| Commitments and Contingencies Disclosure [Text Block] |
NOTE
19 – COMMITMENTS AND CONTINGENCIES
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(A)
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Non-cancellable
operating leases
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The
Company’s headquarters is located in
Calabasas, California in approximately 7,210
rentable square feet and a rent of $21,165 per
month. The term of the lease is for five years and
five months and expires on August 31, 2017. A
security deposit of $23,821 was made and is
included in other current assets in the
accompanying consolidated financial
statements.
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The
Australia lease was for six months expiring June
30, 2013 and is rented at the rate of $6,091 per
month.
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The
Beijing lease is a three-year lease that expires in
January 2014. The monthly rent is approximately
$10,217.
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The
Bangkok lease is a three years lease expiring in
November 2013 with monthly rent of approximately
$8,140.
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The
NetSol Europe facilities, located in Horsham,
United Kingdom, are leased until June 23, 2021 for
an annual rent of approximately $106,512.
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VLS
facilities, located in London, United Kingdom, are
leased until October 2015 for an annual rent of
approximately $53,256.
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NTNA
relocated to Alameda, California location. The
Alameda lease is about to end in November 2013. The
monthly rent is $8,759.
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The
NetSol Pindi office lease is a one year-lease that
expires in April 2014 and currently is rented at
the rate of approximately $591 per month.
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Upon
expiration of its leases, the Company does not anticipate
any difficulty in obtaining renewals or alternative space.
Rent expense amounted to $1,377,545 and $1,026,304 for the
years ended June 30, 2013 and 2012, respectively.
The
total annual lease commitment for the next five years is as
follows:
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FYE
6/30/14
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$
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645,087
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FYE
6/30/15
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421,367
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FYE
6/30/16
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393,711
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FYE
6/30/17
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384,042
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FYE
6/30/18
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237,529
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As
of June 30, 2013, and to the best knowledge of the
Company’s management and counsel, there is no
material litigation pending or threatened against the
Company.
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