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OPERATING SEGMENTS
 3 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 18 – 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 September 30, 2022 and June 30, 2022:

 

   As of   As of 
   September 30, 2022   June 30, 2022 
Identifiable assets:          
Corporate headquarters  $1,758,935   $844,178 
North America   6,548,741    6,442,219 
Europe   8,354,174    8,727,530 
Asia - Pacific   49,783,782    56,594,705 
Consolidated  $66,445,632   $72,608,632 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2022

(Unaudited)

 

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

 

   As of   As of 
   September 30, 2022   June 30, 2022 
Investment in associates under equity method:          
Corporate headquarters  $-   $- 
Asia - Pacific   1,059,368    1,059,368 
Consolidated  $1,059,368   $1,059,368 

 

The following table presents a summary of operating information for the three months ended September 30:

 

   For the Three Months 
   Ended September 30, 
   2022   2021 
Revenues from unaffiliated customers:          
North America  $1,125,288   $930,234 
Europe   2,247,335    3,272,899 
Asia - Pacific   9,333,496    9,217,628 
    12,706,119    13,420,761 
Revenue from affiliated customers          
Asia - Pacific   -    - 
    -    - 
Consolidated  $12,706,119   $13,420,761 
           
Intercompany revenue          
Europe  $95,725   $127,198 
Asia - Pacific   1,729,953    2,560,100 
Eliminated  $1,825,678   $2,687,298 
           
Net income (loss) after taxes and before non-controlling interest:          
Corporate headquarters  $1,327,200   $128,544 
North America   (18,947)   (68,093)
Europe   (319,755)   191,443 
Asia - Pacific   (1,426,469)   298,601 
Consolidated  $(437,971)  $550,495 
           
Depreciation and amortization:          
North America  $482   $566 
Europe   75,171    98,848 
Asia - Pacific   769,350    880,592 
Consolidated  $845,003   $980,006 
           
Interest expense:          
Corporate headquarters  $2,480   $10,441 
North America   -    - 
Europe   3,638    3,796 
Asia - Pacific   115,492    86,776 
Consolidated  $121,610   $101,013 
           
Income tax expense:          
Corporate headquarters  $-   $800 
North America   -    1,600 
Europe   -    - 
Asia - Pacific   193,348    165,227 
Consolidated  $193,348   $167,627 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2022

(Unaudited)

 

The following table presents a summary of capital expenditures for the three months ended September 30:

 

   For the Three Months 
   Ended September 30, 
   2022   2021 
Capital expenditures:          
North America  $1,133   $- 
Europe   -    54,380 
Asia - Pacific   1,346,468    161,732 
Consolidated  $1,347,601   $216,112