Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.22.1
OPERATING SEGMENTS
 9 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 19 – OPERATING SEGMENTS

 

The Company has identified three segments for its products and services; North America, Europe and Asia-Pacific. Our 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 different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to third parties and eliminates them in the consolidation.

 

The following table presents a summary of identifiable assets as of March 31, 2022 and June 30, 2021:

 

    As of     As of  
    March 31, 2022     June 30, 2021  
Identifiable assets:                
Corporate headquarters   $ 1,765,803     $ 2,067,474  
North America     5,653,292       6,073,616  
Europe     9,448,659       10,363,611  
Asia - Pacific     65,208,505       68,101,560  
Consolidated   $ 82,076,259     $ 86,606,261  

 

The following table presents a summary of investment under equity method as of March 31, 2022 and June 30, 2021:

 

    As of     As of  
    March 31, 2022     June 30, 2021  
Investment in associates under equity method:                
Corporate headquarters   $ 337,127     $ 396,403  
Asia - Pacific     2,556,573       2,759,449  
Consolidated   $ 2,893,700     $ 3,155,852  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2022

(Unaudited)

 

The following table presents a summary of operating information for the three and nine months ended March 31:

 

    For the Three Months     For the Nine Months  
    Ended March 31,     Ended March 31,  
    2022     2021     2022     2021  
Revenues from unaffiliated customers:                                
North America   $ 1,113,820     $ 1,008,011     $ 3,104,433     $ 2,837,445  
Europe     2,088,918       2,748,945       7,483,911       8,627,042  
Asia - Pacific     11,607,088       10,027,040       33,115,205       28,088,347  
      14,809,826       13,783,996       43,703,549       39,552,834  
Revenue from affiliated customers                                
Asia - Pacific     -       -       -       -  
      -       -       -       -  
Consolidated   $ 14,809,826     $ 13,783,996     $ 43,703,549     $ 39,552,834  
                                 
Intercompany revenue                                
Europe   $ 105,668     $ 160,970     $ 349,345     $ 426,883  
Asia - Pacific     3,104,913       3,810,340       6,439,377       9,094,697  
Eliminated   $ 3,210,581     $ 3,971,310     $ 6,788,722     $ 9,521,580  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ (394,375 )   $ (804,636 )   $ (127,742 )   $ 1,536,305  
North America     (86,722 )     57,460       (213,730 )     (271,356 )
Europe     (575,533 )     (474,629 )     (973,972 )     301,472  
Asia - Pacific     1,039,158       246,635       4,287,015       (1,497,302 )
Consolidated   $ (17,472 )   $ (975,170 )   $ 2,971,571     $ 69,119  
                                 
Depreciation and amortization:                                
North America   $ 451    

$

 701     $ 1,544     $ 3,653  
Europe     88,987       139,180       288,481       356,117  
Asia - Pacific     858,495       891,962       2,579,646       2,536,433  
Consolidated   $ 947,933     $ 1,031,843     $ 2,869,671     $ 2,896,203  
                                 
Interest expense:                                
Corporate headquarters   $ 8,105     $ 4,647     $ 28,111     $ 15,578  
North America     -       725       -       2,660  
Europe     1,766       4,106       8,050       8,133  
Asia - Pacific     76,045       89,178       241,576       269,853  
Consolidated   $ 85,916     $ 98,656     $ 277,737     $ 296,224  
                                 
Income tax expense:                                
Corporate headquarters   $ -     $ -     $ 800     $ -  
North America     400       450       2,000       450  
Europe   -       18,333       9,524       222,370  
Asia - Pacific     157,204       114,373       514,413       420,064  
Consolidated   $ 157,604     $ 133,156     $ 526,737     $ 642,884  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2022

(Unaudited)

 

The following table presents a summary of capital expenditures for the nine months ended March 31:

 

    For the Nine Months  
    Ended March 31,  
    2022     2021  
Capital expenditures:                
North America   $ -     $ 1,520  
Europe     134,450       388,367  
Asia - Pacific     1,546,406       1,719,171  
Consolidated   $ 1,680,856     $ 2,109,058