Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Property and Equipment

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Note 8 - Property and Equipment
 9 Months Ended
Mar. 31, 2013
Property, Plant and Equipment Disclosure [Text Block]
NOTE 8 - PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

   
As of March 31
2013
   
As of June 30
2012
 
             
Office furniture and equipment
  $ 2,372,414     $ 1,917,221  
Computer equipment
    19,386,388       14,986,148  
Assets under capital leases
    1,024,347       1,877,145  
Building
    2,024,351       2,133,174  
Land
    2,492,755       2,044,003  
Capital work in progress
    4,720,581       4,163,730  
Autos
    708,605       648,305  
Improvements
    524,639       230,759  
Subtotal
    33,254,080       28,000,485  
Accumulated depreciation
    (13,093,208 )     (11,087,690 )
    $ 20,160,872     $ 16,912,795  

For the nine months ended March 31, 2013 and 2012, depreciation expense totaled $2,545,008 and $2,190,274 respectively.  Of these amounts, $1,559,798 and $1,386,866 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 $234,496 and $331,145 as of March 31, 2013 and June 30, 2012, respectively.

Assets acquired under capital leases were $1,024,347 and $1,877,145 as of March 31, 2013 and June 30, 2012, respectively. Accumulated amortization related to these leases was $309,769 and $900,790 for the periods ended March 31, 2013 and June 30, 2012, respectively.