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OPERATING SEGMENTS
 9 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 17 – 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, 2023 and June 30, 2022:

 

   As of   As of 
   March 31, 2023   June 30, 2022 
Identifiable assets:          
Corporate headquarters  $1,633,771   $844,178 
North America   6,332,955    6,442,219 
Europe   8,351,282    8,727,530 
Asia - Pacific   43,231,859    56,594,705 
Consolidated  $59,549,867   $72,608,632 

 

The following table presents a summary of investment under equity method as of March 31, 2023 and June 30, 2022:

 

   As of   As of 
   March 31, 2023   June 30, 2022 
Investment in associates under equity method:          
Asia - Pacific  $1,066,878   $1,059,368 
Consolidated  $1,066,878   $1,059,368 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2023

(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, 
   2023   2022   2023   2022 
Revenues from unaffiliated customers:                    
North America  $1,365,556   $1,113,820   $4,088,696   $3,104,433 
Europe   2,550,372    2,088,918    7,643,408    7,483,911 
Asia - Pacific   9,590,461    11,607,088    26,870,762    33,115,205 
    13,506,389    14,809,826    38,602,866    43,703,549 
Revenue from affiliated customers                    
Asia - Pacific   -    -    -    - 
    -    -    -    - 
Consolidated  $13,506,389   $14,809,826   $38,602,866   $43,703,549 
                     
Intercompany revenue                    
Europe  $103,249   $105,668   $292,210   $349,345 
Asia - Pacific   2,985,506    3,104,913    7,260,557    6,439,377 
Eliminated  $3,088,755   $3,210,581   $7,552,767   $6,788,722 
                     
Net income (loss) after taxes and before non-controlling interest:                    
Corporate headquarters  $289,652   $(394,375)  $919,914   $(127,742)
North America   (3,702)   (86,722)   82,677    (213,730)
Europe   (103,219)   (575,533)   (586,607)   (973,972)
Asia - Pacific   4,059,800    1,039,158    986,613    4,287,015 
Consolidated  $4,242,531   $(17,472)  $1,402,597   $2,971,571 
                     
Depreciation and amortization:                    
North America  $657   $451   $1,866   $1,544 
Europe   65,584    88,987    207,186    288,481 
Asia - Pacific   716,725    858,495    2,310,417    2,579,646 
Consolidated  $782,966   $947,933   $2,519,469   $2,869,671 
                     
Interest expense:                    
Corporate headquarters  $7,834   $8,105   $16,226   $28,111 
North America   -    -    -    - 
Europe   1,806    1,766    8,146    8,050 
Asia - Pacific   178,497    76,045    487,738    241,576 
Consolidated  $188,137   $85,916   $512,110   $277,737 
                     
Income tax expense:                    
Corporate headquarters  $-   $-   $-   $(43,354)
North America   1,600    400    1,600    46,154 
Europe   2,822    -    2,822    9,524 
Asia - Pacific   223,296    157,204    636,700    514,413 
Consolidated  $227,718   $157,604   $641,122   $526,737 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2023

(Unaudited)

 

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

 

   For the Nine Months 
   Ended March 31, 
   2023   2022 
Capital expenditures:          
North America  $4,880   $- 
Europe   31,519    134,450 
Asia - Pacific   1,538,660    1,546,406 
Consolidated  $1,575,059   $1,680,856