Long-Term Investment |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, All Other Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Investment |
NOTE 13 – LONG TERM INVESTMENT
Drivemate
The Company and Drivemate Co., Ltd. (“Drivemate”) entered into a subscription agreement (“Drivemate Agreement”) whereby the Company will purchase an equity interest of 30% in Drivemate. Per the Drivemate Agreement, the Company will purchase 5,469 preferred shares for $1,800,000 consisting of $500,000 cash and $1,300,000 in services. The Company paid $250,000 on May 2, 2019 and received 760 shares for a 5.27% holding in Drivemate. The remaining $250,000 will be paid in $62,500 increments beginning 15 months from the date of the Drivemate Agreement signing with the final payment due 24 months from the date of the Drivemate Agreement signing. Per the Drivemate Agreement, the Company appointed two directors to the Drivemate board. The Company determined that it met the significant influence criteria since two of the four directors are appointed by the Company and the Company is to own 30% of Drivemate at the final payment date; therefore, the Company accounts for the investment using the equity method of accounting.
During the three months ended September 30, 2019, the Company performed $204,615 of services.
Under the equity method of accounting, the Company recorded its share of net loss of $5,392 for the three months ended September 30, 2019.
WRLD3D-Related Party
On March 2, 2017, the Company purchased a 4.9% interest in WRLD3D, a non-public company, for $1,111,111. The Company paid $555,556 at the initial closing and $555,555 on September 1, 2017. NetSol PK, the subsidiary of the Company, purchased a 12.2% investment in WRLD3D, for $2,777,778 which was earned by providing IT and enterprise software solutions.
During the three months ended September 30, 2019 and 2018, NetSol PK provided services valued at $82,933 and $162,845, respectively, which is recorded as services-related party. Accounts receivable at September 30, 2019 and June 30, 2019 were $1,166,431 and $1,020,589, respectively. Revenue in excess of billing at September 30, 2019 and June 30, 2019 were $48,145 and $110,827, respectively.
Under the equity method of accounting, the Company recorded its share of net loss of $183,832 and $299,691 for the three months ended September 30, 2019 and 2018, respectively.
The following table reflects the above investments at September 30, 2019.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||