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

9 Months Ended

Mar. 31, 2014

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		$	6,052,378		$	242,702		$	51,132,638
Additions		3,158,083			-			-			3,158,083
Disposal		(591,216	)		-			-			(591,216	)
Effect of translation adjustment		836,407			-			-			836,407
Accumulated amortization		(17,636,284	)		(5,928,217	)		(121,352	)		(23,685,853	)
Net balance - March 31, 2014	$	30,604,548		$	124,161		$	121,350		$	30,850,059

(A) Product Licenses

Product licenses include internally-developed original license issues, renewals, enhancements, copyrights, trademarks, and trade names. Product licenses are 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 nine months ended March 31, 2014 was $612,792, and $1,329,470, respectively. Amortization expense for the three and nine months ended March 31, 2013 was $413,137 and $1,455,383, 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 nine months ended March 31, 2014 was $13,235, and $62,115, respectively. Amortization expense for the three and nine months ended March 31, 2013 was $17,442 and $78,224, 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 nine months ended March 31, 2014 was $12,935, and $37,712, respectively. Amortization expense for the three and nine months ended March 31, 2013 was $24,792 and $49,702, respectively.

(D) Future Amortization

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

Year ended:
March 31, 2015	$	2,468,920
March 31, 2016		2,341,279
March 31, 2017		2,080,550
March 31, 2018		2,017,453
March 31, 2019		1,957,049
Thereafter		19,984,808
	$	30,850,059