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LONG TERM INVESTMENT | 9 Months Ended
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Mar. 31, 2022
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 March 31, 2022, 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 $Nil and $12,528 during the three and nine months ended March 31, 2022, respectively and did not provide any services during the three and nine months ended March 31, 2021. Under the equity method of accounting, the Company recorded its share of net income of $4,712 and net loss of $54,193 for the three and nine months ended March 31, 2022, respectively and the Company recorded its share of net income of $Nil and $3,919 for the three and nine months ended March 31, 2021, respectively. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2022 (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 nine months ended March 31, 2022 and March 31, 2021. Accounts receivable and revenue in excess of billing were $1,373,099 and $8,163 at March 31, 2022, 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 $81,510 and $263,388 for the three and nine months ended March 31, 2022, and the Company recorded its share of net loss of $80,953 and $236,407 for the three and nine months ended March 31, 2021, respectively. The following table reflects the above investments at March 31, 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 |  |  | (94,143 | ) |  |  | (2,184,775 | ) |  |  | (2,278,918 | )
Cumulative other comprehensive income (loss) |  |  | - |  |  |  | (516,271 | ) |  |  | (516,271 | )
Net investment |  | $ | 1,705,857 |  |  | $ | 1,187,843 |  |  | $ | 2,893,700 |

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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 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
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