Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT INFORMATION AND GEOGRAPHIC AREAS (Tables)

v3.25.2
SEGMENT INFORMATION AND GEOGRAPHIC AREAS (Tables)
 12 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SCHEDULE OF FINANCIAL INFORMATION BY REPORTABLE SEGMENT

The following tables present financial information by reportable segment for the year ended June 30, 2025:

 

 SCHEDULE OF FINANCIAL INFORMATION BY REPORTABLE SEGMENT

    North America     Europe     Asia - Pacific     Total  
    For the Year Ended  
    June 30, 2025  
    North America     Europe     Asia - Pacific     Total  
Revenues                                
License   $ -     $ 111,377     $ 487,256     $ 598,633  
Subscription and support     5,603,900       4,560,260       22,770,488       32,934,648  
Services     6,399,927       9,972,363       16,182,658       32,554,948  
Intersegment revenues     -        -       7,000,458       7,000,458  
Total revenue from reportable segments   $ 12,003,827     $ 14,644,000     $ 46,440,860     $ 73,088,687  
Elimination of intersegment revenues     -        -        -        (7,000,458 )
Total consolidated revenues                           $ 66,088,229  
                                 
Revenues from reportable segments   $ 12,003,827     $ 14,644,000     $ 46,440,860     $ 73,088,687  
                                 
Salaries and consultants     2,074,573       4,607,703       19,115,189       25,797,465  
Travel     277,680       162,193       1,623,638       2,063,511  
Depreciation     -       -       952,331       952,331  
Other (a)     3,497,607       4,836,247       3,366,994       11,700,848  
Gross Profit     6,153,967       5,037,857       21,382,708       32,574,532  
                                 
Selling and marketing     2,103,890       1,341,023       6,278,262       9,723,175  
Depreciation     3,167       186,927       321,358       511,452  
General and administrative     755,194       4,059,517       8,502,694       13,317,405  
Income (loss) from operations - reportable segments   $ 3,291,716     $ (549,610 )   $ 6,280,394     $ 9,022,500  
                                 
Reconciliation:                                
Income (loss) from operations - reportable segments                           $ 9,022,500  
Corporate operating expenses                             (5,520,782 )
Interest expense                             (871,355 )
Interest income                             1,871,040  
Gain (loss) on foreign currency exchange transactions                             1,301,613  
Other income (expense)                             244,241  
Net income (loss) before income taxes                           $ 6,047,257  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Consolidated Financial Statements

June 30, 2025 and 2024

 

Segment assets:   North America     Europe     Asia - Pacific     Total  
    As of  
    June 30, 2025  
Segment assets:   North America     Europe     Asia - Pacific     Total  
Cash   $ 387,955     $ 1,138,048     $ 15,248,031     $ 16,774,034  
Accounts receivable, net of allowance     581,872       1,084,418       5,861,282       7,527,572  
Revenue in excess of billings, net of allowance     1,967,757       3,178,780       13,987,848       19,134,385  
Other segment assets (b)     243,550       1,580,534       7,066,725       8,890,809  
Total segment assets   $ 3,181,134     $ 6,981,780     $ 42,163,886     $ 52,326,800  
                                 
Asset Reconciliation                                
Total assets for reportable segments                           $ 52,326,800  
Corporate assets                             811,785  
Goodwill not allocated to segments                             9,302,524  
Consolidated total                           $ 62,441,109  

 

    North America     Europe     Asia - Pacific     Total  
    For the year ended June 30, 2025  
    North America     Europe     Asia - Pacific     Total  
Expenditures for property, plant and equipment   $ 17,332     $ 9,929     $ 1,355,509     $ 1,382,770  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Consolidated Financial Statements

June 30, 2025 and 2024

 

The following tables present financial information by reportable segment for the year ended June 30, 2024:

 

    North America     Europe     Asia - Pacific     Total  
    For the Year Ended  
    June 30, 2024  
    North America     Europe     Asia - Pacific     Total  
Revenues                                
License   $ -     $ 112,524     $ 5,337,467     $ 5,449,991  
Subscription and support     4,693,618       3,383,312       19,875,838       27,952,768  
Services     1,240,179       8,471,966       18,278,187       27,990,332  
Intersegment revenues     -        -        3,061,465       3,061,465  
Total revenue from reportable segments   $ 5,933,797     $ 11,967,802     $ 46,552,957     $ 64,454,556  
Elimination of intersegment revenues     -        -        -        (3,061,465 )
Total consolidated revenues                           $ 61,393,091  
                                 
Revenues from reportable segments   $ 5,933,797     $ 11,967,802     $ 46,552,957     $ 64,454,556  
                                 
Salaries and consultants     1,658,561       3,734,833       18,229,513       23,622,907  
Travel     23,890       191,306       2,728,246       2,943,442  
Depreciation     -       -       1,144,809       1,144,809  
Other (a)     1,550,465       2,911,441       2,996,622       7,458,528  
Gross Profit     2,700,881       5,130,222       21,453,767       29,284,870  
                                 
Selling and marketing     1,395,827       933,203       4,833,083       7,162,113  
Depreciation     1,712       231,018       344,261       576,991  
General and administrative     690,194       4,063,242       7,746,462       12,499,898  
Income (loss) from operations - reportable segments   $ 613,148     $ (97,241 )   $ 8,529,961     $ 9,045,868  
                                 
