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Note 14 - Convertible Notes Payable | 3 Months Ended
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Sep. 30, 2012
Debt Disclosure [Text Block] | NOTE 14 – CONVERTIBLE NOTES PAYABLE The net outstanding balance of convertible notes as of September 30 and June 30, 2012 is as follows:
Issue Date |  | Balance net of BCF @ 9/30/12 |  |  | Current Portion |  |  | Long Term |  | Maturity Date
Sep-12 |  |  | 2,681,861 |  |  |  | 2,681,861 |  |  |  | - |  | Sep-13
Total |  |  | 2,681,861 |  |  |  | 2,681,861 |  |  |  | - |  |
Issue Date |  | Balance net of BCF @ 6/30/12 |  |  | Current Portion |  |  | Long Term |  | Maturity Date
Sep-11 |  |  | 3,745,457 |  |  |  | 2,809,093 |  |  |  | 936,364.25 |  | Sep-13
Total |  |  | 3,745,457 |  |  |  | 2,809,093 |  |  |  | 936,364.25 |  |
For the periods ended September 30, 2012 and 2011, the interest accrued on convertible notes was $225,011 and $116,262, respectively. (A) 2011 CONVERTIBLE DEBT On September 13, 2011, NetSol Technologies, Inc. entered into a purchase agreement to sell convertible notes with a total principal value of $4,000,000 and warrants to purchase shares of common stock to an investment fund managed by CIM Investment Management Limited and another accredited investor. The notes have a 2 year maturity date and are convertible into shares of common stock at the initial conversion price of $8.95 per share. The warrants entitle the investors to acquire a total of 140,845 shares of common stock, have a 5 year term, and have an initial exercise price of $8.95 per share. The Notes and Warrant terms contain standard anti-dilution protection. The Company raised new capital through a follow on offering under its registered shelf offering on form S-3 in March 2012 and as a result, the conversion price of note and exercise price of warrants has been adjusted downward from $8.95 to $7.73. Resultantly, the number of warrants has also been increased to 163,021. The proceeds of the Note were assigned between warrants and convertible note per ASC 470-20. The Company recorded $401,648 capitalized financing cost and discount of $19,665 on shares to be issued upon conversion of note into equity. On September 13, 2012, the parties replaced the note with a new note for the same principal amount, an elimination of a shareholders’ receivable condition, a decrease in the interest rate and a decrease in the conversion price from $7.73 to $4.93. From July 1, 2012 to the date of exchange, the company accrued interest amounting to $144,000 at default rate due to non-compliance of one of the note provisions. The Company has expensed out balance amount of financing cost and discount on the old note at the date of replacement and recorded a further discount of $381,339 which will be amortized over the remaining life of note. However due to partial conversion of notes worth $1,050,000 till September 30, 2012, out of this discount, a total amount of $113,200 has been expensed out in these consolidated financial statements. Due to the reduction in conversion price the number of warrants has also been adjusted to 168,943.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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