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OPERATING SEGMENTS
 9 Months Ended
Mar. 31, 2022
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 March 31, 2022 and June 30, 2021:

 

   As of   As of 
   March 31, 2022   June 30, 2021 
Identifiable assets:          
Corporate headquarters  $1,765,803   $2,067,474 
North America   5,653,292    6,073,616 
Europe   9,448,659    10,363,611 
Asia - Pacific   65,208,505    68,101,560 
Consolidated  $82,076,259   $86,606,261 

 

The following table presents a summary of investment under equity method as of March 31, 2022 and June 30, 2021:

 

   As of   As of 
   March 31, 2022   June 30, 2021 
Investment in associates under equity method:          
Corporate headquarters  $337,127   $396,403 
Asia - Pacific   2,556,573    2,759,449 
Consolidated  $2,893,700   $3,155,852 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2022

(Unaudited)

 

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

 

   For the Three Months   For the Nine Months 
   Ended March 31,   Ended March 31, 
   2022   2021   2022   2021 
Revenues from unaffiliated customers:                    
North America  $1,113,820   $1,008,011   $3,104,433   $2,837,445 
Europe   2,088,918    2,748,945    7,483,911    8,627,042 
Asia - Pacific   11,607,088    10,027,040    33,115,205    28,088,347 
    14,809,826    13,783,996    43,703,549    39,552,834 
Revenue from affiliated customers                    
Asia - Pacific   -    -    -    - 
    -    -    -    - 
Consolidated  $14,809,826   $13,783,996   $43,703,549   $39,552,834 
                     
Intercompany revenue                    
Europe  $105,668   $160,970   $349,345   $426,883 
Asia - Pacific   3,104,913    3,810,340    6,439,377    9,094,697 
Eliminated  $3,210,581   $3,971,310   $6,788,722   $9,521,580 
                     
Net income (loss) after taxes and before non-controlling interest:                    
Corporate headquarters  $(394,375)  $(804,636)  $(127,742)  $1,536,305 
North America   (86,722)   57,460    (213,730)   (271,356)
Europe   (575,533)   (474,629)   (973,972)   301,472 
Asia - Pacific   1,039,158    246,635    4,287,015    (1,497,302)
Consolidated  $(17,472)  $(975,170)  $2,971,571   $69,119 
                     
Depreciation and amortization:                    
North America  $451  

$

701   $1,544   $3,653 
Europe   88,987    139,180    288,481    356,117 
Asia - Pacific   858,495    891,962    2,579,646    2,536,433 
Consolidated  $947,933   $1,031,843   $2,869,671   $2,896,203 
                     
Interest expense:                    
Corporate headquarters  $8,105   $4,647   $28,111   $15,578 
North America   -    725    -    2,660 
Europe   1,766    4,106    8,050    8,133 
Asia - Pacific   76,045    89,178    241,576    269,853 
Consolidated  $85,916   $98,656   $277,737   $296,224 
                     
Income tax expense:                    
Corporate headquarters  $-   $-   $800   $- 
North America   400    450    2,000    450 
Europe  -    18,333    9,524    222,370 
Asia - Pacific   157,204    114,373    514,413    420,064 
Consolidated  $157,604   $133,156   $526,737   $642,884 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2022

(Unaudited)

 

The following table presents a summary of capital expenditures for the nine months ended March 31:

 

   For the Nine Months 
   Ended March 31, 
   2022   2021 
Capital expenditures:          
North America  $-   $1,520 
Europe   134,450    388,367 
Asia - Pacific   1,546,406    1,719,171 
Consolidated  $1,680,856   $2,109,058