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GOODWILL
 12 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL

NOTE 13 – GOODWILL

 

Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in prior period business combinations. Goodwill was comprised of the following amounts:

 

   As of       As of 
   June 30, 2021   Impairment   June 30, 2022 
NetSol PK (Asia - Pacific)  $1,166,610   $-   $1,166,610 
NTE (Europe)   3,471,814    -    3,471,814 
VLS (Europe)   214,044    (214,044)   - 
NTA (North America)   4,664,100    -    4,664,100 
Total  $9,516,568   $(214,044)  $9,302,524 

 

The Company tests for goodwill impairment at each reporting unit and recorded an impairment of $214,044 at June 30, 2022. The Company performed the goodwill analysis using a combination of an income approach and a market approach. The impairment was caused by the decline in VLS’ revenue due to the loss of their largest customer and some smaller customers. The expense is recorded in the line item of “other income (expense)” in the “Consolidated Statement of Operations”.