Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Sep. 30, 2013 | Nov. 06, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'NETSOL TECHNOLOGIES INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Common Stock, Shares Outstanding | ' | 9,061,075 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001039280 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $6,755,950 | $7,874,318 |
Restricted cash | 2,301,822 | 1,875,237 |
Accounts receivable, net | 18,535,948 | 14,684,212 |
Revenues in excess of billings | 11,435,167 | 15,367,198 |
Other current assets | 2,841,126 | 2,273,314 |
Total current assets | 41,870,013 | 42,074,279 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 4,498,965 | 3,923,921 |
Current portion of loans and obligations under capitalized leases | 3,660,388 | 3,326,465 |
Other payables - acquisitions | 103,226 | 103,226 |
Unearned revenues | 3,987,150 | 2,446,018 |
Loans payable, bank | 1,874,941 | 1,982,161 |
Common stock to be issued | 320,338 | 88,325 |
Total current liabilities | 14,445,008 | 11,870,116 |
Long term loans and obligations under capitalized leases; less current maturities | 1,416,791 | 1,412,212 |
Total liabilities | 15,861,799 | 13,282,328 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $.01 par value; 15,000,000 shares authorized; 8,990,923 and 8,929,523 issued and outstanding as of September 30, 2013 and June 30, 2013 | 89,909 | 89,295 |
Additional paid-in-capital | 114,914,808 | 114,292,510 |
Treasury stock | -415,425 | -415,425 |
Accumulated deficit | -24,918,371 | -23,821,256 |
Stock subscription receivable | -2,130,488 | -2,280,488 |
Other comprehensive loss | -17,916,294 | -15,714,112 |
Total NetSol stockholders' equity | 69,624,139 | 72,150,524 |
Non-controlling interest | 16,861,176 | 17,271,263 |
Total stockholders' equity | 86,485,315 | 89,421,787 |
Total liabilities and stockholders' equity | 102,347,114 | 102,704,115 |
Investment under equity method | 554,674 | 545,483 |
Property and equipment, net | 21,493,298 | 20,978,369 |
Intangible assets, net | 28,775,799 | 29,452,654 |
Goodwill | 9,653,330 | 9,653,330 |
Total assets | $102,347,114 | $102,704,115 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Common stock par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in Shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in Shares) | 8,990,923 | 8,929,523 |
Common stock, shares outstanding (in Shares) | 8,990,923 | 8,929,523 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Net Revenues: | ' | ' |
License fees | $2,252,567 | $3,241,501 |
Maintenance fees | 2,380,409 | 2,045,706 |
Services | 4,424,340 | 5,784,693 |
Total net revenues | 9,057,316 | 11,071,900 |
Cost of revenues: | ' | ' |
Salaries and consultants | 3,456,604 | 3,385,668 |
Travel | 396,784 | 325,294 |
Repairs and maintenance | 175,821 | 127,997 |
Insurance | 39,554 | 37,719 |
Depreciation and amortization | 1,046,669 | 958,151 |
Other | 544,337 | 921,858 |
Total cost of revenues | 5,659,769 | 5,756,687 |
Gross profit | 3,397,547 | 5,315,213 |
Operating expenses: | ' | ' |
Selling and marketing | 1,071,412 | 762,963 |
Depreciation and amortization | 426,617 | 342,001 |
Bad debt expense | 251,673 | ' |
Salaries and wages | 1,441,132 | 1,153,873 |
Professional services, including non-cash compensation | 306,663 | 206,502 |
General and administrative | 1,423,002 | 1,347,928 |
Total operating expenses | 4,920,499 | 3,813,267 |
(Loss) income from operations | -1,522,952 | 1,501,946 |
Other income and (expenses) | ' | ' |
(Loss) gain on sale of assets | -13,795 | 14,296 |
Interest expense | -69,217 | -292,389 |
Interest income | 32,854 | 24,167 |
Gain on foreign currency exchange transactions | 1,111,423 | 395,156 |
Share of net income from equity investment | 9,192 | ' |
Amortization of financing costs | ' | -367,744 |
Other income | 678 | -32 |
Total other income (expenses) | 1,071,135 | -226,546 |
Net (loss) income before income taxes | -451,817 | 1,275,400 |
Income taxes | -11,131 | -13,996 |
Net (loss) income after tax | -462,948 | 1,261,404 |
Non-controlling interest | -634,167 | -332,279 |
Net (loss) income attributable to NetSol | -1,097,115 | 929,125 |
Other comprehensive loss: | ' | ' |
Translation adjustment | -3,422,716 | -768,795 |
Comprehensive income (loss) | -4,519,831 | 160,330 |
Comprehensive loss attributable to non-controlling interest | -1,220,534 | -232,556 |
Comprehensive (loss) income attributable to NetSol | ($3,299,297) | $392,886 |
Net (loss) income per share: | ' | ' |
Basic (in Dollars per share) | ($0.12) | $0.12 |
Diluted (in Dollars per share) | ($0.12) | $0.12 |
Weighted average number of shares outstanding | ' | ' |
Basic (in Shares) | 8,956,007 | 7,591,891 |
Diluted (in Shares) | 8,956,007 | 7,599,136 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net (loss) income | ($462,948) | $1,261,404 |
Depreciation and amortization | 1,473,286 | 1,300,152 |
Provision for bad debts | 251,673 | ' |
Share of net (income) loss from investment under equity method | -9,192 | ' |
(Gain) loss on sale of assets | 13,795 | -14,296 |
Stock issued for interest on notes payable | ' | 211,111 |
Stock issued for services | 318,857 | 29,670 |
Fair market value of warrants and stock options granted | 125,568 | 227,926 |
Amortization of financing costs | ' | 367,744 |
Changes in operating assets and liabilities: | ' | ' |
Increase in accounts receivable | -3,928,230 | -4,320,159 |
Decrease in revenue in execss of billing | 3,565,290 | 1,601,584 |
(Increase) decrease in other current assets | -438,780 | 291,041 |
Increase in accounts payable and accrued expenses | 2,014,051 | 1,942,654 |
Net cash provided by operating activities | 2,923,370 | 2,898,831 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -2,691,066 | -1,457,134 |
Sales of property and equipment | 80,287 | 60,501 |
Increase in intangible assets | -1,362,026 | -1,091,966 |
Net cash used in investing activities | -3,972,805 | -2,488,599 |
Cash flows from financing activities: | ' | ' |
Proceeds from the exercise of stock options and warrants | 560,500 | 252,900 |
Payment to common shareholders against fractional shares | ' | -194 |
Proceeds from exercise of subsidiary options | 176,280 | ' |
Restricted cash | -426,585 | -1,571,442 |
Proceeds from bank loans | 519,040 | 2,651,048 |
Payments on capital lease obligations and loans - net | -198,853 | -1,160,684 |
Net cash provided by financing activities | 630,382 | 171,628 |
Effect of exchange rate changes in cash | -699,315 | -161,679 |
Net (decrease) increase in cash and cash equivalents | -1,118,368 | 420,181 |
Cash and cash equivalents, beginning of period | 7,874,318 | 7,599,607 |
Cash and cash equivalents, end of period | $6,755,950 | $8,019,788 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows Supplemental Disclosures (Unaudited) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash paid during the period for: | ' | ' |
Interest | $61,466 | $102,198 |
Taxes | ' | 24,253 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Stock issued for the conversion of convertible notes payable | ' | 1,050,000 |
Stock issued for the conversion of interest payable | ' | $391,111 |
Note_1_Basis_of_Presentation_a
Note 1 - Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1 - BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | |
The Company designs, develops, markets, and exports proprietary software products to customers in the automobile finance and leasing, banking, healthcare, and financial services industries worldwide. The Company also provides system integration, consulting, IT products and services in exchange for fees from customers. | |
The consolidated condensed interim financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. | |
These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended June 30, 2013. The Company follows the same accounting policies in preparation of interim reports. Results of operations for the interim periods are not indicative of annual results. | |
The accompanying consolidated financial statements include the accounts of NetSol Technologies, Inc. and subsidiaries (collectively, the “Company”) as follows: | |
Wholly-owned Subsidiaries | |
NetSol Technologies Americas, Inc. (“NTA”) formerly NetSol Technologies North America, Inc. ("NTNA") | |
NetSol Connect (Private), Ltd. (“Connect) | |
NetSol-Abraxas Australia Pty Ltd. (“Abraxas”) | |
NetSol Technologies Europe Limited (“NTE”) | |
NetSol Technologies Limited (“NetSol UK”) | |
NTPK (Thailand) Co. Limited (“NTPK Thailand”) | |
NetSol Technologies (Beijing) Co. Ltd. (NetSol Beijing) | |
Netsol Omni (Private) Limited (“Omni”) | |
Majority-owned Subsidiaries | |
NetSol Technologies, Ltd. (“NetSol PK”) | |
NetSol Innovation (Private) Limited (“NetSol Innovation”) | |
Vroozi, Inc. (“Vroozi”) | |
Virtual Lease Services Holdings Limited (“VLSH”) | |
Virtual Lease Services Limited (“VLS”) | |
Virtual Lease Services (Ireland) Limited (VLSIL) | |
For comparative purposes, prior year’s consolidated financial statements have been reclassified to conform to report classifications of the current year. | |
Note_2_Accounting_Policies
Note 2 - Accounting Policies | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 2 – ACCOUNTING POLICIES | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
New Accounting Pronouncements | |
Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. The amendments in this Update do not require new recurring disclosures. ASU Topic No. 2013 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
In March 2013, the FASB issued guidance on a parent’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The new guidance will be effective for us beginning July 1, 2014. We do not anticipate material impacts on the Company’s financial statements upon adoption. | |
Note_3_Earnings_Per_Share
Note 3 - Earnings Per Share | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||
NOTE 3 – EARNINGS PER SHARE | |||||||||||||
Basic earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, warrants, convertible note payable and stock awards. | |||||||||||||
The components of basic and diluted earnings per share were as follows: | |||||||||||||
For the three months ended September 30, 2013 | Net Loss | Shares | Per Share | ||||||||||
Basic loss per share: | |||||||||||||
Net loss available to common shareholders | $ | (1,097,115 | ) | 8,956,007 | $ | (0.12 | ) | ||||||
Effect of dilutive securities | |||||||||||||
Stock options | - | - | - | ||||||||||
Warrants | - | - | - | ||||||||||
Diluted loss per share | $ | (1,097,115 | ) | 8,956,007 | $ | (0.12 | ) | ||||||
For the three months ended September 30, 2012 | Net Income | Shares | Per Share | ||||||||||
Basic income per share: | |||||||||||||
Net income available to common shareholders | $ | 929,125 | 7,591,891 | $ | 0.12 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock options | - | - | - | ||||||||||
Warrants | - | 7,245 | - | ||||||||||
Diluted income per share | $ | 929,125 | 7,599,136 | $ | 0.12 | ||||||||
As of September 30, 2013 and 2012, the following potential dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive. | |||||||||||||
As of September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Stock Options | 57,914 | - | |||||||||||
Warrants | 50,202 | - | |||||||||||
Convertible Note | - | 59,644 | |||||||||||
108,116 | 59,644 | ||||||||||||
Note_4_Other_Comprehensive_Inc
Note 4 - Other Comprehensive Income & Foreign Currency | 3 Months Ended |
Sep. 30, 2013 | |
Other Comprehensive Income And Foreign Currency [Abstract] | ' |
Other Comprehensive Income And Foreign Currency | ' |
NOTE 4 – OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY: | |
The accounts of NTE, VLSH and VLS use the British Pound; VLSIL uses the Euro; NetSol PK, Connect, and NetSol Innovation use Pakistan Rupees; NTPK Thailand uses Thai Baht; Abraxas uses the Australian dollar; and NetSol Beijing uses Chinese Yuan as the functional currencies. NetSol Technologies, Inc., and its subsidiaries, NTA and Vroozi, use the U.S. dollar as the functional currency. Assets and liabilities are translated at the exchange rate on the balance sheet date, and operating results are translated at the average exchange rate throughout the period. Accumulated translation losses classified as an item of accumulated other comprehensive loss in the stockholders’ equity section of the consolidated balance sheet were $17,916,294 and $15,714,112 as of September 30, 2013 and June 30, 2013 respectively. During the three months ended September 30, 2013 and 2012, comprehensive loss in the consolidated statements of operations included translation loss of $2,202,182 and $536,239, respectively. | |
