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OPERATING SEGMENTS | 6 Months Ended
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Dec. 31, 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 December 31, 2023 and June 30, 2023: SUMMARY OF IDENTIFIABLE ASSETS
|  | As of |  |  | As of |
|  | December 31, 2023 |  |  | June 30, 2023 |
Identifiable assets: |  |  |  |  |  |  |  |
Corporate headquarters |  | $ | 1,059,682 |  |  | $ | 878,899 |
North America |  |  | 6,409,946 |  |  |  | 7,344,122 |
Europe |  |  | 9,301,556 |  |  |  | 8,716,656 |
Asia - Pacific |  |  | 40,700,402 |  |  |  | 41,439,733 |
Consolidated |  | $ | 57,471,586 |  |  | $ | 58,379,410 |
Identifiable assets |  | $ | 57,471,586 |  |  | $ | 58,379,410 |
NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements December 31, 2023 (Unaudited) The following table presents a summary of revenue streams by segment for the three months ended December 31, 2023 and 2022: SUMMARY OF REVENUE STREAMS
|  | 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 |  | $ | - |  |  | $ | 1,168,224 |  |  | $ | 296,997 |  |  | $ | 1,465,221 |  |  | $ | 14,000 |  |  | $ | 1,111,063 |  |  | $ | 472,789 |  |  | $ | 1,597,852 |
Europe |  |  | 4,650 |  |  |  | 874,096 |  |  |  | 1,593,611 |  |  |  | 2,472,357 |  |  |  | 1,884 |  |  |  | 688,562 |  |  |  | 2,155,255 |  |  |  | 2,845,701 |
Asia-Pacific |  |  | 2,985,803 |  |  |  | 4,785,461 |  |  |  | 3,529,099 |  |  |  | 11,300,363 |  |  |  | - |  |  |  | 4,703,044 |  |  |  | 3,243,761 |  |  |  | 7,946,805 |
Total |  | $ | 2,990,453 |  |  | $ | 6,827,781 |  |  | $ | 5,419,707 |  |  | $ | 15,237,941 |  |  | $ | 15,884 |  |  | $ | 6,502,669 |  |  | $ | 5,871,805 |  |  | $ | 12,390,358 |
The following table presents a summary of revenue streams by segment for the six months ended December 31, 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 |  | $ | - |  |  | $ | 2,293,038 |  |  | $ | 580,798 |  |  | $ | 2,873,836 |  |  | $ | 28,000 |  |  | $ | 2,176,111 |  |  | $ | 519,029 |  |  | $ | 2,723,140 |
Europe |  |  | 8,966 |  |  |  | 1,588,084 |  |  |  | 3,437,340 |  |  |  | 5,034,390 |  |  |  | 50,239 |  |  |  | 1,182,105 |  |  |  | 3,860,692 |  |  |  | 5,093,036 |
Asia-Pacific |  |  | 4,261,936 |  |  |  | 9,458,902 |  |  |  | 7,851,058 |  |  |  | 21,571,896 |  |  |  | 187,605 |  |  |  | 9,161,287 |  |  |  | 7,931,409 |  |  |  | 17,280,301 |
Total |  | $ | 4,270,902 |  |  | $ | 13,340,024 |  |  | $ | 11,869,196 |  |  | $ | 29,480,122 |  |  | $ | 265,844 |  |  | $ | 12,519,503 |  |  | $ | 12,311,130 |  |  | $ | 25,096,477 |
Revenue |  | $ | 4,270,902 |  |  | $ | 13,340,024 |  |  | $ | 11,869,196 |  |  | $ | 29,480,122 |  |  | $ | 265,844 |  |  | $ | 12,519,503 |  |  | $ | 12,311,130 |  |  | $ | 25,096,477 |
NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements December 31, 2023 (Unaudited) The following table presents a summary of operating information for the three and six months ended December 31: SUMMARY OF OPERATING INFORMATION
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | For the Three Months |  |  | For the Six Months |
|  | Ended December 31, |  |  | Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Revenues from unaffiliated customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 1,465,221 |  |  | $ | 1,597,852 |  |  | $ | 2,873,836 |  |  | $ | 2,723,140 |
Europe |  |  | 2,472,357 |  |  |  | 2,845,701 |  |  |  | 5,034,390 |  |  |  | 5,093,036 |
Asia - Pacific |  |  | 11,300,363 |  |  |  | 7,946,805 |  |  |  | 21,571,896 |  |  |  | 17,280,301 |
Revenues from unaffiliated |  |  | 15,237,941 |  |  |  | 12,390,358 |  |  |  | 29,480,122 |  |  |  | 25,096,477 |
Revenue from affiliated customers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asia - Pacific |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Revenue from affiliated |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Consolidated |  | $ | 15,237,941 |  |  | $ | 12,390,358 |  |  | $ | 29,480,122 |  |  | $ | 25,096,477 |
Revenue |  | $ | 15,237,941 |  |  | $ | 12,390,358 |  |  | $ | 29,480,122 |  |  | $ | 25,096,477 |
Intercompany revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Europe |  | $ | 100,100 |  |  | $ | 93,236 |  |  | $ | 200,417 |  |  | $ | 188,961 |
Asia - Pacific |  |  | 2,865,277 |  |  |  | 2,545,098 |  |  |  | 5,485,596 |  |  |  | 4,544,876 |
Eliminated |  | $ | 2,965,377 |  |  | $ | 2,638,334 |  |  | $ | 5,686,013 |  |  | $ | 4,733,837 |
Revenue |  | $ | 2,965,377 |  |  | $ | 2,638,334 |  |  | $ | 5,686,013 |  |  | $ | 4,733,837 |
Net income (loss) after taxes and before non-controlling interest: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate headquarters |  | $ | (922,670 | ) |  | $ | (696,938 | ) |  | $ | (1,226,392 | ) |  | $ | 630,262 |
North America |  |  | (13,278 | ) |  |  | 105,326 |  |  |  | (69,225 | ) |  |  | 86,379 |
Europe |  |  | (150,935 | ) |  |  | (163,633 | ) |  |  | (242,819 | ) |  |  | (483,388 | )
Asia - Pacific |  |  | 2,069,698 |  |  |  | (1,646,718 | ) |  |  | 2,812,314 |  |  |  | (3,073,187 | )
Consolidated |  | $ | 982,815 |  |  | $ | (2,401,963 | ) |  | $ | 1,273,878 |  |  | $ | (2,839,934 | )
Net income (loss) after taxes and before non-controlling interest |  | $ | 982,815 |  |  | $ | (2,401,963 | ) |  | $ | 1,273,878 |  |  | $ | (2,839,934 | )
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 407 |  |  | $ | 727 |  |  | $ | 898 |  |  | $ | 1,209 |
Europe |  |  | 57,758 |  |  |  | 66,431 |  |  |  | 120,659 |  |  |  | 141,602 |
Asia - Pacific |  |  | 370,998 |  |  |  | 824,342 |  |  |  | 838,392 |  |  |  | 1,593,692 |
Consolidated |  | $ | 429,163 |  |  | $ | 891,500 |  |  | $ | 959,949 |  |  | $ | 1,736,503 |
Depreciation and amortization |  | $ | 429,163 |  |  | $ | 891,500 |  |  | $ | 959,949 |  |  | $ | 1,736,503 |
Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate headquarters |  | $ | 6,538 |  |  | $ | 5,912 |  |  | $ | 12,659 |  |  | $ | 8,392 |
North America |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Europe |  |  | 1,834 |  |  |  | 2,702 |  |  |  | 6,476 |  |  |  | 6,340 |
Asia - Pacific |  |  | 281,950 |  |  |  | 193,749 |  |  |  | 547,204 |  |  |  | 309,241 |
Consolidated |  | $ | 290,322 |  |  | $ | 202,363 |  |  | $ | 566,339 |  |  | $ | 323,973 |
Interest Expense |  | $ | 290,322 |  |  | $ | 202,363 |  |  | $ | 566,339 |  |  | $ | 323,973 |
Income tax expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate headquarters |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | (44,154 | )
North America |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 44,154 |
Europe |  |  | (93,583 | ) |  |  | - |  |  |  | (93,583 | ) |  |  | - |
Asia - Pacific |  |  | 243,636 |  |  |  | 220,056 |  |  |  | 365,531 |  |  |  | 413,404 |
Consolidated |  | $ | 150,053 |  |  | $ | 220,056 |  |  | $ | 271,948 |  |  | $ | 413,404 |
Income tax expense |  | $ | 150,053 |  |  | $ | 220,056 |  |  | $ | 271,948 |  |  | $ | 413,404 |
NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements December 31, 2023 (Unaudited) The following table presents a summary of capital expenditures for the six months ended December 31: SUMMARY OF CAPITAL EXPENDITURES
|  | 2023 |  |  | 2022 |
|  | For the Six Months |
|  | Ended December 31, |
|  | 2023 |  |  | 2022 |
Capital expenditures: |  |  |  |  |  |  |  |
North America |  | $ | - |  |  | $ | 4,880 |
Europe |  |  | 417,104 |  |  |  | - |
Asia - Pacific |  |  | 153,480 |  |  |  | 1,247,445 |
Consolidated |  | $ | 570,584 |  |  | $ | 1,252,325 |
Capital expenditures |  | $ | 570,584 |  |  | $ | 1,252,325 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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