| Commitments and Contingencies Disclosure [Text Block] |
NOTE 16 – 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 with approximately 7,210 rentable square feet for $21,800 per month. The term of the lease is for five years and five months and expires August 31, 2017. A $23,821 security deposit is included in other current assets in the accompanying consolidated financial statements.
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The Australia lease is a two-year lease that expires in March 2016 with a monthly rent of approximately $6,070.
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The Beijing lease is a three-year lease that expires in January 2017 with a monthly rent of approximately $13,655.
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The Bangkok lease is a three years lease expiring in November 2016 with monthly rent of approximately $9,257.
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The NetSol Europe facilities, located in Horsham, United Kingdom, are leased until June 23, 2021 with an annual rent of approximately $118,993.
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VLS facilities, located in Chester, United Kingdom, are leased until July 2016 with an annual rent of approximately $36,125.
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NTA facilities are located in Alameda, California with a monthly rent of $8,381. The Alameda lease expires in November 2014, which has been renewed through December 2017.
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The NetSol Pindi office lease is a one year-lease that expires in April 2015 and currently is rented at the rate of approximately $665 per month.
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Upon expiration of the leases, the Company does not anticipate any difficulty in obtaining renewals or alternative space. Rent expense amounted to $1,617,598 and $1,377,545 for the years ended June 30, 2014 and 2013, respectively.
The total annual lease commitment for the next five years is as follows:
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FYE 6/30/15
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$
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896,624
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FYE 6/30/16
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847,584
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FYE 6/30/17
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670,565
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FYE 6/30/18
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310,612
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FYE 6/30/19
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118,993
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See Note 20, Subsequent Events for class action lawsuit filed on July 25, 2014.
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