XML 53 R42.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Restatement of Previously Issued Financial Statements (Tables) | 3 Months Ended
--- | ---
Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract] |
Schedule of Restated Condensed Consolidated Financial Statements | The following tables present the restated financial statements for the quarter ended September 30, 2016.
|  | Balance Sheet As of September 30, 2016 |
|  | As Originally Presented |  |  | Amount of Restatement |  |  | As Restated |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 11,156,437 |  |  |  |  |  |  | $ | 11,156,437 |
Accounts receivable, net of allowance of $500,853 and $492,498 |  |  | 7,142,255 |  |  |  |  |  |  |  | 7,142,255 |
Accounts receivable, net - related party |  |  | 5,384,573 |  |  |  |  |  |  |  | 5,384,573 |
Revenues in excess of billings |  |  | 13,358,858 |  |  |  | 2,074,911 |  |  |  | 15,433,769 |
Revenues in excess of billings - related party |  |  | 682,049 |  |  |  |  |  |  |  | 682,049 |
Other current assets |  |  | 3,192,425 |  |  |  |  |  |  |  | 3,192,425 |
Total current assets |  |  | 40,916,597 |  |  |  | 2,074,911 |  |  |  | 42,991,508 |
Restricted cash |  |  | 90,000 |  |  |  |  |  |  |  | 90,000 |
Property and equipment, net |  |  | 22,612,752 |  |  |  |  |  |  |  | 22,612,752 |
Other assets |  |  | 1,604,731 |  |  |  |  |  |  |  | 1,604,731 |
Intangible assets, net |  |  | 19,326,259 |  |  |  |  |  |  |  | 19,326,259 |
Goodwill |  |  | 9,516,568 |  |  |  |  |  |  |  | 9,516,568 |
Total assets |  | $ | 94,066,907 |  |  | $ | 2,074,911 |  |  | $ | 96,141,818 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 6,389,128 |  |  |  |  |  |  | $ | 6,389,128 |
Current portion of loans and obligations under capitalized leases |  |  | 4,408,173 |  |  |  |  |  |  |  | 4,408,173 |
Unearned revenues |  |  | 4,419,692 |  |  |  |  |  |  |  | 4,419,692 |
Common stock to be issued |  |  | 88,324 |  |  |  |  |  |  |  | 88,324 |
Total current liabilities |  |  | 15,305,317 |  |  |  | - |  |  |  | 15,305,317 |
Long term loans and obligations under capitalized leases; less current maturities |  |  | 539,859 |  |  |  |  |  |  |  | 539,859 |
Total liabilities |  |  | 15,845,176 |  |  |  | - |  |  |  | 15,845,176 |
Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, $.01 par value; 500,000 shares authorized; |  |  | - |  |  |  | - |  |  |  | - |
Common stock, $.01 par value; 14,500,000 shares authorized; 10,882,281 shares issued and 10,855,002 outstanding as of September 30, 2016 and 10,713,372 shares issued and 10,686,093 outstanding as of June 30, 2016 |  |  | 108,823 |  |  |  |  |  |  |  | 108,823 |
Additional paid-in-capital |  |  | 122,367,231 |  |  |  |  |  |  |  | 122,367,231 |
Treasury stock (27,279 shares) |  |  | (415,425 | ) |  |  |  |  |  |  | (415,425 | )
Accumulated deficit |  |  | (39,089,079 | ) |  |  | 1,379,608 |  |  |  | (37,709,471 | )
Stock subscription receivable |  |  | (602,811 | ) |  |  |  |  |  |  | (602,811 | )
Other comprehensive loss |  |  | (17,960,133 | ) |  |  |  |  |  |  | (17,960,133 | )
Total NetSol stockholders’ equity |  |  | 64,408,606 |  |  |  | 1,379,608 |  |  |  | 65,788,214 |
Non-controlling interest |  |  | 13,813,125 |  |  |  | 695,303 |  |  |  | 14,508,428 |
Total stockholders’ equity |  |  | 78,221,731 |  |  |  | 2,074,911 |  |  |  | 80,296,642 |
