Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.23.3
OPERATING SEGMENTS
 3 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 15– 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, 2023 and June 30, 2023:

 

    As of     As of  
    September 30,
2023		     June 30,
2023		  
Identifiable assets:                
Corporate headquarters   $ 829,095     $ 878,899  
North America     7,107,857       7,344,122  
Europe     8,756,636       8,716,656  
Asia - Pacific     39,171,445       41,439,733  
Consolidated   $ 55,865,033     $ 58,379,410  

 

The following table presents a summary of revenue streams by segment for the three months ended September 30, 2023 and 2022:

 

    License fees     Subscription and support     Services     Total     License fees     Subscription and support     Services     Total  
    2023     2022  
    License fees     Subscription and support     Services     Total     License fees     Subscription and support     Services     Total  
                                                 
North America   $ -     $ 1,124,814     $ 283,801       1,408,615     $ 14,000     $ 1,065,048     $ 46,240       1,125,288  
Europe     4,316       713,988       1,843,729       2,562,033       48,355       493,543       1,705,437       2,247,335  
Asia-Pacific     1,276,133       4,673,441       4,321,959       10,271,533       187,605       4,458,243       4,687,648       9,333,496  
Total   $ 1,280,449     $ 6,512,243     $ 6,449,489     $ 14,242,181     $ 249,960     $ 6,016,834     $ 6,439,325     $ 12,706,119  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2023

(Unaudited)

 

The following table presents a summary of operating information for the three months ended September 30:

 

    2023     2022  
    For the Three Months  
    Ended September 30,  
    2023     2022  
Revenues from unaffiliated customers:                
North America   $ 1,408,615     $ 1,125,288  
Europe     2,562,033       2,247,335  
Asia - Pacific     10,271,533       9,333,496  
Revenue from unaffiliated     14,242,181       12,706,119  
Revenue from affiliated customers                
Asia - Pacific     -       -  
Revenue from affiliated     -       -  
Consolidated   $ 14,242,181     $ 12,706,119  
                 
Intercompany revenue                
Europe   $ 100,317     $ 95,725  
Asia - Pacific     2,620,319       1,729,953  
Eliminated   $ 2,720,636     $ 1,825,678  
                 
Net income (loss) after taxes and before non-controlling interest:                
Corporate headquarters   $ (303,722 )   $ 1,327,200  
North America     (55,947 )     (18,947 )
Europe     (91,884 )     (319,755 )
Asia - Pacific     742,616       (1,426,469 )
Consolidated   $ 291,063     $ (437,971 )
                 
Depreciation and amortization:                
North America   $ 491     $ 482  
Europe     62,901       75,171  
Asia - Pacific     467,394       769,350  
Consolidated   $ 530,786     $ 845,003  
                 
Interest expense:                
Corporate headquarters   $ 6,121     $ 2,480  
Europe     4,642       3,638  
Asia - Pacific     265,254       115,492  
Consolidated   $ 276,017     $ 121,610  
                 
Income tax expense:                
Asia - Pacific   $ 121,895     $ 193,348  
Consolidated   $ 121,895     $ 193,348  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2023

(Unaudited)

 

The following table presents a summary of capital expenditures for the three months ended September 30:

 

    2023     2022  
    For the Three Months  
    Ended September 30,  
    2023     2022  
Capital expenditures:                
North America   $ -     $ 1,133  
Europe     333,754       -  
Asia - Pacific     37,876       1,346,468  
Consolidated   $ 371,630     $ 1,347,601