Reconciliation:                                
 Income (loss) from operations - reportable segments                           $ 9,045,868  
Corporate operating expenses                             (5,552,313 )
Interest expense                             (1,142,166 )
Interest income                             1,911,258  
 Gain (loss) on foreign currency exchange transactions                             (1,187,320 )
Other income (expense)                             148,120  
Net income (loss) before income taxes                           $ 3,223,447  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Consolidated Financial Statements

June 30, 2025 and 2024

 

Segment assets:   North America     Europe     Asia - Pacific     Total  
    As of  
    June 30, 2024  
Segment assets:   North America     Europe     Asia - Pacific     Total  
Cash   $ 435,995     $ 955,707     $ 17,226,295     $ 18,617,997  
Accounts receivable, net of allowance     511,816       2,433,951       10,103,847       13,049,614  
Revenue in excess of billings, net of allowance     131,461       1,091,941       12,415,145       13,638,547  
Other segment assets (b)     370,770       1,456,685       6,941,920       8,769,375  
Total segment assets   $ 1,450,042     $ 5,938,284     $ 46,687,207     $ 54,075,533  
                                 
Asset Reconciliation                                
Total assets for reportable segments                             54,075,533  
Corporate assets                             808,385  
Goodwill not allocated to segments                             9,302,524  
Consolidated total                           $ 64,186,442  

 

    North America     Europe     Asia - Pacific     Total  
    For the year ended June 30, 2024  
    North America     Europe     Asia - Pacific     Total  
Expenditures for property, plant and equipment   $ -     $ 179,102     $ 336,302     $ 515,404  

 

(a) Other costs of goods sold include computer costs, third-party hardware and software costs, repair and maintenance, insurance, utilities, and communication expenses.

 

(b) Other assets include property and equipment, right of use of assets, advances, deposits, and prepayments.
SCHEDULE OF GEOGRAPHIC INFORMATION

Disclosed in the table below is geographic information for each country that comprised greater than five percent of total revenues for the years ended June 30, 2025 and 2024.

 

    June 30, 2025     June 30, 2024  
    Revenue     Long-lived Assets     Revenue     Long-lived Assets  
                         
China   $ 17,043,193     $ 108,837     $ 20,747,744     $ 354,122  
Thailand     2,745,299       585,401       3,636,153       929,651  
USA     10,763,285       175,247       4,853,541       337,427  
UK     14,644,000       998,465       11,967,802       983,126  
Pakistan & India     2,292,058       4,514,487       2,229,067       4,621,210  
Australia & New Zealand     8,609,997       5,923       5,454,383       7,168  
Mexico     1,240,542       -       1,080,256       -  
Indonesia     4,138,350       -       4,475,356       189,131  
South Africa     814,817       -       857,218       -  
South Korea     1,506,456       -       2,491,606       -   
Other Countries     2,290,232       430,622       3,599,965       -  
Total   $ 66,088,229     $ 6,818,982     $ 61,393,091     $ 7,421,835  
SCHEDULE OF REVENUE STREAMS

Disclosed in the table below is the geographic information of total revenues by country for the years ended June 30, 2025 and 2024.

 

    Total     China     Thailand     USA     UK     Pakistan & India     Australia & New Zealand     Mexico     Indonesia     South Africa     South Korea     Other Countries  
    Revenues 2025  
    Total     China     Thailand     USA     UK     Pakistan & India     Australia & New Zealand     Mexico     Indonesia     South Africa     South Korea     Other Countries  
                                                                         
North America:   $ 12,003,827     $ -     $ -     $ 10,763,285     $ -     $ -     $ -     $ 1,240,542     $ -     $ -     $ -     $ -  
Europe:     14,644,000       -       -       -       14,644,000       -       -       -       -       -       -       -  
Asia-Pacific:     39,440,402       17,043,193       2,745,299       -       -       2,292,058       8,609,997       -       4,138,350       814,817       1,506,456       2,290,232  
                                                                                                 
Total   $ 66,088,229     $ 17,043,193     $ 2,745,299     $ 10,763,285     $ 14,644,000     $ 2,292,058     $ 8,609,997     $ 1,240,542     $ 4,138,350     $ 814,817     $ 1,506,456     $ 2,290,232  

 

    Total     China     Thailand     USA     UK     Pakistan & India     Australia & New Zealand     Mexico     Indonesia     South Africa     South Korea     Other Countries  
    Revenues 2024  
    Total     China     Thailand     USA     UK     Pakistan & India     Australia & New Zealand     Mexico     Indonesia     South Africa     South Korea     Other Countries  
                                                                         
North America:   $ 5,933,797     $ -     $ -     $ 4,853,541     $ -     $ -     $ -     $ 1,080,256     $ -     $ -     $ -     $ -  
Europe:     11,967,802       -       -       -       11,967,802       -       -       -       -       -       -       -  
Asia-Pacific:     43,491,492       20,747,744       3,636,153       -       -       2,229,067       5,454,383       -       4,475,356       857,218       2,491,606       3,599,965  
                                                                                                 
Total   $ 61,393,091     $ 20,747,744     $ 3,636,153     $ 4,853,541     $ 11,967,802     $ 2,229,067     $ 5,454,383     $ 1,080,256     $ 4,475,356     $ 857,218     $ 2,491,606     $ 3,599,965