Total liabilities and stockholders’ equity |  | $ | 94,066,907 |  |  | $ | 2,074,911 |  |  | $ | 96,141,818 |
|  | For the Three Months |
|  | Ended September 30, 2016 |
|  | As Originally |  |  | Amount of |  |  |  |
|  | Presented |  |  | Restatement |  |  | As Restated |
Net Revenues: |  |  |  |  |  |  |  |  |  |  |  |
License fees |  | $ | 3,499,860 |  |  | $ | 1,953,935 |  |  | $ | 5,453,795 |
Maintenance fees |  |  | 3,402,821 |  |  |  | 120,976 |  |  |  | 3,523,797 |
Services |  |  | 5,806,717 |  |  |  |  |  |  |  | 5,806,717 |
License fees - related party |  |  | 246,957 |  |  |  |  |  |  |  | 246,957 |
Maintenance fees - related party |  |  | 130,631 |  |  |  |  |  |  |  | 130,631 |
Services - related party |  |  | 1,914,572 |  |  |  |  |  |  |  | 1,914,572 |
Total net revenues |  |  | 15,001,558 |  |  |  | 2,074,911 |  |  |  | 17,076,469 |
Cost of revenues: |  |  |  |  |  |  |  |  |  |  |  |
Salaries and consultants |  |  | 5,893,349 |  |  |  |  |  |  |  | 5,893,349 |
Travel |  |  | 711,895 |  |  |  |  |  |  |  | 711,895 |
Depreciation and amortization |  |  | 1,330,872 |  |  |  |  |  |  |  | 1,330,872 |
Other |  |  | 972,338 |  |  |  |  |  |  |  | 972,338 |
Total cost of revenues |  |  | 8,908,454 |  |  |  | - |  |  |  | 8,908,454 |
Gross profit |  |  | 6,093,104 |  |  |  | 2,074,911 |  |  |  | 8,168,015 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | 2,411,136 |  |  |  |  |  |  |  | 2,411,136 |
Depreciation and amortization |  |  | 269,097 |  |  |  |  |  |  |  | 269,097 |
General and administrative |  |  | 4,552,098 |  |  |  |  |  |  |  | 4,552,098 |
Research and development cost |  |  | 92,932 |  |  |  |  |  |  |  | 92,932 |
Total operating expenses |  |  | 7,325,263 |  |  |  | - |  |  |  | 7,325,263 |
Income (loss) from operations |  |  | (1,232,159 | ) |  |  | 2,074,911 |  |  |  | 842,752 |
Other income and (expenses) |  |  |  |  |  |  |  |  |  |  |  |
Loss on sale of assets |  |  | (2,403 | ) |  |  |  |  |  |  | (2,403 | )
Interest expense |  |  | (54,475 | ) |  |  |  |  |  |  | (54,475 | )
Interest income |  |  | 30,440 |  |  |  |  |  |  |  | 30,440 |
Loss on foreign currency exchange transactions |  |  | (414,896 | ) |  |  |  |  |  |  | (414,896 | )
Other income |  |  | 21,560 |  |  |  |  |  |  |  | 21,560 |
Total other income (expenses) |  |  | (419,774 | ) |  |  | - |  |  |  | (419,774 | )
Net income (loss) before income taxes |  |  | (1,651,933 | ) |  |  | 2,074,911 |  |  |  | 422,978 |
Income tax provision |  |  | (39,875 | ) |  |  |  |  |  |  | (39,875 | )
Net income (loss) |  |  | (1,691,808 | ) |  |  | 2,074,911 |  |  |  | 383,103 |
Non-controlling interest |  |  | (73,911 | ) |  |  | (695,303 | ) |  |  | (769,214 | )
Net income (loss) attributable to NetSol |  | $ | (1,765,719 | ) |  | $ | 1,379,608 |  |  | $ | (386,111 | )
Net Income (loss) per share: |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) per common share |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.17 | ) |  | $ | 0.14 |  |  | $ | (0.04 | )
Diluted |  | $ | (0.17 | ) |  | $ | 0.14 |  |  | $ | (0.04 | )
Weighted average number of shares outstanding |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 10,697,425 |  |  |  | 10,697,425 |  |  |  | 10,697,425 |
Diluted |  |  | 10,697,425 |  |  |  | 10,697,425 |  |  |  | 10,697,425 |
|  | For the Three Months |
|  | Ended September 30, 2016 |
|  | As Originally |  |  | Amount of |  |  |  |
