Retatement of Previously Issued Financial Statements (Tables)

v3.7.0.1

Retatement of Previously Issued Financial Statements (Tables)	9 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Condensed Consolidated Financial Statements	Balance Sheet         As of September 30, 2015                           As Originally     Amount of             Presented     Restatement     As Restated   ASSETS                         Current assets:                         Cash and cash equivalents   $ 10,075,324             $ 10,075,324   Restricted cash     90,000               90,000   Accounts receivable, net of allowance of $518,657 and $524,565     7,485,807               7,485,807   Accounts receivable, net - related party     4,409,186               4,409,186   Revenues in excess of billings     6,560,754       (591,119 )     5,969,635   Other current assets     2,279,083               2,279,083   Total current assets     30,900,154       (591,119 )     30,309,035   Property and equipment, net     24,053,908               24,053,908   Intangible assets, net     21,837,105               21,837,105   Goodwill     9,516,568               9,516,568   Total assets   $ 86,307,735     $ (591,119 )   $ 85,716,616                             LIABILITIES AND STOCKHOLDERS’ EQUITY                         Current liabilities:                         Accounts payable and accrued expenses   $ 5,030,352             $ 5,030,352   Current portion of loans and obligations under capitalized leases     4,241,836               4,241,836   Unearned revenues     4,302,524       (88,888 )     4,213,636   Common stock to be issued     88,324               88,324   Total current liabilities     13,663,036       (88,888 )     13,574,148   Long term loans and obligations under capitalized leases; less current maturities     329,834               329,834   Total liabilities     13,992,870       (88,888 )     13,903,982   Commitments and contingencies                         Stockholders’ equity:                         Preferred stock, $.01 par value; 500,000 shares authorized;     -       -       -   Common stock, $.01 par value; 14,500,000 shares authorized; 10,322,826 shares issued and 10,295,547 outstanding as of September 30, 2015 and 10,307,826 shares issued and 10,280,547 outstanding as of June 30, 2015     103,228               103,228   Additional paid-in-capital     119,287,407               119,287,407   Treasury stock (27,279 shares)     (415,425 )             (415,425 ) Accumulated deficit     (41,137,149 )     (326,952 )     (41,464,101 ) Stock subscription receivable     (1,139,672 )             (1,139,672 ) Other comprehensive loss     (18,130,300 )             (18,130,300 ) Total NetSol stockholders’ equity     58,568,089       (326,952 )     58,241,137   Non-controlling interest     13,746,776       (175,279 )     13,571,497   Total stockholders’ equity     72,314,865       (502,231 )     71,812,634   Total liabilities and stockholders’ equity   $ 86,307,735     $ (591,119 )   $ 85,716,616     For the Three Months         Ended September 30, 2015                           As Originally     Amount of             Presented     Restatement     As Restated   Net Revenues:                         License fees   $ 1,193,354     $ (591,119 )   $ 602,235   Maintenance fees     3,012,238       88,888       3,101,126   Services     6,753,873               6,753,873   Maintenance fees - related party     158,231               158,231   Services - related party     2,187,408               2,187,408   Total net revenues     13,305,104       (502,231 )     12,802,873                             Cost of revenues:                         Salaries and consultants     4,999,890               4,999,890   Travel     481,453               481,453   Depreciation and amortization     1,474,235               1,474,235   Other     938,797               938,797   Total cost of revenues     7,894,375       -       7,894,375                             Gross profit     5,410,729       (502,231 )     4,908,498                             Operating expenses:                         Selling and marketing     1,698,404               1,698,404   Depreciation and amortization     291,172               291,172   General and administrative     3,366,047               3,366,047   Research and development cost     112,070               112,070   Total operating expenses     5,467,693       -       5,467,693                             Loss from operations     (56,964 )     (502,231 )     (559,195 )                           Other income and (expenses)                         Loss on sale of assets     (11,873 )             (11,873 ) Interest expense     (68,173 )             (68,173 ) Interest income     52,112               52,112   Loss on foreign currency exchange transactions     (113,719 )             (113,719 ) Other income     54,314               54,314   Total other income (expenses)     (87,339 )     -       (87,339 )                           Net loss before income taxes     (144,303 )     (502,231 )     (646,534 ) Income tax provision     (75,223 )             (75,223 ) Net loss     (219,526 )     (502,231 )     (721,757 ) Non-controlling interest     (191,502 )     175,279       (16,223 ) Net loss attributable to NetSol   $ (411,028 )   $ (326,952 )   $ (737,980 )                           Net loss per share:                         Net loss per common share                         Basic   $ (0.04 )   $ (0.03 )   $ (0.07 ) Diluted   $ (0.04 )   $ (0.03 )   $ (0.07 )                           Weighted average number of shares outstanding                         Basic     10,281,335       10,281,335       10,281,335   Diluted     10,281,335       10,281,335       10,281,335         For the Three Months       Ended September 30, 2015                           As Originally     Amount of             Presented     Restatement     As Restated   Net loss   $ (411,028 )   $ (326,952 )   $ (737,980 ) Other comprehensive income (loss):                         Translation adjustment     (1,248,567 )     -       (1,248,567 ) Comprehensive income (loss)     (1,659,595 )     (326,952 )     (1,986,547 ) Comprehensive income (loss) attributable to non-controlling interest     (285,367 )     -       (285,367 ) Comprehensive income (loss) attributable to NetSol   $ (1,374,228 )   $ (326,952 )   $ (1,701,180 )   For the Three Months         Ended September 30, 2015                           As Originally     Amount of             Presented     Restatement     As Restated   Cash flows from operating activities:                         Net loss   $ (219,526 )   $ (502,231 )   $ (721,757 ) Adjustments to reconcile net loss to net cash used in operating activities:                         Depreciation and amortization     1,765,407               1,765,407   Provision for bad debts     36,780               36,780   Loss on sale of assets     11,873               11,873   Stock issued for services     77,750               77,750   Changes in operating assets and liabilities:                         Accounts receivable     (1,268,570 )             (1,268,570 ) Accounts receivable - related party     (975,266 )             (975,266 ) Revenues in excess of billing     (773,583 )     591,119       (182,464 ) Revenues in excess of billing - related party     (138,926 )             (138,926 ) Other current assets     (322,533 )             (322,533 ) Accounts payable and accrued expenses     (833,638 )             (833,638 ) Unearned revenue     (538,259 )     (88,888 )     (627,147 ) Net cash used in operating activities     (3,178,491 )     -       (3,178,491 )                           Cash flows from investing activities:                         Purchases of property and equipment     (625,794 )             (625,794 ) Sales of property and equipment     180,258               180,258   Net cash used in investing activities     (445,536 )     -       (445,536 )                           Cash flows from financing activities:                         Proceeds from sale of common stock     64,931               64,931   Proceeds from bank loans     437,070               437,070   Payments on capital lease obligations and loans - net     (174,385 )             (174,385 ) Net cash provided by financing activities     327,616       -       327,616   Effect of exchange rate changes     (797,222 )             (797,222 ) Net decrease in cash and cash equivalents     (4,093,633 )     -       (4,093,633 ) Cash and cash equivalents, beginning of the period     14,168,957               14,168,957   Cash and cash equivalents, end of period   $ 10,075,324     $ -     $ 10,075,324      Balance Sheet As of December 31, 2015                             As Originally     Amount of             Presented     Restatement     As Restated   ASSETS                   Current assets:                         Cash and cash equivalents   $ 13,986,773             $ 13,986,773   Restricted cash     90,000               90,000   Accounts receivable, net of allowance of $487,937 and $524,565     6,025,334               6,025,334   Accounts receivable, net - related party     5,749,523               5,749,523   Revenues in excess of billings     5,061,568       (184,973 )     4,876,595   Other current assets     2,671,613               2,671,613   Total current assets     33,584,811       (184,973 )     33,399,838   Property and equipment, net     23,251,920               23,251,920   Intangible assets, net     20,877,711               20,877,711   Goodwill     9,516,568               9,516,568   Total assets   $ 87,231,010     $ (184,973 )   $ 87,046,037                             LIABILITIES AND STOCKHOLDERS’ EQUITY                         Current liabilities:                         Accounts payable and accrued expenses   $ 5,907,103             $ 5,907,103   Current portion of loans and obligations under capitalized leases     3,767,193               3,767,193   Unearned revenues     3,546,819       (184,973 )     3,361,846   Common stock to be issued     88,324               88,324   Total