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

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Property and Equipment

Note 7 - Property and Equipment

3 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 7 - PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

	As of September 30, 2014			As of June 30, 2014

Office Furniture and Equipment	$	2,604,368		$	2,628,814
Computer Equipment		26,325,684			27,215,091
Assets Under Capital Leases		1,946,650			1,861,445
Building		5,947,499			6,259,290
Land		3,184,379			3,351,316
Capital Work In Progress		2,860,802			2,812,181
Autos		922,681			999,277
Improvements		506,424			533,102
Subtotal		44,298,487			45,660,516
Accumulated Depreciation		(16,446,077	)		(15,939,388	)
Property and Equipment, Net	$	27,852,410		$	29,721,128

For the three months ended September 30, 2014 and 2013, depreciation expense totaled $1,368,707, and $997,560, respectively. Of these amounts, $918,892, and $613,110, respectively, is reflected in cost of revenues.

The Company’s capital work in progress consists of ongoing enhancements to its facilities and infrastructure necessary to meet expected long term growth needs. Accumulated capitalized interest was $693,367, and $664,614 as of September 30, 2014 and June 30, 2014, respectively.

Following is a summary of fixed assets held under capital leases as of September 30, 2014 and June 30, 2014:

	As of September 30, 2014			As of June 30, 2014
Computers, Software and Other Equipment	$	780,977		$	731,354
Furniture and Fixtures		347,966			280,184
Vehicles		817,707			849,907
Total		1,946,650			1,861,445
Less: Accumulated Depreciation, Net		(525,387	)		(469,336	)
	$	1,421,263		$	1,392,109