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

Annual report pursuant to Section 13 and 15(d)

Note 7 - Property And Equipment

Note 7 - Property And Equipment

12 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 7 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

	As of June 30, 2014			As of June 30, 2013

Office furniture and equipment	$	2,628,814		$	2,508,975
Computer equipment		27,215,091			19,987,480
Assets under capital leases		1,861,445			1,126,860
Building		6,259,290			2,391,550
Land		3,351,316			2,460,144
Capital work in progress		2,812,181			5,104,283
Autos		999,277			689,440
Improvements		533,102			513,044
Subtotal		45,660,516			34,781,776
Accumulated depreciation		(15,939,388	)		(13,803,407	)
Property and equipment, net	$	29,721,128		$	20,978,369

For the years ended June 30, 2014 and 2013, depreciation expense totaled $5,035,922 and $3,627,862, respectively. Of these amounts, $3,276,222 and $2,242,339 are reflected as part of cost of revenues for the years ended June 30, 2014 and 2013, 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. Accumulated capitalized interest was $664,614, and $1,015,095 as of June 30, 2014 and 2013, respectively.

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

	As of June 30, 2014			As of June 30, 2013
Computer Equipment	$	731,354		$	454,002
Furniture and Fixtures		280,184			951
Vehicles		849,907			671,907
Total		1,861,445			1,126,860
Less: Accumulated Depreciation		(469,336	)		(350,048	)
Net	$	1,392,109		$	776,812