current liabilities     13,309,439       (184,973 )     13,124,466   Long term loans and obligations under capitalized leases; less current maturities     273,109               273,109   Total liabilities     13,582,548       (184,973 )     13,397,575   Commitments and contingencies                         Stockholders’ equity:                         Preferred stock, $.01 par value; 500,000 shares authorized;     -       -       -   Common stock, $.01 par value; 14,500,000 shares authorized; 10,418,350 shares issued and 10,391,071 outstanding as of December 31, 2015 and 10,307,826 shares issued and 10,280,547 outstanding as of June 30, 2015     104,184               104,184   Additional paid-in-capital     119,890,798               119,890,798   Treasury stock (27,279 shares)     (415,425 )             (415,425 ) Accumulated deficit     (40,262,084 )             (40,262,084 ) Stock subscription receivable     (1,139,672 )             (1,139,672 ) Other comprehensive loss     (18,546,296 )             (18,546,296 ) Total NetSol stockholders’ equity     59,631,505       -       59,631,505   Non-controlling interest     14,016,957               14,016,957   Total stockholders’ equity     73,648,462       -       73,648,462   Total liabilities and stockholders’ equity   $ 87,231,010     $ (184,973 )   $ 87,046,037     For the Three Months     For the Six Months         Ended December 31, 2015     Ended December 31, 2015                                             As Originally     Amount of     As     As Originally     Amount of     As       Presented     Restatement     Restated     Presented     Restatement     Restated   Net Revenues:                                     License fees   $ 709,691     $ 406,146     $ 1,115,837     $ 1,903,045     $ (184,973 )   $ 1,718,072   Maintenance fees     3,240,472       96,085       3,336,557       6,252,710       184,973       6,437,683   Services     9,574,104               9,574,104       16,327,977               16,327,977   Maintenance fees - related party     31,755               31,755       189,986               189,986   Services - related party     2,635,675               2,635,675       4,823,083               4,823,083   Total net revenues     16,191,697       502,231       16,693,928       29,496,801       -       29,496,801                                                     Cost of revenues:                                                 Salaries and consultants     4,925,565               4,925,565       9,925,455               9,925,455   Travel     754,009               754,009       1,235,462               1,235,462   Depreciation and amortization     1,461,466               1,461,466       2,935,701               2,935,701   Other     1,022,682               1,022,682       1,961,479               1,961,479   Total cost of revenues     8,163,722       -       8,163,722       16,058,097       -       16,058,097                                                     Gross profit     8,027,975       502,231       8,530,206       13,438,704       -       13,438,704                                                     Operating expenses:                                                 Selling and marketing     2,002,990               2,002,990       3,701,394               3,701,394   Depreciation and amortization     285,616               285,616       576,788               576,788   General and administrative     3,536,676               3,536,676       6,902,723               6,902,723   Research and development cost     117,924               117,924       229,994               229,994   Total operating expenses     5,943,206       -       5,943,206       11,410,899       -       11,410,899                                                     Income from operations     2,084,769       502,231       2,587,000       2,027,805       -       2,027,805                                                     Other income and (expenses)                                                 Loss on sale of assets     (2,333 )             (2,333 )     (14,206 )             (14,206 ) Interest expense     (72,156 )             (72,156 )     (140,329 )             (140,329 ) Interest income     35,299               35,299       87,411               87,411   Loss on foreign currency exchange transactions     (134,527 )             (134,527 )     (248,246 )             (248,246 ) Other income     120,684               120,684       174,998               174,998   Total other income (expenses)     (53,033 )     -       (53,033 )     (140,372 )     -       (140,372 )                                                   Net Income (loss) before income taxes     2,031,736       502,231       2,533,967       1,887,433       -       1,887,433   Income tax provision     (273,275 )             (273,275 )     (348,498 )             (348,498 ) Net income (loss) from continuing operations     1,758,461       502,231       2,260,692       1,538,935       -       1,538,935   Non-controlling interest     (883,396 )     (175,279 )     (1,058,675 )     (1,074,898 )     -       (1,074,898 ) Net Income (loss) attributable to NetSol   $ 875,065     $ 326,952     $ 1,202,017     $ 464,037     $ -     $ 464,037                                                     Net income per share:                                                                                                   Net income per common share                                                 Basic   $ 0.08     $ 0.04     $ 0.12     $ 0.05     $ -     $ 0.05   Diluted   $ 0.08     $ 0.03     $ 0.11     $ 0.04     $ -     $ 0.04                                                     Weighted average number of shares outstanding                                                 Basic     10,308,186       10,308,186       10,308,186       10,294,760       10,294,760       10,294,760   Diluted     10,548,922       10,548,922       10,548,922       10,535,496       10,535,496       10,535,496     For the Three Months         Ended December 31, 2015                           As Originally     Amount of             Presented     Restatement     As Restated   Net income   $ 875,065     $ 326,952     $ 1,202,017   Other comprehensive income (loss):                         Translation adjustment     (665,906 )     -       (665,906 ) Comprehensive income (loss)     209,159       326,952       536,111   Comprehensive income (loss) attributable to non-controlling interest     (249,910 )     -       (249,910 ) Comprehensive income attributable to NetSol   $ 459,069     $ 326,952     $ 786,021         For the Six Months       Ended December 31, 2015                           As Originally     Amount of             Presented     Restatement     As Restated   Net income (loss)   $ 464,037     $ -     $ 464,037   Other comprehensive income (loss):                         Translation adjustment     (1,914,473 )     -       (1,914,473 ) Comprehensive income (loss)     (1,450,436 )     -       (1,450,436 ) Comprehensive income (loss) attributable to non-controlling interest     (535,277 )     -       (535,277 ) Comprehensive income (loss) attributable to NetSol   $ (915,159 )   $ -     $ (915,159 )   For the Six Months         Ended December 31, 2015                           As Originally     Amount of             Presented     Restatement     As Restated   Cash flows from operating activities:                         Net income (loss)   $ 1,538,935             $ 1,538,935   Adjustments to reconcile net income (loss) to net cash used in operating activities:                         Depreciation and amortization     3,512,489               3,512,489   Provision for bad debts     37,043               37,043   Loss on sale of assets     14,206               14,206   Stock issued for services     326,019               326,019   Fair market value of warrants and stock options granted     145,716               145,716   Changes in operating assets and liabilities:                         Accounts receivable     111,967               111,967   Accounts receivable - related party     (2,383,828 )             (2,383,828 ) Revenues in excess of billing     535,937       184,973       720,910   Other current assets     (758,802 )             (758,802 ) Accounts payable and accrued expenses     142,008               142,008   Unearned revenue     (1,190,072 )     (184,973 )     (1,375,045 ) Net cash provided by operating activities     2,031,618       -       2,031,618                             Cash flows from investing activities:                         Purchases of property and equipment     (1,177,443 )             (1,177,443 ) Sales of property and equipment     357,933               357,933   Purchase of subsidiary shares from open market     (347,623 )     -       (347,623 ) Net cash used in investing activities     (1,167,133 )     -       (1,167,133 )                           Cash flows from financing activities:                         Proceeds from sale of common stock     64,931               64,931   Proceeds from the exercise of stock options and warrants     194,680               194,680   Proceeds from bank loans     306,750               306,750   Payments on capital lease obligations and loans - net     (530,733 )             (530,733 ) Net cash provided by financing activities     35,628       -       35,628   Effect of exchange rate changes     (1,082,297 )             (1,082,297 ) Net decrease in cash and cash equivalents     (182,184 )     -       (182,184 ) Cash and cash equivalents, beginning of the period     14,168,957               14,168,957   Cash and cash equivalents, end of period   $ 13,986,773     $ -     $ 13,986,773         Balance Sheet       As of September 30, 2016                           As Originally     Amount of             Presented     Restatement     As Restated   ASSETS                         Current assets:                         Cash and cash equivalents   $ 11,156,437             $ 11,156,437   Accounts receivable, net of allowance of $500,853 and $492,498     7,142,255               7,142,255   Accounts