Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.24.1.1.u2
OPERATING SEGMENTS
 9 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 16– 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 March 31, 2024 and June 30, 2023:

 

    As of     As of  
    March 31, 2024     June 30, 2023  
Identifiable assets:                
Corporate headquarters   $ 984,161     $ 878,899  
North America     6,060,509       7,344,122  
Europe     9,296,634       8,716,656  
Asia - Pacific     46,965,482       41,439,733  
Consolidated   $ 63,306,786     $ 58,379,410  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2024

(Unaudited)

 

The following table presents a summary of revenue streams by segment for the three months ended March 31, 2024 and 2023:

 

    License fees     Subscription
and support		     Services     Total     License fees     Subscription
and support		     Services     Total  
    2024     2023  
    License fees     Subscription
and support		     Services     Total     License fees     Subscription
and support		     Services     Total  
                                                 
North America   $ -     $ 1,161,417     $ 203,657     $ 1,365,074     $ -     $ 1,075,286     $ 290,270     $ 1,365,556  
Europe     92,925       869,429       2,083,430       3,045,784       65,177       665,585       1,819,610       2,550,372  
Asia-Pacific     465,415       5,109,512       5,478,731       11,053,658       1,917,808       4,915,211       2,757,442       9,590,461  
Total   $ 558,340     $ 7,140,358     $ 7,765,818     $ 15,464,516     $ 1,982,985     $ 6,656,082     $ 4,867,322     $ 13,506,389  

 

The following table presents a summary of revenue streams by segment for the nine months ended March 31, 2024 and 2023:

 

    License fees     Subscription
and support		     Services     Total     License fees     Subscription
and support		     Services     Total  
    2024     2023  
    License fees     Subscription
and support		     Services     Total     License fees     Subscription
and support		     Services     Total  
                                                 
North America   $ -     $ 3,454,455     $ 784,455     $ 4,238,910     $ 28,000     $ 3,251,397     $ 809,299     $ 4,088,696  
Europe     101,891       2,457,513       5,520,770       8,080,174       115,416       1,847,690       5,680,302       7,643,408  
Asia-Pacific     4,727,351       14,568,414       13,329,789       32,625,554       2,105,413       14,076,498       10,688,851       26,870,762  
Total   $ 4,829,242     $ 20,480,382     $ 19,635,014     $ 44,944,638     $ 2,248,829     $ 19,175,585     $ 17,178,452     $ 38,602,866  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2024

(Unaudited)

 

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

 

    2024     2023     2024     2023  
    For the Three Months     For the Nine Months  
    Ended March 31,     Ended March 31,  
    2024     2023     2024     2023  
Revenues from unaffiliated customers:                                
North America   $ 1,365,074     $ 1,365,556     $ 4,238,910     $ 4,088,696  
Europe     3,045,784       2,550,372       8,080,174       7,643,408  
Asia - Pacific     11,053,658       9,590,461       32,625,554       26,870,762  
Revenues from unaffiliated customers     15,464,516       13,506,389       44,944,638       38,602,866  
Revenue from affiliated customers                                
Asia - Pacific     -       -       -       -  
Revenue from affiliated customers     -       -       -       -  
Consolidated   $ 15,464,516     $ 13,506,389     $ 44,944,638     $ 38,602,866  
                                 
Intercompany revenue                                
Europe   $ 100,315     $ 103,249     $ 300,732     $ 292,210  
Asia - Pacific     2,601,585       3,026,986       8,087,181       7,720,764  
Eliminated   $ 2,701,900     $ 3,130,235     $ 8,387,913     $ 8,012,974  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ (1,003,157 )   $ 289,652     $ (2,229,549 )   $ 919,914  
North America     7,679       (3,702 )     (61,546 )     82,677  
Europe     14,516       (103,219 )     (228,303 )     (586,607 )
Asia - Pacific     1,296,832       4,059,800       4,109,146       986,613  
Consolidated   $ 315,870     $ 4,242,531     $ 1,589,748     $ 1,402,597  
                                 
Depreciation and amortization:                                
North America   $ 407     $ 657     $ 1,305     $ 1,866  
Europe     58,469       65,584       179,128       207,186  
Asia - Pacific     332,414       716,725       1,170,806       2,310,417  
Consolidated   $ 391,290     $ 782,966     $ 1,351,239     $ 2,519,469  
                                 
Interest expense:                                
Corporate headquarters   $ 12,028     $ 7,834     $ 24,687     $ 16,226  
North America     -       -       -       -  
Europe     508       1,806       6,984       8,146  
Asia - Pacific     277,141       178,497       824,345       487,738  
Consolidated   $ 289,677     $ 188,137     $ 856,016     $ 512,110  
                                 
Income tax expense:                                
Corporate headquarters   $ -     $ -     $ -     $ (44,154 )
North America     800       1,600       800       45,754  
Europe     -       2,822       (93,583 )     2,822  
Asia - Pacific     145,769       223,296       511,300       636,700  
Consolidated   $ 146,569     $ 227,718     $ 418,517     $ 641,122  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2024

(Unaudited)

 

The following table presents a summary of capital expenditures for the nine months ended March 31:

 

    2024     2023  
    For the Nine Months  
    Ended March 31,  
    2024     2023  
Capital expenditures:                
North America   $ -     $ 4,880  
Europe     592,432       31,519  
Asia - Pacific     355,905       1,538,660  
Consolidated   $ 948,337     $ 1,575,059