| 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
December
31, 2024
(Unaudited)
The following table presents
a summary of identifiable assets as of December 31, 2024 and June 30, 2024:
SUMMARY OF IDENTIFIABLE ASSETS
| |
|
As of |
|
|
As of |
|
| |
|
December 31, 2024 |
|
|
June 30, 2024 |
|
| Identifiable assets: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
906,828 |
|
|
$ |
808,385 |
|
| North America |
|
|
7,246,715 |
|
|
|
6,114,142 |
|
| Europe |
|
|
8,516,144 |
|
|
|
9,410,098 |
|
| Asia - Pacific |
|
|
42,400,442 |
|
|
|
47,853,817 |
|
| Consolidated |
|
$ |
59,070,129 |
|
|
$ |
64,186,442 |
|
| Identifiable
assets |
|
$ |
59,070,129 |
|
|
$ |
64,186,442 |
|
The following table presents
a summary of revenue streams by segment for the three months ended December 31, 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 |
|
$ |
- |
|
|
$ |
1,606,262 |
|
|
$ |
1,601,011 |
|
|
$ |
3,207,273 |
|
|
$ |
- |
|
|
$ |
1,168,224 |
|
|
$ |
296,997 |
|
|
$ |
1,465,221 |
|
| Europe |
|
|
72,688 |
|
|
|
1,202,858 |
|
|
|
1,985,634 |
|
|
|
3,261,180 |
|
|
|
4,650 |
|
|
|
874,096 |
|
|
|
1,593,611 |
|
|
|
2,472,357 |
|
| Asia-Pacific |
|
|
- |
|
|
|
5,833,509 |
|
|
|
3,234,699 |
|
|
|
9,068,208 |
|
|
|
2,985,803 |
|
|
|
4,785,461 |
|
|
|
3,529,099 |
|
|
|
11,300,363 |
|
| Total |
|
$ |
72,688 |
|
|
$ |
8,642,629 |
|
|
$ |
6,821,344 |
|
|
$ |
15,536,661 |
|
|
$ |
2,990,453 |
|
|
$ |
6,827,781 |
|
|
$ |
5,419,707 |
|
|
$ |
15,237,941 |
|
The following table presents
a summary of revenue streams by segment for the six months ended December 31, 2024 and 2023:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
|
2023 |
|
| |
|
License fees |
|
|
Subscription and support |
|
|
Services |
|
|
Total |
|
|
License fees |
|
|
Subscription and support |
|
|
Services |
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
- |
|
|
$ |
2,868,907 |
|
|
$ |
3,207,027 |
|
|
$ |
6,075,934 |
|
|
$ |
- |
|
|
$ |
2,293,038 |
|
|
$ |
580,798 |
|
|
$ |
2,873,836 |
|
| Europe |
|
|
73,917 |
|
|
|
2,095,630 |
|
|
|
3,586,919 |
|
|
|
5,756,466 |
|
|
|
8,966 |
|
|
|
1,588,084 |
|
|
|
3,437,340 |
|
|
|
5,034,390 |
|
| Asia-Pacific |
|
|
- |
|
|
|
11,870,563 |
|
|
|
6,432,196 |
|
|
|
18,302,759 |
|
|
|
4,261,936 |
|
|
|
9,458,902 |
|
|
|
7,851,058 |
|
|
|
21,571,896 |
|
| Total |
|
$ |
73,917 |
|
|
$ |
16,835,100 |
|
|
$ |
13,226,142 |
|
|
$ |
30,135,159 |
|
|
$ |
4,270,902 |
|
|
$ |
13,340,024 |
|
|
$ |
11,869,196 |
|
|
$ |
29,480,122 |
|
NETSOL
TECHNOLOGIES, INC.