receivable, net - related party     5,384,573               5,384,573   Revenues in excess of billings     13,358,858       2,074,911       15,433,769   Revenues in excess of billings - related party     682,049               682,049   Other current assets     3,192,425               3,192,425   Total current assets     40,916,597       2,074,911       42,991,508   Restricted cash     90,000               90,000   Property and equipment, net     22,612,752               22,612,752   Other assets     1,604,731               1,604,731   Intangible assets, net     19,326,259               19,326,259   Goodwill     9,516,568               9,516,568   Total assets   $ 94,066,907     $ 2,074,911     $ 96,141,818                             LIABILITIES AND STOCKHOLDERS’ EQUITY                         Current liabilities:                         Accounts payable and accrued expenses   $ 6,389,128             $ 6,389,128   Current portion of loans and obligations under capitalized leases     4,408,173               4,408,173   Unearned revenues     4,419,692               4,419,692   Common stock to be issued     88,324               88,324   Total current liabilities     15,305,317       -       15,305,317   Long term loans and obligations under capitalized leases; less current maturities     539,859               539,859   Total liabilities     15,845,176       -       15,845,176   Commitments and contingencies                         Stockholders’ equity:                         Preferred stock, $.01 par value; 500,000 shares authorized;     -       -       -   Common stock, $.01 par value; 14,500,000 shares authorized; 10,882,281 shares issued and 10,855,002 outstanding as of September 30, 2016 and 10,713,372 shares issued and 10,686,093 outstanding as of June 30, 2016     108,823               108,823   Additional paid-in-capital     122,367,231               122,367,231   Treasury stock (27,279 shares)     (415,425 )             (415,425 ) Accumulated deficit     (39,089,079 )     1,379,608       (37,709,471 ) Stock subscription receivable     (602,811 )             (602,811 ) Other comprehensive loss     (17,960,133 )             (17,960,133 ) Total NetSol stockholders’ equity     64,408,606       1,379,608       65,788,214   Non-controlling interest     13,813,125       695,303       14,508,428   Total stockholders’ equity     78,221,731       2,074,911       80,296,642   Total liabilities and stockholders’ equity   $ 94,066,907     $ 2,074,911     $ 96,141,818     For the Three Months         Ended September 30, 2016                           As Originally     Amount of             Presented     Restatement     As Restated   Net Revenues:                         License fees   $ 3,499,860     $ 1,953,935     $ 5,453,795   Maintenance fees     3,402,821       120,976       3,523,797   Services     5,806,717               5,806,717   License fees - related party     246,957               246,957   Maintenance fees - related party     130,631               130,631   Services - related party     1,914,572               1,914,572   Total net revenues     15,001,558       2,074,911       17,076,469                             Cost of revenues:                         Salaries and consultants     5,893,349               5,893,349   Travel     711,895               711,895   Depreciation and amortization     1,330,872               1,330,872   Other     972,338               972,338   Total cost of revenues     8,908,454       -       8,908,454                             Gross profit     6,093,104       2,074,911       8,168,015                             Operating expenses:                         Selling and marketing     2,411,136               2,411,136   Depreciation and amortization     269,097               269,097   General and administrative     4,552,098               4,552,098   Research and development cost     92,932               92,932   Total operating expenses     7,325,263       -       7,325,263                             Income (loss) from operations     (1,232,159 )     2,074,911       842,752                             Other income and (expenses)                         Loss on sale of assets     (2,403 )             (2,403 ) Interest expense     (54,475 )             (54,475 ) Interest income     30,440               30,440   Loss on foreign currency exchange transactions     (414,896 )             (414,896 ) Other income     21,560               21,560   Total other income (expenses)     (419,774 )     -       (419,774 )                           Net income (loss) before income taxes     (1,651,933 )     2,074,911       422,978   Income tax provision     (39,875 )             (39,875 ) Net income (loss)     (1,691,808 )     2,074,911       383,103   Non-controlling interest     (73,911 )     (695,303 )     (769,214 ) Net income (loss) attributable to NetSol   $ (1,765,719 )   $ 1,379,608     $ (386,111 )                           Net Income (loss) per share:                         Net income (loss) per common share                         