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OPERATING SEGMENTS
 3 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 19 – OPERATING SEGMENTS

 

The Company has identified three segments for its products and services; North America, Europe and Asia-Pacific. Our reportable segments are business units located in different global regions. Each business unit provides similar products and services; license fees for leasing and asset-based software, related maintenance fees, and implementation and IT consulting services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to third parties and eliminates them in the consolidation.

 

The following table presents a summary of identifiable assets as of September 30, 2021 and June 30, 2021:

 

   As of   As of 
  

September 30,

2021

  

June 30,

2021

 
Identifiable assets:          
Corporate headquarters  $2,089,513   $2,067,474 
North America   5,890,236    6,073,616 
Europe   10,294,197    10,363,611 
Asia - Pacific   62,614,718    68,101,560 
Consolidated  $80,888,664   $86,606,261 

 

The following table presents a summary of investment under equity method as of September 30, 2021 and June 30, 2021:

 

   As of   As of 
  

September 30,

2021

  

June 30,

2021

 
Investment in associates under equity method:          
Corporate headquarters  $367,512   $396,403 
Asia - Pacific   2,627,592    2,759,449 
Consolidated  $2,995,104   $3,155,852 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

 

The following table presents a summary of operating information for the three months ended September 30:

 

   For the Three Months 
   Ended September 30, 
   2021   2020 
Revenues from unaffiliated customers:          
North America  $930,234   $812,878 
Europe   3,272,899    3,151,891 
Asia - Pacific   9,217,628    8,682,609 
    13,420,761    12,647,378 
Revenue from affiliated customers          
Asia - Pacific   -    - 
    -    - 
Consolidated  $13,420,761   $12,647,378 
           
Intercompany revenue          
Europe  $127,198   $139,156 
Asia - Pacific   2,560,100    2,158,628 
Eliminated  $2,687,298   $2,297,784 
           
Net income (loss) after taxes and before non-controlling interest:          
Corporate headquarters  $128,544   $1,167,795 
North America   (68,093)   (281,797)
Europe   191,443    603,016 
Asia - Pacific   298,601    (365,537)
Consolidated  $550,495   $1,123,477 
           
Depreciation and amortization:          
North America  $566   $1,954 
Europe   98,848    108,008 
Asia - Pacific   880,592    819,077 
Consolidated  $980,006   $929,039 
           
Interest expense:          
Corporate headquarters  $10,441   $6,034 
North America   -    1,209 
Europe   3,796    2,066 
Asia - Pacific   86,776    94,018 
Consolidated  $101,013   $103,327 
           
Income tax expense:          
Corporate headquarters  $800   $- 
North America   1,600    - 
Europe   -    111,678 
Asia - Pacific   165,227    152,616 
Consolidated  $167,627   $264,294 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

 

The following table presents a summary of capital expenditures for the three months ended September 30:

 

   For the Three Months 
   Ended September 30, 
   2021   2020 
Capital expenditures:          
North America  $-   $1,521 
Europe   54,380    57,429 
Asia - Pacific   161,732    430,339 
Consolidated  $216,112   $489,289