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LONG TERM INVESTMENT | 6 Months Ended
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Dec. 31, 2021
Investments, All Other Investments [Abstract] |
LONG TERM INVESTMENT | NOTE 12 – LONG TERM INVESTMENT Drivemate 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 December 31, 2021, the Company has been issued 8,178 shares equal to 30% 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. The Company provided services of $12,528 during the three and six months ended December 31, 2021 and did not provide any services during the three and six months ended December 31, 2020. Under the equity method of accounting, the Company recorded its share of net income of $4,666 and net loss of $58,905 for the three and six months ended December 31, 2021, respectively and the Company recorded its share of net income of $3,324 and $3,919 for the three and six months ended December 31, 2020, respectively. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements December 31, 2021 (Unaudited) 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. NetSol PK has not provided services to WRLD3D for the three and six months ended December 31, 2021 and December 31, 2020. Accounts receivable and revenue in excess of billing were $1,373,099 and $8,163 at December 31, 2021, respectively. The Company has established an allowance for the full amounts of these accounts. Under the equity method of accounting, the Company recorded its share of net loss of $84,484 and $181,878 for the three and six months ended December 31, 2021, and the Company recorded its share of net loss of $47,009 and $155,454 for the three and six months ended December 31, 2020, respectively. The following table reflects the above investments at December 31, 2021. SCHEDULE OF LONG TERM INVESTMENT
|  | Drivemate |  |  | WRLD3D |  |  | Total |
Gross investment |  | $ | 1,800,000 |  |  | $ | 3,888,889 |  |  | $ | 5,688,889 |
Cumulative net loss on investment |  |  | (103,521 | ) |  |  | (2,103,266 | ) |  |  | (2,206,787 | )
Cumulative other comprehensive income (loss) |  |  | - |  |  |  | (565,101 | ) |  |  | (565,101 | )
Net investment |  | $ | 1,696,479 |  |  | $ | 1,220,522 |  |  | $ | 2,917,001 |

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- 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 http://asc.fasb.org/topic&trid=75115024 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 325 -URI http://asc.fasb.org/topic&trid=2197064 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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