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OPERATING SEGMENTS
 9 Months Ended
Mar. 31, 2025
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

March 31, 2025

(Unaudited)

 

The following table presents a summary of identifiable assets as of March 31, 2025 and June 30, 2024:

 

   As of   As of 
   March 31, 2025   June 30, 2024 
Identifiable assets:          
Corporate headquarters  $978,584   $808,385 
North America   7,696,063    6,114,142 
Europe   10,981,036    9,410,098 
Asia - Pacific   38,487,896    47,853,817 
Consolidated  $58,143,579   $64,186,442 

 

The following table presents a summary of revenue streams by segment for the three months ended March 31, 2025 and 2024:

 

   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
   2025   2024 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $-   $1,340,088   $2,529,815   $3,869,903   $-   $1,161,417   $203,657   $ 1,365,074 
Europe   1,198    1,215,438    4,678,504    5,895,140    92,925    869,429    2,083,430    3,045,784 
Asia-Pacific   -    5,332,834    2,446,080    7,778,914    465,415    5,109,512    5,478,731    11,053,658 
Total  $1,198   $7,888,360   $9,654,399   $17,543,957   $558,340   $7,140,358   $7,765,818   $15,464,516 

 

The following table presents a summary of revenue streams by segment for the nine months ended March 31, 2025 and 2024:

 

   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
   2025   2024 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $-   $4,208,995   $5,736,842   $9,945,837   $-   $3,454,455   $784,455   $4,238,910 
Europe   75,115    3,311,068    8,265,423    11,651,606    101,891    2,457,513    5,520,770    8,080,174 
Asia-Pacific   -    17,203,397    8,878,276    26,081,673    4,727,351    14,568,414    13,329,789    32,625,554 
Total  $75,115   $24,723,460   $22,880,541   $47,679,116   $4,829,242   $20,480,382   $19,635,014   $44,944,638 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2025

(Unaudited)

 

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

 

   2025   2024   2025   2024 
  

For the Three Months

Ended March 31,

    

For the Nine Months

Ended March 31,

 
   2025   2024   2025   2024 
Revenues from unaffiliated customers:                    
North America  $3,869,903   $1,365,074   $9,945,837   $4,238,910 
Europe   5,895,140    3,045,784    11,651,606    8,080,174 
Asia - Pacific   7,778,914    11,053,658    26,081,673    32,625,554 
Revenues from unaffiliated customers   17,543,957    15,464,516    47,679,116    44,944,638 
Revenue from affiliated customers                    
Asia - Pacific   -    -    -    - 
Revenue from affiliated customers   -    -    -    - 
Consolidated  $17,543,957   $15,464,516   $47,679,116   $44,944,638 
                     
Intercompany revenue                    
Europe  $(55,939)  $100,315   $149,375   $300,732 
Asia - Pacific   5,303,033    2,601,585    13,286,176    8,087,181 
Eliminated  $5,247,094   $2,701,900   $13,435,551   $8,387,913 
                     
Net income (loss) after taxes and before non-controlling interest:                    
Corporate headquarters  $(209,221)  $(1,003,157)  $(974,367)  $(2,229,549)
North America   859,320    7,679    1,093,581    (61,546)
Europe   951,208    14,516    (22,468)   (228,303)
Asia - Pacific   233,123    1,296,832    769,187    4,109,146 
Consolidated  $1,834,430   $315,870   $865,933   $1,589,748 
                    
Depreciation and amortization:                    
North America  $824   $407   $1,894   $1,305 
Europe   41,357    58,469    154,216    179,128 
Asia - Pacific   321,322    332,414    945,975    1,170,806 
Consolidated  $363,503   $391,290   $1,102,085   $1,351,239 
                     
Interest expense:                    
Corporate headquarters  $13,795   $12,028   $34,246   $24,687 
Europe   -    508    12,059    6,984 
Asia - Pacific   180,947    277,141    643,042    824,345 
Consolidated  $194,742   $289,677   $689,347   $856,016 
                     
Income tax expense:                    
North America  $800   $800   $800   $800 
Europe   -    -    -    (93,583)
Asia - Pacific   150,534    145,769    711,965    511,300 
Consolidated  $151,334   $146,569   $712,765   $418,517 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2025

(Unaudited)

 

The following table presents a summary of capital expenditures for the nine months ended March 31:

 

   2025   2024 
   For the Nine Months 
   Ended March 31, 
   2025   2024 
Capital expenditures:          
North America  $17,331   $- 
Europe   72,551    592,432 
Asia - Pacific   807,861    355,905 
Consolidated  $897,743   $948,337