Basic   $ (0.17 )   $ 0.14     $ (0.04 ) Diluted   $ (0.17 )   $ 0.14     $ (0.04 )                           Weighted average number of shares outstanding                         Basic     10,697,425       10,697,425       10,697,425   Diluted     10,697,425       10,697,425       10,697,425     For the Three Months         Ended September 30, 2016                           As Originally     Amount of             Presented     Restatement     As Restated   Net income (loss)   $ (1,765,719 )   $ 1,379,608     $ (386,111 ) Other comprehensive income (loss):                         Translation adjustment     1,094,074       -       1,094,074   Comprehensive income (loss)     (671,645 )     1,379,608       707,963   Comprehensive income (loss) attributable to non-controlling interest     323,713       -       323,713   Comprehensive income (loss) attributable to NetSol   $ (995,358 )   $ 1,379,608     $ 384,250     For the Three Months         Ended September 30, 2016                           As Originally     Amount of             Presented     Restatement     As Restated   Cash flows from operating activities:                         Net income (loss)   $ (1,691,808 )   $ 2,074,911     $ 383,103   Adjustments to reconcile net income (loss) to net cash used in operating activities:                         Depreciation and amortization     1,599,969               1,599,969   Loss on sale of assets     2,403               2,403   Stock issued for services     865,456               865,456   Fair market value of warrants and stock options granted     21,804               21,804   Changes in operating assets and liabilities:                         Accounts receivable     2,336,894               2,336,894   Accounts receivable - related party     121,800               121,800   Revenues in excess of billing     (2,746,917 )     (2,074,911 )     (4,821,828 ) Revenues in excess of billing - related party     93,208               93,208   Other current assets     306,339               306,339   Accounts payable and accrued expenses     (780,569 )             (780,569 ) Unearned revenue     (346,108 )             (346,108 ) Net cash used in operating activities     (217,529 )     -       (217,529 )                           Cash flows from investing activities:                         Purchases of property and equipment     (554,873 )             (554,873 ) Sales of property and equipment     151,818               151,818   Investment     (555,555 )             (555,555 ) Net cash used in investing activities     (958,610 )     -       (958,610 )                           Cash flows from financing activities:                         Proceeds from the exercise of stock options and warrants     276,861               276,861   Proceeds from exercise of subsidiary options     14,013               14,013   Payments on capital lease obligations and loans - net     (49,117 )             (49,117 ) Net cash provided by financing activities     241,757       -       241,757   Effect of exchange rate changes     533,292               533,292   Net decrease in cash and cash equivalents     (401,090 )     -       (401,090 ) Cash and cash equivalents, beginning of the period     11,557,527               11,557,527   Cash and cash equivalents, end of period   $ 11,156,437     $ -     $ 11,156,437     The following tables present the restated financial statements for the quarter ended December 31, 2016.       Balance Sheet       As of December 31, 2016                           As Originally     Amount of             Presented     Restatement     As Restated   ASSETS                         Current assets:                         Cash and cash equivalents   $ 9,505,383             $ 9,505,383   Accounts receivable, net of allowance of $495,760 and $492,498     5,840,490               5,840,490   Accounts receivable, net - related party     4,303,380               4,303,380   Revenues in excess of billings     17,646,488       373,406       18,019,894   Revenues in excess of billings - related party     469,030               469,030   Other current assets     2,904,650               2,904,650   Total current assets     40,669,421       373,406       41,042,827   Restricted cash     90,000               90,000   Property and equipment, net     21,873,277               21,873,277   Other assets     2,054,938               2,054,938   Intangible assets, net     18,423,439               18,423,439   Goodwill     9,516,568               9,516,568   Total assets   $ 92,627,643     $ 373,406     $ 93,001,049                             LIABILITIES AND STOCKHOLDERS’ EQUITY                         Current liabilities:                         Accounts payable and accrued expenses   $ 7,373,097             $ 7,373,097   Current portion of loans and obligations under capitalized leases     4,368,930               4,368,930   Unearned revenues     2,806,804       77,821       2,884,625   Common stock to be issued     88,324               88,324   Total current liabilities     