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OPERATING SEGMENTS
 6 Months Ended
Dec. 31, 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 December 31, 2021 and June 30, 2021:

SUMMARY OF IDENTIFIABLE ASSETS

   As of   As of 
   December 31,
2021		   June 30,
2021		 
Identifiable assets:          
Corporate headquarters  $2,147,024   $2,067,474 
North America   5,978,111    6,073,616 
Europe   9,763,859    10,363,611 
Asia - Pacific   63,609,797    68,101,560 
Consolidated  $81,498,791   $86,606,261 

 

The following table presents a summary of investment under equity method as of December 31, 2021 and June 30, 2021:

SUMMARY OF INVESTMENT UNDER EQUITY METHOD

   As of   As of 
   December 31,
2021		   June 30,
2021		 
Investment in associates under equity method:          
Corporate headquarters  $346,491   $396,403 
Asia - Pacific   2,575,176    2,759,449 
Consolidated  $2,921,667   $3,155,852 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2021

(Unaudited)

 

The following table presents a summary of operating information for the three and six months ended December 31:

SUMMARY OF OPERATING INFORMATION

   For the Three Months   For the Six Months 
   Ended December 31,   Ended December 31, 
   2021   2020   2021   2020 
Revenues from unaffiliated customers:                    
North America  $1,060,379   $1,016,556   $1,990,613   $1,829,434 
Europe   2,122,094    2,726,206    5,394,993    5,878,097 
Asia - Pacific   12,290,489    9,378,698    21,508,117    18,061,307 
    15,472,962    13,121,460    28,893,723    25,768,838 
Revenue from affiliated customers                    
Asia - Pacific   -    -    -    - 
    -    -    -    - 
Consolidated  $15,472,962   $13,121,460   $28,893,723   $25,768,838 
                     
Intercompany revenue                    
Europe  $116,479   $126,757   $243,677   $265,913 
Asia - Pacific   774,364    3,125,729    3,334,464    5,284,357 
Eliminated  $890,843   $3,252,486   $3,578,141   $5,550,270 
                     
Net income (loss) after taxes and before non-controlling interest:                    
Corporate headquarters  $138,089   $1,173,146   $266,633   $2,340,941 
North America   (58,915)   (47,019)   (127,008)   (328,816)
Europe   (589,882)   173,085    (398,439)   776,101 
Asia - Pacific   2,949,256    (1,378,400)   3,247,857    (1,743,937)
Consolidated  $2,438,548   $(79,188)  $2,989,043   $1,044,289 
                     
Depreciation and amortization:                    
North America  $527   $998   $1,093   $2,952 
Europe   100,646    108,929    199,494    216,937 
Asia - Pacific   840,559    825,394    1,721,151    1,644,471 
Consolidated  $941,732   $935,321   $1,921,738   $1,864,360 
                     
Interest expense:                    
Corporate headquarters  $9,565   $4,897   $20,006   $10,931 
North America   -    726    -    1,935 
Europe   2,488    1,961    6,284    4,027 
Asia - Pacific   78,755    86,657    165,531    180,675 
Consolidated  $90,808   $94,241   $191,821   $197,568 
                     
Income tax expense:                    
Corporate headquarters  $-   $-   $800   $- 
North America   -    -    1,600    - 
Europe   9,524    92,359    9,524    204,037 
Asia - Pacific   191,982    153,075    357,209    305,691 
Consolidated  $201,506   $245,434   $369,133   $509,728 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2021

(Unaudited)

 

The following table presents a summary of capital expenditures for the six months ended December 31:

SUMMARY OF CAPITAL EXPENDITURES

   For the Six Months 
   Ended December 31, 
   2021   2020 
Capital expenditures:          
North America  $-   $1,521 
Europe   89,451    301,233 
Asia - Pacific   684,502    947,141 
Consolidated  $773,953   $1,249,895