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OPERATING SEGMENTS
 3 Months Ended
Sep. 30, 2024
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.

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2024

(Unaudited)

 

The following table presents a summary of identifiable assets as of September 30, 2024 and June 30, 2024:

 

   As of   As of 
  

September 30, 2024

  

June 30, 2024

 
Identifiable assets:          
Corporate headquarters  $941,042   $808,385 
North America   6,670,569    6,114,142 
Europe   9,028,022    9,410,098 
Asia - Pacific   46,160,026    47,853,817 
Consolidated  $62,799,659   $64,186,442 

 

The following table presents a summary of revenue streams by segment for the three months ended September 30, 2024 and 2023:

 

                                 
   2024   2023 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $-   $1,262,645   $1,606,016   $2,868,661   $-   $1,124,814   $283,801   $1,408,615 
Europe   1,229    892,772    1,601,285    2,495,286    4,316    713,988    1,843,729    2,562,033 
Asia-Pacific   -    6,037,054    3,197,497    9,234,551    1,276,133    4,673,441    4,321,959    10,271,533 
Total  $1,229   $8,192,471   $6,404,798   $14,598,498   $1,280,449   $6,512,243   $6,449,489   $14,242,181 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2024

(Unaudited)

 

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

 

         
   For the Three Months 
   Ended September 30, 
   2024   2023 
Revenues from unaffiliated customers:          
North America  $2,868,661   $1,408,615 
Europe   2,495,286    2,562,033 
Asia - Pacific   9,234,551    10,271,533 
Revenues from unaffiliated customers   14,598,498    14,242,181 
Revenue from affiliated customers          
Asia - Pacific   -    - 
Revenue from affiliated customers   -    - 
Consolidated  $14,598,498   $14,242,181 
           
Intercompany revenue          
Europe  $16,558   $100,317 
Asia - Pacific   3,269,344    2,620,319 
Eliminated  $3,285,902   $2,720,636 
           
Net income (loss) after taxes and before non-controlling interest:          
Corporate headquarters  $(662,058)  $(303,722)
North America   614,843    (55,947)
Europe   (522,998)   (91,884)
Asia - Pacific   787,922    742,616 
Consolidated  $217,709   $291,063 
           
Depreciation and amortization:          
North America  $471   $491 
Europe   59,680    62,901 
Asia - Pacific   305,846    467,394 
Consolidated  $365,997   $530,786 
           
Interest expense:          
Corporate headquarters  $9,392   $6,121 
Europe   -    4,642 
Asia - Pacific   248,827    265,254 
Consolidated  $258,219   $276,017 
           
Income tax expense:          
Asia - Pacific  $229,817   $121,895 
Consolidated  $229,817   $121,895 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2024

(Unaudited)

 

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

 

         
   For the Three Months 
   Ended September 30, 
   2024   2023 
Capital expenditures:          
North America  $3,841   $- 
Europe   37,494    333,754 
Asia - Pacific   59,402    37,876 
Consolidated  $100,737   $371,630