14,637,155       77,821       14,714,976   Long term loans and obligations under capitalized leases; less current maturities     501,554               501,554   Total liabilities     15,138,709       77,821       15,216,530   Commitments and contingencies                         Stockholders’ equity:                         Preferred stock, $.01 par value; 500,000 shares authorized;     -       -       -   Common stock, $.01 par value; 14,500,000 shares authorized; 10,993,054 shares issued and 10,958,275 outstanding as of December 31, 2016 and 10,713,372 shares issued and 10,686,093 outstanding as of June 30, 2016     109,931               109,931   Additional paid-in-capital     123,019,215               123,019,215   Treasury stock (34,779 shares and 27,279 shares)     (454,310 )             (454,310 ) Accumulated deficit     (40,074,755 )     196,890       (39,877,865 ) Stock subscription receivable     (450,220 )             (450,220 ) Other comprehensive loss     (18,628,395 )             (18,628,395 ) Total NetSol stockholders’ equity     63,521,466       196,890       63,718,356   Non-controlling interest     13,967,468       98,695       14,066,163   Total stockholders’ equity     77,488,934       295,585       77,784,519   Total liabilities and stockholders’ equity   $ 92,627,643     $ 373,406     $ 93,001,049     For the Three Months     For the Six Months         Ended December 31, 2016     Ended December 31, 2016                                             As Originally     Amount of     As     As Originally     Amount of     As       Presented     Restatement     Restated     Presented     Restatement     Restated   Net Revenues:                                                 License fees   $ 5,350,086     $ (1,580,529 )   $ 3,769,557     $ 8,849,946     $ 373,406     $ 9,223,352   Maintenance fees     3,787,696       (198,797 )     3,588,899       7,190,517       (77,821 )     7,112,696   Services     6,984,084               6,984,084       12,790,801               12,790,801   License fees - related party     -               -       246,957               246,957   Maintenance fees - related party     51,345               51,345       181,976               181,976   Services - related party     1,464,901               1,464,901       3,379,473               3,379,473   Total net revenues     17,638,112       (1,779,326 )     15,858,786       32,639,670       295,585       32,935,255                                                     Cost of revenues:                                                 Salaries and consultants     5,979,804               5,979,804       11,873,153               11,873,153   Travel     836,240               836,240       1,548,135               1,548,135   Depreciation and amortization     1,318,764               1,318,764       2,649,636               2,649,636   Other     1,065,727               1,065,727       2,038,065               2,038,065   Total cost of revenues     9,200,535       -       9,200,535       18,108,989       -       18,108,989                                                     Gross profit     8,437,577       (1,779,326 )     6,658,251       14,530,681       295,585       14,826,266                                                     Operating expenses:                                                 Selling and marketing     2,713,478               2,713,478       5,057,516               5,057,516   Depreciation and amortization     271,485               271,485       540,582               540,582   General and administrative     3,933,413               3,933,413       8,552,609               8,552,609   Research and development cost     91,607               91,607       184,539               184,539   Total operating expenses     7,009,983       -       7,009,983       14,335,246       -       14,335,246                                                     Income (loss) from operations     1,427,594       (1,779,326 )     (351,732 )     195,435       295,585       491,020                                                     Other income and (expenses)                                                 Loss on sale of assets     (32,339 )             (32,339 )     (34,742 )             (34,742 ) Interest expense     (62,127 )             (62,127 )     (116,602 )             (116,602 ) Interest income     23,416               23,416       53,856               53,856   Loss on foreign currency exchange transactions     (621,887 )             (621,887 )     (1,036,783 )             (1,036,783 ) Other income     6,823               6,823       28,383               28,383   Total other income (expenses)     (686,114 )     -       (686,114 )     (1,105,888 )     -       (1,105,888 )                                                   Net income (loss) before income taxes     741,480       (1,779,326 )     (1,037,846 )     (910,453 )     295,585       (614,868 ) Income tax provision     (338,884 )             (338,884 )     (378,759 )             (378,759 ) Net income (loss) from continuing