Note_5_Accounts_Receivable
Note 5 - Accounts Receivable | 3 Months Ended |
Sep. 30, 2013 | |
Receivables [Abstract] | ' |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' |
NOTE 5 – ACCOUNTS RECEIVABLE | |
Accounts receivable include $154,050 due from a related party. | |
Note_6_Other_Current_Assets
Note 6 - Other Current Assets | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Other Assets Disclosure [Text Block] | ' | ||||||||
NOTE 6 - OTHER CURRENT ASSETS | |||||||||
Other current assets consisted of the following: | |||||||||
As of September 30, | As of June 30, | ||||||||
2013 | 2013 | ||||||||
Prepaid Expenses | $ | 512,517 | $ | 559,217 | |||||
Advance Income Tax | 881,596 | 887,893 | |||||||
Employee Advances | 40,319 | 43,794 | |||||||
Security Deposits | 183,801 | 189,382 | |||||||
Tender Money Receivable | 91,734 | 106,398 | |||||||
Other Receivables | 298,624 | 222,609 | |||||||
Other Assets | 765,396 | 197,915 | |||||||
Due From Related Party | 67,139 | 66,106 | |||||||
Total | $ | 2,841,126 | $ | 2,273,314 | |||||
Due from related party as of September 30, 2013 is a receivable from Atheeb NetSol Saudi Company Limited. | |||||||||
Note_7_Property_And_Equipment
Note 7 - Property And Equipment | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
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, | As of June 30, | ||||||||
2013 | 2013 | ||||||||
Office furniture and equipment | $ | 2,357,632 | $ | 2,508,975 | |||||
Computer equipment | 20,635,789 | 19,987,480 | |||||||
Assets under capital leases | 1,210,529 | 1,126,860 | |||||||
Building | 2,262,187 | 2,391,550 | |||||||
Land | 2,327,070 | 2,460,144 | |||||||
Capital work in progress | 5,756,021 | 5,104,283 | |||||||
Autos | 714,474 | 689,440 | |||||||
Improvements | 510,942 | 513,044 | |||||||
Subtotal | 35,774,644 | 34,781,776 | |||||||
Accumulated depreciation | (14,281,346 | ) | (13,803,407 | ) | |||||
Property and equipment, net | $ | 21,493,298 | $ | 20,978,369 | |||||
For the three months ended September 30, 2013 and 2012, depreciation expense totaled $997,560 and $754,108, respectively. Of these amounts, $613,110 and $454,745, respectively, are reflected in cost of revenues. | |||||||||
The Company’s capital work in progress consists of ongoing enhancements to its facilities and infrastructure necessary to meet the Company’s expected long term growth needs. The Company recorded capitalized interest of $68,280 and $292,390 as of September 30, 2013 and June 30, 2013, respectively. | |||||||||
Assets acquired under capital leases were $1,210,529 and $1,126,860 as of September 30, 2013 and June 30, 2013, respectively. Accumulated amortization related to these leases was $380,738 and $350,048 as of September 30, 2013 and June 30, 2013, respectively. | |||||||||
Note_8_Intangible_Assets
Note 8 - Intangible Assets | 3 Months Ended | ||||||||||||||||
Sep. 30, 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 | 1,362,026 | - | - | 1,322,150 | |||||||||||||
Effect of translation adjustment | (1,595,186 | ) | - | - | (1,555,310 | ) | |||||||||||
Accumulated amortization | (16,129,094 | ) | (5,897,502 | ) | (97,082 | ) | (22,123,678 | ) | |||||||||
Net balance - September 30, 2013 | $ | 28,475,304 | $ | 154,875 | $ | 145,620 | $ | 28,775,799 | |||||||||
(A) Product Licenses | |||||||||||||||||
Product licenses include internally-developed original license issues, renewals, enhancements, copyrights, trademarks, and trade names. Product licenses include unamortized software development and enhancement costs of $22,235,935. 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 months ended September 30, 2013 and 2012 was $433,559 and $503,406, 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 months ended September 30, 2013 and 2012 was $30,048 and $30,286, respectively. | |||||||||||||||||
(C) Technology | |||||||||||||||||
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 months ended September 30, 2013 and 2012 was $12,119 and $12,353. | |||||||||||||||||
(D) Future Amortization | |||||||||||||||||
Estimated amortization expense of intangible assets over the next five years is as follows: | |||||||||||||||||
Year ended: | |||||||||||||||||
30-Sep-14 | 1,746,484 | ||||||||||||||||
30-Sep-15 | 1,306,724 | ||||||||||||||||
30-Sep-16 | 872,360 | ||||||||||||||||
30-Sep-17 | 711,323 | ||||||||||||||||
30-Sep-18 | 688,878 | ||||||||||||||||
Thereafter | 23,450,029 | ||||||||||||||||
Note_9_Goodwill
Note 9 - Goodwill | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Goodwill Disclosure [Text Block] | ' | ||||||||
NOTE 9 – GOODWILL | |||||||||
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in businesses combinations. Goodwill was comprised of the following amounts: | |||||||||
As of September 30, | As of June 30, | ||||||||
2013 | 2013 | ||||||||
Asia Pacific | $ | 1,303,372 | $ | 1,303,372 | |||||
Europe | 3,685,858 | 3,685,858 | |||||||
USA | 4,664,100 | 4,664,100 | |||||||
Total | $ | 9,653,330 | $ | 9,653,330 | |||||
The Company has determined that there was no impairment of the goodwill for either period presented. | |||||||||
Note_10_Investment_Under_Equit
Note 10 - Investment Under Equity Method | 3 Months Ended | ||||
Sep. 30, 2013 | |||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' | ||||
NOTE 10 – INVESTMENT UNDER EQUITY METHOD | |||||
On April 10, 2009, the Company entered into an agreement to form a joint venture with the Atheeb Trading Company, a member of the Atheeb Group (“Atheeb”). The joint venture entity Atheeb NetSol Saudi Company Ltd. is a company organized under the laws of the Kingdom of Saudi Arabia. The venture was formed with an initial capital contribution of $268,000 by the Company and $266,930 by Atheeb with a profit sharing ratio of 50.1:49.9, respectively. The final formation of the company was completed on March 7, 2010. Since currently the Company does not have control over the operational and financial matters of Atheeb Netsol, therefore, it is considered as an associated company and accounted for under equity method. | |||||
Net book value at June 30, 2013 | $ | 545,482 | |||
Net income for the three months ended September 30, 2013 | 18,346 | ||||
NetSol's share (50.1%) | 9,192 | ||||
Total income | 9,192 | ||||
Income adjusted against investment | 9,192 | ||||
Net book value at September 30, 2013 | $ | 554,674 | |||
Note_11_Accounts_Payable_and_A
Note 11 - Accounts Payable and Accrued Expenses | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
NOTE 11 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||||||
Accounts payable and accrued expenses consisted of the following: | |||||||||
As of September 30, | As of June 30, | ||||||||
2013 | 2013 | ||||||||
Accounts Payable | $ | 1,235,754 | $ | 825,025 | |||||
Accrued Liabilities | 2,117,431 | 2,055,066 | |||||||
Accrued Payroll | 63,942 | 25,529 | |||||||
Accrued Payroll Taxes | 284,883 | 218,084 | |||||||
Interest Payable | 76,370 | 71,872 | |||||||
Deferred Revenues | 798 | 937 | |||||||
Taxes Payable | 719,787 | 727,408 | |||||||
Total | $ | 4,498,965 | $ | 3,923,921 | |||||
Note_12_Debt
Note 12 - Debt | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||
Debt and Capital Leases Disclosures [Text Block] | ' | ||||||||||||||||
NOTE 12 – DEBTS | |||||||||||||||||
(A) LOANS AND LEASES PAYABLE | |||||||||||||||||
Notes payable consisted of the following: | |||||||||||||||||
Name | As of September 30 | Current | Long-Term | ||||||||||||||
2013 | Maturities | Maturities | |||||||||||||||
D&O Insurance | (1 | ) | $ | 44,411 | $ | 44,411 | $ | - | |||||||||
Habib Bank Line of Credit | (2 | ) | 2,211,822 | 2,211,822 | - | ||||||||||||
Bank Overdraft Facility | (3 | ) | 420,231 | 420,231 | - | ||||||||||||
HSBC Loan | (4 | ) | 1,032,253 | 321,270 | 710,983 | ||||||||||||
Term Finance Facility | (5 | ) | 703,103 | 351,552 | 351,551 | ||||||||||||
Subsidiary Capital Leases | (6 | ) | 665,359 | 311,102 | 354,257 | ||||||||||||
$ | 5,077,179 | $ | 3,660,388 | $ | 1,416,791 | ||||||||||||
Name | As of June 30 | Current | Long-Term | ||||||||||||||
2013 | Maturities | Maturities | |||||||||||||||
D&O Insurance | (1 | ) | $ | 88,292 | $ | 88,292 | $ | - | |||||||||
Habib Bank Line of Credit | (2 | ) | 1,785,237 | 1,785,237 | - | ||||||||||||
Bank Overdraft Facility | (3 | ) | 312,139 | 312,139 | - | ||||||||||||
HSBC Loan | (4 | ) | 1,047,014 | 336,339 | 710,675 | ||||||||||||
Term Finance Facility | (5 | ) | 867,195 | 495,540 | 371,655 | ||||||||||||
Subsidiary Capital Leases | (6 | ) | 638,800 | 308,918 | 329,882 | ||||||||||||
$ | 4,738,677 | $ | 3,326,465 | $ | 1,412,212 | ||||||||||||
(1) The Company finances Directors’ and Officers’ (“D&O”) liability insurance as well as Errors and Omissions (“E&O”) liability insurance, for which the total balances are renewed on an annual basis and as such are recorded in current maturities. The interest rate on the insurance financing was 0.40% and 0.40% as of September 30, 2013 and June 30, 2013, respectively. Interest paid during the three months ended September 30, 2013 and 2012 was nominal. | |||||||||||||||||
(2) In April 2008, the Company entered into an agreement with Habib American Bank to secure a line of credit to be collateralized by Certificates of Deposit held at the bank. The interest rate on this line of credit is variable and was 1.5% as of September 30, 2013 and June 30, 2013, respectively. In June 2012, the Company’s subsidiary, NTNA entered into an agreement with Habib American Bank to secure a line of credit up to $500,000 to be collateralized by Certificates of Deposit of same value held at the bank. The interest rate on this line of credit is variable and was 1.90% as of September 30, 2013 and June 30, 2013, respectively. Interest expense during the three months ended September 30, 2013 and 2012 was $7,296 and $3,772, respectively. | |||||||||||||||||
In February 2012, the Company entered into agreement with HSBC for the issuance of stand by letter of credit worth $90,000 in favor of landlord against the new office space. The Company has deposited $90,000 in a saving account with HSBC as collateral against this letter of credit. | |||||||||||||||||
(3) During the year ended June 30, 2008, the Company’s subsidiary, NTE entered into an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to £300,000, or approximately $484,290. The annual interest rate is 4.25% over the bank’s sterling base rate, which was 4.75% and 5.20% as of September 30, 2013 and June 30, 2013, respectively. Interest expense during the three months ended September 30, 2013 and 2012 was $22,442 and $18,524, respectively. | |||||||||||||||||
(4) In October 2011, the Company’s subsidiary, NTE, entered into a loan agreement with HSBC Bank to finance the acquisition of 51% of controlling interest in Virtual Leasing Services Limited. HSBC Bank guaranteed the loan up to a limit of £1,000,000, or approximately $1,614,300 for a period of 5 years with monthly payments of £18,420, or approximately $29,735. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against debenture comprising of fixed and floating charges over all the assets and undertakings of NTE including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. As of June 30, 2013, the subsidiary has used this facility up to $1,047,015, of which $710,675, was shown as long term and the remaining $336,339, as current maturity. As of September 30, 2013, the subsidiary has used this facility up to $1,032,253, of which $710,983, was shown as long term and the remaining $321,270, as current maturity. Interest expense, for the three months ended September 30, 2013 and 2012, was $18,849, and $21,665, respectively. | |||||||||||||||||
