XML 30 R18.htm IDEA: XBRL DOCUMENT
v3.22.2.2

LONG-TERM INVESTMENT | 12 Months Ended
--- | ---
Jun. 30, 2022
Investments, All Other Investments [Abstract] |
LONG-TERM INVESTMENT | NOTE 11 – LONG-TERM INVESTMENT Drivemate – Related Party The Company and Drivemate Co., Ltd. (“Drivemate”) entered into a subscription agreement on April 25, 2019, (“Drivemate Agreement”) whereby the Company purchased an equity interest of 30% in Drivemate. Per the Drivemate Agreement, the Company purchased 5,469 preferred shares for $1,800,000 consisting of $500,000 cash to be paid over a two-year period and $1,300,000 to be provided in services. The Company has paid the $500,000 in cash and has provided services of $1,300,000. Pursuant to the agreement, the number of shares to be issued is adjusted as necessary to result in an equity ownership equal to 30% of the issued and outstanding shares at the final payment date. As of June 30, 2022 and 2021, the Company owns 8,178 shares equal to 30.0% of Drivemate. Per the Drivemate Agreement, the Company appointed two directors to the Drivemate board. The Company determined that it met the significant influence criteria since two of the four directors are appointed by the Company and the Company owns 30% of Drivemate; therefore, the Company accounts for the investment using the equity method of accounting. NETSOL TECHNOLOGIES, INC. Notes to Consolidated Financial Statements June 30, 2022 and 2021 During the years ended June 30, 2022 and 2021, the Company performed services of $12,528 and $18,006, respectively. Under the equity method of accounting, the Company recorded its share of net loss of $49,664 and $20,001 for the years ended June 30, 2022 and 2021, respectively. For the year ended June 30, 2022, the Company performed a fair value analysis and determined that the carrying amount of the investment exceeded the investment’s fair value; therefore, the Company recorded an impairment of $651,018. The impairment expense is recorded in the line item “share of net loss under equity method” in the “Consolidated Statement of Operations”. WRLD3D-Related Party On March 2, 2017, the Company purchased a 4.9% interest in WRLD3D, a non-public company, for $1,111,111. The Company paid $555,556 at the initial closing and $555,555 on September 1, 2017. NetSol PK, the subsidiary of the Company, purchased a 12.2% investment in WRLD3D, for $2,777,778 which was earned by providing IT and enterprise software solutions. As of June 30, 2022 and 2021, NTI and NTPK own 1,636,876 and 4,092,189, respectively, of Series BB Preferred Stock. In connection with the investment, the Company and NetSol PK received a warrant to purchase preferred stock of WRLD3D, which warrants expired on March 2, 2020. The Company determined that it met the significant influence criteria since the CEO of WRLD3D is the son of the CEO, Najeeb Ghauri, and also an employee of the Company; therefore, the Company accounts for the investment using the equity method of accounting. During the year ended June 30, 2022 NetSol PK did not provide any services and during the year ended June 30, 2021, NetSol PK provided services valued at $48,775, which is recorded as services-related party. Under the equity method of accounting, the Company recorded its share of net loss of $354,802 and $233,818 for the years ended June 30, 2022 and 2021, respectively. For the year ended June 30, 2022, the Company performed a fair value analysis and determined that the carrying amount of the investment exceeded the investment’s fair value; therefore, the Company recorded an impairment of $965,996. The impairment expense is recorded in the line item “share of net loss under equity method” in the “Consolidated Statement of Operations”. The following table reflects the above investments at June 30, 2022. SCHEDULE OF LONG TERM INVESTMENT
|  | Drivemate |  |  | WRLD3D |  |  | Total |
Gross investment |  | $ | 1,800,000 |  |  | $ | 3,888,889 |  |  | $ | 5,688,889 |
Cumulative net loss on investment |  |  | (740,632 | ) |  |  | (3,238,647 | ) |  |  | (3,979,279 | )
Cumulative other comprehensive income (loss) |  |  | - |  |  |  | (650,242 | ) |  |  | (650,242 | )
Net investment |  | $ | 1,059,368 |  |  | $ | - |  |  | $ | 1,059,368 |
The following table reflects the above investments at June 30, 2021.
|  | Drivemate |  |  | WRLD3D |  |  | Total |
Gross investment |  | $ | 1,800,000 |  |  | $ | 3,888,889 |  |  | $ | 5,688,889 |
Cumulative net loss on investment |  |  | (38,853 | ) |  |  | (1,924,134 | ) |  |  | (1,962,987 | )
Cumulative other comprehensive income (loss) |  |  | - |  |  |  | (570,050 | ) |  |  | (570,050 | )
Net investment |  | $ | 1,761,147 |  |  | $ | 1,394,705 |  |  | $ | 3,155,852 |

X
- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 321 -URI https://asc.fasb.org/topic&trid=75115024 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 325 -URI https://asc.fasb.org/topic&trid=2197064 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_InvestmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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