operations     402,596       (1,779,326 )     (1,376,730 )     (1,289,212 )     295,585       (993,627 ) Non-controlling interest     (1,388,272 )     596,608       (791,664 )     (1,462,183 )     (98,695 )     (1,560,878 ) Net income (loss) attributable to NetSol   $ (985,676 )   $ (1,182,718 )   $ (2,168,394 )   $ (2,751,395 )   $ 196,890     $ (2,554,505 )                                                   Net income (loss) per share:                                                                                                   Net income (loss) per common share                                                 Basic   $ (0.09 )   $ (0.11 )   $ (0.20 )   $ (0.26 )   $ 0.03     $ (0.24 ) Diluted   $ (0.09 )   $ (0.11 )   $ (0.20 )   $ (0.26 )   $ 0.03     $ (0.24 )                                                   Weighted average number of shares outstanding                                                 Basic     10,877,446       10,877,446       10,877,446       10,783,685       10,783,685       10,783,685   Diluted     10,877,446       10,877,446       10,877,446       10,783,685       10,783,685       10,783,685       For the Three Months         Ended December 31, 2016                           As Originally     Amount of             Presented     Restatement     As Restated   Net income (loss)   $ (985,676 )   $ (1,182,718 )   $ (2,168,394 ) Other comprehensive income (loss):                         Translation adjustment     (944,837 )     -       (944,837 ) Comprehensive income (loss)     (1,930,513 )     (1,182,718 )     (3,113,231 ) Comprehensive income (loss) attributable to non-controlling interest     (276,575 )     -       (276,575 ) Comprehensive income (loss) attributable to NetSol   $ (1,653,938 )   $ (1,182,718 )   $ (2,836,656 )       For the Six Months       Ended December 31, 2016                           As Originally     Amount of             Presented     Restatement     As Restated   Net income (loss)   $ (2,751,395 )   $ 262,469     $ (2,488,926 ) Other comprehensive income (loss):                         Translation adjustment     149,237       -       149,237   Comprehensive income (loss)     (2,602,158 )     262,469       (2,339,689 ) Comprehensive income (loss) attributable to non-controlling interest     47,138       -       47,138   Comprehensive income (loss) attributable to NetSol   $ (2,649,296 )   $ 262,469     $ (2,386,827 )   For the Six Months         Ended December 31, 2016                           As Originally     Amount of             Presented     Restatement     As Restated   Cash flows from operating activities:                         Net income (loss)   $ (1,289,212 )   $ 295,585     $ (993,627 ) Adjustments to reconcile net income (loss) to net cash used in operating activities:                         Depreciation and amortization     3,190,218               3,190,218   Provision for bad debts     1,026               1,026   Loss on sale of assets     34,742               34,742   Stock issued for services     1,525,775               1,525,775   Fair market value of warrants and stock options granted     21,804               21,804   Changes in operating assets and liabilities:                         Accounts receivable     3,678,110               3,678,110   Accounts receivable - related party     829,285               829,285   Revenues in excess of billing     (7,219,089 )     (373,406 )     (7,592,495 ) Revenues in excess of billing - related party     285,791               285,791   Other current assets     585,147               585,147   Accounts payable and accrued expenses     334,241               334,241   Unearned revenue     (1,908,440 )     77,821       (1,830,619 ) Net cash used in operating activities     69,398       -       69,398                             Cash flows from investing activities:                         Purchases of property and equipment     (1,074,316 )             (1,074,316 ) Sales of property and equipment     181,087               181,087   Purchase of treasury stock     (38,885 )             (38,885 ) Investment     (705,555 )             (705,555 ) Net cash used in investing activities     (1,637,669 )     -       (1,637,669 )                           Cash flows from financing activities:                         Proceeds from the exercise of stock options and warrants     429,452               429,452   Proceeds from exercise of subsidiary options     18,089               18,089   Dividend paid by subsidiary to Non controlling interest     (968,657 )             (968,657 ) Payments on capital lease obligations and loans - net     (69,998 )             (69,998 ) Net cash provided by financing activities     (591,114 )     -       (591,114 ) Effect of exchange rate changes     107,241               107,241   Net decrease in cash and cash equivalents     (2,052,144 )     -       (2,052,144 ) Cash and cash equivalents, beginning of the period     11,557,527               11,557,527   Cash and cash equivalents, end of period   $ 9,505,383     $ -     $ 9,505,383