(5) The Company’s subsidiary, NetSol PK, entered into two different term finance facilities from Askari Bank to finance the construction of a new building. The total aggregate amount of these facilities is Rs. 112,500,000 or approximately $1,054,655(secured by the first charge of Rs. 580 million or approximately $5.44 million over the land, building and equipment of the company). The interest rate is 2.75% above the six-month Karachi Inter Bank Offering Rate. As of the year ended June 30, 2013, the Company has used a total of Rs.87,500,000 or approximately $867,195 of which $371,655 is shown as long term liabilities and the remainder of $495,540 as current maturity. As of September 30, 2013, the company has used a total of Rs.75,000,000, or approximately $703,103, of which $351,551, is shown as long term liabilities and the remainder of $351,552, as current maturity. Interest expense during the three months ended September 30, 2013 and 2012 was $22,123 and $37,202, respectively. | |||||||||||||||||
(6) The Company leases various fixed assets under capital lease arrangements expiring in various years through 2018. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are depreciated over the lesser of their related lease terms or their estimated useful lives and are secured by the assets themselves. Depreciation of assets under capital leases is included in depreciation expense for the three months ended September 30, 2013 and 2012. | |||||||||||||||||
Following is the aggregate minimum future lease payments under capital leases as of September 30, 2013: | |||||||||||||||||
As of September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Minimum Lease Payments | |||||||||||||||||
Due FYE 9/30/14 | $ | 368,052 | |||||||||||||||
Due FYE 9/30/15 | 247,621 | ||||||||||||||||
Due FYE 9/30/16 | 105,153 | ||||||||||||||||
Due FYE 9/30/17 | 37,957 | ||||||||||||||||
Total Minimum Lease Payments | 758,783 | ||||||||||||||||
Interest Expense relating to future periods | (93,424 | ) | |||||||||||||||
Present Value of minimum lease payments | 665,359 | ||||||||||||||||
Less: Current portion | (311,102 | ) | |||||||||||||||
Non-Current portion | $ | 354,257 | |||||||||||||||
Following is a summary of fixed assets held under capital leases as of September 30, 2013 and June 30, 2013: | |||||||||||||||||
As of September 30, | As of June 30, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Computer Equipment and Software | $ | 533,813 | $ | 454,002 | |||||||||||||
Furniture and Fixtures | 900 | 951 | |||||||||||||||
Vehicles | 675,816 | 671,907 | |||||||||||||||
Total | 1,210,529 | 1,126,860 | |||||||||||||||
Less: Accumulated Depreciation | (380,738 | ) | (350,048 | ) | |||||||||||||
Net | $ | 829,791 | $ | 776,812 | |||||||||||||
Interest expense for the three months ended September 30, 2013 and 2012 was $18,980, and $18,621, respectively. | |||||||||||||||||
(B) LOANS PAYABLE - BANK | |||||||||||||||||
The Company’s subsidiary, NetSol PK, has a loan with Askari Bank Limited, secured by the Company’s assets. This is a revolving loan that matures every six months. The balance of the loan at September 30, 2013 and June 30, 2013 was $1,874,941, and $1,982,161, respectively. The interest rate for the loans was 9.40% and 9.40% at September 30, 2013 and June 30, 2013, respectively. Interest expense for the three months ended September 30, 2013, and 2012 was $44,100 and $57,406, respectively. | |||||||||||||||||
Note_13_Other_Payable_and_Comm
Note 13 - Other Payable and Common Stoce To Be Issued | 3 Months Ended |
Sep. 30, 2013 | |
Other Payable And Common Stock To Be Issued [Abstract] | ' |
Other Payable And Common Stock To Be Issued | ' |
NOTE 13 – OTHER PAYABLE AND COMMON STOCK TO BE ISSUED | |
On June 30, 2006, the Company acquired McCue Systems, Inc. (“McCue”), a California corporation (subsequently renamed as NetSol Technologies North America, Inc.) The total purchase price was $7,080,385, including $3,784,635 of cash and 171,233 shares of the Company’s common stock. Of the total purchase price, the accompanying consolidated financial statements include certain amounts payable to McCue shareholders that have not been located as of the date of this report. | |
As of the periods ended September 30, 2013 and June 30, 2013, the remaining cash due of $103,226 is shown as “Other Payable” and the remaining stock to be issued of 4,670 shares at an average price of $18.90 is shown in “Common stock to be issued” in the accompanying consolidated financial statements. | |
Note_14_Stockholders_Equity
Note 14 - Stockholders' Equity | 3 Months Ended | |
Sep. 30, 2013 | ||
Stockholders' Equity Note [Abstract] | ' | |
Stockholders' Equity Note Disclosure [Text Block] | ' | |
NOTE 14 - STOCKHOLDERS’ EQUITY | ||
(A) | Treasury Stock | |
On November 11, 2011, the Company announced that it had authorized a stock repurchase program permitting the Company to repurchase up to 250,000 of its shares of common stock over the following 6 months. The shares are to be repurchased from time to time in open market transactions or privately negotiated transactions in the Company’s discretion. The Company repurchased 4,430 shares of common stock from open market against cash consideration of $19,417. The repurchase plan expired by its own terms in May, 2012. The balance of treasury stock as of September 30, 2013 and June 30, 2013 was $415,425. | ||
(B) | Share-Based Payment Transactions | |
The Company recorded an expense of $213,600 for the services rendered by officers during the three months ended September 30, 2013 in shares to be issued. | ||
The Company recorded an expense of $18,412 for services rendered by the independent members of the Board of Directors as part of their board compensation during the three months ended September 30, 2013. | ||
During the three months ended September 30, 2013, the Company issued a total of 6,500 shares of its common stock to employees pursuant to the terms of their employment agreements valued at $69,420. | ||
During the three months ended September 30, 2013, the Company issued a total of 2,400 shares of its common stock for provision of services to unrelated consultants valued at $9,210. | ||
The Company recorded an expense of $69,420 as part of compensation to employees as required according to the terms of their employment agreements during the three months ended September 30, 2013. | ||
Note_15_Incentive_And_NonStatu
Note 15 - Incentive And Non-Statutory Stock Option Plan | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
NOTE 15 - INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN | |||||||||||||||||
Common stock purchase options and warrants consisted of the following: | |||||||||||||||||
OPTIONS: | |||||||||||||||||
# of shares | Weighted | Weighted | Aggregated | ||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||
Exericse Price | Remaining | ||||||||||||||||
Contractual | |||||||||||||||||
Life (in years) | |||||||||||||||||
Outstanding and exercisable, June 30, 2013 | 311,462 | $ | 15.65 | 3.3 | |||||||||||||
Granted | 52,500 | $ | 7.82 | ||||||||||||||
Exercised | (52,500 | ) | $ | 7.82 | |||||||||||||
Expired / Cancelled | (9,000 | ) | $ | 32.7 | |||||||||||||
Outstanding and exercisable, September 30, 2013 | 302,462 | $ | 15.14 | 3.11 | $ | 517,621 | |||||||||||
WARRANTS: | |||||||||||||||||
Outstanding and exercisable, June 30, 2013 | 163,124 | $ | 7.29 | 3.44 | |||||||||||||
Granted / adjusted | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Expired | - | - | |||||||||||||||
Outstanding and exercisable, September 30, 2013 | 163,124 | $ | 7.29 | 2.94 | $ | 446,625 | |||||||||||
The average life remaining on the options and warrants as of September 30, 2013 is as follows: | |||||||||||||||||
Exercise Price | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Average | |||||||||||||||
and | Remaining | Exericse | |||||||||||||||
Exercisable | Contractual | Price | |||||||||||||||
Life | |||||||||||||||||
OPTIONS: | |||||||||||||||||
$0.10 | - | $9.90 | 183,462 | 3.71 | 7.21 | ||||||||||||
$10.00 | - | $19.90 | 14,000 | 2.35 | 18.18 | ||||||||||||
$20.00 | - | $29.90 | 91,000 | 2.45 | 25.31 | ||||||||||||
$30.00 | - | $50.00 | 14,000 | 0.4 | 50 | ||||||||||||
Totals | 302,462 | 3.11 | 15.14 | ||||||||||||||
WARRANTS: | |||||||||||||||||
$3.10 | - | $7.73 | 163,124 | 2.94 | 7.29 | ||||||||||||
Totals | 163,124 | 2.94 | 7.29 | ||||||||||||||
All options and warrants granted are vested and are exercisable as of September 30, 2013. | |||||||||||||||||
Below is the table summarizing stock grants awarded as compensation: | |||||||||||||||||
Issued by the Company | # of shares | Weighted | |||||||||||||||
Average Grant | |||||||||||||||||
Date Fair Value | |||||||||||||||||
($) | |||||||||||||||||
Unvested, June 30, 2012 | - | - | |||||||||||||||
Granted | 3,750 | $ | 5.48 | ||||||||||||||
Vested | (3,750 | ) | $ | 5.48 | |||||||||||||
Unvested, June 30, 2013 | - | - | |||||||||||||||
Granted | 86,899 | $ | 10.68 | ||||||||||||||
Vested | (21,724 | ) | $ | 10.68 | |||||||||||||
Unvested, September 30, 2013 | 65,175 | $ | 10.68 | ||||||||||||||
(A) INCENTIVE AND NON-STATUTORY STOCK OPTION PLANS | |||||||||||||||||
The Company maintains several Incentive and Non-Statutory Stock Option Plans (“Plans”) for its employees and consultants. Options granted under these Plans to an employee of the Company become exercisable over a period of no longer than ten (10) years and no less than twenty percent (20%) of the shares are exercisable annually. Options are not exercisable, in whole or in part, prior to one (1) year from the date of grant unless the Board specifically determines otherwise, as provided. | |||||||||||||||||
Two types of options may be granted under these Plans: (1) Incentive Stock Options (also known as Qualified Stock Options) which may only be issued to employees of the Company and whereby the exercise price of the option is not less than the fair market value of the common stock on the date it was reserved for issuance under the Plan; and (2) Non-statutory Stock Options which may be issued to either employees or consultants of the Company and whereby the exercise price of the option is less than the fair market value of the common stock on the date it was reserved for issuance under the plan. Grants of options may be made to employees and consultants without regard to any performance measures. All options issued pursuant to the Plan are nontransferable and subject to forfeiture. | |||||||||||||||||
OPTIONS | |||||||||||||||||
During the quarter ended September 30, 2013, the Company granted 47,500 options to four employees with an exercise price of $8 per share and an expiration date of 3 months, vesting immediately. Using the Black-Scholes method to value the options, the Company recorded $106,486 in compensation expense for these options in the accompanying consolidated financial statements. The Black-Scholes option pricing model used the following assumptions: | |||||||||||||||||
· | Risk-free interest rate - 0.05% | ||||||||||||||||
· | Expected life - 3 months | ||||||||||||||||
· | Expected volatility - 45.99% | ||||||||||||||||
· | Expected dividend - 0% | ||||||||||||||||
During the quarter ended September 30, 2013, the Company granted 5,000 options to one employee with an exercise price of $6.10 per share and an expiration date of 1 month, vesting immediately. Using the Black-Scholes method to value the options, the Company recorded $18,551 in compensation expense for these options in the accompanying consolidated financial statements. The Black-Scholes option pricing model used the following assumptions: | |||||||||||||||||
· | Risk-free interest rate - 0.02% | ||||||||||||||||
· | Expected life - 1 month | ||||||||||||||||
· | Expected volatility - 23.13% | ||||||||||||||||
· | Expected dividend - 0% | ||||||||||||||||
(B) EQUITY INCENTIVE PLAN | |||||||||||||||||
In May 2013, the shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”) which provides for the grant of equity-based awards, including options, stock appreciation rights, restricted stock awards or performance share awards or any other right or interest relating to shares or cash, to eligible participants. The aggregate number of shares reserved and available for award under the 2013 Plan is 1,250,000 (the Share Reserve). The 2013 Plan is administered by the Compensation Committee of the Board of Directors (“The Committee”), which shall consist of two or more “outside directors” as that term is used in Section 162 of the Code and the regulations promulgated thereunder. The 2013 Plan contemplates the issuance of common stock upon exercise of options or other awards granted to eligible persons under the 2013 Plan. Shares issued under the 2013 Plan may be both authorized and unissued shares or previously issued shares acquired by the Company. Upon termination or expiration of an unexercised option, stock appreciation right or other stock-based award under the 2013 Plan, in whole or in part, the number of shares of common stock subject to such award again becomes available for grant under the 2013 Plan. Any shares of restricted stock forfeited as described below will become available for grant. The aggregate Fair Market Value (determined at the time of the award) of all shares of Stock with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000. All options issued pursuant to the Plan are nontransferable and subject to forfeiture. | |||||||||||||||||
