Company withdrew its claim lodged in the bankruptcy proceedings because it does not believe it will recover the receivable via these proceedings, or via any other process. In December 2020, the Company utilized the entire allowance for doubtful working capital finance receivables against the outstanding receivable. |
Inventory
Inventory | 6 Months Ended |
Dec. 31, 2020 | |
Inventory [Abstract] | |
Inventory | 4. Inventory The Company’s inventory comprised the following categories as of December 31, 2020, and June 30, 2020 December 31, June 30, 2020 2020 Finished goods $ 20,939 $ 15,618 Finished goods subject to sale restrictions - 4,242 $ 20,939 $ 19,860 Finished goods subject to sale restrictions represents airtime inventory purchased in March 2020, that could only be sold by the Company from October 1, 2020. As of December 31, 2020, finished goods includes $ 16.4 million of airtime inventory that was previously classified as finished goods subject to sale restrictions. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | 5. Fair value of financial instruments Initial recognition and measurement Financial instruments are recognized when the Company becomes a party to the transaction. Initial measurements are at cost, which includes transaction costs. Risk management The Company manages its exposure to currency exchange, translation, interest rate, customer concentration, credit and equity price and liquidity risks as discussed below. Currency exchange risk The Company is subject to currency exchange risk because it purchases inventories that it is required to settle in other currencies, primarily the euro and U.S. dollar. The Company has used forward contracts in order to limit its exposure in these transactions to fluctuations in exchange rates between the South African rand (“ZAR”), on the one hand, and the U.S. dollar and the euro, on the other hand. Translation risk Translation risk relates to the risk that the Company’s results of operations will vary significantly as the U.S. dollar is its reporting currency, but it earns a significant amount of its revenues and incurs a significant amount of its expenses in ZAR. The U.S. dollar has fluctuated significantly against the ZAR over the past three years. As exchange rates are outside the Company’s control, there can be no assurance that future fluctuations will not adversely affect the Company’s results of operations and financial condition. Interest rate risk As a result of its normal borrowing activities, the Company’s operating results are exposed to fluctuations in interest rates, which it manages primarily through regular financing activities. The Company generally maintains investments in cash equivalents and held to maturity investments and has occasionally invested in marketable securities. Microlending credit risk The Company is exposed to credit risk in its microlending activities, which provide unsecured short-term loans to qualifying customers. The Company manages this risk by performing an affordability test for each prospective customer and assigning a “creditworthiness score”, which takes into account a variety of factors such as other debts and total expenditures on normal household and lifestyle expenses. 5. Fair value of financial instruments (continued) Risk management (continued) Credit risk Credit risk relates to the risk of loss that the Company would incur as a result of non-performance by counterparties. The Company maintains credit risk policies in respect of its counterparties to minimize overall credit risk. These policies include an evaluation of a potential counterparty’s financial condition, credit rating, and other credit criteria and risk mitigation tools as the Company’s management deems appropriate. With respect to credit risk on financial instruments, the Company maintains a policy of entering into such transactions only with South African and European financial institutions that have a credit rating of “B” (or its equivalent) or better, as determined by credit rating agencies such as Standard & Poor’s, Moody’s and Fitch Ratings. Equity price and liquidity risk Equity price risk relates to the risk of loss that the Company would incur as a result of the volatility in the exchange-traded price of equity securities that it holds. The market price of these securities may fluctuate for a variety of reasons and, consequently, the amount that the Company may obtain in a subsequent sale of these securities may significantly differ from the reported market value. Equity liquidity risk relates to the risk of loss that the Company would incur as a result of the lack of liquidity on the exchange on which those securities are listed. The Company may not be able to sell some or all of these securities at one time, or over an extended period of time without influencing the exchange traded price, or at all. Financial instruments The following section describes the valuation methodologies the Company uses to measure its significant financial assets and liabilities at fair value. In general, and where applicable, the Company uses quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing methodology would apply to Level 1 investments. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly. These investments would be included in Level 2 investments. In circumstances in which inputs are generally unobservable, values typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Investments valued using such techniques are included in Level 3 investments. Asset measured at fair value using significant unobservable inputs – investment in Cell C The Company’s Level 3 asset represents an investment of 75,000,000 class “A” shares in Cell C, a significant mobile telecoms provider in South Africa. The Company used a discounted cash flow model developed by the Company to determine the fair value of its investment in Cell C as of December 31, 2020, and June 30, 2020, and valued Cell C at $ 0.0 (zero) at December 31, 2020, and June 30, 2020. The Company believes the Cell C business plan utilized in the Company’s valuation is reasonable based on the current performance and the expected changes in Cell C’s business model. The Company changed certain valuation assumptions when preparing the December 31, 2020, valuation compared with the June 30, 2020, valuation. For the December 31, 2020, valuation, the Company incorporated the payments under the lease liabilities into the cash flow forecasts instead of including the December 31, 2020, carrying value in net debt and assumed that the deferred tax asset would be utilized over the forecast period instead of including the fair value of the deferred tax asset as of December 31, 2020, in the valuation. For the June 30, 2020, valuation, the Company included the carrying value of the lease liabilities within net debt and included the June 30, 2020, fair value of the deferred tax asset in the valuation. The Company utilized the latest approved business plan provided by Cell C management for the period ended December 31, 2025, for the December 31, 2020 valuation and the period ended December 31, 2024 for the June 30, 2020 valuation, and the following key valuation inputs were used as of December 31, 2020 and June 30, 2020: Weighted Average Cost of Capital ("WACC"): Between 17% and 22% over the period of the forecast Long term growth rate: 3% ( 3% as of June 30, 2020) Marketability discount: 10% Minority discount: 15% Net adjusted external debt - December 31, 2020: (1) ZAR 11.2 billion ($ 0.8 billion), includes no lease liabilities Net adjusted external debt - June 30, 2020: (2) ZAR 15.8 billion ($ 0.9 billion), includes ZAR 4.4 billion of lease liabilities Deferred tax (incl, assessed tax losses) - December 31, 2020: (1) ZAR 0 ($ 0) Deferred tax (incl, assessed tax losses) - June 30, 2020: (2) ZAR 2.9 billion ($ 167.3 million) (1) translated from ZAR to U.S. dollars at exchange rates applicable as of December 31, 2020. (2) translated from ZAR to U.S. dollars at exchange rates applicable as of June 30, 2020. 5. Fair value of financial instruments (continued) Financial instruments (continued) Asset measured at fair value using significant unobservable inputs – investment in Cell C (continued) The following table presents the impact on the carrying value of the Company’s Cell C investment of a 1.0% increase and 1.0% decrease in the WACC rate and the EBITDA margins used in the Cell C valuation on December 31, 2020, all amounts translated at exchange rates applicable as of December 31, 2020: Sensitivity for fair value of Cell C investment 1.0% increase 1.0% decrease WACC rate $ - $ 1,514 EBITDA margin $ 627 $ - The fair value of the Cell C shares as of December 31, 2020, represented 0% of the Company’s total assets, including these shares. The Company expects to hold these shares for an extended period of time and that there will be short-term equity price volatility with respect to these shares particularly given the current situation of Cell C’s business. Derivative transactions - Foreign exchange contracts As part of the Company’s risk management strategy, the Company enters into derivative transactions to mitigate exposures to foreign currencies using foreign exchange contracts. These foreign exchange contracts are over-the-counter derivative transactions. All of the Company’s derivative exposures are with counterparties that have long-term credit ratings of “B” (or equivalent) or better. The Company uses quoted prices in active markets for similar assets and liabilities to determine fair value (Level 2). The Company has no derivatives that are measured under Level 1 or 3 of the fair value hierarchy. The Company had no outstanding foreign exchange contracts as of December 31, 2020, or June 30, 2020. The following table presents the Company’s assets measured at fair value on a recurring basis as of December 31, 2020, according to the fair value hierarchy: Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment in Cell C $ - $ - $ - $ - Related to insurance business: Cash, cash equivalents and restricted cash (included in other long-term assets) 593 - - 593 Fixed maturity investments (included in cash and cash equivalents) - - - - Total assets at fair value $ 593 $ - $ - $ 593 The following table presents the Company’s assets measured at fair value on a recurring basis as of June 30, 2020, according to the fair value hierarchy: Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment in Cell C $ - $ - $ - $ - Related to insurance business Cash and cash equivalents (included in other long-term assets) 490 - - 490 Fixed maturity investments (included in cash and cash equivalents) 4,198 - - 4,198 Total assets at fair value $ 4,688 $ - $ - $ 4,688 5. Fair value of financial instruments (continued) There have been no transfers in or out of Level 3 during the three and six months ended December 31, 2020 and 2019, respectively. There was no movement in the carrying value of assets measured at fair value on a recurring basis, and categorized within Level 3, during the three and six months ended December 31, 2020 and 2019. Summarized below is the movement in the carrying value of assets and liabilities measured at fair value on a recurring basis, and categorized within Level 3, during the six months ended December 31, 2020: Carrying value Assets Balance as of June 30, 2020 $ - Foreign currency adjustment (1) - Balance as of December 31, 2020 $ - (1) The foreign currency adjustment represents the effects of the fluctuations between the ZAR, and the U.S. dollar on the carrying value. Summarized below is the movement in the carrying value of assets and liabilities measured at fair value on a recurring basis, and categorized within Level 3, during the six months ended December 31, 2019: Carrying value Assets Balance as at June 30, 2019 $ - Foreign currency adjustment (1) - Balance as of December 31, 2019 $ - (1) The foreign currency adjustment represents the effects of the fluctuations between the ZAR, and the U.S. dollar on the carrying value. Assets measured at fair value on a nonrecurring basis The Company measures equity investments without readily determinable fair values at fair value on a nonrecurring basis. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. An impairment charge is recorded when the cost of the asset exceeds its fair value and the excess is determined to be other-than-temporary. Refer to Note 6 for impairment charges recorded during the reporting periods presented herein. The Company has no liabilities that are measured at fair value on a nonrecurring basis. |
Equity-Accounted Investments An
Equity-Accounted Investments And Other Long-Term Assets | 6 Months Ended |
Dec. 31, 2020 | |
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 10 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2020, 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 December 31, 2020, and June 30, 2020, was as follows: December 31, June 30, 2020 2020 Bank Frick & Co AG (“Bank Frick”) 35 % 35 % Finbond Group Limited (“Finbond”) 31 % 31 % Carbon Tech Limited (“Carbon”) 25 % 25 % Revix (“Revix”) 25 % 25 % SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”) 50 % 50 % V2 Limited (“V2”) 50 % 50 % Walletdoc Proprietary Limited (“Walletdoc”) - 20 % 6. Equity-accounted investments and other long-term assets (continued) Equity-accounted investments (continued) Finbond As of December 31, 2020, the Company owned 268,820,933 shares in Finbond representing approximately 31% of its issued and outstanding ordinary shares. Finbond is listed on the Johannesburg Stock Exchange (“JSE”) and its closing price on December 31, 2020, the last trading day of the month, was ZAR 0.99 per share. The market value, using the December 31, 2020, closing price, of the Company’s holding in Finbond on December 31, 2020, was ZAR 266.1 million ($ 18.2 million translated at exchange rates applicable as of December 31, 2020). Finbond published its half-year results to August 2020 in October 2020, which included the financial impact of the COVID-19 pandemic on its reported results during the reporting period. Finbond incurred losses during the six months to August 2020, and experienced a slow-down in its lending activities. Finbond reported that its lending activities have increased again since August 2020, albeit at a slower pace compared with the prior calendar period. Finbond’s share price declined substantially during the period from its fiscal year end (February 2020) to September 30, 2020, and the weakness in its traded share price continued post September 30, 2020. The Company considered the combination of the slow-down in business activity and the lower share price as impairment indicators. The Company performed an impairment assessment of its holding in Finbond as of September 30, 2020. The Company recorded an impairment loss of $ 16.8 million during the quarter ended September 30, 2020, related to the other-than-temporary decrease in Finbond’s value, which represented the difference between the determined fair value of the Company’s interest in Finbond and the Company’s carrying value (before the impairment). There is limited trading in Finbond shares on the JSE because it has three shareholders that own approximately 90% of its issued and outstanding shares between them. The Company calculated a fair value per share for Finbond by applying a liquidity discount of 15% to the September 30, 2020, Finbond closing price of $1.04. The Company performed a further impairment assessment of its holding in Finbond as of December 31, 2020, following a modest decline in its market price during the quarter ended December 31, 2020. The Company recorded an impairment loss of $ 0.8 million during the quarter ended December 31, 2020, related to the other-than-temporary decrease in Finbond’s value, which represented the difference between the determined fair value of the Company’s interest in Finbond and the Company’s carrying value (before the impairment). The Company calculated a fair value per share for Finbond by applying a liquidity discount of 15% to the December 31, 2020, Finbond closing price. The total impairment charge for the six months ended December 31, 2020, was $ 17.6 million. V2 Limited In June 2020, V2 Limited drew down $ 0.5 million of the $ 5.0 million working capital facility granted by the Company to V2. In September 2020, the Company agreed to grant V2 an option to acquire the Company’s entire interest in V2 for an option price of $ 5.0 million plus the face value of the outstanding working capital facility. The option expired on December 31, 2020. The Company and V2 also agreed to reduce the $ 5.0 million working capital facility to $ 1.5 million. In October 2020, V2 drew down the remaining available $ 1.0 million of the working capital facility. The Company does not expect to recover its carrying value in V2 and has impaired its remaining interest in V2, recording an impairment loss of $ 0.5 million during the three and six months ended December 31, 2020. The Company also created an allowance for doubtful loans receivable of $ 0.5 million during the three and six months ended December 31, 2020, related to a portion of the working capital facility outstanding as of December 31, 2020. Other In November 2020, the Company’s subsidiary, Net1 SA, signed an agreement with Walletdoc under which Walletdoc agreed to repay the loan due to Net1 SA in full and Net1 SA agreed to dispose of its entire interest in Walletdoc to Walletdoc. 6. Equity-accounted investments and other long-term assets (continued) Equity-accounted investments (continued) Summarized below is the movement in equity-accounted investments and loans provided to equity-accounted investments during the six months ended December 31, 2020: Bank Frick Finbond Other (1) Total Investment in equity Balance as of June 30, 2020 $ 29,739 $ 30,876 $ 4,601 $ 65,216 Stock-based compensation - ( 40) - ( 40) Comprehensive (loss) income: 979 ( 18,579) ( 865) ( 18,465) Other comprehensive income - 1,688 - 1,688 Equity accounted (loss) earnings 979 ( 20,267) ( 865) ( 20,153) Share of net (loss) income 979 ( 2,617) ( 317) ( 1,955) Impairment - ( 17,650) ( 548) ( 18,198) Dividends received - - ( 125) ( 125) Disposal of equity-accounted investment - - ( 13) ( 13) Foreign currency adjustment (2) 2,301 3,178 74 5,553 Balance as of December 31, 2020 $ 33,019 $ 15,435 $ 3,672 $ 52,126 Investment in loans: Balance as of June 30, 2020 $ - $ - $ 620 $ 620 Loans granted - - 1,238 1,238 Allowance for doubtful loans - - ( 738) ( 738) Loans repaid - - ( 134) ( 134) Foreign currency adjustment (2) - - 14 14 Balance as of December 31, 2020 $ - $ - $ 1,000 $ 1,000 Equity Loans Total Carrying amount as of : June 30, 2020 $ 65,216 $ 620 $ 65,836 December 31, 2020 $ 52,126 $ 1,000 $ 53,126 (1) Includes Carbon, SmartSwitch Namibia, V2 and Walletdoc. (2) The foreign currency adjustment represents the effects of the fluctuations of the Swiss franc, ZAR, Nigerian naira 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 December 31, 2020, and June 30, 2020: December 31, June 30, 2020 2020 Total equity investments $ 42,121 $ 26,993 Investment in 15% of Cell C, at fair value (Note 5) - - Investment in 12% of MobiKwik 42,121 26,993 Investment in 87.5% of CPS (1) - - Total held to maturity investments - - Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes - - Long-term portion of amount due from DNI related to sale of remaining interest in DNI - 2,857 Policy holder assets under investment contracts (Note 8) 593 490 Reinsurance assets under insurance contracts (Note 8) 1,193 1,006 Total other long-term assets $ 43,907 $ 31,346 (1) 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) MobiKwik In early November 2020, MobiKwik entered into an agreement to raise additional capital through the issuance of additional shares to a new shareholder at a valuation of $ 135.54 per share. The Company considered this transaction to be an observable price change in an orderly transaction for similar or identical equity securities issued by MobiKwik. The Company used this valuation as the basis for its adjustment to increase the carrying value in its investment in MobiKwik by $ 15.1 million from $ 27.0 million to $ 42.1 million as of December 31, 2020. The change in the fair value of MobiKwik of $ 15.1 million is included in the caption “Change in fair value of equity securities” in the unaudited condensed consolidated statement of operations for the three and six months ended December 31, 2020. Summarized below are the components of the Company’s equity securities without readily determinable fair value and held to maturity investments as of December 31, 2020: Cost basis Unrealized holding Unrealized holding Carrying gains losses value Equity securities: Investment in MobiKwik $ 26,993 $ 15,128 $ - $ 42,121 Investment in CPS - - - - Held to maturity: Investment in Cedar Cellular notes - - - - Total $ 26,993 $ 15,128 $ - $ 42,121 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, 2020: Cost basis Unrealized holding Unrealized holding Carrying gains losses value Equity securities: Investment in MobiKwik $ 26,993 $ - $ - $ 26,993 Investment in CPS - - - - Held to maturity: Investment in Cedar Cellular notes - - - - Total $ 26,993 $ - $ - $ 26,993 Contractual maturities of held to maturity investments Summarized below is the contractual maturity of the Company’s held to maturity investment as of December 31, 2020: Cost basis Estimated fair value (1) Due in one year or less $ - $ - Due in one year through five years (2) - - Due in five years through ten years - - Due after ten years - - Total $ - $ - (1) The estimated fair value of the Cedar Cellular note has been calculated utilizing the Company’s portion of the security provided to the Company by Cedar Cellular, namely, Cedar Cellular’s investment in Cell C. (2) The cost basis is zero ($0.0 million). |
Goodwill And Intangible Assets,
Goodwill And Intangible Assets, Net | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets, Net [Abstract] | |
