Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.22.0.1
OPERATING SEGMENTS
 6 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
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 December 31, 2021 and June 30, 2021:

SUMMARY OF IDENTIFIABLE ASSETS

    As of     As of  
    December 31,
2021		     June 30,
2021		  
Identifiable assets:                
Corporate headquarters   $ 2,147,024     $ 2,067,474  
North America     5,978,111       6,073,616  
Europe     9,763,859       10,363,611  
Asia - Pacific     63,609,797       68,101,560  
Consolidated   $ 81,498,791     $ 86,606,261  

 

The following table presents a summary of investment under equity method as of December 31, 2021 and June 30, 2021:

SUMMARY OF INVESTMENT UNDER EQUITY METHOD

    As of     As of  
    December 31,
2021		     June 30,
2021		  
Investment in associates under equity method:                
Corporate headquarters   $ 346,491     $ 396,403  
Asia - Pacific     2,575,176       2,759,449  
Consolidated   $ 2,921,667     $ 3,155,852  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2021

(Unaudited)

 

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

SUMMARY OF OPERATING INFORMATION

    For the Three Months     For the Six Months  
    Ended December 31,     Ended December 31,  
    2021     2020     2021     2020  
Revenues from unaffiliated customers:                                
North America   $ 1,060,379     $ 1,016,556     $ 1,990,613     $ 1,829,434  
Europe     2,122,094       2,726,206       5,394,993       5,878,097  
Asia - Pacific     12,290,489       9,378,698       21,508,117       18,061,307  
      15,472,962       13,121,460       28,893,723       25,768,838  
Revenue from affiliated customers                                
Asia - Pacific     -       -       -       -  
      -       -       -       -  
Consolidated   $ 15,472,962     $ 13,121,460     $ 28,893,723     $ 25,768,838  
                                 
Intercompany revenue                                
Europe   $ 116,479     $ 126,757     $ 243,677     $ 265,913  
Asia - Pacific     774,364       3,125,729       3,334,464       5,284,357  
Eliminated   $ 890,843     $ 3,252,486     $ 3,578,141     $ 5,550,270  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ 138,089     $ 1,173,146     $ 266,633     $ 2,340,941  
North America     (58,915 )     (47,019 )     (127,008 )     (328,816 )
Europe     (589,882 )     173,085       (398,439 )     776,101  
Asia - Pacific     2,949,256       (1,378,400 )     3,247,857       (1,743,937 )
Consolidated   $ 2,438,548     $ (79,188 )   $ 2,989,043     $ 1,044,289  
                                 
Depreciation and amortization:                                
North America   $ 527     $ 998     $ 1,093     $ 2,952  
Europe     100,646       108,929       199,494       216,937  
Asia - Pacific     840,559       825,394       1,721,151       1,644,471  
Consolidated   $ 941,732     $ 935,321     $ 1,921,738     $ 1,864,360  
                                 
Interest expense:                                
Corporate headquarters   $ 9,565     $ 4,897     $ 20,006     $ 10,931  
North America     -       726       -       1,935  
Europe     2,488       1,961       6,284       4,027  
Asia - Pacific     78,755       86,657       165,531       180,675  
Consolidated   $ 90,808     $ 94,241     $ 191,821     $ 197,568  
                                 
Income tax expense:                                
Corporate headquarters   $ -     $ -     $ 800     $ -  
North America     -       -       1,600       -  
Europe     9,524       92,359       9,524       204,037  
Asia - Pacific     191,982       153,075       357,209       305,691  
Consolidated   $ 201,506     $ 245,434     $ 369,133     $ 509,728  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2021

(Unaudited)

 

The following table presents a summary of capital expenditures for the six months ended December 31:

SUMMARY OF CAPITAL EXPENDITURES

    For the Six Months  
    Ended December 31,  
    2021     2020  
Capital expenditures:                
North America   $ -     $ 1,521  
Europe     89,451       301,233  
Asia - Pacific     684,502       947,141  
Consolidated   $ 773,953     $ 1,249,895