NETSOL Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

6 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 10 - PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

SCHEDULE OF PROPERTY AND EQUIPMENT

	As of December 31, 2021			As of June 30, 2021

Office Furniture and Equipment	$	3,363,282		$	3,440,501
Computer Equipment		14,036,802			18,681,991
Assets Under Capital Leases		584,322			1,136,128
Building		5,547,302			6,205,210
Land		1,432,435			1,608,024
Autos		1,903,072			1,770,147
Improvements		195,465			35,592
Subtotal		27,062,680			32,877,593
Accumulated Depreciation		(16,797,295	)		(20,785,781	)
Property and Equipment, Net	$	10,265,385		$	12,091,812

For the three and six months ended December 31, 2021, depreciation expense was $527,463 and $1,067,185, respectively. Of these amounts, $314,599 and $640,050, respectively, are reflected in cost of revenues. For the three and six months ended December 31, 2020, depreciation expense was $485,456 and $981,723, respectively. Of these amounts, $263,884 and $538,361, respectively, are reflected in cost of revenues.

Following is a summary of fixed assets held under finance leases as of December 31, 2021 and June 30, 2021:

	As of December 31, 2021			As of June 30, 2021
Computers and Other Equipment	$	-		$	169,487
Furniture and Fixtures		-			57,509
Vehicles		584,322			909,132
Total		584,322			1,136,128
Less: Accumulated Depreciation - Net		(265,010	)		(627,119	)
	$	319,312		$	509,009

Finance lease term and discount rate were as follows:

SCHEDULE OF FINANCE LEASE TERM

	As of December 31, 2021			As of June 30, 2021

Weighted average remaining lease term - Finance leases		1.99 Years			0.55 Years

Weighted average discount rate - Finance leases		7.6	%		5.6	%

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2021

(Unaudited)