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Financials

v3.20.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Mar. 31, 2020
Jun. 30, 2019
Current assets:    
Cash and cash equivalents $ 15,743,328 $ 17,366,364
Accounts receivable, net of allowance of $364,383 and $192,786 12,900,412 12,332,714
Accounts receivable, net of allowance of $54,307 and $166,075 - related party 1,332,575 3,266,600
Revenues in excess of billings, net of allowance of $190,811 and $194,684 15,301,150 14,719,047
Revenues in excess of billings - related party 8,245 110,827
Convertible note receivable - related party 4,250,000 3,650,000
Other current assets 3,593,365 3,146,264
Total current assets 53,129,075 54,591,816
Revenues in excess of billings, net - long term 1,282,898 1,281,492
Property and equipment, net 11,553,814 12,096,855
Right of use of assets - operating leases 2,690,777
Long term investment 2,329,706 2,653,769
Other assets 23,066 23,569
Intangible assets, net 5,880,759 7,332,950
Goodwill 9,516,568 9,516,568
Total assets 86,406,663 87,497,019
Current liabilities:    
Accounts payable and accrued expenses 7,107,933 7,476,560
Current portion of loans and obligations under finance leases 8,794,858 6,905,597
Current portion of operating lease obligations 1,146,696
Unearned revenues 3,440,663 5,977,736
Common stock to be issued 88,324 88,324
Total current liabilities 20,578,474 20,448,217
Loans and obligations under finance leases; less current maturities 305,702 564,572
Operating lease obligations; less current maturities 1,635,866
Total liabilities 22,520,042 21,012,789
Commitments and contingencies
Stockholders' equity:    
Preferred stock, $.01 par value; 500,000 shares authorized;
Common stock, $.01 par value; 14,500,000 shares authorized; 12,038,697 shares issued and 11,791,194 outstanding as of March 31, 2020 and 11,911,742 shares issued and 11,664,239 outstanding as of June 30, 2019 120,387 119,117
Additional paid-in-capital 128,374,098 127,737,999
Treasury stock (At cost, 247,503 shares and 247,503 shares as of March 31, 2020 and June 30, 2019, respectively) (1,455,969) (1,455,969)
Accumulated deficit (35,448,063) (35,206,898)
Other comprehensive loss (34,065,385) (33,125,006)
Total NetSol stockholders' equity 57,525,068 58,069,243
Non-controlling interest 6,361,553 8,414,987
Total stockholders' equity 63,886,621 66,484,230
Total liabilities and stockholders' equity $ 86,406,663 $ 87,497,019

Source

v3.20.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Net Revenues:        
Total net revenues $ 13,530,837 $ 17,127,055 $ 42,793,272 $ 50,526,227
Cost of revenues:        
Salaries and consultants 4,850,438 4,833,611 13,931,274 14,351,227
Travel 1,052,033 1,793,964 3,967,591 4,652,143
Depreciation and amortization 737,637 874,654 2,191,654 2,692,306
Other 868,491 1,067,506 2,767,927 3,176,602
Total cost of revenues 7,508,599 8,569,735 22,858,446 24,872,278
Gross profit 6,022,238 8,557,320 19,934,826 25,653,949
Operating expenses:        
Selling and marketing 1,587,821 1,864,990 5,189,785 5,614,619
Depreciation and amortization 206,035 252,442 623,901 658,453
General and administrative 4,151,394 3,833,209 12,638,797 12,241,988
Research and development cost 453,050 513,770 1,580,625 1,256,577
Total operating expenses 6,398,300 6,464,411 20,033,108 19,771,637
Income (loss) from operations (376,062) 2,092,909 (98,282) 5,882,312
Other income and (expenses)        
Gain (loss) on sale of assets 129 16,380 368 65,170
Interest expense (94,395) (70,447) (246,064) (233,685)
Interest income 448,368 201,084 1,283,279 680,469
Gain (loss) on foreign currency exchange transactions 1,770,894 47,218 71,765 2,594,885
Share of net loss from equity investment (78,502) (245,389) (432,522) (843,373)
Other income 17,012 3,116 243,325 12,998
Total other income (expenses) 2,063,506 (48,038) 920,151 2,276,464
Net income before income taxes 1,687,444 2,044,871 821,869 8,158,776
Income tax provision (218,351) (275,476) (1,067,099) (777,262)
Net income (loss) 1,469,093 1,769,395 (245,230) 7,381,514
Non-controlling interest (468,286) (501,835) 4,065 (2,295,736)
Net income (loss) attributable to NetSol $ 1,000,807 $ 1,267,560 $ (241,165) $ 5,085,778
Net income (loss) per share:        
Net income (loss) per common share - Basic $ 0.09 $ 0.11 $ (0.02) $ 0.44
Net income (loss) per common share - Diluted $ 0.09 $ 0.11 $ (0.02) $ 0.44
Weighted average number of shares outstanding        
Basic 11,753,063 11,656,098 11,713,827 11,580,066
Diluted 11,753,063 11,691,342 11,713,827 11,615,310
License Fees [Member]        
Net Revenues:        
Total net revenues $ 312,133 $ 2,536,320 $ 3,375,241 $ 13,310,002
Maintenance Fees [Member]        
Net Revenues:        
Total net revenues 4,934,635 3,704,756 14,291,959 11,106,155
Services [Member]        
Net Revenues:        
Total net revenues 8,222,227 10,728,983 24,923,873 25,548,451
Services - Related Party [Member]        
Net Revenues:        
Total net revenues $ 61,842 $ 156,996 $ 202,199 $ 561,619

Source

v3.20.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash flows from operating activities:    
Net income (loss) $ (245,230) $ 7,381,514
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization 2,815,555 3,350,759
Provision for bad debts 75,437
Share of net loss from investment under equity method 432,522 843,373
Gain on sale of assets (368) (65,170)
Stock based compensation 565,287 980,682
Fair market value of stock options 43,612
Changes in operating assets and liabilities:    
Accounts receivable (651,991) (4,249,540)
Accounts receivable - related party 1,979,232 (461,435)
Revenues in excess of billing (1,394,184) (6,862,451)
Revenues in excess of billing - related party 106,592 (97,359)
Other current assets (824,068) (1,189,909)
Accounts payable and accrued expenses 63,289 (540,615)
Unearned revenue (2,510,954) 611,157
Net cash provided by (used in) operating activities 411,119 (255,382)
Cash flows from investing activities:    
Purchases of property and equipment (1,011,285) (2,590,302)
Sales of property and equipment 33,820 1,005,214
Convertible note receivable - related party (600,000) (1,126,500)
Net cash used in investing activities (1,577,465) (2,711,588)
Cash flows from financing activities:    
Proceeds from the exercise of stock options and warrants 85,000
Proceeds from exercise of subsidiary options 11,621 2,650
Dividend paid by subsidiary to non-controlling interest (1,920,618) (566,465)
Proceeds from bank loans 2,312,968 1,337,092
Payments on finance lease obligations and loans - net (422,051) (298,610)
Net cash provided by (used in) financing activities (18,080) 559,667
Effect of exchange rate changes (438,610) (2,666,960)
Net decrease in cash and cash equivalents (1,623,036) (5,074,263)
Cash and cash equivalents at beginning of the period 17,366,364 22,088,853
Cash and cash equivalents at end of period 15,743,328 17,014,590
SUPPLEMENTAL DISCLOSURES:    
Interest 220,041 256,528
Taxes 1,112,179 673,712
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Assets acquired under finance lease 66,256
Assets recognized under operating lease $ 3,474,583

Source