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

9 Months Ended

Mar. 31, 2014

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 March 31, 2014			As of June 30, 2013

Office furniture and equipment	$	2,478,953		$	2,508,975
Computer equipment		24,328,362			19,987,480
Assets under capital leases		2,015,764			1,126,860
Building		6,241,603			2,391,550
Land		2,565,633			2,460,144
Capital work in progress		3,331,291			5,104,283
Autos		977,115			689,440
Improvements		419,175			513,044
Subtotal		42,357,896			34,781,776
Accumulated depreciation		(14,731,910	)		(13,803,407	)
Property and equipment, net	$	27,625,986		$	20,978,369

For the three and nine months ended March 31, 2014, depreciation expense totaled $1,325,978, and $3,439,885, respectively. Of these amounts, $858,334, and $2,188,334, respectively, is reflected in cost of revenues. For the three and nine months ended March 31, 2013, depreciation expense totaled $1,015,352 and $2,545,008, respectively. Of these amounts, $619,886 and $1,559,798, 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. Accumulated capitalized interest was $1,325,493, and $904,700 as of March 31, 2014 and June 30, 2013, respectively.

Following is a summary of fixed assets held under capital leases as of March 31, 2014 and June 30, 2013:

	As of March 31, 2014			As of June 30, 2013
Computer Equipment and Software	$	844,899		$	454,002
Furniture and Fixtures		280,361			951
Vehicles		890,504			671,907
Total		2,015,764			1,126,860
Less: Accumulated Depreciation		(489,693	)		(350,048	)
Net	$	1,526,071		$	776,812