Lesaka Technologies Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Lesaka Technologies Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing financial activities and segment performance.</b>

AI Summary

LESAKA TECHNOLOGIES INC (LSAK) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Lesaka Technologies Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the third quarter of the fiscal year. The company was formerly known as NET 1 UEPS TECHNOLOGIES INC. The filing includes data related to various financial instruments and segments, including Consumer Segment, Merchant Segment, and Processing Fees. Key dates mentioned include March 31, 2024, and May 8, 2024, for reporting and filing.

Why It Matters

For investors and stakeholders tracking LESAKA TECHNOLOGIES INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for Lesaka Technologies Inc. during the third quarter of its fiscal year. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential risks and opportunities.

Risk Assessment

Risk Level: medium — LESAKA TECHNOLOGIES INC shows moderate risk based on this filing. The company's financial performance is subject to various market and operational risks inherent in the financial services sector, as indicated by the detailed segment and instrument data presented in the filing.

Analyst Insight

Review the detailed segment revenues and growth rates to identify key drivers of financial performance and potential areas for investment or concern.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-08 — Filing Date (Filed as of date)
• 0630 — Fiscal Year End (Fiscal year end)
• 000-31203 — SEC File Number (SEC file number)

Key Players & Entities

• LESAKA TECHNOLOGIES INC (company) — Filer name
• NET 1 UEPS TECHNOLOGIES INC (company) — Former company name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-08 (date) — Filed as of date
• 6099 (industry_code) — Standard Industrial Classification
• 27 11 343 2000 (phone_number) — Business phone number
• Finbond Group Limited (company) — Investment entity
• CashPaymaster Services Proprietary Limited (company) — Subsidiary/related entity

FAQ

Risk Factors

• Financial Instruments and Facilities [medium — financial]: The filing details various financial instruments, including bank overdrafts, revolving credit facilities, and asset-backed facilities, indicating potential leverage and credit risk.
• Market and Economic Conditions [medium — market]: The company operates in markets subject to economic fluctuations and regulatory changes, impacting its revenue streams and profitability.
• Operational Risks [medium — operational]: Operational risks related to technology, processing, and customer service are inherent in the company's business model.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.

Key Financial Figures

• $0.001 — ich registered Common stock, par value $0.001 per share LSAK NASDAQ Global Select

Filing Documents

• form10q.htm (10-Q) — 3249KB
• form10qp49i0.gif (GRAPHIC) — 16KB
• ex311.htm (EX-31.1) — 23KB
• ex312.htm (EX-31.2) — 23KB
• ex32.htm (EX-32) — 10KB
• ex1047.htm (EX-10.47) — 83KB
• 0001562762-24-000130.txt (&nbsp;) — 17624KB
• lsak-20240331.xsd (EX-101.SCH) — 166KB
• lsak-20240331_cal.xml (EX-101.CAL) — 103KB
• lsak-20240331_def.xml (EX-101.DEF) — 826KB
• lsak-20240331_lab.xml (EX-101.LAB) — 1548KB
• lsak-20240331_pre.xml (EX-101.PRE) — 1076KB
• form10q_htm.xml (XML) — 3219KB

Financial Statements

Financial Statements Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and June 30, 2023 2 Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended March 31, 2024 and 2023 3 Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended March 31, 2024 and 2023 4 Unaudited Condensed Consolidated Statement of Changes in Equity for the three and nine months ended March 31, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Cash Flows for the three and nine months ended March 31, 2024 and 2023 7 Notes to Unaudited Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 62 Item 4.

Controls and Procedures

Controls and Procedures 63

OTHER INFORMATION

Part II. OTHER INFORMATION Item 1A.

