Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.23.1
OPERATING SEGMENTS
 9 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 17 – 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, 2023 and June 30, 2022:

 

    As of     As of  
    March 31, 2023     June 30, 2022  
Identifiable assets:                
Corporate headquarters   $ 1,633,771     $ 844,178  
North America     6,332,955       6,442,219  
Europe     8,351,282       8,727,530  
Asia - Pacific     43,231,859       56,594,705  
Consolidated   $ 59,549,867     $ 72,608,632  

 

The following table presents a summary of investment under equity method as of March 31, 2023 and June 30, 2022:

 

    As of     As of  
    March 31, 2023     June 30, 2022  
Investment in associates under equity method:                
Asia - Pacific   $ 1,066,878     $ 1,059,368  
Consolidated   $ 1,066,878     $ 1,059,368  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2023

(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,  
    2023     2022     2023     2022  
Revenues from unaffiliated customers:                                
North America   $ 1,365,556     $ 1,113,820     $ 4,088,696     $ 3,104,433  
Europe     2,550,372       2,088,918       7,643,408       7,483,911  
Asia - Pacific     9,590,461       11,607,088       26,870,762       33,115,205  
      13,506,389       14,809,826       38,602,866       43,703,549  
Revenue from affiliated customers                                
Asia - Pacific     -       -       -       -  
      -       -       -       -  
Consolidated   $ 13,506,389     $ 14,809,826     $ 38,602,866     $ 43,703,549  
                                 
Intercompany revenue                                
Europe   $ 103,249     $ 105,668     $ 292,210     $ 349,345  
Asia - Pacific     2,985,506       3,104,913       7,260,557       6,439,377  
Eliminated   $ 3,088,755     $ 3,210,581     $ 7,552,767     $ 6,788,722  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ 289,652     $ (394,375 )   $ 919,914     $ (127,742 )
North America     (3,702 )     (86,722 )     82,677       (213,730 )
Europe     (103,219 )     (575,533 )     (586,607 )     (973,972 )
Asia - Pacific     4,059,800       1,039,158       986,613       4,287,015  
Consolidated   $ 4,242,531     $ (17,472 )   $ 1,402,597     $ 2,971,571  
                                 
Depreciation and amortization:                                
North America   $ 657     $ 451     $ 1,866     $ 1,544  
Europe     65,584       88,987       207,186       288,481  
Asia - Pacific     716,725       858,495       2,310,417       2,579,646  
Consolidated   $ 782,966     $ 947,933     $ 2,519,469     $ 2,869,671  
                                 
Interest expense:                                
Corporate headquarters   $ 7,834     $ 8,105     $ 16,226     $ 28,111  
North America     -       -       -       -  
Europe     1,806       1,766       8,146       8,050  
Asia - Pacific     178,497       76,045       487,738       241,576  
Consolidated   $ 188,137     $ 85,916     $ 512,110     $ 277,737  
                                 
Income tax expense:                                
Corporate headquarters   $ -     $ -     $ -     $ (43,354 )
North America     1,600       400       1,600       46,154  
Europe     2,822       -       2,822       9,524  
Asia - Pacific     223,296       157,204       636,700       514,413  
Consolidated   $ 227,718     $ 157,604     $ 641,122     $ 526,737  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2023

(Unaudited)

 

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

 

    For the Nine Months  
    Ended March 31,  
    2023     2022  
Capital expenditures:                
North America   $ 4,880     $ -  
Europe     31,519       134,450  
Asia - Pacific     1,538,660       1,546,406  
Consolidated   $ 1,575,059     $ 1,680,856