Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.24.0.1
OPERATING SEGMENTS
 6 Months Ended
Dec. 31, 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 December 31, 2023 and June 30, 2023:

 

    As of     As of  
    December 31, 2023     June 30, 2023  
Identifiable assets:                
Corporate headquarters   $ 1,059,682     $ 878,899  
North America     6,409,946       7,344,122  
Europe     9,301,556       8,716,656  
Asia - Pacific     40,700,402       41,439,733  
Consolidated   $ 57,471,586     $ 58,379,410  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2023

(Unaudited)

 

The following table presents a summary of revenue streams by segment for the three months ended December 31, 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   $ -     $ 1,168,224     $ 296,997     $ 1,465,221     $ 14,000     $ 1,111,063     $ 472,789     $ 1,597,852  
Europe     4,650       874,096       1,593,611       2,472,357       1,884       688,562       2,155,255       2,845,701  
Asia-Pacific     2,985,803       4,785,461       3,529,099       11,300,363       -       4,703,044       3,243,761       7,946,805  
Total   $ 2,990,453     $ 6,827,781     $ 5,419,707     $ 15,237,941     $ 15,884     $ 6,502,669     $ 5,871,805     $ 12,390,358  

 

The following table presents a summary of revenue streams by segment for the six months ended December 31, 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   $ -     $ 2,293,038     $ 580,798     $ 2,873,836     $ 28,000     $ 2,176,111     $ 519,029     $ 2,723,140  
Europe     8,966       1,588,084       3,437,340       5,034,390       50,239       1,182,105       3,860,692       5,093,036  
Asia-Pacific     4,261,936       9,458,902       7,851,058       21,571,896       187,605       9,161,287       7,931,409       17,280,301  
Total   $ 4,270,902     $ 13,340,024     $ 11,869,196     $ 29,480,122     $ 265,844     $ 12,519,503     $ 12,311,130     $ 25,096,477  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2023

(Unaudited)

 

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

 

    2023     2022     2023     2022  
    For the Three Months     For the Six Months  
    Ended December 31,     Ended December 31,  
    2023     2022     2023     2022  
Revenues from unaffiliated customers:                                
North America   $ 1,465,221     $ 1,597,852     $ 2,873,836     $ 2,723,140  
Europe     2,472,357       2,845,701       5,034,390       5,093,036  
Asia - Pacific     11,300,363       7,946,805       21,571,896       17,280,301  
Revenues from unaffiliated     15,237,941       12,390,358       29,480,122       25,096,477  
Revenue from affiliated customers                                
Asia - Pacific     -       -       -       -  
Revenue from affiliated     -       -       -       -  
Consolidated   $ 15,237,941     $ 12,390,358     $ 29,480,122     $ 25,096,477  
                                 
Intercompany revenue                                
Europe   $ 100,100     $ 93,236     $ 200,417     $ 188,961  
Asia - Pacific     2,865,277       2,545,098       5,485,596       4,544,876  
Eliminated   $ 2,965,377     $ 2,638,334     $ 5,686,013     $ 4,733,837  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ (922,670 )   $ (696,938 )   $ (1,226,392 )   $ 630,262  
North America     (13,278 )     105,326       (69,225 )     86,379  
Europe     (150,935 )     (163,633 )     (242,819 )     (483,388 )
Asia - Pacific     2,069,698       (1,646,718 )     2,812,314       (3,073,187 )
Consolidated   $ 982,815     $ (2,401,963 )   $ 1,273,878     $ (2,839,934 )
                                 
Depreciation and amortization:                                
North America   $ 407     $ 727     $ 898     $ 1,209  
Europe     57,758       66,431       120,659       141,602  
Asia - Pacific     370,998       824,342       838,392       1,593,692  
Consolidated   $ 429,163     $ 891,500     $ 959,949     $ 1,736,503  
                                 
Interest expense:                                
Corporate headquarters   $ 6,538     $ 5,912     $ 12,659     $ 8,392  
North America     -       -       -       -  
Europe     1,834       2,702       6,476       6,340  
Asia - Pacific     281,950       193,749       547,204       309,241  
Consolidated   $ 290,322     $ 202,363     $ 566,339     $ 323,973  
                                 
Income tax expense:                                
Corporate headquarters   $ -     $ -     $ -     $ (44,154 )
North America     -       -       -       44,154  
Europe     (93,583 )     -       (93,583 )     -  
Asia - Pacific     243,636       220,056       365,531       413,404  
Consolidated   $ 150,053     $ 220,056     $ 271,948     $ 413,404  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2023

(Unaudited)

 

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

 

    2023     2022  
    For the Six Months  
    Ended December 31,  
    2023     2022  
Capital expenditures:                
North America   $ -     $ 4,880  
Europe     417,104       -  
Asia - Pacific     153,480       1,247,445  
Consolidated   $ 570,584     $ 1,252,325