Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Property and Equipment

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Note 8 - Property and Equipment
 6 Months Ended
Dec. 31, 2012
Property, Plant and Equipment Disclosure [Text Block]
NOTE 8 - PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

   
As of December 31
2012
   
As of June 30
2012
 
             
Office furniture and equipment
  $ 1,983,763     $ 1,917,221  
Computer equipment
    17,172,477       14,986,148  
Assets under capital leases
    2,123,338       1,877,145  
Building
    2,067,537       2,133,174  
Land
    1,981,111       2,044,003  
Capital work in progress
    4,713,550       4,163,730  
Autos
    594,576       648,305  
Improvements
    229,795       230,759  
Subtotal
    30,866,147       28,000,485  
Accumulated depreciation
    (12,431,380 )     (11,087,690 )
    $ 18,434,767     $ 16,912,795  

For the six months ended December 31, 2012 and 2011, depreciation expense totaled $1,529,656 and $1,374,116 respectively.  Of these amounts, $939,912 and $953,898 respectively, are reflected in cost of goods sold.

The Company’s capital work in progress consists of ongoing enhancements to its facilities and infrastructure as necessary to meet the Company’s expected long term growth needs. The Company recorded capitalized interest of $ 162,738 and $331,145 as of December 31, 2012 and June 30, 2012, respectively.

Assets acquired under capital leases were $2,123,338 and $1,877,145 as of December 31, 2012 and June 30, 2012, respectively. Accumulated amortization related to these leases was $1,046,482 and $900,790 for the periods ended December 31, 2012 and June 30, 2012, respectively.