Annual report pursuant to Section 13 and 15(d)

Note 17 - Segment Information And Geographic Areas

v2.4.0.8
Note 17 - Segment Information And Geographic Areas
 12 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 17 – SEGMENT INFORMATION AND GEOGRAPHIC AREAS

The Company has identified three global regions or segments for its products and services; North America, Europe, and Asia-Pacific. The reportable segments are business units located in different global regions. Each business unit provides similar products and services; license fees for leasing and asset-based software, related maintenance fees, and implementation and IT consulting services. Separate management of each segment is required because each business unit is subject to operational issues and strategies unique to their particular regional location. We account for intercompany sales and expenses as if the sales or expenses were to third parties and eliminate them in consolidation.

The following table presents a summary of identifiable assets as of June 30, 2014 and 2013:

   
As of June 30,
 2014
   
As of June 30,
 2013
 
Identifiable assets:
           
Corporate headquarters
  $ 5,150,823     $ 5,011,474  
North America
    7,406,631       7,661,245  
Europe
    6,169,265       8,838,425  
Asia - Pacific
    76,176,555       81,192,971  
Consolidated
  $ 94,903,274     $ 102,704,115  

The following table presents a summary of operating information for the years ended June 30:

   
2014
   
2013
 
Revenues from unaffiliated customers:
           
North America
  $ 4,729,908     $ 5,796,484  
Europe
    6,529,311       7,838,642  
Asia - Pacific
    20,154,790       32,479,754  
Consolidated
  $ 31,414,009     $ 46,114,880  
                 
Revenue from affiliated customers                
Asia - Pacific   $ 4,970,794     $ 3,734,583  
      4,970,794       3,734,583  
Consolidated   $ 36,384,803     $ 49,849,463  
                 
Intercompany Revenue
               
Europe
  $ 490,888     $ 197,761  
Asia - Pacific
    3,680,292       3,380,512  
Eliminated
  $ 4,171,180     $ 3,578,273  
                 
Net income (loss) after taxes and before non-controlling interest:
               
Corporate headquarters
  $ (5,012,922 )   $ (3,695,617 )
North America
    1,357,522       2,452,427  
Europe
    (1,583,512 )     1,050,276  
Asia - Pacific
    (8,857,562 )     14,066,719  
Discontinued operation
    1,158,752       (1,785,750 )
Consolidated
  $ (12,937,722 )   $ 12,088,055  
                 
Depreciation and amortization:
               
Corporate headquarters
  $ 47,932     $ 136,541  
North America
    100,875       164,831  
Europe
    854,163       860,485  
Asia - Pacific
    7,727,766       4,059,647  
Consolidated
  $ 8,730,736     $ 5,221,504  
                 
Interest expense:
               
Corporate headquarters
  $ 34,461     $ 358,308  
North America
    6,916       42,235  
Europe
    164,569       184,447  
Asia - Pacific
    49,731       78,977  
Consolidated
  $ 255,677     $ 663,967  
                 
Income tax expense:
               
Europe
  $ 7,298     $ 7,606  
Asia - Pacific
    330,984       457,820  
Consolidated
  $ 338,282     $ 465,426  

The following table presents a summary of capital expenditures for the years ended June 30:

   
2014
   
2013
 
 Capital expenditures:
           
Corporate headquarters
  $ 4,531     $ 7,992  
North America
    16,387       51,741  
Europe
    523,189       491,226  
Asia - Pacific
    12,692,029       8,407,917  
Consolidated
  $ 13,236,136     $ 8,958,876  

Geographic Information

Disclosed in the table below is geographic information for each country that comprised greater than five percent of total revenues for the years ended June 30 2014 and 2013.

