NETSOL Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

6 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

NOTE 10 - PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

	As of			As of
	December 31, 2020			June 30, 2020

Office Furniture and Equipment	$	3,213,526		$	3,143,833
Computer Equipment		21,331,085			19,256,543
Assets Under Capital Leases		1,511,557			1,443,423
Building		6,123,262			5,848,813
Land		1,586,153			1,512,905
Capital Work In Progress		30,079			27,648
Autos		1,475,366			1,348,405
Improvements		38,062			36,929
Subtotal		35,309,090			32,618,499
Accumulated Depreciation		(23,099,590	)		(21,288,868	)
Property and Equipment, Net	$	12,209,500		$	11,329,631

For the three and six months ended December 31, 2020, depreciation expense totaled $485,456 and $981,723, respectively. Of these amounts, $263,884 and $538,361, respectively, are reflected in cost of revenues. For the three and six months ended December 31, 2019, depreciation expense totaled $484,662 and $950,113, respectively. Of these amounts, $269,183 and $532,247, respectively, are reflected in cost of revenues.

Following is a summary of fixed assets held under finance leases as of December 31, 2020 and June 30, 2020:

	As of			As of
	December 31, 2020			June 30, 2020
Computers and Other Equipment	$	362,337		$	328,621
Furniture and Fixtures		56,722			51,119
Vehicles		1,092,498			1,063,683
Total		1,511,557			1,443,423
Less: Accumulated Depreciation - Net		(736,767	)		(667,096	)
	$	774,790		$	776,327

Finance lease term and discount rate were as follows:

	As of
	December 31, 2020

Weighted average remaining lease term - Finance leases		1.01 Years

Weighted average discount rate - Finance leases		7.6	%