XML 36 R25.htm IDEA: XBRL DOCUMENT v3.22.4
OPERATING SEGMENTS
 6 Months Ended
Dec. 31, 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 December 31, 2022 and June 30, 2022:

 

   As of   As of 
   December 31, 2022   June 30, 2022 
Identifiable assets:          
Corporate headquarters  $1,106,983   $844,178 
North America   7,044,788    6,442,219 
Europe   8,920,116    8,727,530 
Asia - Pacific   47,744,012    56,594,705 
Consolidated  $64,815,899   $72,608,632 

 

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

 

   As of   As of 
   December 31, 2022   June 30, 2022 
Investment in associates under equity method:          
Corporate headquarters  $-   $- 
Asia - Pacific   1,064,501    1,059,368 
Consolidated  $1,064,501   $1,059,368 
           

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2022

(Unaudited)

 

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

 

   For the Three Months   For the Six Months 
   Ended December 31,   Ended December 31, 
   2022   2021   2022   2021 
Revenues from unaffiliated customers:                    
North America  $1,597,852   $1,060,379   $2,723,140   $1,990,613 
Europe   2,845,701    2,122,094    5,093,036    5,394,993 
Asia - Pacific   7,946,805    12,290,489    17,280,301    21,508,117 
    12,390,358    15,472,962    25,096,477    28,893,723 
Revenue from affiliated customers                    
Asia - Pacific   -    -    -    - 
    -    -    -    - 
Consolidated  $12,390,358   $15,472,962   $25,096,477   $28,893,723 
                     
Intercompany revenue                    
Europe  $93,236   $116,479   $188,961   $243,677 
Asia - Pacific   2,545,098    774,364    4,275,051    3,334,464 
Eliminated  $2,638,334   $890,843   $4,464,012   $3,578,141 
                     
Net income (loss) after taxes and before non-controlling interest:                    
Corporate headquarters  $(696,938)  $138,089   $630,262   $266,633 
North America   105,326    (58,915)   86,379    (127,008)
Europe   (163,633)   (589,882)   (483,388)   (398,439)
Asia - Pacific   (1,646,718)   2,949,256    (3,073,187)   3,247,857 
Consolidated  $(2,401,963)  $2,438,548   $(2,839,934)  $2,989,043 
                     
Depreciation and amortization:                    
North America  $727   $527   $1,209   $1,093 
Europe   66,431    100,646    141,602    199,494 
Asia - Pacific   824,342    840,559    1,593,692    1,721,151 
Consolidated  $891,500   $941,732   $1,736,503   $1,921,738 
                     
Interest expense:                    
Corporate headquarters  $5,912   $9,565   $8,392   $20,006 
North America   -    -    -    - 
Europe   2,702    2,488    6,340    6,284 
Asia - Pacific   193,749    78,755    309,241    165,531 
Consolidated  $202,363   $90,808   $323,973   $191,821 
                     
Income tax expense:                    
Corporate headquarters  $-   $-   $-   $(43,354)
North America   -    -    -    45,754 
Europe   -    9,524    -    9,524 
Asia - Pacific   220,056    191,982    413,404    357,209 
Consolidated  $220,056   $201,506   $413,404   $369,133 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2022

(Unaudited)

 

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

 

   For the Six Months 
   Ended December 31, 
   2022   2021 
Capital expenditures:          
North America  $4,880   $- 
Europe   -    89,451 
Asia - Pacific   1,247,445    684,502 
Consolidated  $1,252,325   $773,953