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SEGMENT INFORMATION AND GEOGRAPHIC AREAS
 12 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND GEOGRAPHIC AREAS

NOTE 20 – SEGMENT INFORMATION AND GEOGRAPHIC AREAS

 

The Company has identified three segments for its products and services; North America, Europe and Asia-Pacific. The 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 post contract support 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 June 30, 2023 and 2022:

 

           
   As of   As of 
   June 30, 2023   June 30, 2022 
Identifiable assets:          
Corporate headquarters  $878,899   $844,178 
North America   7,344,122    6,442,219 
Europe   8,716,656    8,727,530 
Asia - Pacific   41,439,733    56,594,705 
Consolidated  $58,379,410   $72,608,632 

 

The following table presents a summary of investments under the equity method as of June 30, 2023 and 2022:

 

   As of   As of 
   June 30, 2023   June 30, 2022 
Investment in associates under equity method:          
Asia - Pacific  $25,396   $1,059,368 
 Consolidated  $25,396   $1,059,368 

 

The following table presents a summary of revenue streams by segment for the years ended June 30, 2023 and 2022:

 

                                 
   2023   2022 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $28,000   $4,398,429   $1,690,853   $6,117,282   $27,500   $3,744,605   $515,903   $4,288,008 
Europe   136,151    2,682,407    7,939,886    10,758,444    291,652    2,213,427    7,923,124    10,428,203 
Asia-Pacific   2,105,413    18,899,825    14,512,251    35,517,489    4,220,108    22,326,727    15,984,933    42,531,768 
Total  $2,269,564   $25,980,661   $24,142,990   $52,393,215   $4,539,260   $28,284,759   $24,423,960   $57,247,979 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Consolidated Financial Statements

June 30, 2023 and 2022

 

The following table presents a summary of operating information for the years ended June 30:

 

           
   For the Years 
   Ended June 30, 
   2023   2022 
Revenues from unaffiliated customers:          
North America  $6,117,282   $4,288,008 
Europe   10,758,444    10,428,203 
Asia - Pacific   35,517,489    42,531,768 
 Revenue from unaffiliated   52,393,215    57,247,979 
Revenue from affiliated customers          
Asia - Pacific   -    - 
 Revenue from affiliated   -    - 
Consolidated  $52,393,215   $57,247,979 
           
Intercompany revenue          
Europe  $394,962   $453,242 
Asia - Pacific   9,075,861    9,612,755 
Eliminated  $9,470,823   $10,065,997 
           
Net income (loss) after taxes and before non-controlling interest:          
Corporate headquarters  $(501,560)  $(1,027,044)
North America   92,674    (116,199)
Europe   (949,214)   (1,407,252)
Asia - Pacific   (2,786,373)   3,651,298 
Consolidated  $(4,144,473)  $1,100,803 
           
Depreciation and amortization:          
North America  $2,523   $1,995 
Europe   303,907    396,519 
Asia - Pacific   2,938,108    3,413,759 
Consolidated  $3,244,538   $3,812,273 
           
Interest expense:          
Corporate headquarters  $23,639   $32,915 
North America   -    - 
Europe   8,955    10,335 
Asia - Pacific   732,436    326,551 
Consolidated  $765,030   $369,801 
           
Income tax expense:          
Corporate headquarters  $12,372   $(43,354)
North America   1,600    46,154 
Europe   46,747    15,862 
Asia - Pacific   865,841    970,276 
Consolidated  $926,560   $988,938 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Consolidated Financial Statements

June 30, 2023 and 2022

 

The following table presents a summary of capital expenditures for the years ended June 30:

 

   2023   2022 
   For the Years 
   Ended June 30, 
   2023   2022 
Capital expenditures:          
North America  $4,881   $- 
Europe   33,185    151,378 
Asia - Pacific   1,601,372    2,457,827 
Consolidated  $1,639,438   $2,609,205 

 

Geographic Information

 

Disclosed in the table below is geographic information for each country that comprised greater than five percent of total revenues for the years ended June 30, 2023 and 2022.

 

   June 30, 2023   June 30, 2022 
   Revenue   Long-lived Assets   Revenue   Long-lived Assets 
                 
China  $15,120,449   $631,713   $20,533,170   $256,468 
Thailand   2,260,699    207,280    2,781,867    1,240,082 
USA   5,057,470    4,805,841    3,161,365    4,852,458 
UK   10,758,444    4,276,754    10,428,203    4,986,192 
Pakistan & India   2,087,018    6,845,753    3,751,603    11,836,992 
Australia & New Zealand   7,018,095    8,202    6,545,872    8,304 
Mexico   1,059,812    -    1,126,643    - 
Indonesia   2,903,163    -    2,957,354    - 
South Africa   752,603    -    2,057,608    - 
South Korea   1,954,982    -     894,160    -  
Other Countries   3,420,480    -    3,010,134    - 
Total  $52,393,215   $16,775,543   $57,247,979   $23,180,496 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Consolidated Financial Statements

June 30, 2023 and 2022

 

Disclosed in the table below is the geographic information of total revenues by country for the years ended June 30, 2023 and 2022.

 

                                                             
   Revenues 2023 
   Total   China   Thailand   USA   UK   Pakistan & India   Australia & New Zealand   Mexico   Indonesia   South Africa   South Korea   Other Countries 
North America:  $6,117,282   $-   $-   $5,057,470   $-   $-   $-   $1,059,812   $-   $-   $-   $- 
Europe:   10,758,444    -    -    -    10,758,444    -    -    -    -    -    -    - 
Asia-Pacific:   35,517,489    15,120,449    2,260,699    -    -    2,087,018    7,018,095    -    2,903,163    752,603    1,954,982    3,420,480 
                                                             
Total  $52,393,215   $15,120,449   $2,260,699   $5,057,470   $10,758,444   $2,087,018   $7,018,095   $1,059,812   $2,903,163   $752,603   $1,954,982   $3,420,480 

 

                                                             
   Revenues 2022 
   Total   China   Thailand   USA   UK   Pakistan & India   Australia & New Zealand   Mexico   Indonesia   South Africa   South Korea   Other Countries 
                                                 
North America:  $4,288,008   $-   $-   $3,161,365   $-   $-   $-   $1,126,643   $-   $-   $-   $- 
Europe:   10,428,203    -    -    -    10,428,203    -    -    -    -    -    -    - 
Asia-Pacific:   42,531,768    20,533,170    2,781,867    -    -    3,751,603    6,545,872    -    2,957,354    2,057,608    894,160    3,010,134 
                                                             
Total  $57,247,979   $20,533,170   $2,781,867   $3,161,365   $10,428,203   $3,751,603   $6,545,872   $1,126,643   $2,957,354   $2,057,608   $894,160   $3,010,134