Risk Factors

Risk Factors 64 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 65 Item 5. Other Information 65 Item 6. Exhibits 66

Signatures

Signatures 67 EXHIBIT 46 EXHIBIT 47 2

Financial information

Part I. Financial information

Financial Statements

Item 1. Financial Statements LESAKA TECHNOLOGIES, INC. Unaudited Condensed Consolidated Balance Sheets March 31, June 30, 2024 2023 (A) (In thousands, except share data) ASSETS CURRENT ASSETS Cash and cash equivalents $ 55,223 $ 35,499 Restricted cash related to ATM funding and credit facilities (Note 8) 4,383 23,133 Accounts receivable, net and other receivables (Note 2) 34,331 25,665 Finance loans receivable, net (Note 2) 40,754 36,744 Inventory (Note 3) 21,789 27,337 Total current assets before settlement assets 156,480 148,378 Settlement assets 29,300 15,258 Total current assets 185,780 163,636 PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of - March: $ 40,276 June: $ 36,563 27,918 27,447 OPERATING LEASE RIGHT-OF-USE (Note 16) 5,533 4,731 EQUITY-ACCOUNTED INVESTMENTS (Note 5) 159 3,171 GOODWILL (Note 6) 133,473 133,743 INTANGIBLE ASSETS, NET (Note 6) 110,798 121,597 DEFERRED INCOME TAXES 9,793 10,315 OTHER LONG-TERM ASSETS, including reinsurance assets (Note 5 and 7) 78,035 77,594 TOTAL ASSETS 551,489 542,234 LIABILITIES CURRENT LIABILITIES Short-term credit facilities for ATM funding (Note 8) 4,272 23,021 Short-term credit facilities (Note 8) 9,006 9,025 Accounts payable 19,018 12,380 Other payables (Note 9) 49,470 36,297 Operating lease liability - current (Note 16) 1,763 1,747 Current portion of long-term borrowings (Note 8) 3,269 3,663 Income taxes payable 1,565 1,005 Total current liabilities before settlement obligations 88,363 87,138 Settlement obligations 27,820 14,774 Total current liabilities 116,183 101,912 DEFERRED INCOME TAXES 43,878 46,840 OPERATING LEASE LIABILITY - LONG TERM (Note 16) 3,912 3,138 LONG-TERM BORROWINGS (Note 8) 132,398 129,455 OTHER LONG-TERM LIABILITIES, including insurance policy liabilities (Note 7) 2,602 1,982 TOTAL LIABILITIES 298,973 283,327 REDEEMABLE COMMON STOCK 79,429 79,429 EQUITY COMMON ST

financial statements and related disclosures, refer to Note 2

financial statements and related disclosures, refer to Note 2. 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. The guidance became effective for the Company beginning July 1, 2023. The adoption of this guidance did not have a material impact on the Company's

financial statements

financial statements and related disclosures, refer to Note 2. The Company's updated accounting policy regarding allowance for credit losses is as follows: Allowance for doubtful accounts receivable Allowance for doubtful finance loans receivable The Company uses historical default experience over the lifetime of loans in order to calculate a lifetime loss rate for its lending books. The allowance for credit losses related to Consumer finance loans receivables is calculated by multiplying the lifetime loss rate with the month-end outstanding lending book. The allowance for credit losses related to Merchant finance loans receivables is calculated by adding together actual receivables in default plus multiplying the lifetime loss rate with the month-end outstanding lending book. Prior to July 1, 2023, the Company regularly reviewed the ageing of outstanding amounts due from borrowers and adjusted its allowance based on management's estimate of the recoverability of the finance loans receivable. The Company writes off microlending finance loans receivable and related service fees and interest if a borrower is in arrears with repayments for more than three months or is deceased. The Company writes off merchant and working capital finance receivables and related fees when it is evident that reasonable recovery procedures, including where deemed necessary, formal legal action, have failed. 9 1. Basis of Presentation and Summary of Significant Accounting Policies (continued) Allowance for doubtful accounts receivable (continued) Allowance for doubtful accounts receivable The Company uses a lifetime loss rate by expressing write-off experience as a percentage of corresponding invoice amounts (as opposed to outstanding balances). The allowance for credit losses related to these receivables has been calculated by multiplying the lifetime loss rate with recent invoice/originatio

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View this 10-Q filing on SEC EDGAR