Financials

v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Mar. 31, 2018
Jun. 30, 2017
Current assets:    
Cash and cash equivalents $ 12,711,983 $ 14,172,954
Accounts receivable, net of allowance of $333,301 and $571,511 22,874,866 6,583,199
Accounts receivable, net - related party 3,412,346 1,644,942
Revenues in excess of billings 15,286,835 19,126,389
Revenues in excess of billings - related party 153,135 80,705
Convertible note receivable - related party 750,000 200,000
Other current assets 3,104,916 2,463,886
Total current assets 58,294,081 44,272,075
Restricted cash 90,000
Revenues in excess of billings, net - long term 1,752,554 5,173,538
Property and equipment, net 17,526,227 20,370,703
Other assets 3,279,468 3,211,295
Intangible assets, net 13,533,620 17,043,151
Goodwill 9,516,568 9,516,568
Total assets 103,902,518 99,677,330
Current liabilities:    
Accounts payable and accrued expenses 7,765,645 6,880,194
Current portion of loans and obligations under capitalized leases 9,099,822 10,222,795
Unearned revenues 7,841,096 3,925,702
Common stock to be issued 88,324 88,324
Total current liabilities 24,794,887 21,117,015
Loans and obligations under capitalized leases; less current maturities 296,211 366,762
Total liabilities 25,091,098 21,483,777
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $.01 par value; 500,000 shares authorized;
Common stock, $.01 par value; 14,500,000 shares authorized; 11,457,673 shares issued and 11,251,820 outstanding as of March 31, 2018 and 11,225,385 shares issued and 11,190,606 outstanding as of June 30, 2017 114,577 112,254
Additional paid-in-capital 125,733,973 124,409,998
Treasury stock (At cost, 205,853 shares and 34,779 shares as of March 31, 2018 and June 30, 2017, respectively) (1,205,024) (454,310)
Accumulated deficit (39,172,022) (42,301,390)
Stock subscription receivable (221,000) (297,511)
Other comprehensive loss (22,005,245) (18,074,570)
Total NetSol stockholders’ equity 63,245,259 63,394,471
Non-controlling interest 15,566,161 14,799,082
Total stockholders’ equity 78,811,420 78,193,553
Total liabilities and stockholders’ equity $ 103,902,518 $ 99,677,330

Source

v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Net Revenues:        
License fees $ 2,648,870 $ 5,730,222 $ 3,210,868 $ 14,953,574
Maintenance fees 3,659,998 3,538,996 10,702,171 10,651,692
Services 9,345,210 6,669,309 25,450,138 18,844,602
License fees - related party 261,513 246,957
Maintenance fees - related party 105,325 51,698 309,539 233,674
Services - related party 1,284,417 1,959,095 4,374,802 5,954,076
Total net revenues 17,043,820 17,949,320 44,309,031 50,884,575
Cost of revenues:        
Salaries and consultants 5,418,067 6,161,110 16,244,319 18,034,263
Travel 425,060 764,867 1,226,073 2,313,002
Depreciation and amortization 1,127,077 1,340,188 3,468,293 3,989,824
Other 880,897 686,950 2,677,465 2,725,015
Total cost of revenues 7,851,101 8,953,115 23,616,150 27,062,104
Gross profit 9,192,719 8,996,205 20,692,881 23,822,471
Operating expenses:        
Selling and marketing 1,962,402 2,439,948 5,605,838 7,497,464
Depreciation and amortization 231,308 284,642 699,966 825,224
General and administrative 4,048,271 4,329,798 11,862,535 12,882,407
Research and development cost 197,643 101,193 572,619 285,732
Total operating expenses 6,439,624 7,155,581 18,740,958 21,490,827
Income from operations 2,753,095 1,840,624 1,951,923 2,331,644
Other income and (expenses)        
Gain (loss) on sale of assets 40,537 1,647 24,468 (33,095)
Interest expense (102,522) (60,357) (330,268) (176,959)
Interest income 142,356 27,229 394,837 81,085
Gain (loss) on foreign currency exchange transactions 2,550,394 390,897 5,304,723 (645,886)
Share of net loss from equity investment (263,678) (534,576)
Other income (expense) 314 (219) 15,924 28,164
Total other income (expenses) 2,367,401 359,197 4,875,108 (746,691)
Net income before  income taxes 5,120,496 2,199,821 6,827,031 1,584,953
Income tax provision (261,182) (61,604) (486,980) (440,363)
Net income 4,859,314 2,138,217 6,340,051 1,144,590
Non-controlling interest (1,994,869) (1,438,249) (3,210,683) (2,999,127)
Net income (loss) attributable to NetSol $ 2,864,445 $ 699,968 $ 3,129,368 $ (1,854,537)
Net income (loss) per share:        
Net income (loss) per common share - Basic $ 0.26 $ 0.06 $ 0.28 $ (0.17)
Net income (loss) per common share - Diluted $ 0.25 $ 0.06 $ 0.28 $ (0.17)
Weighted average number of shares outstanding        
Basic 11,190,048 10,987,214 11,118,529 10,850,538
Diluted 11,268,842 11,121,620 11,152,365 10,850,538

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash flows from operating activities:    
Net income $ 6,340,051 $ 1,144,590
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 4,168,259 4,815,048
Provision for bad debts 732
Share of net loss from investment under equity method 534,576
(Gain) loss on sale of assets (24,468) 33,095
Stock based compensation 1,281,763 1,998,968
Fair market value of warrants and stock options granted 26,956
Changes in operating assets and liabilities:    
Accounts receivable (17,848,921) (649,776)
Accounts receivable - related party (2,634,063) 405,009
Revenues in excess of billing 5,904,161 (10,388,695)
Revenues in excess of billing - related party (85,743) 553,767
Other current assets (796,126) 419,704
Accounts payable and accrued expenses 1,139,509 337,890
Unearned revenue 4,273,007 (715,880)
Net cash provided by (used in) operating activities 2,252,005 (2,018,592)
Cash flows from investing activities:    
Purchases of property and equipment (1,107,732) (1,315,922)
Sales of property and equipment 348,762 149,430
Convertible note receivable - related party (550,000)
Investment in WRLD3D (50,000) (905,555)
Purchase of subsidiary shares from open market (33,987)
Net cash used in investing activities (1,392,957) (2,072,047)
Cash flows from financing activities:    
Proceeds from the exercise of stock options and warrants 215,311 785,479
Proceeds from exercise of subsidiary options 10,349 54,377
Restricted cash 90,000
Purchase of treasury stock (750,714) (38,885)
Dividend paid by subsidiary to non-controlling interest (417,853) (968,657)
Proceeds from bank loans 696,936 1,484,162
Payments on capital lease obligations and loans - net (961,901) (251,040)
Net cash provided by (used in) financing activities (1,117,872) 1,065,436
Effect of exchange rate changes (1,202,147) (82,209)
Net decrease in cash and cash equivalents (1,460,971) (3,107,412)
Cash and cash equivalents at beginning of the period 14,172,954 11,557,527
Cash and cash equivalents at end of period 12,711,983 8,450,115
SUPPLEMENTAL DISCLOSURES:    
Interest 300,688 201,670
Taxes 388,549 215,424
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Provided services for investment in WRLD3D 601,869 836,070
Assets acquired under capital lease $ 304,533 $ 466,528

Source