Annual report pursuant to Section 13 and 15(d)

Note 8 - Property And Equipment

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Note 8 - Property And Equipment
 12 Months Ended
Jun. 30, 2013
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
NOTE 8 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

   
As of June 30,
2013
   
As of June 30,
2012
 
             
Office furniture and equipment
  $ 2,508,975     $ 1,917,221  
Computer equipment
    19,987,480       14,986,148  
Assets under capital leases
    1,126,860       1,877,145  
Building
    2,391,550       2,133,174  
Land
    2,460,144       2,044,003  
Capital work in progress
    5,104,283       4,163,730  
Autos
    689,440       648,305  
Improvements
    513,044       230,759  
Subtotal
    34,781,776       28,000,485  
Accumulated depreciation
    (13,803,407 )     (11,087,690 )
Property and equipment, net
  $ 20,978,369     $ 16,912,795  

For the years ended June 30, 2013 and 2012, depreciation expense totaled $3,627,862 and $2,875,883, respectively. Of these amounts, $2,242,339 and $1,879,358 are reflected as part of cost of revenues for the years ended June 30, 2013 and 2012, respectively.

The Company’s capital work in progress consists of ongoing enhancements to its facilities and infrastructure as necessary to meet the Company’s expected long-term growth needs. The Company capitalized interest of $292,390 and $331,145 during the period ended June 30, 2013 and 2012, respectively.

Assets acquired under capital leases were $1,126,860 and $1,877,145 as of June 30, 2013 and 2012, respectively. Accumulated amortization related to these leases were $350,048 and $900,790 for the years ended June 30, 2013 and 2012, respectively.