XML 34 R22.htm IDEA: XBRL DOCUMENT v3.23.3
OPERATING SEGMENTS
 3 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 15– 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, 2023 and June 30, 2023:

 

   As of   As of 
   September 30,
2023		   June 30,
2023		 
Identifiable assets:          
Corporate headquarters  $829,095   $878,899 
North America   7,107,857    7,344,122 
Europe   8,756,636    8,716,656 
Asia - Pacific   39,171,445    41,439,733 
Consolidated  $55,865,033   $58,379,410 

 

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

 

   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
   2023   2022 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $-   $1,124,814   $283,801    1,408,615   $14,000   $1,065,048   $46,240    1,125,288 
Europe   4,316    713,988    1,843,729    2,562,033    48,355    493,543    1,705,437    2,247,335 
Asia-Pacific   1,276,133    4,673,441    4,321,959    10,271,533    187,605    4,458,243    4,687,648    9,333,496 
Total  $1,280,449   $6,512,243   $6,449,489   $14,242,181   $249,960   $6,016,834   $6,439,325   $12,706,119 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2023

(Unaudited)

 

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

 

   2023   2022 
   For the Three Months 
   Ended September 30, 
   2023   2022 
Revenues from unaffiliated customers:          
North America  $1,408,615   $1,125,288 
Europe   2,562,033    2,247,335 
Asia - Pacific   10,271,533    9,333,496 
Revenue from unaffiliated   14,242,181    12,706,119 
Revenue from affiliated customers          
Asia - Pacific   -    - 
Revenue from affiliated   -    - 
Consolidated  $14,242,181   $12,706,119 
           
Intercompany revenue          
Europe  $100,317   $95,725 
Asia - Pacific   2,620,319    1,729,953 
Eliminated  $2,720,636   $1,825,678 
           
Net income (loss) after taxes and before non-controlling interest:          
Corporate headquarters  $(303,722)  $1,327,200 
North America   (55,947)   (18,947)
Europe   (91,884)   (319,755)
Asia - Pacific   742,616    (1,426,469)
Consolidated  $291,063   $(437,971)
           
Depreciation and amortization:          
North America  $491   $482 
Europe   62,901    75,171 
Asia - Pacific   467,394    769,350 
Consolidated  $530,786   $845,003 
           
Interest expense:          
Corporate headquarters  $6,121   $2,480 
Europe   4,642    3,638 
Asia - Pacific   265,254    115,492 
Consolidated  $276,017   $121,610 
           
Income tax expense:          
Asia - Pacific  $121,895   $193,348 
Consolidated  $121,895   $193,348 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2023

(Unaudited)

 

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

 

   2023   2022 
   For the Three Months 
   Ended September 30, 
   2023   2022 
Capital expenditures:          
North America  $-   $1,133 
Europe   333,754    - 
Asia - Pacific   37,876    1,346,468 
Consolidated  $371,630   $1,347,601