| 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.
NETSOL
TECHNOLOGIES, INC.
Notes
to Condensed Consolidated Financial Statements
September
30, 2024
(Unaudited)
The
following table presents a summary of identifiable assets as of September 30, 2024 and June 30, 2024:
SUMMARY OF IDENTIFIABLE ASSETS
| |
|
As
of |
|
|
As
of |
|
| |
|
September
30, 2024 |
|
|
June
30, 2024 |
|
| Identifiable
assets: |
|
|
|
|
|
|
|
|
| Corporate
headquarters |
|
$ |
941,042 |
|
|
$ |
808,385 |
|
| North
America |
|
|
6,670,569 |
|
|
|
6,114,142 |
|
| Europe |
|
|
9,028,022 |
|
|
|
9,410,098 |
|
| Asia
- Pacific |
|
|
46,160,026 |
|
|
|
47,853,817 |
|
| Consolidated |
|
$ |
62,799,659 |
|
|
$ |
64,186,442 |
|
| Identifiable
assets |
|
$ |
62,799,659 |
|
|
$ |
64,186,442 |
|
The
following table presents a summary of revenue streams by segment for the three months ended September 30, 2024 and 2023:
SUMMARY OF REVENUE STREAMS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
|
2023 |
|
| |
|
License
fees |
|
|
Subscription
and support |
|
|
Services |
|
|
Total |
|
|
License
fees |
|
|
Subscription
and support |
|
|
Services |
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North
America |
|
$ |
- |
|
|
$ |
1,262,645 |
|
|
$ |
1,606,016 |
|
|
$ |
2,868,661 |
|
|
$ |
- |
|
|
$ |
1,124,814 |
|
|
$ |
283,801 |
|
|
$ |
1,408,615 |
|
| Europe |
|
|
1,229 |
|
|
|
892,772 |
|
|
|
1,601,285 |
|
|
|
2,495,286 |
|
|
|
4,316 |
|
|
|
713,988 |
|
|
|
1,843,729 |
|
|
|
2,562,033 |
|
| Asia-Pacific |
|
|
- |
|
|
|
6,037,054 |
|
|
|
3,197,497 |
|
|
|
9,234,551 |
|
|
|
1,276,133 |
|
|
|
4,673,441 |
|
|
|
4,321,959 |
|
|
|
10,271,533 |
|
| Total |
|
$ |
1,229 |
|
|
$ |
8,192,471 |
|
|
$ |
6,404,798 |
|
|
$ |
14,598,498 |
|
|
$ |
1,280,449 |
|
|
$ |
6,512,243 |
|
|
$ |
6,449,489 |
|
|
$ |
14,242,181 |
|
NETSOL
TECHNOLOGIES, INC.
Notes
to Condensed Consolidated Financial Statements
September
30, 2024
(Unaudited)
The
following table presents a summary of operating information for the three months ended September 30:
SUMMARY OF OPERATING INFORMATION
| |
|
|
|
|
|
|
| |
|
For
the Three Months |
|
| |
|
Ended
September 30, |
|
| |
|
2024 |
|
|
2023 |
|
| Revenues
from unaffiliated customers: |
|
|
|
|
|
|
|
|
| North
America |
|
$ |
2,868,661 |
|
|
$ |
1,408,615 |
|
| Europe |
|
|
2,495,286 |
|
|
|
2,562,033 |
|
| Asia
- Pacific |
|
|
9,234,551 |
|
|
|
10,271,533 |
|
| Revenues from unaffiliated customers |
|
|
14,598,498 |
|
|
|
14,242,181 |
|
| Revenue
from affiliated customers |
|
|
|
|
|
|
|
|
| Asia
- Pacific |
|
|
- |
|
|
|
- |
|
| Revenue
from affiliated customers |
|
|
- |
|
|
|
- |
|
| Consolidated |
|
$ |
14,598,498 |
|
|
$ |
14,242,181 |
|
| Revenue |
|
$ |
14,598,498 |
|
|
$ |
14,242,181 |
|
| |
|
|
|
|
|
|
|
|
| Intercompany
revenue |
|
|
|
|
|
|
|
|
| Europe |
|
$ |
16,558 |
|
|
$ |
100,317 |
|
| Asia
- Pacific |
|
|
3,269,344 |
|
|
|
2,620,319 |
|
| Eliminated |
|
$ |
3,285,902 |
|
|
$ |
2,720,636 |
|
| Revenue |
|
$ |
3,285,902 |
|
|
$ |
2,720,636 |
|
| |
|
|
|
|
|
|
|
|
| Net
income (loss) after taxes and before non-controlling interest: |
|
|
|
|
|
|
|
|
| Corporate
headquarters |
|
$ |
(662,058 |
) |
|
$ |
(303,722 |
) |
| North
America |
|
|
614,843 |
|
|
|
(55,947 |
) |
| Europe |
|
|
(522,998 |
) |
|
|
(91,884 |
) |
| Asia
- Pacific |
|
|
787,922 |
|
|
|
742,616 |
|
| Consolidated |
|
$ |
217,709 |
|
|
$ |
291,063 |
|
| Net
income (loss) after taxes and before non-controlling interest |
|
$ |
217,709 |
|
|
$ |
291,063 |
|
| |
|
|
|
|
|
|
|
|
| Depreciation
and amortization: |
|
|
|
|
|
|
|
|
| North
America |
|
$ |
471 |
|
|
$ |
491 |
|
| Europe |
|
|
59,680 |
|
|
|
62,901 |
|
| Asia
- Pacific |
|
|
305,846 |
|
|
|
467,394 |
|
| Consolidated |
|
$ |
365,997 |
|
|
$ |
530,786 |
|
| Depreciation and amortization |
|
$ |
365,997 |
|
|
$ |
530,786 |
|
| |
|
|
|
|
|
|
|
|
| Interest
expense: |
|
|
|
|
|
|
|
|
| Corporate
headquarters |
|
$ |
9,392 |
|
|
$ |
6,121 |
|
| Europe |
|
|
- |
|
|
|
4,642 |
|
| Asia
- Pacific |
|
|
248,827 |
|
|
|
265,254 |
|
| Consolidated |
|
$ |
258,219 |
|
|
$ |
276,017 |
|
| Interest
expense |
|
$ |
258,219 |
|
|
$ |
276,017 |
|
| |
|
|
|
|
|
|
|
|
| Income
tax expense: |
|
|
|
|
|
|
|
|
| Asia
- Pacific |
|
$ |
229,817 |
|
|
$ |
121,895 |
|
| Consolidated |
|
$ |
229,817 |
|
|
$ |
121,895 |
|
| Income tax expense
|
|
$ |
229,817 |
|
|
$ |
121,895 |
|
NETSOL
TECHNOLOGIES, INC.
Notes
to Condensed Consolidated Financial Statements
September
30, 2024
(Unaudited)
The
following table presents a summary of capital expenditures for the three months ended September 30:
SUMMARY OF CAPITAL EXPENDITURES
| |
|
|
|
|
|
|
| |
|
For
the Three Months |
|
| |
|
Ended
September 30, |
|
| |
|
2024 |
|
|
2023 |
|
| Capital
expenditures: |
|
|
|
|
|
|
|
|
| North
America |
|
$ |
3,841 |
|
|
$ |
- |
|
| Europe |
|
|
37,494 |
|
|
|
333,754 |
|
| Asia
- Pacific |
|
|
59,402 |
|
|
|
37,876 |
|
| Consolidated |
|
$ |
100,737 |
|
|
$ |
371,630 |
|
| Capital expenditures |
|
$ |
100,737 |
|
|
$ |
371,630 |
|
|