Goodwill And Intangible Assets, Net | 7. Goodwill and intangible assets, net Goodwill Summarized below is the movement in the carrying value of goodwill for the six months ended December 31, 2020: Gross value Accumulated impairment Carrying value Balance as of June 30, 2020 $ 63,194 $ ( 39,025) $ 24,169 Foreign currency adjustment (1) 5,490 ( 1,204) 4,286 Balance as of December 31, 2020 $ 68,684 $ ( 40,229) $ 28,455 (1) The foreign currency adjustment represents the effects of the fluctuations between the ZAR and the U.S. dollar on the carrying value. Refer to Note 18 for additional information regarding changes to the Company’s reportable segments during the six months ended December 31, 2020. Goodwill has been allocated to the Company’s reportable segments as follows: Processing Financial services Technology Carrying value Balance as of June 30, 2020 $ 9,989 $ - $ 14,180 $ 24,169 Foreign currency adjustment (1) 1,701 - 2,585 4,286 Balance as of December 31, 2020 $ 11,690 $ - $ 16,765 $ 28,455 (1) The foreign currency adjustment represents the effects of the fluctuations between the ZAR and the U.S. dollar on the carrying value. Intangible assets Carrying value and amortization of intangible assets Summarized below is the carrying value and accumulated amortization of the intangible assets as of December 31, 2020, and June 30, 2020: As of December 31, 2020 As of June 30, 2020 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Finite-lived intangible assets: Customer relationships $ 20,620 $ ( 20,467) $ 153 $ 19,064 $ ( 18,806) $ 258 Software and unpatented technology 4,190 ( 4,190) - 3,931 ( 3,931) - FTS patent 2,614 ( 2,614) - 2,211 ( 2,211) - Trademarks 3,034 ( 2,651) 383 2,731 ( 2,377) 354 Total finite-lived intangible assets $ 30,458 $ ( 29,922) $ 536 $ 27,937 $ ( 27,325) $ 612 Infinite-lived intangible assets: Financial institution licenses - - Total infinite-lived intangible assets - - Total intangible assets $ 536 $ 612 7. Goodwill and intangible assets, net (continued) Intangible assets (continued) Aggregate amortization expense on the finite-lived intangible assets for the three months ended December 31, 2020 and 2019, was approximately $ 0.1 million and $ 0.1 million, respectively. Aggregate amortization expense on the finite-lived intangible assets for the six months ended December 31, 2020 and 2019, was approximately $ 0.2 million and $ 0.2 million, respectively. Future estimated annual amortization expense for the next five fiscal years and thereafter, assuming exchange rates that prevailed on December 31, 2020, is presented in the table below. Actual amortization expense in future periods could differ from this estimate as a result of acquisitions, changes in useful lives, exchange rate fluctuations and other relevant factors. Fiscal 2021 $ 376 Fiscal 2022 70 Fiscal 2023 70 Fiscal 2024 70 Fiscal 2025 69 Thereafter 70 Total future estimated annual amortization expense $ 725 |
Assets And Policyholder Liabili
Assets And Policyholder Liabilities Under Insurance And Investment Contracts | 6 Months Ended |
Dec. 31, 2020 | |
Assets And Policyholder Liabilities Under Insurance And Investment Contracts [Abstract] | |
Assets And Policyholder Liabilities Under Insurance And Investment Contracts | 8. Assets and policyholder liabilities under insurance and investment contracts Reinsurance assets and policyholder liabilities under insurance contracts Summarized below is the movement in reinsurance assets and policyholder liabilities under insurance contracts during the six months ended December 31, 2020: Reinsurance Assets (1) Insurance contracts (2) Balance as of June 30, 2020 $ 1,006 $ ( 1,370) Increase in policy holder benefits under insurance contracts 220 3,721 Claims and policyholders’ benefits under insurance contracts ( 216) ( 3,729) Foreign currency adjustment (3) 183 ( 249) Balance as of December 31, 2020 $ 1,193 $ ( 1,627) (1) Included in other long-term assets (refer to Note 6); (2) Included in other long-term liabilities; (3) Represents the effects of the fluctuations of the ZAR against the U.S. dollar. The Company has agreements with reinsurance companies in order to limit its losses from various insurance contracts, however, if the reinsurer is unable to meet its obligations, the Company retains the liability. The value of insurance contract liabilities is based on the best estimate assumptions of future experience plus prescribed margins, as required in the markets in which these products are offered, namely South Africa. The process of deriving the best estimates assumptions plus prescribed margins includes assumptions related to claim reporting delays (based on average industry experience). Assets and policyholder liabilities under investment contracts Summarized below is the movement in assets and policyholder liabilities under investment contracts during the six months ended December 31, 2020: Assets (1) Investment contracts (2) Balance as of June 30, 2020 $ 490 $ ( 490) Increase in policy holder benefits under investment contracts 13 ( 13) Foreign currency adjustment (3) 90 ( 90) Balance as of December 31, 2020 $ 593 $ ( 593) (1) Included in other long-term assets (refer to Note 6); (2) Included in other long-term liabilities; (3) Represents the effects of the fluctuations of the ZAR against the U.S. dollar. The Company does not offer any investment products with guarantees related to capital or returns. |
Borrowings
Borrowings | 6 Months Ended |
Dec. 31, 2020 | |
Borrowings [Abstract] | |
Borrowings | 9. Borrowings Refer to Note 13 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2020, for additional information regarding its borrowings. South Africa Nedbank facility, comprising short-term facilities On November 2, 2020, the Company amended its short-term South African credit facility with Nedbank Limited to increase the indirect and derivative facilities component of the facility from ZAR 150.0 million to ZAR 159.0 million. As of December 31, 2020, the aggregate amount of the Company’s short-term South African credit facility with Nedbank Limited was ZAR 459.0 million ($ 31.3 million). The credit facility comprises an overdraft facility of (i) up to ZAR 300.0 million ($ 20.5 million), which is further split into (a) a ZAR 250.0 million ($ 17.1 million) overdraft facility which may only be used to fund mobile ATMs and (b) a ZAR 50.0 million ($ 3.4 million) general banking facility and (ii) indirect and derivative facilities of up to ZAR 159.0 million ($ 10.8 million), which include guarantees, letters of credit and forward exchange contracts. Movement in short-term credit facilities Summarized below are the Company’s short-term facilities as of December 31, 2020, and the movement in the Company’s short-term facilities from as of June 30, 2020 to as of December 31, 2020, as well as the respective interest rates applied to the borrowings as of December 31, 2020: South Africa Total RMB Nedbank Short-term facilities available as of December 31, 2020 $ 81,852 $ 31,310 $ 113,162 Overdraft - 3,410 3,410 Overdraft restricted as to use for ATM funding only 81,852 17,052 98,904 Indirect and derivative facilities - 10,848 10,848 Interest rate (%), based on South African prime rate 7.00 Interest rate (%), based on South African prime rate less 1.15% 5.85 Movement in utilized overdraft facilities: Balance as of June 30, 2020 14,756 58 14,814 Utilized 189,928 16,551 206,479 Repaid ( 155,670) ( 9,438) ( 165,108) Foreign currency adjustment (1) 4,720 ( 102) 4,618 Balance as of December 31, 2020 53,734 7,069 60,803 Restricted as to use for ATM funding only 53,734 7,069 60,803 Movement in utilized indirect and derivative facilities: Balance as of June 30, 2020 (2) - 5,398 5,398 Utilized - 3,826 3,826 Foreign currency adjustment (1) - 1,455 1,455 Balance as of December 31, 2020 (2) $ - $ 10,679 $ 10,679 (1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. (2) As of December 31, 2020 and June 30, 2020, the Company had utilized approximately ZAR 156.6 million ($ 10.7 million) and ZAR 93.6 million ($ 5.4 million), respectively, of its indirect and derivative facilities of ZAR 159.0 million (June 30, 2020: ZAR 150 million) to enable the bank to issue guarantees, letters of credit and forward exchange contracts, in order for the Company to honor its obligations to third parties requiring such guarantees (refer to Note 20). |
Other Payables
Other Payables | 6 Months Ended |
Dec. 31, 2020 | |
Other Payables [Abstract] | |
Other Payables | 10. Other payables Summarized below is the breakdown of other payables as of December 31, 2020, and June 30, 2020: December 31, June 30, 2020 2020 Accruals $ 7,073 $ 6,045 Provisions 3,048 4,926 Other 13,140 11,329 Value-added tax payable 215 129 Payroll-related payables 1,039 887 Participating merchants' settlement obligation 551 463 $ 25,066 $ 23,779 Other includes transactions-switching funds payable, deferred income, client deposits and other payables. |
Capital Structure
Capital Structure | 6 Months Ended |
Dec. 31, 2020 | |
Capital Structure [Abstract] | |
Capital Structure | 11. Capital structure The following table presents a reconciliation between the number of shares, net of treasury, presented in the unaudited condensed consolidated statement of changes in equity during the six months ended December 31, 2020 and 2019, respectively, and the number of shares, net of treasury, excluding non-vested equity shares that have not vested during the six months ended December 31, 2020 and 2019, respectively: December 31, December 31, 2020 2019 Number of shares, net of treasury: Statement of changes in equity 56,614,559 56,568,425 Non-vested equity shares that have not vested as of end of period 294,000 583,908 Number of shares, net of treasury, excluding non-vested equity shares that have not vested 56,320,559 55,984,517 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 12. Accumulated other comprehensive loss The table below presents the change in accumulated other comprehensive (loss) income per component during the three months ended December 31, 2020: Three months ended December 31, 2020 Accumulated foreign currency translation reserve Total Balance as of October 1, 2020 $ ( 161,245) $ ( 161,245) Movement in foreign currency translation reserve 20,003 20,003 Balance as of December 31, 2020 $ ( 141,242) $ ( 141,242) 12. Accumulated other comprehensive loss (continued) The table below presents the change in accumulated other comprehensive (loss) income per component during the three months ended December 31, 2019: Three months ended December 31, 2019 Accumulated foreign currency translation reserve Total Balance as of October 1, 2019 $ ( 211,179) $ ( 211,179) Release of foreign currency translation reserve related to FIHRST disposal (Note 2) 1,578 1,578 Movement in foreign currency translation reserve related to equity-accounted investment ( 491) ( 491) Movement in foreign currency translation reserve 19,114 19,114 Balance as of December 31, 2019 $ ( 190,978) $ ( 190,978) The table below presents the change in accumulated other comprehensive (loss) income per component during the six months ended December 31, 2020: Six months ended December 31, 2020 Accumulated foreign currency translation reserve Total Balance as of July 1, 2020 (as restated, Note 1) $ ( 169,075) $ ( 169,075) Movement in foreign currency translation reserve related to equity-accounted investment 1,688 1,688 Movement in foreign currency translation reserve 26,145 26,145 Balance as of December 31, 2020 $ ( 141,242) $ ( 141,242) The table below presents the change in accumulated other comprehensive (loss) income per component during the six months ended December 31, 2019: Six months ended December 31, 2019 Accumulated foreign currency translation reserve Total Balance as of July 1, 2019 $ ( 195,812) $ ( 195,812) Release of foreign currency translation reserve related to FIHRST disposal (Note 2) 1,578 1,578 Movement in foreign currency translation reserve related to equity-accounted investment 2,227 2,227 Movement in foreign currency translation reserve 1,029 1,029 Balance as of December 31, 2019 $ ( 190,978) $ ( 190,978) There were reclassifications from accumulated other comprehensive loss to net (loss) income during the three and six months ended December 31, 2020. During the three and six months ended December 31, 2019, the Company reclassified $ million from accumulated other comprehensive loss (accumulated foreign currency translation reserve) to net loss related to the FIHRST disposal (refer to Note 2). |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-based compensation The Company’s Amended and Restated 2015 Stock Incentive Plan and the vesting terms of certain stock-based awards granted are described in Note 18 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2020. Stock option and restricted stock activity Options The following table summarizes stock option activity for the six months ended December 31, 2020 and 2019: Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($'000) Weighted average grant date fair value ($) Outstanding - June 30, 2020 1,331,651 5.83 7.56 - 2.01 Granted - August 2020 150,000 3.50 3.00 166 1.11 Granted - November 2020 560,000 3.01 10.00 691 1.23 Exercised ( 5,834) 3.07 - 21 - Forfeited ( 456,033) 7.03 - - 2.26 Outstanding - December 31, 2020 1,579,784 4.28 8.04 2,104 1.59 Outstanding - June 30, 2019 864,579 7.81 7.05 - 2.62 Granted – October 2019 561,000 3.07 10.00 676 1.20 Outstanding - December 31, 2019 1,425,579 5.94 7.81 365 2.07 On August 5, 2020, the Company granted one of its non-employee directors, Mr. Ali Mazanderani, in his capacity as a consultant to the Company, 150,000 stock options with an exercise price of $3.50. These stock options are subject to the non-employee director’s continuous service through the applicable vesting date, and half of the options vest on each of the first and second anniversaries of the grant date. The Company awarded 560,000 and 561,000 stock options to employees during the three and six months ended December 31, 2020 and 2019, respectively. During the six months ended December 31, 2020, the Company’s former chief executive officer forfeited 250,034 stock options with strike prices ranging from $ 6.20 to $ 11.23 per share following his separation from the Company. Employees forfeited 205,999 stock options during the three and six months ended December 31, 2020. No stock options were forfeited during the three and six months ended December 31, 2019. The fair value of each option is estimated on the date of grant using the Cox Ross Rubinstein binomial model that uses the assumptions noted in the following table. The estimated expected volatility is calculated based on the Company’s 750-day volatility. The estimated expected life of the option was determined based on historical behavior of employees who were granted options with similar terms. The table below presents the range of assumptions used to value stock options granted during the six months ended December 31, 2020 and 2019: Six months ended December 31, 2020 2019 Expected volatility 62 % 57 % Expected dividends 0 % 0 % Expected life (in years) 3 3 Risk-free rate 0.19 % 1.57 % 13. Stock-based compensation (continued) Stock option and restricted stock activity (continued) Options (continued) The following table presents stock options vested and expected to vest as of December 31, 2020: Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($’000) Vested and expecting to vest - December 31, 2020 1,579,784 4.28 8.04 2,104 These options have an exercise price range of $ 3.01 to $ 11.23. The following table presents stock options that are exercisable as of December 31, 2020: Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($’000) Exercisable - December 31, 2020 472,299 6.37 7.17 274 During the three months ended December 31, 2020, , 181333 stock options became exercisable. No stock options became exercisable during the three months ended December 31, 2019. During the six months ended December 31, 2020 and 2019, respectively, 337,666 and 170,335 stock options became exercisable. The Company issues new shares to satisfy stock option exercises. Restricted stock The following table summarizes restricted stock activity for the six months ended December 31, 2020 and 2019: Number of shares of restricted stock Weighted average grant date fair value ($’000) Non-vested – June 30, 2020 1,115,500 5,354 Total vested ( 311,300) ( 1,037) Vested – August 2020 ( 244,500) ( 812) Vested – September 2020 - accelerated vesting ( 66,800) ( 225) Forfeitures ( 510,200) ( 1,766) Non-vested – December 31, 2020 294,000 994 Non-vested – June 30, 2019 583,908 3,410 Non-vested – December 31, 2019 583,908 3,410 During the six months ended December 31, 2020, 244,500 shares of restricted stock with time-based vesting conditions vested. In connection with the Company’s former chief executive officer’s separation, the Company agreed to accelerate the vesting of 66,800 shares of restricted stock which were granted in February 2020, and which were subject to time-based vesting. These shares of restricted stock vested on September 30, 2020. The , 510200 shares of restricted stock that were forfeited during the six months ended December 31, 2020, includes 375,200 shares of restricted stock forfeited by the Company’s former chief executive officer upon his separation from the Company and 30,000 shares of restricted stock forfeited by an executive officer as the market condition (related to share price performance) was not achieved. 13. Stock-based compensation (continued) Stock-based compensation charge and unrecognized compensation cost The Company recorded a stock-based compensation charge, net during the three months ended December 31, 2020 and 2019, of $ 0.2 million and $0.4 million, respectively, which comprised: Total charge Allocated to cost of goods sold, IT processing, servicing and support Allocated to selling, general and administration Three months ended December 31, 2020 Stock-based compensation charge $ 246 $ - $ 246 Reversal of stock compensation charge related to stock options and restricted stock forfeited ( 14) - ( 14) Total - three months ended December 31, 2020 $ 232 $ - $ 232 Three months ended December 31, 2019 Stock-based compensation charge $ 436 $ - $ 436 Total - three months ended December 31, 2019 $ 436 $ - $ 436 The Company recorded a stock-based compensation charge, net during the six months ended December 31, 2020 and 2019, of $ 0.6 million and $ 0.8 million respectively, which comprised: Total charge Allocated to cost of goods sold, IT processing, servicing and support Allocated to selling, general and administration Six months ended December 31, 2020 Stock-based compensation charge $ 928 $ - $ 928 Reversal of stock compensation charge related to stock options and restricted stock forfeited $ ( 297) $ - $ ( 297) Total - six months ended December 31, 2020 $ 631 $ - $ 631 Six months ended December 31, 2019 Stock-based compensation charge $ 823 $ - $ 823 Total - six months ended December 31, 2019 $ 823 $ - $ 823 The stock-based compensation charges have been allocated to selling, general and administration based on the allocation of the cash compensation paid to the relevant employees. As of December 31, 2020, the total unrecognized compensation cost related to stock options was approximately $ 1.3 million, which the Company expects to recognize over approximately three years. As of December 31, 2020, the total unrecognized compensation cost related to restricted stock awards was approximately $ 0.7 million, which the Company expects to recognize over approximately two years. As of December 31, 2020, and June 30, 2020, respectively, the Company recorded a deferred tax asset of approximately $ 0.04 million and $ 0.4 million, related to the stock-based compensation charge recognized related to employees of Net1. As of December 31, 2020, and June 30, 2020, respectively, the Company recorded a valuation allowance of approximately $ 0.04 million and $ 0.4 million, related to the deferred tax asset because it does not believe that the stock-based compensation deduction would be utilized as it does not anticipate generating sufficient taxable income in the United States. The Company deducts the difference between the market value on the date of exercise by the option recipient and the exercise price from income subject to taxation in the United States. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 6 Months Ended |
Dec. 31, 2020 | |
(Loss) Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | 14. (Loss) Earnings per share The Company has issued redeemable common stock which is redeemable at an amount other than fair value. Redemption of a class of common stock at other than fair value increases or decreases the carrying amount of the redeemable common stock and is reflected in basic earnings per share using the two-class method. There were no redemptions of common stock, or adjustments to the carrying value of the redeemable common stock during the three months ended December 31, 2020 and 2019. Accordingly, the two-class method presented below does not include the impact of any redemption. The Company’s redeemable common stock is described in Note 15 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2020. Basic (loss) earnings per share includes shares of restricted stock that meet the definition of a participating security because these shares are eligible to receive non-forfeitable dividend equivalents at the same rate as common stock. Basic (loss) earnings per share has been calculated using the two-class method and basic (loss) earnings per share for the three months ended December 31, 2020 and 2019 , reflects only undistributed earnings. The computation below of basic (loss) earnings per share excludes the net loss attributable to shares of unvested restricted stock (participating non-vested restricted stock) from the numerator and excludes the dilutive impact of these unvested shares of restricted stock from the denominator. Diluted (loss) earnings per share has been calculated to give effect to the number of shares of additional common stock that would have been outstanding if the potential dilutive instruments had been issued in each period. Stock options are included in the calculation of diluted (loss) earnings per share utilizing the treasury stock method and are not considered to be participating securities, as the stock options do not contain non-forfeitable dividend rights. The calculation of diluted (loss) earnings per share includes the dilutive effect of a portion of the restricted stock granted to employees in August 2017, March 2018, May 2018, September 2018 and February 2020, as these shares of restricted stock are considered contingently returnable shares for the purposes of the diluted (loss) earnings per share calculation and the vesting conditions in respect of a portion of the restricted stock had been satisfied. The vesting conditions for all awards made are discussed in Note 18 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2020. 14. (Loss) Earnings per share (continued) The following table presents net loss attributable to Net1 and the share data used in the basic and diluted (loss) earnings per share computations using the two-class method: Three months ended Six months ended December 31, December 31, 2020 2019 2020 2019 (in thousands except (in thousands except percent and percent and per share data) per share data) Numerator: Net loss attributable to Net1 $ ( 4,534) $ ( 205) $ ( 33,492) $ ( 4,597) Undistributed (loss) earnings ( 4,534) ( 205) ( 33,492) ( 4,597) Continuing ( 4,534) ( 2,925) ( 33,492) ( 10,252) Discontinued $ - $ 2,720 $ - $ 5,655 Percent allocated to common shareholders (Calculation 1) 99% 99% 99% 99% Numerator for (loss) earnings per share: basic and diluted ( 4,508) ( 202) ( 33,098) ( 4,549) Continuing ( 4,508) ( 2,894) ( 33,098) ( 10,146) Discontinued - 2,692 - 5,597 Denominator Denominator for basic (loss) earnings per share: weighted-average common shares outstanding 56,317 55,985 56,211 55,985 Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assuming conversion 56,317 55,985 56,211 55,985 (Loss) Earnings per share: Basic $ ( 0.08) $ - $ ( 0.59) $ ( 0.08) Continuing $ ( 0.08) $ ( 0.05) $ ( 0.59) $ ( 0.18) Discontinued $ - $ 0.05 $ - $ 0.10 Diluted $ ( 0.08) $ - $ ( 0.59) $ ( 0.08) Continuing $ ( 0.08) $ ( 0.05) $ ( 0.59) $ ( 0.18) Discontinued $ - $ 0.05 $ - $ 0.10 (Calculation 1) Basic weighted-average common shares outstanding (A) 56,317 55,985 56,211 55,985 Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) 56,641 56,568 56,880 56,568 Percent allocated to common shareholders (A) / (B) 99% 99% 99% 99% 14. (Loss) Earnings per share (continued) Options to purchase 1,579,784 shares of the Company’s common stock at prices ranging from $ 3.01 to $ 11.23 per share were outstanding during the three and six months ended December 31, 2020, respectively, but were not included in the computation of diluted (loss) earnings per share because the options’ exercise price was greater than the average market price of the Company’s common stock. Options to purchase 1,425,579 shares of the Company’s common stock at prices ranging from $ 3.07 to $ 11.23 per share were outstanding during the three and six months ended December 31, 2019, respectively, but were not included in the computation of diluted (loss) earnings per share because the options’ exercise price was greater than the average market price of the Company’s common stock. The options, which expire at various dates through November 4, 2030, were still outstanding as of December 31, 2020. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 15. Supplemental cash flow information The following table presents supplemental cash flow disclosures for the three and six months ended December 31, 2020 and 2019: Three months ended Six months ended December 31, December 31, 2020 2019 2020 2019 Cash received from interest $ 714 $ 1,042 $ 1,209 $ 1,779 Cash paid for interest $ 636 $ 2,293 $ 1,544 $ 3,107 Cash paid for income taxes $ 765 $ 2,004 $ 16,171 $ 3,887 Disaggregation of cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash included on the Company’s unaudited condensed consolidated statement of cash flows includes restricted cash related to cash withdrawn from the Company’s various debt facilities to fund ATMs. This cash may only be used to fund ATMs and is considered restricted as to use and therefore is classified as restricted cash. Refer to Note 9 for additional information regarding the Company’s facilities. The following table presents the disaggregation of cash, cash equivalents and restricted cash as of December 31, 2020 and 2019, and June 30, 2020: December 31, 2020 December 31, 2019 June 30, 2020 Continuing $ 206,251 $ 19,390 $ 217,671 Discontinued - 31,329 - Cash and cash equivalents 206,251 50,719 217,671 Restricted cash 60,803 84,360 14,814 Cash, cash equivalents and restricted cash $ 267,054 $ 135,079 $ 232,485 Leases The following table presents supplemental cash flow disclosure related to leases for the three and six months ended December 31, 2020 and 2019: Three months ended December 31, Six months ended December 31, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,007 $ 1,108 $ 1,879 $ 2,028 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 1,611 $ 2,260 $ 1,701 $ 2,490 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 16. Revenue recognition Disaggregation of revenue The following table presents our revenue disaggregated by major revenue streams, including a reconciliation to operating segments for the three months ended December 31, 2020: Processing Financial services Technology Total Processing fees $ 14,755 $ 575 $ - $ 15,330 South Africa 13,877 575 - 14,452 Rest of world 878 - - 878 Technology products 665 70 4,346 5,081 Telecom products and services 3,148 - - 3,148 Lending revenue - 5,288 - 5,288 Insurance revenue - 1,613 - 1,613 Account holder fees - 1,273 - 1,273 Other 244 76 252 572 Total revenue, derived from the following geographic locations 18,812 8,895 4,598 32,305 South Africa 17,934 8,895 4,598 31,427 Rest of world $ 878 $ - $ - $ 878 As discussed in Note 18, the Company’s chief operating decision maker changed the Company’s operating and internal reporting structures during the three months ended September 30, 2020. Previously reported information has been restated. The following table presents our revenue disaggregated by major revenue streams, including a reconciliation to operating segments for the three months ended December 31, 2019: Processing Financial services Technology Total (as restated) (as restated) (1) Processing fees $ 14,938 $ 1,298 $ - $ 16,236 South Africa (1) 14,088 1,298 - 15,386 Rest of world 850 - - 850 Technology products 303 - 4,739 5,042 Telecom products and services 6,639 - - 6,639 Lending revenue - 5,384 - 5,384 Insurance revenue - 1,372 - 1,372 Account holder fees - 3,103 - 3,103 Other 967 160 15 1,142 Total revenue, derived from the following geographic locations 22,847 11,317 4,754 38,918 South Africa 21,997 11,317 4,754 38,068 Rest of world $ 850 $ - $ - $ 850 (1) Processing fees South Africa and Total column has been restated for the error described in Note 1. 16. Revenue recognition (continued) Disaggregation of revenue (continued) The following table presents our revenue disaggregated by major revenue streams, including a reconciliation to operating segments for the six months ended December 31, 2020: Processing Financial services Technology Total Processing fees $ 31,085 $ 1,174 $ - $ 32,259 South Africa 28,651 1,174 - 29,825 Rest of world 2,434 - - 2,434 Technology products 1,125 70 10,420 11,615 Telecom products and services 7,570 - - 7,570 Lending revenue - 9,488 - 9,488 Insurance revenue - 3,070 - 3,070 Account holder fees - 2,456 - 2,456 Other 550 157 276 983 Total revenue, derived from the following geographic locations 40,330 16,415 10,696 67,441 South Africa 37,896 16,415 10,696 65,007 Rest of world $ 2,434 $ - $ - $ 2,434 The following table presents our revenue disaggregated by major revenue streams, including a reconciliation to operating segments for the six months ended December 31, 2019: Processing Financial services Technology Total (as restated) (as restated) (1) Processing fees $ 29,132 $ 2,547 $ - $ 31,679 South Africa (1) 27,083 2,547 - 29,630 Rest of world 2,049 - - 2,049 Technology products 543 - 11,633 12,176 Telecom products and services 15,933 - - 15,933 Lending revenue - 10,538 - 10,538 Insurance revenue - 2,758 - 2,758 Account holder fees - 8,363 - 8,363 Other 3,332 326 29 3,687 Total revenue, derived from the following geographic locations 48,940 24,532 11,662 85,134 South Africa 46,891 24,532 11,662 83,085 Rest of world $ 2,049 $ - $ - $ 2,049 (1) Processing fees South Africa and Total column has been restated for the error described in Note 1. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 17. Leases The Company has entered into leasing arrangements classified as operating leases under accounting guidance. These leasing arrangements relate primarily to the lease of its corporate head office, administration offices and branch locations through which the Company operates its financial services business in South Africa. The Company’s operating leases have remaining lease terms of between one five years. The Company also operates parts of its financial services business from locations which it leases for a period of less than one year. The Company’s operating lease expense during each of the three months ended December 31, 2020 and 2019 was $ 0.9 million, respectively. The Company does not have any significant leases that have not commenced as of December 31, 2020 . The Company has also entered into short-term leasing arrangements, primarily for the lease of branch locations and other locations to operate its financial services business in South Africa. The Company’s short-term lease expense during the three months ended December 31, 2020 and 2019 , was $ 0.9 million and $ 1.3 million, respectively. The Company’s short-term lease expense during the six months ended December 31, 2020 and 2019 , was $ 2.0 million and $ 2.7 million, respectively. 17. Leases (continued) The following table presents supplemental balance sheet disclosure related to the Company’s right-of-use assets and its operating lease liabilities as of December 31, 2020 and June 30, 2020 : December 31, June 30, 2020 2020 Operating leases: Operating lease right-of-use asset $ 5,112 $ 5,395 Weighted average remaining lease term (years) 2.83 3.94 Weighted average discount rate (percent) 10 9 The maturities of the Company’s operating lease liabilities as of December 31, 2020, are presented below: December 31, 2020 Maturities of operating lease liabilities 2021 (for December 31, 2020 excluding six months to December 31, 2020) $ 1,719 2022 2,401 2023 1,071 2024 573 2025 195 Thereafter - Total undiscounted operating lease liabilities 5,959 Less imputed interest 659 Total operating lease liabilities, included in 5,300 Operating lease liability - current 2,585 Operating lease liability - long-term $ 2,715 |
Operating Segments
Operating Segments | 6 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
Operating Segments | 18. Operating segments Change to internal reporting structure and restatement of previously reported information During September 2020, the Company’s chief operating decision maker changed the Company’s operating and internal reporting structures following the Company’s decisions to focus primarily on the South African market and to exit its operating activities performed through IPG. The chief operating decision maker has decided to analyze the Company’s operating performance primarily based on reported information for statutory entities, statutory groups, clustered statutory entities or clustered statutory groups, with certain reallocations, based on the activity of the reporting unit. Previously reported information has been restated. Reallocation of certain activities among operating segments During the first quarter of fiscal 2021, the Company reorganized its operating segments by combining what were previously the South African transaction processing segment and the International transaction processing segment into what is now the Processing segment and bifurcating what was previously the Financial inclusion and applied technologies segment into what are now the Financial services segment and the Technology segment. Segment results for the three and six months ended December 31, 2020 reflect these changes to the operating segments. Operating segments The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, and the countries in which the entity holds material assets or reports material revenues. The Company currently has three reportable segments: Processing, Financial services and Technology. All three segments operate mainly within South Africa and certain of our activities outside of South Africa have been allocated to Processing. The Company’s reportable segments offer different products and services and require different resources and marketing strategies but share the Company’s assets. 18. Operating segments (continued) Operating segments (continued) The Processing segment includes fees earned by the Company from processing activities performed for its customers and revenue generated from the distribution of prepaid airtime. The Company provides its customers with transaction processing services that involve the collection, transmittal and retrieval of all transaction data. Customers that have a bank account managed by the Company are issued cards that can be utilized to withdraw funds at an ATM or to transact at a merchant point of sale device (“POS”). The Company earns processing fees from transactions processed for these customers. The Company also earns fees on transactions performed by other banks’ customers utilizing its ATM, POS or bill payment infrastructure. The Processing segment includes IPG’s processing activities. The Financial services segment includes activities related to the provision of financial services to customers, including a bank account, loans and insurance products. The Company charges monthly administration fees for all bank accounts. The Company provides short-term loans to customers in South Africa for which it earns initiation and monthly service fees. The Company writes life insurance contracts, primarily funeral-benefit policies, and policy holders pay the Company a monthly insurance premium. The Technology segment includes sale of hardware and licenses to customers. Hardware includes the sale of POS devices, SIM cards and other consumables which can occur on an ad hoc basis. Licenses include the right to use certain technology developed by the Company. Corporate/Eliminations includes the Company’s head office cost center and the amortization of acquisition-related intangible assets. Revenue (as restated) (1) Reportable Segment Inter-segment From external customers Processing $ 19,990 $ 1,178 $ 18,812 Financial services 9,709 814 8,895 Technology 4,609 11 4,598 Total for the three months ended December 31, 2020 $ 34,308 $ 2,003 $ 32,305 Processing (1) $ 25,022 $ 2,175 $ 22,847 Financial services 12,268 951 11,317 Technology 4,890 136 4,754 Total for the three months ended December 31, 2019 $ 42,180 $ 3,262 $ 38,918 (1) Processing for the three months ended December 31, 2019 has been restated for the error described in Note 1. The reconciliation of the reportable segment’s revenue to revenue from external customers for the six months ended December 31, 2020 and 2019, is as follows: Revenue (as restated) (1) Reportable Segment Inter-segment From external customers Processing $ 42,496 $ 2,166 $ 40,330 Financial services 17,974 1,559 16,415 Technology 10,820 124 10,696 Total for the six months ended December 31, 2020 $ 71,290 $ 3,849 $ 67,441 Processing (1) $ 53,317 $ 4,377 $ 48,940 Financial services 26,436 1,904 24,532 Technology 12,099 437 11,662 Total for the six months ended December 31, 2019 $ 91,852 $ 6,718 $ 85,134 (1) Processing for the six months ended December 31, 2019 has been restated for the error described in Note 1. The Company does not allocate interest income, interest expense or income tax expense to its reportable segments. The Company evaluates segment performance based on segment operating income before acquisition-related intangible asset amortization which represents operating income before acquisition-related intangible asset amortization and expenses allocated to Corporate/Eliminations, all under GAAP. 18. Operating segments (continued) Operating segments (continued) The reconciliation of the reportable segments measures of profit or loss to income before income taxes for the three and six months ended December 31, 2020 and 2019, is as follows: Three months ended Six months ended December 31, December 31, 2020 2019 2020 2019 Reportable segments measure of profit or loss $ ( 10,374) $ ( 6,508) $ ( 18,272) $ ( 10,523) Operating loss: Corporate/Eliminations ( 4,831) ( 3,912) ( 7,708) ( 6,333) Change in fair value of equity securities 15,128 - 15,128 - Gain on disposal of FIHRST - 9,743 - 9,743 Loss on disposal of equity-accounted investment ( 13) - ( 13) - Interest income 717 1,082 1,328 1,445 Interest expense ( 677) ( 3,129) ( 1,424) ( 4,476) Income (Loss) before income taxes $ ( 50) $ ( 2,724) $ ( 10,961) $ ( 10,144) The following tables summarize segment information that is prepared in accordance with GAAP for the three and six months ended December 31, 2020 and 2019: Three months ended Six months ended December 31, December 31, 2020 2019 2020 2019 (as restated) (1) (as restated) (1) Revenues Processing $ 19,990 $ 25,022 $ 42,496 $ 53,317 All others 19,512 24,590 40,809 52,092 IPG 478 432 1,687 1,225 Financial services 9,709 12,268 17,974 26,436 Technology 4,609 4,890 10,820 12,099 Total 34,308 42,180 71,290 91,852 Operating (loss) income Processing ( 10,381) ( 5,848) ( 17,682) ( 11,353) IPG ( 4,647) ( 2,920) ( 7,419) ( 4,893) All others ( 5,734) ( 2,928) ( 10,263) ( 6,460) Financial services ( 1,071) ( 1,249) ( 3,443) ( 904) Technology 1,078 589 2,853 1,734 Subtotal: Operating segments ( 10,374) ( 6,508) ( 18,272) ( 10,523) Corporate/Eliminations ( 4,831) ( 3,912) ( 7,708) ( 6,333) Total ( 15,205) ( 10,420) ( 25,980) ( 16,856) Depreciation and amortization Processing 707 847 1,411 1,670 Financial services 116 216 252 434 Technology 163 2 165 168 Subtotal: Operating segments 986 1,065 1,828 2,272 Corporate/Eliminations 88 109 169 226 Total 1,074 1,174 1,997 2,498 Expenditures for long-lived assets Processing 106 246 352 2,314 Financial services 23 52 51 131 Technology 2,894 ( 2) 2,895 - Subtotal: Operating segments 3,023 296 3,298 2,445 Corporate/Eliminations - - - - Total $ 3,023 $ 296 $ 3,298 $ 2,445 (1) Revenues-Processing-All others for the three and six months ended December 31, 2019 have been restated for the error described in Note 1. 18. Operating segments (continued) Operating segments (continued) The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented. |
Income Tax
Income Tax | 6 Months Ended |
Dec. 31, 2020 | |
Income Tax [Abstract] | |
Income Tax | 19. Income tax Income tax in interim periods For the purposes of interim financial reporting, the Company determines the appropriate income tax provision by first applying the effective tax rate expected to be applicable for the full fiscal year to ordinary income. This amount is then adjusted for the tax effect of significant unusual items, for instance, changes in tax law, valuation allowances and non-deductible transaction-related expenses that are reported separately, and have an impact on the tax charge. The cumulative effect of any change in the enacted tax rate, if and when applicable, on the opening balance of deferred tax assets and liabilities is also included in the tax charge as a discrete event in the interim period in which the enactment date occurs. For the three months ended December 31, 2020, the Company’s effective tax rate was impacted by the tax effect of the change in the fair value of our equity securities (refer to Note 6), which is at a lower tax rate than the South African statutory rate, which was partially offset by the tax expense recorded by the Company’s profitable South African operations, non-deductible expenses, the on-going losses incurred by IPG and certain of the Company’s South African businesses and the associated valuation allowances created related to the deferred tax assets recognized regarding net operating losses incurred by these entities. For the six months ended December 31, 2020, the Company’s effective tax rate was impacted by the tax effect of the change in fair value referred to above, tax expense recorded by the Company’s profitable South African operations, non-deductible expenses, the on-going losses incurred by IPG and certain of the Company’s South African businesses and the associated valuation allowances created related to the deferred tax assets recognized regarding net operating losses incurred by these entities, which was partially offset by the reversal of the deferred tax liability related to one of the Company’s equity-accounted investments following its impairment (refer to Note 6). For the three and six months ended December 31, 2019, the Company’s effective tax rate was impacted by the on-going losses incurred by certain of its South African businesses and the associated valuation allowances created related to the deferred tax assets recognized regarding net operating losses incurred by the Company’s South African businesses and non-deductible expenses, including transaction-related expenditure, which was partially offset by tax expense recorded by the Company’s profitable businesses in South Africa. Uncertain tax positions The Company had no significant uncertain tax positions during the three months ended December 31, 2020, and therefore, the Company had no accrued interest related to uncertain tax positions on its balance sheet. The Company does not expect changes related to its unrecognized tax benefits will have a significant impact on its results of operations or financial position in the next 12 months. The Company has no unrecognized tax benefits. The Company files income tax returns mainly in South Africa, Germany, Hong Kong, India, the United Kingdom, Botswana and in the U.S. federal jurisdiction. As of December 31, 2020, the Company’s South African subsidiaries are no longer subject to income tax examination by the South African Revenue Service for periods before June 30, 2016. The Company is subject to income tax in other jurisdictions outside South Africa, none of which are individually material to its financial position, statement of cash flows, or results of operations. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 20. Commitments and contingencies 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 a South African bank. 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 156.6 million ($ 10.7 million, translated at exchange rates applicable as of December 31, 2020) thereby utilizing part of the Company’s short-term facilities. The Company pays commission of between 0.4% per annum to 1.94% per annum of the face value of these guarantees and does not recover any of the commission from third parties. 20. Commitments and contingencies (continued) The Company has not recognized any obligation related to these guarantees in its consolidated balance sheet as of December 31, 2020. The maximum potential amount that the Company could pay under these guarantees is ZAR 156.6 million ($ 10.7 million, translated at exchange rates applicable as of December 31, 2020). The guarantees have reduced the amount available for borrowings under the Company’s short-term credit facility described in Note 9. Contingencies The Company is subject to a variety of other 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. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 21. Discontinued operations The Company determined that, following the disposal of its controlling interest, Net1 Korea (in fiscal 2020) and DNI (in fiscal 2019) should be classified as discontinued operations because the disposal of these businesses represented a strategic shift that would have a major effect on the Company’s operations and financial results. Refer to Note 3 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2020, for additional information regarding the deconsolidation of Net1 Korea and DNI. The table below presents certain major captions to the Company’s unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows for three and six months ended December 31, 2019, that have not been separately presented on those statements related to the presentation of Net1 Korea as a discontinued operation: Net1 Korea Three months ended Six months ended December 31, 2019 December 31, 2019 Unaudited condensed consolidated statement of operations Discontinued: Revenue $ 33,513 $ 66,331 Cost of goods sold, IT processing, servicing and support 14,765 29,131 Selling, general and administration 11,975 23,284 Depreciation and amortization 3,207 6,648 Operating income 3,566 7,268 Interest income 261 549 Interest expense 92 100 Net income before tax 3,735 7,717 Income tax expense 1,015 2,062 Net income from discontinued operations $ 2,720 $ 5,655 Unaudited condensed consolidated statement of cash flows Discontinued: Total net cash provided by operating activities $ 4,371 $ 14,565 Total net cash used in investing activities $ ( 12,893) $ ( 9,805) The Company retained a continuing involvement in DNI following the disposal of the Company’s controlling interest during the year ended June 30, 2019. The Company recorded earnings under the equity method related to its retained investment in DNI during the six months ended December 31, 2019. The table below presents revenues and expenses between the Company and DNI, after the DNI disposal transaction, during the six months ended December 31, 2019: DNI Three months ended Six months ended December 31, 2019 December 31, 2019 Revenue generated from transactions with DNI $ - $ - Expenses incurred related to transactions with DNI $ 333 $ 2,607 The Company received dividends of $ 0.4 million and $ 1.1 million from DNI during the three and six months ended December 31, 2019, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 22. Related party transactions Disgorgement proceeds from VCP In late September 2020, Value Capital Partners (Pty) Ltd (“VCP”), a significant shareholder, notified the Company that it would make payment to the Company related to the disgorgement of short-swing profits from the purchase of common stock by VCP pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended and the Company’s insider trading policy. The Company recognizes these proceeds as a capital contribution from shareholders and recorded an increase of $ 0.1 million, net of taxes of $ 0.02 million, to additional paid-in capital in its unaudited condensed consolidated statement of changes in equity for the three months ended September 30, 2020. As the purchase transactions occurred in late September 2020, $ 0.02 million of the $ 0.12 million proceeds were received in early October 2020 and these amounts were recorded within cash flows from financing activities in the Company’s unaudited condensed consolidated statement of cash flow for the three months ended December 31, 2020. The Company expects to pay the taxes due of $ 0.02 million in calendar 2021. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. Subsequent events Disposal of entire 35% interest in Bank Frick On February 3, 2021, the Company entered into a share sales agreement with the Frick Family Foundation (“KFS”) to sell its entire interest, or 35%, in Bank Frick to KFS for $ 30 million. The parties also agreed that the Company will pay $ 3.6 million to KFS to terminate all existing arrangements with Bank Frick and settle all liabilities related to IPG’s activities with Bank Frick, and this amount will be set off against the first payment made by KFS in February 2021. KFS will pay $ 15.0 million within two days from signing, which comprises $ 18.6 million less the $ 3.6 million referred to earlier, $ 7.5 million on October 30, 2021, and the remaining amount, of $ 3.9 million on July 15, 2022. The parties entered into a security and pledge agreement under which KFS pledged the Bank Frick shares purchased as security for the amounts outstanding under the share sales agreement. |