Stock Options | |||||||||||||||||
Options granted under the 2013 Plan are not generally transferable and the term shall be set by The Committee but must be exercised within 10 years, subject to earlier termination upon termination of the option holder's employment, but in no event later than the expiration of the option's term. The exercise price of each option may not be less than the fair market value of a share of the Company’s common stock on the date of grant (except in connection with the assumption or substitution for another option in a manner qualifying under Section 424(a) of the Internal Revenue Code of 1986, as amended (the Code). Incentive stock options granted to any participant who owns 10% or more of the Company’s outstanding common stock (a Ten Percent Shareholder) must have an exercise price equal to or exceeding 110% of the fair market value of a share of our common stock on the date of the grant and must not be exercisable for longer than five years. Options become vested and exercisable at such times or upon such events and subject to such terms, conditions, performance criteria or restrictions as specified by the Committee. | |||||||||||||||||
Performance Awards | |||||||||||||||||
Under the 2013 Plan, a participant may also be awarded a "performance award," which means that the participant may receive cash, stock or other awards contingent upon achieving performance goals established by the Committee. The Committee may also make "deferred share" awards, which entitle the participant to receive the Company’s stock in the future for services performed between the date of the award and the date the participant may receive the stock. The vesting of deferred share awards may be based on performance criteria and/or continued service with the Company. A participant who is granted a "stock appreciation right" under the Plan has the right to receive all or a percentage of the fair market value of a share of stock on the date of exercise of the stock appreciation right minus the grant price of the stock appreciation right determined by the Committee (but in no event less than the fair market value of the stock on the date of grant). Finally, the Committee may make "restricted stock" awards under the 2013 Plan, which is subject to such terms and conditions as the Committee determines and as are set forth in the award agreement related to the restricted stock. As of September 30, 2013, Nil shares have been issued under this plan to non-officers employees. | |||||||||||||||||
Note_16_Segment_Information_An
Note 16 - Segment Information And Geographic Areas | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
NOTE 16 – SEGMENT AND GEOGRAPHIC AREAS | |||||||||
The Company has identified three global regions or 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. We account for intra-company sales and expenses as if the sales or expenses were to third parties and eliminate them in the consolidation. The following table presents a summary of operating information and certain balance sheet information for the three months ended September 30: | |||||||||
2013 | 2012 | ||||||||
Revenues from unaffiliated customers: | |||||||||
North America | $ | 1,218,012 | $ | 1,713,190 | |||||
Europe | 1,208,682 | 1,506,001 | |||||||
Asia - Pacific | 6,630,622 | 7,852,709 | |||||||
Consolidated | $ | 9,057,316 | $ | 11,071,900 | |||||
Operating income (loss): | |||||||||
Corporate headquarters | $ | (1,122,311 | ) | $ | (900,725 | ) | |||
North America | (39,517 | ) | (233,685 | ) | |||||
Europe | (427,564 | ) | (23,805 | ) | |||||
Asia - Pacific | 66,440 | 2,660,161 | |||||||
Consolidated | $ | (1,522,952 | ) | $ | 1,501,946 | ||||
Net income (loss) after taxes and before non-controlling interest: | |||||||||
Corporate headquarters | $ | (1,149,908 | ) | $ | (1,503,819 | ) | |||
North America | (39,740 | ) | (233,936 | ) | |||||
Europe | (553,718 | ) | (34,970 | ) | |||||
Asia - Pacific | 1,280,418 | 3,034,129 | |||||||
Consolidated | $ | (462,948 | ) | $ | 1,261,404 | ||||
Identifiable assets: | |||||||||
Corporate headquarters | $ | 14,506,503 | $ | 14,163,394 | |||||
North America | 2,867,929 | 3,242,885 | |||||||
Europe | 4,666,802 | 5,989,190 | |||||||
Asia - Pacific | 80,305,880 | 73,165,459 | |||||||
Consolidated | $ | 102,347,114 | $ | 96,560,928 | |||||
Depreciation and amortization: | |||||||||
Corporate headquarters | $ | 34,652 | $ | 33,889 | |||||
North America | 159,345 | 159,901 | |||||||
Europe | 220,726 | 226,983 | |||||||
Asia - Pacific | 1,058,563 | 879,379 | |||||||
Consolidated | $ | 1,473,286 | $ | 1,300,152 | |||||
Capital expenditures: | |||||||||
Corporate headquarters | $ | 2,097 | $ | 720 | |||||
North America | 7,987 | 36,646 | |||||||
Europe | 77,580 | 13,370 | |||||||
Asia - Pacific | 2,603,402 | 1,406,398 | |||||||
Consolidated | $ | 2,691,066 | $ | 1,457,134 | |||||
Interest expense: | |||||||||
Corporate headquarters | $ | 7,883 | $ | 229,228 | |||||
North America | 299 | 564 | |||||||
Europe | 44,347 | 40,189 | |||||||
Asia - Pacific | 16,688 | 22,408 | |||||||
Consolidated | $ | 69,217 | $ | 292,389 | |||||
Income tax expense: | |||||||||
Europe | $ | - | $ | (29,024 | ) | ||||
Asia - Pacific | 11,131 | 43,020 | |||||||
Consolidated | $ | 11,131 | $ | 13,996 | |||||
Note_17_NonControlling_Interes
Note 17 - Non-Controlling Interest In Subsidiary | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||
Noncontrolling Interest Disclosure [Text Block] | ' | ||||||||
NOTE 17 – NON-CONTROLLING INTEREST IN SUBSIDIARY | |||||||||
The Company had non-controlling interests in several of its subsidiaries. The balance of non-controlling interest was as follows: | |||||||||
SUBSIDIARY | Non Controlling | Non-Controlling | |||||||
Interest % | Interest at | ||||||||
September 30, | |||||||||
2013 | |||||||||
NetSol PK | 35.77 | % | $ | 15,062,396 | |||||
NetSol-Innovation | 49.9 | % | 1,341,402 | ||||||
VLS | 49 | % | 454,162 | ||||||
Vroozi | 9.09 | % | 3,216 | ||||||
Total | $ | 16,861,176 | |||||||
SUBSIDIARY | Non Controlling | Non-Controlling | |||||||
Interest % | Interest at | ||||||||
June 30, | |||||||||
2013 | |||||||||
NetSol PK | 34.81 | % | $ | 15,593,585 | |||||
NetSol-Innovation | 49.9 | % | 1,161,649 | ||||||
VLS | 49 | % | 481,121 | ||||||
Vroozi | 9.09 | % | 34,908 | ||||||
Total | $ | 17,271,263 | |||||||
(A) NETSOL TECHNOLOGIES, LIMITED | |||||||||
NetSol PK is majority owned by the Company. For the three months ended September 30, 2013 and 2012, NetSol PK had net income of $1,286,605 and $606,090, respectively. The related non-controlling interest was $460,219 and $239,284, respectively. For the same period the Comprehensive loss attributable to non-controlling interest was $1,167,688, and $237,743, respectively. | |||||||||
Employees of the company also exercised options to acquire 1,174,000 shares of the subsidiary valued at $176,280. | |||||||||
(B) NETSOL INNOVATION (PRIVATE) LIMITED | |||||||||
For the three months ended September 30, 2013 and 2012, NetSol Innovation had net income of $501,344 and $256,535. The related non-controlling interest was $250,171 and $128,011, respectively. For the same period the Comprehensive loss attributable to non-controlling interest was $70,418 and $12,356 respectively. | |||||||||
(C) VIRTUAL LEASE SERVICES | |||||||||
For the three months ended September 30, 2013 and 2012, VLS had a net loss of $90,879 and $64,620. The related, non-controlling interest was $44,531 and $31,664, respectively. For the same period the comprehensive income attributable to non-controlling interest was $17,572 and $17,543 respectively. | |||||||||
(D) VROOZI®, INC. | |||||||||
During the quarter ended March 31, 2013, the subsidiary company issued shares worth of $100,000 to one employee against his services. As a result, the status of the subsidiary has been changed from wholly owned subsidiary to majority owned subsidiary. For the three months ended September 30, 2013 Vroozi® had a net loss of $348,648, of which $31,692 has been recorded as non-controlling interest. | |||||||||
Note_18_Subsequent_Events
Note 18 - Subsequent Events | 3 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 18 - SUBSEQUENT EVENTS | |
Pursuant to ASC 855-10, the Company has evaluated all events or transactions from September 30, 2013, through the filing with SEC. The Company did not have any material recognizable subsequent events during this period. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
New Accounting Pronouncements | |
Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. The amendments in this Update do not require new recurring disclosures. ASU Topic No. 2013 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
In March 2013, the FASB issued guidance on a parent’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The new guidance will be effective for us beginning July 1, 2014. We do not anticipate material impacts on the Company’s financial statements upon adoption. |
Note_3_Earnings_Per_Share_Tabl
Note 3 - Earnings Per Share (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||
For the three months ended September 30, 2013 | Net Loss | Shares | Per Share | ||||||||||
Basic loss per share: | |||||||||||||
Net loss available to common shareholders | $ | (1,097,115 | ) | 8,956,007 | $ | (0.12 | ) | ||||||
Effect of dilutive securities | |||||||||||||
Stock options | - | - | - | ||||||||||
Warrants | - | - | - | ||||||||||
Diluted loss per share | $ | (1,097,115 | ) | 8,956,007 | $ | (0.12 | ) | ||||||
For the three months ended September 30, 2012 | Net Income | Shares | Per Share | ||||||||||
Basic income per share: | |||||||||||||
Net income available to common shareholders | $ | 929,125 | 7,591,891 | $ | 0.12 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock options | - | - | - | ||||||||||
Warrants | - | 7,245 | - | ||||||||||
Diluted income per share | $ | 929,125 | 7,599,136 | $ | 0.12 | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||
As of September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Stock Options | 57,914 | - | |||||||||||
Warrants | 50,202 | - | |||||||||||
Convertible Note | - | 59,644 | |||||||||||
108,116 | 59,644 |
Note_6_Other_Current_Assets_Ta
Note 6 - Other Current Assets (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Other Assets [Table Text Block] | ' | ||||||||
As of September 30, | As of June 30, | ||||||||
2013 | 2013 | ||||||||
Prepaid Expenses | $ | 512,517 | $ | 559,217 | |||||
Advance Income Tax | 881,596 | 887,893 | |||||||
Employee Advances | 40,319 | 43,794 | |||||||
Security Deposits | 183,801 | 189,382 | |||||||
Tender Money Receivable | 91,734 | 106,398 | |||||||
Other Receivables | 298,624 | 222,609 | |||||||
Other Assets | 765,396 | 197,915 | |||||||
Due From Related Party | 67,139 | 66,106 | |||||||
Total | $ | 2,841,126 | $ | 2,273,314 |
Note_7_Property_And_Equipment_
Note 7 - Property And Equipment (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
As of September 30, | As of June 30, | ||||||||
2013 | 2013 | ||||||||
Office furniture and equipment | $ | 2,357,632 | $ | 2,508,975 | |||||
Computer equipment | 20,635,789 | 19,987,480 | |||||||
Assets under capital leases | 1,210,529 | 1,126,860 | |||||||
Building | 2,262,187 | 2,391,550 | |||||||
Land | 2,327,070 | 2,460,144 | |||||||
Capital work in progress | 5,756,021 | 5,104,283 | |||||||
Autos | 714,474 | 689,440 | |||||||
Improvements | 510,942 | 513,044 | |||||||
Subtotal | 35,774,644 | 34,781,776 | |||||||
Accumulated depreciation | (14,281,346 | ) | (13,803,407 | ) | |||||
Property and equipment, net | $ | 21,493,298 | $ | 20,978,369 |
