NETSOL Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Intangible Assets

Note 8 - Intangible Assets

6 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

NOTE 8 - INTANGIBLE ASSETS

Intangible assets consisted of the following:

	Product Licenses			Customer Lists			Technology			Total
Intangible assets - June 30, 2013 - cost	$	44,837,558		$	6,052,377		$	242,702		$	51,132,637
Additions		2,312,919			-			-			2,312,919
Effect of translation adjustment		(1,533,894	)		-			-			(1,533,894	)
Accumulated amortization		(16,709,748	)		(5,915,800	)		(109,217	)		(22,734,765	)
Net balance - December 31, 2013	$	28,906,835		$	136,577		$	133,485		$	29,176,897

(A) Product Licenses

Product licenses include internally-developed original license issues, renewals, enhancements, copyrights, trademarks, and trade names. Product licenses are being amortized on a straight-line basis over their respective lives, which is currently a weighted average of approximately 8 years. Amortization expense for the three and six months ended December 31, 2013 was $523,825 and $957,384, respectively. Amortization expense for the three and six months ended December 31, 2012 was $538,840 and $1,042,246, respectively.

(B) Customer Lists

Customer lists are being amortized based on a straight-line basis, which approximates the anticipated rate of attrition, which is currently a weighted average of approximately 5 years. Amortization expense for the three and six months ended December 31, 2013 was $18,832 and $48,880, respectively. Amortization expense for the three and six months ended December 31, 2012 was $30,496 and $60,782, respectively.

Technology assets are being amortized on a straight-line basis over their respective lives, which is currently a weighted average of approximately 5 years. Amortization expense for the three and six months ended December 31, 2013 was $12,658 and $24,777 respectively. Amortization expense for the three and six months ended December 31, 2012 was $12,557 and $24,910, respectively.

(D) Future Amortization

Estimated amortization expense of intangible assets over the next five years is as follows:

Year ended:
December 31, 2014	$	2,840,303
December 31, 2015		2,347,211
December 31, 2016		1,938,760
December 31, 2017		1,871,549
December 31, 2018		1,832,323
Thereafter		18,346,751
	$	29,176,897