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OPERATING SEGMENTS
 6 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 15– OPERATING SEGMENTS

 

The Company has identified three segments for its products and services; North America, Europe and Asia-Pacific. Our reportable segments are business units located in different global regions. Each business unit provides similar products and services; license fees for leasing and asset-based software, related maintenance fees, and implementation and IT consulting services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to third parties and eliminates them in the consolidation.

 

The following table presents a summary of identifiable assets as of December 31, 2023 and June 30, 2023:

 

   As of   As of 
   December 31, 2023   June 30, 2023 
Identifiable assets:          
Corporate headquarters  $1,059,682   $878,899 
North America   6,409,946    7,344,122 
Europe   9,301,556    8,716,656 
Asia - Pacific   40,700,402    41,439,733 
Consolidated  $57,471,586   $58,379,410 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2023

(Unaudited)

 

The following table presents a summary of revenue streams by segment for the three months ended December 31, 2023 and 2022:

 

   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
   2023   2022 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $-   $1,168,224   $296,997   $1,465,221   $14,000   $1,111,063   $472,789   $1,597,852 
Europe   4,650    874,096    1,593,611    2,472,357    1,884    688,562    2,155,255    2,845,701 
Asia-Pacific   2,985,803    4,785,461    3,529,099    11,300,363    -    4,703,044    3,243,761    7,946,805 
Total  $2,990,453   $6,827,781   $5,419,707   $15,237,941   $15,884   $6,502,669   $5,871,805   $12,390,358 

 

The following table presents a summary of revenue streams by segment for the six months ended December 31, 2023 and 2022:

 

   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
   2023   2022 
   License fees   Subscription and support   Services   Total   License fees   Subscription and support   Services   Total 
                                 
North America  $-   $2,293,038   $580,798   $2,873,836   $28,000   $2,176,111   $519,029   $2,723,140 
Europe   8,966    1,588,084    3,437,340    5,034,390    50,239    1,182,105    3,860,692    5,093,036 
Asia-Pacific   4,261,936    9,458,902    7,851,058    21,571,896    187,605    9,161,287    7,931,409    17,280,301 
Total  $4,270,902   $13,340,024   $11,869,196   $29,480,122   $265,844   $12,519,503   $12,311,130   $25,096,477 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2023

(Unaudited)

 

The following table presents a summary of operating information for the three and six months ended December 31:

 

   2023   2022   2023   2022 
   For the Three Months   For the Six Months 
   Ended December 31,   Ended December 31, 
   2023   2022   2023   2022 
Revenues from unaffiliated customers:                    
North America  $1,465,221   $1,597,852   $2,873,836   $2,723,140 
Europe   2,472,357    2,845,701    5,034,390    5,093,036 
Asia - Pacific   11,300,363    7,946,805    21,571,896    17,280,301 
Revenues from unaffiliated   15,237,941    12,390,358    29,480,122    25,096,477 
Revenue from affiliated customers                    
Asia - Pacific   -    -    -    - 
Revenue from affiliated   -    -    -    - 
Consolidated  $15,237,941   $12,390,358   $29,480,122   $25,096,477 
                     
Intercompany revenue                    
Europe  $100,100   $93,236   $200,417   $188,961 
Asia - Pacific   2,865,277    2,545,098    5,485,596    4,544,876 
Eliminated  $2,965,377   $2,638,334   $5,686,013   $4,733,837 
                     
Net income (loss) after taxes and before non-controlling interest:                    
Corporate headquarters  $(922,670)  $(696,938)  $(1,226,392)  $630,262 
North America   (13,278)   105,326    (69,225)   86,379 
Europe   (150,935)   (163,633)   (242,819)   (483,388)
Asia - Pacific   2,069,698    (1,646,718)   2,812,314    (3,073,187)
Consolidated  $982,815   $(2,401,963)  $1,273,878   $(2,839,934)
                     
Depreciation and amortization:                    
North America  $407   $727   $898   $1,209 
Europe   57,758    66,431    120,659    141,602 
Asia - Pacific   370,998    824,342    838,392    1,593,692 
Consolidated  $429,163   $891,500   $959,949   $1,736,503 
                     
Interest expense:                    
Corporate headquarters  $6,538   $5,912   $12,659   $8,392 
North America   -    -    -    - 
Europe   1,834    2,702    6,476    6,340 
Asia - Pacific   281,950    193,749    547,204    309,241 
Consolidated  $290,322   $202,363   $566,339   $323,973 
                     
Income tax expense:                    
Corporate headquarters  $-   $-   $-   $(44,154)
North America   -    -    -    44,154 
Europe   (93,583)   -    (93,583)   - 
Asia - Pacific   243,636    220,056    365,531    413,404 
Consolidated  $150,053   $220,056   $271,948   $413,404 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2023

(Unaudited)

 

The following table presents a summary of capital expenditures for the six months ended December 31:

 

   2023   2022 
   For the Six Months 
   Ended December 31, 
   2023   2022 
Capital expenditures:          
North America  $-   $4,880 
Europe   417,104    - 
Asia - Pacific   153,480    1,247,445 
Consolidated  $570,584   $1,252,325