Related Party Transactions
|12 Months Ended|
Jun. 30, 2019
|Related Party Transactions [Abstract]|
|Related Party Transactions||
NOTE 5 – RELATED PARTY TRANSACTIONS
In November 2004, the Company entered into a joint venture agreement called NetSol Innovation with 1insurer, formerly Innovation Group. NetSol-Innovation provides support services to 1insurer. During the years ended June 30, 2019 and 2018, NetSol Innovation provided services of $67,286 and $3,286,649, respectively. Accounts receivable, net of allowance at June 30, 2019 and 2018 were $2,130,041 and $2,521,533, respectively.
Investec Asset Finance
In October 2011, NTE entered into an agreement with Investec Asset Finance to acquire VLS. NTE and VLS provide support services to Investec. During the years ended June 30, 2019 and 2018, NTE and VLS provided maintenance and services of $1,150,254 and $2,111,315, respectively. Accounts receivable at June 30, 2019 and 2018 were $115,970 and $379,521, respectively.
On May 31, 2017, Faizaan Ghauri, son of CEO Najeeb Ghauri, and an employee of the Company was appointed CEO of WRLD3D, a non-public company. On March 2, 2017, the Company purchased a 4.9% interest in WRLD3D for $1,111,111 and the Company’s subsidiary Netsol PK purchased a 12.2% investment in WRLD3D for $2,777,778 which was earned by providing IT and enterprise software solutions. (See Note 7 “Convertible Note Receivable – Related Party” and Note 11 “Long Term Investment”)
Najeeb Ghauri, CEO and Chairman of the Board, and Naeem Ghauri, Director, have a financial interest in G-Force, LLC which purchased a 4.9% investment in WRLD3D, Inc. for $1,111,111. (See Note 11 “Long Term Investment”)
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef