| OPERATING SEGMENTS |
NOTE
19 – 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.
The
following table presents a summary of identifiable assets as of September 30, 2021 and June 30, 2021:
SUMMARY OF IDENTIFIABLE ASSETS
| |
|
As of |
|
|
As of |
|
| |
|
September 30,
2021
|
|
|
June 30,
2021
|
|
| Identifiable assets: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
2,089,513 |
|
|
$ |
2,067,474 |
|
| North America |
|
|
5,890,236 |
|
|
|
6,073,616 |
|
| Europe |
|
|
10,294,197 |
|
|
|
10,363,611 |
|
| Asia - Pacific |
|
|
62,614,718 |
|
|
|
68,101,560 |
|
| Consolidated |
|
$ |
80,888,664 |
|
|
$ |
86,606,261 |
|
The
following table presents a summary of investment under equity method as of September 30, 2021 and June 30, 2021:
SUMMARY OF INVESTMENT UNDER EQUITY METHOD
| |
|
As of |
|
|
As of |
|
| |
|
September 30,
2021
|
|
|
June 30,
2021
|
|
| Investment in associates under equity method: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
367,512 |
|
|
$ |
396,403 |
|
| Asia - Pacific |
|
|
2,627,592 |
|
|
|
2,759,449 |
|
| Consolidated |
|
$ |
2,995,104 |
|
|
$ |
3,155,852 |
|
NETSOL
TECHNOLOGIES, INC.
Notes
to Condensed Consolidated Financial Statements
September
30, 2021
(Unaudited)
The
following table presents a summary of operating information for the three months ended September 30:
SUMMARY OF OPERATING INFORMATION
| |
|
For the Three Months |
|
| |
|
Ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
| Revenues from unaffiliated customers: |
|
|
|
|
|
|
|
|
| North America |
|
$ |
930,234 |
|
|
$ |
812,878 |
|
| Europe |
|
|
3,272,899 |
|
|
|
3,151,891 |
|
| Asia - Pacific |
|
|
9,217,628 |
|
|
|
8,682,609 |
|
| |
|
|
13,420,761 |
|
|
|
12,647,378 |
|
| Revenue from affiliated customers |
|
|
|
|
|
|
|
|
| Asia - Pacific |
|
|
- |
|
|
|
- |
|
| |
|
|
- |
|
|
|
- |
|
| Consolidated |
|
$ |
13,420,761 |
|
|
$ |
12,647,378 |
|
| |
|
|
|
|
|
|
|
|
| Intercompany revenue |
|
|
|
|
|
|
|
|
| Europe |
|
$ |
127,198 |
|
|
$ |
139,156 |
|
| Asia - Pacific |
|
|
2,560,100 |
|
|
|
2,158,628 |
|
| Eliminated |
|
$ |
2,687,298 |
|
|
$ |
2,297,784 |
|
| |
|
|
|
|
|
|
|
|
| Net income (loss) after taxes and before non-controlling interest: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
128,544 |
|
|
$ |
1,167,795 |
|
| North America |
|
|
(68,093 |
) |
|
|
(281,797
|
) |
| Europe |
|
|
191,443 |
|
|
|
603,016 |
|
| Asia - Pacific |
|
|
298,601 |
|
|
|
(365,537 |
) |
| Consolidated |
|
$ |
550,495 |
|
|
$ |
1,123,477 |
|
| |
|
|
|
|
|
|
|
|
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
| North America |
|
$ |
566 |
|
|
$ |
1,954 |
|
| Europe |
|
|
98,848 |
|
|
|
108,008 |
|
| Asia - Pacific |
|
|
880,592 |
|
|
|
819,077 |
|
| Consolidated |
|
$ |
980,006 |
|
|
$ |
929,039 |
|
| |
|
|
|
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
10,441 |
|
|
$ |
6,034 |
|
| North America |
|
|
- |
|
|
|
1,209 |
|
| Europe |
|
|
3,796 |
|
|
|
2,066 |
|
| Asia - Pacific |
|
|
86,776 |
|
|
|
94,018 |
|
| Consolidated |
|
$ |
101,013 |
|
|
$ |
103,327 |
|
| |
|
|
|
|
|
|
|
|
| Income tax expense: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
800 |
|
|
$ |
- |
|
| North America |
|
|
1,600 |
|
|
|
- |
|
| Europe |
|
|
- |
|
|
|
111,678 |
|
| Asia - Pacific |
|
|
165,227 |
|
|
|
152,616 |
|
| Consolidated |
|
$ |
167,627 |
|
|
$ |
264,294 |
|
NETSOL
TECHNOLOGIES, INC.
Notes
to Condensed Consolidated Financial Statements
September
30, 2021
(Unaudited)
The
following table presents a summary of capital expenditures for the three months ended September 30:
SUMMARY OF CAPITAL EXPENDITURES
| |
|
For the Three Months |
|
| |
|
Ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
| Capital expenditures: |
|
|
|
|
|
|
|
|
| North America |
|
$ |
- |
|
|
$ |
1,521 |
|
| Europe |
|
|
54,380 |
|
|
|
57,429 |
|
| Asia - Pacific |
|
|
161,732 |
|
|
|
430,339 |
|
| Consolidated |
|
$ |
216,112 |
|
|
$ |
489,289 |
|
|