NETSOL Technologies, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 9 - Goodwill

Note 9 - Goodwill

12 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

NOTE 9 – GOODWILL

Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in prior period businesses combinations. Goodwill was comprised of the following amounts:

	As of June 30, 2013		Impairment			As of June 30, 2014
NetSol PK	$	1,166,610	$	-		$	1,166,610
NetSol Omni		136,762		(136,762	)		-
NTE		3,471,814		-			3,471,814
VLS		214,044		-			214,044
NTA		4,664,100		-			4,664,100
Total	$	9,653,330	$	(136,762	)	$	9,516,568

The Company tests for goodwill impairment at each reporting unit. The Company had $136,762 of goodwill related to NetSol Omni, whose assets and business were consolidated into NetSol PK. As such, the goodwill was considered impaired at June 30, 2014 and the Company recorded an impairment of $136,762 which is recorded in general and administrative expenses on the accompanying consolidated statements of operations. There was no goodwill impairment for the year ended June 30, 2013.