Non-Controlling Interest in Subsidiary
|12 Months Ended|
Jun. 30, 2019
|Noncontrolling Interest [Abstract]|
|Non-Controlling Interest in Subsidiary||
NOTE 22 – NON-CONTROLLING INTEREST IN SUBSIDIARY
The Company had non-controlling interests in several of its subsidiaries. The balance of non-controlling interest was as follows:
During the years ended June 30, 2019 and 2018, employees of NetSol PK exercised 20,000 and 67,000 options of common stock and NetSol PK received cash of $2,650 and $10,349, respectively. During the year ended June 30, 2018, the Company purchased 55,500 shares of common stock of NetSol PK from the open market for $33,987. Due to the exercise of options, the non-controlling interest increased from 33.79% at June 30, 2018 to 33.80% at June 30, 2019.
During the years ended June 30, 2019 and 2018, NetSol PK paid a cash dividend of $1,675,936 and $1,234,991, respectively.
On June 30, 2019, NTE entered into a share purchase agreement with Investec (“Investec Agreement”) to acquire the reaming 49% from Investec whereby VLS would become a wholly owned subsidiary. The Company purchased the remaining shares in an effort to consolidate minority interests and streamline operations. The purchase price was £500,000 ($635,000) with £250,000 being paid on June 30, 2019 and £250,000 ($317,500) due on December 31, 2019. The purchase price includes a contingency payment based on VLS achieving certain revenues. The maximum amount due under the contingency formula is £230,000 ($292,100). The Company determined the fair value of the contingency to be £230,000 ($292,100) at June 30, 2019 which is recorded in “Other Payables”.
The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef