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OPERATING SEGMENTS
 6 Months Ended
Dec. 31, 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 

December 31, 2024 

(Unaudited)

 

The following table presents a summary of identifiable assets as of December 31, 2024 and June 30, 2024:

 

   As of   As of 
   December 31, 2024   June 30, 2024 
Identifiable assets:          
Corporate headquarters  $906,828   $808,385 
North America   7,246,715    6,114,142 
Europe   8,516,144    9,410,098 
Asia - Pacific   42,400,442    47,853,817 
Consolidated  $59,070,129   $64,186,442 

 

The following table presents a summary of revenue streams by segment for the three months ended December 31, 2024 and 2023:

 

                                 
   2024   2023 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $-   $1,606,262   $1,601,011   $3,207,273   $-   $1,168,224   $296,997   $1,465,221 
Europe   72,688    1,202,858    1,985,634    3,261,180    4,650    874,096    1,593,611    2,472,357 
Asia-Pacific   -    5,833,509    3,234,699    9,068,208    2,985,803    4,785,461    3,529,099    11,300,363 
Total  $72,688   $8,642,629   $6,821,344   $15,536,661   $2,990,453   $6,827,781   $5,419,707   $15,237,941 

 

The following table presents a summary of revenue streams by segment for the six months ended December 31, 2024 and 2023:

 

                                 
   2024   2023 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $-   $2,868,907   $3,207,027   $6,075,934   $-   $2,293,038   $580,798   $2,873,836 
Europe   73,917    2,095,630    3,586,919    5,756,466    8,966    1,588,084    3,437,340    5,034,390 
Asia-Pacific   -    11,870,563    6,432,196    18,302,759    4,261,936    9,458,902    7,851,058    21,571,896 
Total  $73,917   $16,835,100   $13,226,142   $30,135,159   $4,270,902   $13,340,024   $11,869,196   $29,480,122 

 

 

NETSOL TECHNOLOGIES, INC. 

Notes to Condensed Consolidated Financial Statements 

December 31, 2024 

(Unaudited)

 

The following table presents a summary of operating information for the three and six months ended December 31: 

 

   2024   2023   2024   2023 
   For the Three Months
Ended December 31,		   For the Six Months
Ended December 31,		 
   2024   2023   2024   2023 
Revenues from unaffiliated customers:                    
North America  $3,207,273   $1,465,221   $6,075,934   $2,873,836 
Europe   3,261,180    2,472,357    5,756,466    5,034,390 
Asia - Pacific   9,068,208    11,300,363    18,302,759    21,571,896 
Revenues from unaffiliated customers   15,536,661    15,237,941    30,135,159    29,480,122 
Revenue from affiliated customers                    
Asia - Pacific   -    -    -    - 
Revenue from affiliated customers   -    -    -    - 
Consolidated  $15,536,661   $15,237,941   $30,135,159   $29,480,122 
                     
Intercompany revenue                    
Europe  $188,756   $100,100   $205,314   $200,417 
Asia - Pacific   4,713,799    2,865,277    7,983,143    5,485,596 
Eliminated  $4,902,555   $2,965,377   $8,188,457   $5,686,013 
                     
Net income (loss) after taxes and before non-controlling interest:                    
Corporate headquarters  $(103,088)  $(922,670)  $(765,146)  $(1,226,392)
North America   (380,582)   (13,278)   234,261    (69,225)
Europe   (450,678)   (150,935)   (973,676)   (242,819)
Asia - Pacific   (251,858)   2,069,698    536,064    2,812,314 
Consolidated  $(1,186,206)  $982,815   $(968,497)  $1,273,878 
                     
Depreciation and amortization:                    
North America  $599   $407   $1,070   $898 
Europe   53,179    57,758    112,859    120,659 
Asia - Pacific   318,807    370,998    624,653    838,392 
Consolidated  $372,585   $429,163   $738,582   $959,949 
                     
Interest expense:                    
Corporate headquarters  $11,059   $6,538   $20,451   $12,659 
Europe   12,059    1,834    12,059    6,476 
Asia - Pacific   213,268    281,950    462,095    547,204 
Consolidated  $236,386   $290,322   $494,605   $566,339 
                     
Income tax expense:                    
Europe  $-   $(93,583)  $-   $(93,583)
Asia - Pacific   331,614    243,636    561,431    365,531 
Consolidated  $331,614   $150,053   $561,431   $271,948 

 

 

NETSOL TECHNOLOGIES, INC. 

Notes to Condensed Consolidated Financial Statements 

December 31, 2024 

(Unaudited)

 

The following table presents a summary of capital expenditures for the six months ended December 31:

 

   2024   2023 
   For the Six Months 
   Ended December 31, 
   2024   2023 
Capital expenditures:          
North America  $3,841   $- 
Europe   56,204    417,104 
Asia - Pacific   508,089    153,480 
Consolidated  $568,134   $570,584