NETSOL Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Property And Equipment

Note 7 - Property And Equipment

3 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 7 - PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

	As of September 30, 2013			As of June 30, 2013

Office furniture and equipment	$	2,357,632		$	2,508,975
Computer equipment		20,635,789			19,987,480
Assets under capital leases		1,210,529			1,126,860
Building		2,262,187			2,391,550
Land		2,327,070			2,460,144
Capital work in progress		5,756,021			5,104,283
Autos		714,474			689,440
Improvements		510,942			513,044
Subtotal		35,774,644			34,781,776
Accumulated depreciation		(14,281,346	)		(13,803,407	)
Property and equipment, net	$	21,493,298		$	20,978,369

For the three months ended September 30, 2013 and 2012, depreciation expense totaled $997,560 and $754,108, respectively. Of these amounts, $613,110 and $454,745, respectively, are reflected in cost of revenues.

The Company’s capital work in progress consists of ongoing enhancements to its facilities and infrastructure necessary to meet the Company’s expected long term growth needs. The Company recorded capitalized interest of $68,280 and $292,390 as of September 30, 2013 and June 30, 2013, respectively.

Assets acquired under capital leases were $1,210,529 and $1,126,860 as of September 30, 2013 and June 30, 2013, respectively. Accumulated amortization related to these leases was $380,738 and $350,048 as of September 30, 2013 and June 30, 2013, respectively.