Basis Of Presentation And Sum_2
Basis Of Presentation And Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Dec. 31, 2020 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements include all majority-owned subsidiaries over which the Company exercises control and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission for Quarterly Reports on Form 10-Q and include all of the information and disclosures required for interim financial reporting. The results of operations for the three months ended December 31, 2020 and 2019, are not necessarily indicative of the results for the full year. The Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements, accounting policies and financial notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair representation of financial results for the interim periods presented. References to “Net1” are references solely to Net 1 UEPS Technologies, Inc. References to the “Company” refer to Net1 and its consolidated subsidiaries, collectively, unless the context otherwise requires. |
Impact Of COVID-19 On The Company's Business | Impact of COVID-19 on the Company’s business The COVID-19 pandemic did not impact the Company’s South African operations as severely during the three and six months ended December 31, 2020, compared to the last four months of the year ended June 30, 2020. However, on December 28, 2020, the country moved back to Level 3 restrictions which remain in place as of the date of this report. This level of restrictions is not as severe as that applied during April and May 2020 but is greater than was applied through most of the six months ended December 31, 2020. The increase in restrictions was in response to a second wave of infections, which has been more severe than the first wave. While all the Company’s businesses continue to operate, it has increased preventive measures and it is unclear to what extent activity levels will be affected. The Company has experienced an increase in claims in its life insurance business, which the Company believes is linked to the second wave. The broader implications of COVID-19 on the Company’s results of operations and overall financial performance continue to remain uncertain. While the Company has not incurred significant disruptions thus far from the COVID-19 outbreak, apart from the two months in April and May 2020 when loan origination was curtailed, the Company is unable to accurately predict the impact that COVID-19 will have due to numerous uncertainties, including the severity and duration of the outbreak, actions that may be taken by governmental authorities, the impact on the Company’s customers and other factors. The Company will continue to evaluate the nature and extent of the impact on its business, consolidated results of operations, and financial condition. |
Recent Accounting Pronouncements Adopted | Recent accounting pronouncements adopted There were no new accounting pronouncements adopted by the Company during the three and six months ended December 31, 2020. |
Recent accounting pronouncements Not Yet Adopted As Of December 31, 2020 | Recent accounting pronouncements not yet adopted as of December 31, 2020 In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance regarding Measurement of Credit Losses on Financial Instruments . The guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, an entity is required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for the Company beginning July 1, 2023. The Company is currently assessing the impact of this guidance on its financial statements and related disclosures, but does not expect the impact on its financial results to be material. In August 2018, the FASB issued guidance regarding Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement. The guidance modifies the disclosure requirements related to fair value measurement. This guidance is effective for the Company beginning July 1, 2021. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statement’s disclosure. 1. Basis of Presentation and Summary of Significant Accounting Policies (continued) Recent accounting pronouncements not yet adopted as of December 31, 2020 (continued) In November 2019, the FASB issued guidance regarding Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). The guidance provides a framework to stagger effective dates for future major accounting standards and amends the effective dates for certain major new accounting standards to give implementation relief to certain types of entities, including Smaller Reporting Companies. The Company is a Smaller Reporting Company. Specifically, the guidance changes some effective dates for certain new standards on the following topics in the FASB Codification, namely Derivatives and Hedging (ASC 815); Leases (ASC 842); Financial Instruments — Credit Losses (ASC 326); and Intangibles — Goodwill and Other (ASC 350). The guidance defers the adoption date of guidance regarding Measurement of Credit Losses on Financial Instruments by the Company from July 1, 2020 to July 1, 2023, and defers the adoption guidance regarding Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement by the Company from July 1, 2020 to July 1, 2021. In January 2020, the FASB issued guidance regarding Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815. The guidance clarifies that an entity should consider observable transactions that require an entity to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with U.S GAAP guidance immediately before applying or upon discontinuing the equity method. The guidance also clarifies that, when determining the accounting for certain forward contracts and purchased options an entity should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. This guidance is effective for the Company beginning July 1, 2021. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statement’s disclosure. |
Restatement Of Financial Statements | Restatement of financial statements Related to overstatement of revenue and cost of goods sold, IT processing, servicing and support In November 2020, the Company identified an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support during its assessment and systems development of new products. The Company incorrectly duplicated the recognition of acquiring fees in revenue and recorded an equal and opposite entry in cost of goods sold, IT processing, servicing and support in its unaudited condensed consolidated statement of operations due to the misinterpretation of certain system reports. The error did not impact on the Company’s operating income (loss), net income, balance sheet or cash flows. The Company determined that the error impacted reported results for the period from July 1, 2018 to September 30, 2020. The error impacts the Company’s reported results and the Company has restated its unaudited condensed consolidated statement of operations and certain note presentation, primarily Note 16 (Revenue) and Note 18 (Operating segments) for the three and six months ended December 31, 2019, to correct for the error. The tables below present the impact of the restatement on the Company’s unaudited condensed consolidated statement of operations for the three months ended September 30, 2020, and the three and six months ended December 31, 2019: Unaudited condensed consolidated statement of operations Three months ended September 30, 2020 (1) As reported Correction As restated (in thousands) Revenue $ 37,113 $ ( 1,977) $ 35,136 Cost of goods sold, IT processing, servicing and support $ 28,437 $ ( 1,977) $ 26,460 Three months ended December 31, 2019 As reported Correction As restated (in thousands) Revenue $ 40,567 $ ( 1,649) $ 38,918 Cost of goods sold, IT processing, servicing and support $ 28,395 $ ( 1,649) $ 26,746 Six months ended December 31, 2019 As reported Correction As restated (in thousands) Revenue $ 88,505 $ ( 3,371) $ 85,134 Cost of goods sold, IT processing, servicing and support $ 60,823 $ ( 3,371) $ 57,452 (1) The error for the three months ended December 31, 2020, also impacted the six months ended December 31, 2020, by the same amount and the therefore the amounts reported for the six months ended December 31, 2020, include the correction of the error. 1. Basis of Presentation and Summary of Significant Accounting Policies (continued) Restatement of financial statements (continued) Related to overstatement of revenue and cost of goods sold, IT processing, servicing and support (continued) The table below presents the impact of the restatement on the affected lines in the Processing and Total columns included in the revenue note (Note 16) for the three months ended September 30, 2020, and the three and six months ended December 31, 2019: Three months ended Three months ended Six months ended September 30, 2020 (1) December 31, 2019 Processing Total Processing Total Processing Total Processing fees - as restated $ 16,330 $ 16,929 $ 14,938 $ 16,236 $ 29,132 $ 31,679 As reported 18,307 18,906 16,587 17,885 32,503 35,050 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) South Africa - as restated 14,774 15,373 14,088 15,386 27,083 29,630 As reported 16,751 17,350 15,737 17,035 30,454 33,001 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) Rest of world $ 1,556 $ 1,556 $ 850 $ 850 $ 2,049 $ 2,049 Total revenue, derived from the following geographic locations - as restated $ 21,518 $ 35,136 $ 22,847 $ 38,918 $ 48,940 $ 85,134 As reported 23,495 37,113 24,496 40,567 52,311 88,505 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) South Africa - as restated 19,962 33,580 21,997 38,068 46,891 83,085 As reported 21,939 35,557 23,646 39,717 50,262 86,456 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) Rest of world $ 1,556 $ 1,556 $ 850 $ 850 $ 2,049 $ 2,049 (1) The error for the three months ended December 31, 2020, also impacted the six months ended December 31, 2020, by the same amount and the therefore the amount reported for the six months ended December 31, 2020, includes the correction of the error. The table below presents the impact of the restatement to the Processing operating segment revenue included in the operating segment note (Note 18) for the three months ended September 30, 2020, and the three and six months ended December 31, 2019: Revenue (as restated) Reportable Segment Inter-segment From external customers Processing - as restated (1) $ 22,506 $ 988 $ 21,518 As reported 24,483 988 23,495 Correction ( 1,977) - ( 1,977) Total for the three months ended September 30, 2020 - as restated 36,982 1,846 35,136 As reported 38,959 1,846 37,113 Correction ( 1,977) - ( 1,977) Processing - as restated $ 25,022 $ 2,175 $ 22,847 As reported 26,671 2,175 24,496 Correction ( 1,649) - ( 1,649) Total for the three months ended December 31, 2019 - as restated 42,180 3,262 38,918 As reported 43,829 3,262 40,567 Correction ( 1,649) - ( 1,649) Processing - as restated $ 53,317 $ 4,377 $ 48,940 As reported 56,688 4,377 52,311 Correction ( 3,371) - ( 3,371) Total for the six months ended December 31, 2019 - as restated 91,852 6,718 85,134 As reported 95,223 6,718 88,505 Correction $ ( 3,371) $ - $ ( 3,371) (1) The error for the three months ended December 31, 2020, also impacted the six months ended December 31, 2020, by the same amount and the therefore the amounts reported for the six months ended December 31, 2020, include the correction of the error. |
Basis Of Presentation And Sum_3
Basis Of Presentation And Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | |
Impact Of The Restatement On Financial Statements | Unaudited condensed consolidated statement of operations Three months ended September 30, 2020 (1) As reported Correction As restated (in thousands) Revenue $ 37,113 $ ( 1,977) $ 35,136 Cost of goods sold, IT processing, servicing and support $ 28,437 $ ( 1,977) $ 26,460 Three months ended December 31, 2019 As reported Correction As restated (in thousands) Revenue $ 40,567 $ ( 1,649) $ 38,918 Cost of goods sold, IT processing, servicing and support $ 28,395 $ ( 1,649) $ 26,746 Six months ended December 31, 2019 As reported Correction As restated (in thousands) Revenue $ 88,505 $ ( 3,371) $ 85,134 Cost of goods sold, IT processing, servicing and support $ 60,823 $ ( 3,371) $ 57,452 Three months ended Three months ended Six months ended September 30, 2020 (1) December 31, 2019 Processing Total Processing Total Processing Total Processing fees - as restated $ 16,330 $ 16,929 $ 14,938 $ 16,236 $ 29,132 $ 31,679 As reported 18,307 18,906 16,587 17,885 32,503 35,050 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) South Africa - as restated 14,774 15,373 14,088 15,386 27,083 29,630 As reported 16,751 17,350 15,737 17,035 30,454 33,001 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) Rest of world $ 1,556 $ 1,556 $ 850 $ 850 $ 2,049 $ 2,049 Total revenue, derived from the following geographic locations - as restated $ 21,518 $ 35,136 $ 22,847 $ 38,918 $ 48,940 $ 85,134 As reported 23,495 37,113 24,496 40,567 52,311 88,505 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) South Africa - as restated 19,962 33,580 21,997 38,068 46,891 83,085 As reported 21,939 35,557 23,646 39,717 50,262 86,456 Correction ( 1,977) ( 1,977) ( 1,649) ( 1,649) ( 3,371) ( 3,371) Rest of world $ 1,556 $ 1,556 $ 850 $ 850 $ 2,049 $ 2,049 Revenue (as restated) Reportable Segment Inter-segment From external customers Processing - as restated (1) $ 22,506 $ 988 $ 21,518 As reported 24,483 988 23,495 Correction ( 1,977) - ( 1,977) Total for the three months ended September 30, 2020 - as restated 36,982 1,846 35,136 As reported 38,959 1,846 37,113 Correction ( 1,977) - ( 1,977) Processing - as restated $ 25,022 $ 2,175 $ 22,847 As reported 26,671 2,175 24,496 Correction ( 1,649) - ( 1,649) Total for the three months ended December 31, 2019 - as restated 42,180 3,262 38,918 As reported 43,829 3,262 40,567 Correction ( 1,649) - ( 1,649) Processing - as restated $ 53,317 $ 4,377 $ 48,940 As reported 56,688 4,377 52,311 Correction ( 3,371) - ( 3,371) Total for the six months ended December 31, 2019 - as restated 91,852 6,718 85,134 As reported 95,223 6,718 88,505 Correction $ ( 3,371) $ - $ ( 3,371) |
Disposal Of Controlling Inter_2
Disposal Of Controlling Interest In FIHRST (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
FIHRST [Member] | |
Impact Of Deconsolidation Of FIHRST And Calculation Of Net Gain Recognized On Deconsolidation | FIHRST December 31, 2019 Fair value of consideration received $ 11,749 Less: carrying value of FIHRST, comprising 1,870 Cash and cash equivalents 854 Accounts receivable, net 367 Property, plant and equipment, net 64 Goodwill (Note 7) 599 Intangible assets, net 30 Deferred income taxes assets 42 Accounts payable ( 7) Other payables ( 1,437) Income taxes payable ( 220) Released from accumulated other comprehensive income – foreign currency translation reserve (Note 12) 1,578 Settlement assets 17,406 Settlement liabilities ( 17,406) Gain recognized on disposal, before tax 9,879 Taxes related to gain recognized on disposal, comprising: - Capital gains tax 2,418 Release of valuation allowance related to capital losses previously unutilized (1) ( 2,418) Transaction costs 136 Gain recognized on disposal, after tax $ 9,743 (1) Net1 SA recorded a valuation allowance related to capital losses previously generated but not utilized. A portion of these unutilized capital losses was utilized as a result of the disposal of FIHRST and, therefore, the equivalent portion of the valuation allowance created was released. |
Accounts Receivable, Net And _2
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable, Net And Other Receivables | December 31, June 30, 2020 2020 Accounts receivable, trade, net $ 10,288 $ 8,458 Accounts receivable, trade, gross 10,647 8,711 Allowance for doubtful accounts receivable, end of period 359 253 Beginning of period 253 661 Reversed to statement of operations - ( 155) Charged to statement of operations 70 181 Utilized ( 11) ( 151) Deconsolidation - ( 178) Foreign currency adjustment 47 ( 105) Taxes refundable related to sale of Net1 Korea - 19,796 Loans provided to Carbon 3,000 3,000 Current portion of amount outstanding related to sale of remaining interest in DNI - 2,756 Other receivables 11,159 9,058 Total accounts receivable, net and other receivables $ 24,447 $ 43,068 |
Schedule Of Finance Loans Receivable, Net | December 31, June 30, 2020 2020 Microlending finance loans receivable, net $ 21,620 $ 15,879 Microlending finance loans receivable, gross 24,017 17,737 Allowance for doubtful finance loans receivable, end of period 2,397 1,858 Beginning of period 1,858 3,199 Reversed to statement of operations ( 557) ( 492) Charged to statement of operations 1,105 1,211 Utilized ( 369) ( 1,451) Foreign currency adjustment 360 ( 609) Working capital finance loans receivable, gross - 5,800 Allowance for doubtful finance loans receivable, end of period - 5,800 Beginning of period 5,800 5,800 Utilized ( 5,800) - Total accounts receivable, net $ 21,620 $ 15,879 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Inventory [Abstract] | |
Schedule Of Inventory | December 31, June 30, 2020 2020 Finished goods $ 20,939 $ 15,618 Finished goods subject to sale restrictions - 4,242 $ 20,939 $ 19,860 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Schedule Of Key Valuation Inputs Used To Measure Fair Value Of Investment In Cell C | Weighted Average Cost of Capital ("WACC"): Between 17% and 22% over the period of the forecast Long term growth rate: 3% ( 3% as of June 30, 2020) Marketability discount: 10% Minority discount: 15% Net adjusted external debt - December 31, 2020: (1) ZAR 11.2 billion ($ 0.8 billion), includes no lease liabilities Net adjusted external debt - June 30, 2020: (2) ZAR 15.8 billion ($ 0.9 billion), includes ZAR 4.4 billion of lease liabilities Deferred tax (incl, assessed tax losses) - December 31, 2020: (1) ZAR 0 ($ 0) Deferred tax (incl, assessed tax losses) - June 30, 2020: (2) ZAR 2.9 billion ($ 167.3 million) (1) translated from ZAR to U.S. dollars at exchange rates applicable as of December 31, 2020. (2) translated from ZAR to U.S. dollars at exchange rates applicable as of June 30, 2020. 5. Fair value of financial instruments (continued) |
Schedule Of Impact On Carrying Value Of Cell C Investment | Sensitivity for fair value of Cell C investment 1.0% increase 1.0% decrease WACC rate $ - $ 1,514 EBITDA margin $ 627 $ - |
Fair Value Of Assets And Liabilities Measured On Recurring Basis | Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment in Cell C $ - $ - $ - $ - Related to insurance business: Cash, cash equivalents and restricted cash (included in other long-term assets) 593 - - 593 Fixed maturity investments (included in cash and cash equivalents) - - - - Total assets at fair value $ 593 $ - $ - $ 593 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment in Cell C $ - $ - $ - $ - Related to insurance business Cash and cash equivalents (included in other long-term assets) 490 - - 490 Fixed maturity investments (included in cash and cash equivalents) 4,198 - - 4,198 Total assets at fair value $ 4,688 $ - $ - $ 4,688 |
Carrying Value Of Assets And Liabilities Measured On Recurring Basis | Carrying value Assets Balance as of June 30, 2020 $ - Foreign currency adjustment (1) - Balance as of December 31, 2020 $ - (1) The foreign currency adjustment represents the effects of the fluctuations between the ZAR, and the U.S. dollar on the carrying value. Carrying value Assets Balance as at June 30, 2019 $ - Foreign currency adjustment (1) - Balance as of December 31, 2019 $ - (1) The foreign currency adjustment represents the effects of the fluctuations between the ZAR, and the U.S. dollar on the carrying value. |
Equity-Accounted Investments _2
Equity-Accounted Investments And Other Long-Term Assets (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Equity-Accounted Investments And Other Long-Term Assets [Abstract] | |
Ownership Percentage Of Equity-Accounted Investments | December 31, June 30, 2020 2020 Bank Frick & Co AG (“Bank Frick”) 35 % 35 % Finbond Group Limited (“Finbond”) 31 % 31 % Carbon Tech Limited (“Carbon”) 25 % 25 % Revix (“Revix”) 25 % 25 % SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”) 50 % 50 % V2 Limited (“V2”) 50 % 50 % Walletdoc Proprietary Limited (“Walletdoc”) - 20 % |