Note_8_Intangible_Assets_Table
Note 8 - Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||
Product Licenses | Customer Lists | Technology | Total | ||||||||||||||
Intangible assets - June 30, 2013 - cost | $ | 44,837,558 | $ | 6,052,377 | $ | 242,702 | $ | 51,132,637 | |||||||||
Additions | 1,362,026 | - | - | 1,322,150 | |||||||||||||
Effect of translation adjustment | (1,595,186 | ) | - | - | (1,555,310 | ) | |||||||||||
Accumulated amortization | (16,129,094 | ) | (5,897,502 | ) | (97,082 | ) | (22,123,678 | ) | |||||||||
Net balance - September 30, 2013 | $ | 28,475,304 | $ | 154,875 | $ | 145,620 | $ | 28,775,799 | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||
Year ended: | |||||||||||||||||
30-Sep-14 | 1,746,484 | ||||||||||||||||
30-Sep-15 | 1,306,724 | ||||||||||||||||
30-Sep-16 | 872,360 | ||||||||||||||||
30-Sep-17 | 711,323 | ||||||||||||||||
30-Sep-18 | 688,878 | ||||||||||||||||
Thereafter | 23,450,029 |
Note_9_Goodwill_Tables
Note 9 - Goodwill (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||
As of September 30, | As of June 30, | ||||||||
2013 | 2013 | ||||||||
Asia Pacific | $ | 1,303,372 | $ | 1,303,372 | |||||
Europe | 3,685,858 | 3,685,858 | |||||||
USA | 4,664,100 | 4,664,100 | |||||||
Total | $ | 9,653,330 | $ | 9,653,330 |
Note_10_Investment_Under_Equit1
Note 10 - Investment Under Equity Method (Tables) | 3 Months Ended | ||||
Sep. 30, 2013 | |||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||
Schedule Of Joint Venture [Table Text Block] | ' | ||||
Net book value at June 30, 2013 | $ | 545,482 | |||
Net income for the three months ended September 30, 2013 | 18,346 | ||||
NetSol's share (50.1%) | 9,192 | ||||
Total income | 9,192 | ||||
Income adjusted against investment | 9,192 | ||||
Net book value at September 30, 2013 | $ | 554,674 |
Note_11_Accounts_Payable_and_A1
Note 11 - Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||||||
As of September 30, | As of June 30, | ||||||||
2013 | 2013 | ||||||||
Accounts Payable | $ | 1,235,754 | $ | 825,025 | |||||
Accrued Liabilities | 2,117,431 | 2,055,066 | |||||||
Accrued Payroll | 63,942 | 25,529 | |||||||
Accrued Payroll Taxes | 284,883 | 218,084 | |||||||
Interest Payable | 76,370 | 71,872 | |||||||
Deferred Revenues | 798 | 937 | |||||||
Taxes Payable | 719,787 | 727,408 | |||||||
Total | $ | 4,498,965 | $ | 3,923,921 |
Note_12_Debt_Tables
Note 12 - Debt (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||||||||||
Name | As of September 30 | Current | Long-Term | ||||||||||||||
2013 | Maturities | Maturities | |||||||||||||||
D&O Insurance | (1 | ) | $ | 44,411 | $ | 44,411 | $ | - | |||||||||
Habib Bank Line of Credit | (2 | ) | 2,211,822 | 2,211,822 | - | ||||||||||||
Bank Overdraft Facility | (3 | ) | 420,231 | 420,231 | - | ||||||||||||
HSBC Loan | (4 | ) | 1,032,253 | 321,270 | 710,983 | ||||||||||||
Term Finance Facility | (5 | ) | 703,103 | 351,552 | 351,551 | ||||||||||||
Subsidiary Capital Leases | (6 | ) | 665,359 | 311,102 | 354,257 | ||||||||||||
$ | 5,077,179 | $ | 3,660,388 | $ | 1,416,791 | ||||||||||||
Name | As of June 30 | Current | Long-Term | ||||||||||||||
2013 | Maturities | Maturities | |||||||||||||||
D&O Insurance | (1 | ) | $ | 88,292 | $ | 88,292 | $ | - | |||||||||
Habib Bank Line of Credit | (2 | ) | 1,785,237 | 1,785,237 | - | ||||||||||||
Bank Overdraft Facility | (3 | ) | 312,139 | 312,139 | - | ||||||||||||
HSBC Loan | (4 | ) | 1,047,014 | 336,339 | 710,675 | ||||||||||||
Term Finance Facility | (5 | ) | 867,195 | 495,540 | 371,655 | ||||||||||||
Subsidiary Capital Leases | (6 | ) | 638,800 | 308,918 | 329,882 | ||||||||||||
$ | 4,738,677 | $ | 3,326,465 | $ | 1,412,212 | ||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||||||||||||||
As of September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Minimum Lease Payments | |||||||||||||||||
Due FYE 9/30/14 | $ | 368,052 | |||||||||||||||
Due FYE 9/30/15 | 247,621 | ||||||||||||||||
Due FYE 9/30/16 | 105,153 | ||||||||||||||||
Due FYE 9/30/17 | 37,957 | ||||||||||||||||
Total Minimum Lease Payments | 758,783 | ||||||||||||||||
Interest Expense relating to future periods | (93,424 | ) | |||||||||||||||
Present Value of minimum lease payments | 665,359 | ||||||||||||||||
Less: Current portion | (311,102 | ) | |||||||||||||||
Non-Current portion | $ | 354,257 | |||||||||||||||
Schedule of Capital Leased Assets [Table Text Block] | ' | ||||||||||||||||
As of September 30, | As of June 30, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Computer Equipment and Software | $ | 533,813 | $ | 454,002 | |||||||||||||
Furniture and Fixtures | 900 | 951 | |||||||||||||||
Vehicles | 675,816 | 671,907 | |||||||||||||||
Total | 1,210,529 | 1,126,860 | |||||||||||||||
Less: Accumulated Depreciation | (380,738 | ) | (350,048 | ) | |||||||||||||
Net | $ | 829,791 | $ | 776,812 |
Note_15_Incentive_And_NonStatu1
Note 15 - Incentive And Non-Statutory Stock Option Plan (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||
OPTIONS: | |||||||||||||||||
# of shares | Weighted | Weighted | Aggregated | ||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||
Exericse Price | Remaining | ||||||||||||||||
Contractual | |||||||||||||||||
Life (in years) | |||||||||||||||||
Outstanding and exercisable, June 30, 2013 | 311,462 | $ | 15.65 | 3.3 | |||||||||||||
Granted | 52,500 | $ | 7.82 | ||||||||||||||
Exercised | (52,500 | ) | $ | 7.82 | |||||||||||||
Expired / Cancelled | (9,000 | ) | $ | 32.7 | |||||||||||||
Outstanding and exercisable, September 30, 2013 | 302,462 | $ | 15.14 | 3.11 | $ | 517,621 | |||||||||||
WARRANTS: | |||||||||||||||||
Outstanding and exercisable, June 30, 2013 | 163,124 | $ | 7.29 | 3.44 | |||||||||||||
Granted / adjusted | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Expired | - | - | |||||||||||||||
Outstanding and exercisable, September 30, 2013 | 163,124 | $ | 7.29 | 2.94 | $ | 446,625 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Exercise Price | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Average | |||||||||||||||
and | Remaining | Exericse | |||||||||||||||
Exercisable | Contractual | Price | |||||||||||||||
Life | |||||||||||||||||
OPTIONS: | |||||||||||||||||
$0.10 | - | $9.90 | 183,462 | 3.71 | 7.21 | ||||||||||||
$10.00 | - | $19.90 | 14,000 | 2.35 | 18.18 | ||||||||||||
$20.00 | - | $29.90 | 91,000 | 2.45 | 25.31 | ||||||||||||
$30.00 | - | $50.00 | 14,000 | 0.4 | 50 | ||||||||||||
Totals | 302,462 | 3.11 | 15.14 | ||||||||||||||
WARRANTS: | |||||||||||||||||
$3.10 | - | $7.73 | 163,124 | 2.94 | 7.29 | ||||||||||||
Totals | 163,124 | 2.94 | 7.29 | ||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||||
Issued by the Company | # of shares | Weighted | |||||||||||||||
Average Grant | |||||||||||||||||
Date Fair Value | |||||||||||||||||
($) | |||||||||||||||||
Unvested, June 30, 2012 | - | - | |||||||||||||||
Granted | 3,750 | $ | 5.48 | ||||||||||||||
Vested | (3,750 | ) | $ | 5.48 | |||||||||||||
Unvested, June 30, 2013 | - | - | |||||||||||||||
Granted | 86,899 | $ | 10.68 | ||||||||||||||
Vested | (21,724 | ) | $ | 10.68 | |||||||||||||
Unvested, September 30, 2013 | 65,175 | $ | 10.68 |
Note_16_Segment_Information_An1
Note 16 - Segment Information And Geographic Areas (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Revenues from unaffiliated customers: | |||||||||
North America | $ | 1,218,012 | $ | 1,713,190 | |||||
Europe | 1,208,682 | 1,506,001 | |||||||
Asia - Pacific | 6,630,622 | 7,852,709 | |||||||
Consolidated | $ | 9,057,316 | $ | 11,071,900 | |||||
Operating income (loss): | |||||||||
Corporate headquarters | $ | (1,122,311 | ) | $ | (900,725 | ) | |||
North America | (39,517 | ) | (233,685 | ) | |||||
Europe | (427,564 | ) | (23,805 | ) | |||||
Asia - Pacific | 66,440 | 2,660,161 | |||||||
Consolidated | $ | (1,522,952 | ) | $ | 1,501,946 | ||||
Net income (loss) after taxes and before non-controlling interest: | |||||||||
Corporate headquarters | $ | (1,149,908 | ) | $ | (1,503,819 | ) | |||
North America | (39,740 | ) | (233,936 | ) | |||||
Europe | (553,718 | ) | (34,970 | ) | |||||
Asia - Pacific | 1,280,418 | 3,034,129 | |||||||
Consolidated | $ | (462,948 | ) | $ | 1,261,404 | ||||
Identifiable assets: | |||||||||
Corporate headquarters | $ | 14,506,503 | $ | 14,163,394 | |||||
North America | 2,867,929 | 3,242,885 | |||||||
Europe | 4,666,802 | 5,989,190 | |||||||
Asia - Pacific | 80,305,880 | 73,165,459 | |||||||
Consolidated | $ | 102,347,114 | $ | 96,560,928 | |||||
Depreciation and amortization: | |||||||||
Corporate headquarters | $ | 34,652 | $ | 33,889 | |||||
North America | 159,345 | 159,901 | |||||||
Europe | 220,726 | 226,983 | |||||||
Asia - Pacific | 1,058,563 | 879,379 | |||||||
Consolidated | $ | 1,473,286 | $ | 1,300,152 | |||||
Capital expenditures: | |||||||||
Corporate headquarters | $ | 2,097 | $ | 720 | |||||
North America | 7,987 | 36,646 | |||||||
Europe | 77,580 | 13,370 | |||||||
Asia - Pacific | 2,603,402 | 1,406,398 | |||||||
Consolidated | $ | 2,691,066 | $ | 1,457,134 | |||||
Interest expense: | |||||||||
Corporate headquarters | $ | 7,883 | $ | 229,228 | |||||
North America | 299 | 564 | |||||||
Europe | 44,347 | 40,189 | |||||||
Asia - Pacific | 16,688 | 22,408 | |||||||
Consolidated | $ | 69,217 | $ | 292,389 | |||||
Income tax expense: | |||||||||
Europe | $ | - | $ | (29,024 | ) | ||||
Asia - Pacific | 11,131 | 43,020 | |||||||
Consolidated | $ | 11,131 | $ | 13,996 |
Note_17_NonControlling_Interes1
Note 17 - Non-Controlling Interest In Subsidiary (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||
Schedule Of Non-Controlling Interests [Table Text Block] | ' | ||||||||
SUBSIDIARY | Non Controlling | Non-Controlling | |||||||
Interest % | Interest at | ||||||||
September 30, | |||||||||
2013 | |||||||||
NetSol PK | 35.77 | % | $ | 15,062,396 | |||||
NetSol-Innovation | 49.9 | % | 1,341,402 | ||||||
VLS | 49 | % | 454,162 | ||||||
Vroozi | 9.09 | % | 3,216 | ||||||
Total | $ | 16,861,176 | |||||||
SUBSIDIARY | Non Controlling | Non-Controlling | |||||||
Interest % | Interest at | ||||||||
June 30, | |||||||||
2013 | |||||||||
NetSol PK | 34.81 | % | $ | 15,593,585 | |||||
NetSol-Innovation | 49.9 | % | 1,161,649 | ||||||
VLS | 49 | % | 481,121 | ||||||
Vroozi | 9.09 | % | 34,908 | ||||||
Total | $ | 17,271,263 |
Note_3_Earnings_Per_Share_Deta
Note 3 - Earnings Per Share (Details) - Components of basic and diluted earnings per share: (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Basic loss per share: | ' | ' |
Net loss (in Dollars) | ($1,097,115) | $929,125 |
Shares | 8,956,007 | 7,591,891 |
Per Share (in Dollars per share) | ($0.12) | $0.12 |
Effect of dilutive securities | ' | ' |
Shares | 108,116 | 59,644 |
Net loss (in Dollars) | ($1,097,115) | $929,125 |
Shares | 8,956,007 | 7,599,136 |
Per Share (in Dollars per share) | ($0.12) | $0.12 |
Warrant [Member] | ' | ' |
Effect of dilutive securities | ' | ' |
Shares | 50,202 | 7,245 |
Note_3_Earnings_Per_Share_Deta1
Note 3 - Earnings Per Share (Details) - Potential Dilutive Shares | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive shares | 108,116 | 59,644 |
Stock Compensation Plan [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive shares | 57,914 | ' |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive shares | 50,202 | 7,245 |
Convertible Debt Securities [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive shares | ' | 59,644 |
Note_4_Other_Comprehensive_Inc1
Note 4 - Other Comprehensive Income & Foreign Currency (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
NetSol [Member] | NetSol [Member] | |||
Note 4 - Other Comprehensive Income & Foreign Currency (Details) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($17,916,294) | ($15,714,112) | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | ' | ' | ($2,202,182) | ($536,239) |
Note_5_Accounts_Receivable_Det
Note 5 - Accounts Receivable (Details) (USD $) | Sep. 30, 2013 |
Receivables [Abstract] | ' |
Accounts Receivable, Related Parties | $154,050 |
Note_6_Other_Current_Assets_De
Note 6 - Other Current Assets (Details) - Other current assets consisted of the following: (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Other current assets consisted of the following: [Abstract] | ' | ' |
Prepaid Expenses | $512,517 | $559,217 |
Advance Income Tax | 881,596 | 887,893 |
Employee Advances | 40,319 | 43,794 |
