Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.22.4
OPERATING SEGMENTS
 6 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 18 – 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, 2022 and June 30, 2022:

 

    As of     As of  
    December 31, 2022     June 30, 2022  
Identifiable assets:                
Corporate headquarters   $ 1,106,983     $ 844,178  
North America     7,044,788       6,442,219  
Europe     8,920,116       8,727,530  
Asia - Pacific     47,744,012       56,594,705  
Consolidated   $ 64,815,899     $ 72,608,632  

 

The following table presents a summary of investment under equity method as of December 31, 2022 and June 30, 2022:

 

    As of     As of  
    December 31, 2022     June 30, 2022  
Investment in associates under equity method:                
Corporate headquarters   $ -     $ -  
Asia - Pacific     1,064,501       1,059,368  
Consolidated   $ 1,064,501     $ 1,059,368  
                 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2022

(Unaudited)

 

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

 

    For the Three Months     For the Six Months  
    Ended December 31,     Ended December 31,  
    2022     2021     2022     2021  
Revenues from unaffiliated customers:                                
North America   $ 1,597,852     $ 1,060,379     $ 2,723,140     $ 1,990,613  
Europe     2,845,701       2,122,094       5,093,036       5,394,993  
Asia - Pacific     7,946,805       12,290,489       17,280,301       21,508,117  
      12,390,358       15,472,962       25,096,477       28,893,723  
Revenue from affiliated customers                                
Asia - Pacific     -       -       -       -  
      -       -       -       -  
Consolidated   $ 12,390,358     $ 15,472,962     $ 25,096,477     $ 28,893,723  
                                 
Intercompany revenue                                
Europe   $ 93,236     $ 116,479     $ 188,961     $ 243,677  
Asia - Pacific     2,545,098       774,364       4,275,051       3,334,464  
Eliminated   $ 2,638,334     $ 890,843     $ 4,464,012     $ 3,578,141  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ (696,938 )   $ 138,089     $ 630,262     $ 266,633  
North America     105,326       (58,915 )     86,379       (127,008 )
Europe     (163,633 )     (589,882 )     (483,388 )     (398,439 )
Asia - Pacific     (1,646,718 )     2,949,256       (3,073,187 )     3,247,857  
Consolidated   $ (2,401,963 )   $ 2,438,548     $ (2,839,934 )   $ 2,989,043  
                                 
Depreciation and amortization:                                
North America   $ 727     $ 527     $ 1,209     $ 1,093  
Europe     66,431       100,646       141,602       199,494  
Asia - Pacific     824,342       840,559       1,593,692       1,721,151  
Consolidated   $ 891,500     $ 941,732     $ 1,736,503     $ 1,921,738  
                                 
Interest expense:                                
Corporate headquarters   $ 5,912     $ 9,565     $ 8,392     $ 20,006  
North America     -       -       -       -  
Europe     2,702       2,488       6,340       6,284  
Asia - Pacific     193,749       78,755       309,241       165,531  
Consolidated   $ 202,363     $ 90,808     $ 323,973     $ 191,821  
                                 
Income tax expense:                                
Corporate headquarters   $ -     $ -     $ -     $ (43,354 )
North America     -       -       -       45,754  
Europe     -       9,524       -       9,524  
Asia - Pacific     220,056       191,982       413,404       357,209  
Consolidated   $ 220,056     $ 201,506     $ 413,404     $ 369,133  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2022

(Unaudited)

 

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

 

    For the Six Months  
    Ended December 31,  
    2022     2021  
Capital expenditures:                
North America   $ 4,880     $ -  
Europe     -       89,451  
Asia - Pacific     1,247,445       684,502  
Consolidated   $ 1,252,325     $ 773,953