Summary Of Movement In Equity-Accounted Investments | Bank Frick Finbond Other (1) Total Investment in equity Balance as of June 30, 2020 $ 29,739 $ 30,876 $ 4,601 $ 65,216 Stock-based compensation - ( 40) - ( 40) Comprehensive (loss) income: 979 ( 18,579) ( 865) ( 18,465) Other comprehensive income - 1,688 - 1,688 Equity accounted (loss) earnings 979 ( 20,267) ( 865) ( 20,153) Share of net (loss) income 979 ( 2,617) ( 317) ( 1,955) Impairment - ( 17,650) ( 548) ( 18,198) Dividends received - - ( 125) ( 125) Disposal of equity-accounted investment - - ( 13) ( 13) Foreign currency adjustment (2) 2,301 3,178 74 5,553 Balance as of December 31, 2020 $ 33,019 $ 15,435 $ 3,672 $ 52,126 Investment in loans: Balance as of June 30, 2020 $ - $ - $ 620 $ 620 Loans granted - - 1,238 1,238 Allowance for doubtful loans - - ( 738) ( 738) Loans repaid - - ( 134) ( 134) Foreign currency adjustment (2) - - 14 14 Balance as of December 31, 2020 $ - $ - $ 1,000 $ 1,000 Equity Loans Total Carrying amount as of : June 30, 2020 $ 65,216 $ 620 $ 65,836 December 31, 2020 $ 52,126 $ 1,000 $ 53,126 (1) Includes Carbon, SmartSwitch Namibia, V2 and Walletdoc. (2) The foreign currency adjustment represents the effects of the fluctuations of the Swiss franc, ZAR, Nigerian naira and Namibian dollar, against the U.S. dollar on the carrying value. |
Summary Of Other Long-Term Asset | December 31, June 30, 2020 2020 Total equity investments $ 42,121 $ 26,993 Investment in 15% of Cell C, at fair value (Note 5) - - Investment in 12% of MobiKwik 42,121 26,993 Investment in 87.5% of CPS (1) - - Total held to maturity investments - - Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes - - Long-term portion of amount due from DNI related to sale of remaining interest in DNI - 2,857 Policy holder assets under investment contracts (Note 8) 593 490 Reinsurance assets under insurance contracts (Note 8) 1,193 1,006 Total other long-term assets $ 43,907 $ 31,346 (1) On October 16, 2020, the High Court of South Africa, Gauteng Division, Pretoria ordered that CPS be placed into liquidation. |
Summary Of Unrealized Gain (Loss) On Investments | Cost basis Unrealized holding Unrealized holding Carrying gains losses value Equity securities: Investment in MobiKwik $ 26,993 $ 15,128 $ - $ 42,121 Investment in CPS - - - - Held to maturity: Investment in Cedar Cellular notes - - - - Total $ 26,993 $ 15,128 $ - $ 42,121 Cost basis Unrealized holding Unrealized holding Carrying gains losses value Equity securities: Investment in MobiKwik $ 26,993 $ - $ - $ 26,993 Investment in CPS - - - - Held to maturity: Investment in Cedar Cellular notes - - - - Total $ 26,993 $ - $ - $ 26,993 |
Summary Of Contractual Maturity Of Investment | Cost basis Estimated fair value (1) Due in one year or less $ - $ - Due in one year through five years (2) - - Due in five years through ten years - - Due after ten years - - Total $ - $ - (1) The estimated fair value of the Cedar Cellular note has been calculated utilizing the Company’s portion of the security provided to the Company by Cedar Cellular, namely, Cedar Cellular’s investment in Cell C. (2) The cost basis is zero ($0.0 million). |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets, Net (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets, Net [Abstract] | |
Summary Of Movement In Carrying Value Of Goodwill | Gross value Accumulated impairment Carrying value Balance as of June 30, 2020 $ 63,194 $ ( 39,025) $ 24,169 Foreign currency adjustment (1) 5,490 ( 1,204) 4,286 Balance as of December 31, 2020 $ 68,684 $ ( 40,229) $ 28,455 (1) The foreign currency adjustment represents the effects of the fluctuations between the ZAR and the U.S. dollar on the carrying value. |
Goodwill Allocated To Reportable Segments | Processing Financial services Technology Carrying value Balance as of June 30, 2020 $ 9,989 $ - $ 14,180 $ 24,169 Foreign currency adjustment (1) 1,701 - 2,585 4,286 Balance as of December 31, 2020 $ 11,690 $ - $ 16,765 $ 28,455 (1) The foreign currency adjustment represents the effects of the fluctuations between the ZAR and the U.S. dollar on the carrying value. |
Carrying Value And Accumulated Amortization Of Intangible Assets | As of December 31, 2020 As of June 30, 2020 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Finite-lived intangible assets: Customer relationships $ 20,620 $ ( 20,467) $ 153 $ 19,064 $ ( 18,806) $ 258 Software and unpatented technology 4,190 ( 4,190) - 3,931 ( 3,931) - FTS patent 2,614 ( 2,614) - 2,211 ( 2,211) - Trademarks 3,034 ( 2,651) 383 2,731 ( 2,377) 354 Total finite-lived intangible assets $ 30,458 $ ( 29,922) $ 536 $ 27,937 $ ( 27,325) $ 612 Infinite-lived intangible assets: Financial institution licenses - - Total infinite-lived intangible assets - - Total intangible assets $ 536 $ 612 |
Future Estimated Annual Amortization Expense | Fiscal 2021 $ 376 Fiscal 2022 70 Fiscal 2023 70 Fiscal 2024 70 Fiscal 2025 69 Thereafter 70 Total future estimated annual amortization expense $ 725 |
Assets And Policyholder Liabi_2
Assets And Policyholder Liabilities Under Insurance And Investment Contracts (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Assets And Policyholder Liabilities Under Insurance And Investment Contracts [Abstract] | |
Summary Of Movement In Reinsurance Assets And Policyholder Liabilities Under Insurance Contracts | Reinsurance Assets (1) Insurance contracts (2) Balance as of June 30, 2020 $ 1,006 $ ( 1,370) Increase in policy holder benefits under insurance contracts 220 3,721 Claims and policyholders’ benefits under insurance contracts ( 216) ( 3,729) Foreign currency adjustment (3) 183 ( 249) Balance as of December 31, 2020 $ 1,193 $ ( 1,627) (1) Included in other long-term assets (refer to Note 6); (2) Included in other long-term liabilities; (3) Represents the effects of the fluctuations of the ZAR against the U.S. dollar. |
Summary Of Movement In Assets And Policyholder Liabilities Under Investment Contracts | Assets (1) Investment contracts (2) Balance as of June 30, 2020 $ 490 $ ( 490) Increase in policy holder benefits under investment contracts 13 ( 13) Foreign currency adjustment (3) 90 ( 90) Balance as of December 31, 2020 $ 593 $ ( 593) (1) Included in other long-term assets (refer to Note 6); (2) Included in other long-term liabilities; (3) Represents the effects of the fluctuations of the ZAR against the U.S. dollar. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Borrowings [Abstract] | |
Summary Of Short-Term Credit Facilities | South Africa Total RMB Nedbank Short-term facilities available as of December 31, 2020 $ 81,852 $ 31,310 $ 113,162 Overdraft - 3,410 3,410 Overdraft restricted as to use for ATM funding only 81,852 17,052 98,904 Indirect and derivative facilities - 10,848 10,848 Interest rate (%), based on South African prime rate 7.00 Interest rate (%), based on South African prime rate less 1.15% 5.85 Movement in utilized overdraft facilities: Balance as of June 30, 2020 14,756 58 14,814 Utilized 189,928 16,551 206,479 Repaid ( 155,670) ( 9,438) ( 165,108) Foreign currency adjustment (1) 4,720 ( 102) 4,618 Balance as of December 31, 2020 53,734 7,069 60,803 Restricted as to use for ATM funding only 53,734 7,069 60,803 Movement in utilized indirect and derivative facilities: Balance as of June 30, 2020 (2) - 5,398 5,398 Utilized - 3,826 3,826 Foreign currency adjustment (1) - 1,455 1,455 Balance as of December 31, 2020 (2) $ - $ 10,679 $ 10,679 (1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. (2) As of December 31, 2020 and June 30, 2020, the Company had utilized approximately ZAR 156.6 million ($ 10.7 million) and ZAR 93.6 million ($ 5.4 million), respectively, of its indirect and derivative facilities of ZAR 159.0 million (June 30, 2020: ZAR 150 million) to enable the bank to issue guarantees, letters of credit and forward exchange contracts, in order for the Company to honor its obligations to third parties requiring such guarantees (refer to Note 20). |
Other Payables (Tables)
Other Payables (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Other Payables [Abstract] | |
Schedule Of Other Payables | December 31, June 30, 2020 2020 Accruals $ 7,073 $ 6,045 Provisions 3,048 4,926 Other 13,140 11,329 Value-added tax payable 215 129 Payroll-related payables 1,039 887 Participating merchants' settlement obligation 551 463 $ 25,066 $ 23,779 |
Capital Structure (Tables)
Capital Structure (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Capital Structure [Abstract] | |
Schedule Of Number Of Shares, Net Of Treasury | December 31, December 31, 2020 2019 Number of shares, net of treasury: Statement of changes in equity 56,614,559 56,568,425 Non-vested equity shares that have not vested as of end of period 294,000 583,908 Number of shares, net of treasury, excluding non-vested equity shares that have not vested 56,320,559 55,984,517 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Change In Accumulated Other Comprehensive (Loss) Income Per Component | Three months ended December 31, 2020 Accumulated foreign currency translation reserve Total Balance as of October 1, 2020 $ ( 161,245) $ ( 161,245) Movement in foreign currency translation reserve 20,003 20,003 Balance as of December 31, 2020 $ ( 141,242) $ ( 141,242) Three months ended December 31, 2019 Accumulated foreign currency translation reserve Total Balance as of October 1, 2019 $ ( 211,179) $ ( 211,179) Release of foreign currency translation reserve related to FIHRST disposal (Note 2) 1,578 1,578 Movement in foreign currency translation reserve related to equity-accounted investment ( 491) ( 491) Movement in foreign currency translation reserve 19,114 19,114 Balance as of December 31, 2019 $ ( 190,978) $ ( 190,978) Six months ended December 31, 2020 Accumulated foreign currency translation reserve Total Balance as of July 1, 2020 (as restated, Note 1) $ ( 169,075) $ ( 169,075) Movement in foreign currency translation reserve related to equity-accounted investment 1,688 1,688 Movement in foreign currency translation reserve 26,145 26,145 Balance as of December 31, 2020 $ ( 141,242) $ ( 141,242) Six months ended December 31, 2019 Accumulated foreign currency translation reserve Total Balance as of July 1, 2019 $ ( 195,812) $ ( 195,812) Release of foreign currency translation reserve related to FIHRST disposal (Note 2) 1,578 1,578 Movement in foreign currency translation reserve related to equity-accounted investment 2,227 2,227 Movement in foreign currency translation reserve 1,029 1,029 Balance as of December 31, 2019 $ ( 190,978) $ ( 190,978) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Summarized Stock Option Activity | Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($'000) Weighted average grant date fair value ($) Outstanding - June 30, 2020 1,331,651 5.83 7.56 - 2.01 Granted - August 2020 150,000 3.50 3.00 166 1.11 Granted - November 2020 560,000 3.01 10.00 691 1.23 Exercised ( 5,834) 3.07 - 21 - Forfeited ( 456,033) 7.03 - - 2.26 Outstanding - December 31, 2020 1,579,784 4.28 8.04 2,104 1.59 Outstanding - June 30, 2019 864,579 7.81 7.05 - 2.62 Granted – October 2019 561,000 3.07 10.00 676 1.20 Outstanding - December 31, 2019 1,425,579 5.94 7.81 365 2.07 Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($’000) Vested and expecting to vest - December 31, 2020 1,579,784 4.28 8.04 2,104 Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($’000) Exercisable - December 31, 2020 472,299 6.37 7.17 274 |
Range Of Assumptions Used To Value Options Granted | Six months ended December 31, 2020 2019 Expected volatility 62 % 57 % Expected dividends 0 % 0 % Expected life (in years) 3 3 Risk-free rate 0.19 % 1.57 % |
Restricted Stock Activity | Number of shares of restricted stock Weighted average grant date fair value ($’000) Non-vested – June 30, 2020 1,115,500 5,354 Total vested ( 311,300) ( 1,037) Vested – August 2020 ( 244,500) ( 812) Vested – September 2020 - accelerated vesting ( 66,800) ( 225) Forfeitures ( 510,200) ( 1,766) Non-vested – December 31, 2020 294,000 994 Non-vested – June 30, 2019 583,908 3,410 Non-vested – December 31, 2019 583,908 3,410 |
Recorded Net Stock Compensation Charge | Total charge Allocated to cost of goods sold, IT processing, servicing and support Allocated to selling, general and administration Three months ended December 31, 2020 Stock-based compensation charge $ 246 $ - $ 246 Reversal of stock compensation charge related to stock options and restricted stock forfeited ( 14) - ( 14) Total - three months ended December 31, 2020 $ 232 $ - $ 232 Three months ended December 31, 2019 Stock-based compensation charge $ 436 $ - $ 436 Total - three months ended December 31, 2019 $ 436 $ - $ 436 Total charge Allocated to cost of goods sold, IT processing, servicing and support Allocated to selling, general and administration Six months ended December 31, 2020 Stock-based compensation charge $ 928 $ - $ 928 Reversal of stock compensation charge related to stock options and restricted stock forfeited $ ( 297) $ - $ ( 297) Total - six months ended December 31, 2020 $ 631 $ - $ 631 Six months ended December 31, 2019 Stock-based compensation charge $ 823 $ - $ 823 Total - six months ended December 31, 2019 $ 823 $ - $ 823 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
(Loss) Earnings Per Share [Abstract] | |
Income From Continuing Operations And Share Data Used In Basic And Diluted Earnings Per Share Computations | Three months ended Six months ended December 31, December 31, 2020 2019 2020 2019 (in thousands except (in thousands except percent and percent and per share data) per share data) Numerator: Net loss attributable to Net1 $ ( 4,534) $ ( 205) $ ( 33,492) $ ( 4,597) Undistributed (loss) earnings ( 4,534) ( 205) ( 33,492) ( 4,597) Continuing ( 4,534) ( 2,925) ( 33,492) ( 10,252) Discontinued $ - $ 2,720 $ - $ 5,655 Percent allocated to common shareholders (Calculation 1) 99% 99% 99% 99% Numerator for (loss) earnings per share: basic and diluted ( 4,508) ( 202) ( 33,098) ( 4,549) Continuing ( 4,508) ( 2,894) ( 33,098) ( 10,146) Discontinued - 2,692 - 5,597 Denominator Denominator for basic (loss) earnings per share: weighted-average common shares outstanding 56,317 55,985 56,211 55,985 Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assuming conversion 56,317 55,985 56,211 55,985 (Loss) Earnings per share: Basic $ ( 0.08) $ - $ ( 0.59) $ ( 0.08) Continuing $ ( 0.08) $ ( 0.05) $ ( 0.59) $ ( 0.18) Discontinued $ - $ 0.05 $ - $ 0.10 Diluted $ ( 0.08) $ - $ ( 0.59) $ ( 0.08) Continuing $ ( 0.08) $ ( 0.05) $ ( 0.59) $ ( 0.18) Discontinued $ - $ 0.05 $ - $ 0.10 (Calculation 1) Basic weighted-average common shares outstanding (A) 56,317 55,985 56,211 55,985 Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) 56,641 56,568 56,880 56,568 Percent allocated to common shareholders (A) / (B) 99% 99% 99% 99% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule Of Supplemental Cash Flow Disclosures | Three months ended Six months ended December 31, December 31, 2020 2019 2020 2019 Cash received from interest $ 714 $ 1,042 $ 1,209 $ 1,779 Cash paid for interest $ 636 $ 2,293 $ 1,544 $ 3,107 Cash paid for income taxes $ 765 $ 2,004 $ 16,171 $ 3,887 |
Schedule Of Disaggregation Of Cash, Cash Equivalents And Restricted Cash | December 31, 2020 December 31, 2019 June 30, 2020 Continuing $ 206,251 $ 19,390 $ 217,671 Discontinued - 31,329 - Cash and cash equivalents 206,251 50,719 217,671 Restricted cash 60,803 84,360 14,814 Cash, cash equivalents and restricted cash $ 267,054 $ 135,079 $ 232,485 |
Supplemental Cash Flow Disclosure Related To Leases | Three months ended December 31, Six months ended December 31, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,007 $ 1,108 $ 1,879 $ 2,028 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 1,611 $ 2,260 $ 1,701 $ 2,490 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Disaggregated By Major Revenue Streams | Processing Financial services Technology Total Processing fees $ 14,755 $ 575 $ - $ 15,330 South Africa 13,877 575 - 14,452 Rest of world 878 - - 878 Technology products 665 70 4,346 5,081 Telecom products and services 3,148 - - 3,148 Lending revenue - 5,288 - 5,288 Insurance revenue - 1,613 - 1,613 Account holder fees - 1,273 - 1,273 Other 244 76 252 572 Total revenue, derived from the following geographic locations 18,812 8,895 4,598 32,305 South Africa 17,934 8,895 4,598 31,427 Rest of world $ 878 $ - $ - $ 878 Processing Financial services Technology Total (as restated) (as restated) (1) Processing fees $ 14,938 $ 1,298 $ - $ 16,236 South Africa (1) 14,088 1,298 - 15,386 Rest of world 850 - - 850 Technology products 303 - 4,739 5,042 Telecom products and services 6,639 - - 6,639 Lending revenue - 5,384 - 5,384 Insurance revenue - 1,372 - 1,372 Account holder fees - 3,103 - 3,103 Other 967 160 15 1,142 Total revenue, derived from the following geographic locations 22,847 11,317 4,754 38,918 South Africa 21,997 11,317 4,754 38,068 Rest of world $ 850 $ - $ - $ 850 Processing Financial services Technology Total Processing fees $ 31,085 $ 1,174 $ - $ 32,259 South Africa 28,651 1,174 - 29,825 Rest of world 2,434 - - 2,434 Technology products 1,125 70 10,420 11,615 Telecom products and services 7,570 - - 7,570 Lending revenue - 9,488 - 9,488 Insurance revenue - 3,070 - 3,070 Account holder fees - 2,456 - 2,456 Other 550 157 276 983 Total revenue, derived from the following geographic locations 40,330 16,415 10,696 67,441 South Africa 37,896 16,415 10,696 65,007 Rest of world $ 2,434 $ - $ - $ 2,434 Processing Financial services Technology Total (as restated) (as restated) (1) Processing fees $ 29,132 $ 2,547 $ - $ 31,679 South Africa (1) 27,083 2,547 - 29,630 Rest of world 2,049 - - 2,049 Technology products 543 - 11,633 12,176 Telecom products and services 15,933 - - 15,933 Lending revenue - 10,538 - 10,538 Insurance revenue - 2,758 - 2,758 Account holder fees - 8,363 - 8,363 Other 3,332 326 29 3,687 Total revenue, derived from the following geographic locations 48,940 24,532 11,662 85,134 South Africa 46,891 24,532 11,662 83,085 Rest of world $ 2,049 $ - $ - $ 2,049 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Supplemental Balance Sheet Disclosure Related To Right-of-use Assets And Operating Leases Liabilities | December 31, June 30, 2020 2020 Operating leases: Operating lease right-of-use asset $ 5,112 $ 5,395 Weighted average remaining lease term (years) 2.83 3.94 Weighted average discount rate (percent) 10 9 |
Maturities Of Operating Lease Liability | December 31, 2020 Maturities of operating lease liabilities 2021 (for December 31, 2020 excluding six months to December 31, 2020) $ 1,719 2022 2,401 2023 1,071 2024 573 2025 195 Thereafter - Total undiscounted operating lease liabilities 5,959 Less imputed interest 659 Total operating lease liabilities, included in 5,300 Operating lease liability - current 2,585 Operating lease liability - long-term $ 2,715 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
Reconciliation Of Reportable Segments Revenue | Revenue (as restated) (1) Reportable Segment Inter-segment From external customers Processing $ 19,990 $ 1,178 $ 18,812 Financial services 9,709 814 8,895 Technology 4,609 11 4,598 Total for the three months ended December 31, 2020 $ 34,308 $ 2,003 $ 32,305 Processing (1) $ 25,022 $ 2,175 $ 22,847 Financial services 12,268 951 11,317 Technology 4,890 136 4,754 Total for the three months ended December 31, 2019 $ 42,180 $ 3,262 $ 38,918 (1) Processing for the three months ended December 31, 2019 has been restated for the error described in Note 1. Revenue (as restated) (1) Reportable Segment Inter-segment From external customers Processing $ 42,496 $ 2,166 $ 40,330 Financial services 17,974 1,559 16,415 Technology 10,820 124 10,696 Total for the six months ended December 31, 2020 $ 71,290 $ 3,849 $ 67,441 Processing (1) $ 53,317 $ 4,377 $ 48,940 Financial services 26,436 1,904 24,532 Technology 12,099 437 11,662 Total for the six months ended December 31, 2019 $ 91,852 $ 6,718 $ 85,134 (1) Processing for the six months ended December 31, 2019 has been restated for the error described in Note 1. |
Reconciliation Of Reportable Segments Measure Of Profit Or Loss To Loss Before Income Tax (Benefit) Expense | Three months ended Six months ended December 31, December 31, 2020 2019 2020 2019 Reportable segments measure of profit or loss $ ( 10,374) $ ( 6,508) $ ( 18,272) $ ( 10,523) Operating loss: Corporate/Eliminations ( 4,831) ( 3,912) ( 7,708) ( 6,333) Change in fair value of equity securities 15,128 - 15,128 - Gain on disposal of FIHRST - 9,743 - 9,743 Loss on disposal of equity-accounted investment ( 13) - ( 13) - Interest income 717 1,082 1,328 1,445 Interest expense ( 677) ( 3,129) ( 1,424) ( 4,476) Income (Loss) before income taxes $ ( 50) $ ( 2,724) $ ( 10,961) $ ( 10,144) |
Summary Of Segment Information | Three months ended Six months ended December 31, December 31, 2020 2019 2020 2019 (as restated) (1) (as restated) (1) Revenues Processing $ 19,990 $ 25,022 $ 42,496 $ 53,317 All others 19,512 24,590 40,809 52,092 IPG 478 432 1,687 1,225 Financial services 9,709 12,268 17,974 26,436 Technology 4,609 4,890 10,820 12,099 Total 34,308 42,180 71,290 91,852 Operating (loss) income Processing ( 10,381) ( 5,848) ( 17,682) ( 11,353) IPG ( 4,647) ( 2,920) ( 7,419) ( 4,893) All others ( 5,734) ( 2,928) ( 10,263) ( 6,460) Financial services ( 1,071) ( 1,249) ( 3,443) ( 904) Technology 1,078 589 2,853 1,734 Subtotal: Operating segments ( 10,374) ( 6,508) ( 18,272) ( 10,523) Corporate/Eliminations ( 4,831) ( 3,912) ( 7,708) ( 6,333) Total ( 15,205) ( 10,420) ( 25,980) ( 16,856) Depreciation and amortization Processing 707 847 1,411 1,670 Financial services 116 216 252 434 Technology 163 2 165 168 Subtotal: Operating segments 986 1,065 1,828 2,272 Corporate/Eliminations 88 109 169 226 Total 1,074 1,174 1,997 2,498 Expenditures for long-lived assets Processing 106 246 352 2,314 Financial services 23 52 51 131 Technology 2,894 ( 2) 2,895 - Subtotal: Operating segments 3,023 296 3,298 2,445 Corporate/Eliminations - - - - Total $ 3,023 $ 296 $ 3,298 $ 2,445 (1) Revenues-Processing-All others for the three and six months ended December 31, 2019 have been restated for the error described in Note 1. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Net1 Korea [Member] | |
Schedule Of Major Captions That Have Not Been Separately Presented On Related To Discontinued Operation | Net1 Korea Three months ended Six months ended December 31, 2019 December 31, 2019 Unaudited condensed consolidated statement of operations Discontinued: Revenue $ 33,513 $ 66,331 Cost of goods sold, IT processing, servicing and support 14,765 29,131 Selling, general and administration 11,975 23,284 Depreciation and amortization 3,207 6,648 Operating income 3,566 7,268 Interest income 261 549 Interest expense 92 100 Net income before tax 3,735 7,717 Income tax expense 1,015 2,062 Net income from discontinued operations $ 2,720 $ 5,655 Unaudited condensed consolidated statement of cash flows Discontinued: Total net cash provided by operating activities $ 4,371 $ 14,565 Total net cash used in investing activities $ ( 12,893) $ ( 9,805) |
DNI [Member] | |
Schedule Of Revenues And Expenses After DNI Disposal Transaction | DNI Three months ended Six months ended December 31, 2019 December 31, 2019 Revenue generated from transactions with DNI $ - $ - Expenses incurred related to transactions with DNI $ 333 $ 2,607 |
Basis Of Presentation And Sum_4
Basis Of Presentation And Summary Of Significant Accounting Policies (Impact Of Restatement On Condensed Consolidated Statement Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Revenue | $ 32,305 | $ 35,136 | $ 38,918 | [1] | $ 67,441 | $ 85,134 | [1] |
Cost of goods sold, IT processing, servicing and support | $ 24,339 | 26,460 | 26,746 | [1] | $ 50,799 | 57,452 | [1] |
As Reported [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Revenue | 37,113 | 40,567 | 88,505 | ||||
Cost of goods sold, IT processing, servicing and support | 28,437 | 28,395 | 60,823 | ||||
Correction [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Revenue | (1,977) | (1,649) | (3,371) | ||||
Cost of goods sold, IT processing, servicing and support | $ (1,977) | $ (1,649) | $ (3,371) | ||||
[1] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Basis Of Presentation And Sum_5
Basis Of Presentation And Summary Of Significant Accounting Policies (Impact Of Restatement On Affected Lines In Processing And Total Columns) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ 32,305 | $ 35,136 | $ 38,918 | $ 67,441 | $ 85,134 |
Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 18,812 | 21,518 | 22,847 | 40,330 | 48,940 |
South Africa [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 31,427 | 33,580 | 38,068 | 65,007 | 83,085 |
South Africa [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 17,934 | 19,962 | 21,997 | 37,896 | 46,891 |
Rest Of World [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 878 | 1,556 | 850 | 2,434 | 2,049 |
Rest Of World [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 878 | 1,556 | 850 | 2,049 | |
Processing Fees [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 15,330 | 16,929 | 16,236 | 32,259 | 31,679 |
Processing Fees [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 14,755 | 16,330 | 14,938 | 31,085 | 29,132 |
Processing Fees [Member] | South Africa [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 14,452 | 15,373 | 15,386 | 29,825 | 29,630 |
Processing Fees [Member] | South Africa [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 13,877 | 14,774 | 14,088 | 28,651 | 27,083 |
Processing Fees [Member] | Rest Of World [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 878 | 1,556 | 850 | 2,434 | 2,049 |
Processing Fees [Member] | Rest Of World [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ 878 | 1,556 | 850 | $ 2,434 | 2,049 |
As Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 37,113 | 40,567 | 88,505 | ||
As Reported [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 23,495 | 24,496 | 52,311 | ||
As Reported [Member] | South Africa [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 35,557 | 39,717 | 86,456 | ||
As Reported [Member] | South Africa [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 21,939 | 23,646 | 50,262 | ||
As Reported [Member] | Processing Fees [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 18,906 | 17,885 | 35,050 | ||
As Reported [Member] | Processing Fees [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 18,307 | 16,587 | 32,503 | ||
As Reported [Member] | Processing Fees [Member] | South Africa [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 17,350 | 17,035 | 33,001 | ||
As Reported [Member] | Processing Fees [Member] | South Africa [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 16,751 | 15,737 | 30,454 | ||
Correction [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Correction [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Correction [Member] | South Africa [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Correction [Member] | South Africa [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Correction [Member] | Processing Fees [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Correction [Member] | Processing Fees [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Correction [Member] | Processing Fees [Member] | South Africa [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Correction [Member] | Processing Fees [Member] | South Africa [Member] | Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ (1,977) | $ (1,649) | $ (3,371) |
Basis Of Presentation And Sum_6
Basis Of Presentation And Summary Of Significant Accounting Policies (Impact Of Restatement On Processing Operating Segment Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ 32,305 | $ 35,136 | $ 38,918 | $ 67,441 | $ 85,134 |
As Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 37,113 | 40,567 | 88,505 | ||
Correction [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Reportable Segment [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 34,308 | 36,982 | 42,180 | 71,290 | 91,852 |
Reportable Segment [Member] | As Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 38,959 | 43,829 | 95,223 | ||
Reportable Segment [Member] | Correction [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Corporate/Eliminations [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,846) | (3,262) | (6,718) | ||
Corporate/Eliminations [Member] | As Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,846) | (3,262) | (6,718) | ||
Corporate/Eliminations [Member] | Correction [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Processing [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 18,812 | 21,518 | 22,847 | 40,330 | 48,940 |
Processing [Member] | As Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 23,495 | 24,496 | 52,311 | ||
Processing [Member] | Correction [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Processing [Member] | Reportable Segment [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ 19,990 | 22,506 | 25,022 | $ 42,496 | 53,317 |
Processing [Member] | Reportable Segment [Member] | As Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | 24,483 | 26,671 | 56,688 | ||
Processing [Member] | Reportable Segment [Member] | Correction [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (1,977) | (1,649) | (3,371) | ||
Processing [Member] | Corporate/Eliminations [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (988) | (2,175) | (4,377) | ||
Processing [Member] | Corporate/Eliminations [Member] | As Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | (988) | (2,175) | (4,377) | ||
Processing [Member] | Corporate/Eliminations [Member] | Correction [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ 0 | $ 0 | $ 0 |
Disposal Of Controlling Inter_3
Disposal Of Controlling Interest In FIHRST (Narrative) (Details) - Dec. 31, 2019 $ in Thousands, R in Millions | USD ($) | ZAR (R) |
FIHRST [Member] | ||
Consideration received | $ 11,749 | R 172.2 |
Disposal Of Controlling Inter_4
Disposal Of Controlling Interest In FIHRST (Impact Of Deconsolidation Of FIHRST And Calculation Of Net Gain Recognized On Deconsolidation) (Details) $ in Thousands, R in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | [1] | Dec. 31, 2019ZAR (R) | ||
Less: carrying value, comprising | $ 0 | $ 0 | $ 0 | |||||||
Settlement assets | 2,814 | 2,814 | 8,014 | |||||||
Settlement liabilities | (2,814) | (2,814) | $ (8,015) | |||||||
Gain recognized on disposal, after tax | $ 0 | $ 2,720 | [2] | $ 0 | $ 5,655 | [2] | ||||
FIHRST [Member] | ||||||||||
Fair value of consideration received | $ 11,749 | 11,749 | 11,749 | R 172.2 | ||||||
Less: carrying value, comprising | 1,870 | 1,870 | 1,870 | |||||||
Cash and cash equivalents | 854 | 854 | 854 | |||||||
Accounts receivable, net | 367 | 367 | 367 | |||||||
Property, plant and equipment, net | 64 | 64 | 64 | |||||||
Goodwill | 599 | 599 | 599 | |||||||
Intangible assets, net | 30 | 30 | 30 | |||||||
Deferred income taxes assets | 42 | 42 | 42 | |||||||
Accounts payable | (7) | (7) | (7) | |||||||
Other payables | (1,437) | (1,437) | (1,437) | |||||||
Income taxes payable | (220) | (220) | (220) | |||||||
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 12) | 1,578 | |||||||||
Settlement assets | 17,406 | 17,406 | 17,406 | |||||||
Settlement liabilities | (17,406) | $ (17,406) | $ (17,406) | |||||||
Gain recognized on disposal, before tax | 9,879 | |||||||||
Taxes related to gain recognized on disposal | 0 | |||||||||
Capital gains tax | 2,418 | |||||||||
Release of valuation allowance related to capital losses previously unutilized | (2,418) | |||||||||
Transaction costs | 136 | |||||||||
Gain recognized on disposal, after tax | $ 9,743 | |||||||||
[1] | Derived from audited financial statements. | |||||||||
[2] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Accounts Receivable, Net And _3
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net (Narrative) (Details) $ in Millions, ₩ in Billions | Oct. 26, 2020USD ($) | Sep. 30, 2020KRW (₩) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Jan. 31, 2020KRW (₩) | Jan. 31, 2020USD ($) | Dec. 31, 2020USD ($) |
DNI [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Proceeds from sale of equity method investments | $ 5.7 | $ 0.3 | |||||
Consideration received | $ 6 | ||||||
Net1 BV [Member] | Foreign Country [Member] | South Korean Tax Authorities [Member] | Net1 Korea [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Potential capital gains taxes withheld from transaction price | ₩ 23.8 | $ 19.8 | |||||
Refund received from taxes withheld | ₩ 23.8 | $ 20.1 |
Accounts Receivable, Net And _4
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net (Schedule Of Accounts Receivable, Net And Other Receivables) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, trade, net | $ 10,288 | $ 8,458 |
Accounts receivable, trade, gross | 10,647 | 8,711 |
Allowance for doubtful accounts receivable, end of period | 359 | 253 |
Beginning of period | 253 | 661 |
Reversed to statement of operations | 0 | (155) |
Charged to statement of operations | 70 | 181 |
Utilized | (11) | (151) |
Deconsolidation | 0 | (178) |
Foreign currency adjustment | 47 | (105) |
Taxes refundable related to sale of Net1 Korea | 0 | 19,796 |
Other receivables | 11,159 | 9,058 |
Total accounts receivable, net and other receivables | 24,447 | 43,068 |
Carbon [Member] | Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan provided | 3,000 | 3,000 |
DNI [Member] | Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan provided | $ 0 | $ 2,756 |
Accounts Receivable, Net And _5
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net (Schedule Of Finance Loans Receivable, Net) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total finance loans receivable, net | $ 21,620 | $ 15,879 | [1] |
Reversed to statement of operations | 0 | (155) | |
Total accounts receivable, net | 21,620 | 15,879 | |
Microlending Finance Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total finance loans receivable, net | 21,620 | 15,879 | |
Receivable, gross | 24,017 | 17,737 | |
Allowance for doubtful finance loans receivable, end of period | 2,397 | 1,858 | |
Beginning of period | 1,858 | 3,199 | |
Reversed to statement of operations | (557) | (492) | |
Charged to statement of operations | 1,105 | 1,211 | |
Utilized | (369) | (1,451) | |
Foreign currency adjustment | 360 | (609) | |
Working Capital Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivable, gross | 0 | 5,800 | |
Allowance for doubtful finance loans receivable, end of period | 0 | 5,800 | |
Beginning of period | 5,800 | 5,800 | |
Utilized | $ (5,800) | $ 0 | |
[1] | Derived from audited financial statements. |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Inventory [Line Items] | ||
Finished goods | $ 20,939 | $ 15,618 |
Airtime Inventory Subject To Sale Restrictions [Member] | ||
Inventory [Line Items] | ||
Finished goods | $ 16,400 |
Inventory (Schedule Of Inventor
Inventory (Schedule Of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Inventory [Abstract] | |||
Finished goods | $ 20,939 | $ 15,618 | |
Finished goods subject to sale restrictions | 0 | 4,242 | |
Inventory | $ 20,939 | $ 19,860 | [1] |
[1] | Derived from audited financial statements. |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | |
Derivatives, Fair Value [Line Items] | |||||
Fair value measurement asset transfers into Level 3 | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair value measurement asset transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Transfers into or out of Level 3 | $ 0 | $ 0 | $ 0 | $ 0 | |
Foreign Exchange Contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Outstanding foreign exchange contracts | 0 | 0 | 0 | ||
Cell C [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Investment amount owned | $ 0 | $ 0 | $ 0 | ||
Equity method investment, percentage of ownership interest | 0.00% | 0.00% | |||
Cell C [Member] | Net1 SA [Member] | Class A [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Investment shares owned | shares | 75,000,000 | 75,000,000 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments (Schedule Of Key Valuation Inputs Used To Measure Fair Value Of Investment In Cell C) (Details) - Cell C [Member] R in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Jun. 30, 2020 | Dec. 31, 2020ZAR (R) | Jun. 30, 2019USD ($) | Jun. 30, 2019ZAR (R) | |
Net adjusted external debt | $ 800 | R 11,200 | $ 900 | R 15,800 | |
Lease liabilities included in net adjusted external debt | 0 | 4,400 | |||
Deferred tax including assessed tax losses | $ 0 | R 0 | $ 167.3 | R 2,900 | |
Weighted Average Cost of Capital (WACC) Rate [Member] | Minimum [Member] | |||||
Investment fair value measurement inputs | 17.00% | 17.00% | |||
Weighted Average Cost of Capital (WACC) Rate [Member] | Maximum [Member] | |||||
Investment fair value measurement inputs | 22.00% | 22.00% | |||
Long Term Growth Rate [Member] | |||||
Investment fair value measurement inputs | 3.00% | 3.00% | |||
Marketability Discount [Member] | |||||
Investment fair value measurement inputs | 10.00% | ||||
Minority Discount [Member] | |||||
Investment fair value measurement inputs | 15.00% |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Schedule Of Impact On Carrying Value Of Cell C Investment) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
1.0% Increase [Member] | Weighted Average Cost of Capital (WACC) Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Sensitivity for fair value of investment, increase (decrease) in valuation based on 2% change | $ 0 |
1.0% Increase [Member] | EBITDA Multiple [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Sensitivity for fair value of investment, increase (decrease) in valuation based on 2% change | 627 |
1% Decrease [Member] | Weighted Average Cost of Capital (WACC) Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Sensitivity for fair value of investment, increase (decrease) in valuation based on 2% change | 1,514 |
1% Decrease [Member] | EBITDA Multiple [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Sensitivity for fair value of investment, increase (decrease) in valuation based on 2% change | $ 0 |
Fair Value Of Financial Instr_6
Fair Value Of Financial Instruments (Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) - Recurring [Member] - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment | $ 0 | $ 0 | ||
Cash, cash equivalents and restricted cash (included in other long term assets) | 593,000 | 490,000 | ||
Fixed maturity investments (included in cash and cash equivalents) | 0 | 4,198,000 | ||
Total assets at fair value | 593,000 | 4,688,000 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment | 0 | 0 | ||
Cash, cash equivalents and restricted cash (included in other long term assets) | 593,000 | 490,000 | ||
Fixed maturity investments (included in cash and cash equivalents) | 0 | 4,198,000 | ||
Total assets at fair value | 593,000 | 4,688,000 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment | 0 | 0 | ||
Cash, cash equivalents and restricted cash (included in other long term assets) | 0 | 0 | ||
Fixed maturity investments (included in cash and cash equivalents) | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment | 0 | 0 | ||
Cash, cash equivalents and restricted cash (included in other long term assets) | 0 | 0 | ||
Fixed maturity investments (included in cash and cash equivalents) | 0 | 0 | ||
Total assets at fair value | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Of Financial Instr_7
Fair Value Of Financial Instruments (Carrying Value Of Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liabilities | ||||
Foreign currency adjustment | $ (790,000) | $ (147,000) | $ (1,676,000) | $ (234,000) |
Recurring [Member] | ||||
Assets | ||||
Beginning balance, Carrying value | 4,688,000 | |||
Ending balance, Carrying value | 593,000 | 593,000 | ||
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | ||||
Assets | ||||
Beginning balance, Carrying value | 0 | 0 | ||
Foreign currency adjustment | 0 | 0 | ||
Ending balance, Carrying value | $ 0 | $ 0 | $ 0 | $ 0 |
Equity-Accounted Investments _3
Equity-Accounted Investments And Other Long-Term Assets (Narrative) (Details) R / shares in Units, $ / shares in Units, R in Billions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Oct. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)Itemshares | Dec. 31, 2019USD ($) | Dec. 31, 2020ZAR (R)R / sharesshares | Nov. 01, 2020$ / shares | Jun. 30, 2019USD ($) | ||
Amount released from accumulated other comprehensive loss | $ 0 | $ 0 | |||||||||
Market value of holding | $ 65,836,000 | [1] | 53,126,000 | 53,126,000 | |||||||
Increase the carrying value in its investment | 15,128,000 | $ 0 | 15,128,000 | $ 0 | |||||||
Allowance for doubtful loans receivable | $ 253,000 | $ 359,000 | $ 359,000 | $ 661,000 | |||||||
Finbond [Member] | |||||||||||
Equity-accounted investments, ownership percentage | 31.00% | 31.00% | 31.00% | 31.00% | |||||||
Investment shares owned | shares | 268,820,933 | 268,820,933 | 268,820,933 | ||||||||
Impairment loss on equity method investment | $ 800,000 | $ 16,800,000 | $ 17,650,000 | ||||||||
Market value of holding | $ 18,200,000,000 | $ 18,200,000,000 | R 266.1 | ||||||||
Share price per share | R / shares | R 0.99 | ||||||||||
Liquidity discount used to calculate a fair value per share | 15.00% | 15.00% | |||||||||
Number of shareholders that own approximately 90% of issued and outstanding shares | Item | 3 | ||||||||||
Percentage of issued and outstanding shares owned by three shareholders | 90.00% | ||||||||||
V2 [Member] | |||||||||||
Equity-accounted investments, ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | |||||||
Equity acquisition amount under purchase agreement | $ 5,000,000 | ||||||||||
Impairment loss on equity method investment | $ 500,000 | 500,000 | |||||||||
Working capital facility | $ 5,000,000 | 1,500,000 | 1,500,000 | ||||||||
Allowance for doubtful loans receivable | $ 500,000 | $ 500,000 | |||||||||
Amount drawn from working capital facility grant | $ 1,000,000 | 500,000 | |||||||||
Cedar Cellular [Member] | 8.625% Notes [Member] | |||||||||||
Equity-accounted investments, ownership percentage | 7.625% | 7.625% | 7.625% | ||||||||
Cell C [Member] | |||||||||||
Equity-accounted investments, ownership percentage | 15.00% | 15.00% | 15.00% | ||||||||
Investment amount owned | 0 | $ 0 | $ 0 | ||||||||
MobiKwik [Member] | |||||||||||
Equity-accounted investments, ownership percentage | 12.00% | 12.00% | 12.00% | ||||||||
Investment amount owned | $ 27,000,000 | $ 42,100,000 | $ 42,100,000 | ||||||||
Share price per share | $ / shares | $ 135.54 | ||||||||||
Increase the carrying value in its investment | $ 15,100,000 | ||||||||||
Net1 SA [Member] | Cell C [Member] | Class A [Member] | |||||||||||
Investment shares owned | shares | 75,000,000 | 75,000,000 | 75,000,000 | ||||||||
[1] | Derived from audited financial statements. |
Equity-Accounted Investments _4
Equity-Accounted Investments And Other Long-Term Assets (Ownership Percentage Of Equity-Accounted Investments) (Details) | Dec. 31, 2020 | Jun. 30, 2020 |
Bank Frick [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 35.00% | 35.00% |
Finbond [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 31.00% | 31.00% |
Carbon Tech Limited ("Carbon"), formerly OneFi Limited [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 25.00% | 25.00% |
Revix [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 25.00% | 25.00% |
SmartSwitch Namibia [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 50.00% | 50.00% |
V2 [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 50.00% | 50.00% |
Walletdoc [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 0.00% | 20.00% |
Equity-Accounted Investments _5
Equity-Accounted Investments And Other Long-Term Assets (Summary Of Movement In Equity-Accounted Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Balance | $ 269,542 | $ 290,213 | [1] | $ 298,041 | $ 290,213 | [1] | $ 317,342 | |||
Equity accounted (loss) earnings | (13) | 0 | [2] | (13) | 0 | [2] | ||||
Balance | 285,261 | 269,542 | 318,473 | 285,261 | 318,473 | |||||
Balance as of, beginning | [1] | 78,486 | 78,486 | |||||||
Loans granted | 1,160 | $ 612 | 1,238 | $ 612 | ||||||
Balance as of, ending | 106,738 | 106,738 | ||||||||
Nonconsolidated Investee or Group of Investees [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Balance | 65,216 | 65,216 | ||||||||
Stock-based compensation | (40) | |||||||||
Comprehensive (loss) income | (18,465) | |||||||||
Other comprehensive income | 1,688 | |||||||||
Equity accounted (loss) earnings | (20,153) | |||||||||
Share of net (loss) income | (1,955) | |||||||||
Impairment | (18,198) | |||||||||
Dividends received | (125) | |||||||||
Disposal of equity-accounted investment | (13) | |||||||||
Foreign currency adjustment | 5,553 | |||||||||
Balance | 52,126 | 52,126 | ||||||||
Balance as of, beginning | 620 | 620 | ||||||||
Loans granted | 1,238 | |||||||||
Allowance for doubtful loans | (738) | |||||||||
Loans repaid | (134) | |||||||||
Foreign currency adjustment | 14 | |||||||||
Balance as of, ending | 1,000 | 1,000 | ||||||||
Bank Frick [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Balance | 29,739 | 29,739 | ||||||||
Stock-based compensation | 0 | |||||||||
Comprehensive (loss) income | 979 | |||||||||
Other comprehensive income | 0 | |||||||||
Equity accounted (loss) earnings | 979 | |||||||||
Share of net (loss) income | 979 | |||||||||
Impairment | 0 | |||||||||
Dividends received | 0 | |||||||||
Disposal of equity-accounted investment | 0 | |||||||||
Foreign currency adjustment | 2,301 | |||||||||
Balance | 33,019 | 33,019 | ||||||||
Balance as of, beginning | 0 | 0 | ||||||||
Loans granted | 0 | |||||||||
Allowance for doubtful loans | 0 | |||||||||
Loans repaid | 0 | |||||||||
Foreign currency adjustment | 0 | |||||||||
Balance as of, ending | 0 | 0 | ||||||||
Finbond [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Balance | 30,876 | 30,876 | ||||||||
Stock-based compensation | (40) | |||||||||