Notes
to Condensed Consolidated Financial Statements
December
31, 2024
(Unaudited)
The following table presents
a summary of operating information for the three and six months ended December 31:
SUMMARY OF OPERATING INFORMATION
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| |
|
For the Three Months
Ended December 31, |
|
|
For the Six Months
Ended December 31, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Revenues from unaffiliated customers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
3,207,273 |
|
|
$ |
1,465,221 |
|
|
$ |
6,075,934 |
|
|
$ |
2,873,836 |
|
| Europe |
|
|
3,261,180 |
|
|
|
2,472,357 |
|
|
|
5,756,466 |
|
|
|
5,034,390 |
|
| Asia - Pacific |
|
|
9,068,208 |
|
|
|
11,300,363 |
|
|
|
18,302,759 |
|
|
|
21,571,896 |
|
| Revenues from unaffiliated customers |
|
|
15,536,661 |
|
|
|
15,237,941 |
|
|
|
30,135,159 |
|
|
|
29,480,122 |
|
| Revenue from affiliated customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asia - Pacific |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Revenue from affiliated
customers |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Consolidated |
|
$ |
15,536,661 |
|
|
$ |
15,237,941 |
|
|
$ |
30,135,159 |
|
|
$ |
29,480,122 |
|
| Revenue |
|
$ |
15,536,661 |
|
|
$ |
15,237,941 |
|
|
$ |
30,135,159 |
|
|
$ |
29,480,122 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Intercompany revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Europe |
|
$ |
188,756 |
|
|
$ |
100,100 |
|
|
$ |
205,314 |
|
|
$ |
200,417 |
|
| Asia - Pacific |
|
|
4,713,799 |
|
|
|
2,865,277 |
|
|
|
7,983,143 |
|
|
|
5,485,596 |
|
| Eliminated |
|
$ |
4,902,555 |
|
|
$ |
2,965,377 |
|
|
$ |
8,188,457 |
|
|
$ |
5,686,013 |
|
| Revenue |
|
$ |
4,902,555 |
|
|
$ |
2,965,377 |
|
|
$ |
8,188,457 |
|
|
$ |
5,686,013 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) after taxes and before non-controlling interest: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
(103,088 |
) |
|
$ |
(922,670 |
) |
|
$ |
(765,146 |
) |
|
$ |
(1,226,392 |
) |
| North America |
|
|
(380,582 |
) |
|
|
(13,278 |
) |
|
|
234,261 |
|
|
|
(69,225 |
) |
| Europe |
|
|
(450,678 |
) |
|
|
(150,935 |
) |
|
|
(973,676 |
) |
|
|
(242,819 |
) |
| Asia - Pacific |
|
|
(251,858 |
) |
|
|
2,069,698 |
|
|
|
536,064 |
|
|
|
2,812,314 |
|
| Consolidated |
|
$ |
(1,186,206 |
) |
|
$ |
982,815 |
|
|
$ |
(968,497 |
) |
|
$ |
1,273,878 |
|
| Net
income (loss) after taxes and before non-controlling interest |
|
$ |
(1,186,206 |
) |
|
$ |
982,815 |
|
|
$ |
(968,497 |
) |
|
$ |
1,273,878 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
599 |
|
|
$ |
407 |
|
|
$ |
1,070 |
|
|
$ |
898 |
|
| Europe |
|
|
53,179 |
|
|
|
57,758 |
|
|
|
112,859 |
|
|
|
120,659 |
|
| Asia - Pacific |
|
|
318,807 |
|
|
|
370,998 |
|
|
|
624,653 |
|
|
|
838,392 |
|
| Consolidated |
|
$ |
372,585 |
|
|
$ |
429,163 |
|
|
$ |
738,582 |
|
|
$ |
959,949 |
|
| Depreciation and amortization |
|
$ |
372,585 |
|
|
$ |
429,163 |
|
|
$ |
738,582 |
|
|
$ |
959,949 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
11,059 |
|
|
$ |
6,538 |
|
|
$ |
20,451 |
|
|
$ |
12,659 |
|
| Europe |
|
|
12,059 |
|
|
|
1,834 |
|
|
|
12,059 |
|
|
|
6,476 |
|
| Asia - Pacific |
|
|
213,268 |
|
|
|
281,950 |
|
|
|
462,095 |
|
|
|
547,204 |
|
| Consolidated |
|
$ |
236,386 |
|
|
$ |
290,322 |
|
|
$ |
494,605 |
|
|
$ |
566,339 |
|
| Interest
expense |
|
$ |
236,386 |
|
|
$ |
290,322 |
|
|
$ |
494,605 |
|
|
$ |
566,339 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Europe |
|
$ |
- |
|
|
$ |
(93,583 |
) |
|
$ |
- |
|
|
$ |
(93,583 |
) |
| Asia - Pacific |
|
|
331,614 |
|
|
|
243,636 |
|
|
|
561,431 |
|
|
|
365,531 |
|
| Consolidated |
|
$ |
331,614 |
|
|
$ |
150,053 |
|
|
$ |
561,431 |
|
|
$ |
271,948 |
|
| Income tax expense
|
|
$ |
331,614 |
|
|
$ |
150,053 |
|
|
$ |
561,431 |
|
|
$ |
271,948 |
|
NETSOL
TECHNOLOGIES, INC.
Notes
to Condensed Consolidated Financial Statements
December
31, 2024
(Unaudited)
The following table presents
a summary of capital expenditures for the six months ended December 31:
SUMMARY OF CAPITAL EXPENDITURES
| |
|
2024 |
|
|
2023 |
|
| |
|
For the Six Months |
|
| |
|
Ended December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Capital expenditures: |
|
|
|
|
|
|
|
|
| North America |
|
$ |
3,841 |
|
|
$ |
- |
|
| Europe |
|
|
56,204 |
|
|
|
417,104 |
|
| Asia - Pacific |
|
|
508,089 |
|
|
|
153,480 |
|
| Consolidated |
|
$ |
568,134 |
|
|
$ |
570,584 |
|
| Capital expenditures |
|
$ |
568,134 |
|
|
$ |
570,584 |
|
|