   
June 30, 2014
   
June 30, 2013
 
   
Revenue
   
Long-lived Assets
   
Revenue
   
Long-lived Assets
 
                         
China
  $ 9,924,993     $ 10,420     $ 10,156,476     $ 138,597  
Thailand
    3,833,442       612,189       7,104,115       520,652  
USA
    6,205,706       9,621,308       5,013,889       10,552,454  
UK
    8,745,813       1,217,371       6,882,417       1,492,607  
Pakistan & India
    1,278,860       56,550,911       2,731,951       47,379,603  
Australia & New Zealand
    1,960,661       28,515       6,030,646       440  
Mexico
    1,133,492       -       2,624,450       -  
Other Countries
    3,301,836       -       9,305,519       -  
Total
  $ 36,384,803     $ 68,040,714     $ 49,849,463     $ 60,084,353  

Disclosed in the table below is the reconciliation of revenue from un-affiliated parties by each entity and country disclosed above for the years ended June 30 2014 and 2013.

   
Revenues 2014
 
   
Total
   
China
   
Thailand
   
USA
   
UK
   
Pakistan & India
   
Australia &
New Zealand
   
Mexico
   
Other Countries
 
                                                       
 Corporate headquarters
  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
                                                                         
 North America:
                                                                       
 NTA
    4,729,908       -       -       3,596,417       -       -       -       1,133,492       -  
      4,729,908       -       -       4,729,908       -       -       -       -       -  
                                                                         
 Europe:
                                                                       
 NTE
    4,471,175       -       -       -       4,471,175       -       -       -       -  
 VLS
    2,058,136       -       -       -       2,058,136       -       -       -       -  
      6,529,311       -       -       -       6,529,311       -       -       -       -  
 Asia-Pacific:
                                                                       
 NetSol PK
    14,628,317       7,008,245       2,938,706       31,569       -       203,089       1,144,872       -       3,301,836  
 Netsol-Innovation
    4,970,794       -       -       2,577,721       2,216,502       -       176,571       -       -  
 Connect
    863,620       -       -       -       -       863,620       -       -       -  
 Abraxas
    639,218       -       -       -       -       -       639,218       -       -  
 NTPK Thailand
    1,106,887       -       894,736       -       -       212,151       -       -       -  
 NetSol Beijing
    2,916,748       2,916,748       -       -       -       -       -       -       -  
      25,125,584       9,924,993       3,833,442       2,609,290       2,216,502       1,278,860       1,960,661       -       3,301,836  
                                                                         
     Total
  $ 36,384,803     $ 9,924,993     $ 3,833,442     $ 6,205,706     $ 8,745,813     $ 1,278,860     $ 1,960,661     $ 1,133,492     $ 3,301,836  

   
Revenues 2013
 
   
Total
   
China
   
Thailand
   
USA
   
UK
   
Pakistan & India
   
Australia &
New Zealand
   
Mexico
   
Other Countries
 
                                                       
 Corporate headquarters
  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
                                                                         
 North America:
                                                                       
 NTA
    5,796,484       -       -       3,172,034       -       -       -       2,624,450       -  
 North America:
    5,796,484       -       -       3,172,034       -       -       -       2,624,450       -  
                                                                         
 Europe:
                                                                       
 NTE
    6,183,202       1,450,000       -       -       3,611,567       -       -       -       1,121,635  
 VLS
    1,655,440       -       -       -       1,655,440       -       -       -       -  
 Europe:
    7,838,642       1,450,000       -       -       5,267,007       -       -       -       1,121,635  
 Asia-Pacific:
                                                                       
 NetSol PK
    22,605,831       8,386,318       2,110,555       1,356       (5,230 )     1,119,530       4,397,880       -       6,595,422  
 Netsol-Innovation
    3,734,583       -       -       1,840,499       1,620,640       -       273,444       -       -  
 Connect
    760,795       -       -       -       -       760,795       -       -       -  
 Abraxas
    1,359,322       -       -       -       -       -       1,359,322       -       -  
 NTPK Thailand
    7,433,648       -       4,993,560       -       -       851,626       -       -       1,588,462  
 NetSol Beijing
    320,158       320,158       -       -       -       -       -       -       -  
 Asia-Pacific:
    36,214,337       8,706,476       7,104,115       1,841,855       1,615,410       2,731,951       6,030,646       -       8,183,884  
                                                                         
     Total
  $ 49,849,463     $ 10,156,476     $ 7,104,115     $ 5,013,889     $ 6,882,417     $ 2,731,951     $ 6,030,646     $ 2,624,450     $ 9,305,519