Comprehensive (loss) income | (18,579) | |||||||||
Other comprehensive income | 1,688 | |||||||||
Equity accounted (loss) earnings | (20,267) | |||||||||
Share of net (loss) income | (2,617) | |||||||||
Impairment | (800) | (16,800) | (17,650) | |||||||
Dividends received | 0 | |||||||||
Disposal of equity-accounted investment | 0 | |||||||||
Foreign currency adjustment | 3,178 | |||||||||
Balance | 15,435 | 15,435 | ||||||||
Balance as of, beginning | 0 | 0 | ||||||||
Loans granted | 0 | |||||||||
Allowance for doubtful loans | 0 | |||||||||
Loans repaid | 0 | |||||||||
Foreign currency adjustment | 0 | |||||||||
Balance as of, ending | 0 | 0 | ||||||||
Other [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Balance | 4,601 | 4,601 | ||||||||
Stock-based compensation | 0 | |||||||||
Comprehensive (loss) income | (865) | |||||||||
Other comprehensive income | 0 | |||||||||
Equity accounted (loss) earnings | (865) | |||||||||
Share of net (loss) income | (317) | |||||||||
Impairment | (548) | |||||||||
Dividends received | (125) | |||||||||
Disposal of equity-accounted investment | (13) | |||||||||
Foreign currency adjustment | 74 | |||||||||
Balance | 3,672 | 3,672 | ||||||||
Balance as of, beginning | $ 620 | 620 | ||||||||
Loans granted | 1,238 | |||||||||
Allowance for doubtful loans | (738) | |||||||||
Loans repaid | (134) | |||||||||
Foreign currency adjustment | 14 | |||||||||
Balance as of, ending | $ 1,000 | $ 1,000 | ||||||||
[1] | Derived from audited financial statements. | |||||||||
[2] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Equity-Accounted Investments _6
Equity-Accounted Investments And Other Long-Term Assets (Carrying Amount Of Equity-Accounted Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||
As reported, beginning of period | $ 285,261 | $ 269,542 | $ 290,213 | [1] | $ 318,473 | $ 298,041 | $ 317,342 |
Loans | 106,738 | 78,486 | [1] | ||||
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS' EQUITY | 476,978 | 453,678 | [1] | ||||
Nonconsolidated Investee or Group of Investees [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
As reported, beginning of period | 52,126 | 65,216 | |||||
Loans | 1,000 | 620 | |||||
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS' EQUITY | $ 53,126 | $ 65,836 | |||||
[1] | Derived from audited financial statements. |
Equity-Accounted Investments _7
Equity-Accounted Investments And Other Long-Term Assets (Summary Of Other Long-Term Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 42,121 | $ 26,993 | |
Long-term portion of amount due from DNI related to sale of remaining interest in DNI | 0 | 2,857 | |
Policy holder assets under investment contracts (Note 8) | 593 | 490 | |
Reinsurance assets under insurance contracts (Note 8) | 1,193 | 1,006 | |
Total other long-term assets | 43,907 | 31,346 | [1] |
Cell C [Member] | |||
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 0 | 0 | |
Equity-accounted investments, ownership percentage | 15.00% | ||
MobiKwik [Member] | |||
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 42,121 | 26,993 | |
Equity-accounted investments, ownership percentage | 12.00% | ||
CPS [Member] | |||
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 0 | 0 | |
Equity-accounted investments, ownership percentage | 87.50% | ||
Cedar Cellular [Member] | 8.625% Notes [Member] | |||
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 0 | $ 0 | |
Equity-accounted investments, ownership percentage | 7.625% | ||
Interest rate | 8.625% | ||
[1] | Derived from audited financial statements. |
Equity-Accounted Investments _8
Equity-Accounted Investments And Other Long-Term Assets (Summary Of Unrealized Gain (Loss) On Investments) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Schedule Of Equity And Held To Maturity Investments [Line Items] | ||
Cost basis | $ 26,993 | $ 26,993 |
Unrealized holding gains | 15,128 | 0 |
Unrealized holding losses | 0 | 0 |
Carrying value | 42,121 | 26,993 |
MobiKwik [Member] | ||
Schedule Of Equity And Held To Maturity Investments [Line Items] | ||
Cost basis | 26,993 | 26,993 |
Unrealized holding gains | 15,128 | 0 |
Unrealized holding losses | 0 | 0 |
Carrying value | 42,121 | 26,993 |
Cedar Cellular [Member] | ||
Schedule Of Equity And Held To Maturity Investments [Line Items] | ||
Cost basis | 0 | 0 |
Unrealized holding gains | 0 | 0 |
Unrealized holding losses | 0 | 0 |
Carrying value | 0 | 0 |
CPS [Member] | ||
Schedule Of Equity And Held To Maturity Investments [Line Items] | ||
Cost basis | 0 | 0 |
Unrealized holding gains | 0 | 0 |
Unrealized holding losses | 0 | 0 |
Carrying value | $ 0 | $ 0 |
Equity-Accounted Investments _9
Equity-Accounted Investments And Other Long-Term Assets (Summary Of Contractual Maturity Of Investment) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Equity-Accounted Investments And Other Long-Term Assets [Abstract] | |
Due in one year or less, Cost basis | $ 0 |
Due in one year through five, Cost basis | 0 |
Due after ten years, Cost basis | 0 |
Due in five years through ten years, Cost basis | 0 |
Total, Cost basis | 0 |
Due in one year or less, Estimated fair value | 0 |
Estimated fair value, Due in one year through five years | 0 |
Due in five years through ten years, Estimated fair value | 0 |
Due after ten years, Estimated fair value | 0 |
Total. Estimated fair value | $ 0 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets [Line Items] | ||||
Amortization expense | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets, Net (Summary Of Movement In Carrying Value Of Goodwill) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2020 | |||
Gross value, Beginning Balance | $ 63,194 | |||
Gross value, Foreign currency adjustment | 5,490 | |||
Gross value, Ending Balance | 68,684 | |||
Accumulated impairment, Beginning Balance | (39,025) | |||
Accumulated impairment, Foreign currency adjustment | (1,204) | |||
Accumulated impairment, Ending Balance | (40,229) | |||
Carrying value, Beginning Balance | [1] | 24,169 | ||
Carrying value, Foreign currency adjustment | 4,286 | |||
Carrying value, Ending Balance | $ 24,169 | [1] | $ 28,455 | |
[1] | Derived from audited financial statements. |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets, Net (Goodwill Allocated To Reportable Segments) (Details) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020USD ($) | ||
Goodwill [Line Items] | ||
Carrying value, Beginning Balance | $ 24,169 | [1] |
Carrying value, Foreign currency adjustment | 4,286 | |
Carrying value, Ending Balance | 28,455 | |
Processing [Member] | ||
Goodwill [Line Items] | ||
Carrying value, Beginning Balance | 9,989 | |
Carrying value, Foreign currency adjustment | 1,701 | |
Carrying value, Ending Balance | 11,690 | |
Financial Services [Member] | ||
Goodwill [Line Items] | ||
Carrying value, Beginning Balance | 0 | |
Carrying value, Foreign currency adjustment | 0 | |
Carrying value, Ending Balance | 0 | |
Technology [Member] | ||
Goodwill [Line Items] | ||
Carrying value, Beginning Balance | 14,180 | |
Carrying value, Foreign currency adjustment | 2,585 | |
Carrying value, Ending Balance | $ 16,765 | |
[1] | Derived from audited financial statements. |
Goodwill And Intangible Asset_6
Goodwill And Intangible Assets, Net (Carrying Value And Accumulated Amortization Of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross carrying value | $ 30,458 | $ 27,937 | |
Accumulated amortization | (29,922) | (27,325) | |
Total future estimated amortization expense | 536 | 612 | |
Indefinite-lived intangible assets | 0 | 0 | |
Total intangible assets, Net carrying value | 536 | 612 | [1] |
Financial Institution License [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 0 | 0 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross carrying value | 20,620 | 19,064 | |
Accumulated amortization | (20,467) | (18,806) | |
Total future estimated amortization expense | 153 | 258 | |
Software And Unpatented Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross carrying value | 4,190 | 3,931 | |
Accumulated amortization | (4,190) | (3,931) | |
Total future estimated amortization expense | 0 | 0 | |
FTS Patent [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross carrying value | 2,614 | 2,211 | |
Accumulated amortization | (2,614) | (2,211) | |
Total future estimated amortization expense | 0 | 0 | |
Trademarks And Brands [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross carrying value | 3,034 | 2,731 | |
Accumulated amortization | (2,651) | (2,377) | |
Total future estimated amortization expense | $ 383 | $ 354 | |
[1] | Derived from audited financial statements. |
Goodwill And Intangible Asset_7
Goodwill And Intangible Assets, Net (Future Estimated Annual Amortization Expense) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill And Intangible Assets, Net [Abstract] | |
Fiscal 2021 | $ 376 |
Fiscal 2022 | 70 |
Fiscal 2023 | 70 |
Fiscal 2024 | 70 |
Fiscal 2025 | 69 |
Thereafter | 70 |
Total future estimated amortization expense | $ 725 |
Assets And Policyholder Liabi_3
Assets And Policyholder Liabilities Under Insurance And Investment Contracts (Summary Of Movement In Reinsurance Assets And Policyholder Liabilities Under Insurance Contracts) (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($) | |
Assets And Policyholder Liabilities Under Insurance And Investment Contracts [Abstract] | |
Reinsurance assets, Beginning Balance | $ 1,006 |
Reinsurance assets, Increase in policyholder benefits under insurance contracts | 220 |
Reinsurance assets, Claims and policyholders' benefits under insurance contracts | (216) |
Reinsurance assets, Foreign currency adjustment | 183 |
Reinsurance assets, Ending Balance | 1,193 |
Insurance contracts, Beginning Balance | (1,370) |
Insurance contracts, Increase in policyholder benefits under insurance contracts | 3,721 |
Insurance contracts, Claims and policyholders' benefits under insurance contracts | 3,729 |
Insurance contracts, Foreign currency adjustment | (249) |
Insurance contracts, Ending Balance | $ (1,627) |
Assets And Policyholder Liabi_4
Assets And Policyholder Liabilities Under Insurance And Investment Contracts (Summary Of Movement In Assets And Policyholder Liabilities Under Investment Contracts) (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($) | |
Assets And Policyholder Liabilities Under Insurance And Investment Contracts [Abstract] | |
Assets, Beginning Balance | $ 490 |
Assets, Increase in policyholder benefits under investment contracts | 13 |
Assets, Foreign currency adjustment | 90 |
Assets, Ending Balance | 593 |
Investment contracts, Beginning Balance | (490) |
Investment contracts, Increase in policy holder benefits under investment contracts | (13) |
Investment contracts, Foreign currency adjustment | (90) |
Investment contracts, Ending Balance | $ (593) |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) $ in Thousands, R in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020ZAR (R) | Nov. 02, 2020ZAR (R) | Nov. 01, 2020ZAR (R) | Jun. 30, 2020USD ($) | Jun. 30, 2020ZAR (R) |
Short-term Debt [Line Items] | ||||||
Short-term facility available | $ 113,162 | |||||
Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 98,904 | |||||
Overdraft Facility [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 3,410 | |||||
Indirect And Derivative Facilities [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 10,848 | |||||
Nedbank Limited [Member] | Overdraft Facility [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 20,500 | R 300 | ||||
Nedbank Limited [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 17,100 | 250 | ||||
Nedbank Limited [Member] | Overdraft Facility [Member] | General Banking Facility [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 3,400 | 50 | ||||
Nedbank Limited [Member] | Indirect And Derivative Facilities [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 10,800 | 159 | ||||
Nedbank Limited [Member] | South Africa [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Aggregate amount of short-term borrowing | 31,300 | R 459 | ||||
Nedbank Limited [Member] | South Africa [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 17,052 | |||||
Nedbank Limited [Member] | South Africa [Member] | Overdraft Facility [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 3,410 | |||||
Nedbank Limited [Member] | South Africa [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | 31,310 | |||||
Nedbank Limited [Member] | South Africa [Member] | Indirect And Derivative Facilities [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term facility available | $ 10,848 | R 159 | R 150 | $ 150,000 | R 159 |
Borrowings (Summary Of Short-Te
Borrowings (Summary Of Short-Term Credit Facilities) (Details) $ in Thousands, R in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020ZAR (R) | Dec. 31, 2019USD ($) | Dec. 31, 2020ZAR (R) | Nov. 02, 2020ZAR (R) | Nov. 01, 2020ZAR (R) | Jun. 30, 2020USD ($) | Jun. 30, 2020ZAR (R) | |
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | $ 113,162 | $ 113,162 | ||||||||
Utilized | 137,333 | $ 207,876 | 206,479 | $ 391,550 | ||||||
Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 98,904 | 98,904 | ||||||||
Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 3,410 | 3,410 | ||||||||
Balance as of June 30, 2019 | 14,814 | |||||||||
Utilized | 206,479 | |||||||||
Repaid | (165,108) | |||||||||
Foreign currency adjustment | 4,618 | |||||||||
Balance as of September 30, 2019 | 60,803 | 60,803 | ||||||||
Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 60,803 | 60,803 | ||||||||
Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 10,848 | 10,848 | ||||||||
Balance as of June 30, 2019 | 5,398 | |||||||||
Foreign currency adjustment | 1,455 | |||||||||
Balance as of September 30, 2019 | 10,679 | 10,679 | ||||||||
Nedbank Limited [Member] | Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 20,500 | 20,500 | R 300 | |||||||
Nedbank Limited [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 17,100 | 17,100 | 250 | |||||||
Nedbank Limited [Member] | Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 10,800 | 10,800 | R 159 | |||||||
South Africa [Member] | Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Utilized | 3,826 | |||||||||
South Africa [Member] | Amended July 2017 [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | $ 53,734 | $ 53,734 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Prime Rate [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt instrument, interest rate | 5.85% | 5.85% | 5.85% | |||||||
Percentage used to calculate interest rate on short-term facilities | 1.15% | 1.15% | 1.15% | |||||||
South Africa [Member] | Nedbank Limited [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | $ 17,052 | $ 17,052 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 3,410 | 3,410 | ||||||||
Balance as of June 30, 2019 | 58 | |||||||||
Utilized | 16,551 | |||||||||
Repaid | (9,438) | |||||||||
Foreign currency adjustment | (102) | |||||||||
Balance as of September 30, 2019 | 7,069 | 7,069 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 31,310 | 31,310 | ||||||||
Balance as of September 30, 2019 | 7,069 | 7,069 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 10,848 | 10,848 | R 159 | R 150 | $ 150,000 | R 159 | ||||
Balance as of June 30, 2019 | 5,398 | |||||||||
Utilized | 3,826 | |||||||||
Foreign currency adjustment | 1,455 | |||||||||
Balance as of September 30, 2019 | 10,679 | 10,679 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Indirect And Derivative Facilities [Member] | Nedbank Short-Term Credit Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of June 30, 2019 | 5,400 | R 93.6 | ||||||||
Balance as of September 30, 2019 | 10,700 | 10,700 | R 156.6 | |||||||
South Africa [Member] | RMB [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | $ 81,852 | $ 81,852 | ||||||||
South Africa [Member] | RMB [Member] | Prime Rate [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt instrument, interest rate | 7.00% | 7.00% | 7.00% | |||||||
South Africa [Member] | RMB [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | $ 81,852 | $ 81,852 | ||||||||
South Africa [Member] | RMB [Member] | Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 0 | 0 | ||||||||
Balance as of June 30, 2019 | 14,756 | |||||||||
Utilized | 189,928 | |||||||||
Repaid | (155,670) | |||||||||
Foreign currency adjustment | 4,720 | |||||||||
Balance as of September 30, 2019 | 53,734 | 53,734 | ||||||||
South Africa [Member] | RMB [Member] | Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 0 | 0 | ||||||||
Balance as of June 30, 2019 | 0 | |||||||||
Utilized | 0 | |||||||||
Foreign currency adjustment | 0 | |||||||||
Balance as of September 30, 2019 | $ 0 | $ 0 |
Other Payables (Schedule Of Oth
Other Payables (Schedule Of Other Payables) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Other Payables [Abstract] | |||
Accruals | $ 7,073 | $ 6,045 | |
Provisions | 3,048 | 4,926 | |
Other | 13,140 | 11,329 | |
Value-added tax payable | 215 | 129 | |
Payroll-related payables | 1,039 | 887 | |
Participating merchants' settlement obligation | 551 | 463 | |
Other payables, total | $ 25,066 | $ 23,779 | [1] |
[1] | Derived from audited financial statements. |
Capital Structure (Schedule Of
Capital Structure (Schedule Of Number Of Shares, Net Of Treasury) (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Capital Structure [Abstract] | ||
Number of shares, net of treasury: Statement of changes in equity | 56,614,559 | 56,568,425 |
Non-vested equity shares that have not vested as of end of period | 294,000 | 583,908 |
Number of shares, net of treasury excluding non-vested equity shares that have not vested | 56,320,559 | 55,984,517 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification from accumulated other comprehensive (loss) income | $ 0 | $ 0 | ||
FIHRST [Member] | ||||
Reclassification from accumulated other comprehensive (loss) income | $ 1,600,000 | $ 1,600,000 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Change In Accumulated Other Comprehensive (Loss) Income Per Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ (161,245) | $ (211,179) | $ (169,075) | [1] | $ (195,812) |
Movement in foreign currency translation reserve related to equity-accounted investment | 0 | (491) | 1,688 | 2,227 | |
Movement in foreign currency translation reserve | 20,003 | 19,114 | 26,145 | 1,029 | |
Ending Balance | (141,242) | (190,978) | (141,242) | (190,978) | |
FIHRST [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Release of foreign currency translation reserve related to disposal (Note 2) | 1,578 | 1,578 | |||
Accumulated Foreign Currency Translation Reserve [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (161,245) | (211,179) | (169,075) | (195,812) | |
Movement in foreign currency translation reserve related to equity-accounted investment | (491) | 1,688 | 2,227 | ||
Movement in foreign currency translation reserve | 20,003 | 19,114 | 26,145 | 1,029 | |
Ending Balance | $ (141,242) | (190,978) | $ (141,242) | (190,978) | |
Accumulated Foreign Currency Translation Reserve [Member] | FIHRST [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Release of foreign currency translation reserve related to disposal (Note 2) | $ 1,578 | $ 1,578 | |||
[1] | Derived from audited financial statements. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options awarded | 561,000 | |||||
Forfeitures, Number of shares | 456,033 | |||||
Stock-based compensation charge, net | $ 232 | $ 436 | $ 631 | $ 823 | ||
Deferred tax asset related to stock-based compensation | 40 | 40 | $ 400 | |||
Valuation allowance | $ 40 | $ 40 | $ 400 | |||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercisable stock options | 181,333 | 0 | 337,666 | 170,335 | ||
Options exercise price range, lower limit | $ 3.01 | |||||
Options exercise price range, upper limit | $ 11.23 | |||||
Unrecognized compensation cost | $ 1,300 | $ 1,300 | ||||
Unrecognized compensation cost, expected recognition period, years | 3 years | |||||
Stock Options [Member] | August 2008 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected volatility calculation term | 750 days | |||||
Stock Options [Member] | Former Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares forfeited | 250,034 | |||||
Options exercise price range, lower limit | $ 6.20 | |||||
Options exercise price range, upper limit | $ 11.23 | |||||
Stock Options [Member] | Non-Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options awarded | 150,000 | |||||
Stock Options [Member] | Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options awarded | 560,000 | 561,000 | 560,000 | 561,000 | ||
Forfeitures, Number of shares | 205,999 | 0 | 205,999 | 0 | ||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested number of shares of restricted stock | 311,300 | |||||
Forfeitures, Number of shares | 510,200 | |||||
Stock-based compensation charge, net | $ 200 | $ 600 | $ 800 | |||
Unrecognized compensation cost | $ 700 | $ 700 | ||||
Unrecognized compensation cost, expected recognition period, years | 2 years | |||||
Restricted Stock [Member] | Time-Based Vesting [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested number of shares of restricted stock | 244,500 | |||||
Number of shares forfeited | 510,200 | |||||
Restricted Stock [Member] | Former Chief Executive Officer [Member] | Time-Based Vesting [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares forfeited | 375,200 | |||||
Share-based compensation accelerated vesting numbers | 66,800 | |||||
Restricted Stock [Member] | Former Chief Executive Officer [Member] | Performance And Time-Based Vesting [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares forfeited | 30,000 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summarized Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, Number of shares, Beginning Balance | 1,331,651 | 864,579 | 864,579 | ||
Granted, Number of shares | 561,000 | ||||
Exercised | (5,834) | ||||
Forfeitures, Number of shares | (456,033) | ||||
Outstanding, Number of shares, Ending Balance | 1,425,579 | 1,579,784 | 1,425,579 | 1,331,651 | 864,579 |
Exercisable, Number of Shares | 472,299 | ||||
Vested and expected to vest, Number of shares | 1,579,784 | ||||
Outstanding, Weighted average exercise price, Beginning Balance | $ 5.83 | $ 7.81 | $ 7.81 | ||
Granted, Weighted average exercise price | 3.07 | ||||
Exercised, weighted average exercise price | 3.07 | ||||
Forfeitures, Weighted average exercise price | 7.03 | ||||
Outstanding, Weighted average exercise price, Ending Balance | $ 5.94 | 4.28 | $ 5.94 | $ 5.83 | $ 7.81 |
Exercisable, Weighted average exercise price | 6.37 | ||||
Vested and expected to vest, Weighted average exercise price | $ 4.28 | ||||
Outstanding, Weighted average remaining contractual term (in years) | 7 years 9 months 21 days | 8 years 14 days | 7 years 6 months 21 days | 7 years 18 days | |
Granted, Weighted average remaining contractual term (in years) | 10 years | ||||
Exercisable, Weighted average remaining contractual term (in years) | 7 years 2 months 1 day | ||||
Vested and expected to vest, Weighted average remaining contractual term (in years) | 8 years 14 days | ||||
