Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.22.2.2
OPERATING SEGMENTS
 3 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 18 – 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 September 30, 2022 and June 30, 2022:

 

    As of     As of  
    September 30, 2022     June 30, 2022  
Identifiable assets:                
Corporate headquarters   $ 1,758,935     $ 844,178  
North America     6,548,741       6,442,219  
Europe     8,354,174       8,727,530  
Asia - Pacific     49,783,782       56,594,705  
Consolidated   $ 66,445,632     $ 72,608,632  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2022

(Unaudited)

 

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

 

    As of     As of  
    September 30, 2022     June 30, 2022  
Investment in associates under equity method:                
Corporate headquarters   $ -     $ -  
Asia - Pacific     1,059,368       1,059,368  
Consolidated   $ 1,059,368     $ 1,059,368  

 

The following table presents a summary of operating information for the three months ended September 30:

 

    For the Three Months  
    Ended September 30,  
    2022     2021  
Revenues from unaffiliated customers:                
North America   $ 1,125,288     $ 930,234  
Europe     2,247,335       3,272,899  
Asia - Pacific     9,333,496       9,217,628  
      12,706,119       13,420,761  
Revenue from affiliated customers                
Asia - Pacific     -       -  
      -       -  
Consolidated   $ 12,706,119     $ 13,420,761  
                 
Intercompany revenue                
Europe   $ 95,725     $ 127,198  
Asia - Pacific     1,729,953       2,560,100  
Eliminated   $ 1,825,678     $ 2,687,298  
                 
Net income (loss) after taxes and before non-controlling interest:                
Corporate headquarters   $ 1,327,200     $ 128,544  
North America     (18,947 )     (68,093 )
Europe     (319,755 )     191,443  
Asia - Pacific     (1,426,469 )     298,601  
Consolidated   $ (437,971 )   $ 550,495  
                 
Depreciation and amortization:                
North America   $ 482     $ 566  
Europe     75,171       98,848  
Asia - Pacific     769,350       880,592  
Consolidated   $ 845,003     $ 980,006  
                 
Interest expense:                
Corporate headquarters   $ 2,480     $ 10,441  
North America     -       -  
Europe     3,638       3,796  
Asia - Pacific     115,492       86,776  
Consolidated   $ 121,610     $ 101,013  
                 
Income tax expense:                
Corporate headquarters   $ -     $ 800  
North America     -       1,600  
Europe     -       -  
Asia - Pacific     193,348       165,227  
Consolidated   $ 193,348     $ 167,627  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2022

(Unaudited)

 

The following table presents a summary of capital expenditures for the three months ended September 30:

 

    For the Three Months  
    Ended September 30,  
    2022     2021  
Capital expenditures:                
North America   $ 1,133     $ -  
Europe     -       54,380  
Asia - Pacific     1,346,468       161,732  
Consolidated   $ 1,347,601     $ 216,112