Security Deposits | 183,801 | 189,382 |
Tender Money Receivable | 91,734 | 106,398 |
Other Receivables | 298,624 | 222,609 |
Other Assets | 765,396 | 197,915 |
Due From Related Party | 67,139 | 66,106 |
Total | $2,841,126 | $2,273,314 |
Note_7_Property_And_Equipment_1
Note 7 - Property And Equipment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation | $997,560 | $754,108 | ' |
Cost of Services, Depreciation | 613,110 | 454,745 | ' |
Interest Costs Capitalized | 68,280 | ' | 292,390 |
Capital Leased Assets, Gross | 1,210,529 | ' | 1,126,860 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Property, Plant, and Equipment Other, Accumulated Depreciation | $380,738 | ' | $350,048 |
Note_7_Property_And_Equipment_2
Note 7 - Property And Equipment (Details) - Property and equipment, net, consist of the following: (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Office furniture and equipment | $2,357,632 | $2,508,975 |
Computer equipment | 20,635,789 | 19,987,480 |
Assets under capital leases | 1,210,529 | 1,126,860 |
Building | 2,262,187 | 2,391,550 |
Land | 2,327,070 | 2,460,144 |
Capital work in progress | 5,756,021 | 5,104,283 |
Accumulated depreciation | -14,281,346 | -13,803,407 |
Property and equipment, net | 21,493,298 | 20,978,369 |
Improvements | 510,942 | 513,044 |
Automobiles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 714,474 | 689,440 |
Subtotal [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $35,774,644 | $34,781,776 |
Note_8_Intangible_Assets_Detai
Note 8 - Intangible Assets (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Sep. 30, 2012 | Oct. 04, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
VLS [Member] | VLS [Member] | VLS [Member] | VLS [Member] | Product Licenses [Member] | Product Licenses [Member] | ||
Customer Lists [Member] | Customer Lists [Member] | Technology [Member] | Technology [Member] | ||||
Note 8 - Intangible Assets (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived License Agreements, Gross | ' | ' | ' | ' | ' | $22,235,935 | ' |
Finite-Lived Intangible Asset, Useful Life | ' | '5 years | ' | '5 years | ' | '8 years | ' |
Amortization of Intangible Assets | $30,286 | ' | $30,048 | $12,119 | $12,353 | $433,559 | $503,406 |
Note_8_Intangible_Assets_Detai1
Note 8 - Intangible Assets (Details) - Intangible assets: (USD $) | 15 Months Ended | |
Sep. 30, 2013 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets - June 30, 2013 - cost | ' | $51,132,637 |
Additions | 1,322,150 | ' |
Effect of translation adjustment | -1,555,310 | ' |
Accumulated amortization | -22,123,678 | ' |
Net balance - September 30, 2013 | 28,775,799 | 29,452,654 |
Licensing Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets - June 30, 2013 - cost | ' | 44,837,558 |
Additions | 1,362,026 | ' |
Effect of translation adjustment | -1,595,186 | ' |
Accumulated amortization | -16,129,094 | ' |
Net balance - September 30, 2013 | 28,475,304 | ' |
Customer Lists [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets - June 30, 2013 - cost | ' | 6,052,377 |
Accumulated amortization | -5,897,502 | ' |
Net balance - September 30, 2013 | 154,875 | ' |
Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets - June 30, 2013 - cost | ' | 242,702 |
Accumulated amortization | -97,082 | ' |
Net balance - September 30, 2013 | $145,620 | ' |
Note_8_Intangible_Assets_Detai2
Note 8 - Intangible Assets (Details) - Estimated amortization expense of intangible assets over the next five years: (USD $) | Sep. 30, 2013 |
Estimated amortization expense of intangible assets over the next five years: [Abstract] | ' |
30-Sep-14 | $1,746,484 |
30-Sep-15 | 1,306,724 |
30-Sep-16 | 872,360 |
30-Sep-17 | 711,323 |
30-Sep-18 | 688,878 |
Thereafter | $23,450,029 |
Note_9_Goodwill_Details_Summar
Note 9 - Goodwill (Details) - Summary of goodwill acquired: (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Goodwill [Line Items] | ' | ' |
Schedule of Goodwill | $9,653,330 | $9,653,330 |
Asia Pacific [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Schedule of Goodwill | 1,303,372 | 1,303,372 |
Europe [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Schedule of Goodwill | 3,685,858 | 3,685,858 |
USA [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Schedule of Goodwill | $4,664,100 | $4,664,100 |
Note_10_Investment_Under_Equit2
Note 10 - Investment Under Equity Method (Details) (USD $) | 0 Months Ended |
Apr. 10, 2009 | |
Note 10 - Investment Under Equity Method (Details) [Line Items] | ' |
Payments to Acquire Interest in Joint Venture (in Dollars) | $268,000 |
Atheeb [Member] | ' |
Note 10 - Investment Under Equity Method (Details) [Line Items] | ' |
Payments to Acquire Interest in Joint Venture (in Dollars) | $266,930 |
Profit Sharing Ratio | 49.9 |
NetSol [Member] | ' |
Note 10 - Investment Under Equity Method (Details) [Line Items] | ' |
Profit Sharing Ratio | 50.1 |
Note_10_Investment_Under_Equit3
Note 10 - Investment Under Equity Method (Details) - Company's investment in equity: (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Jun. 30, 2013 | |
Company's investment in equity: [Abstract] | ' | ' |
Net book value | $554,674 | $545,482 |
Net income for the three months ended September 30, 2013 | 18,346 | ' |
NetSol's share (50.1%) | 9,192 | ' |
Total income | 9,192 | ' |
Income adjusted against investment | $9,192 | ' |
Note_10_Investment_Under_Equit4
Note 10 - Investment Under Equity Method (Details) - Company's investment in equity: (Parentheticals) | 3 Months Ended |
Sep. 30, 2013 | |
Company's investment in equity: [Abstract] | ' |
NetSol's share | 50.10% |
Note_11_Accounts_Payable_and_A2
Note 11 - Accounts Payable and Accrued Expenses (Details) - Accounts payable and accrued expenses consisted of the following: (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Accounts payable and accrued expenses consisted of the following: [Abstract] | ' | ' |
Accounts Payable | $1,235,754 | $825,025 |
Accrued Liabilities | 2,117,431 | 2,055,066 |
Accrued Payroll | 63,942 | 25,529 |
Accrued Payroll Taxes | 284,883 | 218,084 |
Interest Payable | 76,370 | 71,872 |
Deferred Revenues | 798 | 937 |
Taxes Payable | 719,787 | 727,408 |
Total | $4,498,965 | $3,923,921 |
Note_12_Debt_Details
Note 12 - Debt (Details) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Oct. 31, 2011 | Oct. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2008 | Jun. 30, 2008 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Feb. 28, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |||||||
USD ($) | USD ($) | Standby Letters of Credit [Member] | D&O And E&O Liability Insurance [Member] | D&O And E&O Liability Insurance [Member] | NTNA [Member] | NTNA [Member] | NTNA [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NTE [Member] | NetSol PK [Member] | NetSol PK [Member] | NetSol PK [Member] | NetSol PK [Member] | NetSol PK [Member] | NetSol PK [Member] | NetSol PK [Member] | NetSol PK [Member] | NetSol PK [Member] | HSBC [Member] | Habib Bank Line Of Credit [Member] | Habib Bank Line Of Credit [Member] | HSBC Loan [Member] | HSBC Loan [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | |||||||
HSBC [Member] | Habib Bank Line Of Credit [Member] | Habib Bank Line Of Credit [Member] | Habib Bank Line Of Credit [Member] | HSBC Loan [Member] | HSBC Loan [Member] | HSBC Loan [Member] | HSBC Loan [Member] | HSBC Loan [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | PKR | USD ($) | PKR | PKR | |||||||||||||||||||||||
Note 12 - Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | 0.40% | 0.40% | 1.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.50% | ' | ' | ' | ' | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | $500,000 | $1,614,300 | £ 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,054,655 | ' | ' | ' | 112,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Interest Expense, Debt | 18,980 | 18,621 | ' | ' | ' | 7,296 | 3,772 | ' | ' | ' | 18,849 | 21,665 | ' | 22,442 | 18,524 | ' | ' | ' | ' | 22,123 | 37,202 | ' | ' | ' | ' | 44,100 | 57,406 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Line of Credit Facility, Amount Outstanding | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,047,015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Loans Pledged as Collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ||||||
Long-term Line of Credit (in Pounds) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,032,253 | ' | ' | ' | ' | ' | ' | 484,290 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,211,822 | [1] | 1,785,237 | [1] | 1,032,253 | [2] | 1,047,014 | [2] | 703,103 | [3] | 867,195 | [3] |
Long-term Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,032,253 | ' | ' | ' | ' | ' | ' | 484,290 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,211,822 | [1] | 1,785,237 | [1] | 1,032,253 | [2] | 1,047,014 | [2] | 703,103 | [3] | 867,195 | [3] |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 3.50% | ' | ' | ' | 4.25% | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Line of Credit Facility, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | ' | ' | ' | ' | ' | 4.75% | 5.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Line of Credit Facility, Periodic Payment (in Pounds) | ' | ' | ' | ' | ' | ' | ' | ' | 29,735 | 18,420 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Line of Credit Facility, Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | 29,735 | 18,420 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Long-term Line of Credit, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 710,983 | ' | 710,675 | ' | ' | ' | ' | ' | ' | 351,551 | ' | ' | 371,655 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Line of Credit, Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 321,270 | ' | 336,339 | ' | ' | ' | ' | ' | ' | 351,552 | ' | ' | 495,540 | ' | ' | ' | ' | ' | ' | 2,211,822 | [1] | 1,785,237 | [1] | 321,270 | [2] | 336,339 | [2] | 351,552 | [3] | 495,540 | [3] |
Debt Instrument, Collateral Amount (in Rupees) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,440,000 | ' | ' | ' | 580,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Debt Instrument, Collateral Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,440,000 | ' | ' | ' | 580,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Line of Credit Facility, Current Borrowing Capacity (in Rupees) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 703,103 | ' | 75,000,000 | 867,195 | 87,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Line of Credit Facility, Current Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 703,103 | ' | 75,000,000 | 867,195 | 87,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Loans Payable to Bank | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,874,941 | ' | $1,982,161 | ' | ' | ' | ' | ' | ' | ' | ||||||
Debt Instrument, Interest Rate at Period End | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.40% | ' | 9.40% | ' | ' | ' | ' | ' | ' | ' | ||||||
[1] | In April 2008, the Company entered into an agreement with Habib American Bank to secure a line of credit to be collateralized by Certificates of Deposit held at the bank. The interest rate on this line of credit is variable and was 1.5% as of September 30, 2013 and June 30, 2013, respectively. In June 2012, the Company's subsidiary, NTNA entered into an agreement with Habib American Bank to secure a line of credit up to $500,000 to be collateralized by Certificates of Deposit of same value held at the bank. The interest rate on this line of credit is variable and was 1.90% as of September 30, 2013 and June 30, 2013, respectively. Interest expense during the three months ended September 30, 2013 and 2012 was $7,296 and $3,772, respectively. | ||||||||||||||||||||||||||||||||||||||||
[2] | In October 2011, the Company's subsidiary, NTE, entered into a loan agreement with HSBC Bank to finance the acquisition of 51% of controlling interest in Virtual Leasing Services Limited. HSBC Bank guaranteed the loan up to a limit of 1,000,000, or approximately $1,614,300 for a period of 5 years with monthly payments of 18,420, or approximately $29,735. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against debenture comprising of fixed and floating charges over all the assets and undertakings of NTE including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. As of June 30, 2013, the subsidiary has used this facility up to $1,047,015, of which $710,675, was shown as long term and the remaining $336,339, as current maturity. As of September 30, 2013, the subsidiary has used this facility up to $1,032,253, of which $710,983, was shown as long term and the remaining $321,270, as current maturity. Interest expense, for the three months ended September 30, 2013 and 2012, was $18,849, and $21,665, respectively. | ||||||||||||||||||||||||||||||||||||||||
[3] | The Company's subsidiary, NetSol PK, entered into two different term finance facilities from Askari Bank to finance the construction of a new building. The total aggregate amount of these facilities is Rs. 112,500,000 or approximately $1,054,655(secured by the first charge of Rs. 580 million or approximately $5.44 million over the land, building and equipment of the company). The interest rate is 2.75% above the six-month Karachi Inter Bank Offering Rate. As of the year ended June 30, 2013, the Company has used a total of Rs.87,500,000 or approximately $867,195 of which $371,655 is shown as long term liabilities and the remainder of $495,540 as current maturity. As of September 30, 2013, the company has used a total of Rs.75,000,000, or approximately $703,103, of which $351,551, is shown as long term liabilities and the remainder of $351,552, as current maturity. Interest expense during the three months ended September 30, 2013 and 2012 was $22,123 and $37,202, respectively. |
Note_12_Debt_Details_Notes_pay
Note 12 - Debt (Details) - Notes payable consisted of the following: (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | ||
Note 12 - Debt (Details) - Notes payable consisted of the following: [Line Items] | ' | ' | ||
Current Maturities | ($311,102) | ' | ||
Long-Term Maturities | 354,257 | ' | ||
Notes Payable | 5,077,179 | 4,738,677 | ||
Current Maturities | 3,660,388 | 3,326,465 | ||
Long-Term Maturities | 1,416,791 | 1,412,212 | ||
D & O Insurance [Member] | ' | ' | ||
Note 12 - Debt (Details) - Notes payable consisted of the following: [Line Items] | ' | ' | ||
Notes Payable | 44,411 | [1] | 88,292 | [1] |
Current Maturities | 44,411 | [1] | 88,292 | [1] |
Long-Term Maturities | ' | [1] | ' | [1] |
Long-Term Maturities | ' | [1] | ' | [1] |
Habib Bank Line Of Credit [Member] | ' | ' | ||
Note 12 - Debt (Details) - Notes payable consisted of the following: [Line Items] | ' | ' | ||
Long-Term Maturities | ' | [2] | ' | [2] |
Notes Payable | 2,211,822 | [2] | 1,785,237 | [2] |
Current Maturities | 2,211,822 | [2] | 1,785,237 | [2] |
Long-Term Maturities | ' | [2] | ' | [2] |
Bank Overdraft Facility [Member] | ' | ' | ||
Note 12 - Debt (Details) - Notes payable consisted of the following: [Line Items] | ' | ' | ||
Long-Term Maturities | ' | [3] | ' | [3] |
Notes Payable | 420,231 | [3] | 312,139 | [3] |
Current Maturities | 420,231 | [3] | 312,139 | [3] |
Long-Term Maturities | ' | [3] | ' | [3] |
HSBC Loan [Member] | ' | ' | ||
Note 12 - Debt (Details) - Notes payable consisted of the following: [Line Items] | ' | ' | ||
Long-Term Maturities | 710,983 | [4] | 710,675 | [4] |
Notes Payable | 1,032,253 | [4] | 1,047,014 | [4] |
Current Maturities | 321,270 | [4] | 336,339 | [4] |
Long-Term Maturities | 710,983 | [4] | 710,675 | [4] |
Term Finance Facility [Member] | ' | ' | ||
Note 12 - Debt (Details) - Notes payable consisted of the following: [Line Items] | ' | ' | ||
Long-Term Maturities | 351,551 | [5] | 371,655 | [5] |
Notes Payable | 703,103 | [5] | 867,195 | [5] |
Current Maturities | 351,552 | [5] | 495,540 | [5] |
Long-Term Maturities | 351,551 | [5] | 371,655 | [5] |
Subsidiary Capital Lease [Member] | ' | ' | ||
Note 12 - Debt (Details) - Notes payable consisted of the following: [Line Items] | ' | ' | ||
Notes Payable | 665,359 | [6] | ' | |
Current Maturities | 311,102 | [6] | ' | |
Long-Term Maturities | 354,257 | [6] | ' | |
Subsidiary Capital Leases [Member] | ' | ' | ||
Note 12 - Debt (Details) - Notes payable consisted of the following: [Line Items] | ' | ' | ||
Notes Payable | ' | 638,800 | [6] | |
Current Maturities | ' | 308,918 | [6] | |
Long-Term Maturities | ' | $329,882 | [6] | |
[1] | The Company finances Directors' and Officers' ("D&O") liability insurance as well as Errors and Omissions ("E&O") liability insurance, for which the total balances are renewed on an annual basis and as such are recorded in current maturities. The interest rate on the insurance financing was 0.40% and 0.40% as of September 30, 2013 and June 30, 2013, respectively. Interest paid during the three months ended September 30, 2013 and 2012 was nominal. | |||
[2] | In April 2008, the Company entered into an agreement with Habib American Bank to secure a line of credit to be collateralized by Certificates of Deposit held at the bank. The interest rate on this line of credit is variable and was 1.5% as of September 30, 2013 and June 30, 2013, respectively. In June 2012, the Company's subsidiary, NTNA entered into an agreement with Habib American Bank to secure a line of credit up to $500,000 to be collateralized by Certificates of Deposit of same value held at the bank. The interest rate on this line of credit is variable and was 1.90% as of September 30, 2013 and June 30, 2013, respectively. Interest expense during the three months ended September 30, 2013 and 2012 was $7,296 and $3,772, respectively. | |||
[3] | During the year ended June 30, 2008, the Company's subsidiary, NTE entered into an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to 300,000, or approximately $484,290. The annual interest rate is 4.25% over the bank's sterling base rate, which was 4.75% and 5.20% as of September 30, 2013 and June 30, 2013, respectively. Interest expense during the three months ended September 30, 2013 and 2012 was $22,442 and $18,524, respectively. | |||
[4] | In October 2011, the Company's subsidiary, NTE, entered into a loan agreement with HSBC Bank to finance the acquisition of 51% of controlling interest in Virtual Leasing Services Limited. HSBC Bank guaranteed the loan up to a limit of 1,000,000, or approximately $1,614,300 for a period of 5 years with monthly payments of 18,420, or approximately $29,735. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against debenture comprising of fixed and floating charges over all the assets and undertakings of NTE including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. As of June 30, 2013, the subsidiary has used this facility up to $1,047,015, of which $710,675, was shown as long term and the remaining $336,339, as current maturity. As of September 30, 2013, the subsidiary has used this facility up to $1,032,253, of which $710,983, was shown as long term and the remaining $321,270, as current maturity. Interest expense, for the three months ended September 30, 2013 and 2012, was $18,849, and $21,665, respectively. | |||
[5] | The Company's subsidiary, NetSol PK, entered into two different term finance facilities from Askari Bank to finance the construction of a new building. The total aggregate amount of these facilities is Rs. 112,500,000 or approximately $1,054,655(secured by the first charge of Rs. 580 million or approximately $5.44 million over the land, building and equipment of the company). The interest rate is 2.75% above the six-month Karachi Inter Bank Offering Rate. As of the year ended June 30, 2013, the Company has used a total of Rs.87,500,000 or approximately $867,195 of which $371,655 is shown as long term liabilities and the remainder of $495,540 as current maturity. As of September 30, 2013, the company has used a total of Rs.75,000,000, or approximately $703,103, of which $351,551, is shown as long term liabilities and the remainder of $351,552, as current maturity. Interest expense during the three months ended September 30, 2013 and 2012 was $22,123 and $37,202, respectively. | |||
[6] | The Company leases various fixed assets under capital lease arrangements expiring in various years through 2018. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are depreciated over the lesser of their related lease terms or their estimated useful lives and are secured by the assets themselves. Depreciation of assets under capital leases is included in depreciation expense for the three months ended September 30, 2013 and 2012. |
Note_12_Debt_Details_Summary_o
Note 12 - Debt (Details) - Summary of minimum future lease payments under capital lease: (USD $) | Sep. 30, 2013 |
Minimum Lease Payments | ' |
Due FYE 9/30/14 | $368,052 |
Due FYE 9/30/15 | 247,621 |
Due FYE 9/30/16 | 105,153 |
Due FYE 9/30/17 | 37,957 |
Total Minimum Lease Payments | 758,783 |
Interest Expense relating to future periods | -93,424 |
Present Value of minimum lease payments | 665,359 |
Less: Current portion | -311,102 |
Non-Current portion | $354,257 |
Note_12_Debt_Details_Summary_o1
Note 12 - Debt (Details) - Summary of fixed assets held under capital leases: (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Capital Leased Assets [Line Items] | ' | ' |
Fixed assets under capital leases | $1,210,529 | $1,126,860 |
Less: Accumulated Depreciation | -380,738 | -350,048 |
Net | 829,791 | 776,812 |
Computer Equipment [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Fixed assets under capital leases | 533,813 | 454,002 |
Furniture and Fixtures [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Fixed assets under capital leases | 900 | 951 |
Vehicles [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Fixed assets under capital leases | 675,816 | 671,907 |
Total [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Fixed assets under capital leases | $1,210,529 | $1,126,860 |
Note_13_Other_Payable_and_Comm1
Note 13 - Other Payable and Common Stoce To Be Issued (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jun. 30, 2006 | Sep. 30, 2013 | Jun. 30, 2013 | |
McCue [Member] | NetSol Technologies North America [Member] | NetSol Technologies North America [Member] | |
Note 13 - Other Payable and Common Stoce To Be Issued (Details) [Line Items] | ' | ' | ' |
Business Combination, Consideration Transferred | $7,080,385 | ' | ' |
Payments to Acquire Businesses, Gross | 3,784,635 | ' | ' |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 171,233 | 4,670 | 4,670 |
Business Combination, Consideration Transferred, Liabilities Incurred | ' | $103,226 | $103,226 |
Sale of Stock, Price Per Share (in Dollars per share) | ' | $18.90 | $18.90 |
Note_14_Stockholders_Equity_De
Note 14 - Stockholders' Equity (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Nov. 11, 2011 | |
Note 14 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in Shares) | ' | 250,000 |
Stock Repurchased During Period, Shares (in Shares) | 4,430 | ' |
Treasury Stock, Value, Acquired, Cost Method | $19,417 | ' |
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued (in Shares) | 2,400 | ' |
Share-based Goods and Nonemployee Services Transaction, Stockholders' Equity | 9,210 | ' |
Restricted Stock Units (RSUs) [Member] | Officer [Member] | ' | ' |
Note 14 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 415,425 | ' |
Allocated Share-based Compensation Expense | 213,600 | ' |
Restricted Stock Units (RSUs) [Member] | Director [Member] | ' | ' |
Note 14 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | 18,412 | ' |
Employees [Member] | ' | ' |
Note 14 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 69,420 | ' |
Allocated Share-based Compensation Expense | $69,420 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 6,500 | ' |
Note_15_Incentive_And_NonStatu2
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $7.82 |
Grant A [Member] | Employee Stock Option [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 months |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 47,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | 4 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $8 |
Share-based Compensation (in Dollars) | $106,486 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.05% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '3 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 45.99% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Grant A [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Grant B [Member] | Employee Stock Option [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '1 month |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 5,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | 1 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $6.10 |
Grant E [Member] | Employee Stock Option [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation (in Dollars) | $18,551 |
Grant M [Member] | Employee Stock Option [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '1 month |
Incentive And Non-Statutory Stock Option Plan [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '10 years |
Incentive And Non-Statutory Stock Option Plan [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award Exercisable Percentage | 20.00% |
Equity Incentive Plan 2011 [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '10 years |
Share-Based Compensation Arrangement By Share-Based Payment Award Participant Ownership Percentage | 10.00% |
Percent of Exercise Price Above Fair Market Value Per Share of Common Stock | 110.00% |
Convertible 2011 Note [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 1,250,000 |
Maximum [Member] | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $100,000 |
Note_15_Incentive_And_NonStatu3
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Common stock purchase options and warrants consisted of the following: (USD $) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Jun. 30, 2013 | |
Common stock purchase options and warrants consisted of the following: [Abstract] | ' | ' |
# of shares | 302,462 | 311,462 |
Weighted Average Exericse Price (in Dollars per share) | $15.14 | $15.65 |
Weighted Average Remaining Contractual Life (in years) | '3 years 40 days | '3 years 109 days |
Aggregated Intrinsic Value (in Dollars) | $517,621 | ' |
# of shares | 163,124 | 163,124 |
Weighted Average Exericse Price (in Dollars per share) | $7.29 | $7.29 |
Weighted Average Remaining Contractual Life (in years) | '2 years 343 days | '3 years 160 days |
Aggregated Intrinsic Value (in Dollars) | $446,625 | ' |
Granted | 52,500 | ' |
Granted (in Dollars per share) | $7.82 | ' |
Exercised | -52,500 | ' |
Exercised (in Dollars per share) | $7.82 | ' |
Expired / Cancelled | -9,000 | ' |
Expired / Cancelled (in Dollars per share) | $32.70 | ' |
Note_15_Incentive_And_NonStatu4
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Average life remaining on the options and warrants: (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Average life remaining on the options and warrants: [Line Items] | ' | ' |
Number Outstanding and Exercisable (in Shares) | 302,462 | ' |
Weighted Average Remaining Contractual Life | '3 years 40 days | ' |
Weighted Ave Exericse Price | $15.14 | ' |
Number Outstanding and Exercisable (in Shares) | 163,124 | ' |
Weighted Average Remaining Contractual Life | '2 years 343 days | '3 years 160 days |
Weighted Ave Exericse Price | $7.29 | $7.29 |
Price Range $.10 - $9.90 [Member] | ' | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Average life remaining on the options and warrants: [Line Items] | ' | ' |
Exercise Price - Lower | $0.10 | ' |
Exercise Price - Upper | $9.90 | ' |
Number Outstanding and Exercisable (in Shares) | 183,462 | ' |
Weighted Average Remaining Contractual Life | '3 years 259 days | ' |
Weighted Ave Exericse Price | $7.21 | ' |
Price Range $10.00 - $19.90 [Member] | ' | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Average life remaining on the options and warrants: [Line Items] | ' | ' |
Exercise Price - Lower | $10 | ' |
Exercise Price - Upper | $19.90 | ' |
Number Outstanding and Exercisable (in Shares) | 14,000 | ' |
Weighted Average Remaining Contractual Life | '2 years 127 days | ' |
Weighted Ave Exericse Price | $18.18 | ' |
Price Range $20.00 - $29.90 [Member] | ' | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Average life remaining on the options and warrants: [Line Items] | ' | ' |
Exercise Price - Lower | $20 | ' |
Exercise Price - Upper | $29.90 | ' |
Number Outstanding and Exercisable (in Shares) | 91,000 | ' |
Weighted Average Remaining Contractual Life | '2 years 164 days | ' |
Weighted Ave Exericse Price | $25.31 | ' |
Price Range $30.00 - $50.00 [Member] | ' | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Average life remaining on the options and warrants: [Line Items] | ' | ' |
Exercise Price - Lower | $30 | ' |
Exercise Price - Upper | $50 | ' |
Number Outstanding and Exercisable (in Shares) | 14,000 | ' |
Weighted Average Remaining Contractual Life | '146 days | ' |
Weighted Ave Exericse Price | $50 | ' |
Price Range $3.10 - $7.73 [Member] | ' | ' |
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Average life remaining on the options and warrants: [Line Items] | ' | ' |
Exercise Price - Lower | $3.10 | ' |
Exercise Price - Upper | $7.73 | ' |
Number Outstanding and Exercisable (in Shares) | 163,124 | ' |
Weighted Average Remaining Contractual Life | '2 years 343 days | ' |
Weighted Ave Exericse Price | $7.29 | ' |
Note_15_Incentive_And_NonStatu5
Note 15 - Incentive And Non-Statutory Stock Option Plan (Details) - Summary of stock grants awarded as compensation: (USD $) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Jun. 30, 2013 | |
Summary of stock grants awarded as compensation: [Abstract] | ' | ' |
# Of Shares | 65,175 | ' |
Weighted Average Grant Date Fair Value (in Dollars per share) | $10.68 | ' |
# Of Shares | 86,899 | 3,750 |
Weighted Average Grant Date Fair Value (in Dollars per share) | $10.68 | $5.48 |
# Of Shares | -21,724 | -3,750 |
Weighted Average Grant Date Fair Value (in Dollars per share) | $10.68 | $5.48 |
Note_16_Segment_Information_An2
Note 16 - Segment Information And Geographic Areas (Details) | 3 Months Ended |
Sep. 30, 2013 | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 3 |
Note_16_Segment_Information_An3
Note 16 - Segment Information And Geographic Areas (Details) - Summary of global regions or segments for its products and services (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues from unaffiliated customers: | ' | ' |
Revenues from unaffiliated customers: | $9,057,316 | $11,071,900 |
Operating income (loss): | ' | ' |
Operating income (loss): | -1,522,952 | 1,501,946 |
Net income (loss) after taxes and before non-controlling interest: | ' | ' |
Net income (loss) after taxes and before minority interest: | -462,948 | 1,261,404 |
Identifiable assets: | ' | ' |
Identifiable assets: | -451,817 | 1,275,400 |
Interest expense: | ' | ' |
Interest expense | 69,217 | 292,389 |
Income tax expense: | ' | ' |
Income tax expense | 11,131 | 13,996 |
North America [Member] | ' | ' |
Revenues from unaffiliated customers: | ' | ' |
Revenues from unaffiliated customers: | 1,218,012 | 1,713,190 |
Operating income (loss): | ' | ' |
Operating income (loss): | -39,517 | -233,685 |
Net income (loss) after taxes and before non-controlling interest: | ' | ' |
Net income (loss) after taxes and before minority interest: | -39,740 | -233,936 |
Identifiable assets: | ' | ' |
Identifiable assets: | 2,867,929 | 3,242,885 |
Depreciation and amortization: | ' | ' |
Depreciation and amortization: | 159,345 | 159,901 |
Capital expenditures: | ' | ' |
Capital expenditures: | 7,987 | 36,646 |
Interest expense: | ' | ' |
Interest expense | 299 | 564 |
Europe [Member] | ' | ' |
Revenues from unaffiliated customers: | ' | ' |
Revenues from unaffiliated customers: | 1,208,682 | 1,506,001 |
Operating income (loss): | ' | ' |
Operating income (loss): | -427,564 | -23,805 |
Net income (loss) after taxes and before non-controlling interest: | ' | ' |
Net income (loss) after taxes and before minority interest: | -553,718 | -34,970 |
Identifiable assets: | ' | ' |
Identifiable assets: | 4,666,802 | 5,989,190 |
Depreciation and amortization: | ' | ' |
Depreciation and amortization: | 220,726 | 226,983 |
Capital expenditures: | ' | ' |
Capital expenditures: | 77,580 | 13,370 |
Interest expense: | ' | ' |
Interest expense | 44,347 | 40,189 |
Income tax expense: | ' | ' |
Income tax expense | ' | -29,024 |
Asia Pacific [Member] | ' | ' |
Revenues from unaffiliated customers: | ' | ' |
Revenues from unaffiliated customers: | 6,630,622 | 7,852,709 |
Operating income (loss): | ' | ' |
Operating income (loss): | 66,440 | 2,660,161 |
Net income (loss) after taxes and before non-controlling interest: | ' | ' |
Net income (loss) after taxes and before minority interest: | 1,280,418 | 3,034,129 |
Identifiable assets: | ' | ' |
Identifiable assets: | 80,305,880 | 73,165,459 |
Depreciation and amortization: | ' | ' |
Depreciation and amortization: | 1,058,563 | 879,379 |
Capital expenditures: | ' | ' |
Capital expenditures: | 2,603,402 | 1,406,398 |
Interest expense: | ' | ' |
Interest expense | 16,688 | 22,408 |
Income tax expense: | ' | ' |
Income tax expense | 11,131 | 43,020 |
Consolidated [Member] | ' | ' |
Revenues from unaffiliated customers: | ' | ' |
Revenues from unaffiliated customers: | 9,057,316 | 11,071,900 |
Operating income (loss): | ' | ' |
Operating income (loss): | -1,522,952 | 1,501,946 |
Net income (loss) after taxes and before non-controlling interest: | ' | ' |
Net income (loss) after taxes and before minority interest: | -462,948 | 1,261,404 |
Identifiable assets: | ' | ' |
Identifiable assets: | 102,347,114 | 96,560,928 |
Depreciation and amortization: | ' | ' |
Depreciation and amortization: | 1,473,286 | 1,300,152 |
Capital expenditures: | ' | ' |
Capital expenditures: | 2,691,066 | 1,457,134 |
Interest expense: | ' | ' |
Interest expense | 69,217 | 292,389 |
Income tax expense: | ' | ' |
Income tax expense | 11,131 | 13,996 |
Corporate Headquarters [Member] | ' | ' |
Operating income (loss): | ' | ' |
Operating income (loss): | -1,122,311 | -900,725 |
Net income (loss) after taxes and before non-controlling interest: | ' | ' |
Net income (loss) after taxes and before minority interest: | -1,149,908 | -1,503,819 |
Identifiable assets: | ' | ' |
Identifiable assets: | 14,506,503 | 14,163,394 |
Depreciation and amortization: | ' | ' |
Depreciation and amortization: | 34,652 | 33,889 |
Capital expenditures: | ' | ' |
Capital expenditures: | 2,097 | 720 |
Interest expense: | ' | ' |
Interest expense | $7,883 | $229,228 |
Note_17_NonControlling_Interes2
Note 17 - Non-Controlling Interest In Subsidiary (Details) (USD $) | 3 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | |
NetSol PK [Member] | NetSol PK [Member] | NetSol Innovation [Member] | NetSol Innovation [Member] | VLS [Member] | VLS [Member] | Vroozi [Member] | Vroozi [Member] | |||
Note 17 - Non-Controlling Interest In Subsidiary (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Parent | ($1,097,115) | $929,125 | $1,286,605 | $606,090 | $501,344 | $256,535 | ($90,879) | ($64,620) | $348,648 | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 634,167 | 332,279 | 460,219 | 239,284 | 250,171 | 128,011 | 44,531 | 31,664 | 31,692 | ' |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | ' | ' | 1,167,688 | 237,743 | 70,418 | 12,356 | 17,572 | 17,543 | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | 1,174,000 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ($211,111) | $176,280 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Services (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 |
Note_17_NonControlling_Interes3
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-controlling interests in subsidiaries: (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-controlling interests in subsidiaries: [Line Items] | ' | ' |
Non-Controlling Interest | $16,861,176 | $17,271,263 |
NetSol PK [Member] | ' | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-controlling interests in subsidiaries: [Line Items] | ' | ' |
Non Controlling Interest % | 35.77% | 34.81% |
Non-Controlling Interest | 15,062,396 | 15,593,585 |
NetSol Innovation [Member] | ' | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-controlling interests in subsidiaries: [Line Items] | ' | ' |
Non Controlling Interest % | 49.90% | 49.90% |
Non-Controlling Interest | 1,341,402 | 1,161,649 |
VLS [Member] | ' | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-controlling interests in subsidiaries: [Line Items] | ' | ' |
Non Controlling Interest % | 49.00% | 49.00% |
Non-Controlling Interest | 454,162 | 481,121 |
Vroozi [Member] | ' | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-controlling interests in subsidiaries: [Line Items] | ' | ' |
Non Controlling Interest % | 9.09% | 9.09% |
Non-Controlling Interest | $3,216 | $34,908 |