Vested and expecting to vest, Aggregate intrinsic value | $ 2,104 | ||||
Outstanding, Aggregate intrinsic value, Beginning Balance | 0 | ||||
Granted, Aggregate intrinsic value | $ 676 | $ 676 | |||
Exercised, Aggregate intrinsic value | 21 | ||||
Exercisable, Aggregate intrinsic value | 274 | ||||
Outstanding, Aggregate intrinsic value, Ending Balance | $ 365 | $ 2,104 | $ 365 | $ 0 | |
Outstanding, Weighted average grant date fair value, Beginning Balance | $ 2.01 | $ 2.62 | $ 2.62 | ||
Granted, Weighted average grant date fair value | 1.20 | ||||
Exercised, Weighted average grant date fair value | 0 | ||||
Forfeitures, Weighted average grant date fair value | 2.26 | ||||
Outstanding, Weighted average grant date fair value, Ending Balance | $ 2.07 | $ 1.59 | $ 2.07 | $ 2.01 | $ 2.62 |
August 2020 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, Number of shares | 150,000 | ||||
Granted, Weighted average exercise price | $ 3.50 | ||||
Granted, Weighted average remaining contractual term (in years) | 3 years | ||||
Granted, Aggregate intrinsic value | $ 166 | ||||
Granted, Weighted average grant date fair value | $ 1.11 | ||||
November 2020 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, Number of shares | 560,000 | ||||
Granted, Weighted average exercise price | $ 3.01 | ||||
Granted, Weighted average remaining contractual term (in years) | 10 years | ||||
Granted, Aggregate intrinsic value | $ 691 | ||||
Granted, Weighted average grant date fair value | $ 1.23 |
Stock-Based Compensation (Range
Stock-Based Compensation (Range Of Assumptions Used To Value Options Granted) (Details) - Stock Options [Member] | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 62.00% | 57.00% |
Expected dividends | 0.00% | 0.00% |
Expected life (in years) | 3 years | 3 years |
Risk-free rate | 0.19% | 1.57% |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Activity) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Number of Shares of Restricted Stock | 561,000 | |
Forfeitures, Number of Shares of Restricted Stock | (456,033) | |
Non-vested, Number of Shares of Restricted Stock, Ending Balance | 294,000 | 583,908 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested, Number of Shares of Restricted Stock, Beginning Balance | 1,115,500 | 583,908 |
Vested, Number of Shares of Restricted Stock | (311,300) | |
Forfeitures, Number of Shares of Restricted Stock | (510,200) | |
Non-vested, Number of Shares of Restricted Stock, Ending Balance | 294,000 | 583,908 |
Non-vested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 5,354 | $ 3,410 |
Vested, Weighted Average Grant Date Fair Value | (1,037) | |
Forfeitures, Weighted Average Grant Date Fair Value | (1,766) | |
Non-vested, Weighted Average Grant Date Fair Value, Ending Balance | $ 994 | $ 3,410 |
Restricted Stock [Member] | August 2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested, Number of Shares of Restricted Stock | (244,500) | |
Vested, Weighted Average Grant Date Fair Value | $ (812) | |
Restricted Stock [Member] | September 2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested-Accelerated vesting, Number of Shares of Restricted Stock | (66,800) | |
Vested-Accelerated vesting, Weighted Average Grant Date Fair Value | $ (225) |
Stock-Based Compensation (Recor
Stock-Based Compensation (Recorded Net Stock Compensation Charge) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation charge | $ 246 | $ 436 | $ 928 | $ 823 |
Reversal of stock compensation charge related to stock options and restricted stock forfeited | (14) | 297 | ||
Total | 232 | 436 | 631 | 823 |
Allocated To Selling, General And Administration [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation charge | 246 | 436 | 928 | 823 |
Reversal of stock compensation charge related to stock options and restricted stock forfeited | (14) | 297 | ||
Total | 232 | 436 | 631 | 823 |
Allocated To Cost Of Goods Sold, IT Processing, Servicing And Support [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation charge | 0 | |||
Reversal of stock compensation charge related to stock options and restricted stock forfeited | 0 | |||
Total | $ 0 | $ 0 | $ 0 | $ 0 |
(Loss) Earnings Per Share (Narr
(Loss) Earnings Per Share (Narrative) (Details) - Stock Options [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options outstanding not included in computation of diluted earnings per share | 1,579,784 | 1,425,579 | 1,579,784 | 1,425,579 |
Options exercise price range, lower limit | $ 3.01 | $ 3.07 | $ 3.01 | $ 3.07 |
Options exercise price range, upper limit | $ 11.23 | $ 11.23 | $ 11.23 | $ 11.23 |
(Loss) Earnings Per Share (Inco
(Loss) Earnings Per Share (Income From Continuing Operations And Share Data Used In Basic And Diluted Earnings Per Share Computations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Net loss attributable to Net1 | $ (4,534) | $ (205) | [1] | $ (33,492) | $ (4,597) | [1] |
Undistributed (loss) earnings | $ (4,534) | $ (205) | $ (33,492) | $ (4,597) | ||
Percent allocated to common shareholders (Calculation 1) | 99.00% | 99.00% | 99.00% | 99.00% | ||
Numerator for (loss) earnings per share: basic and diluted | $ (4,508) | $ (202) | $ (33,098) | $ (4,549) | ||
Continuing | (4,508) | (2,894) | (33,098) | (10,146) | ||
Discontinued | $ 0 | $ 2,692 | $ 0 | $ 5,597 | ||
Denominator for basic (loss) earnings per share: weighted-average common shares outstanding | 56,317 | 55,985 | 56,211 | 55,985 | ||
Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assuming conversion | 56,317 | 55,985 | 56,211 | 55,985 | ||
(Loss) Earnings per share: Basic | $ (0.08) | $ 0 | [1] | $ (0.59) | $ (0.08) | [1] |
Continuing | (0.08) | (0.05) | [1] | (0.59) | (0.18) | [1] |
Discontinued | 0 | 0.05 | [1] | 0 | 0.10 | [1] |
(Loss) Earnings per share: Diluted | (0.08) | 0 | [1] | (0.59) | (0.08) | [1] |
Continuing | (0.08) | (0.05) | [1] | (0.59) | (0.18) | [1] |
Discontinued | $ 0 | $ 0.05 | [1] | $ 0 | $ 0.10 | [1] |
Basic weighted-average common shares outstanding (A) | 56,317 | 55,985 | 56,211 | 55,985 | ||
Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) | 56,641 | 56,568 | 56,880 | 56,568 | ||
Continuing [Member] | ||||||
Undistributed (loss) earnings | $ (4,534) | $ (2,925) | $ (33,492) | $ (10,252) | ||
Discontinued [Member] | ||||||
Undistributed (loss) earnings | $ 0 | $ 2,720 | $ 0 | $ 5,655 | ||
[1] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Schedule Of Supplemental Cash Flow Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||||
Cash received from interest | $ 714 | $ 1,042 | $ 1,209 | $ 1,779 |
Cash paid for interest | 636 | 2,293 | 1,544 | 3,107 |
Cash paid for income taxes | $ 765 | $ 2,004 | $ 16,171 | $ 3,887 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Schedule Of Disaggregation Of Cash, Cash Equivalents And Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 206,251 | $ 217,671 | $ 50,719 | |||
Restricted cash | 60,803 | 14,814 | 84,360 | |||
Cash, cash equivalents and restricted cash | 267,054 | $ 215,911 | 232,485 | 135,079 | $ 110,799 | $ 121,511 |
Continuing [Member] | ||||||
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 206,251 | 217,671 | 19,390 | |||
Discontinued [Member] | ||||||
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 0 | $ 0 | $ 31,329 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information (Supplemental Cash Flow Disclosure Related To Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 1,007 | $ 1,108 | $ 1,879 | $ 2,028 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | $ 1,611 | $ 2,260 | $ 1,701 | $ 2,490 |
Revenue Recognition (Revenue Di
Revenue Recognition (Revenue Disaggregated By Major Revenue Streams) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 32,305 | $ 35,136 | $ 38,918 | $ 67,441 | $ 85,134 |
Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 18,812 | 21,518 | 22,847 | 40,330 | 48,940 |
Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 8,895 | 11,317 | 16,415 | 24,532 | |
Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 4,598 | 4,754 | 10,696 | 11,662 | |
Processing Fees [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 15,330 | 16,929 | 16,236 | 32,259 | 31,679 |
Processing Fees [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 14,755 | 16,330 | 14,938 | 31,085 | 29,132 |
Processing Fees [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 575 | 1,298 | 1,174 | 2,547 | |
Processing Fees [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Telecom Products And Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,148 | 6,639 | 7,570 | 15,933 | |
Telecom Products And Services [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,148 | 6,639 | 7,570 | 15,933 | |
Telecom Products And Services [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Telecom Products And Services [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Account Holder Fees [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,273 | 3,103 | 2,456 | 8,363 | |
Account Holder Fees [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Account Holder Fees [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,273 | 3,103 | 2,456 | 8,363 | |
Account Holder Fees [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Lending Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 5,288 | 5,384 | 9,488 | 10,538 | |
Lending Revenue [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Lending Revenue [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 5,288 | 5,384 | 9,488 | 10,538 | |
Lending Revenue [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Products [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 5,081 | 5,042 | 11,615 | 12,176 | |
Technology Products [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 665 | 303 | 1,125 | 543 | |
Technology Products [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 70 | 0 | 70 | 0 | |
Technology Products [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 4,346 | 4,739 | 10,420 | 11,633 | |
Insurance Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,613 | 1,372 | 3,070 | 2,758 | |
Insurance Revenue [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Insurance Revenue [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,613 | 1,372 | 3,070 | 2,758 | |
Insurance Revenue [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 572 | 1,142 | 983 | 3,687 | |
Other [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 244 | 967 | 550 | 3,332 | |
Other [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 76 | 160 | 157 | 326 | |
Other [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 252 | 15 | 276 | 29 | |
South Africa [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 31,427 | 33,580 | 38,068 | 65,007 | 83,085 |
South Africa [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 17,934 | 19,962 | 21,997 | 37,896 | 46,891 |
South Africa [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 8,895 | 11,317 | 16,415 | 24,532 | |
South Africa [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 4,598 | 4,754 | 10,696 | 11,662 | |
South Africa [Member] | Processing Fees [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 14,452 | 15,373 | 15,386 | 29,825 | 29,630 |
South Africa [Member] | Processing Fees [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 13,877 | 14,774 | 14,088 | 28,651 | 27,083 |
South Africa [Member] | Processing Fees [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 575 | 1,298 | 1,174 | 2,547 | |
South Africa [Member] | Processing Fees [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Rest Of World [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 878 | 1,556 | 850 | 2,434 | 2,049 |
Rest Of World [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 878 | 1,556 | 850 | 2,049 | |
Rest Of World [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Rest Of World [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Rest Of World [Member] | Processing Fees [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 878 | 1,556 | 850 | 2,434 | 2,049 |
Rest Of World [Member] | Processing Fees [Member] | Processing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 878 | $ 1,556 | 850 | 2,434 | 2,049 |
Rest Of World [Member] | Processing Fees [Member] | Financial Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Rest Of World [Member] | Processing Fees [Member] | Technology [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease expense | $ 0.9 | $ 0.9 | ||
Short-term Lease [Member] | ||||
Operating lease expense | $ 0.9 | $ 1.3 | $ 2 | $ 2.7 |
Minimum [Member] | ||||
Operating leases have a remaining lease term | 1 year | |||
Maximum [Member] | ||||
Operating leases have a remaining lease term | 5 years |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Disclosure Related To Right-of-use Assets And Operating Leases Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Leases [Abstract] | |||
Operating lease right-of-use asset | $ 5,112 | $ 5,395 | [1] |
Weighted average remaining lease term (years) | 2 years 9 months 29 days | 3 years 11 months 8 days | |
Weighted average discount rate | 10.00% | 9.00% | |
[1] | Derived from audited financial statements. |
Leases (Maturities Of Operating
Leases (Maturities Of Operating Lease Liability) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 (for December 31, 2020 excluding Six months to December 31, 2020) | $ 1,719 |
2022 | 2,401 |
2023 | 1,071 |
2024 | 573 |
2025 | 195 |
Thereafter | 0 |
Total undiscounted operating lease liabilities | 5,959 |
Less imputed interest | 659 |
Total operating lease liabilities, included in | 5,300 |
Operating lease liability - current | 2,585 |
Operating lease liability - long-term | $ 2,715 |
Leases (Maturities Of Operati_2
Leases (Maturities Of Operating Lease Liability) (Alternate) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due | $ 5,959 |
Total operating lease liabilities, included in | 5,300 |
Less imputed interest | $ 659 |
Operating Segments (Reconciliat
Operating Segments (Reconciliation Of Reportable Segments Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | $ 32,305 | $ 35,136 | $ 38,918 | $ 67,441 | $ 85,134 |
Processing [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 18,812 | 22,847 | 40,330 | 48,940 | |
Financial Services [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 8,895 | 11,317 | 16,415 | 24,532 | |
Technology [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 4,598 | 4,754 | 10,696 | 11,662 | |
Reportable Segment [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 34,308 | $ 36,982 | 42,180 | 71,290 | 91,852 |
Reportable Segment [Member] | Processing [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 19,990 | 25,022 | 42,496 | 53,317 | |
Reportable Segment [Member] | Financial Services [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 9,709 | 12,268 | 17,974 | 26,436 | |
Reportable Segment [Member] | Technology [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 4,609 | 4,890 | 10,820 | 12,099 | |
Inter-Segment [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | (2,003) | (3,262) | (3,849) | (6,718) | |
Inter-Segment [Member] | Processing [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | (1,178) | (2,175) | (2,166) | (4,377) | |
Inter-Segment [Member] | Financial Services [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | (814) | (951) | (1,559) | (1,904) | |
Inter-Segment [Member] | Technology [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | $ (11) | $ (136) | $ (124) | $ (437) |
Operating Segments (Reconcili_2
Operating Segments (Reconciliation Of Reportable Segments Measure Of Profit Or Loss To Loss Before Income Tax (Benefit) Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating income | $ (15,205) | $ (10,420) | [1] | $ (25,980) | $ (16,856) | [1] |
Change in fair value of equity securities | 15,128 | 0 | 15,128 | 0 | ||
Loss on disposal of equity-accounted investment | (13) | 0 | [1] | (13) | 0 | [1] |
Interest income | 717 | 1,082 | [1] | 1,328 | 1,445 | [1] |
Interest expense | (677) | (3,129) | [1] | (1,424) | (4,476) | [1] |
Income (Loss) before income taxes | (50) | (2,724) | [1] | (10,961) | (10,144) | [1] |
FIHRST [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Gain on disposal of FIHRST | 0 | 9,743 | 0 | 9,743 | ||
Reportable Segment [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating income | (10,374) | (6,508) | (18,272) | (10,523) | ||
Corporate/Eliminations [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating income | $ (4,831) | $ (3,912) | $ (7,708) | $ (6,333) | ||
[1] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Operating Segments (Summary Of
Operating Segments (Summary Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 32,305 | $ 35,136 | $ 38,918 | $ 67,441 | $ 85,134 | ||
Operating (loss) income | (15,205) | (10,420) | [1] | (25,980) | (16,856) | [1] | |
Depreciation and amortization | 1,074 | 1,174 | [1] | 1,997 | 2,498 | [1] | |
Expenditures for long-lived assets | 3,023 | 296 | 3,298 | 2,445 | |||
Reportable Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 34,308 | 36,982 | 42,180 | 71,290 | 91,852 | ||
Operating (loss) income | (10,374) | (6,508) | (18,272) | (10,523) | |||
Depreciation and amortization | 986 | 1,065 | 1,828 | 2,272 | |||
Expenditures for long-lived assets | 3,023 | 296 | 3,298 | 2,445 | |||
Corporate/Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (1,846) | (3,262) | (6,718) | ||||
Operating (loss) income | (4,831) | (3,912) | (7,708) | (6,333) | |||
Depreciation and amortization | (88) | (109) | (169) | (226) | |||
Expenditures for long-lived assets | 0 | 0 | 0 | 0 | |||
Processing [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 18,812 | 21,518 | 22,847 | 40,330 | 48,940 | ||
Processing [Member] | Reportable Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 19,990 | 22,506 | 25,022 | 42,496 | 53,317 | ||
Operating (loss) income | (10,381) | (5,848) | (17,682) | (11,353) | |||
Depreciation and amortization | 707 | 847 | 1,411 | 1,670 | |||
Expenditures for long-lived assets | 106 | 246 | 352 | 2,314 | |||
Processing [Member] | Reportable Segment [Member] | IPG [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 19,512 | 24,590 | 40,809 | 52,092 | |||
Operating (loss) income | (4,647) | (2,920) | (7,419) | (4,893) | |||
Processing [Member] | Reportable Segment [Member] | All Others | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 478 | 432 | 1,687 | 1,225 | |||
Operating (loss) income | (5,734) | (2,928) | (10,263) | (6,460) | |||
Processing [Member] | Corporate/Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ (988) | (2,175) | (4,377) | ||||
Financial Services [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 8,895 | 11,317 | 16,415 | 24,532 | |||
Financial Services [Member] | Reportable Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 9,709 | 12,268 | 17,974 | 26,436 | |||
Operating (loss) income | (1,071) | (1,249) | (3,443) | (904) | |||
Depreciation and amortization | 116 | 216 | 252 | 434 | |||
Expenditures for long-lived assets | 23 | 52 | 51 | 131 | |||
Technology [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 4,598 | 4,754 | 10,696 | 11,662 | |||
Technology [Member] | Reportable Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 4,609 | 4,890 | 10,820 | 12,099 | |||
Operating (loss) income | 1,078 | 589 | 2,853 | 1,734 | |||
Depreciation and amortization | 163 | 2 | 165 | 168 | |||
Expenditures for long-lived assets | $ 2,894 | $ (2) | $ 2,895 | $ 0 | |||
[1] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) R in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020ZAR (R) |
Payment Guarantee [Member] | Minimum [Member] | ||
Guarantor Obligations [Line Items] | ||
Interest rate | 0.40% | 0.40% |
Payment Guarantee [Member] | Maximum [Member] | ||
Guarantor Obligations [Line Items] | ||
Interest rate | 1.94% | 1.94% |
Nedbank [Member] | Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee amount | $ 10.7 | R 156.6 |
Maximum payment amount under guarantee | $ 10.7 | R 156.6 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
DNI [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash dividend received from equity method investment | $ 0.4 | $ 1.1 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Major Captions That Have Not Been Separately Presented On Related To Discontinued Operation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Net income from discontinued operations | $ 0 | $ 2,720 | [1] | $ 0 | $ 5,655 | [1] |
Net1 Korea [Member] | Discontinued [Member] | ||||||
Revenue | 33,513 | 66,331 | ||||
Cost of goods sold, IT processing, servicing and support | 14,765 | 29,131 | ||||
Selling, general and administration | 11,975 | 23,284 | ||||
Depreciation and amortization | 3,207 | 6,648 | ||||
Operating income | 3,566 | 7,268 | ||||
Interest income | 261 | 549 | ||||
Interest expense | 92 | 100 | ||||
Net income before tax | 3,735 | 7,717 | ||||
Income tax expense | 1,015 | 2,062 | ||||
Net income from discontinued operations | 2,720 | 5,655 | ||||
Total net cash provided by operating activities | 4,371 | 14,565 | ||||
Total net cash used in investing activities | $ (12,893) | $ (9,805) | ||||
[1] | Certain amounts have been restated to correct the misstatement discussed in Note 1. |
Discontinued Operations (Sche_2
Discontinued Operations (Schedule Of Revenues And Expenses After DNI Disposal Transaction) (Details) - DNI [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Revenue generated from transactions with DNI | $ 0 | $ 0 |
Expenses incurred related to transactions with DNI | $ 333 | $ 2,607 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | [1] |
Related Party Transaction [Line Items] | ||||||||
Disgorgement proceeds recorded as an increase to additional paid-in capital | $ 98 | |||||||
Taxes payable | $ 984 | $ 16,157 | ||||||
Value Capital Partners (Pty) Ltd [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Disgorgement proceeds recorded as an increase to additional paid-in capital | $ 100 | |||||||
Tax on capital contribution from shareholders | $ 20 | |||||||
Disgorgement proceeds received from related party | $ 120 | $ 20 | ||||||
Value Capital Partners (Pty) Ltd [Member] | Forecast [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Taxes payable | $ 20 | |||||||
[1] | Derived from audited financial statements. |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] - Frick Family Foundation (KFS) [Member] - Bank Frick [Member] $ in Millions | Feb. 03, 2021USD ($) |
Subsequent Event [Line Items] | |
Percentage of equity ownership interest disposed | 35.00% |
Consideration amount from disposal of discontinued operation | $ 30 |
Amount payable to terminate all existing arrangements and settle all liabilities | 3.6 |
Receivable Within Two Days From Signing [Member] | |
Subsequent Event [Line Items] | |
Consideration amount from disposal of discontinued operation | 15 |
Consideration amount from disposal of discontinued operation including liabilities | 18.6 |
Receivable On October 30, 2021 [Member] | |
Subsequent Event [Line Items] | |
Consideration amount from disposal of discontinued operation | 7.5 |
Receivable On July 15, 2022 [Member] | |
Subsequent Event [Line Items] | |
Consideration amount from disposal of discontinued operation | $ 3.9 |