|  | Presented |  |  | Restatement |  |  | As Restated |
Net income (loss) |  | $ | (1,765,719 | ) |  | $ | 1,379,608 |  |  | $ | (386,111 | )
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Translation adjustment |  |  | 1,094,074 |  |  |  | - |  |  |  | 1,094,074 |
Comprehensive income (loss) |  |  | (671,645 | ) |  |  | 1,379,608 |  |  |  | 707,963 |
Comprehensive income (loss) attributable to non-controlling interest |  |  | 323,713 |  |  |  | - |  |  |  | 323,713 |
Comprehensive income (loss) attributable to NetSol |  | $ | (995,358 | ) |  | $ | 1,379,608 |  |  | $ | 384,250 |
|  | For the Three Months |
|  | Ended September 30, 2016 |
|  | As Originally |  |  | Amount of |  |  |  |
|  | Presented |  |  | Restatement |  |  | As Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | (1,691,808 | ) |  | $ | 2,074,911 |  |  | $ | 383,103 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 1,599,969 |  |  |  |  |  |  |  | 1,599,969 |
Loss on sale of assets |  |  | 2,403 |  |  |  |  |  |  |  | 2,403 |
Stock issued for services |  |  | 865,456 |  |  |  |  |  |  |  | 865,456 |
Fair market value of warrants and stock options granted |  |  | 21,804 |  |  |  |  |  |  |  | 21,804 |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 2,336,894 |  |  |  |  |  |  |  | 2,336,894 |
Accounts receivable - related party |  |  | 121,800 |  |  |  |  |  |  |  | 121,800 |
Revenues in excess of billing |  |  | (2,746,917 | ) |  |  | (2,074,911 | ) |  |  | (4,821,828 | )
Revenues in excess of billing - related party |  |  | 93,208 |  |  |  |  |  |  |  | 93,208 |
Other current assets |  |  | 306,339 |  |  |  |  |  |  |  | 306,339 |
Accounts payable and accrued expenses |  |  | (780,569 | ) |  |  |  |  |  |  | (780,569 | )
Unearned revenue |  |  | (346,108 | ) |  |  |  |  |  |  | (346,108 | )
Net cash used in operating activities |  |  | (217,529 | ) |  |  | - |  |  |  | (217,529 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Purchases of property and equipment |  |  | (554,873 | ) |  |  |  |  |  |  | (554,873 | )
Sales of property and equipment |  |  | 151,818 |  |  |  |  |  |  |  | 151,818 |
Investment |  |  | (555,555 | ) |  |  |  |  |  |  | (555,555 | )
Net cash used in investing activities |  |  | (958,610 | ) |  |  | - |  |  |  | (958,610 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from the exercise of stock options and warrants |  |  | 276,861 |  |  |  |  |  |  |  | 276,861 |
Proceeds from exercise of subsidiary options |  |  | 14,013 |  |  |  |  |  |  |  | 14,013 |
Payments on capital lease obligations and loans - net |  |  | (49,117 | ) |  |  |  |  |  |  | (49,117 | )
Net cash provided by financing activities |  |  | 241,757 |  |  |  | - |  |  |  | 241,757 |
Effect of exchange rate changes |  |  | 533,292 |  |  |  |  |  |  |  | 533,292 |
Net decrease in cash and cash equivalents |  |  | (401,090 | ) |  |  | - |  |  |  | (401,090 | )
Cash and cash equivalents, beginning of the period |  |  | 11,557,527 |  |  |  |  |  |  |  | 11,557,527 |
Cash and cash equivalents, end of period |  | $ | 11,156,437 |  |  | $ | - |  |  | $ | 11,156,437 |

X
- References No definition available. + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22663-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22644-107794 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22658-107794 + Details
Name: | us-gaap_ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration