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OPERATING SEGMENTS | 9 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
OPERATING SEGMENTS | NOTE 16– 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, 2024 and June 30, 2023: SUMMARY OF IDENTIFIABLE ASSETS
|  | As of |  |  | As of |
|  | March 31, 2024 |  |  | June 30, 2023 |
Identifiable assets: |  |  |  |  |  |  |  |
Corporate headquarters |  | $ | 984,161 |  |  | $ | 878,899 |
North America |  |  | 6,060,509 |  |  |  | 7,344,122 |
Europe |  |  | 9,296,634 |  |  |  | 8,716,656 |
Asia - Pacific |  |  | 46,965,482 |  |  |  | 41,439,733 |
Consolidated |  | $ | 63,306,786 |  |  | $ | 58,379,410 |
Identifiable assets |  | $ | 63,306,786 |  |  | $ | 58,379,410 |
NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2024 (Unaudited) The following table presents a summary of revenue streams by segment for the three months ended March 31, 2024 and 2023: SUMMARY OF REVENUE STREAMS
|  | License fees |  |  | Subscription and support |  |  | Services |  |  | Total |  |  | License fees |  |  | Subscription and support |  |  | Services |  |  | Total |
|  | 2024 |  |  | 2023 |
|  | License fees |  |  | Subscription and support |  |  | Services |  |  | Total |  |  | License fees |  |  | Subscription and support |  |  | Services |  |  | Total |
North America |  | $ | - |  |  | $ | 1,161,417 |  |  | $ | 203,657 |  |  | $ | 1,365,074 |  |  | $ | - |  |  | $ | 1,075,286 |  |  | $ | 290,270 |  |  | $ | 1,365,556 |
Europe |  |  | 92,925 |  |  |  | 869,429 |  |  |  | 2,083,430 |  |  |  | 3,045,784 |  |  |  | 65,177 |  |  |  | 665,585 |  |  |  | 1,819,610 |  |  |  | 2,550,372 |
Asia-Pacific |  |  | 465,415 |  |  |  | 5,109,512 |  |  |  | 5,478,731 |  |  |  | 11,053,658 |  |  |  | 1,917,808 |  |  |  | 4,915,211 |  |  |  | 2,757,442 |  |  |  | 9,590,461 |
Total |  | $ | 558,340 |  |  | $ | 7,140,358 |  |  | $ | 7,765,818 |  |  | $ | 15,464,516 |  |  | $ | 1,982,985 |  |  | $ | 6,656,082 |  |  | $ | 4,867,322 |  |  | $ | 13,506,389 |
The following table presents a summary of revenue streams by segment for the nine months ended March 31, 2024 and 2023:
|  | License fees |  |  | Subscription and support |  |  | Services |  |  | Total |  |  | License fees |  |  | Subscription and support |  |  | Services |  |  | Total |
|  | 2024 |  |  | 2023 |
|  | License fees |  |  | Subscription and support |  |  | Services |  |  | Total |  |  | License fees |  |  | Subscription and support |  |  | Services |  |  | Total |
North America |  | $ | - |  |  | $ | 3,454,455 |  |  | $ | 784,455 |  |  | $ | 4,238,910 |  |  | $ | 28,000 |  |  | $ | 3,251,397 |  |  | $ | 809,299 |  |  | $ | 4,088,696 |
Europe |  |  | 101,891 |  |  |  | 2,457,513 |  |  |  | 5,520,770 |  |  |  | 8,080,174 |  |  |  | 115,416 |  |  |  | 1,847,690 |  |  |  | 5,680,302 |  |  |  | 7,643,408 |
Asia-Pacific |  |  | 4,727,351 |  |  |  | 14,568,414 |  |  |  | 13,329,789 |  |  |  | 32,625,554 |  |  |  | 2,105,413 |  |  |  | 14,076,498 |  |  |  | 10,688,851 |  |  |  | 26,870,762 |
Total |  | $ | 4,829,242 |  |  | $ | 20,480,382 |  |  | $ | 19,635,014 |  |  | $ | 44,944,638 |  |  | $ | 2,248,829 |  |  | $ | 19,175,585 |  |  | $ | 17,178,452 |  |  | $ | 38,602,866 |
Revenue |  | $ | 4,829,242 |  |  | $ | 20,480,382 |  |  | $ | 19,635,014 |  |  | $ | 44,944,638 |  |  | $ | 2,248,829 |  |  | $ | 19,175,585 |  |  | $ | 17,178,452 |  |  | $ | 38,602,866 |
NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2024 (Unaudited) The following table presents a summary of operating information for the three and nine months ended March 31: SUMMARY OF OPERATING INFORMATION
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | For the Three Months |  |  | For the Nine Months |
|  | Ended March 31, |  |  | Ended March 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Revenues from unaffiliated customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 1,365,074 |  |  | $ | 1,365,556 |  |  | $ | 4,238,910 |  |  | $ | 4,088,696 |
Europe |  |  | 3,045,784 |  |  |  | 2,550,372 |  |  |  | 8,080,174 |  |  |  | 7,643,408 |
Asia - Pacific |  |  | 11,053,658 |  |  |  | 9,590,461 |  |  |  | 32,625,554 |  |  |  | 26,870,762 |
Revenues from unaffiliated customers |  |  | 15,464,516 |  |  |  | 13,506,389 |  |  |  | 44,944,638 |  |  |  | 38,602,866 |
Revenue from affiliated customers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asia - Pacific |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Revenue from affiliated customers |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Consolidated |  | $ | 15,464,516 |  |  | $ | 13,506,389 |  |  | $ | 44,944,638 |  |  | $ | 38,602,866 |
Revenue |  | $ | 15,464,516 |  |  | $ | 13,506,389 |  |  | $ | 44,944,638 |  |  | $ | 38,602,866 |
Intercompany revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Europe |  | $ | 100,315 |  |  | $ | 103,249 |  |  | $ | 300,732 |  |  | $ | 292,210 |
Asia - Pacific |  |  | 2,601,585 |  |  |  | 3,026,986 |  |  |  | 8,087,181 |  |  |  | 7,720,764 |
Eliminated |  | $ | 2,701,900 |  |  | $ | 3,130,235 |  |  | $ | 8,387,913 |  |  | $ | 8,012,974 |
Revenue |  | $ | 2,701,900 |  |  | $ | 3,130,235 |  |  | $ | 8,387,913 |  |  | $ | 8,012,974 |
Net income (loss) after taxes and before non-controlling interest: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate headquarters |  | $ | (1,003,157 | ) |  | $ | 289,652 |  |  | $ | (2,229,549 | ) |  | $ | 919,914 |
North America |  |  | 7,679 |  |  |  | (3,702 | ) |  |  | (61,546 | ) |  |  | 82,677 |
Europe |  |  | 14,516 |  |  |  | (103,219 | ) |  |  | (228,303 | ) |  |  | (586,607 | )
Asia - Pacific |  |  | 1,296,832 |  |  |  | 4,059,800 |  |  |  | 4,109,146 |  |  |  | 986,613 |
Consolidated |  | $ | 315,870 |  |  | $ | 4,242,531 |  |  | $ | 1,589,748 |  |  | $ | 1,402,597 |
Net income (loss) after taxes and before non-controlling interest |  | $ | 315,870 |  |  | $ | 4,242,531 |  |  | $ | 1,589,748 |  |  | $ | 1,402,597 |
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 407 |  |  | $ | 657 |  |  | $ | 1,305 |  |  | $ | 1,866 |
Europe |  |  | 58,469 |  |  |  | 65,584 |  |  |  | 179,128 |  |  |  | 207,186 |
Asia - Pacific |  |  | 332,414 |  |  |  | 716,725 |  |  |  | 1,170,806 |  |  |  | 2,310,417 |
Consolidated |  | $ | 391,290 |  |  | $ | 782,966 |  |  | $ | 1,351,239 |  |  | $ | 2,519,469 |
Depreciation and amortization |  | $ | 391,290 |  |  | $ | 782,966 |  |  | $ | 1,351,239 |  |  | $ | 2,519,469 |
Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate headquarters |  | $ | 12,028 |  |  | $ | 7,834 |  |  | $ | 24,687 |  |  | $ | 16,226 |
North America |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Europe |  |  | 508 |  |  |  | 1,806 |  |  |  | 6,984 |  |  |  | 8,146 |
Asia - Pacific |  |  | 277,141 |  |  |  | 178,497 |  |  |  | 824,345 |  |  |  | 487,738 |
Consolidated |  | $ | 289,677 |  |  | $ | 188,137 |  |  | $ | 856,016 |  |  | $ | 512,110 |
Interest Expense |  | $ | 289,677 |  |  | $ | 188,137 |  |  | $ | 856,016 |  |  | $ | 512,110 |
Income tax expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate headquarters |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | (44,154 | )
North America |  |  | 800 |  |  |  | 1,600 |  |  |  | 800 |  |  |  | 45,754 |
Europe |  |  | - |  |  |  | 2,822 |  |  |  | (93,583 | ) |  |  | 2,822 |
Asia - Pacific |  |  | 145,769 |  |  |  | 223,296 |  |  |  | 511,300 |  |  |  | 636,700 |
Consolidated |  | $ | 146,569 |  |  | $ | 227,718 |  |  | $ | 418,517 |  |  | $ | 641,122 |
Income tax expense |  | $ | 146,569 |  |  | $ | 227,718 |  |  | $ | 418,517 |  |  | $ | 641,122 |
NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2024 (Unaudited) The following table presents a summary of capital expenditures for the nine months ended March 31: SUMMARY OF CAPITAL EXPENDITURES
|  | 2024 |  |  | 2023 |
|  | For the Nine Months |
|  | Ended March 31, |
|  | 2024 |  |  | 2023 |
Capital expenditures: |  |  |  |  |  |  |  |
North America |  | $ | - |  |  | $ | 4,880 |
Europe |  |  | 592,432 |  |  |  | 31,519 |
Asia - Pacific |  |  | 355,905 |  |  |  | 1,538,660 |
Consolidated |  | $ | 948,337 |  |  | $ | 1,575,059 |
Capital expenditures |  | $ | 948,337 |  |  | $ | 1,575,059 |

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- Definition The entire disclosure for reporting segments including data and tables. 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